Business A Changing World 10th Edition Ferrell Solutions Manual 1

Ferrell / Hirt / Ferrell:
Instructor’s Manual - Chapter 6

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Chapter 6: The Nature of Management
Use this Instructor’s Manual to facilitate class discussion and incorporate the unique features of the text’s
highlights. Follow-up via the Connect exercises is then encouraged to provide a holistic understanding of the
chapter.
CHAPTER FORECAST
For any organization—small or large, for profit or nonprofit—to achieve its objectives, it must have equipment
and raw materials to turn into products to market, employees to make and sell the products, and financial
resources to purchase additional goods and services, pay employees, and generally operate the business. To
accomplish this, it must also have one or more managers to plan, organize, staff, direct, and control the work
that goes on. This chapter introduces the field of management. It examines and surveys the various functions,
levels, and areas of management in business. The skills that managers need for success and the steps that lead
to effective decision making are also discussed.
LEARNING OBJECTIVES
LO 6-1 Define management, and explain its role in the achievement of organizational objectives.
LO 6-2 Describe the major functions of management.
LO 6-3 Distinguish among three levels of management and the concerns of managers at each level.
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Business
LO 6-4 Specify the skills managers need in order to be successful.
LO 6-5 Summarize the systematic approach to decision making used by many business managers.
LO 6-6 Recommend a new strategy to revive a struggling business.
LEARN THE TERMS
agenda (p. 195) 191) networking (p. 195)

analytical skills (p. 188) first-line managers (p. 185) operational plans (p. 178)
conceptual skills (p. 188) human relations skills (p. organizing (p. 179)
188)
controlling (p. 181) planning (p. 175)
leadership (p. 188)
crisis management or staffing (p. 179)
contingency planning (p. 178) management (p. 174)
strategic plans (p. 177)
directing (p. 180) managers (p. 174)
tactical plans (p. 177)
downsizing (p. 179) middle managers (p. 185)
technical expertise (p. 187)
employee empowerment (p. mission (p. 175)
top managers (p. 182)
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KEY TERMS AND DEFINITIONS
agenda A calendar, containing both specific and vague items, that covers short-
term goals and long-term objectives.
analytical skills The ability to identify relevant issues, recognize their importance,
understand the relationships between them, and perceive the
underlying causes of a situation.
conceptual skills The ability to think in abstract terms and to see how parts fit together to
form a whole.
controlling The process of evaluating and correcting activities to keep the

organization on course.
crisis management An element in planning that deals with potential disasters such as
(contingency planning) product tampering, oil spills, fire, earthquake, computer virus, or
airplane crash.
directing Motivating and leading employees to achieve organizational objectives.
employee empowerment When employees are provided with the ability to take on responsibilities
and make decisions about their job.
downsizing The elimination of a significant number of employees from an

organization.
first-line managers Those who supervise both workers and the daily operations of an
organization.
human relations skills The ability to deal with people, both inside and outside the organization.
leadership The ability to influence employees to work toward organizational goals.
management A process designed to achieve an organization’s objectives by using its

resources effectively and efficiently in a changing environment.
managers Those individuals in organizations who make decisions about the use of
resources and who are concerned with planning, organizing, staffing,
directing, and controlling the organization’s activities to reach its
objectives.
middle managers Those members of an organization responsible for the tactical planning
that implements the general guidelines established by top management.
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mission The statement of an organization’s fundamental purpose and basic

philosophy.
networking The building of relationships and sharing of information with colleagues

who can help managers achieve the items on their agendas.
operational plans Very short-term plans that specify what actions individuals, work groups,
or departments need to accomplish in order to achieve the tactical plan
and ultimately the strategic plan.
organizing The structuring of resources and activities to accomplish objectives in an

efficient and effective manner.
planning The process of determining the organization’s objectives and deciding

how to accomplish them; the first function of management.
staffing The hiring of people to carry out the work of the organization.
strategic plans Those plans that establish the long-range objectives and overall strategy
or course of action by which a firm fulfills its mission.
tactical plans Short-range plans designed to implement the activities and objectives
specified in the strategic plan.
technical expertise The specialized knowledge and training needed to perform jobs that are
related to particular areas of management.
top managers The president and other top executives of a business, such as the chief
executive officer (CEO), chief financial officer (CFO), chief operating
officer (COO), who have overall responsibility for the organization.
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CONTENT OUTLINE
The following section provides the flow of information using the LEARNING OBJECTIVES as a guide, KEY TERMS
learners will need to take away from the course and a notation of when to use POWERPOINT SLIDES with
LECTURE NOTES to drive home teaching points. There is also a reminder on when CONNECT activities can be
used. This is created so that you can facilitate in-class or online discussion effectively.
LO 6-1 Define management, and explain its role in the achievement of Key Terms:
organizational objectives.
 Management
 Introduction  Managers
 The Importance of Management 
PowerPoint Slides Lecture Outline and Notes:
PPT 6.4 I. The Importance of Management

A. Any organization, small or large, public or private, needs managers to
plan, organize, staff, direct, and control the work that goes on.
1. In short, managers help organizations achieve their objectives.
B. Management is a process designed to achieve an organization’s
objectives by using its resources effectively and efficiently in a changing
environment.
1. Effectively means having the intended result.
2. Efficiently means accomplishing the objectives with a minimum of
resources.
C. Managers make decisions about the use of the organization’s resources,
and are concerned with planning, organizing, leading, and controlling the
organization’s activities so as to reach its objectives. (Figure 6.1)
PPT 6.5 D. Every organization, in the pursuit of its objectives, must acquire
resources (employees, suppliers, and financial resources) and coordinate
their use to turn out a final good or service.
1. Employees are one of the most important resources, and successful
companies foster employee loyalty.
2. Suppliers are another important consideration because a good
supplier maximizes efficiencies and reduces costs.
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3. Financial resources pay for essential activities.

