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Chapter 07 - Management and Leadership
7-31
i. Research shows that employee partici-
pation may not increase effectiveness,
but it does usually increases job satisfac-
tion.
ii. Organizations that have successfully
used this style include Apple, IBM,
AT&T, and most smaller firms.
c. FREE-REIN LEADERSHIP
i. FREE-REIN LEADERSHIP is a leader-
ship style that involves managers setting
objectives and employees being relative-
ly free to do whatever it takes to accom-
plish those objectives.
ii. It is often successful when dealing with
engineers or other professionals.
d. Leaders rarely fit neatly into just one catego-
ry.
3. Leadership is actually a CONTINUUM with vary-
ing amounts of employee participation.
4. WHICH LEADERSHIP STYLE IS BEST?
a. The best leadership style to use DEPENDS
on the goals and values of the firm, who is
being led, and in what situations.
b. Any one manager can use a VARIETY OF
LEADERSHIP STYLES.
c. Successful leaders use the leadership style
that is appropriate to the situation and the
employees involved.
Chapter 07 - Management and Leadership
7-32
PPT 7-39
Various Leadership Styles
TEXT FIGURE 7.6
Various Leadership Styles
VARIOUS LEADERSHIP STYLES
7-39
LO 7-5
PPT 7-40
Natural Born Leaders?
NATURAL BORN LEADERS?
Four Types of Executives
Rationalists Humanists
Politicists Culturists
7-40
LO 7-5
critical thinking
exercise 7-7
ARE LEADERS BORN OR CAN
THEY BE TAUGHT?
This exercise explores the research and rationale behind this
question. (See the complete exercise on page 7.71 of this
manual.)
critical thinking
exercise 7-8
TRAITS OF LEADERS
What traits are common to great leaders? (See the complete
exercise on page 7.72 of this manual.)
Chapter 07 - Management and Leadership
7-33
C. EMPOWERING WORKERS
1. For traditional organizations, DIRECTING in-
volves giving assignments, explaining routines,
clarifying policies, and providing feedback on
performance.
2. PROGRESSIVE LEADERS are less likely to
give specific instructions to employees.
a. They EMPOWER employees to make deci-
sions on their own.
b. EMPOWERMENT is giving employees the
authority and responsibility to respond quick-
ly to customer requests.
c. Managers often resist empowerment be-
cause they are reluctant to give up power.
d. ENABLING is giving workers the education
and tools they need to make decisions.
D. MANAGING KNOWLEDGE
1. KNOWLEDGE MANAGEMENT is finding the
right information, keeping the information in a
readily accessible place, and making the infor-
mation known to everyone in the firm.
2. The first step is to decide what knowledge is
most important.
3. Knowledge management tries to prevent dupli-
cating information gathering every time a deci-
sion is made.
4. The key to success is learning how to process
information and turn it into knowledge that eve-
ryone can use.
Chapter 07 - Management and Leadership
7-34
PPT 7-41
Empowerment
EMPOWERMENT
7-41
LO 7-5
• Progressive leaders give employees the
authority to make decisions on their own without
consulting a manager.
• Customer needs are handled quickly.
• Manager’s role becomes less of a boss and more
of a coach.
• Enabling -- Giving workers the education and tools
they need to make decisions.
PPT 7-42
Work Smarter
Source:BloombergBusinessWeek,www.businessweek.com,access edNovember2014.
WORK SMARTER
How to Ease Pressure on Workers
7-42
LO 7-5
• Manage output instead of hours.
• Train workers to be ready for a more complex
corporate structure.
• Allow lower-level managers to make decisions.
• Use new technology to foster teamwork.
• Shift hiring emphasis to collaboration.
PPT 7-43
Managing Knowledge
MANAGING KNOWLEDGE
7-43
LO 7-5
• Knowledge Management --
Finding the right information,
keeping the information in a
readily accessible place and
making the information known to
everyone in the firm.
• Tries to keep people from
reinventing the wheel.
