Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 07 - Management and Leadership
7-60
lecture link 7-5
REVISITING MISSION AT VICTORIA’S SECRET
Victoria’s Secret, the lingerie company that introduced the Very Sexy Bra, the Fantasy Bra, and
the Internet service–crashing fashion show, may have become “too sexy” for its own good, according to
its chief executive officer. “We’ve so much gotten off our heritage,” Sharen Turney, Victoria’s Secret’s
CEO now believes, “Too sexy.” . . . “We use the word sexy a lot and really have forgotten the ultra femi-
nine.”
lecture link 7-6
DECISION-MAKING TIPS
Just as people are different, so are their styles of decision making. Each person is a result of all
the decisions made in their life to date. Recognizing this, here are some tips to enhance your decision-
making batting average.
• When making a decision you are simply choosing from among alternatives. You are not mak-
ing a choice between right and wrong.
Chapter 07 - Management and Leadership
7-61
• Recognize that you cannot know with 100% certainty that your decision is correct because
the actions to implement it will take place in the future. So make it and don’t worry about it.
• Remember that not making a decision is a decision not to take action.
lecture link 7-7
THE 21ST-CENTURY CEO
Economic recovery began for big businesses in 2010 as weary returns slowly transformed into
relatively robust earnings. But for the most recognizable names in American business, accounting books
flush with black ink aren’t the only tools they’ll need to forge ahead into the future. For most, real change
starts at the top with a new crop of CEOs to replace the old guard.
During the recession, CEO turnover dropped from 12.7% in 2007 to just 9.4% in 2010. Boards
feared that investors would construe departing high-level executives as alarm bells sounding the imminent
lecture link 7-8
LEARNING MANAGEMENT SKILLS
Chapter 07 - Management and Leadership
7-62
VERBAL SKILLS
WRITING SKILLS
Managers must also be able to write clearly and precisely. Much of what they want others to do
COMPUTER SKILLS
HUMAN RELATIONS SKILLS
TIME MANAGEMENT SKILLS
Chapter 07 - Management and Leadership
7-63
TECHNICAL SKILLS
To rise through the ranks of accounting, marketing, finance, production, or any other functional
area, it is important to be proficient in that area. Therefore, students should choose some area of speciali-
lecture link 7-9
AMERICA’S UPCOMING MANAGEMENT GAP
With unemployment still soaring in double digits, it’s difficult to believe that the United States
could suffer any sort of labor shortage in the near future. Many companies could face this problem soon
lecture link 7-10
MANAGED TO DEATH: JAPAN’S ECONOMIC DECLINE
Today, the emerging markets of Brazil, Russia, India, and China command 10.4% of all revenues
on Fortune’s Global 500 list, up from 0.9% in 1995. Around that same time, Japanese companies boasted
Chapter 07 - Management and Leadership
7-64
management catastrophes as executives sought to solve problems on foreign soil in the strict Japanese
manner they were taught.
critical
thinking exercises
Name: ___________________________
Date: ___________________________
critical thinking exercise 7-1
MANAGEMENT FUNCTIONS
PLANNING
ORGANIZING
LEADING
CONTROLLING
Chapter 07 - Management and Leadership
7-65
Name: ___________________________
Date: ___________________________
critical thinking exercise 7-2
CAREER SWOT ANALYSIS
1. STRENGTHS:
2. WEAKNESSES:
• What could you improve?
• What do you do badly?
• What should you avoid?
Chapter 07 - Management and Leadership
7-66
3. OPPORTUNITIES:
• Where are the good opportunities facing you?
• What changes are occurring in social patterns, population profiles, lifestyle changes, and so
on?
4. THREATS:
• What obstacles do you face?
• Are the required specifications for your career changing?
Name: ___________________________
Date: ___________________________
critical thinking exercise 7-3
CRISIS MANAGEMENT
This exercise explores management reaction to rapid, unexpected change. Divide the class into
groups of five or six. Each group will act as a management team for a large national company faced with
Chapter 07 - Management and Leadership
7-67
D. There has been a massive explosion at a chemical plant, centered in the storage area. The result-
ing fire is threatening a building where dozens of workers have taken refuge. There are rumors
that a terrorist bomb was involved. Casualties and extent of damage are unknown.
