PERSONAL GOALS AND ASPIRATIONS OF TOP MANAGEMENT

PRESENTED BY VILAY GUPTA

What is Management?
All managers work in organizations Organizations collections of people who work together and coordinate their actions to achieve a wide variety of goals

Managers
Managers
The people responsible for supervising the use of an organizations resources to meet its goals

What is Management?

The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently

What is Management?
Resources include people, skills, know-how and experience, machinery, raw materials, computers and IT, patents, financial capital, and loyal customers and employees

Organizational Performance

A measure of how efficiently and effectively managers use available resources to satisfy customers and achieve organizational goals

Managerial Tasks
Managers at all levels in all organizations perform each of the four essential managerial tasks of planning, organizing, leading, and controlling

Four Functions of Management

Planning

Process of identifying and selecting appropriate organizational goals and courses of action

Steps in the Planning Process

Deciding which goals the organization will pursue Deciding what courses of action to adopt to attain those goals Deciding how to allocate organizational resources

Planning
Complex, difficult activity Strategy to adopt is not always immediately clear Done under uncertainty

Organizing
Task managers perform to create a structure of working relationships that allow organizational members to interact and cooperate to achieve organizational goals

Organizing
Involves grouping people into departments according to the kinds of job-specific tasks they perform Managers lay out lines of authority and responsibility Decide how to coordinate organizational resources

Organizational Structure

A formal system of task and reporting relationships that coordinates and motivates members so that they work together to achieve organizational goals

Leading

Articulating a clear organizational vision for its members to accomplish, and energize and enable employees so that everyone understands the part they play in achieving organizational goals

Leading
Leadership involves using power, personality, and influence, persuasion, and communication skills Outcome of leadership is highly motivated and committed workforce

Controlling
Task of managers is to evaluate how well an organization has achieved its goals and to take any corrective actions needed to maintain or improve performance
The outcome of the control process is the ability to measure performance accurately and regulate organizational efficiency and effectiveness

Levels of Management

Levels of Management
First line managers - Responsible for daily
supervision of the non-managerial employees who perform many of the specific activities necessary to produce goods and services

Middle managers - Supervise first-line

managers. Responsible for finding the best way to organize human and other resources to achieve organizational goals

Levels of Management
Top managers
Responsible for the performance of all departments and have cross-departmental responsibility. Establish organizational goals and monitor middle managers Decide how different departments should interact Ultimately responsible for the success or failure of an organization

Levels of Management
Chief executive officer (CEO) is companys most senior and important manager Central concern is creation of a smoothly functioning top-management team
CEO, COO, Department heads

Relative Amount of Time That Managers Spend on the Four Managerial Functions

Managerial Skills
Conceptual skills
The ability to analyze and diagnose a situation and distinguish between cause and effect.

Human skills
The ability to understand, alter, lead, and control the behavior of other individuals and groups.

Technical skills
Job-specific skills required to perform a particular type of work or occupation at a high level.

Skill Types Needed

RESPONSIBILITIES OF TOP MANAGEMENT

1 - FULFILLS KEY ROLES
INTERPERSONAL ROLES
FIGUREHEAD LEADER :LIAISON

INFORMATIONAL ROLES
MONITOR DISSEMINATOR SPOKESPERSON

DECISIONAL ROLES
INNOVATOR / ENTREPRENEUR (PLANNER) DISTURBANCE HANDLER (CRISIS MANAGER) RESOURCE ALLOCATOR (SLICING-THE-PIE) NEGOTIATOR (BARGAINER)

RESPONSIBILITIES OF TOP MANAGEMENT

2 PROVIDES CORPORATE LEADERSHIP
ARTICULATES A TRANSCENDENT GOAL FOR THE FIRM
PROVIDES A VISION OF THE FUTURE SEES THE FIRM NOT AS IT ISBUT AS IT CAN BECOME

COMMUNICATES HIGH PERFORMANCE STANDARDS

SHOWS CONFIDENCE IN SUBORDINATES PROVIDES GOALS, AUTONOMY, MENTORING

PRESENTS A ROLE FOR OTHERS TO INDENTIFY WITH

SETS AN EXAMPLE IN BEHAVIOR AND DRESS COMMUNICATES VALUES CLEARLY IN WORDS & DEEDS

RESPONSIBILITIES OF TOP MANAGEMENT

3 MANAGES STRATEGIC PLANNING
INITIATES/MANAGES THE STRATEGIC PLANNING PROCESS

SEEKS INFORMATION
LONG-RANGE PLANNING STAFF DIVISIONAL (SBU) MANAGERS FUNCTIONAL AND DEPARTMENTAL MANAGERS TOP MANAGEMENT TEAM

APPROACHES TO STRATEGY FORMULATION

THE MASTER STRATEGIST CEO personally shapes the plan Depends on skills and vision of one person DELEGATE IT TO OTHERS Uses a planning staff or task forces Lack of top-down direction and leadership COLLABORATIVE APPROACH Involve key people --- seek group consensus Can political games and compromises be avoided? THE CHAMPION APPROACH Encourage subordinate managers to develop their own strategies Will a coherent, unified strategy emerge?