Chapter 07 - Management and Leadership
7-35
5. BIG DATA has become a popular term to de-
scribe the vast collection of available infor-
mation.
learning objective 6
Summarize the five steps of the control function of management.
VI. CONTROLLING: MAKING SURE IT WORKS
A. The CONTROL FUNCTION is critical to the man-
agement system because it provides the feedback
that lets managers adjust to any deviations from
plans.
1. The steps in controlling are:
a. Establishing clear PERFORMANCE
STANDARDS
b. MONITORING and recording actual perfor-
mance
c. COMPARING RESULTS against plans and
standards
d. COMMUNICATING RESULTS and devia-
tions to the employees involved
e. TAKING CORRECTIVE ACTION when
needed and PROVIDING POSITIVE FEED-
BACK for work well done
2. The system’s weak link is SETTING STAND-
ARDS.
a. In order to measure results against stand-
ards, the standards must be SPECIFIC, AT-
TAINABLE, and MEASURABLE.
b. Clear, specific standards should be set dur-
ing planning.
Chapter 07 - Management and Leadership
7-36
ADAPTING TO
change
PPT 7-34
Using Social Media During the
Worst of Times
USING SOCIAL MEDIA DURING
the WORST of TIMES
7-44
• Many companies use sites like
Twitter and Facebook to
proactively and reactively
communicate with their
customers.
• When GM was going through a
massive recall, CEO, Mary Barra,
insisted on using social media.
• Complaints were quickly read,
responded to, and resolved.
PPT 7-45
Five Steps of Controlling
TEXT FIGURE 7.7
The Control Process
FIVE STEPS of CONTROLLING
7-45
LO 7-6
PPT 7-46
Are You a Micromanager?
Source:CFOMagazine,www.cfo.com,accessedNovember2014.
ARE YOU a MICROMANAGER?
7-46
LO 7-6
• Do you have strategic initiatives that you have not
addressed?
• Do you often check on employees for quality
control?
• Do you often check on subordinates throughout
the day?
• Do you rarely take vacations?
• Is there a lot of turnover?
Chapter 07 - Management and Leadership
7-37
c. Clear procedures for monitoring perfor-
mance should also be established.
B. A KEY CRITERION FOR MEASUREMENT: CUS-
TOMER SATISFACTION
1. In a customer-oriented firm CUSTOMER SAT-
ISFACTION of both internal and external cus-
tomers is the criterion for measuring success.
a. EXTERNAL CUSTOMERS include dealers,
who buy products to sell to others, and ulti-
mate customers (or end users), who buy
products for their own personal use.
b. INTERNAL CUSTOMERS are individuals
and units within the firm that receive ser-
vices from other individuals and units.
2. Firms now try to go beyond simply satisfying
customers by “delighting” them with unexpected-
ly good products and services.
VII. SUMMARY
Chapter 07 - Management and Leadership
7-38
PPT 7-47
Measuring Success
MEASURING SUCCESS
7-47
LO 7-6
• Traditional forms of measuring success are
financial.
• Pleasing employees, stakeholders and customers
is important.
• External Customers -- Dealers, who buy products
to sell to others, and ultimate customers (or end
users), who buy products for their own use.
• Internal Customers -- Individuals and units within
the firm that receive services from other individuals or
units.
test
prep
PPT 7-48
Test Prep
TEST PREP
7-48
• How does enabling help achieve empowerment?
• What are the five steps in the control process?
• What’s the difference between internal and
external customers?
Chapter 07 - Management and Leadership
7-39
PowerPoint slide notes
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.
Chapter 07 - Management and Leadership
7-40
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!
Company: Google
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.
Chapter 07 - Management and Leadership
7-41
PPT 7-7
Today’s Managers
TODAY’S MANAGERS
7-7
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.
As the demographic make-up of this country changes, the
typical manager is changing. Today more managers are
women and fewer are from elite universities. Managers
today act more like facilitators than supervisors.
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,accessedNovember2014.
1. This slide presents the results from a study conducted
by www.entrepreneur.com.
2. Ask students: Why do you respect or not respect a
manager? (This question is certainly going to develop
a discussion among students in class.)
