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BUS110 Chapter 7 - Management and Leadership
The document provides an overview of management concepts including: - Indra Nooyi's background and leadership style as CEO of PepsiCo - The four main functions of management: planning, organizing, leading, and controlling - How managers' roles are evolving to emphasize teams, communication skills, and being skilled team players - Different leadership styles like autocratic, democratic, and laissez-faire - The importance of empowering workers and treating employees well
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BUS110 Chapter 7 - Management and Leadership
- 1. * * ChapterSeven Management and Leadership Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
- 2. INDRA KRISHNAMURTHY NOOYIPepsi * * Profile Started at Pepsi after earning masters degrees from the Indian School of Management and Yale. Goal was to increase sales overseas, introduce good-for-you products and place more emphasis on food. She is a top manager using a boss-centered leadership style while still being a team player. 7-
- 3. AMERICA’S MOST POWERFULFEMALE MANAGERS * * Source: Fortune Magazine, www.fortune.com , October 13, 2008. Profile 7- Name Organization Age Indra Nooyi PepsiCo 52 Irene Rosenfeld Kraft Foods 55 Pat Woertz Archer Daniel Midland 55 Anne Mulcahy Xerox 55 Angela Braly Wellpoint 47 Andrea Jung Avon 50 Susan Arnold Proctor & Gamble 54 Oprah Winfrey Harpo 54 Brenda Barnes Sara Lee 54 Ursula Burns Xerox 50
- 4. WHAT IS MANAGEMENT?* * Four Functions of Management Management -- The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources. LG2 7-
- 5. TODAY’S MANAGERS ** Managers’ Roles Are Evolving 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. LG1 7-
- 6. RESPECT and HOWto GET IT * * Source: Entrepreneur, www.entrepreneur.com , March 2009. Managers’ Roles Are Evolving LG1 7-
- 7. The BEST MANAGERS* * Source: BusinessWeek, www.businessweek.com , January 19, 2009. Managers’ Roles Are Evolving LG1 7- Name Age Organization David Axelrod 53 Obama Campaign Frank Blake 59 Home Depot Jamie Dimon 52 JPMorgan Larry Ellison 64 Oracle Takeo Fukui 64 Honda Mark Hurd 53 Hewlett-Packard Satoru Iwata 49 Nintendo Peter Loscher 51 Siemens Irene Rosenfeld 55 Kraft Foods
- 8. The WORST MANAGERS* * Source: BusinessWeek, www.businessweek.com , January 19, 2009. Managers’ Roles Are Evolving LG1 7- Name Organization What Went Wrong James Cayne Bear Stearns Played golf and bridge while the company collapsed. Richard Fuld Lehman Brothers Ignored warning signs and rewarded greed. Kerry Killinger Washington Mutual Bad lending standards led to bankruptcy. Philip Schoonover Circuit City Fired 3,400 experienced employees for cheaper replacements.
