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THE FUTURE OF BUSINESSGitman & McDaniel
5th Edition
THE FUTURE OF BUSINESSGitman & McDaniel
5th Edition
Chapter7
Management and Leadership in Today’s Organizations
Management and Leadership in Today’s Organizations
Prepared byDeborah Baker
Texas Christian University
Prepared byDeborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2Ch
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1 What is the role of management?
2 What are the four types of planning?
3 What are the primary responsibilities of managers in organizing activities?
4 How do leadership styles influence a corporate culture?
5 How do organizations control activities?
6 What roles do managers take on in different organizational settings?
7 What set of managerial skills is necessary for managerial success?
8 What trends will affect management in the future?
Learning Goals
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Learning Goal 1
What is the role of management?
1
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The Role of Management1
The process of guiding the development, maintenance, and
allocation of resources to attain
organizational goals.
The process of guiding the development, maintenance, and
allocation of resources to attain
organizational goals.
ManagementManagement
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The Managerial Process1
ManagerialProcess
Cycle
Anticipating
Problems
Coordinatin
g
Resources
GuidingPersonnel
Reviewing/
Changing
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Managerial Work Activities1
Planning
Organizing
LeadingControlling
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2 Learning Goal 2
What are the four typesof planning?
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2 Four Types of Planning
OperationalOperationalOperationalOperational
StrategicStrategicStrategicStrategic
TacticalTacticalTacticalTactical
ContingencyContingencyContingencyContingency
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2 Strategic Planning
StrategicStrategicStrategicStrategic
1-5 years1-5 years
Top managementTop management
External environment and entire organizationExternal environment and entire organization
Establish mission and long-term goalsEstablish mission and long-term goals
Broad and general contentBroad and general content
High degree of uncertaintyHigh degree of uncertainty
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2 Mission Statement
A formal document that states an organization’s purpose and reason forexisting and describesits basic philosophy.
A formal document that states an organization’s purpose and reason forexisting and describesits basic philosophy.
Mission StatementMission Statement
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2 Ben & Jerry’s Mission Statement
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2 Tactical Planning
Less than one yearLess than one year
Middle managementMiddle management
Strategic business unitsStrategic business units
Establish mid-range goals for implementationEstablish mid-range goals for implementation
More specific contentMore specific content
Moderate degree of uncertaintyModerate degree of uncertainty
TacticalTacticalTacticalTactical
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2 Operational Planning
Current time frameCurrent time frame
Supervisory managementSupervisory management
Geographical and functional divisionsGeographical and functional divisions
Implement and activate specific objectivesImplement and activate specific objectives
Specific and concrete contentSpecific and concrete content
Reasonable degree of certaintyReasonable degree of certainty
OperationalOperationalOperationalOperational
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2 Contingency Planning
When an event occurs or situation demandsWhen an event occurs or situation demands
Top and middle managementTop and middle management
External environment and entire organizationExternal environment and entire organization
Meet unforeseen challenges and opportunitiesMeet unforeseen challenges and opportunities
Both broad and detailed contentBoth broad and detailed content
Reasonable degree of certainty Reasonable degree of certainty
ContingencyContingencyContingencyContingency
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3 Learning Goal 3
What are the primary responsibilitiesof managers in organizing activities?
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3 Organizing
LicensingLicensing (departmentalization)(departmentalization)
ContractManufacturing
ContractManufacturing (delegation)(delegation)
Dividing up tasksDividing up tasks (division of labor) (division of labor)
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3 Levels of a Managerial Hierarchy
Middle Middle ManagementManagement
Top Top ManagementManagement
Supervisory Supervisory ManagementManagement
Strategic PlansStrategic Plans
Tactical PlansTactical Plans
Operational PlansOperational Plans
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3 Levels of a Managerial Hierarchy
Middle Management
Supervisory Management
Top Management
CEO
President
Governor
General Director
Regional Manager
Division head
Director
Plant manager
Sales manager
Supervisor
Team leader
Foreman
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4
How do leadership stylesinfluence a corporate
culture?
Learning Goal 4
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4 Leadership
The process of guiding and motivating others
toward the achievementof organizational goals.
The process of guiding and motivating others
toward the achievementof organizational goals.