a. Primary funding comes from owners and shareholders, banks,
and other financial institutions.
4. Managers must carefully coordinate and control all of these
resources in order for the organization to meet its objectives.
E. Management is universal. It takes place not only in business, but also in
government, the military, labor unions, hospitals, schools, and religious
groups – any organization requiring the coordination of resources.
1. For example, Sergio Marchionne, the CEO of Fiat, saved the company
from bankruptcy and, after acquiring Chrysler, saved them as well.
LO 6-2 Describe the major functions of management. Key Terms:
 Management Functions  Planning

o Planning  Mission
o Organizing  Strategic plans
o Staffing  Tactical plans
 Operational plans
o Directing
 Crisis management
o Controlling
(contingency planning)
 Organizing
 Staffing
 Downsizing
 Directing
 Controlling
II. Management Functions
I. To harmonize the use of resources so that businesses can develop,
produce, and sell products, managers engage in a series of activities:
II. Planning
1. Planning is the process of determining the organization’s objectives
PPT 6.7 and deciding how to accomplish them.
a. Designs the map that is the groundwork for all other functions
b. Involves forecasting events and determining the best course of
action from a set of options or choices.
c. The plan specifies what should be done, by whom, where, when,
and how.
d. All organizations need to develop plans, but before an
organization can plan a course of action, it must first determine
what it wants to achieve.
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2. An organization’s mission is the statement of an organization’s

fundamental purpose and basic philosophy.
1. Answers the question: What business are we in?
2. Clear and concise statement that describes an organization’s
reason for existence.
3. A goal is the result that a firm wishes to achieve.
a. Companies usually have multiple goals
b. A goal has three key components: An attribute sought, a target
to be achieved, and a time frame in which the goal is to be
achieved.
4. Objectives.
a. Objectives, the ends or results desired by the organization,
derive from the organization’s mission.
b. Can be simple or elaborate. Profit, competitive advantage,
efficiency, and growth are examples of objectives.
c. The principal difference between goals and objectives is that
objectives are generally stated in such a way that they are
measurable.
d. Objectives provide direction for all managerial decisions and
establish criteria by which performance can be evaluated.
5. There are three general types of plans for meeting objectives.
PPT 6.8 a. Strategic plans are long-range plans developed by top-level
managers.
1) Strategic plans generally cover periods ranging from one
year or longer, and may relate to plans to add products,
purchase companies, sell unprofitable segments of the
business, issue stock, and/or move into new markets.
2) Strategic plans must take into account the firm’s capabilities
and resources, the changing business environment, and
organizational objectives.
a. For example, Southwest Airline’s strategic plan was to
expand operations by acquiring AirTran.
PPT 6.9 b. Tactical plans are short-range plans designed to implement the
PPT 6.10 activities and objectives specified in the strategic plan.
1) They usually cover a period of one year or less and help keep
the organization on the course established in the strategic
plan.
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1) Because tactical plans allow the organization to react to

changes in the environment while continuing to focus on the
company’s overall strategy, management must periodically
review and update them.
2) Because of their short-term nature, tactical plans are easier
to adjust or abandon if changes in the environment or the
firm’s performance so warrant.
c. Operational plans are very short term and specify what actions
specific individuals, work groups, or departments need to
accomplish in order to achieve the tactical plan and ultimately
the strategic plan.
1) They apply to details in executing activities in one month,
week, or even day.
PPT 6.11 d. Another element in planning is the idea of crisis management or
contingency planning, which deals with potential disasters such
as product tampering, oil spills, fire, earthquake, computer virus,
or airplane crash.
1) Companies that have contingency plans tend to respond
more effectively when problems occur than do firms that
lack such planning.
2) Many businesses do not have updated contingency plans to
handle the types of crises that their companies might
encounter.
a) A recent study reveals that more than 85 percent of
small or midsized businesses have ineffective or
outdated emergency recovery plans.
3) Crisis management plans cover two elements: maintaining
business throughout a crisis and communicating with the
public, employees, and officials about the problem and the
company’s response.
III. Organizing
PPT 6.12
1. Organizing is the structuring of resources and activities to
accomplish objectives in an efficient and effective manner.
a. Structure helps organizations accomplish goals. Rarely are
individuals in an organization able to achieve common goals
without some form of structure.
2. Managers organize by reviewing plans and determining what
activities are necessary to implement them.
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3. Managers divide the work into small units and assign it to specific
individuals, groups, or departments.
a. As companies reorganize for efficiency, they are organizing work
into teams to handle core processes such as new product
development instead of the more traditional departments.
b. Organizing is continuous because change is inevitable.
4. Organizing is important for the following reasons.
a. Helps create synergy.
b. Establishes lines of authority
c. Improves communication
d. Helps avoid duplication of resources
e. Improves effectiveness by speeding up decision making
PPT 6.13 IV. Staffing
1. Staffing is hiring people to carry out the work of the organization.
Once managers have determined what work is to be done and how
it is to be organized, they must ensure the organization has enough
employees with appropriate skills to do the work
2. Requires:
a. Recruiting people for positions within the firm
b. Determining what skills are needed for specific jobs
c. How to motivate and train employees to do their assigned jobs
d. How much to pay employees
e. What benefits to provide
f. How to prepare employees for higher-level jobs in the firm at a
later date
PPT 6.14 3. Some companies choose to recruit new people through online job
websites like Monster.com, one of the world’s largest. This falls
under the staffing function of management.
4. Another aspect of staffing is downsizing, the elimination of significant
PPT 6.15 numbers of employees from an organization.
a. Production, sales, and technical positions can be outsourced to
countries with lower labor costs.
b. Staffing itself can be outsourced to companies who focus on
hiring and managing employees.
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c. Can help firms reduce costs quickly and become more profitable
in a short period of time.
d. Has painful consequences for those who lose their jobs and for
morale among remaining employees
e. Effective managers will promote optimism and positive thinking
and minimize criticism and fault-finding after downsizing occurs.
PPT 6.16 V. Directing
1. Directing is motivating and leading employees to achieve
organizational objectives. Managers tell their employees what to do
and when to do it using deadlines, then encourage them to do their
work.
2. All managers are involved in directing, but it is especially important
to lower-level managers.
3. Directing also involves determining and administering rewards and
recognition.
4. Managers motivate employees with incentives and in allowing
employees to participate. Recognition and appreciation are often
the best motivators.
PPT 6.17 VI. Controlling
1. Controlling is the process of evaluating and correcting activities to
keep the organization on course.
2. Controlling involves five activities:
a. Measuring performance.
b. Comparing present performance with standards or objectives.
c. Identifying deviations from the standards.
PPT 1.26
d. Investigating the causes of deviations.
e. Taking corrective action when necessary.
3. Controlling and planning are closely linked: Planning establishes
PPT 1.27
goals and standards for performance, while controlling helps firms
ensure that performance toward those goals is achieved.
4. The control process also helps managers deal with problems arising
from outside of the firm.
Business
LO 6-3 Distinguish among three levels of management and the concerns Key Terms:
of managers at each level.
 Top managers
 Types of Management  Middle managers
o Levels of Management  First-line managers
o Areas of Management
PPT 6.18 III. Types of Management

