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Chapter 07 - Management and Leadership
7-41
PPT 7-13
Defining the Mission
The mission statement is the foundation for setting spe-
cific goals and objectives within the organization.
PPT 7-14
Setting Goals and Objectives
PPT 7-15
Planning Answers Fundamental
Questions
SWOT is an acronym for Strengths, Weaknesses, Oppor-
tunities, and Threats. As part of the internal analysis, the
organization identifies the potential strengths that it can
capitalize on and potential weaknesses that it should im-
prove on. An organization, as part of an external environ-
mental analysis, identifies the opportunities (factors that an
organization can take advantage of) and threats (factors that
an organization should avoid or minimize the impact of).
Have the students perform a SWOT analysis on themselves.
(At least the strengths and weaknesses part should be an
eye-opening experience for them.)
Chapter 07 - Management and Leadership
PPT 7-16
SWOT Matrix
PPT 7-17
Planning Functions
This slide covers the key areas of planning by business
managers. Students should be reminded that planning re-
quires preparation to be successful. More effort put into
planning will result in greater achievement. All planning
should be in writing with an estimation of time and cost.
Gantt charts are often used to compare planned results with
actual accomplishments. Even the best prepared plans
sometimes miss the unexpected problems. Managers should
always be prepared to act in the event a plan fails. Poor
contingency planning may result in significant problems for
a company.
PPT 7-18
Strategic and Tactical Planning
7-43
PPT 7-19
Operational and Contingency Planning
PPT 7-20
Japanese Crisis, Terrorism, and
American Business
PPT 7-21
Decision Making
Chapter 07 - Management and Leadership
PPT 7-22
What Makes a Great CEO
1. Since the world seems to be changing at a faster
pace, it’s important for CEOs to change their pro-
cesses.
2. No longer can managers think small; they must
think globally and plan for anything and everything.
PPT 7-23
Rational Decision-Making Model
Managers don’t always go through this seven-step pro-
cess. However, they must always make sound decisions.
But that is easier said than done. As an interesting exercise
ask the students, working in groups, to go through a simple
process of identifying an automobile to purchase using
these steps. Everyone’s input should be obtained in the
group. They either can select a group manager or all can
have an equal say/vote. Both scenarios should produce dif-
ferent, but interesting experiences for students.
PPT 7-24
Problem Solving
PPT 7-25
Progress Assessment
1. Goals are broad, long-term accomplishments an or-
ganization wishes to attain. Objectives are specific,
short-term statements detailing how the organiza-
tion will achieve its goals.
2. In today’s rapidly changing business environment,
managers must think of planning as a continuous
process. The SWOT analysis is an important part of
the planning process as it evaluates an organiza-
tion’s strengths, weaknesses, opportunities, and
threats.
3. Strategic planning is the process top management
uses to determine the major goals of the organiza-
tion, and the policies, procedures, strategies, and re-
sources the organization will need to achieve them.
ning is typically completed by managers at lower
levels of the organization whereas strategic plan-
ning is done by the top managers. The final type of
objectives. This type of planning is the department
manager’s tool for daily and weekly operations.
4. What are the seven Ds in decision making? The
seven Ds in decision making are as follows:
• Determine whether the decision was a good
one and follow up.
Chapter 07 - Management and Leadership
PPT 7-26
Organizational Charts
PPT 7-27
Levels of Management
This slide shows a good visual of management levels
within a corporation. Note the pyramid shape and the type
of job positions that are in each level. It’s important for the
student to know the necessary skill levels that each position
in the pyramid requires. A top-level manager needs good
conceptual skills, and to be able to effectively communicate
goals to the entire corporation. Middle-level managers typi-
cally develop the strategies for goal attainment and develop
the tactics necessary to achieve stated goals. Middle man-
agers require good analytical skills and the ability to com-
municate. First-line managers are responsible for execution
of business goals. Technical skills and good communica-
tions skills are necessary.
PPT 7-28
Management Levels
7-49
PPT 7-35
Staffing Is Tricky Business
1. As we’ve discussed, getting and keeping the right
staff is not an easy task.
2. This slide shows what managers should not do
while staffing.
3. Ask the students, Why do you think a manager
should not promote a longtime employee only be-
cause it’s time or the manager owes him or her a
favor? What’s so important about feedback?
PPT 7-36
Leadership
PPT 7-37
To Share or Not to Share
Chapter 07 - Management and Leadership
PPT 7-38
Accountability through Transparency
PPT 7-39
Leadership Styles
Research tells us that determining which leadership style
is best depends on what the goals and values of the firm are,
who’s being led, and in what situations. A successful leader
in one organization may not be successful in another.
