Chapter 07 – Management and Leadership
7-46
PPT 7-22
Rational Decision-Making Model
RATIONAL DECISION-MAKING
MODEL
7-22
LO 7-3
1. Define the situation.
2. Describe and collect needed information.
3. Develop alternatives.
4. Decide which alternative is best.
5. Do what is indicated.
6. Determine whether the decision was a good one
and follow up.
Managers don’t always go through this seven step pro-
cess. However, they must always make sound decisions. It
is easier said than done. As an interesting exercise, you
can ask the students, working in a group, 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 pro-
duce different, but interesting experiences for students.
PPT 7-23
Problem Solving
PROBLEM SOLVING
7-23
LO 7-3
• Problem Solving — The process of solving the
everyday problems that occur; less formal than
decision making and needs quicker action.
• Problem-solving techniques include brainstorming
and PMI — Listing all the pluses for a solution in one
column, all the minuses in another and the
implications in a third.
Chapter 07 – Management and Leadership
PPT 7-24
Test Prep
TEST PREP
7-24
• What is the difference between goals and
objectives?
• What does a company analyze when it does a
SWOT analysis?
• What are the differences between strategic,
tactical and operational planning?
• What are the six Ds in decision making?
1. Goals are broad, long-term accomplishments an or-
ganization wishes to attain. Objectives are specific,
short-term statements detailing how the organization
will achieve the organization’s 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 organization’s
strengths, weaknesses, opportunities and threats.
3. Strategic planning is the process top management us-
es to determine the major goals of the organization,
and the policies, procedures, strategies, and resources
the organization will need to achieve them. Tactical
planning is the process of developing detailed, short-
term statements about what is to be done, who is to
do it, and how. This type of planning is typically
completed by managers at lower levels of the organi-
zation whereas strategic planning is done by the top
managers. The final type of planning is operational.
Operational planning is the process of setting work
schedules and standards necessary to complete the
organization’s tactical objectives. This type of plan-
ning is the department manager’s tool for daily and
weekly operations
4. What are the seven Ds in decision making? The sev-
en Ds in decision making are as follows:
• Define the situation.
• Describe and collect needed information.
• Develop alternatives.
• Develop agreement among these involved.
• Decide which alternative is best.
• Do what is indicated and start the implemen-
tation.
• Determine whether the decision was a good
one and follow up.
Chapter 07 – Management and Leadership
7-48
PPT 7-25
Levels of Management
LEVELS of MANAGEMENT
7-25
LO 7-4
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 typically develop the strategies for goal attain-
ment and develop the tactics necessary to achieve stated
goals. Middle managers require good analytical skills and
the ability to communicate. First–line managers are re-
sponsible for execution of business goals. Technical skills
and good communications skills are necessary.
PPT 7–26
Management Levels
MANAGEMENT LEVELS
7-26
LO 7-4
• Top Management — The highest level, consists of
the president and other key company executives who
develop strategic plans.
• Middle Management — Includes general managers,
division managers, and branch and plant managers
who are responsible for tactical planning and
controlling.
• Supervisory Management — Those directly
responsible for supervising workers and evaluating
daily performance.
PPT 7-27
Top Management
TOP MANAGEMENT
7-27
LO 7-4
• Chief Executive Officer (CEO)
– Introduces change into an organization.
• Chief Operating Officer (COO)
– Implements CEO
’
s changes.
• Chief Financial Officer (CFO)
– Obtains funds, plans budgets, collects funds, etc.
• Chief Information Officer (CIO)
– Gets the right information to the right people so
decisions can be made.
Sometimes the CIO is referred to as the Chief Knowledge
Officer (CKO).
Chapter 07 – Management and Leadership
7-49
PPT 7-28
America’s Most Powerful Female Man-
agers
Source:FortuneMagazine,www.fortune.com,accessedNovember2014.