A. Levels of Management (Figure 6.2)
1. There are usually three levels of management, which form a
pyramid—top management, middle management, and front-line or
supervisory management. (Figure 6.3)
a. Managers at all three levels perform all five management
functions, but the amount of time they spend on each function
varies.
b. For top managers, the most important management function is
planning.
c. For middle managers, the most consuming function is
organizing.
d. For front-line managers, the most consuming function is
PPT 6.19 controlling.
PPT 6.20 2. Top managers include the president, the chief executive officer, the
chief financial officer, the chief operations officer, and other top
executives, such as the chief privacy officer, who have overall
responsibility for the organization.
a. In publicly owned corporations, the CEO’s boss is the board of
directors.
b. Top managers also represent their company to the public and to
government regulators.
PPT 6.22
c. Top managers generally have many years of experience and
command top salaries. In addition to top salaries, top
management typically gets bonuses, long-term incentive awards,
stock, and stock options. (Table 6.1)
1) Executive compensation has been criticized
2) Compensation committees and boards of directors are now
PPT 6.21 seeking ways to keep compensation commensurate with
performance.
a) Not all managers receive high compensation. In 2012
Facebook CEO Mark Zuckerberg announced he would go
from his current salary of $600,000 to $1 per year.
Business
d. Workforce diversity is also an important issue in today’s

corporations, and effective managers have found that diversity is
good for workers and for the bottom line.
1) A diverse workforce is better at making decisions regarding
issues related to consumer diversity.
2) The five rules of successful diversity recruiting include get
PPT 6.23
everyone involved, showcase your diversity, work with
diversity groups within your community, spend money, and
sell, sell, sell—and measure your return on investment.
(Table 6.2)
PPT 6.24 3. Middle managers are responsible for tactical planning to implement
the general guidelines established by top management (e.g., plant
managers, division managers, and department managers).
a. Responsibility is more narrowly focused than top managers
b. Middle managers are involved in the specific operations of the
organization and spend more time organizing than other
managers.
c. The ranks of middle managers have been shrinking as more
companies downsize to be more productive.
PPT 6.25 4. First-line managers supervise workers and day-to-day operations of
the organization.
a. They spend most of their time directing and controlling.
b. Foremen, supervisors, and office managers are examples of first-
PPT 6.26 line management.
B. Areas of Management (Table 6.3)
connect 1. At each level of management, managers specialize in the areas of
Need help finance, production and operations, human resources, marketing,
understanding and administration.
Leaders vs. 2. Financial manager focuses on obtaining the funds needed for the
Managers? Visit successful operation of the organization and using those funds to
your Connect ebook further organizational goals.
video tab for a brief 3. Production and operations manager develops and administers the
animated activities involved in transforming resources into goods, services, and
explanation. ideas ready for the marketplace.
4. Human resources manager handles the staffing function and deals
with employees in a formalized manner.
5. Marketing manager is responsible for planning, pricing, and
promoting products and making them available to customers through
distribution.
6. Information technology (IT) manager is responsible for
PPT 6.27 implementing, maintaining, and controlling technology applications
in business, such as computer networks.
7. Administrative manager manages an entire business or a major
segment of a business; does not specialize in a particular function.
Business
LO 6-4 Specify the skills managers need in order to be successful. Key Terms:
 Skills Needed by Managers  Technical expertise

o Technical Expertise  Conceptual skills
o Conceptual Skills  Analytical skills
o Analytical Skills  Human relations skills
o Human Relations Skills  Leadership
 Leadership
o Employee Empowerment
PPT 6.28 IV. Skills Needed by Managers (Table 6.4)
A. Managers are typically evaluated using the metrics of how effective and
efficient they are. Necessary skills include technical expertise,
conceptual skills, analytical skills, and human relations skills.
B. Technical expertise, the specialized knowledge and training needed to
PPT 6.29 perform jobs that are related to particular areas of management.
1. Technical skills are most needed by first-line managers and are
least critical to top-level managers.
C. Conceptual skills, the ability to think in abstract terms and to see how
parts fit together to form the whole.
1. Top management must be able to evaluate continually where
the company will be in the future.
2. Conceptual skills also involve the ability to think creatively.
PPT 6.31 D. Analytical skills refer to the ability to identify relevant issues, recognize
their importance, understand the relationship between them, and
perceive the underlying causes of a situation.
1. All managers need to think logically, but this skill is probably
most important to the success of top-level managers.
E. People skills, or human relations skills, are the ability to deal with
people, both inside and outside the organization.
1. People skills are especially important in hospitals, airline
companies, banks, and other organizations that provide service.
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PPT 6.32 V. Leadership is the ability to influence employees to work toward

organizational goals.
A. There are three basic styles of leadership.
PPT 6.33
1. Autocratic leaders make all the decisions and then tell employees
what must be done and how to do it.
2. Democratic leaders allow their employees to get involved in
decisions. Employees involved in decision making generally require
less supervision.
3. Free-rein leaders let their employees work without much
interference.
B. The effectiveness of each leadership style depends on several factors.
1. An autocratic style is generally needed to stimulate unskilled,
unmotivated employees.
2. Highly skilled, trained, and motivated employees may respond better
to democratic or free-rein leaders.
3. Other considerations are the manager’s abilities and the situation
itself.
a. When a situation requires a quick decision, for example, an
autocratic style of leadership may be best because the manager
does not have to consider input from a lot of people.
4. The “best” style depends on specific circumstances, and effective
managers strive to adapt their style as warranted.
C. Tips for successful leadership (Table 6.5)
1. Some of the “best” managers are listed on Fortune magazine’s
America’s Most Admired Companies and their CEOs.
D. Authentic Leadership
1. A bit different from the other three leadership styles because it is not
exclusive
2. Both democratic and free-rein leaders could qualify as authentic
leaders
PPT 6.34
3. Passionate about the goals and mission of the company, display
corporate values in the workplace, and form long-term relationships
with stakeholders
4. Kim Jordan of New Belgium Brewing is an authentic leader
Business
PPT 6.36 E. Employee empowerment occurs when employees are provided with the
ability to take on responsibilities and make decisions about their jobs
1. Participative corporate culture has been found to be beneficial
because employees feel like they are taking an active role in the
firm’s success
2. Leaders must adopt systems that support an employee’s ability to
provide input and feedback on company decisions
3. Manager should be trained in ways to empower employees to make
decisions even in challenging situations in which the right decision
may not be so clear
PPT 6.37 F. Leadership in Teams
1. In today’s business world, decisions made by teams are becoming the
norm
2. An effective way for encouraging employee empowerment
3. Decision making in teams is collective
a. Most effective teams are when all employees are encouraged to
contribute their ideas and recommendations
4. Common for more outspoken employees to dominate the team and
engage in groupthink, in which team members go with the majority
rather than what they think is the right decision
a. Training employees how to listen to one another and provide
relevant feedback can help to prevent these challenges
Business
LO 6-5 Summarize the systematic approach to decision making used by Key Terms:
many business managers.
 Agenda
 Decision Making  Networking
o Recognizing and Defining the Decision Situation
o Developing Options
o Analyzing Options
o Selecting the Best Option
o Implementing the Decision
o Monitoring the Consequences
 Management in Practice
PPT 6.38 VI. Decision Making: Decision making is important in all management functions
and all levels, whether the decisions are on a strategic, tactical, or
operational level. A systematic approach includes a six-step process. (Figure
6.4)
PPT 6.39 A. Recognizing and Defining the Decision Situation
1. The first step in decision making is recognizing and defining the
situation—whether the situation is positive or negative.
2. Situations calling for small-scale decisions often occur without
warning; situations requiring large-scale decisions generally occur
after some warning signals.
3. Once a situation has been recognized, managers must define it.
PPT 6.40 B. Developing Options
1. The next step is to develop a list of possible courses of action.
2. Creativity is very important.
C. Analyzing Options
1. Next, managers should analyze the practicality and appropriateness
of each option.
2. When assessing appropriateness, a decision maker should consider
whether the proposed option adequately addresses the situation.
D. Selecting the Best Option
PPT 6.41
1. Selection is often a subjective procedure because many situations do
not lend themselves to mathematical analysis.
2. It may be possible to select a combination of several options.
Business
E. Implementing the Decision

