Bài giảng Understanding Business - Chapter 7 Management and Leadership

Management and LeadershipChapter 07McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.Describe the changes occurring today in the management function.Describe the four functions of management.Relate the planning process and decision making to the accomplishment of company goals.Explain the differences between leaders and managers, and describe the various leadership styles.Summarize the five steps of the control function of management.LEARNING GOALSChapter Seven7-2Four Functionsof Management Management -- The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources.WHAT IS MANAGEMENT?LG17-3Managers’ Roles Are EvolvingYounger 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. TODAY’S MANAGERSLG17-4Four Functionsof Management PlanningOrganizingLeadingControllingFOUR FUNCTIONS of MANAGEMENTLG27-5Planning & Decision MakingVision -- More than a goal, it’s a broad explanation of why the organization exists and where it’s trying to go.Mission Statement -- Outlines the organization’s fundamental purposes. It includes: philosophy, self-concept; social responsibility; products/servicesSHARING the VISIONand MISSIONLG37-6Goals -- The broad, long-term accomplishments an organization wishes to attain.Objectives -- Specific, short-term statements detailing how to achieve the organization’s goals.SETTING GOALS and OBJECTIVESLG3Planning & Decision Making7-7What 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 planningTactical planningOperational planningContingency planningPLANNING ANSWERS FUNDAMENTAL QUESTIONSLG3Planning & Decision Making7-8Strategic 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.STRATEGIC and TACTICAL PLANNINGLG3Planning & Decision Making7-9Operational Planning -- The process of setting work standards and schedules necessary to implement the company’s tactical objectives.OPERATIONAL and CONTINGENCY PLANNINGContingency Planning -- The process of preparing alternative courses of action the firm can use if its primary plans don’t work out.LG3Planning & Decision Making7-10Decision Making: Finding the Best AlternativeDecision Making -- Choosing among two or more alternatives.DECISION MAKINGLG37-11Define the situation.Describe and collect needed information.Develop alternatives.Develop agreement among those involved.Decide which alternative is best.Do what is indicated.Determine whether the decision was a good one and follow up.RATIONAL DECISION-MAKING MODELLG3Decision Making: Finding the Best Alternative7-12Problem 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.PROBLEM SOLVINGLG3Decision Making: Finding the Best Alternative7-13Organizing: Creating a Unified SystemOrganization Chart -- A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom.ORGANIZATIONAL CHARTSLG47-14Top 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.MANAGEMENT LEVELSLG4Organizing: Creating a Unified System7-15Source: Fortune Magazine, www.fortune.com, accessed June 2011.AMERICA’S MOST POWERFUL FEMALE MANAGERSRankNameOrganization1Indra NooyiPepsiCo2Irene RosenfeldKraft Foods3Patricia WoertzArcher Daniel Midland (ADM)4Angela BralyWellPoint5Andrea JungAvon Products6Oprah WinfreyHarpo and OWN7Ellen KullmanDuPont8Ginni RommettyIBM9Ursula BurnsXerox10Carol BartzYahoo!Organizing: Creating a Unified SystemLG47-16Technical 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.MANAGERIAL SKILLSTasks and Skills at Different Levels of ManagementLG47-17Staffing: Getting and Keeping the Right PeopleStaffing -- Recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives.STAFFINGLG4Recruiting good employees is critical.Many people are not willing to work at companies unless they are treated well with fair pay.7-18Leading: 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.LEADERSHIPLG57-19Transparency -- The presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders.ACCOUNTABILITY through TRANSPARENCYLG5Leading: Providing Continuous Vision and Values.7-20Leadership StylesAutocratic 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.LEADERSHIP STYLESLG57-21Source: CIO Magazine, www.cio.com. NATURAL BORN LEADERS?Four Types of ExecutivesRationalistsHumanistsPoliticistsCulturists LG5Leadership Styles7-22Empowering WorkersProgressive 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.EMPOWERMENTLG57-23Source: Bloomberg BusinessWeek, www.businessweek.com. 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. WORK SMARTERHow to Ease Pressure on WorkersLG5Empowering Workers7-24Managing KnowledgeKnowledge 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.MANAGING KNOWLEDGELG57-25Controlling: Making Sure it WorksFIVE STEPS of CONTROLLINGLG67-26A Key Criterion for Measurement: Customer SatisfactionTraditional 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.MEASURING SUCCESSLG67-27