people WEEKS 8 & 9 MANAGEMENT & LEADERSHIP ASSIGNMENT DUE DATE Leadership & Management – Leadership Consultant Analysis Week 9 ORGANIZATIONAL CHART General Manager Food & Beverage Director Operations Manager Sales Manager Financial Director Logistics Manager Catering Sales Associate Cashier Accountant In-Store Sales Associate Restaurant Manager Purchase Associate Kitchen Manager Executive Chef Cashier Food Quality Control Maintenance Associate Assistant Manager Junior Accountant Assistant Chef Head of Food Service Food Service Staff STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. Ingredients Buyer 1 HUMAN RESOURCES: Hello, Head of HR here, providing you a bit more insight into our process. I’ve included a flow chart on the high level process (see below) but also wanted to provide a more detailed explanation. Our HR cycle begins with our recruiting department. We have campus recruiters who attend career fairs and develop relationships from select universities around the country. We also do a substantial amount of recruiting through LinkedIn, targeting professionals further along in their career with the backgrounds we look for. We then conduct phone screens with qualified candidates, followed by rigorous in-person interviews. We hire approximately 10% of the candidates we interview in-person. Once an employee comes on-board, our performance management system begins. Employees are required to write out goals and objectives after their first 30 days on the job. They have regular ongoing conversations with their direct managers, as well as with assigned mentors, regarding their performance. On or near their anniversary date, we conduct a formal performance review. In the review, we evaluate how the employee performed relative to the goals they mapped out for themselves, and relative to our expectations. Based on the result of the performance review, we make compensation adjustments and promotion decisions. Finally, when an employee does exit their role, by transitioning to another role within the company or by terminating their employment, we conduct formal exit interviews. Hope this helps. Look forward to your feedback on how we can improve. RECRUIT HIRE MANAG E EXIT C O MPENSATI O N A DJ USTMENT EVALUATE STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 2 LEADERSHIP STYLE: Hi, I’m writing this email in response to your request for an overview of my leadership style. First, I think it’s important to tell you how I got to my role as the General Manager. I started at the bottom and I’ve worked my way up through the ranks by being the top performer in every role I’ve had. I’ve worked hard to get to where I am today, nothing has been given to me, and I believe everyone reporting to me should have a similar mindset and work ethic. I’m looking for people who can keep up with my level of performance; that’s what we need to achieve our organizational goals. I demand a lot from people. Some might say I’m difficult to please, but I believe in continually pushing people to achieve results they previously didn’t think possible. To do that, my employees must move fast and execute on the directives I give them. If they can’t, then I need to find others who can keep up. That may sound harsh, but I view maintaining a strong performance-based culture as my responsibility as a leader. Please feel free to contact me with any questions. STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 3 Mission and Vision One of the most important things to understand in business is why you are doing what you’re doing. If you have a purpose you believe in, it’s easier to get up in the morning and get right to work. Mission and vision statements get right to the heart of purpose. The mission explains what the business does every day. It’s a short, clear, powerful statement of a business’s short-term goals. It should tell people what the business does, who it does it for, and how it does it. A mission tells an organization’s leaders, employees, customers, and the world what this business hopes to do. On the other hand, the vision talks about the business’s broader aspirations and deeper purpose. The vision describes the optimum future of what the business wants to achieve over time. The vision might share a sense of what the world looks like with the business in it as its most successful version of itself. It can serve as the business’s “North Star”—the guiding motivation for every employee. Mission and vision are related but distinct. Some say the mission describes the what, the who, and the how of the business, and the vision tells us the why. Who Are the Leaders? In any business, there might be just one leader, a handful at the top, or many leaders throughout the organization. It all depends on the size of the business, how it’s organized, and what it’s trying to do. We’ve mentioned that some people are leaders because they have formally defined roles in the organization, and others are leaders because of how they approach their work – no matter where they are found. These are a few of the key roles found in most larger organizations that define the areas where leaders are needed based on the structure of the business: • Stakeholders are people who have a vested interest in the business, that is, anyone who is affected by it in some way. This is a broad group of people, and could include community members, customers, policy makers, investors and