Management and Leadership Chapter 6 PDF

Management and Leadership Chapter 6 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Seven LEARNING GOALS 1. Describe the changes occurring today in the manageme...

Management and Leadership Chapter 6 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Seven LEARNING GOALS 1. Describe the changes occurring today in the management function. 2. Describe the four functions of management. 3. Relate the planning process and decision making to the accomplishment of company goals. 7-2 Chapter Seven LEARNING GOALS 4. Describe the organizing function of management. 5. Explain the differences between leaders and managers, and describe the various leadership styles. 6. Summarize the five steps of the control function of management. 7-3 Four Functions of Management WHAT IS MANAGEMENT? LG1 Management -- The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources. 7-4 Managers’ Roles Are Evolving TODAY’S MANAGERS LG1 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. 7-5 Four Functions of Management FOUR FUNCTIONS of LG2 MANAGEMENT 1. Planning 2. Organizing 3. Leading 4. Controlling 7-6  Function of Management ⚫ Planning ⚫ Defining goals, establishing strategies to achieve goals, 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. 1–7 Planning & Decision Making PLANNING ANSWERS LG3 FUNDAMENTAL QUESTIONS 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 7-8 Planning & Decision Making PLANNING FUNCTIONS LG3 7-9 Planning & Decision Making STRATEGIC and TACTICAL LG3 PLANNING 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. 7-10 Planning & Decision Making OPERATIONAL and CONTINGENCY LG3 PLANNING Operational Planning -- The process of setting work standards and schedules necessary to implement the company’s tactical objectives. Contingency Planning -- The process of preparing alternative courses of action the firm can use if its primary plans don’t work out. 7-11 Decision Making: Finding the Best Alternative DECISION MAKING LG3 Decision Making -- Choosing among two or more alternatives. 7-12 Decision Making: Finding the Best Alternative RATIONAL DECISION-MAKING LG3 MODEL 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. 7-13 Decision Making: Finding the Best Alternative PROBLEM SOLVING LG3 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. 7-14 Organizing: Creating a Unified System ORGANIZATIONAL CHARTS LG4 Organization Chart -- A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom. 7-15 Organization Models FOUR WAYS to STRUCTURE an LG4 ORGANIZATION 1. Line Organizations 2. Line-and-Staff Organizations 3. Matrix-Style Organizations 4. Cross-Functional Self-Managed Teams 8-16 Line Organizations LINE ORGANIZATIONS LG4 Line Organization -- Has direct two-way lines of responsibility, authority and communication running from the top to the bottom. Everyone reports to one supervisor. There are no specialists, legal, accounting, human resources or information technology departments. Line managers issue orders, enforce discipline and adjust the organization to changes. 8-17 Line-and-Staff Organizations LINE PERSONNEL LG4 Line Personnel -- Workers responsible for directly achieving organizational goals, and include production, distribution and marketing employees. Line personnel have authority to make policy decisions. 8-18 Line-and-Staff Organizations STAFF PERSONNEL LG4 Staff Personnel -- Employees who advise and assist line personnel in meeting their goals, and include marketing research, legal advising, IT and human resource employees. 8-19 Line-and-Staff Organizations SAMPLE LINE-and-STAFF LG4 ORGANIZATION 8-20 Matrix-Style Organizations MATRIX ORGANIZATIONS LG4 Matrix Organization -- Specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff structure. Emphasis is on product development, creativity, special projects, communication and teamwork. 8-21 Matrix-Style Organizations SAMPLE MATRIX LG4 ORGANIZATION 8-22 Turning Principles into Organization Design TYPICAL ORGANIZATION CHART LG2 8-23 Choosing Tall versus Flat Organization Structures ORGANIZATIONAL STRUCTURES LG3 Structures determine the way the company responds to employee and customer needs. Tall Organization Structures -- An organizational structure in which the organization chart would be tall because of the various levels of management. Flat Organization Structures -- An organizational structure that has few layers of management and a broad span of control. 8-24 Choosing Tall versus Flat Organization FLAT ORGANIZATIONAL Structures LG3 STRUCTURE 8-25 Organizing: Creating a Unified System LEVELS of MANAGEMENT LG4 7-26 Organizing: Creating a Unified System MANAGEMENT LEVELS LG4 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. 7-27 Tasks and Skills at Different Levels of Management MANAGERIAL SKILLS LG4 Technical Skills -- The ability to perform tasks in a specific discipline or department. 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. 7-28 Tasks and Skills at Different Levels of Management SKILLS NEEDED at VARIOUS LG4 LEVELS of MANAGEMENT 7-29 Staffing: Getting and Keeping the Right People STAFFING LG4 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. 7-30 Leading: Providing Continuous Vision and Values. LEADERSHIP LG5 Leaders must: - Communicate a vision and rally others around that vision. - Establish corporate values. - Promote corporate ethics. - Grasp change. - Stress accountability and responsibility. 7-31 Leading: Providing Continuous Vision and Values. ACCOUNTABILITY through LG5 TRANSPARENCY Transparency -- The presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders. 7-32 Leadership Styles LEADERSHIP STYLES LG5 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. 7-33 Empowering Workers EMPOWERMENT LG5 Progressive leaders give employees the authority to make decisions on their own without consulting a manager. Customer needs are handled quickly. Manager’s role becomes less of a boss and more of a coach. Enabling -- Giving workers the education and tools they need to make decisions. 7-34 Empowering Workers WORK SMARTER LG5 How to Ease Pressure on Workers 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. Source: Bloomberg BusinessWeek,www.businessweek.com. 7-35 Managing Knowledge MANAGING KNOWLEDGE LG5 Knowledge Management -- Finding the right information, keeping the information in a readily accessible place and making the information known to everyone in the firm. Tries to keep people from reinventing the wheel. 7-36 Controlling: Making Sure it Works FIVE STEPS of CONTROLLING LG6 7-37 Controlling: Making Sure it Works ARE YOU a MICROMANAGER? LG6 Do you have strategic initiatives that you have not addressed? Do you often check on employees for quality control? Do you often check on subordinates throughout the day? Do you rarely take vacations? Is there a lot of turnover? Source: CFO Magazine,www.cfo.com. 7-38