McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-1 Chapter Seven Management, Leadership, and Employee Empowerment

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-2 New Management Approaches- Why? Global Competition Global Competition Technological Change Technological Change Customer Expectations Customer Expectations Better Educated Employees Better Educated Employees Manager No Longer Just Boss Manager No Longer Just Boss

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-3 Opportunities for Leadership by Non-Supervisory Employees  Increased competition and more demanding customers  Loosening of formal organizational structures  Fewer, busier managers  Predominance of the knowledge worker  Growing focus on projects & teams

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-4 Required Management Skills  Technical Skills  Human Relations Skills  Conceptual Skills

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-5 Process Of Management Resources EmployeesFinancialProductsLocationInformation Management PlanningOrganizingLeadingControlling Feedback Achievement of Goals & Objectives

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-6 Management Functions 1.Planning - Strategic - Tactical - Operational - Contingency 2.Organizing 3.Leading 4.Controlling

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-7 Planning: Create Vision  Set Vision, Goals, Objectives  Vision/Mission- Why Organization Exists, Purpose of Organization  Goals- Broad, Long-Term Aims  Objectives- Specific, Short- Term Statements  Continuous Process

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-8 Questions of Planning 1)What is the situation now? 2)Where do we want to go? 3)How can we get there from here?

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-9 Figure 7.2 Planning Functions

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Decision Making: Process A. Define B. Describe C. Develop D. Decide E. Develop F. Do G. Determine

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Sources of Management Information Outside Sources Inside Sources Manager Customers & Suppliers Other Managers Academics & Consultants Subordinates & Teams Superiors Meetings & Seminars Mgmt. Info. Sys. Grapevine Financial Institutions Publications, Conferences

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Organizing oSelf-Managed Teams oStakeholders oStaffing oDiversity

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Management Pyramid Top Mid-Level Front Line/Supervisory CEO,Comptroller, Vice Pres. Sales Mgrs Plant Mgrs. SupervisorsForemen

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Management Planning Levels & Time Spans Time Top Mgmt. 2 Years + Middle Mgmt. 1 Year, Quarter Lower Level Mgmt. Days, Weeks

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Successful Leadership  Vision  Communicate  Corporate Values & Ethics  Don’t Fear Change

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Leadership Styles  Autocratic  Democratic  Laissez-Faire  Situational  Empowerment  Knowledge

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Autocratic: Close Supervision

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Democratic: Participative

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Laissez-Faire: Free Rein Leader

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Manager’s Empowerment Checklist Do employees understand your plans and goals? Do employees understand your plans and goals? Are employees encouraged to utilize these plans and goals as a basis for day-to-day work? Are employees encouraged to utilize these plans and goals as a basis for day-to-day work? Does information to employees come soon enough for them to make intelligent decisions about their work? Does information to employees come soon enough for them to make intelligent decisions about their work? Are communication & cooperation encouraged? Are communication & cooperation encouraged? Can questions be asked freely and are individual initiative & creativity encouraged? Can questions be asked freely and are individual initiative & creativity encouraged?

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Controlling Set Standards Set Standards Specific Specific Attainable Attainable Measurable Measurable Procedures for Monitoring Procedures for Monitoring Monitor/Record Monitor/Record Compare Plan & Standards to Results Compare Plan & Standards to Results Communicate to Employees Communicate to Employees Corrective Action??? Corrective Action???

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Management Activities Leading Leading Motivating Motivating Decision Making Decision Making Managing Information & Time Managing Information & Time

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Management Challenges of the Future  Finding/Training New Employees  Growing Global Competition  Finding/Serving New Customers  Financing Long-Term Growth  Dealing with Increased Regulation

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Barriers to Advancement for Women Source: WSJ, 10/17/ = Significant Barrier 1.0 = No Barrier

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Barriers to Advancement for Minorities Source: Wall Street Journal, Oct. 17, = No Barrier 5.0 = Significant Barrier

McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved Tips for New Managers Be objective. Be objective. Listen to your employees. Listen to your employees. Be the model. Be the model. Be willing to delegate. Be willing to delegate. Respect your employees. Respect your employees. Develop employees’ trust. Develop employees’ trust. Audit performance. Audit performance. Recognize your limits. Recognize your limits.