Chapter 7 Management and Leadership PDF

Chapter 7 Management and Leadership ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.  Managers’ Roles Are Evolving...

Chapter 7 Management and Leadership ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.  Managers’ Roles Are Evolving Managers Today Today's managers work closely with teams. They help, coach, and support employees to succeed together. Managers are also skilled communicators and team players. Managers need to be ready for global challenges LO 7-1 ©McGraw-Hill Education.  Empowering Employees In the past, managers were "bosses" who told employees what to do. Today, managers give employees the freedom to make their own decisions. Employees are trusted to make choices that benefit the customer. LO 7-1 ©McGraw-Hill Education. © Paul J. RIchards/AFP/Getty Images  The Functions of Management LO 7-2 ©McGraw-Hill Education.  The Four Functions of Management LO 7-2 ©McGraw-Hill Education.  Figure 7.1 What Managers Do 1 of 2 Jump to long description in appendix LO 7-2 ©McGraw-Hill Education.  Figure 7.1 What Managers Do 2 of 2 Jump to long description in appendix LO 7-2 ©McGraw-Hill Education.  Planning LO 7-2 ©McGraw-Hill Education. © Creatas/Getty Images RF  LO 7-2 ©McGraw-Hill Education. © Creatas/Getty Images RF  Planning and Decision Making Vision — Vision is a big-picture idea of why a company exists and what it wants to achieve in the future. Mission statement — What the company does, its values, and who it serves: Values: What the company believes is important. Long-term goals: How the company plans to grow and stay successful. Customer focus: How the company takes care of its customers. Responsibility: How the company helps society and the environment. Products/Services: The specific things the company sells or offers. LO 7-3 ©McGraw-Hill Education.  Planning and 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. LO 7-3 ©McGraw-Hill Education.  Planning and Decision Making Planning Answers 2 Fundamental Questions: 1. What is the situation now? SWOT analysis — A planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats. 2. How can we get to our goal from here? Strategic planning Tactical planning Operational planning Contingency planning LO 7-3 ©McGraw-Hill Education.  Figure 7.2 SWOT Matrix Jump to long description in appendix LO 7-3 ©McGraw-Hill Education.  Figure 7.3 Planning Functions Jump to long description in appendix LO 7-3 ©McGraw-Hill Education.  Planning and Decision Making Strategic planning — Determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. Tactical planning — Developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done. Operational planning — Setting work standards and schedules necessary to implement the company’s tactical objectives. Day-to-day tasks. Contingency planning — Backup plans in case things go wrong. LO 7-3 ©McGraw-Hill Education.  POLLING QUESTION _____ planning involves the development of detailed, short-term statements about what is to be done, who is to do it, and how. A. Tactical B. Strategic C. Contingency D. Operational ©McGraw-Hill Education.  Planning and Decision Making Decision Making: Finding the Best Alternative Decision making — Choosing among two or more alternatives. Rational decision-making model 1. Define the problem. 2. Gather information. 3. Develop alternatives. 4. Choose the best alternative. 5. Implement the decision. 6. Evaluate the decision. Managers don't always go through he six-step process. Sometimes, they have to make decisions on the spot with little information available. LO 7-3 ©McGraw-Hill Education.  Organizing LO 7-4 ©McGraw-Hill Education.  Organizing: Creating a Unified System Management Levels Top management — Highest level, consisting 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 their daily performance LO 7-4 ©McGraw-Hill Education.  Figure 7.4 Levels of Management Jump to long description in appendix LO 7-4 ©McGraw-Hill Education.  Organizing: Creating a Unified System Top Management 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. LO 7-4 ©McGraw-Hill Education.  Organizing: Creating a Unified System Tasks and Skills at Different Levels of Management 1. Technical skills The ability to perform tasks in a specific discipline or department. 2. Human relations skills Communication and motivation; they enable managers to work through and with people. 3. Conceptual skills The ability to picture the organization as a whole and the relationship among its various parts. LO 7-4 ©McGraw-Hill Education.  Figure 7.5 Skills Needed at Various Levels of Management Jump to long description in appendix LO 7-4 ©McGraw-Hill Education.  Leading LO 7-5 ©McGraw-Hill Education.  Leading: Providing Continuous Vision and Values Leadership: Creating a vison for others to follow, establishing corporate values and ethics, and transforming the way the organization does business in order to improve its effectiveness and efficiency. Leaders must: Communicate a vision and rally others around that vision. Establish corporate values. Promote corporate ethics. Embrace change. Stress accountability and responsibility. Transparency — The presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders. LO 7-5 ©McGraw-Hill Education.  Leading: Providing Continuous Vision and Values Leadership Styles 1. Autocratic leadership Make managerial decisions without consulting others. 2. Participative or democratic leadership The leader makes decisions with input from the team 3. Free-rein leadership (also know as Laissez-faire) Employees are given freedom to make decisions once goals are set. LO 7-5 ©McGraw-Hill Education.  Figure 7.6 Various Leadership Styles Jump to long description in appendix LO 7-5 ©McGraw-Hill Education. Source: Robert Tannenbaum and Warren Schmidt, “How to Choose a Leadership Pattern,” Harvard Business Review, May/June 1973.  Autocratic Leadership Alan Mulally, former CEO of Ford Motor Company, managed to lead the U.S. auto giant back to profitability after the recession—without a government bailout. The reason for this success was the leadership style of the most authoritarian CEO that Ford has seen since Henry Ford. When an organization is under extreme pressure, why might autocratic leadership be necessary? LO 7-5 ©McGraw-Hill Education. © Jeff Kowalsky/Bloomberg/Getty Images  Leading: Providing Continuous Vision and Values Empowering Workers Modern leaders give employees the authority to make decisions on their own without consulting a manager. Enabling — Giving workers the education and tools they need to make decisions. Customer needs are handled quickly. Manager’s role becomes less of a boss and more of a coach. LO 7-5 ©McGraw-Hill Education.  When Empowerment Doesn’t Work Fast-food restaurant employees often don’t have the skill and experience to make empowerment work very well. Instead, their managers generally must supervise and direct them closely. LO 7-5 ©McGraw-Hill Education. © Ed Murray/The Star-Ledger/The Image Works  Controlling LO 7-6 ©McGraw-Hill Education.  Controlling: Making Sure It Works Control Function Measures performance relative to planned objectives Rewards people for work well done Takes necessary corrective action LO 7-6 ©McGraw-Hill Education.  Figure 7.7 The Control Process Jump to long description in appendix LO 7-6 ©McGraw-Hill Education.  Controlling: Making Sure It Works A Key Criterion for Measurement: Customer Satisfaction Traditional forms of measuring success are financial. Pleasing employees, stakeholders, and customers is important. External customers — Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own use. Internal customers — Individuals and units within the firm that receive services from other individuals or units. LO 7-6 ©McGraw-Hill Education.