E. A gunman has invaded a large metropolitan bank, killing 4 people and taking 20 employees hos-
tage. He has demanded that bank executives publicly apologize for “crimes against African
Americans” or he will blow up the bank. No one knows what weapons he has.
Name: ___________________________
Date: ___________________________
critical thinking exercise 7-4
EVALUATING ALTERNATIVE COURSES
Monmouth Thermics, a subsidiary of General Standard, a large conglomerate, manufactures
thermometers. Your primary customers are large companies that purchase the thermometers to use for
specialty advertising. Over the last several years, however, low-cost overseas competitors have pulled
away many of the company’s longtime customers.
General Standard has become concerned about the loss of market share and declining profit. You,
as Monmouth general manager, have been asked to put together a recovery plan to present to the General
Chapter 07 - Management and Leadership
7-68
Name: ___________________________
Date: ___________________________
critical thinking exercise 7-5
THE MOST POWERFUL WOMEN IN BUSINESS
1. List the top five most powerful women in business for the latest year. Also give the company for
which they work.
NAME COMPANY
a. ________________________________ _________________________________
b. ________________________________ _________________________________
c. ________________________________ _________________________________
d. ________________________________ _________________________________
e. ________________________________ _________________________________
2. Which of the women earns the highest pay? How much?
3. Choose one of the women in the top ten to further research. Give a brief biography.
critical thinking exercise 7-6
RATE YOUR MANAGEMENT SKILLS
Rate yourself on each of these key management skills.
SKILL NEEDED
PERSONAL EVALUATION
Excellent
Good
Fair
Need Work
Verbal skills
Writing skills
Computer skills
Human relations skills
Time management
skills
Technical skills
Chapter 07 - Management and Leadership
7-70
notes on critical thinking exercise 7-6
Lecture Link 7-8, Learning Management Skills, on page 7.61 discusses these six important man-
critical thinking exercise 7-7
ARE LEADERS BORN OR CAN THEY BE TAUGHT?
There is considerable debate on the question, Are individuals born to be leaders or can they be
taught? To better understand the leadership equation, answer the questions below and be prepared to dis-
cuss the basic concepts that define leadership.
1. What is your initial reaction to the question, Are leaders born or can they be taught?
2. Now, use the Internet and find at least three articles or sites that discuss leadership. Based on your
work, how is leadership defined? What are some of the best practices of leaders?
3. Using the Internet, define successful leaders from the past 50 years, the past 25 years, and finally,
the leaders of today.
4. Based on your research, what are the general characteristics of leaders? What motivates individu-
als to become successful leaders?
5. Explain how individuals are taught to become good leaders.
6. Finally, are individuals mostly born or are they taught to become successful leaders? Explain.
7-71
critical thinking exercise 7-8
TRAITS OF LEADERS
Leaders possess traits and skills that make them successful. They are effective communicators,
1. What criteria did your group use to determine which two leaders you would profile? Describe.
2. In what ways are the leadership styles of these leaders similar? In what ways are they different?
Explain.
3. Were you surprised at the similarity or dissimilarity between these leaders? Discuss.
4. Which one of these leaders would you want to work for? Explain your rationale.
7-72
bonus case 7-1
DEFENSEWEB EVALUATES A STRATEGIC EXPANSION
DefenseWeb Technologies was on a roll. By 2002 profit margins were strong and clients were
happy. But founder Paul Cavanaugh was restless. Annual revenue had flattened at about $2 million, and
he worried that his company was hitting a slump. The company’s key product is a Web-based software
platform used by the U.S. armed forces. One such project is MyArmyLifeToo web portal. MyArmyLife-
Too is an online information clearinghouse to support army soldiers and their families.
If the military was so impressed with DefenseWeb’s performance, Cavanaugh wondered, could
the company target the much larger, and more lucrative, corporate market? The potential new private cli-
discussion questions for bonus case 7-1
1. Show how the seven-step decision process could be used in this case.
2. If DefenseWeb expands into the private sector, how would it affect the various stakeholders, such
as employees, customers, community, investors, and suppliers?
