Chapter 07 – Management and Leadership
7-1
chapter
.
Management and
Leadership
what’s new in this edition 7.3
brief chapter outline and learning objectives 7.5
lecture outline and lecture notes 7.7
PowerPoint slide notes 7.39
lecture enhancers 7.57
lecture enhancer 7-1: BEWARE OF BAD BOSSES 7.57
lecture enhancer 7-2: BEST BUSINESS LEADERS OF THE 20TH CENTURY 7.59
lecture enhancer 7-3: WOMEN BRINGING HOME THE BACON 7.60
lecture enhancer 7-4: THREE TYPES OF GREAT LEADERS 7.60
lecture enhancer 7-5: DECISION-MAKING TIPS 7.61
lecture enhancer 7-6: THE 21ST-CENTURY CEO 7.62
lecture enhancer 7-7: LEARNING MANAGEMENT SKILLS 7.62
lecture enhancer 7-8: MANAGED TO DEATH: JAPAN’S ECONOMIC DECLINE 7.64
critical thinking exercises 7.65
critical thinking exercise 7-1: MANAGEMENT FUNCTIONS 7.65
critical thinking exercise 7-2: CAREER SWOT ANALYSIS 7.66
critical thinking exercise 7-3: CRISIS MANAGEMENT 7.67
critical thinking exercise 7-4: EVALUATING ALTERNATIVE COURSES 7.68
critical thinking exercise 7-5: THE MOST POWERFUL WOMEN IN BUSINESS 7.69
7
Chapter 07 – Management and Leadership
7-2
critical thinking exercise 7-6: RATE YOUR MANAGEMENT SKILLS 7.70
critical thinking exercise 7-7: ARE LEADERS BORN OR CAN THEY BE 7.71
TAUGHT?
critical thinking exercise 7-8: TRAITS OF LEADERS 7.72
bonus case 7.73
bonus case 7-1: EDUCATING EXECUTIVES ABOUT SOCIAL MEDIA 7.73
Chapter 07 – Management and Leadership
7-3
what’s new in
this edition
additions to the 11th edition:
• Getting to Know Sheryl Sandberg of Facebook
• Name That Company: Google
• Reaching Beyond Our Borders: Back to School for Top Managers
• Adapting to Change: Using Social Media During the Worst of Times
• Video Case: Zappos
revisions to the 11th edition:
• Statistical data and examples throughout the chapter were updated to reflect current information.
• Making Ethical Decisions: What Do You Tell the Team?
deletions from the 10th edition:
• Getting to Know John Mackey
• Name That Company: Best Buy
• Reaching Beyond Our Borders
• Social Media in Business
Chapter 07 – Management and Leadership
7-4
Chapter 07 – Management and Leadership
7-5
brief chapter outline
and learning objectives
CHAPTER 7
MANAGEMENT AND LEADERSHIP
Getting to Know SHERYL SANDBERG of FACEBOOK
LEARNING OBJECTIVE 1
Describe the changes occurring today in the management function.
I. MANAGERS’ ROLES ARE EVOLVING.
LEARNING OBJECTIVE 2
Describe the four functions of management.
II. THE FOUR FUNCTIONS OF MANAGEMENT
LEARNING OBJECTIVE 3
Relate the planning process and decision making to the accomplishment of company
goals.
III. PLANNING AND DECISION MAKING
A. Decision Making: Finding the Best Alternative.
LEARNING OBJECTIVE 4
Describe the organizing function of management.
IV. ORGANIZING: CREATING A UNIFIED SYSTEM
A. Tasks and Skills at Different Levels of Management
B. Staffing: Getting and Keeping the Right People
LEARNING OBJECTIVE 5
Explain the differences between leaders and managers, and describe the various lead-
ership styles.
V. LEADING: PROVIDING CONTINUOUS VISION AND VALUES
A. Leadership Styles
B. Empowering Workers
C. Managing Knowledge
Chapter 07 – Management and Leadership
7-6
LEARNING OBJECTIVE 6
Summarize the five steps of the control function of management.
VI. CONTROLLING: MAKING SURE IT WORKS
A. A Key Criterion for Measurement: Customer Satisfaction
VII. SUMMARY
Chapter 07 – Management and Leadership
7-7
Getting to Know SHERYL SANDBERG of FACEBOOK
A bestselling author and prominent executive, Sheryl Sandberg wants the business
world to be a more accessible place for women.
learning objective 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.