LeadershipLeadership
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4 Primary Sources of Power
Referent powerReferent power
Expert powerExpert power
Coercive powerCoercive power
Reward powerReward power
Legitimate powerLegitimate power
Derived from individual’s charisma and respect/admiration inspired
Derived from individual’s charisma and respect/admiration inspired
Derived from individual’s extensive knowledge
Derived from individual’s extensive knowledge
Derived from individual’s ability tothreaten negative outcomes
Derived from individual’s ability tothreaten negative outcomes
Derived from individual’s control over rewards
Derived from individual’s control over rewards
Derived from individual’s positionin an organization
Derived from individual’s positionin an organization
Derived from individual’s positionin an organization
Derived from individual’s positionin an organization
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4 Leadership Styles
Autocratic StyleAutocratic Style Participative StyleParticipative Style Free-Rein(Laissez-Faire) Style
Free-Rein(Laissez-Faire) Style
Amount of authority held by the leader
Amount of authority held by group members
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4 Participative Leadership
ConsultativeConsultative
ConsensualConsensual
DemocraticDemocratic
ParticipativeParticipativeLeadershipLeadership
TypesTypes
ParticipativeParticipativeLeadershipLeadership
TypesTypes
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4 Empowerment
The process of givingemployees increased
autonomy and discretionto make decisions, as
well as control over theresources needed to
implement those decisions.
The process of givingemployees increased
autonomy and discretionto make decisions, as
well as control over theresources needed to
implement those decisions.
EmpowermentEmpowerment
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4 Corporate Culture
The set of attitudes, values, and standards that distinguishes one
organization from another.
The set of attitudes, values, and standards that distinguishes one
organization from another.
Corporate CultureCorporate Culture
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How do organizations How do organizations control activities?control activities?
How do organizations How do organizations control activities?control activities?
5 Learning Goal 5
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5
1.
Set performance standards and goals
2. Measure performance
3.Compare actual performanceto established standards
4.Takecorrectiveaction
5. Use informationto set up futureperformance standards
The Control Process
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6
What roles do managers take on inWhat roles do managers take on indifferent organizational settings?different organizational settings?
What roles do managers take on inWhat roles do managers take on indifferent organizational settings?different organizational settings?
Learning Goal 6
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66
Informational RolesInformational Roles
MonitorMonitor
DisseminatorDisseminator
SpokespersonSpokesperson
Interpersonal RolesInterpersonal Roles
FigureheadFigurehead
LeaderLeader
LiaisonLiaison
Decisional RolesDecisional Roles
EntrepreneurEntrepreneur
Disturbance HandlerDisturbance Handler
Gathers information relevant to organizationGathers information relevant to organization
Provides information where it is neededProvides information where it is needed
Transmits information to people outside the organizationTransmits information to people outside the organization
Represents the company in a symbolic wayRepresents the company in a symbolic way
Guides and motivates employees to achieve goalsGuides and motivates employees to achieve goals
Acts as a go-between among individuals, inside and outsideActs as a go-between among individuals, inside and outside
Searches out new opportunities and initiates changeSearches out new opportunities and initiates change
Handles unexpected events and crisesHandles unexpected events and crises
Resource AllocatorResource Allocator
NegotiatorNegotiator
Designates use of organizational resourcesDesignates use of organizational resources
Represents the company at negotiating processesRepresents the company at negotiating processes
Managerial Roles
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3. Select one or more alternatives3. Select one or more alternatives3. Select one or more alternatives3. Select one or more alternatives
1. Define the problem1. Define the problem1. Define the problem1. Define the problem
2. Identify possible solutions2. Identify possible solutions2. Identify possible solutions2. Identify possible solutions
4. Put the plan into action4. Put the plan into action4. Put the plan into action4. Put the plan into action
5. Follow up to see if problem is solved5. Follow up to see if problem is solved5. Follow up to see if problem is solved5. Follow up to see if problem is solved
The Decision Making Process
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7
What set of managerial skillsWhat set of managerial skillsis necessary for managerial success?is necessary for managerial success?
What set of managerial skillsWhat set of managerial skillsis necessary for managerial success?is necessary for managerial success?
Learning Goal 7
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7 Managerial Skills
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7
Conceptual Skills
Conceptual Skills
A manager’s ability to view the organization as a whole, understandthe interdependencies, and itsrelation to external environment
A manager’s ability to view the organization as a whole, understandthe interdependencies, and itsrelation to external environment
Human RelationsSkills
Human RelationsSkills
A manager’s interpersonal skills used to accomplish goals through the use of human resources
A manager’s interpersonal skills used to accomplish goals through the use of human resources
Technical Skills
Technical Skills
A manager’s specialized areasof knowledge and expertise, andthe ability to apply that knowledge
A manager’s specialized areasof knowledge and expertise, andthe ability to apply that knowledge
Managerial Skills
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8
What trends will affectWhat trends will affectmanagement in the future?management in the future?
What trends will affectWhat trends will affectmanagement in the future?management in the future?
Learning Goal 8
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Trends in Management and Leadership
Increasing employee empowerment
Growing use of information technology
Increasing need for global management skills
Need to prepare for crises management
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