more. Shareholders are formal owners, such as people who own stock in the business, if the business is a public company. • The board of directors oversees the management of the business to safeguard the interests of the shareholders and stakeholders. Often, this means they are working to make sure the business is profitable so that shareholders make money on their investment. • C-level executives are the top level of management in the business. They design the business strategy and work to protect and deliver on the mission and vision. The Chief Executive Officer, or CEO, is the head of the business. Companies often have other C-level executives like a Chief Financial Officer (CFO), Chief Operations Officer (COO), or Chief Marketing Officer (CMO). Are you starting to see why we call this group of individuals C-level executives? • Mid-level management includes department or business unit leaders. They ensure that the strategy, mission and vision are carried out at the business unit and department level. • Junior management includes supervisors, managers and team leaders. These are the people who manage groups of general employees tasked with completing the basic tasks of the organization. • General employees do the basic tasks of the business so that the company can operate. Management vs, Leadership As you’ve just seen, there are lots of formal leaders and managers in an organization. There can also be lots of leaders who don’t have a clearly defined leadership role. And a business needs both. Managers and leaders are not necessarily the same people. And while leadership and management are related to each other, they have some differences. Leaders Leaders motivate others towards key goals and desired outcomes and can be found anywhere in an organization. Everyone knows the CEO is a leader. But it’s just as likely that a leader is right there on the manufacturing line, motivating the people around him, reminding them of their greater purpose, and helping everyone work more efficiently so that the business makes strides toward its goals. We all know a person who is an entry level employee, but who motivates others, rallies the team, steps in to help others, and leads by example—even if their job title doesn’t require it. Leaders are needed at all levels of an organization, but it is critical that true leadership is exhibited at the top. Managers Managers are responsible for planning, organizing, and coordinating people and work efforts. We can tell they are managers based on their titles and the nature of the work they do. They often have “manager,” “supervisor,” or “director” titles and are responsible for the outcomes of projects or departments and lead teams of 2 or more. Not all managers are leaders and not all positions require managers to be leaders. For example, when the most important thing is for the work to simply be done on time and according to specific criteria, managers are needed to oversee the team. Alternatively, when creativity or problem-solving is required and people need to be motivated to do something hard, it is important that a manager also serve as a leader. Leader-Managers Leader-Managers have roles that require them to “manage” others and also exhibit the qualities of leadership that allow them to effectively fulfill their role as a manager. In some cases, managers aren’t effective leaders, which is a risk for the business. In an ideal scenario, managers have the leadership skills necessary for them to go above and beyond the coordination that is required of managers. This allows them to fulfill their managerial role in ways that significantly further the businesses objectives. Leadership Styles Just as leaders can be found in many places in a business, there are many ways to be a leader— different styles and approaches. The six leadership styles discussed below are one way to look at leadership styles. Each of these styles sends a clear message to the team about how the leader and the team interact. Some leaders adopt one of these styles and use it every time they lead. But more effective leaders master most or all of these styles, evaluate the team and goals at hand, and choose the most appropriate style for the given situation. A pacesetting leader says to the team, “Do as I do, now.” The pacesetting leader is a high performer himself, and expects his team to perform with excellence and speed. The leader models the desired behaviors and expects the team to mirror it. This style works well with a highly skilled and motivated team. It can create problems when a team gets overwhelmed, or when more creativity is appropriate. A visionary leader says to the team, “Come with me.” The visionary leader sets out a common vision and goal for the team, and invites each individual team member to find his or her way to achieve the necessary tasks. This style works well when a new vision is appropriate and when there is latitude in how a goal may be attained. It can be counterproductive when the group knows more than the leader. An affiliative leader says to the team, “People come first.” Focuses first on the team and its emotional needs and the emotional health of the team as a whole. This is an appropriate style in times of stress, when a team needs some extra TLC. This style may not be appropriate when there are many pressing deadlines for a project. A coaching leader says to the team, “Try this.” The coaching