3. What are the benefits and drawbacks of having a technical person as CEO?
7-75
notes on discussion questions for bonus case 7-2
1. What do you see as the advantages and disadvantages of working for a worker-owned firm?
2. Since there are no hierarchies in worker-owned firms, how would you go about setting the pay
scale for people, especially over time? Since there is no hierarchy, there is no way of moving up
in the firm. How do you motivate people in such conditions?
3. A worker-owned firm is a radical way of empowering workers. What is the advantage of empow-
ering workers in the first place?
Chapter 07 - Management and Leadership
7-76
bonus case 7-3
DECISION MAKING: KLM 4805
At the height of the tourist season, a bomb exploded at the Gran Canaria airport, main airport for
the Canary Islands, closing the airport. Air traffic was notified and told to divert air traffic to Los Rodeos
airport on Tenerife, including two Boeing 747s—KLM 4805, out of JFK in New York, and Pan Am 1736,
KLM 4805, a huge 747, taxied to the fueling station to take on 14,500 gallons of jet fuel. The
flight crew wanted to take on additional fuel so it would not have to refuel later in the journey. Unfortu-
nately, the jet’s wingspread prevented other planes from moving around the stopped plane to begin their
take-offs. Pan Am 1736 waited two hours on the tarmac behind KLM waiting for a take-off slot.
KLM crew was headed by Captain Jacob van Zanten, a veteran pilot who routinely trained other
KLM pilots. Although he had more than 11,000 hours of flying, his training duties had kept van Zanten
out of the cockpit on many occasions. Most of his time was spent in a training simulator. He had flown an
average of only 21 hours a month and none in the previous two weeks.
The taxiway was too small for the 747 jets to use to reach the end of the runway. Instead, both
were told to taxi down the active runway, turn, and wait for take-off approval. KLM reached the end first
and was told to “hold.” Pilot van Zanten pivoted the plane and started winding the engines up for take-off.
A crew member in the cockpit noticed the error and asked van Zanten if he heard the hold message. Van
Zanten angrily silenced the crew member and temporarily stopped the take-off sequence.
Chapter 07 - Management and Leadership
7-77
The KLM crew saw the Pan Am jet on the runway and tried to rush the take-off. Pan Am fired its
discussion questions for bonus case 7-3
1. Identify three points at which the tragedy could have been prevented.
2. What role did communication play in the disaster? Why?
3. Many consumer advocates are pushing for rules that punish airlines for flights delayed more than
three hours on the ground. Do you think these rules are a good idea? Why or why not?
notes on discussion questions for bonus case 7-3
1. Identify three points at which the tragedy could have been prevented.
2. What role did communication play in the disaster? Why?
3. Many consumer advocates are pushing for rules that punish airlines for flights delayed more than
three hours on the ground. Do you think these rules are a good idea? Why or why not?
Chapter 07 - Management and Leadership
7-78
endnotes
i Sources: Barbara Moses, “Bad Bosses and How to Handle Them,” Globe & Mail, May 6, 2002; Cori Bolger,
“When a Royal Pain Reigns, Morale, Productivity Suffer,” The Clarion-Ledger, October 14, 2005.
vii Sources: Jon Helyar, “The Recession Is Gone, and the CEO Could Be Next,” Bloomberg Businessweek, February
3, 2011; William W. Maddux, Adam D. Galinsky, and Carmit T. Tadmor, “Be a Better Manager: Live Abroad,”
Harvard Business Review, September 2010.
viii Source: J. Stewart Black and Allen J. Morrison, “A Cautionary Tale for Emerging Market Giants,” Harvard
Business Review, September 2010.
ix The Internet is a dynamic, changing information source. Web links noted of this manual were checked at the time
of publication, but content may change over time. Please review the website before recommending it to your stu-
dents.
x The Internet is a dynamic, changing information source. Web links noted of this manual were checked at the time
of publication, but content may change over time. Please review the website before recommending it to your stu-
