978-0073524597 Chapter 7 Part 3

Unlock access to all the studying documents.

View Full Document

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

7-58

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

7-59

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