1. Implementation can be fairly simple or very complex, depending on
the action.
2. Managers should be ready to deal with unexpected consequences.
F. Monitoring the Consequences
1. Without proper monitoring, the consequences of decisions may not
be known quickly enough to make efficient changes.
2. If the desired result was not achieved, managers may discover that
the situation was incorrectly defined, or the decision was good even
though the desired result has not yet shown up, or that
implementation was flawed.
VII. Management in Practice
PPT 6.43 A. Management is not a cut-and-dried process.

B. John P. Kotter says that management functions can be condensed into
two basic activities:
1. Figuring out what to do despite uncertainty, great diversity, and an
enormous amount of potentially relevant information.
2. Getting things done by a large and diverse set of people without
having direct control over most of them.
C. Managers spend as much as 75 percent of their time working with
others.
1. Managers spend a lot of time establishing and updating an agenda
of vague and specific items that pertain to short-term goals and
PPT 6.44
long-term objectives.
2. Managers also spend a lot of time networking—building
relationships and sharing information with colleagues.
1. Networks are not limited to immediate subordinates and bosses;
they include other people in the company as well as customers,
suppliers, and friends.
PPT 6.46 2. Networking helps managers carry out their responsibilities.
3. Websites like LinkedIn are helping managers and employees
network with one another to achieve their professional goals.
D. Managers spend a great deal of time confronting the complex and
PPT 6.45
difficult challenges facing business today.
1. Rapid changing technology, increased scrutiny of individual and
corporate ethics and social responsibility, impact of social media,
changing nature of workforce, new laws and regulations, increased
global competition, declining education standards, and making the
best use of time
E. It is only through creativity and imagination that managers can make
effective decisions that benefit their organizations.
Business
LO 6-6 Recommend a new strategy to revive a struggling business. Key Terms:
PPT 6.47 VIII. Solve the Dilemma—Making Infinity Computers Competitive

