978-0073524597 Chapter 7 Part 1

Chapter 07 – Management and Leadership

7-1

Management and

Leadership

chapter

=

what’s new in this edition 7.3

brief chapter outline and learning goals 7.3

lecture outline and lecture notes 7.5

PowerPoint slide notes 7.37

lecture links 7.55

lecture link 7-1: BEWARE OF BAD BOSSES 7.57

lecture link 7-2: BEST BUSINESS LEADERS OF THE 20TH CENTURY 7.58

lecture link 7-3: WOMEN BRINGING HOME THE BACON 7.58

lecture link 7-4: THREE TYPES OF GREAT LEADERS 7.59

lecture link 7-5: REVISITING MISSION AT VICTORIA’S SECRET 7.60

lecture link 7-6: DECISION-MAKING TIPS 7.60

lecture link 7-7: THE 21ST-CENTURY CEO 7.61

lecture link 7-8: LEARNING MANAGEMENT SKILLS 7.61

lecture link 7-9: AMERICA’S UPCOMING MANAGEMENT GAP 7.63

lecture link 7-10: MANAGED TO DEATH: JAPAN’S ECONOMIC DECLINE 7.63

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7

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Chapter 07 – Management and Leadership

7-2

critical thinking exercises 7.64

critical thinking exercise 7-1: MANAGEMENT FUNCTIONS 7.64

critical thinking exercise 7-2: CAREER SWOT ANALYSIS 7.65

critical thinking exercise 7-3: CRISIS MANAGEMENT 7.66

critical thinking exercise 7-4: EVALUATING ALTERNATIVE COURSES 7.67

critical thinking exercise 7-5: THE MOST POWERFUL WOMEN IN BUSINESS 7.68

critical thinking exercise 7-6: RATE YOUR MANAGEMENT SKILLS 7.69

critical thinking exercise 7-7: ARE LEADERS BORN OR CAN THEY BE 7.70

TAUGHT?

critical thinking exercise 7-8: TRAITS OF LEADERS 7.71

bonus cases 7.72

bonus case 7-1: DEFENSEWEB EVALUATES A STRATEGIC EXPANSION 7.72

bonus case 7-2: WHEN EMPLOYEES MAKE THE DECISIONS 7.74

bonus case 7-3: DECISION MAKING: KLM 4805 7.76

what’s new in

this edition

additions to the 10th edition:

• Getting to Know John Mackey of Whole Foods Market

• Name That Company: Best Buy

• Reaching Beyond Our Borders: The Japanese Crisis, Terrorism, and American Business

• Social Media in Business: Using Social Media to Build Customer Support

• Video Case

revisions to the 10th edition:

• Text was revised to eliminate redundancy and tighten discussions.

• Statistical data and examples throughout the chapter were updated to reflect current information.

Chapter 07 – Management and Leadership

7-3

deletions from the 9th edition:

brief chapter outline

and learning goals

c h a p t e r 7

Management and Leadership

Getting To Know JOHN MACKEY of WHOLE FOODS MARKET

learning goal 1

I. MANAGERS’ ROLES ARE EVOLVING.

learning goal 2

II. THE FOUR FUNCTIONS OF MANAGEMENT

learning goal 3

III. PLANNING AND DECISION MAKING

A. Decision Making: Finding the Best Alternative.

learning goal 4

IV. ORGANIZING: CREATING A UNIFIED SYSTEM

A. Tasks and Skills at Different Levels of Management

B. Staffing: Getting and Keeping the Right People

Chapter 07 – Management and Leadership

7-4

learning goal 5

Explain the differences between leaders and managers, and describe the various leadership

styles.

V. LEADING: PROVIDING CONTINUOUS VISION AND VALUES

A. Leadership Styles

B. Empowering Workers

C. Managing Knowledge

learning goal 6

VI. CONTROLLING: MAKING SURE IT WORKS

A. A Key Criterion for Measurement: Customer Satisfaction

VII. SUMMARY

Chapter 07 – Management and Leadership

Getting to Know JOHN MACKEY of WHOLE FOODS MARKET

John Mackey started his market with one thing in mind—to meet women. That quickly changed

and he opened SaferWay Foods with his girlfriend. In 1980, SaferWay merged with another company

and Whole Foods Market was born. Whole Foods now is a world leader in natural and organic foods

and consistently figures in Fortune’s “Best Companies to Work For” lists. Whole Foods hires good

people and trains them well. In turn, its employees treat customers well.

learning goal 1

Describe the changes occurring today in the management function.

