Module 1: PLANNING

Management definition: The process of getting things done effectively and

efficiently, with and through people.

Effectiveness: Doing the right things

Efficiency: Doing things right

4 management functions:

Planning – Defining goals, establishing strategies to achieve

goals, and developing plans to integrate and coordinate

activities

• Organizing – Arranging and structuring work to accomplish

organizational goals.

• Leading – Working with and through people to accomplish

goals.

• Controlling – Monitoring, comparing, and correcting work.

Managers need some skills:

- conceptual skills (analyse and diagnose), - Interpersonal skills, - (working well with other), -
technical skills (possessing expert job knowledge), - political skills (political adeptness)

Définition d’une organisation: Organization – A deliberate arrangement of people assembled to

accomplish some specific purpose (that individuals independently could not accomplish alone).

Common Characteristics of Organizations:

– Have a distinct purpose (goal)

– Are composed of people

– Have a deliberate structure

Different classification of managers:

First-line Managers - Individuals who manage the work of non-managerial employees.

Middle Managers - Individuals who manage the work of first-line managers.

Top Managers - Individuals who are responsible for making organization-wide decisions and
establishing plans and goals that affect the entire organization.

Planning: Deciding on the organization’s objectives or goals and getting the job done by establishing
an overall strategy for achieving those goals and developing a comprehensive hierarchy of plans to
integrate and coordinate activities. It is a primary management function?

Does it pay to plan? This the profit:

  Higher profits
 Higher return on asset
 Improved quality of planning
 Appropriate implementation

Strategic management: impact:

• It has a positive impact on organizational

performance.

• It prepares managers to cope with changing

situations.

• It guides managers to examine relevant factors in

planning future action.

5 steps:

Identify the organization’s current missions, goals, strategies. Analyze SWOT external and internal.
Formulate strategies, implemented strategies, evaluate results.

Competitive advantage: What sets an organization apart; its distinctive edge that comes from its
core competencies and resources.

Uber CEO Khosrowshahi on profits, autonomous car:

We will be profitable before 2022. Take data of driver to partner cities to evirate problems of
circulation to be better. Create a win-win comfort. Autonomous, electric, and shared is the future of
the car industry. Test in the beginning 5% and 10… Every day every minute the computer of the
autonomous car learns and be better. A child born today don’t have to learn how to drive. Flying car
is a real solution to traffic issues. Global scope of uber is a fundamental strength. First thing that I do
is to go out and reset the values of Uber.
 MODULE 2: Organizing
Organizing: determining what needs to be done, how it will be done, and who is to do it. Organizing
is the management function that creates the organization’s structure.

Organizational structure:

- Work specialization  is the division of work activities into separate job tasks. Also called division
of labor. Work specialization has a real like with productivity.

- Departmentalization  refers to how jobs are grouped together. Types of departmentalization:

functional (engineering, accounting…), product (women’s footwear, men’s footwear); customer
(retail, wholesale, government); geographic (north, south, east); process (testing, payment…)

- Authority and responsibility  authority refers to the rights inherent in a managerial position to
give orders and expect the orders to be obeyed. Responsibility refers to an obligation to perform
assigned duties.

- Span of control refers to the number of employees a manager can efficiently and effectively
supervise.

- Centralization vs decentralization: Centralization is the decision making takes place at upper levels
of the organization. Decentralization lower-level managers provide input or actually make decisions.

- Formalization: How standardized an organization’s jobs are and the extent to which employee
behavior is guided by rules and procedures.

