Management 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. Chapter Contents Managers’ Roles Are Evolving The Four F...

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. Chapter Contents Managers’ Roles Are Evolving The Four Functions of Management Planning and Decision Making Organizing: Creating a Unified System Leading: Providing Continuous Vision and Values Controlling: Making Sure It Works ©McGraw-Hill Education. Learning Objectives LO 7-1 Describe the changes occurring today in the management function. LO 7-2 Describe the four functions of management. LO 7-3 Relate the planning process and decision making to the accomplishment of company goals. LO 7-4 Describe the organizing function of management. LO 7-5 Explain the differences between leaders and managers, and describe the various leadership styles. LO 7-6 Summarize the five steps of the control function of management. ©McGraw-Hill Education. Managers’ Roles Are Evolving Managers Today Tend to be collaborative Guide, train, support, motivate, and coach employees Need to be skilled communicators and team players Need to be globally prepared LO 7-1 ©McGraw-Hill Education. Empowering Employees Rather than telling employees exactly what to do, managers today tend to give their employees enough independence to make their own informed decisions about how best to please customers. How do you think most employees respond to this empowerment on the job? LO 7-1 ©McGraw-Hill Education. © Paul J. RIchards/AFP/Getty Images Climbing the Ranks Where CEOs are Appointed From Jump to long description in appendix ©McGraw-Hill Education. LO 7-1 Source: Spencer Stuart, “Insiders Gain an Edge,” The Wall Street Journal, March 9, 2016. The Four Functions of Management Management Functions Planning Organizing Leading Controlling LO 7-2 ©McGraw-Hill Education. Figure 7.1 What Managers Do 1 of 2 Jump to long description in appendix ©McGraw-Hill Education. LO 7-2 Figure 7.1 What Managers Do 2 of 2 Jump to long description in appendix ©McGraw-Hill Education. LO 7-2 Planning Planning is what helps managers understand the environment in which their businesses must operate. When people’s tastes and preferences for restaurant meals change, food service managers need to be ready to respond with menu alternatives. What changes have occurred in your own preferences? LO 7-2 ©McGraw-Hill Education. © Creatas/Getty Images RF Planning and Decision Making Vision — More than a goal; an encompassing explanation of why the organization exists and where it’s trying to go. Mission statement — An outline of the fundamental purposes of an organization, including: The organization’s self-concept Its philosophy Long-term survival needs Customer needs Social responsibility Nature of the product or service https://www.missionstatements.com/fortune_500_mission_state ments.html 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 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 7.3 Planning Functions Jump to long description in appendix ©McGraw-Hill Education. LO 7-3 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 situation. 2. Describe and collect needed information. 3. Develop alternatives. 4. Decide which alternative is best. 5. Do what is indicated. 6. Determine whether the decision was a good one, and follow up. LO 7-3 ©McGraw-Hill Education. Figure 7.4 Levels of Management Jump to long description in appendix ©McGraw-Hill Education. LO 7-4 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. Figure 7.5 Skills Needed at Various Levels of Management Jump to long description in appendix ©McGraw-Hill Education. LO 7-4 Organizing: Creating a Unified System Staffing: Getting and Keeping the Right People Staffing — Hiring, motivating, and retaining the best people available to accomplish the company’s objectives. LO 7-4 ©McGraw-Hill Education. Staffing Is Tricky Business Six Sins of Staffing 1. Don’t hire someone because someone else says so. 2. Don’t get caught up in applicants’ appearances. 3. Don’t give someone the wrong job. 4. Don’t forget about feedback. 5. Don’t give promotions just because it’s time. 6. Don’t cheat your employees. LO 7-4 ©McGraw-Hill Education. Source: CareerBuilder, www.careerbuilder.com, accessed November 2017. 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. 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 Autocratic leadership Make 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 relatively free to do whatever it takes to accomplish those objectives. LO 7-5 ©McGraw-Hill Education. Leading: Providing Continuous Vision and Values Managing Knowledge Knowledge management Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm. This tries to keep people from reinventing the wheel. LO 7-5 ©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 ©McGraw-Hill Education. LO 7-6 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.