I. MANAGERS’ ROLES ARE EVOLVING.

A. Managers get things done by using organizational re-

sources—workers, financial resources, information, and

equipment.

C. The recent economic crisis was particularly difficult for

Like many companies today, this company uses social media to communicate with cus-

tomers. In one case, a customer complained on Twitter when the company sent a

BlackBerry to replace an iPhone that had failed. The company responded quickly with

a replacement iPhone. The customer then tweeted about the company’s great customer

service. Name that company

(Students should read the chapter before guessing the company’s name: Best Buy)

7-6

PPT 7-1

Chapter Title

PPT 7-2

Learning Goals

(See complete PowerPoint slide notes on page 7.37.)

PPT 7-3

Learning Goals

(See complete PowerPoint slide notes on page 7.37.)

PPT 7-4

John Mackey

(See complete PowerPoint slide notes on page 7.38.)

PPT 7-5

Name That Company

(See complete PowerPoint slide notes on page 7.38.)

lecture link 7-1

BEWARE OF BAD BOSSES

Bad bosses have always been with us. This lecture link

explains how to handle them. (See the complete lecture link on

page 7.55 of this manual.)

lecture link 7-2

BEST BUSINESS LEADERS OF

THE 20TH CENTURY

These are the top executives of the 20th century, as chosen

through a survey of executives. (See the complete lecture link

on page 7.57 of this manual.)

Chapter 07 – Management and Leadership

learning goal 2

Describe the four functions of management.

II. THE FOUR FUNCTIONS OF MANAGEMENT

A. MANAGEMENT is the process used to accomplish

organizational goals through planning, organizing,

leading, and controlling people and other organiza-

tional resources.

and everything work together to achieve the organi-

zation’s goals and objectives.

1. Successful organizations today are designed

Chapter 07 – Management and Leadership

7-8

lecture link 7-3

WOMEN BRINGING HOME THE

BACON

As more women are taking management roles in their

companies, more are becoming the primary breadwinners in

their homes. (See the complete lecture link on page 7.58 of

this manual.)

lecture link 7-4

THREE TYPES OF GREAT

LEADERS

According to one business writer, there are three basic

types of brilliant bosses. (See the complete lecture link on

page 7.59 of this manual.)

PPT 7-6

What Is Management?

(See complete PowerPoint slide notes on page 7.38.)

PPT 7-7

Today’s Managers

(See complete PowerPoint slide notes on page 7.39.)

7-9

PPT 7-8

Respect and How to Get It

(See complete PowerPoint slide notes on page 7.39.)

PPT 7-9

Education Matters

(See complete PowerPoint slide notes on page 7.39.)

PPT 7-10

Four Functions of Management

(See complete PowerPoint slide notes on page 7.40.)

Chapter 07 – Management and Leadership

D. LEADING means creating a vision for the organiza-

tion and guiding, training, coaching, and motivating

others to work effectively to achieve the organiza-

tion’s goals and objectives in a timely manner.

III. PLANNING AND DECISION MAKING

A. PLANNING involves setting the organizational vi-

sion, goals, and objectives.

1. A VISION is an encompassing explanation of

why the organization exists and where it is head-

ed; it is more than a goal.

Chapter 07 – Management and Leadership

7-11

critical thinking

exercise 7-1

MANAGEMENT FUNCTIONS

This exercise asks students to organize managerial activi-

ties they have performed into the four management functions.

(See the complete exercise on page 7.64 of this manual.)

TEXT FIGURE 7.1

What Managers Do

(Text page 182)

This text figure shows some tasks that managers perform

while performing the four management functions.

progress

assessment

(Text page 183)

PPT 7-11

Progress Assessment

(See complete PowerPoint slide notes on page 7.40.)

7-13

PPT 7-12

Sharing the Vision

(See complete PowerPoint slide notes on page 7.40.)