3. Ask the students: In your opinion why did sound
business strategy and ethical practices rank so high in
the study?
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:BestColleges,www.bestcolleges.com,accessedNovember2014.
1. This slide shows the schools that have educated the
most CEOs among S&P 500 companies.
2. Ask students: Are you surprised by the number of
CEOs that didn’t finish college? What qualities must
those CEOs have without formal education behind
them? What school did you expect to see on the list
that’s missing? What schools are you surprised to
see?
Chapter 07 - Management and Leadership
7-42
PPT 7-10
Four Functions of Management
FOUR FUNCTIONS of
MANAGEMENT
7-10
LO 7-2
Planning: Anticipating trends and determining the best
strategies and tactics to achieve organizational goals and
objectives.
Organizing: Designing the structure of the organization
and creating conditions and systems in which everyone
and everything works together to achieve goals.
Leading: Creating a vision for the organization and com-
municating, guiding, training, coaching, and motivating
others to achieve goals and objectives in a timely manner.
Controlling: Establishing clear standards to determine
whether an organization is progressing toward its goals
and objectives, rewarding people for good work and tak-
ing corrective action if they are not performing.
PPT 7-11
Test Prep
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?
1. Some of the changes in management today include:
Managers are more facilitators than bosses; managers
tend to emphasize team-building; managers tend to be
younger, fewer attended elite schools, and more are
women; and managers will conduct more business
globally.
2. Management is the process to accomplish organiza-
tional goals through planning, organizing, leading,
and controlling people and other organizational re-
sources.
3. The four functions of management are planning, or-
ganizing, leading, and controlling.
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.
Creating vision for the company is not merely setting a
goal, but rather creating a sense of purpose for the organi-
zation.
Chapter 07 - Management and Leadership
7-43
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
The mission statement is the foundation for setting specif-
ic goals and objectives within the organization.
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
S
trengths, Weaknesses, Opportunities and Threats.
• How can we get to our goal from here?
- Strategic planning
- Tactical planning
- Operational planning
- Contingency planning
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 upon and potential weaknesses that it should
improve upon. An organization, as part of an external en-
vironmental 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). An interesting exercise for the students – have
them perform a SWOT analysis on themselves (At least
the strengths and weaknesses part should be an eye open-
ing experience for them.)
Chapter 07 - Management and Leadership
7-44
PPT 7-16
SWOT Matrix
SWOT MATRIX
7-16
LO 7-3
PPT 7-17
Planning Functions
PLANNING FUNCTIONS
7-17
LO 7-3
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. Manag-
ers 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
STRATEGIC and TACTICAL
PLANNING
7-18
LO 7-3
• Strategic Planning -- Done by top management
and determines the major goals of the organization
and the policies, procedures, strategies and resources
it will need to achieve them.
• Tactical Planning -- The process of developing
detailed, short-term statements about what is to be
done, who is to do it and how.
Chapter 07 - Management and Leadership
7-45
PPT 7-19
Operational and Contingency Planning
• Operational Planning -- The process of setting
work standards and schedules necessary to
implement the company
’
s tactical objectives.
OPERATIONAL and CONTINGENCY
PLANNING
7-19
LO 7-3
• Contingency
Planning -- The process
of preparing alternative
courses of action the firm
can use if its primary
plans don
’
t work out.
PPT 7-20
Decision Making
DECISION MAKING
7-20
LO 7-3
• Decision Making -- Choosing among two or more
alternatives.
PPT 7-21
What Makes a Great CEO
WHAT MAKES a GREAT CEO
Decision Making Skills of Top CEOs
7-21
LO 7-3
• Keep global business issues in mind and be a
citizen of the world.
• Identify and manage risks before they grow.
• Change strategies and models with the times.
• Skillfully manage relationships with governments
as government involvement rises.
Source:Fortune,www.fortune.com,accessedNovember2014.
1. Since the world seems to be changing at a faster pace,
it’s important for CEOs to change their processes.
2. No longer can managers think small: they must think
globally and plan for anything and everything.