leader is focused on the team’s professional development and offers team members opportunities to work on developing new skills or improving weaknesses. This style works well when a leader is proficient at many things and can truly help team members improve in various ways. When people are unwilling to learn, this style may not be a good use of time and resources. A coercive leader says to the team, “Do what I tell you.” The coercive leader gives rigid instructions and requires total compliance. This can be appropriate when there is an emergency, an extremely short time frame, or some other unusual circumstances. This style should be used sparingly because it tends to make people feel less valuable or important and often causes tension. A democratic leader says to the team, “What do you think?” A democratic leader encourages the participation of every team member and uses consensus-based decision-making to make sure every person is on board. This is a great method when the leader has a strong team and their buy-in is important to the goal. It won’t work as well when there is an emergency or the team doesn’t have enough expertise to provide helpful input. It’s important to note that there isn’t any single leadership style that is always appropriate. Seeking consensus from a team about which way to exit the building during a fire is a terrible idea. But ordering everyone to walk out a certain door without stopping for personal belongings at the end of a regular workday is also a bad idea. By tailoring a leadership style to the particular circumstances, a leader can ensure that the team works together efficiently toward a common goal. Leaders and Their Teams Some say leaders are born, not made. But actually, leaders have a set of skills that enable them to be great at motivating others to do great work together. Think of it this way: a person might know early on that she loves music, or that he loves food. But that doesn’t automatically make her a concert pianist or him a Michelin-starred chef. Those careers take training, just like leadership. Leadership is a set of skills that can be learned. And while some might have more skills than others, anyone can improve and become better at leading a team. Highly effective leaders have several skills in common when they are working with teams to reach objectives. Here are six skills leaders can develop and practice consistently to help a team achieve its goals. • Focus the team on the goal. The leader sets and describes a clear goal that everyone on the team understands, and the leader ensures that each team member appreciates his or her potential to contribute to reaching the goal. • Encourage the team to work together. The leader provides a forum for open discussions, engages all team members, and ensures that all team members may be heard. The leader invites people to work together and rewards those who do. • Build the confidence of each member. The leader focuses on the positive, places trust in the team by sharing responsibility for important tasks, and shows gratitude for a job well done. • Provide expertise as needed. The leader is an expert in her own subject area, and provides other experts to help in any other subject areas. The leader provides all information necessary to understand the tasks and goals. • Set priorities among tasks. The leader clarifies more important and less important tasks and encourages proper time management among team members. • Manage the performance of the team members. The leader gives clear objectives to the team and each member, and helps the members meet and even exceed those objectives by providing ongoing feedback (both positive and constructive) and resolving performance issues as they arise. By focusing on these six tactics, anyone can lead a team to success. That allows the team to achieve its goal, which is essential for the business, and it also helps the team to feel great about what it’s getting done. Leadership and Culture Just as leaders and their leadership styles have a big impact on how things get done at work, the culture makes a big difference to the experience of employees every day. Culture refers to the workplace environment—what it looks like, how people talk to each other, even what people care about. Culture is formed by the personalities, values and behavior of the people who work for the business. It’s a reflection of the brand of the business and the industry the business is in. Some businesses are very formal and tightly regulated. Everyone clocks in and out, wears a uniform, completes rigid tasks, and does not stray from requirements. Other businesses are extremely flexible. People have flexible hours and dress codes and lots of autonomy. Of course, these are the two ends of the spectrum. In fact, there are four major types of business culture on that spectrum. Ranging from bureaucratic and controlling to entrepreneurial and flexible, these four types of culture include: • Role culture. There are specialized roles that endure even though people come and go. In a role culture, there are strict systems and procedures that everyone must obey. We see this in government departments. • Power culture. A powerful person or group of people are at the center of the business and influence every major decision. This is more common in family-owned businesses. • Task culture. People work in teams to focus on completing work on specific