- 9. FOUR FUNCTIONS of MANAGEMENT * * Four Functions of Management P lanning O rganizing L eading C ontrolling LG2 7-
- 10. WE NEED MANAGERSHERE (Reaching Beyond Our Borders) * * The lack of professional managers is keeping U.S. companies from expanding rapidly in global markets. Flexibility is the key to successfully expanding abroad. Developing products to appeal to another market is another way to be successful. 7-
- 11. SHARING the VISION* * Planning & Decision Making Vision – Broad explanation of why the organization exists and where it’s trying to go (futuristic). LG3 7-
- 12. DEFINING THE MISSION* * Planning & Decision Making Mission Statement – Outlines organization’s fundamental purposes . The organization’s self–concept. Its philosophy. Long–term survival needs. Customer needs. Social responsibility. Nature of the product or service. LG3 7-
- 13. SETTING GOALSand OBJECTIVES * * Planning & Decision Making Goals – Broad, long-term accomplishments an organization wishes to attain. Objectives – Specific, short-term statements detailing how to achieve goals. LG3 7-
- 14. PLANNING ANSWERS FUNDAMENTAL QUESTIONS * * Planning & Decision Making What is the situation now? SWOT Analysis -- Analyzes the organization’s S trengths, W eaknesses, O pportunities and T hreats. How can we get to our goal from here? Strategic planning Tactical planning Operational planning Contingency planning LG3 7-
- 15. SWOT MATRIX ** Planning & Decision Making LG3 7-
- 16. WalMart SWOT Analysis7- Disclaimer: This case study has been compiled from information freely available from public sources. It is merely intended to be used for educational purposes only. Strengths powerful retail brand reputation for value for money, convenience and wide range of products core competence involving its use of information technology to support its international logistics system. Opportunities acquire, merge with, or form strategic alliances with other global retailers continue with its current strategy of large, super centers. Weaknesses huge span of control – makes it difficult to enforce its philosophy. may not have the flexibility of some of its more focused competitors. Although global, it has a presence in relatively few countries worldwide. Threats prime target of competition, locally and globally. exposure to political problems in the countries that you operate in. Intense price competition is a threat.
- 17. PLANNING FUNCTIONS ** Planning & Decision Making LG3 7-
- 18. PROBLEM SOLVING ** Decision Making: Finding the Best Alternative Problem Solving – Solving everyday problems that occur; less formal than decision making and needs quicker action. Problem-solving Techniques -- Brainstorming and PMI – List all pluses for a solution in one column, all minuses in another and implications in a third. LG3 7-
- 19. ORGANIZATIONAL CHARTS ** Organizing: Creating a Unified System Organization Chart -- V isual device that shows relationships among people and divides the organization’s work; it shows who reports to whom. LG4 7-
- 20. LEVELS of MANAGEMENT* * Organizing: Creating a Unified System LG4 7-
- 21. MANAGEMENT LEVELS ** Organizing: Creating a Unified System Top Management – Highest level, consists of the president and other key company executives who develop strategic plans. Middle Management – General managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling. Supervisory Management – Directly responsible for supervising workers and evaluating daily performance. LG4 7-
- 22. TOP MANAGEMENT ** Organizing: Creating a Unified System 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. LG4 7-
- 23. MANAGERIAL SKILLS ** Technical Skills -- The ability to perform tasks in a specific discipline or department. Tasks and Skills at Different Levels of Management LG4 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. 7-
- 24. SKILLS NEEDED atVARIOUS LEVELS of MANAGEMENT * * Tasks and Skills at Different Levels of Management LG4 7-
- 25. LEADERSHIP * *Leading: Providing Continuous Vision and Values. Leaders must: Communicate a vision and rally others around that vision. Establish corporate values . Promote corporate ethics . Embrace change . Stress accountability and responsibility. LG5 7-
- 26. LEADERSHIP STYLES ** Leadership Styles Autocratic Leadership – “Self” Making managerial decisions without consulting others. Participative or Democratic Leadership – “Others” Managers and employees work together to make decisions. Free-Rein Leadership – “Laissez-faire” Managers set objectives; employees are free to do whatever is appropriate to accomplish those objectives. LG5 7-
- 27. VARIOUS LEADERSHIP STYLES* * Leadership Styles LG5 7-
- 28. EMPOWERMENT and ENABLING* * Empowering Workers Empowerment -- Progressive leaders give employees 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. LG5 7-
- 29. WORK SMARTER Howto Ease Pressure on Workers * * Source: BusinessWeek, www.businessweek.com . 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. Empowering Workers LG5 7-
- 30. MANAGING KNOWLEDGE ** Managing Knowledge Knowledge Management -- Finding the right information, keeping the information in a readily accessible place and making the information known to every one in the firm. LG5 7-
- 31. FIVE STEPS ofCONTROLLING * * Controlling: Making Sure it Works LG6 7-
- 32. ARE YOU aMICROMANAGER? * * Source: CFO Magazine, www.cfo.com . 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? Controlling: Making Sure it Works LG6 7-
- 33. MEASURING SUCCESS ** A Key Criterion for Measurement: Customer Satisfaction Traditional forms of measuring success are financial. Pleasing employees, stakeholders and customers (both internal and external) are 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. LG6 7-
- 34.