1. At one time, managers were called BOSSES and
their job was to tell people what to do.
2. Today, managers must GUIDE, TRAIN, SUP-
PORT, MOTIVATE, and COACH EMPLOYEES
rather than TELLING them what to do.
B. Most modern managers emphasize teamwork and
cooperation rather than discipline and order giving.
1. Traditional long-term contracts between man-
agement and employees no longer exist.
2. Most future managers will WORK IN TEAMS.
C. The recent economic crisis was particularly difficult
for workers, who were laid off in record numbers, and
This company knows that finding the right people and keeping them happy is the key to long-
term business success. So it has its own gourmet chefs prepare delicious lunches, dinners and
snacks for its employees. Name that company.
(Students should read the chapter before guessing the company’s name: Google.)
Chapter 07 – Management and Leadership
7-8
PPT 7-1
Chapter Title
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Management
and Leadership
CHAPTER 7
PPT 7-2
Learning Objectives
LEARNING OBJECTIVES
7-2
1. Describe the changes occurring today in the
management function.
2. Describe the four functions of management.
3. Relate the planning process and decision making to
the accomplishment of company goals.
PPT 7-3
Learning Objectives
LEARNING OBJECTIVES
7-3
4. Describe the organizing function of management.
5. Explain the differences between leaders and
managers, and describe the various leadership
styles.
6. Summarize the five steps of the control function of
management.
PPT 7-4
Sheryl Sandberg
SHERYL SANDBERG
Facebook
7-4
• Displayed her leadership skills
as a child and took that with her
to Harvard.
• She joined Facebook in 2008
and made the company
profitable in two years.
• Now shares her knowledge in
her book, Lean In.
PPT 7-5
Name That Company
NAME that COMPANY
7-5
This company knows that finding the right people
and keeping them happy is the key to long-term
business success. So it has its own gourmet
chefs prepare delicious lunches, dinners and
snacks for its employees.
Name that company!
(See complete PowerPoint slide notes on page 7.39.)
lecture enhancer 7-1
BEWARE OF BAD BOSSES
Bad bosses have always been with us. This lecture enhancer ex-
plains how to handle them. (See the complete lecture enhancer
on page 7.57 of this manual.)
lecture enhancer 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 en-
hancer on page 7.59 of this manual.)
Chapter 07 – Management and Leadership
7-9
managers, who had to make these difficult deci-
sions.
D. Today’s leaders are YOUNGER, and they tend to
move from one company to another.
E. The new manager needs to be a skilled communica-
tor and team player as well as a planner, coordina-
tor, organizer, and supervisor.
learning objective 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.
B. PLANNING is a management function that includes
anticipating trends and determining the best strate-
gies and tactics to achieve organizational goals and
objectives.
1. The trend today is to have PLANNING TEAMS
monitor the environment.
2. Planning is called the KEY MANAGEMENT
FUNCTION because the other functions depend
on having a good plan.
C. ORGANIZING is a management function that in-
cludes designing the structure of the organization
and creating conditions and systems in which every–
one and everything work together to achieve the or-
ganization’s goals and objectives.
1. Successful organizations today are designed
Chapter 07 – Management and Leadership
7-10
lecture enhancer 7–3
WOMEN BRINGING HOME THE BA-
CON
lecture enhancer 7–4
THREE TYPES OF GREAT LEADERS
PPT 7-6
What Is Management?
WHAT IS MANAGEMENT?
7-6
LO 7-2
• Management — The process used to accomplish
organizational goals through planning, organizing,
leading and controlling people and other
organizational resources.
PPT 7-7
Today’s Managers
TODAY’S MANAGERS
7-6
LO 7-1
• Younger 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.
PPT 7-8
Respect and How to Get It
RESPECT and HOW to GET IT
7-8
LO 7-1
Source:Entrepreneur,www.entrepreneur.com,accessedNovember2014.
PPT 7-9
Education Matters
EDUCATION MATTERS
Alma Maters of CEOs
7-9
Rank School # of CEOs
1 Harvard University 25
2Stanford University 11
3 University of Pennsylvania 8
4Massachusetts Institute of Technology 7
5 Cornell University 6
6 University of Chicago 6
7 Northwestern University 6
8 Columbia University 6
9 Yale University 6
10 Southern Methodist University 5
LO 7-1
Source:BestColleges,www.bestcolleges.com,accessedNovember2014.