A. Infinity Computers Inc. produces notebook computers, which sell
through direct mail catalog companies under the Infinity name and in
some retail computer stores under their private brand name
1. Products are not significantly different from competitors’
2. Do not have extra product-enhancing features
3. Very price competitive
4. Strength from the company’s CEO/president George Anderson and
the highly motivated, loyal staff
5. Weakness from having too many employees and too great a reliance
on 1 product
PPT 6.48 B. The strategies that initially made the firm successful are no longer
working
1. Reorganize the company to make it more responsive and
competitive and to cut costs
2. New technological developments and current competitive conditions
could eliminate Infinity.
C. Discussion questions:
1. Evaluate Infinity’s current situation and analyze its strengths and
weaknesses.
Infinity’s strengths include the competitive price of its products, the
leadership abilities of its CEO, along with the loyalty and motivation
of its employees. Its weaknesses are its tendency to follow its
competitors instead of innovating, its overcapacity in terms of
workforce, and its reliance on a single product.
2. Evaluate the opportunities for Infinity, including using its current
strategy, and propose alternative strategies.
An opportunity for Infinity may be to create a differentiated
notebook with special features at a lower price than its competitors.
Infinity could also rely on the loyalty and motivation of its employees
to offer outstanding customer services.
3. Suggest a plan for Infinity to compete successfully over the next 10
years.
Responses will vary, but students should provide the kernel of a
strategic plan including such sections as objectives, means to
achieve the objectives, and measures of results.
Business
BOXED TEXT DISCUSSION QUESTIONS
ENTER THE WORLD OF BUSINESS—The Importance of Middle Managers
Middle managers are responsible for tactical planning and implementing top management’s guidelines.
Middle managers are expected to work across departments, put in long hours, and often remain available
outside of work. Unfortunately, many middle managers feel that while they have much responsibility, they
have very little authority. Despite their often hectic work schedules, 44 percent of middle managers in one
study reported that they were satisfied with their work/life balance, compared with 70 percent of
nonmanagers. There are different steps middle managers can take to improve their careers and move into
top leadership positions. Suggestions include thinking big, asking for input, being flexible to new situations,
clearly communicating between front-line employees and managers, and showing empathy for employees.
1. What are the challenges middle managers commonly face?
Middle managers are expected to work across departments, put in long hours, and often remain
available outside of work. Many middle managers feel that while they have much responsibility, they
have very little authority. When cutbacks occur within an organization, middle managers are often the
ones who are eliminated.
2. What are some good characteristics for effective middle managers to have?
There are different steps middle managers can take to improve their careers and move into top
leadership positions. Suggestions include thinking big, asking for input, being flexible to new situations,
clearly communicating between front-line employees and managers, and showing empathy for
employees.
3. Why are the job functions of middle management important to organizational success?
Although it is possible to eliminate the middle manager position, it is impossible to eliminate their
functions—including communication, team building, and tactical planning—which are essential to
leading the firm to success.
GOING GREEN—Ken Grossman’s Management of Sierra Nevada’s Growth
Sierra Nevada is now building another brewery in Mills River, North Carolina. This is a challenge to
Grossman’s management style because he is very involved in the day-to-day operations of the brewery. The
decision to expand was not merely driven by economic impetus, but also by environmental concerns. The
new brewery will reduce the emissions the company creates in distribution. To know people in the company
on a personal level and establishes a mutual loyalty.
Business
1. Describe some of the managerial skills that Ken Grossman possesses in successfully leading Sierra
Nevada.
He is very involved in the day-to-day operations of the brewery. Walking around, talking to the
company’s 650 employees every day, and ensuring the quality of the brews are just a few of his
managerial responsibilities. He encourages employees to think like owners and takes a group of
employees out to lunch with him every other week.
2. How are the breweries increasing the firm’s sustainability?
The new brewery will reduce the emissions the company creates in distribution. In addition, Grossman
has installed 10,000 solar panels on the brewery in Chico, the largest private installation in the country,
which accounts for 80 percent of its energy usage.
3. How does Ken Grossman motivate his employees?
It is not all business for Grossman, however. He encourages employees to think like owners and takes a
group of employees out to lunch with him every other week. This allows him to know people in the
company on a personal level and establishes a mutual loyalty. Employees also receive subsidized meals
at the brewery restaurant and day care, as well as a free health clinic for employees and their families.
RESPONDING TO BUSINESS CHALLENGES—Managers Discover Benefits of Feminine Traits for Leadership
In the past, successful leadership has often been associated with authoritative traits such as decisiveness,
resilience, and confidence. The leadership landscape has been changing. Recurring scandals involving leaders
and the widespread use of technology has increased the need for leadership traits such as integrity. One
study showed that traits increasingly desired in leaders include patience, flexibility, empathy, vulnerability,
inclusiveness, generosity, and balance. While assertiveness and ambition—considered more masculine
traits—remain important, leaders who have an emotional connection to their work, good listening skills, and
generosity are now thought to be important for a successful firm. Leaders who exhibit these traits have been
found to make more thoughtful decisions and have better relationships with their employees and customers.
1. Why are some characteristics traditionally associated as feminine considered important for
leadership?
The leadership landscape has been changing. Recurring scandals involving leaders and the widespread
use of technology has increased the need for leadership traits such as integrity. Leaders who have an
emotional connection to their work, good listening skills, and generosity are now thought to be
important for a successful firm.
Business
2. Why might a lack of empathy create a significant disadvantage in leadership?
Traits increasingly desired in leaders include patience, flexibility, empathy, vulnerability, inclusiveness,
generosity, and balance. A lack of empathy means the leader is less likely to make thoughtful decisions or
have good relationships with their employees and customers which can hinder company operations and
profits.
3. Describe ways in which Oprah Winfrey and John Mackey of Whole Foods demonstrate strong
leadership characteristics.
Oprah Winfrey, who has been described as a demanding but caring boss, and Whole Foods CEO John
Mackey, who donates $100,000 every year toward a fund to help employees with personal struggles,
have come to be highly admired.
SUPPLEMENTAL LECTURE
The Mystique of Leadership
The textbook defines leadership as the “ability to influence employees to work toward organizational goals.”
The text also indicates that there are different kinds of leadership styles that are effective at particular times
and places and in the hands of certain leaders.
There is a mystique about the very word leadership. Leadership abilities may very well be in the eye of the
beholder. Why are some individuals considered to be leaders? These individuals exhibit charisma, courage,
charm, intelligence, and inspiration. Yet, people very close to the leader may know of many weaknesses
possessed by the distinguished leader.
Prime Minister Winston Churchill is an example of a leader who was able to obtain the respect and loyalty of
the British people during the six long years of war. Churchill had the ability to perk up the spirits of the
people; his speeches, broadcast over the BBC, are considered classics. In Churchill’s words, there was a
strong, quiet confidence that Great Britain would prevail against all enemies and that this would be for all
time referred to as “her finest hour.”
Despite the horrendous burden of government weighing heavily on his shoulders, Churchill found time to be
out among the people and when he did so, he was an inspirational model for those lucky Britons who
actually saw him. Winston Churchill appeared to be the perfect example of a leader.
John Colville was a personal secretary to Churchill for a long period, including the years from 1939 to 1945,
during World War II. He kept a diary during those years, and in 1985 Colville’s notes were published by W. W.
Norton and Company as the Fringes of Power, 10 Downing Street Diaries 1939-1955. Colville’s references to
Churchill make his diary compelling reading.
Business
Colville was aware of how popular Churchill was with the public. It should be noted that Colville admired
Churchill. Nevertheless, Colville witnessed—at extremely close range—some traits that showed Churchill to
be very much a normal human with normal failings. In fact, some of Churchill’s behavior would appear to be
the opposite of that which would influence others to work toward the achievement of organizational goals.
For example, there were times when Churchill could be extremely inconsiderate of those who worked for
him. Churchill often worked until 2:00 or 3:00 in the morning and expected his staff to do the same. There is
the example in which Churchill told his staff that they would need to rise at 5:00 in the morning so the prime
minister and his party could be off to their next assignment by 7:00. The staff arose as told, but the prime
minister proceeded to sleep very late without giving so much as a fleeting thought to notifying his staff of the
change in his plans, causing his entire staff to lose some three hours of sleep. If the prime minister came to
realize that he had been inconsiderate, he would never apologize. Instead, he would be overly friendly to
those he had wronged; they were supposed to get the message.
Churchill, according to Colville, could be very petty and would hold grudges against political enemies far
beyond normal lengths of time. In private conversation, Churchill would say frightful things about those
political foes. If an idea came from the wrong person, Churchill would immediately criticize it. There were
times when his staff and even Mrs. Churchill had to step in and show the prime minister the error of his
ways.
In the early days of his prime ministership, Churchill got personally involved in far too many things, sending
memos to numerous people in the government and the military on small matters that a good sergeant could
have taken care of. There were days when the staff surrounding Churchill felt that the government was
