Thursday, October 8, 2009

Belated Posting of Lesson Plan on Drucker Chapters 1 - 3

From Team Change, Effective, Designing for

I. At certain points throughout this discussion, we will ask that you ignore what you read for today’s class. Instead, please answer solely based upon your thoughts and what you would find yourself thinking/doing in that situation.

II. Introduction to Hypothetical Situation
Congratulations! You have just decided to open a Mexican restaurant. This has been a lifelong goal for you, and you are thrilled you have graduated college and can now dedicate yourself to a fine Mexican cuisine restaurant serving organic, extraordinary takes on traditional Mexican recipes.
You cannot afford to open this venture in Chicago, so you’ve decided to do it in your home town in the outskirts of large Chicagoland suburbs. You have secured financing for this venture in a few ways. First, you begged your parents to make you an interest-free loan of $15,000. They scrambled for the money, but in the end came through for you. Next, you obtained a $60,000 loan from your local bank (obviously, your parents co-signed). Finally, you are putting forth your life savings of $5,000. Your student loan provider has agreed to defer your $21,000 student loans for 3 years.

A. What are you basic instincts on this situation which you have willingly entered?

B. What is the purpose of your restaurant? Add your personal touch when responding to this question.

C. You are the owner and manager. What will make you a good manager for your restaurant?

III. Characteristics of good management (general discussion)

A. What makes a good leader

B. Attitudes, communications, etc.

C. Begin the personal examples
· Employer
· Extracurricular Activities
· Sports Coach
· Band, Choir, Orchestra Leader

IV. Chapter 1: Management as Social Function and Liberal Art (points to hit from the book)

A. What is management?
· It is about human beings, making them work efficiently together by multiplying their strengths and compensating for their weaknesses
· Management is deeply embedded in culture
· Although the functions of management are the same, the way in which management is executed varies based on tradition, history, and culture

B. Management must have objectives
· This is the difference between an enterprise and a mob
· Management needs to allow individuals to grow and develop to face new challenges
· An enterprise is both a learning and a teaching institution
· Communication and personal responsibility are required to structure people with many different skills and jobs
· A diversity of performance measurements are needed continually assess and improve the health and performance of an enterprise
· Results only exist on the outside; inside, there are only costs

C. Management as a liberal art
· “Liberal”- management deals with knowledge, self-knowledge, wisdom, and leadership
· “Art”- management is concerned with practice and application
· Which type will you engage in for your restaurant? What type of manager do you see yourself as?

V. Hypo.
Think of your day-to-day operations—and not just the good or the bad, but the stressful things that will push you to your limits. As you work with irresponsible teen waiters, Mexican cooks who know more about Mexican food than you do, suppliers late with shipments, rude customers who leave without paying, employees whose kids come and loiter at the restaurant all day, local vandalism, etc.
What type of management do you see yourself engaging in? What type of manager do you want to be? What will make you effective?

VI. Chapter 2: The Dimensions of Management (points to hit from the book)

A. What are the tenants of an effective manager?
· Purpose
· Productivity
· Social responsibility

B. Three tasks of management in the enterprise:
· Establish the purpose and mission of the institution
o In the business enterprise economic performance is the primary purpose
· Make work productive and the worker effective
o Organizing work
o Making work suitable for human beings
o Doing things that benefit your employees even though you don’t have to do those things. Making your restaurant a great place for people to work because you care about them
· Manage social impacts and responsibilities
o An enterprise has have an impact on the community
o An enterprise should show concern for the quality of life
o The two previous points go along with making work suitable for human beings but take the concept a step further. . Influencing or contributing to your community because you care about them—they are your customers—and they care about you—they come to your restaurant for the unique experience. Make life easier for those who work for you and who support you. Show that you are not a money-making machine but rather a person who cares about the people who work for him
o Doing so will build employee loyalty and help foster a relationship of mutual caring and respect. This cannot be faked, as it is obvious to employees when a boss does not truly care about their wellbeing.

C. Ask a question where it is less obvious for social responsibility.
· If no one answers, hypothetical: one of your waitress’ has two sons who play catch outside. They break your window. You decide to sponsor t-shirts to get a Little League started in your community.

D. What is something a manager needs to do that does not fall under those three?
· There is nothing that does not fall under these three.
· Anything you think of either falls under those tasks or is not as important as you think.

E. Validity of his quotes
· Our ability to contrib. to society is the manager and the individual skill (p. 11)
· No one does it alone. Even Einstein didn’t do it alone.
· Management is solely responsible for consequences. (p.10)
· Hypothetical: One of your kitchen workers slips and dislodges his hip. He wasn’t wearing slip-resistant shoes and the kitchen does not have slip-resistant mats. Get class to say who the blame is on.
· Hypothetical: A customer calls complaining about food poisoning. Who is responsible?
· Results of an organization only exist outside the group itself. You can only rate group’s effectiveness based on external factors. (p. 12)
· Soccer team? In a game, you don’t know how good you are until you face another team. When you play a team sport, how do you know your team is good/competitive?
· Exam, you feel like you know everything, but you didn’t when you get exam. Huge huge lecture, no chance to prove yourself until exam ina small one, there is more disc, opp, direct discussion with prof. What were your chances to prove yourself to the professor? Exam, online quiz
· How is an individual rated? Only O and T (Opportunities, Threats) is what matters…
· What about personal growth or the group itself?

VII. What are the results of a good business?

VIII. Chapter 3: The Purpose and Objectives of a Business (points from book to integrate with examples for this section only)

A. Purpose of a business
1) To create a customer
(a) Don’t ask “what do we want to sell?”; ask “what does the customer want to buy?”
2) What is our business? What should our business be? What will it be? (necessitates objectives)
B. Objectives of a business- definition, purpose, and mission of a business must be translated into objectives to make achievement possible
1) Objectives of objectives
(a) Objectives represent the fundamental strategy of a business (what our business is, will be, and should be)
(b) Objective must be operational
(c) Objectives must concentrate resources and effort
(d) There must be multiple objectives to balance a variety of needs and goals
(e) Objectives are needed in each of the business’s “survival areas”
2) Marketing objectives- creating a customer
3) Innovation objective- this is not only technical invention, but also economic and social innovation to prevent being rendered obsolete by competitors
4) Resources objectives- to plan the supply, employment, and development of human resources, physical resources, and capital resources
5) Productivity objectives- to obtain and grow productivity of resources
6) Social responsibilities objectives- business exists in society and so has to take responsibility
7) Profit as a need and limitation- Plan for a needed minimum profitability rather than meaningless “profit maximization”

IX. The new company will die without management. The existing company will die without innovation.
· With restaurant: Marketing? Resources? Productivity? Social responsibility?
· Mother, four kids under age 5. Stickers can be a simple tool to make kids behave, and this is innovation.
· Used car salesman: going-concern? He is making money from dishonesty and not innovation
· Management vs. innovation
· What are they trying to do and how?
· What makes a bad leader?
o Considers profit the only task to achieve.
o An inability to innovate
o Inability to follow the three tasks
· Where does profit fit in? It’s a NEED not an objective
· What is the importance of profit in a business?
· Is it a need or desire?
· NEED not objective.

X. Summarize discussion based on what class contributed
· It is about human beings, making them work efficiently together by multiplying their strengths and compensating for their weaknesses
· 3 tasks: purpose, productivity, social responsibility
· Profit not the objective

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