AMERICA’S MOST POWERFUL
FEMALE MANAGERS
7-28
Rank Name Organization
1 Ginni Rometty IBM
2Mary Barra GM
3 Indra Nooyi PepsiCo
4Marillyn Hewson Lockheed Martin
5Meg Whitman Hewlett-Packard
6 Irene Rosenfeld Mondelez International
7Patricia Woertz Archer Daniels Midland
8Abigail Johnson Fidelity
9Ellen Kullman DuPont
10 Sheryl Sandberg Facebook
LO 7-4
1. This slide illustrates the rising number of women that
are in positions of power in Fortune 500 companies.
2. What characteristics do some women have that help
them manage people?
PPT 7-29
Managerial Skills
MANAGERIAL SKILLS
7-29
LO 7-4
• Technical Skills — The ability to perform tasks in a
specific discipline or department.
• Human Relations Skills — Skills that involve
communication and motivation; they enable managers
to work through and with people.
• Conceptual Skills — Skills that involve the ability to
picture the organization as a whole and the relationship
among its various parts.
PPT 7-30
Skills Needed at Various Levels of
Management
The further up the managerial ladder one moves, the less
important technical job skills become, and the more im-
portant conceptual skills are.
Chapter 07 – Management and Leadership
7-50
PPT 7-31
Thank You
1. Customers, staff and outside support are hard to keep
happy. Who’d have thought a simple act our moms
taught us would be so useful?
2. A 10-year study by Adrian Gostick and Chester Elton
found that among a survey of 200,000 managers and
employees “thank yous” correlate with higher profits
yet 30% still don’t say it.
3. Ask students: Why is a simple “thank you” such a
powerful managerial tool?
PPT 7-32
Back to School for Top Managers
BACK to SCHOOL for
TOP MANAGERS
7-32
• Business leaders need to study international
political, legal, and regulatory systems.
• Each local market requires their own set of global
standards.
• Some companies, like Coca-Cola, Nestle, and
IBM have done a noteworthy job of assessing and
understanding global challenges.
PPT 7-33
Staffing
• Staffing — Recruiting, hiring, motivating and
retaining the best people available to accomplish the
company
’
s objectives.
STAFFING
7-33
LO 7-4
• Recruiting good
employees is critical.
• Many people are not
willing to work at
companies unless they
are treated well with fair
pay.
Chapter 07 – Management and Leadership
7-51
PPT 7-34
Staffing Is Tricky Business
Source:CareerBuilder,www.careerbuilder.com,accessedNovember2014.
STAFFING is TRICKY BUSINESS
Six Sins of Staffing
7-34
LO 7-4
1. Don’t hire someone because someone else says so.
2. Don’t get caught up in applicants’ appearances.
3. Don’t give someone the wrong job.
4. Don’t forget about feedback.
5. Don’t give promotions just because it
’
s time.
6. Don’t cheat your employees.
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 students: Why do you think a manager should not
promote a long-time employee because it’s time or
they owe a favor? What’s so important about feed-
back?
PPT 7-35
Leadership
LEADERSHIP
7-35
LO 7-5
• Leaders must:
– Communicate a vision
and rally others around
that vision.
– Establish corporate
values.
– Promote corporate ethics.
– Embrace change.
– Stress accountability and
responsibility.
PPT 7-36
What Do You Tell the Team?
WHAT DO YOU TELL the TEAM?
7-36
As a first-line manager, you have new information
that your department head hasn’t seen yet. The
findings of the report indicate your manager’s
plans should fail. If they do fail, you could be
promoted.
Will you give your department head the report?
What is the ethical thing to do?
What might be the consequences?
Chapter 07 – Management and Leadership
7-52
PPT 7-37
Accountability through Transparency
ACCOUNTABILITY through
TRANSPARENCY
7-37
LO 7-5
• Transparency — The
presentation of the
company
’
s facts and
figures in a way that is
clear and apparent to all
stakeholders.
PPT 7-38
Leadership Styles
LEADERSHIP STYLES
7-38
LO 7-5
• Autocratic Leadership —
Making managerial decisions
without consulting others.
• Participative or Democratic
Leadership — Managers and
employees work together to
make decisions.
• Free-Rein Leadership —
Managers set objectives and
employees are free to do
whatever is appropriate to
accomplish those objectives.
Research tells us 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 organi-
zation may not be successful in another.