USING A STRATEGIC PLANNING STAFF

THE PLANNING STAFF SHOULD: Help gather and organize information Analyze industry and competitive conditions Administer annual reviews of strategy Distribute information on the firms strategic performance

THE PLANNING STAFF SHOULD NOT: Prepare strategic plans for someone else to implement Usurp the responsibilities of operating managers Make strategic decisions POTENTIAL PROBLEMS: A planning staff cannot be held accountable for results because they have no authority to implement. Non-acceptance by managers who do not feel ownership in the strategic plan

ROLE OF THE BOARD IN STRATEGIC MANAGEMENT

DETERMINE AND APPROVE THE ORGANIZATIONS MISSION AND STRATEGIC OPTIONS EVALUATE AND INFLUENCE KEY MANAGEMENT DECISIONS AND ACTIONS

MONITOR AND EVALUATE THE ENVIRONMENT SURROUNDING THE ORGANIZATION

MONITOR AND EVALUATE THE OVERALL PERFORMANCE OF THE ORGANIZATION

BOARDS DIRECT THE AFFAIRS OF THE FIRM, BUT DO NOT MANAGE THEM

BOARD INVOLVEMENT IN STRATEGIC MANAGEMENT

PHANTOM BOARD May not even meet! Never knows what to do. No involvement. RUBBER-STAMP BOARD (Ceremonial 8 %) Permits officers to make all decisions Votes the officers recommendations No board agenda MINIMAL REVIEW BOARD (Passive 21 %) Reviews issues brought to its attention by the officers Members are notified what is on the agenda.but often come unprepared NOMINAL PARTICIPATION BOARD (Somewhat Active 45 %) Reviews performance of selected key decisions independently Occasionally questions officers actions and strategies Informal groups form within the board

BOARD INVOLVEMENT IN STRATEGIC MANAGEMENT

ACTIVE PARTICIPATION BOARD (Very Active 21 %) Has active board sub-committees Conducts its own audits Gathers information about the organization independently Questions officers regularly on a wide variety of topics Makes final strategic decisions CATALYST BOARD (Critical Contributor 5 %) Takes a leading role in establishing and modifying the mission, objectives, and strategies of the organization Has very active strategic planning sub-committees Officers do not propose or formulate strategiesbut are expected to implement them for the board

STRATEGIC MANAGEMENT STYLES

----------------------------------------------------HIGH

ENTREPRENEURAL INVOLVEMENT BY TOP MGMT CHAOTIC

LOW --

PARTNERSHIP

MARIONETTE

----------------------------------------------------

LOW

HIGH

INVOLVEMENT BY BOARD OF DIRECTORS

BOARD COMMITTEES

EXECUTIVE FINANCE AUDIT NOMINATING COMPENSATION STRATEGIC PLANNING INVESTMENT ETHICS AND SOCIAL RESPONSIBILITY

BOARDS

BOARD MEMBERSHIP Inside Members Outside Members

Affiliated Non-Management Independent

Co-determination Interlocking Directorates BOARD SIZE Private (8 members, meets 4 times/year) Public (13 members, meets 6-7 times/year) NOMINATION CEO Board Committee ELECTIONS Simultaneous vs. Staggered Terms Straight vs. Cumulative Voting

A GOOD DIRECTOR.
1999 KORN/FERRY BOARD SURVEY 95 % 67 % 57 % 41 % 39 % 33 % 31 % 31 % 18 % Is willing to challenge management when necessary Has special expertise important to the company Is available outside meetings to advise management Has expertise on global business issues Understands the firms key technologies and processes Brings external contacts that are potentially valuable to the firm Has detailed knowledge of the firms industry Has high visibility in his or her field Is accomplished at representing the firm to stakeholders

TRENDS FOR FUTURE DIRECTORS

1BOARDS HELD TO HIGHER STANDARDS OF CONDUCT Society will pay more attention---lawsuits for negligence 2DIRECTORS WILL FEEL RESPONSIBILITY FOR/TO THE CORPORATION AS A WHOLE Not just to the stockholders 3GREATER ACTIVITY IN STRATEGIC PLANNING 4MORE TRAINING AND ORIENTATION OF BOARD MEMBERS TO THEIR DUTIES Certification of directors for their board responsibilities 5MORE USE OF NOMINATING COMMITTEES TO SELECT CANDIDATES FOR DIRECTOR POSITIONS 6DIRECTORS WILL BE MORE INDEPENDENT OF THE CEO

THANK YOU