operating in a well-advanced state of confusion because of Churchill’s apparent lack of administrative skill.
Some felt that Churchill drank too much.
Despite the incidents that Colville reveals in his masterful diary, Churchill is still classified by most historians
as a great leader. And Colville—despite all he knows about the real Churchill—also concludes that he was a
truly great man. The mystery of the secret of leadership remains. How many faults can one possess and still
be effective at leading others? And can one be an effective leader in certain times and places? It should be
noted that shortly after the war ended, the British voted against Churchill’s party, and he left his position of
prime minister.
1. Can you think of other well-known individuals who were perceived as great leaders, persons also
known for personal faults or frailties that could have led to a loss of leadership? What made these
individuals great leaders?
Student responses will vary.
2. Which leadership style did the great leaders mentioned above exhibit? Autocratic style? Democratic
style? Free-rein style?
Responses will vary depending on what the students wrote for Question #1. Churchill’s style would most
likely be autocratic.
Business
CONTROVERSIAL ISSUE
Conflicting Communications of Managers
Managers need good human relations, or people, skills. They must be able to communicate goals, and they
have to understand their employees’ needs so that they can motivate them to perform. Managers must also
provide appropriate leadership.
Managers are not always very good at their jobs. Usually, poor management results from poor
communication or interpersonal skills. Typical of some employees’ experience is this one, told by David
Manning, a college student who worked as a radio announcer for a small station in a college town. The
manager-owner of the radio station, Greg Smith, had often told the members of his staff: “I want you to
know that my door is always open. Come in anytime if you have a suggestion to make our station the best on
the air. Come see me.”
The young announcer took the manager at his word. David noticed that the music staff gave the announcer a
list of numbers (such as 88745, 98432, 72341, etc.) of CDs to be pulled from the files and played on a classical
music program. The announcer observed that it would take the music staff just a few more seconds to type
after each number a notation, such as “Symphony #4 by Beethoven, Chicago Symphony Orchestra, Bruno
Walter conducting.” Such notations would save David (and other announcers) a lot of time and would make
the classical music program sound much better on the air.
David decided to make his suggestion to the manager. He went through the manager’s “open door” and
presented his ideas. Greg Smith, the manager, replied: “I don’t want you kids coming in here complaining. If
you can’t do the work, then quit. Your nitwit ideas are of no value to my radio station.” The manager went on
and on for several minutes. At the conclusion of his tirade, the manager said to David: “My door is always
open; come back and see me with an idea anytime!”
Needless to say, David never returned to the manager’s office with any more suggestions.
1. Did the manager give mixed signals to his employees? Why?
The manager definitely gave mixed signals to his employees. He probably wanted his leadership style to
appear democratic, but he had no idea how to do it. He didn’t want to give up control, even though he
wanted to appear to be a fair manager.
2. Can managers improve their management styles? How?
Students’ answers may vary.
Business
S O Y O U W A N T T O B E A M A N A G E R—W H A T K I N D O F
M A N A G E R D O Y O U W A N T T O B E?
What factors are leading to the increasing difficulty of management jobs?
The requirements for management jobs become more demanding with every passing year—with the speed
of technology and communication increasing by the day, and the stress of global commerce increasing
pressures to perform. There is also the consideration of restructuring and downsizing, which has changed
where jobs are available and has in some cases reduced the number of available positions.
CHECK YOUR PROGRESS
1. Why is management so important, and what is its purpose?
Management is the process of coordinating human, physical, and financial resources to achieve an
organization’s objectives. Management is important because people in an organization must work
together to achieve some stated or implied objective. Management takes place in any organization
calling for the coordination of resources.
2. Explain why the American Heart Association would need management, even though its goal is not
profit-related.
All organizations, whether profit or nonprofit organizations, are involved with the process of coordinating
human, physical, and financial resources to achieve their objectives. Managers and employees of
nonprofit organizations work together to achieve the objectives of their organizations.
3. Why must a company have financial resources before it can use human and physical resources?
An organization must have financial resources in order to purchase human resources (hire people) and to
purchase physical resources.
4. Name the five functions of management and briefly describe each function.
The five functions of management include planning, organizing, staffing, directing, and controlling.
Planning is the process of selecting a course of action to achieve organizational objectives. Organizing
consists of structuring all resources and activities to accomplish objectives in an efficient and effective
manner. Staffing is hiring people to carry out the work of the organization. Directing is motivating and
leading employees to achieve organizational objectives. Controlling is evaluating and correcting activities
to keep the organization on course.
Business
5. Identify the three levels of management. What is the focus of managers at each level?
The three levels of management include top management, middle management, and first-line
management. Top management includes the president and other top executives who have overall
responsibility for the organization. Middle management includes plant managers, division managers, and
other managers who have a narrower focus under top managers. First-line management includes all the
managers who supervise workers. These managers are involved in the everyday operations of the
organization.
6. In what areas can managers specialize? From what area do top managers typically come?
The areas of management include financial management, production and operations management,
human resources (personnel) management, marketing management, information technology
management, and administrative management. Financial managers deal primarily with an organization’s
financial resources. Production and operations managers are concerned with the transformation of an
organization’s resources into goods, services, and ideas. Human resources managers deal with
employees in a formalized manner as related to hiring, training, and benefits. Marketing managers are
responsible for planning, pricing, and promoting products and making them available to customers.
Information technology managers deal primarily with establishing, maintaining, and controlling
computer networks. Administrative managers do not specialize in any particular area but manage an
entire business or major segment of a business.
Many top executives come from financial management, production and operations management, or
marketing management. Most top managers are actually administrative managers.
7. What skills do managers need? Give examples of how managers use these skills to do their jobs.
Skills needed by managers include leadership, technical expertise, conceptual skills, analytical skills, and
human relations skills. Leadership is the ability to influence and motivate employees to work toward the
achievement of organizational goals. Technical expertise is the specialized knowledge needed to perform
a job, such as managing an auto production line. Conceptual skills are the ability to think in abstract
terms so that a manager can fit parts together to form a whole perspective of a business operation.
Analytical skills are the ability to identify relevant issues and recognize their importance, understand the
relationships between them, and perceive their underlying causes. Human relations skills involve dealing
with people both inside and outside the organization.
8. What are three styles of leadership? Describe situations in which each style would be appropriate.
There are three styles of leadership: autocratic, democratic, and free-rein. Autocratic leaders make all
decisions and then tell employees what must be done and how to do it. Autocratic leaders work best
when dealing with lower-level employees who are poorly motivated and require more supervision to
accomplish the task.
Business
Democratic leaders allow their employees to get involved in decision making. Democratic leaders work
well in organizations that allow people to participate in decisions, such as accounting firms, consulting
agencies, middle- and upper-management areas, or corporations.
Free-rein leaders let their employees work without much interference. Free-rein leaders work well in
research and development firms where employees are highly educated and need freedom to conduct
research projects.
9. Explain the steps in the decision-making process.
Decision making is a six-step process that occurs at all management levels. The first step involves
recognizing and defining the situation. Step two involves developing possible courses of action, both
standard and creative ones. Step three involves analyzing the feasibility, appropriateness, and
consequences of each option. Step four involves selecting the best option from the list of options. The
decision is implemented in step five. Step six requires the monitoring of the decision’s consequences.
These steps in decision making should be viewed only as a broad framework to help people in their
approaches to decision making.
10. What is the mathematical formula for perfect management? What do managers spend most of their
time doing?
There is no mathematical formula for perfect management. Most management decisions are largely
subjective.
Most managers spend as much as 75 percent of their time working with others. They also spend a lot of
time establishing and updating an agenda of goals, networking with their colleagues, and confronting the
complex and difficult challenges in the business world today.
GET INVOLVED
1. Give examples of the activities that each of the following managers might be involved in if he or she
worked for the Coca-Cola Company:
 Financial manager
 Production and operations manager
 Personnel manager
 Marketing manager
 Administrative manager
 Information technology manager
 Foreman
Business
Sample student answer (answers will vary):
 Financial manager: Project income and expenses over Coca-Cola’s next quarter; project income and
expenses for the next year; investigate feasibility of new Coca-Cola projects and investments from a
financial standpoint; collect data on company finances and operations; develop financial and operational
reports; determine long-term and short-term financing needs for Coca-Cola and its different subsidiaries;
analyze the financial contributions of Coca-Cola’s product lines to ensure and provide recommendations
to top management.
 Production and operations manager: Develop business plans to support objectives of various product