PPT 7-39
Various Leadership Styles
VARIOUS LEADERSHIP STYLES
7-39
LO 7-5
Chapter 07 – Management and Leadership
7-53
PPT 7-40
Natural Born Leaders?
NATURAL BORN LEADERS?
Four Types of Executives
Rationalists Humanists
Politicists Culturists
7-40
LO 7-5
1. Ask the students, Does your personality reveal how
you think and work? Can it be improved? (Tests such
as Myers-Briggs profile individuals’ personalities.)
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 ac-
complish tasks.
• Politicists, who view group dynamics from a
power perspective and are adept at politics.
• Humanists, who are attuned to organizational
moods and regard people as a company’s top
asset.
• Culturists, who consider culture the preemi-
nent force in an organization and communi-
cate 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 attributes.
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.
Chapter 07 – Management and Leadership
7-54
PPT 7-42
Work Smarter
Source:BloombergBusinessWeek,www.businessweek.com,accessedNovember2014.
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.
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 empower-
ing employees to work smarter? (Employees who are
empowered should be more motivated and able to
handle more complex tasks.)
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.
PPT 7-44
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.
Chapter 07 – Management and Leadership
7-55
PPT 7-45
Five Steps of Controlling
FIVE STEPS of CONTROLLING
7-45
LO 7-6
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
foundations for control systems, because they provide the
numbers management needs to evaluate progress.
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?
1. This slide presents a list of questions a manager can
ask himself/herself to determine if he/she is a mi-
cromanager.
2. If you answer yes to any of these five questions, you
are a micromanager. Managers can ask a trusted em-
ployee 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 of thinking that if
they want something done right, they must do it them-
selves or constantly check on others’ work in a team
situation? (It may indicate some of the micromanaging
tendencies.)
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.
Chapter 07 – Management and Leadership
7-56
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?
1. Enabling is the key to successfully empowering em-
ployees. Enabling means giving workers the educa-
tion and the tools they need to make decisions.
2. Controlling incorporates: (1) setting clear standards,
(2) monitoring and recording performance, (3) com-
paring performance with plans and standards, (4)
communicating results and deviations to employees,
and (5) providing positive feedback for a job well
done and taking corrective action when 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 reports
for them. External customers are more traditional
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
7-57
lecture
enhancers
“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 enhancer 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
power as a bad boss to unnerve you and wreak havoc on your sense of self-esteem. This is why it is com-
monly said that people don’t quit jobs, they quit bosses. What makes for a bad boss? Some are just plain
nasty, but often a bad boss is all in the eye of the beholder. One person’s boss from hell may be another
person’s pin-up.
The key to getting on with a boss is to manage him or her by understanding the boss’s underlying
motivations, which may be different than you think. Here are some common types of bad bosses, their
motivations, and strategies for dealing with them.
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
simply wants to be liked by everyone and can’t stand conflict. It’s also possible she’s too busy to under-
stand when there is a problem or too burned out to care. Frequently, such managers are reluctant to be
managers at all, and would much rather be doing their own work. They may also be ill-trained and lacking
management skills.
If you are dealing with a weak manager, identify the problem. For example, if your manager
needs to be liked by everyone, avoid communications that suggest contentious or highly charged emo-
tional issues. Where you can, solve conflicts yourself. If her problem is that she is spineless and refuses to
take on any leadership role, consider talking to your boss’s boss.
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.
Chapter 07 – Management and Leadership
7-58
The Political Manager
He has an unerring ability to know what will make him look good. He will go to bat for you only
on issues that serve his political agenda. He’s sneaky and plays favorites. He won’t think twice about us-
ing you as a sacrificial lamb to support his own career goals.
Support his high need for recognition by making him look good on strategic projects. Focus your
own efforts on “high-value” work. Be prepared to share the limelight, even if it kills you. Don’t trust him
to have your own interests at heart. Pitch him on work you want to do by emphasizing its profile and im-
portance to senior management.