- 35. PROGRESS ASSESSMENT ** Progress Assessment What’s 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 seven Ds in decision making? 7-
- 36. STAFFING * *Staffing: Getting and Keeping the Right People Staffing -- Recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives. Recruiting good employees is critical. Many people are not willing to work at companies unless they are treated well with fair pay. LG4 7-
- 37. LAYOFF LEADERS LargestLayoff Announcements, 1993 to 2008 * * Source: Businessweek, www.businessweek.com , December 1, 2008. Staffing: Getting and Keeping the Right People LG4 7- Company Employees Date IBM 60,000 July 1993 Citigroup 53,000 November 2008 Sears Roebuck 50,000 January 1993 U.S. Air Force 40,000 December 2005 Ford 35,000 January 2002 Kmart 35,000 January 2003 Boeing 31,000 September 2001 U.S. Postal Service 29,870 January 2002 Boeing 28,000 December 1998 DaimlerChrysler 26,000 January 2001
- 38. ACCOUNTABILITY through TRANSPARENCY* * Leading: Providing Continuous Vision and Values. Transparency -- The presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders. LG5 7-
- 39. To SHARE orNOT to SHARE (Making Ethical Decisions) * * 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? 7-
- 40. NATURAL BORN LEADERS?Four Types of Executives * * Source: CIO Magazine, www.cio.com . Leadership Styles LG5 7- Rationalists Humanists Politicists Culturists
- 41. PROGRESS ASSESSMENT ** Progress Assessment How does enabling help achieve empowerment? What are the five steps in the control process? What’s the difference between internal and external customers? 7-
- 42. I’D RATHER beBLUE (Spotlight on Small Business) * * The original “Blue Men” manage over 500 employees; 70 are performers in 12 cities. Creators wrote a 132-page Blue Man manual helping them understand the importance of managing growth. 7-
Editor's Notes
- #4 See Learning Goal 1: Describe the changes occurring today in the management function. America’s Most Powerful Female Managers This slide illustrates the rising number of females that are in positions of power in Fortune 500 companies. What characteristics do some women have that help them manage people? Why are women often a bit older when they rise to management positions? ( Take time off to care for family )
- #5 See Learning Goal 1: Describe the changes occurring today in the management function.
- #6 See Learning Goal 1: Describe the changes occurring today in the management function. As the demographic make-up of this country changes the typical manager is changing. Today more managers are women and less are from elite universities. Managers today act more like facilitators than supervisors.
- #7 See Learning Goal 1: Describe the changes occurring today in the management function. Respect and How to Get It Ask students: Why do you respect or not respect a manager? (This question is certainly going to develop a discussion among students in class) This slide presents the results from a study conducted by www.entrepreneur.com. Critical questions to ask the students: In your opinion why did sound business strategy and ethical practices rank so high in the study?
- #8 See Learning Goal 1: Describe the changes occurring today in the management function. The Best Managers This slide presents the results from a survey conducted on www.businessweek.com Management’s role is evolving requiring managers to be more progressive. Critical questions to ask the students: What roles must managers assume that are different from those assumed by managers in the past? (Answers will vary but should include terms from the text such as guide, train, support, motivate, and coach employees)
- #9 See Learning Goal 1: Describe the changes occurring today in the management function. The Worst Managers This slide is a continuation from the last slide. Ask students: What makes a manager ineffective? (This question will get students talking about their personal experiences in the workforce)
- #10 See Learning Goal 2: Describe the four functions of management. Management is the process used to accomplish organizational goals through the four functions of management. The four functions of management are planning, organizing, leading and controlling.