PPT 7-40
Various Leadership Styles
PPT 7-41
Natural Born Leaders?
1. Ask the students, Does your personality reveal how
you think and work? Can it be improved? (Tests
such as Myers-Briggs profile individuals’ personal-
ities.)
2. Williams and Deal, authors of When Opposites
Dance: Balancing the Manager and Leader Within,
identify four types of managers:
• Rationalists, who value sound thinking and
work through organizational structure to
accomplish tasks.
• Politicists, who view group dynamics from
a power perspective and are adept at poli-
tics.
• Humanists, who are attuned to organiza-
tional moods and regard people as a com-
pany’s top asset.
• Culturists, who consider culture the
preeminent force in an organization and
communicate through stories, ceremonies,
and rituals.
3. Williams and Deal conclude that while people are
predisposed to think and act in certain ways, the
best executives combine different personality at-
tributes. (Source: CIO, November 1, 2003.)
Using Social Media to Build Customer
Support
Chapter 07 - Management and Leadership
7-52
PPT 7-43
Empowerment
PPT 7-44
Work Smarter
1. Managing in today’s complex environment is about
leading, not supervising.
2. This slide gives students insight into the process of
empowering employees to work smarter.
3. Ask the students, What are the benefits of empow-
ering employees to work smarter? (Employees who
are empowered should be more motivated and able
to handle more complex tasks.)
PPT 7-45
Managing Knowledge
Chapter 07 - Management and Leadership
PPT 7-46
Five Steps of Controlling
This slide presents the five steps of the control function.
It should be pointed out to the students that the whole con-
trol process is based on clear standards. The control func-
tion completes the management function loop that starts
with planning. Accounting and finance are often the foun-
dations for control systems, because they provide the num-
bers management needs to evaluate progress.
PPT 7-47
Are You a Micromanager?
1. This slide presents a list of questions a manager can
ask himself or herself to determine if he or she is a
micromanager.
2. If you answer yes to any of these five questions,
you are a micromanager. Managers can ask a trust-
ed employee for honest feedback.
3. Ask the students, Have they ever worked for a mi-
cromanager? How did it make them feel and how
did other employees feel?
4. Do the students have the tendency to think that if
they want something done right, they must do it
themselves or constantly check on others work in a
team situation? (It may indicate some of the mi-
cromanaging tendencies.)
PPT 7-48
Measuring Success
PPT 7-49
Progress Assessment
1. Enabling is the key to successfully empowering
employees. Enabling means giving workers the ed-
ucation and the tools they need to make decisions.
2. The five steps in the control process are (1) setting
clear standards, (2) monitoring and recording per-
formance, (3) comparing performance with plans
and standards, (4) communicating results and de-
viations to employees, and (5) providing positive
feedback for a job well done and taking the correc-
tive action necessary.
3. Not all customers come from outside the organiza-
tion. Internal customers are defined as individuals
and business units within the firm that receive ser-
vices from other individuals or units. For example,
the field salespeople are the internal customers of
the marketing research units that prepare market re-
ports for them. External customers are more tradi-
tional and include dealers, who buy products and
sell to others, and ultimately customers, who buy
products for their own personal use.
Chapter 07 - Management and Leadership
7-55
lecture
links
“If we took the mission statements of 100 large industrial companies, mixed them
up while everyone was asleep, and reassigned them at random, would anyone wake
up tomorrow and cry, ‘My gosh, where has our mission statement gone?’”
Hamel and Prahalad
“The person who says it cannot be done should not interrupt the person doing it.”
Chinese proverb
“Good tactics can save even the worst strategy. Bad tactics will destroy even the
best strategy.”
General George S. Patton
lecture link 7-1
BEWARE OF BAD BOSSES
Bad bosses—whether jerks, bullies, or micromanagers—have always been with us. Today, how-
ever, there seem to be more bad bosses than ever before. As a result of downsizing, overextended manag-
ers are both short-tempered and too busy to provide staff with the support they need. No one has as much
THE WEAK MANAGER
She won’t stand up for you. She aggressively avoids taking risks. She’s vague, and her commit-
ments have the sticking power of water. But the underlying causes of her behavior can vary. Often, she
Chapter 07 - Management and Leadership
7-56
If your boss is too burned out to care or is a reluctant manager, work around her. Take the initia-
tive to set out the parameters of the work. Make her life easy by talking to her only about critical issues. If
your boss is lacking management skills, tell her what you need from her to do your job. Then cover your-
self by sending an e-mail.
