* * * Management, Leadership, and Empowerment Nickels * McGraw-Hill/Irwin Understanding Business, 8e McHugh * * CHAPTER ** 7 McHugh 1-1 7-1 © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. * * * New Management Roles • Skilled communicator • Team player and a planner • Coordinator • Organizer • Supervisor 7-2 * * * New Management I. MANAGERS’ ROLES ARE EVOLVING. Learning goal 1 Explain how the changes that are occurring in the business environment are affecting the management function. 7-3 * * * New Management II.FUNCTIONS OF MANAGEMENT. Learning goal 2 Describe the four functions of management. 7-4 * * * III. PLANNING: CREATING A VISION BASED ON VALUES. Learning goal 3 Relate the planning process and decision making to the accomplishment of company goals. A. Decision Making: Finding the Best Alternative. 7-5 * * * New Management IV. ORGANIZING: CREATING A UNIFIED SYSTEM. Learning goal 4 Describe the organizing function of management. A. Tasks and Skills at Different Levels of Management. B. The Stakeholder-Oriented Organization. C. Staffing: Getting and Keeping the Right People. 7-6 * V. LEADING: PROVIDING * AND VALUES * CONTINUOUS VISION . Learning goal 5 Explain the differences between leaders and managers, and describe the various leadership styles. A. Leadership Styles. B. Empowering Workers. C. Managing Knowledge. 7-7 * * * VI. CONTROLLING: MAKING SURE IT WORKS . Learning goal 6 Summarize the five steps of the control function of management. A New Criterion for Measurement: Customer Satisfaction. 7-8 * * * N Managers get things done by using organizational resources. At one time, managers were called BOSSES, and their job was to tell people what to do. Today, managers must GUIDE, TRAIN, SUPPORT, MOTIVATE, and COACH EMPLOYEES rather than TELLING them what to do. 7-9 * * * N 7-10 * * * N 7-11 * * * N 7-12 * * * N 7-13 * * * Managing for the Future 1. 2. 3. 4. 5. 6. 7. 8. Prepare for the unexpected Faster reaction times Flatter structure Build teams Grow globally Develop cultural sensitivity Invest in technology Develop a family work atmosphere 9. Create vision 10. Enhance competencies 7-14 * * * Managing Prepare for the unexpected 7-15 * * * Management Functions • Planning • Organizing • Leading • Controlling 7-16 * * * PLANNING PLANNING includes anticipating future trends and determining the best strategies and tactics to achieve organizational goals and objectives. The trend today is to have PLANNING TEAMS monitor the environment. Planning is called the KEY MANAGEMENT FUNCTION because the other functions depend on having a good plan Planning 7-17 * * * ORGANIZING ORGANIZING includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives. Many organizations today are DESIGNED AROUND THE CUSTOMER. Organizations must remain flexible and adaptable to respond to customers’ changing needs. 7-18 * * * Management Functions • Planning • Organizing • Leading • Controlling 7-19 * * * Management Functions • Planning • Organizing • Leading • Controlling 7-20 * * * Planning: Create Vision • Set Vision, Goals, Objectives • Vision and Mission – • Objectives – Specific, Short-Term • Continuous Process (SWOT) Why Organization Exists, Purpose of Organization • Goals – Broad, LongTerm 7-21 * * * Questions of Planning 1. What is the situation now? • Where do we want to go? 2. How can we get there from here? • • • • Strategic Planning Tactical Planning Operational Planning Contingency Planning 7-22 * * * SWOT Analysis Potential Internal STRENGTHS Potential Internal WEAKNESSES Potential External OPPORTUNITIES Potential External THREATS 7-23 * * * Planning Functions 7-24 * * * Decision Making: Steps 1. Define 7. Determine 2. Describe Decision Making 6. Do 5. Decide 3. Develop Alternatives 4. Develop Agreements 7-25 * * * Organizing • Skills/Tasks • Stakeholders • Staffing 7-26 * * * Management Pyramid President, Division Heads, Plant Mgrs. Vice Pres. Top Management Middle Management Employees Foreman, Dept Heads Supervisory (First-Line) Non-supervisory 7-27 * * * Required Management Skills • Technical Skills • Human Relations Skills • Conceptual Skills 7-28 * * * Is It Difficult to be a Leader Today? Less Challenging (1%) Don’t Know (1%) No Change (9%) More Challenging (89%) Source: USA Today 7-29 * * * Successful Leadership • Communicate a Vision • Establish Corporate Values • Promote Corporate Ethics • Embrace Change 7-30 * * * Leadership Styles • Autocratic • Participative (Democratic) • Free-rein 7-31 * * * Four Leadership Types • Rationalists • Humanists • Politicists • Culturists Source: CIO Nov 2003 7-32 * * * Autocratic Leadership Making managerial decisions without consulting others 7-33 * * * Participative Leadership • Democratic • Managers and employees working together to make decisions 7-34 * * * Free-rein Leadership • Managers set objectives • Employees are relatively free to do whatever it takes to accomplish those objectives 7-35 * * * Empowering Employees • Empowerment: Giving employees the authority and responsibility to make decisions. • Enabling: Giving workers the education tools needed to make decisions. 7-36 * * * Manager’s Empowerment Checklist • TARGET • TRUTH • TOOLS • TRACKING • TRAINING • TOUCH • TIME • TRUST Source: Empowerment Checklist, Cathcart Institute, 2004, www.cathcart.com. 7-37 * * * Knowledge Management • Do you want to know • What do I still not more about your know? customers? • What about competition? • Whom should I be asking? • What information would make the company more effective in the marketplace? 7-38 * * * Controlling Feedback Are standards realistic? 5. If needed, take corrective action 4. Communicate results 1. Establish clear standards 2. Monitor and record performance 3. Compare results against standards 7-39 * * * Are You a Micromanager? • Do you have strategic initiatives that you have not addressed? • Do you often check on your employees for quality control? • Do you often check on your subordinates throughout the day? • Do you seldom take a vacation? • Is there a lot of turnover? Did you answer YES to any question? Source: CFO May 2005 7-40 * * * Most Critical Trends, Management Concerns • • • • • Globalization Improving Knowledge Management Cost and Cycle Time Reduction Improving Global Supply Chains Manufacturing at Multiple Locations and in Many Countries • Managing More Part-time, Temporary and Contract Workers Source: Quality Digest 2004 7-41