lines; purchase necessary supplies for product development; plan and design new plants and Coca-Cola
production facilities; improve production and operational performance efficiency at different facilities;
ensure that Coca-Cola products meets relevant quality standards.
 Personnel manager: Engage in the recruiting of new employees; interview and hire qualified individuals
to be a part of Coca-Cola’s various teams; oversee Coca-Cola’s performance appraisal system; properly
store and retrieve personnel files; oversee Coca-Cola benefit systems; ensure confidentiality of employee
information.
 Marketing manager: Plan the promotion of new Coca-Cola products; select relevant media for
promotional campaigns; appropriate the costs of advertising and other promotional campaigns; develop
pricing objectives of Coca-Cola products; determine effectiveness of pricing strategies; determine
product features; aid in product development and test marketing; oversee commercialization of new
Coca-Cola products; delete products that do not reach certain profit objectives.
 Administrative manager: Oversee the work performance of one of Coca-Cola’s companies; collect and
distribute information throughout the company; manage quality and cost control of the company;
frequently meet with managers from the different departments to go over planning and forecasting;
direct the different administrative functions within the company.
 IT manager: Create safeguards to protect company information in computer systems from unauthorized
sources; create a streamlined process for people inside the company who have legitimate reasons to use
the system; create contingency plans for protecting the system’s data during a crisis situation; develop
efficient methods to communicate to global employees, partners, and suppliers though Coca-Cola’s IT
system; provide support for training to help employees understand how to use the system.
 Foreman: Supervise and direct workers in a particular department or business segment; implement plans
by top and middle managers; evaluate performance of Coca-Cola employees; develop plans for
correcting performance shortcomings; support employees in their daily operations.
Business
2. Interview a small sample of managers, attempting to include representatives from all three levels and
all areas of management. Discuss their daily activities and relate these activities to the management
functions of planning, organizing, staffing, directing, and controlling. What skills do the managers say
they need to carry out their tasks?
Students’ answers will vary depending upon the sample of managers they choose.
3. You are a manager of a firm that manufactures conventional ovens. Over the past several years, sales
of many of your products have declined; this year your losses may be quite large. Using the steps of
the decision-making process, briefly describe how you arrive at a strategy for correcting the situation.
First, students will have to recognize and define the decision situation. Students should recognize that
the problem is that sales of conventional ovens have declined. They might define the decision situation
as something like, “Investigate options to reduce the losses from decreasing sales of conventional
ovens.” The second step is to develop options to resolve the situation. As part of this process, students
might choose to launch an investigation to find out why sales have declined. Are there new substitutes
for the conventional overs that consumers are choosing instead? Depending upon the why, students
might come up with alternatives such as investigate ways to upgrade the conventional oven, engage in
heavier promotion to increase awareness of the benefits of the conventional oven, look into changing
the current pricing strategy, etc. They must then analyze the options, the third step of the process. After
analyzing the options, including the advantages and disadvantages of each, students will choose the
option they think is best. They should provide support for why they feel a particular option is the best
choice. Then they must implement the decision. Students should be detailed regarding how they plan on
implementing the proposed solution. Afterwards, they should state how they plan to monitor the
consequences of the decision. For instance, they might investigate whether sales are beginning to rise
again, whether sales are meeting the company’s sales goals, etc.
BUILD YOUR SKILLS
Suggested Answer Key
1. planning (selecting a course of action to achieve organizational objectives)
organizing (structuring resources and activities to accomplish objectives in an efficient and effective
manner)
directing (motivating and leading employees to achieve organizational objectives)
controlling (evaluating and correcting activities to keep the organization on course)
Business
2. planning (you will need this function to get your group headed in the right direction)
organizing (trying to get this group of employees to carry out the plans will be a challenge)
directing (motivating and leading employees to achieve objectives will be a high priority)
controlling (you will, no doubt, have to work closely with this group until you can develop them into a
group of self-starters)
3. planning (deciding how to accomplish the new goal of making the change)
organizing (you will need to determine what new relationships should be developed in order to
successfully implement the change)
directing (you have already used your influence to get your group to move toward making the change,
and will undoubtedly need to do more throughout the change process)
controlling (you will need to monitor what’s happening to make sure things stay on track)
4. directing (you will need to use your leading skills [influence] to get what your department needs)
controlling (the budgeting process is one tool used in controlling)
5. staffing (hiring the right people to carry out the work of the organization)
controlling (your monitoring of the performance of the new employee led to your making needed
corrections—discipline and eventually discharge—and your new selection system helps to ensure that
your work group will achieve its objectives)
BUILD YOUR BUSINESS PLAN
Commence a discussion on what leadership skills are necessary to be an effective leader. What national
figures (government official or corporate figure) do students believe are the best example of a true leader? If
students have a hard time thinking of someone, use Jack Welch of GE as an example. Jack Welch led GE for
20 years utilizing the strategy of retaining only GE divisions that are #1 or #2 in the market, and growing the
company by an aggressive acquisition strategy. Jack instituted creative and revolutionary ideas such as Six
Sigma, the 70/20/10 employee evaluation process, and an open dialog within the management structure.
While it may be difficult for students to relate to Welch’s successes, all students can relate to bosses who
have exhibited strong leadership skills. Query students on what those leadership skills were and how their
bosses were able to command and not demand respect.
Business
S E E F O R Y O U R S E L F V I D E O C A S E:
PLANNING DRIVES THE SUCCESS OF FORD FUSION
Case Overview
The release of the Ford Fusion was the culmination of six years of planning, implementation, and monitoring.
Top managers established the mission for the new vehicle as “the most talked about car of 2012.” The three
goals for driving this strategy were to (1) become the company’s highest volume car in order to gain market
share, (2) offer customers unparalleled levels of choice, and (3) have green offerings. When Alan Mulally
became CEO, he instituted the One Ford Strategy. The One Ford Strategy unites the operations of the
company through four clear objectives. The One Ford Plan facilitated the collaboration between marketing
and product development for the Ford Fusion project. This ensured the final product was cohesive both in
design and market positioning. This collaboration was especially important to the execution of tactical plans
for this project. It is not enough to simply create plans—measuring the effects of a plan is imperative to
successful execution. Ford uses a system called Launch Readiness, which began about two years before the
launch with phase 1 or LR1. The operational part of planning is encompassed by LR2, the next phase in
Launch Readiness. This phase precedes the Final Status Review. Each of these phases serves as an overall
control process for the entire project, and all phases are considered to be milestones that determine the
project’s progress. The results of the Ford Fusion launch exceeded the company’s aggressive expectations,
and these significant results can be attributed the level of planning the company engaged in.
1. How did Ford use strategic and tactical planning in its launch of the Ford Fusion?
The CEO of Ford had instituted the One Ford Strategy to unite the operations of the company through
four clear objectives. The overall mission of making the Ford Fusion the most talked about car of 2012
guided the strategic plan and formation of three long-range plans ((1) become the company’s highest
volume car in order to gain market share, (2) offer customers unparalleled levels of choice, and (3) have
green offerings). The tactical plans focused on suppliers, design, parts needed, and marketing plans
(channels that would be used, which audience would be targeted, and the determination of
communication objectives).
2. How did the companywide One Ford Plan contribute to the project-specific Launch Readiness plan?
Ford’s marketing department measured consumer interest months before the Fusion was introduced
onto the market by holding events and using “Build and Price” on Ford.com. This allowed customers to
log on to the website and choose features, colors, and prices of the new vehicle. The company measured
customer interest by determining how many people logged onto to the website and used Build and Price.
The operational part of planning is encompassed by LR2, the next phase in Launch Readiness. This phase
focuses on execution and is informed by the previous phase. Details on the specifics of plans are
established and refined, such as what events the company will attend and how they will use Facebook.
Business
3. What was the role of implementation in the success of the Ford Fusion?
The Ford Fusion became one of the most popular vehicles in the mid-sized sedan segment because it
offered consumers more luxury and choices than were previously available. They were able to choose
from four different types of engines and two types of transmissions (6-speed automatic or manual). The
Fusion also propelled the company toward one of its long-term strategic goals to offer economically
friendly vehicles, which Ford has continued to introduce to the market
TEAM EXERCISE
Students will form groups and assign the responsibility of locating examples of crisis management
implementation for companies dealing with natural disasters (explosions, fires, earthquakes, etc.),
technology disasters (viruses, plane crashes, compromised customer data, etc.), or ethical or legal disasters.
They should ask themselves the following questions: How did these companies communicate with key
stakeholders? What measures did the company take to provide support to those involved in the crisis?
Report your findings to the class.
TERM PAPER OR PROJECT TOPICS
These topics may be assigned as individual or collaborative projects:
1. The Team Concept in Management