THE POLITICAL MANAGER
THE OBSESSIVE MICROMANAGER
She trusts you the way you’d trust a five-year-old behind the wheel of the car. No matter how
much detail you give her, or how many times you redo a piece of work, it’s still not right. You’re com-
THE INVISIBLE MANAGER
You have no one to go to for direction. She doesn’t have a clue about the volume or pace of your
work. You’re killing yourself, but no one notices or gives you feedback. This manager shares many of the
THE TASK MASTER
He doesn’t have a life and doesn’t expect you to either. You’re drowning in work, but he keeps
heaping on more. His timelines are ridiculous. Sometimes an extremely task-focused manager is simply
shy or preoccupied or so focused on getting the work done that he’s not aware of the impact of his behav-
Chapter 07 - Management and Leadership
7-57
THE NASTY MANAGER
She’s ruthless. She seems to take pleasure in watching you squirm. She has pets, and you are not
one of them. Sometimes an apparently nasty boss is simply so task-focused that she is oblivious to how
her behavior makes you feel. Underneath a gruff exterior, as the saying goes, may be the heart of a pussy-
cat. When you confront her, does she apologize or get mad?
lecture link 7-2
BEST BUSINESS LEADERS OF THE 20TH CENTURY
Harvard Business School professors Anthony J. Mayo and Nitin Nohria set out to identify histo-
ry’s greatest business leaders. In their book In Their Time: The Greatest Business Leaders of the 20th
Century, they identified 1,000 great chief executives and company founders of the 20th century. They
then asked business leaders to evaluate and rank their candidates. Finally, they produced a ranking of the
top 100 business leaders of the 20th century. Classic entrepreneurs who built companies from scratch
dominate the list of the best. Only 1 woman—Estee Lauder—made the top 25.ii
1. Samuel M. Walton (Walmart)
2. Walter E. Disney (Walt Disney)
3. William H. Gates III (Microsoft)
4. Henry Ford (Ford Motor)
5. John P. Morgan (J. P. Morgan Chase)
6. Alfred P. Sloan Jr. (General Motors)
7. John F. Welch Jr. (General Electric)
8. Raymond A. Kroc (McDonald’s)
9. William R. Hewlett (Hewlett-Packard)
10. David Packard (Hewlett-Packard)
11. Andrew S. Grove (Intel)
12. Milton S. Hershey (The Hershey Co.)
13. John D. Rockefeller Sr. (Standard Oil)
14. Thomas J. Watson Jr. (IBM)
Chapter 07 - Management and Leadership
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16. Will K. Kellogg (Kellogg)
18. Harland Sanders (Kentucky Fried Chicken)
20. Thomas J. Watson Sr. (IBM)
22. Estee Lauder (Estee Lauder)
24. Daniel F. Gerber Jr. (Gerber Products)
25. James L. Kraft (Kraft Foods)
lecture link 7-3
WOMEN BRINGING HOME THE BACON
For decades women have held the purse strings of many American households. As much as 85%
of all purchasing decisions are ultimately made by a female. This fact alone makes women a more than
formidable market, but recent strides in social equality have facilitated a seismic shift in household dy-
namics that will shake the entire economy. For the first time in history, not only are women the primary
purchasers, they are also the breadwinners.
The U.S. workforce became nearly half female in October 2009, with women accounting for
49.9% of all nonfarm labor jobs and 51.5% of management and professorial positions. The Bureau of La-
bor Statistics found that women make up the majority of the workforce in 9 of the 10 occupations slated
Chapter 07 - Management and Leadership
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lecture link 7-4
THREE TYPES OF GREAT LEADERS
In their book In Their Time: The Greatest Business Leaders of the 20th Century, Harvard Busi-
ness School professors Anthony J. Mayo and Nitin Nohria identified 1,000 great chief executives and
company founders of the 20th century. (See Lecture Link 7-2, Best Business Leaders of the 20th Centu-
ry.)
Whereas entrepreneurs were company creators and agents of change, managerial leaders are val-
ue maximizers. They make the most out of something that already exists. Nohria and Mayo use Louis B.
Neumiller as an example. Neumiller rose through the ranks of Caterpillar and became its chief executive
in 1941, two months before Japan attacked Pearl Harbor. He seized on the massive global event that was
World War II to build Caterpillar into a global organization. When the U.S. military approached Neumil-
ler about converting Caterpillar’s operation to artillery production, he convinced the Army that it was bet-
ter served by letting Caterpillar continue to manufacture bulldozers and tractors. It turned out that the
