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*Chapter Seven

Management and

Leadership

Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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*Four Functionsof Management

• Management -- The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources.

WHAT IS MANAGEMENT?LG2

7-2

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*Managers’ Roles Are Evolving

• Younger and more progressive.- Growing numbers of women.

- Fewer from elite universities.

• Emphasis is on teams and team building.

• Managers need to be skilled communicators and team players.

TODAY’S MANAGERS

LG1

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*Four Functionsof Management

1. Planning

2. Organizing

3. Leading

4. Controlling

FOUR FUNCTIONS of MANAGEMENT

LG2

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PLANNING

• **SET GOALS• **DEVEL STRATEGIES TO MEET THESE GOALS• **DETERMINE RESOURCES NEEDED• **SET PRECISE STANDARDS

ORGANIZING

• **ALLOCATE RESOURCES• **PREPARE A STRUCTURE• **RECRUIT, SELECT, TRAIN, AND DEVEL EMPL

• DEALS WITH HOW EVERYONE AND EVERYTHING WORKS TOGETHER

LEADING

• **GUIDE AND MOTIVATE EMPL• **GIVE ASSIGNMENTS• **EXPLAIN ROUTINES, WHY DO WE DO IT A

CERTAIN WAY• **CLARIFY POLICIES• **PERFORMANCE FEEDBACK

CONTROLLING

• **MEAS. RESULTS AGAIN CORP. OBJECTIVES• **MONITOR PERFORMANCE• **REWARD OUTSTANDING PERFORMANCE• **TAKE CORRECTIVE ACTION

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*Planning & Decision Making

• Vision -- More than a goal, it’s a broad explanation of why the organization exists and where it’s trying to go.

SHARING the VISION

LG3

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*Planning & Decision Making

• Mission Statement -- Outlines the organization’s fundamental purposes. It includes:

- The organization’s self–concept.- Its philosophy.- Long–term survival needs.- Customer needs.- Social responsibility.- Nature of the product or service.

DEFINING THE MISSION

LG3

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*Planning & Decision Making

• Goals -- The broad, long-term accomplishments an organization wishes to attain.

• Objectives -- Specific, short-term statements detailing how to achieve the organization’s goals.

SETTING GOALS and OBJECTIVES

LG3

7-11

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*Planning & Decision Making

• What is the situation now?

SWOT Analysis -- Analyzes the organization’s Strengths, Weaknesses, Opportunities and Threats.

• How can we get to our goal from here?- Strategic planning- Tactical planning- Operational planning- Contingency planning

PLANNING ANSWERS FUNDAMENTAL QUESTIONS

LG3

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*Planning & Decision Making

LG3

SWOT MATRIX

7-13

FORMS OF PLANNING

• I. Strategic

• II. Tactical

• III. Contingency

• IV. Operational

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*Planning & Decision Making

• Strategic Planning -- Done by top management and determines the major goals of the organization and the policies, procedures, strategies and resources it will need to achieve them.

• Tactical Planning -- The process of developing detailed, short-term statements about what is to be done, who is to do it and how.

STRATEGIC and TACTICAL PLANNING

LG3

7-15

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*Planning & Decision Making

• Operational Planning -- The process of setting work standards and schedules necessary to implement the company’s tactical objectives.

OPERATIONAL and CONTINGENCY PLANNING

LG3

• Contingency Planning -- The process of preparing alternative courses of action the firm can use if its primary plans don’t work out.

7-16

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*Planning & Decision Making

LG3

PLANNING FUNCTIONS

7-17

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*Decision Making: Finding the Best Alternative

• Decision Making -- Choosing among two or more alternatives.

DECISION MAKING

LG3

7-18

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*Decision Making: Finding the Best Alternative

1. Define the situation.

2. Describe and collect needed information.

3. Develop alternatives.

4. Develop agreement among those involved.

5. Decide which alternative is best.

6. Do what is indicated.

7. Determine whether the decision was a good one and follow up.

RATIONAL DECISION-MAKING MODEL

LG3

7-19

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*Decision Making: Finding the Best Alternative

• Problem Solving -- The process of solving the everyday problems that occur; less formal than decision making and needs quicker action.

• Problem-solving techniques include brainstorming and PMI -- Listing all the pluses for a solution in one column, all the minuses in another and the implications in a third.

PROBLEM SOLVING

LG3

7-20

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*Organizing: Creating a Unified System

• Organization Chart -- A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom.

ORGANIZATIONAL CHARTS

LG4

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*Organizing: Creating a Unified System

• Top Management -- The highest level, consists of the president and other key company executives who develop strategic plans.

• Middle Management -- Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.

• Supervisory Management -- Those directly responsible for supervising workers and evaluating daily performance.

MANAGEMENT LEVELS

LG4

7-22

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*Organizing: Creating a Unified System

• Chief Executive Officer (CEO)- Introduces change into an organization.

• Chief Operating Officer (COO)- Implements CEO’s changes.

• Chief Financial Officer (CFO)- Obtains funds, plans budgets, collects funds, etc.

• Chief Information Officer (CIO)- Gets the right information to the right people so

decisions can be made.

TOP MANAGEMENT

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• Technical Skills -- The ability to perform tasks in a specific discipline or department.

MANAGERIAL SKILLS Tasks and Skills at Different Levels of Management

LG4

• Human Relations Skills -- Skills that involve communication and motivation; they enable managers to work through and with people.

• Conceptual Skills -- Skills that involve the ability to picture the organization as a whole and the relationship among its various parts.

7-24

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*Staffing: Getting and Keeping the Right People

• Staffing -- Recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives.

• Recruiting good employees is critical.

• Many people are not willing to work at companies unless they are treated well with fair pay.

STAFFING

LG4

7-25

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*Leading: Providing Continuous Vision and Values.

• Leaders must:

- Communicate a vision and rally others around that vision.

- Establish corporate values.

- Promote corporate ethics.

- Embrace change.

- Stress accountability and responsibility

LEADERSHIP

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*Leadership Styles

• Autocratic Leadership -- Making managerial decisions without consulting others.

• Participative or Democratic Leadership -- Managers and employees work together to make decisions.

• Free-Rein Leadership -- Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

LEADERSHIP STYLES

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Source: BusinessWeek, www.businessweek.com.

• Manage output instead of hours.

• Train workers to be ready for a more complex corporate structure.

• Allow lower-level managers to make decisions.

• Use new technology to foster teamwork.

• Shift hiring emphasis to collaboration.

WORK SMARTERHow to Ease Pressure on Workers

Empowering Workers

LG5

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