Chapter 07 Management  and  Leadership McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved Chapter Seven LEARNING GOALS Describe the changes occurring today in the  management function Describe the four functions of management Relate the planning process and decision making  to the accomplishment of company goals 7-2 Chapter Seven LEARNING GOALS Describe the organizing function of management Explain the differences between leaders and  managers, and describe the various leadership  styles Summarize the five steps of the control function of  management 7-3 Profile JOHN MACKEY Whole Foods Market • Worked at a vegetarian co­op  after attending the University of  Texas • Opened SaferWay Natural  Foods with his girlfriend before  merging with a competitor to  create Whole Foods • Now there are over 300 stores  in the U.S. and U.K.  7-4 Chapter Seven NAME that COMPANY Like many companies today, this company uses  social media to communicate with customers.  In one case, a customer complained on Twitter  when the company sent a Blackberry to  replace an iPhone that failed. The company  responded quickly with a replacement iPhone.  The customer then tweeted about the  company’s great customer service                        Name that company! 7-5 Four Functions of Management  LG1 WHAT IS MANAGEMENT? • Management ­­ The process used to accomplish  organizational goals through planning, organizing,  leading and controlling people and other  organizational resources 7-6 Managers’ Roles  Are Evolving TODAY’S MANAGERS LG1 • 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.  7-7 Managers’ Roles  Are Evolving RESPECT and HOW to GET IT LG1 30% 25% 20% 15% 10% 5% 0% 7-8 Managers’ Roles  Are Evolving LG1 EDUCATION MATTERS Examples of Alma Maters of CEOs Rank US School # of  CEOs Who? Harvard College, MA 31 Bill Gates – Microsoft (Did Not Graduate) Cornell University, NY Carl Bass - Autodesk; Mark T Bertolini - Aetna University of Pennsylvania 11 Louis D'Ambrosio - Sears Holdings Corp Massachusetts Institute of Technology 11 Drew Houston - Dropbox Northwestern University, IL 11 Lisa Caputo - Citigroup Stanford University, CA 11 Steve Ballmer - Microsoft Yale University, CT 10 William Howard Taf – US President; James McNerney - Boeing Columbia University, NY Theodore Roosevelt - US President; Ursula Burns - Xerox Princeton University, NJ Andrea Jung - Avon Products 10 Southern Methodist University, TX C David Crush – Virgin America 7-9 Four Functions of Management  LG2 FOUR FUNCTIONS of  MANAGEMENT Planning Organizing Leading Controlling 7-10 Staffing: Getting  and Keeping the  Right People LG4 STAFFING is TRICKY BUSINESS Six Sins of Staffing Don’t hire someone because someone else says so Don’t get caught up in applicants’ appearances Don’t give someone the wrong job Don’t forget about feedback Don’t give promotions just because it’s time Don’t cheat your employees 7-35 Leading: Providing  Continuous Vision  and Values LEADERSHIP LG5 Leaders must: • Communicate a vision  and rally others around  that vision • Establish corporate  values • Promote corporate  ethics • Embrace change • Stress accountability and  responsibility 7-36 To SHARE or NOT to SHARE (Making Ethical Decisions) As a first­line manager, you have new information  your department head has not 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? 7-37 Leading: Providing  Continuous Vision  and Values LG5 ACCOUNTABILITY through  TRANSPARENCY Transparency The presentation of the  company’s facts and  figures in a way that is  clear and apparent to all  allowing you to be  accountable.   7-38 Leadership  Styles LG5 LEADERSHIP STYLES Autocratic Leadership ­­ Making  managerial decisions without consulting  others Participative or Democratic  Leadership ­­ Managers and  employees work together to make  decisions Free­Rein Leadership ­­ Managers  set objectives and employees are free  to do whatever is appropriate to  accomplish those objectives 7-39 Leadership  Styles VARIOUS LEADERSHIP STYLES LG5 7-40 Leadership  Styles NATURAL BORN LEADERS? Four Types of Executives LG5 Rationalists Humanists Politicists Culturists  Source: CIO Magazine, www.cio.com 7-41 USING SOCIAL MEDIA to  BUILD CUSTOMER SUPPORT (Social Media in Business) Many companies use sites like Twitter and  Facebook to proactively and reactively  communicate with their customers Best Buy has 2,500 employees who read and  respond to consumer complaints on Twitter Many companies still are not implementing these  programs. This has led to many more complaints  via social media than positive support 7-42 Empowering  Workers EMPOWERMENT LG5 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 7-43 Empowering  Workers LG5 WORK SMARTER How to Ease Pressure on Workers Manage output instead of hours Train workers to be ready for a more  complex corporate structure Allow lower­level managers to make  decisions Use new technology to foster teamwork Shift hiring emphasis to collaboration.  Source: Bloomberg BusinessWeek, www.businessweek.com 7-44 Managing  Knowledge MANAGING KNOWLEDGE LG5 • 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 7-45 Controlling:  Making Sure it  Works FIVE STEPS of CONTROLLING LG6 Establish Clear Standards Monitor & Record Performance Compare Results Against Standards Communica te Results If Needed, Take Corrective Action Are Standards Realistic? 7-46 Controlling:  Making Sure it  Works ARE YOU a MICROMANAGER? LG6 • 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? Source: CFO Magazine, www.cfo.com 7-47 A Key Criterion  for Measurement:  Customer  Satisfaction MEASURING SUCCESS LG6 • 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 7-48 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? 7-49 ... 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? 7- 11 Planning &  Decision Making SHARING the VISION... SUPERVISORY (FIRST-LINE) MANAGEMENT Supervisors, Foremen Department Heads Section Leaders NON-SUPERVISORY Employees 7- 27 Organizing:  Creating a  Unified System MANAGEMENT LEVELS LG4 Top Management ­­ The highest level, consists of the ... University, TX C David Crush – Virgin America 7- 9 Four Functions of Management LG2 FOUR FUNCTIONS of  MANAGEMENT Planning Organizing Leading Controlling 7- 10 Progress  Assessment PROGRESS ASSESSMENT