PPT 7-10
Four Functions of Management
FOUR FUNCTIONS of
MANAGEMENT
7-10
LO 7-2
Chapter 07 – Management and Leadership
7-11
around pleasing the customer at a profit.
2. Organizations must remain flexible and adapta-
ble to respond to customers’ changing needs.
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.
1. Today, most managers EMPOWER employees,
giving them as much freedom as possible.
2. This function was once known as DIRECTING;
that is, telling employees exactly what to do.
3. Leadership is still needed to keep employees fo-
cused on the right tasks at the right time.
E. CONTROLLING is a management function that in-
volves establishing clear standards to determine
whether or not an organization is progressing to-
ward its goals and objectives, rewarding people for
doing a good job, and taking corrective action if they
are not.
F. The four functions are the heart of management.
learning objective 3
Relate the planning process and decision making to the accomplishment of
company goals.
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
Chapter 07 – Management and Leadership
7-12
critical thinking
exercise 7-1
MANAGEMENT FUNCTIONS
TEXT FIGURE 7.1
What Managers Do
test
prep
PPT 7-11
Progress Assessment
TEST PREP
7-11
• What are some of the changes happening in
management today?
• What’s the definition of management used in this
chapter?
• What are the four functions of management?
PPT 7-12
Sharing the Vision
SHARING the VISION
7-12
LO 7-3
• Vision — More than a goal,
it
’
s a broad explanation of
why the organization exists
and where it
’
s trying to go.
Chapter 07 – Management and Leadership
7-13
headed; it is more than a goal.
2. A MISSION STATEMENT is an outline of the
fundamental purposes of the organization.
a. A well-designed mission statement should
address:
i. The organization’s self-concept
ii. Company philosophy
iii. Long-term survival
iv. Customer needs
v. Social responsibility
vi. The nature of the product or service
3. GOALS are the broad, long-term accomplish-
ments an organization wishes to attain.
4. OBJECTIVES are specific, short-term state-
ments detailing how to achieve the organiza-
tional goals.
5. Planning is a process; it tends to follow a contin-
uous pattern.
6. Planning answers several FUNDAMENTAL
QUESTIONS:
a. What is the situation now and where do we
want to go?
b. How can we get there from here?
7. SWOT ANALYSIS is a planning tool used to
analyze an organization’s Strengths, Weak-
nesses, Opportunities, and Threats.
a. STRENGTHS and WEAKNESSES are IN-
TERNAL to the firm.
Chapter 07 – Management and Leadership
7-14
PPT 7-13
Defining the Mission
DEFINING THE MISSION
7-13
LO 7-3
• Mission Statement — Outlines the organization
’
s
fundamental purposes. It includes:
– the organization
’
s self–concept
– its philosophy
– long–term survival needs
– customer needs
– social responsibility
– nature of the product or service
PPT 7-14
Setting Goals and Objectives
SETTING
GOALS and OBJECTIVES
7-14
LO 7-3
• Goals — The broad, long-term
accomplishments an
organization wishes to attain.
• Objectives — Specific, short–
term statements detailing how to
achieve the organization
’
s
goals.
PPT 7-15
Planning Answers Fundamental
Questions
PLANNING ANSWERS
FUNDAMENTAL QUESTIONS
7-15
LO 7-3
• What 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 planning
– Tactical planning
– Operational planning
– Contingency planning
PPT 7-16
SWOT Matrix
TEXT FIGURE 7.2
SWOT Matrix
SWOT MATRIX
7-16
LO 7-3
Chapter 07 – Management and Leadership
7-15
b. OPPORTUNITIES and THREATS are often
EXTERNAL to the firm and cannot always
be anticipated.
B. TYPES OF PLANNING
1. STRATEGIC PLANNING is the process of de-
termining the major goals of the organization
and the policies and strategies needed for ob-
taining and using resources to achieve those
goals.
a. This type of planning is usually done by top
management.
b. POLICIES are broad guidelines for action.
c. STRATEGIES determine the best way to
use resources.
d. At this stage, top management decides:
i. Which customers to serve
ii. When to serve them
iii. What products to sell
iv. The geographic areas in which to com-
pete
e. The text uses the example of Taco Bell’s
successful “value menu” strategy and Block-
buster’s lack of planning that resulted in dif-
ficulties for the company.
f. Because changes are occurring so fast,
long-range planning has become more diffi-
cult.
g. Shorter-term plans allow companies to re-