PPT 7-13

Defining the Mission

(See complete PowerPoint slide notes on page 7.41.)

lecture link 7-5

REVISITING MISSION AT

VICTORIA’S SECRET

Victoria’s Secret is refocusing on its original mission, ul-

tra-feminine rather than sexy lingerie. (See the complete lec-

ture link on page 7.60 of this manual.)

PPT 7-14

Setting Goals and Objectives

(See complete PowerPoint slide notes on page 7.41.)

PPT 7-15

Planning Answers Fundamental

Questions

(See complete PowerPoint slide notes on page 7.41.)

TEXT FIGURE 7.2

SWOT Matrix

(Text page 184)

PPT 7-16

SWOT Matrix

(See complete PowerPoint slide notes on page 7.42.)

Chapter 07 – Management and Leadership

7-14

B. TYPES OF PLANNING

1. STRATEGIC PLANNING is the process of deter–

mining the major goals of the organization and

the policies and strategies needed for obtaining

iii. What products to sell

iv. The geographic areas in which to com-

pete

Chapter 07 – Management and Leadership

7-15

critical thinking

exercise 7-2

CAREER SWOT ANALYSIS

SWOT analysis, the key tool in the strategic planning

process, can also be applied to career planning. (See the com-

plete exercise on page 7.57 of this manual.)

PPT 7-17

Planning Functions

TEXT FIGURE 7.3

Planning Functions

(Text page 185)

(See complete PowerPoint slide notes on page 7.42.)

PPT 7-18

Strategic and Tactical Planning

(See complete PowerPoint slide notes on page 7.42.)

bonus case 7-1

DEFENSEWEB EVALUATES A

STRATEGIC EXPANSION

DefenseWeb considers a strategic move into the private

sector. (See the complete case, discussion questions, and sug-

gested answers beginning on page 7.72 of this manual.)

Chapter 07 – Management and Leadership

7-16

Chapter 07 – Management and Leadership

7-17

PPT 7-19

Operational and Contingency

Planning

(See complete PowerPoint slide notes on page 7.43.)

REACHING BEYOND

our borders

(Text page 185)

PPT 7-20

The Japanese

Crisis, Terrorism, and

American Business

(See complete PowerPoint slide notes on page 7.43.)

critical thinking

exercise 7-3

CRISIS MANAGEMENT

This exercise explores management reaction to rapid, un-

expected change. (See the complete exercise on page 7.66 of

this manual.)

Chapter 07 – Management and Leadership

C. DECISION MAKING: FINDING THE BEST ALTER-

NATIVE

the everyday problems that occur; it is less formal

7-19

PPT 7-21

Decision Making

(See complete PowerPoint slide notes on page 7.43.)

PPT 7-22

What Makes a Great CEO

(See complete PowerPoint slide notes on page 7.44.)

bonus case 7-2

WHEN EMPLOYEES MAKE THE

DECISIONS

This case discusses how one employee-owned firm uses

participative management. (See the complete case, discussion

questions, and suggested answers beginning on page 7.74 of

this manual.)

PPT 7-23

Rational Decision-Making Model

(See complete PowerPoint slide notes on page 7.44.)

lecture link 7-6

DECISION-MAKING TIPS

This lecture link gives some tips for enhancing decision

making. (See the complete lecture link on page 7.60 of this

manual.)

critical thinking

exercise 7-4

EVALUATING ALTERNATIVE

COURSES

Because of shrinking market share and declining profits,

Monmouth Thermics, a subsidiary of a large conglomerate,

needs a recovery plan. (See the complete exercise on page

7.67 of this manual.)

PPT 7-24

Problem Solving

(See complete PowerPoint slide notes on page 7.44.)

bonus case 7-3

DECISION MAKING: KLM 4805

The worst air disaster in history occurred as a result of

miscommunication and bad decision making. (See the com-

plete case, discussion questions, and suggested answers begin-

ning on page 7.76 of this manual.)

Chapter 07 – Management and Leadership

learning goal 4

Describe the organizing function of management.

IV. ORGANIZING: CREATING A UNIFIED SYSTEM

A. After planning a course of action, managers must

ORGANIZE the firm—allocate resources—to accom-

plish their goals.