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-
pletely demotivated and have lost your sense of competence. Why is she so untrusting? Is she anxious
about failing to please her boss, or is she simply a control freak? If the problem is her own insecurity, an-
ticipate issues that will make her anxious by reassuring her that you have covered all the bases. Say, for
example, “in completing this I spoke to Jane Doe and took the following issues into account. . . .” Write it
down as well, as she may be too anxious to fully process what you are saying.
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
underlying motivations of the weak manager. She may be invisible because she’s too busy, or is a reluc-
tant or unskilled manager. If she is pressed for time, do your homework before you meet with her to make
the meeting as efficient as possible. Give yourself direction and feedback by setting milestones and regu-
larly evaluating your effectiveness against them. Establish a mechanism for getting direction, whether it
be weekly or monthly meetings at an agreed time. Hold her to her commitment.
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-
ior on the people around him. Is he aware of your workload? If you’ve talked to him and he still doesn’t
get it, create your own standards for evaluating what is realistic and doable. Don’t be apologetic about
wanting time for a personal life. Work–life balance is your right, not a privilege. If your organization
wants to “be an employer of choice,” remind your boss of the incongruity between policy and behavior.
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?
Regardless of what type of boss you have, your first line of defense is to speak to him, as he may
not be aware of his behavior. Don’t make sweeping generalizations about his personality. Rather talk to
the specific behavior in question and tell him how it makes you feel. You can soften your comments and
avoid defensiveness by allowing your boss to save face. Introduce your statements with “You may not be
aware . . .” or “You may not realize . . .” or “You may not intend. . . .”
If none of these strategies work, you have two choices. If you have good personal reasons for
staying in your job—you love your work, you’re learning a lot, you like the people you’re working
with—you can hold your nose and ignore your boss as best you can. Or, you can quit: Use the experience
to learn and then move on.i
Chapter 07 – Management and Leadership
7-59
lecture enhancer 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. As we are 15 years into
the 21st century, what business leaders do you foresee being added to this century’s list? 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)
15. Henry R. Luce (Time-Life Publications)
16. Will K. Kellogg (Kellogg)
17. Warren E. Buffett (Berkshire Hathaway)
18. Harland Sanders (Kentucky Fried Chicken)
19. William C. Procter (Procter & Gamble)
20. Thomas J. Watson Sr. (IBM)
21. Asa G. Candler (Coca-Cola)
22. Estee Lauder (Estee Lauder)
23. Henry J. Heinz (H. J. Heinz)
24. Daniel F. Gerber Jr. (Gerber Products)
25. James L. Kraft (Kraft Foods)
Chapter 07 – Management and Leadership
7-60
lecture enhancer 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 by 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
to add the most jobs in the next eight years. And though women as a whole still earn less than men, that
pay gap is finally closing in some key areas. A survey of childless city–dwelling single people in their
mid-20s found that women are outearning men in metropolises like Atlanta and New York City. Many of
these gains are the product of increased education. For every two men who graduate from college or attain
a higher-level degree, three women do the same.
Marketing to this new crop of highly educated, independent women is a tricky task. Dell, for ex-
ample, took a big misstep when it introduced Della, a dreamy, pink-laced website that highlighted the
brand’s “cute” laptops and offered tips on tracking calories. Within 10 days Dell took the website down
after a deluge of criticism burst forth from the Twitterverse. The auto repair chain Midas, on the other
hand, may have discovered a surefire way to attract and retain female customers. The discerning, cash–
flush woman of today wants to know exactly what she is buying, unlike men who traditionally target a
product need and fulfill it swiftly. So Midas developed a system dubbed G.E.T. (Greet, Explain, Thank)
that would include women in the process of getting their car fixed. Even a standard oil change would
come with a complete rundown of exactly what the mechanics were checking and adjusting. Though the
G.E.T. system has been tested extensively only in Philadelphia, sales in that market are up 13% from De-
cember 2009, the month Midas implemented the system.iii
lecture enhancer 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 enhancer 7-2, Best Business Leaders of the 20th
Century.)
Nohria and Mayo also identified three leadership types—the entrepreneurial leader, the leader as
manager, and the charismatic leader. They found that all three types exhibited what they called “contextu-
al intelligence,” the acute sensitivity to the social, political, technological, and demographic contexts that
defined their eras.