*Chapter

Seven

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Management and Leadership

McGraw-Hill/Irwin

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

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

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Managers’ Roles Are Evolving

LG1

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7-2

Organizing 3. Planning 2.1 7-3 .FOUR FUNCTIONS of MANAGEMENT * Four Functions of Management LG2 * 1. Leading 4. Controlling Study figure 7.

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

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

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

7-8 .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. short-term statements about what is to be done.STRATEGIC and TACTICAL PLANNING * Planning & Decision Making LG3 * • Strategic Planning -.The process of developing detailed. • Tactical Planning -. who is to do it and how.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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