Unity of command: A structure in which each employee reports to only one manager.
Authority: a right whose legitimacy is based on an authority figure’s position in the organization; it
goes with the job
Power: an individual’s ability to influence decisions
Organic structure: Less than 2,000 employees. Dynamic environment.
Mechanistic structure: More than 2,000 employees makes forces organizations to become more
mechanistic. Stable environment.
Team structure: A structure in which the entire organization is made up of work teams that do the
organization’s work.
Project structure: A structure in which employees continuously work on projects.
Boundaryless organizations: An organization whose design is not imposed by a predefined structure.
Network Organization – an organization that uses its own employees to do some work activities and
networks of outside suppliers to provide other needed product components or work processes.
Learning Organization – an organization that has developed the capacity to continuously learn,
adapt, and change.
Toyota production System (TPS): 5 values: Genchi Genbutsu, Kaizen, Challenge, Teamwork and
respect. Creation TPS by Taiichi Ohno inspiration supermarket (lean production). Tps: just in time
(production by Takt Times). TPS is all about creating efficiency (reduce and eliminate all MUDA to
maximize efficiency). 2nd pillard is Jidoka: a problem occurs Toyota find a solution and going to the
source to solving it an assure a production quality. Kaizen: continuous improvement (all employees
give suggestion and can talk to create a teamwork, more than 3000 proposal in a year: the tinking
people system). Quality, cost and delivery. Benefit for customer, product and team members.
 MODULE 3: Leading
Leading  Is the management function that deals with influencing individual and team behavior:
motivating, leading, and any other actions involved in dealing with people.

Organizational behavior refers to the study of the actions of people at work. Is like an iceberg.

Attitudes: an attitude is made up of three components: cognition, affect and behavior.

- Cognitive component: that part of an attitude that’s made up of the beliefs, opinions, knowledge,
or information held by a person.

- Affective component: that part of an attitude that’s the emotional or feeling part.

- Behavioral component: that part of an attitude that refers to an intention to behave in a certain
way toward someone or something.

Perception: a process by which we give meaning to our environment by organizing and interpreting
sensory impressions (some situation, perception, context can change the perception).

Attribution theory: how the actions of individuals are perceived by other depends on what meaning
(causation) we attribute to a given behavior (depends on distinctiveness, consensus, and
consistency).

About the attribution theory they have fundamental attribution error: the tendency to
underestimate the influence of external factors and to overestimate the influence of internal or
personal factors. And, self-serving bias: the tendency of individuals to attribute their successes to
internal factors while blaming personal failures on external factors.

Employees react to perception, not to reality. And the potential for perceptual distortion exists.

Leader: someone who can influence others and who has managerial authority.

Leadership: what leaders do; the process of influencing a group to achieve goals.

Leadership exchange theory: a leadership theory that says leaders create in-groups and out-groups
and those in the in-group will have higher performance ratings, less turnover, and greater job
satisfaction.

Transactional Leaders: leaders who lead primarily by using social exchanges (or transactions).

Transformational leaders: leaders who stimulate and inspire (transform) followers to achieve
extraordinary outcomes.

They have also charismatic leader (Jeff Bezos), charismatic behavior and leaders can’t be learn: is an
enthusiastic, self-confident leader whose personality and actions influence people to behave in
certain ways, and visionary leaders (create a creative vision of the future): the ability to create and
articulate a realistic, credible, and attractive vision of the future that improves upon the present
situation.

The role of team leader: managing the team’s external boundary and facilitating the team process.

First leadership issue: Managing power: 5 types of power:

- legitimate power: the power a leader has because of his or her position.

- coercive power: the power a leader must punish or control.

- reward power: the power to give positive benefits or rewards.

- expert power: the influence a leader can exert because of his or her expertise, skills, or knowledge.

- referent power: the power of a leader that arises because of a person’s desirable resources or
admired personal traits.

Developing trust (second leadership issue) with:

- Credibility: the degree to which followers perceive someone as honest, competent, and able to
inspire.

- Trust: the belief in the integrity, character, and ability of a leader.

5 dimensions of the concept of trust:

- integrity: honesty and truthfulness (the most critical)

- competence: technical and interpersonal knowledge and skills

- consistency: reliability, predictability, and good judgment in handling situations

- loyalty: willingness to protect a person, physically and emotionally

- openness: willingness to share ideas and information freely

Today managers are increasingly leading by not leading, that is, by empowering their employees.

