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*Chapter

Seven

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Management and Leadership

McGraw-Hill/Irwin

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

TODAY’S MANAGEMENT
• Management is the process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources.

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Managers’ Roles Are Evolving

LG1

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7-2

Organizing 3. Controlling Study figure 7.1 7-3 .FOUR FUNCTIONS of MANAGEMENT * Four Functions of Management LG2 * 1. Planning 2. Leading 4.

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(present) • • • • • Organization’s self-concept Its philosophy Customer needs Social responsibility Nature of product or service 7-5 . Gives a sense of purpose (future) * Planning & Decision Making LG3 * • A mission statement outlines the organization’s fundamental purposes. it’s a broad explanation of why the organization exists and where it’s trying to go.SHARING the VISION • Vision -.More than a goal.

. long term accomplishments an organization wishes to attain.• Goals are the broad. short term statements detailing how to achieve the organization’s goals. • Objectives are specific.

3 • How can we get to our goal from here? Strategic planning Tactical planning Operational planning Contingency planning 7-7 . Fig: 7. Opportunities and Threats.Analyzes the organization’s Strengths.PLANNING ANSWERS FUNDAMENTAL QUESTIONS * Planning & Decision Making LG3 * • What is the situation now? SWOT Analysis -. Weaknesses.

strategies and resources it will need to achieve them. procedures. short-term statements about what is to be done.The process of developing detailed. 7-8 . who is to do it and how.STRATEGIC and TACTICAL PLANNING * Planning & Decision Making LG3 * • Strategic Planning -.Done by top management and determines the major goals of the organization and the policies. • Tactical Planning -.

7-9 .* OPERATIONAL and CONTINGENCY PLANNING Planning & Decision Making LG3 * • Operational Planning -. • Contingency Planning -The process of preparing alternative courses of action the firm can use if its primary plans don’t work out.The process of setting work standards and schedules necessary to implement the company’s tactical objectives.

* PLANNING FUNCTIONS Planning & Decision Making LG3 * 7-10 .

4. Determine whether the decision was a good one and follow up. 5. Do what is indicated.(begin implementation) 7. Develop agreement among those involved. Describe and collect needed information. 6. 7-11 . Define the situation.RATIONAL DECISION-MAKING MODEL (7D’s) 1. 3. * Decision Making: Finding the Best Alternative LG3 * 2. Develop alternatives. Decide which alternative is best.

all the minuses in another. Another technique is called PMI. calls for quicker action to resolve everyday issues with less info.coming up with as many solutions possible in a short period of time with no censoring of ideas. 2. Brainstorming . * 7-12 . and the implications in a third. available 1. The idea is to make sure the pluses exceed the minuses. or listing all the pluses for a solution in one column.* Problem Solving Decision Making: Finding the Best Alternative LG3 Problem Solving: less formal than decision making.

it shows who reports to whom.ORGANIZATIONAL CHARTS *Organizing: Creating a Unified System LG4 * • Organization Chart -A visual device that shows relationships among people and divides the organization’s work. 7-13 .

etc. Regional manager.g. Managing director. district managers. CEO. store manager. First-line Managers also called supervisors – Are at the lowest level of management and manage the work of non-managerial employees e. etc.g. etc. All rights reserved. • 2.Classifying Managers* • 1. • 3.g. President. 1–14 . Middle Managers – Manage the work of first-line managers e. Shift managers. Top Managers – Are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization e. Copyright © 2005 Prentice Hall. project leader. Inc. COO.

LEVELS of MANAGEMENT *Organizing: Creating a Unified System LG4 * 7-15 .

the ability to picture the org.task in specific discipline – Human relation. hiring. 7-16 .involve communication and motivation – Conceptual. motivating and retaining the best people available to accomplish the company’s objectives.Organizing • Skills/Tasks – Technical. as a whole • Staffing Involves recruiting.

Inc. 1–17 .Skills Needed at Different Management Levels Copyright © 2005 Prentice Hall. All rights reserved.

transparency 7-18 . LG5 * .both effective and efficient .Establish corporate values.LEADERSHIP.Leading • Leaders must: * Leading: Providing Continuous Vision and Values.a successful leader must influence the action of others.Promote corporate ethics.Embrace change. . . .Stress accountability and responsibility.Communicate a vision and rally others around that vision.

LEADERSHIP STYLES • Autocratic Leadership -. 7-19 . * Leadership Styles LG5 * • Participative or Democratic Leadership -. • Free-Rein Leadership -Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives. professors and professionals etc. engineers.Managers and employees work together to make decisions.Making managerial decisions without consulting others. Works best when supervises doctors.

giving employees the authority to make a decision without consulting the manager.giving explicit instructions about what to do (fast food restaurant and small retail business) Empowerment.“knowledge is power”: finding the right info.Directing.other concepts . keeping it accessible and known to everyone in the firm LEADERSHIP STYLES. internet companies) Enabling.giving workers education and tools they need to make decisions Knowledge management. (high-tech firm.

* FIVE STEPS of CONTROLLING Controlling: Making Sure it Works LG6 * 7-21 .

and ultimate customers such as you and me. (field sales people) • One goal today is to go beyond simply satisfying customers to “delighting” them with unexpectedly good products and services. who buy their products for their own personal use. . who buy products to sell to others. • Internal customers are individuals and units within the firm that receive services from other individuals or units.A key criterion for measurement: Customer Satisfaction • External customers include dealers.