projects. The success of the project outweighs the interests of any one individual. This is common for software development companies. • Person culture. Individual people work mostly on their own and share in the business’s power and decision-making. Often this is the culture at law and architecture firms. You can see how the nature of the work influences the type of culture at a business, and the culture has a big impact on how people feel about work. There are lots of other factors that influence culture as well, including some that we’ve already talked about. Whether the business hierarchy is tall or flat affects how people interact with each other. Paul and Ari of Zingerman’s Delicatessen use a flat hierarchy to make sure that people feel comfortable making suggestions and being creative. The corporate structure also says a lot about the culture as well. In a network structure, where people rarely interact in person, the culture will be very different from a traditional functional structure. The business’s brand often permeates the culture. At a business like Nike, employees often care about working out and being fit. And, of course, a leader has a lot to do with the business’s culture. When Steve Jobs ran Apple, employees knew they would be required to work very hard and to be dedicated to creating innovative new products, just like their CEO. WEEKS 8 & 9 MANAGEMENT & LEADERSHIP Over the last several weeks, you’ve learned how products are developed and made (product development), how those products are marketed and sold to customers (sales and marketing), and how businesses handle the money they make from the sales of those products (finance and accounting). Throughout all of these areas, you’ve probably noticed a common theme: how important people are at every step. Now, we’ll take a look at the human element, which affects every aspect of business. WHAT YOU WILL LEARN Here’s a look at the big ideas that we will concentrate on over the next two weeks: • A business’s hierarchy defines how people within the organization report and relate to one another, as well as what duties they are responsible to complete or oversee. An organizational chart is a graphical depiction of the hierarchy that indicates the reporting structure, roles and responsibilities of the entire business. • The corporate structure of a business embodies how it is organized—such as tall or flat. The structure indicates reporting relationships and decision-making authority. • The human resources cycle captures the path that an individual takes through an organization. The cycle depicts a business’s progression with each employee, starting with recruit and employ, moving to reward, manage, and develop, and ending with transition or exit. • A business’s vision and mission express the driving goals of an organization. The mission says what the business aims to do. The vision describes the world as the business sees it. • Leaders find ways to motivate teams to work together to advance the mission and vision of the business. A leadership style encapsulates a leader’s approach to the business and to her team. STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 1 • Leaders set the tone at the top in order to build teams and foster a healthy, productive culture that enables each team member to serve the mission and vision of the business. HOW BUSINESS LEADERS SEE IT Over the next two weeks, you’ll meet Paul Saginaw and Ari Weinzweig. As leaders at Zingerman’s Delicatessen and the Zingerman’s community of businesses, Paul and Ari are responsible for managing lots of employees, designing and updating the structure of a complex group of businesses, safeguarding the Zingerman’s vision and mission, and building strong, healthy teams. Here are the simple things Paul and Ari think about to make sure their business runs smoothly and serves its employees, its customers, and its community: • Choose a structure that makes sense for the organization. “We wanted to have an organization where decisions were not going to be made based on who had the most authority, but rather who had a solution.” • Live by the mission. “Our mission: Selling food that makes you happy, giving service that makes you smile, and passionate pursuit of that mission. To enhance as many lives as we possibly can and show love and care in all our actions.” • Commit to the vision. “The major work that you have to do is to create a vision that allows you to describe the world that you want to be a part of, and then with all your heart give yourself over to it.” • Empower employees. “We provide meaningful work, dignity, and a sense of community. We do that by bringing in folks, having clear, well-documented expectations, and giving them all the tools and resources that they need in order to be successful.” • Be a custodian of the future. “Somebody in the organization has to take the time to be looking down the road and managing for the future. It is a debt you owe to the people who work for you. WHAT YOU CAN DO WITH IT By the end of these two weeks, you’ll be able to: • Characterize a corporate structure and hierarchy • Identify missing steps in the human resources cycle and the consequences of not focusing on each step • Troubleshoot and improve leadership styles to improve team performance NOTES STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 2
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