2. Management Training
3. The Importance of Computers for Modern Managers
4. Frederick Smith, CEO of Federal Express (or some other CEO)
5. Frederick Taylor, Father of Scientific Management
GUEST SPEAKER SUGGESTIONS
1. A professor or teacher to talk about careers in management.
2. A manager from a local firm representing top-level management, middle management, or first-line
management.
Business
TEACHING SUGGESTIONS
1. Use the “Lecture Outline and Notes” and PowerPoint slides to highlight the main points of the chapter.
2. Discuss the opening vignette and other boxed material. Use the “Boxed Text Discussion Questions” to
review some of this boxed material. Ask students how the boxed material relates to the major functions
of management, the three levels of management, and the skills managers need to be successful.
3. Go over the “Check Your Progress” in the textbook.
4. Divide the class into six teams. (Large sections may require more than six teams.) Using the “Build Your
Skills” exercise in the textbook, assign each team one managerial function. The team should decide on
some examples of activities for which the managers might be involved. Have a team representative
report or write the examples on the chalkboard.

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Instructor’s Manual - Chapter 6

Business A Changing World 10th Edition Ferrell Solutions Manual

Chapter 6: The Nature of Management

LEARN THE TERMS

agenda (p. 195) 191) networking (p. 195)

KEY TERMS AND DEFINITIONS

controlling The process of evaluating and correcting activities to keep the

directing Motivating and leading employees to achieve organizational objectives.

downsizing The elimination of a significant number of employees from an

leadership The ability to influence employees to work toward organizational goals.

management A process designed to achieve an organization’s objectives by using its

mission The statement of an organization’s fundamental purpose and basic

networking The building of relationships and sharing of information with colleagues

organizing The structuring of resources and activities to accomplish objectives in an

planning The process of determining the organization’s objectives and deciding

PowerPoint Slides Lecture Outline and Notes:

PPT 6.4 I. The Importance of Management

3. Financial resources pay for essential activities.

LO 6-2 Describe the major functions of management. Key Terms:

 Management Functions  Planning

2. An organization’s mission is the statement of an organization’s

1) Because tactical plans allow the organization to react to

PPT 6.18 III. Types of Management

d. Workforce diversity is also an important issue in today’s

 Skills Needed by Managers  Technical expertise

o Analytical Skills  Human relations skills

o Human Relations Skills  Leadership

PPT 6.32 V. Leadership is the ability to influence employees to work toward

E. Implementing the Decision

PPT 6.43 A. Management is not a cut-and-dried process.

LO 6-6 Recommend a new strategy to revive a struggling business. Key Terms:

PPT 6.47 VIII. Solve the Dilemma—Making Infinity Computers Competitive

BOXED TEXT DISCUSSION QUESTIONS

ENTER THE WORLD OF BUSINESS—The Importance of Middle Managers

1. What are the challenges middle managers commonly face?

GOING GREEN—Ken Grossman’s Management of Sierra Nevada’s Growth

2. How are the breweries increasing the firm’s sustainability?

3. How does Ken Grossman motivate his employees?

RESPONDING TO BUSINESS CHALLENGES—Managers Discover Benefits of Feminine Traits for Leadership

2. Why might a lack of empathy create a significant disadvantage in leadership?

The Mystique of Leadership

Student responses will vary.

Conflicting Communications of Managers

1. Did the manager give mixed signals to his employees? Why?

2. Can managers improve their management styles? How?

Students’ answers may vary.

What factors are leading to the increasing difficulty of management jobs?

CHECK YOUR PROGRESS

1. Why is management so important, and what is its purpose?

9. Explain the steps in the decision-making process.

Sample student answer (answers will vary):

BUILD YOUR SKILLS

Suggested Answer Key

1. planning (selecting a course of action to achieve organizational objectives)

directing (motivating and leading employees to achieve organizational objectives)

controlling (evaluating and correcting activities to keep the organization on course)

controlling (the budgeting process is one tool used in controlling)

BUILD YOUR BUSINESS PLAN

TERM PAPER OR PROJECT TOPICS

These topics may be assigned as individual or collaborative projects:

1. The Team Concept in Management

GUEST SPEAKER SUGGESTIONS