Empowerment: increasing the decision-making discretion of workers such that teams can make key
operating decisions in developing budgets, scheduling workloads, controlling inventories, and solving
quality problems.

Another leadership issue is leading across cultures (cross-cultural leadership) because effective
leaders adjust their style to the situation. National culture is certainly an important situational
variable in determining which leadership style will be most effective.

The last leadership issue is the leader training is more likely to be successful with individuals who are
high self-monitors than those who are low self-monitors.

Leadership is not always the solution and may not always be important (they can have substitute and
it depends on the situation).

Simon Sinek How great leaders inspire action: Golden circle: why (little circle), how (medium), what
(big). This explain how some leaders inspire. The inspire organisation make the inverse to the
majority, community by the why to the what. The goal is not to do business whit everybody who
needs what you have, the goal is to do business with people who believe what you believe. And is the
same for hiring people, hire for the good reason, hire people who believe that you believe. 2.5%:
innovator, 13.5%: early makers, 24%: early majority, 34%: late majority, 16%: laggers. The early
majority don’t try something before the early makers or innovator try. Example failure TVO. Example
conference success Doctor King. It’s those who start with why who have the ability to inspire those
around them or find other who inspire them.
 MODULE 4: Controlling
Controlling: monitoring activities to ensure that they are accomplished as planned. Is the process of
monitoring, comparing, and correcting work performance.

The purpose of control: to ensure that activities are completed in ways that lead to the
accomplishment of organizational goals.

Controlling is important for:

- Planning: controls let managers know whether their goals and plans are on target and what
future actions to take

- Empowering employees: control systems provide managers with information and feedback
on employee performance.

- Protecting the workplace: controls enhance physical security and help minimize workplace
disruptions.

Performance: the end result of an activity.

Organizational performance: the accumulated results of all the organization’s work activities.

We can measure organizational performance by productivity: the amount of goods or services

produced divided by the inputs needed to generate that output.

The organizational effectiveness can also help it: a measure of how appropriate organizational goals
are and how well those goals are being met.

The control process: a three-step process of measuring actual performance, comparing actual
performance against a standard, and taking managerial action to correct deviations or inadequate
standards.

Step 1 of controlling process: measuring actual performance:

How we measure: personal observations, statistics, reports, oral reports, and written reports.

Step 2: comparing actual performance against the standard: we have to determine the
degree of variation between actual performance and the standard (acceptable range of variation).

Step 3: taking managerial action: 2 possibilities:

- immediate corrective action: In order to get performance back on track.

- basic corrective action: that looks at how and why performance deviated before correcting
the source of deviation.

Managers has to revise the standards but be cautious about revising a standard downward.

Types of control:

Feedforward control: control that takes place before an activity begins.

Concurrent control: control that takes place while a work activity is in progress.

Feedback control: control that takes place after a work activity is done.
Budgets are used for both planning and controlling.

Management information system (MIS): a system used to provide management with needed
information on a regular basis.

Data: an unorganized collection of raw, unanalyzed facts (ex: an unsorted list of customer names).

Information: data that has been analyzed and organized such that it has value and relevance to
managers.

Controlling for employee performance by disciplinary actions (to enforce the organization’s work
standards and regulations) and delivering effective performance feedback (so that the employees
know where they stand in terms of their work.

Balance scorecard: a performance measurement tool that examines more than just the financial
perspective (financial, customer, internal processes, people/innovation/ growth assets).

Benchmarking: the search for the best practices among competitors or non-competitors that lead to
their superior performance.

Benchmark: the standard of excellence to measure and compare against.

Adjusting controls for cross-cultural differences and global turmoil.

Service profit chain: the service sequence from employees to customers to profit.

Corporate governance: the system used to govern a corporation so that the interests of corporate
owners are protected.

Ricardo Semler 2014: Every Monday and Thursday I’m going to use my terminal days. Create a
company with boarding school aspects. We don’t want anyone to be a leader in a company if the
person doesn’t approved by their future subordinates.We need thing in school that understand
everything we don’t know (how we are here, death…).