- #11 See Learning Goal 2: Describe the four functions of management.
- #12 See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals. Creating vision for the company is not merely setting a goal but rather creating a sense of purpose for the organization.
- #13 See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals. The mission statement is the foundation for setting specific goals and objectives within the organization.
- #14 See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
- #15 See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals. SWOT is an acronym for Strengths, Weaknesses, Opportunities, 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 environmental 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 opening experience for them.)
- #16 See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
- #18 See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals. This slide covers the key areas of planning by business managers. Students should be reminded that planning requires 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.
- #19 See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
- #20 See Learning Goal 4: Describe the organizing function of management.
- #21 See Learning Goal 4: Describe the organizing function 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 typically develop the strategies for goal attainment and develop the tactics necessary to achieve stated goals. Middle managers require good analytical skills and the ability to communicate. First-line managers are responsible for execution of business plans. Technical skills and good communications skills are necessary.
- #22 See Learning Goal 4: Describe the organizing function of management.
- #23 See Learning Goal 4: Describe the organizing function of management.
- #24 See Learning Goal 4: Describe the organizing function of management.
- #25 See Learning Goal 4: Describe the organizing function of management. The further up the managerial ladder one moves, the less important technical job skills become.
- #26 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
- #27 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles. 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.
- #28 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
- #29 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
- #30 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles. Work Smarter Managing in today’s complex environment is about leading not supervising. This slide gives students insight into the process of empowering employees to work smarter. Ask students: What are the benefits of empowering employees to work smarter? (Employees who are empowered should be more motivated and able to handle more complex tasks)
- #31 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
- #32 See Learning Goal 6: Summarize the five steps of the control function of management. This slide presents the five steps of the control function. It should be pointed out to the students that the whole control process is based on clear standards. The control function 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.
- #33 See Learning Goal 6: Summarize the five steps of the control function of management. Are You a Micromanager? This slide presents a list of questions a manager can ask himself/herself to determine if he/she is a micromanager. If you answer yes to any of these five questions, you are a micromanager. Managers can ask a trusted employee for honest feedback. Ask the students: Have they ever worked for a micromanager? How did it make them feel and how did other employees feel? Do the students have the tendency of thinking 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 micromanaging tendencies.)
- #34 See Learning Goal 6: Summarize the five steps of the control function of management.
- #36 1. What’s the difference between goals and objectives? Goals are broad, long-term accomplishments an organization wishes to attain. Objectives are specific, short-term statements detailing how the organization will achieve the organization’s goals. 2. What does a company analyze when it does a SWOT analysis? 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. What are the differences between strategic, tactical and operational planning? Strategic planning is the process top management uses 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 organization 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 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: 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 implementation. Determine whether the decision was a good one and follow up.
- #37 See Learning Goal 4: Describe the organizing function of management.
- #38 See Learning Goal 4: Describe the organizing function of management. Layoff Leaders This slide is illustrates the companies with the largest number of layoffs between 1993-2008. Many of the companies listed (Boeing and Ford) have had to layoff employees at times other than the time listed in this slide. What causes companies to have to lay people off? How does a company determine who stays and who goes?
- #39 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
- #40 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
- #41 See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles. Four Leadership Types Ask the students: Does your personality reveal how you think and work? Can it be improved? (Tests such as Myers-Briggs profile individuals’ personalities.) 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 politics. Humanists, who are attuned to organizational moods and regard people as a company’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 attributes. (Source: CIO, November 1, 2003)
- #42 1. How does enabling help achieve empowerment? Enabling is the key to successfully empowering employees. Enabling means giving workers the education and the tools they need to make decisions. 2. What are the five steps in the control process? Controlling incorporates: (1) setting clear standards, (2) monitoring and recording performance, (3) comparing 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 necessary. 3. What’s the difference between internal an external customers? Not all customers come from outside the organization. Internal customers are defined as individuals and business units within the firm that receive services 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.
- #43 See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.