McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-1 NickelsMcHughMcHugh Nickels Cover

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 77 Management, Leadership, and Employee Empowerment 7-2

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-3 New Management Approaches- Why? Global CompetitionGlobal Competition Business ScandalsBusiness Scandals Constant ChangeConstant Change Better Educated WorkersBetter Educated Workers Downsizing/RightsizingDownsizing/Rightsizing

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-4 Management Functions 1.Planning - Strategic - Tactical - Operational - Contingency 2.Organizing 3.Leading 4.Controlling

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 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 Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-6 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 (SWOT)

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-7 Planning Functions

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-8 Management Planning Levels & Time Spans Time Top Mgmt. 2 Years + Middle Mgmt. 1 Year, Quarter Lower Level Mgmt. Days, Weeks

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-9 Management Pyramid Top Mid-Level Front Line/Supervisory CEO,Comptroller, Vice Pres. Sales Mgrs Plant Mgrs. SupervisorsForemen

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Required Management Skills  Technical Skills  Human Relations Skills  Conceptual Skills

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Sources of Management Information Outside Sources Inside Sources Manager Subordinates & Teams Superiors Meetings & Seminars Mgmt. Info. Sys. Grapevine Customers & Suppliers Other Managers Academics & Consultants Financial Institutions Publications, Conferences

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Successful Leadership  Vision  Communicate  Corporate Values & Ethics  Don’t Fear Change

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Leadership Styles  Autocratic  Participative (Democratic)  Free-rein

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Autocratic: Close Supervision

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Participative (Democratic)

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Free-rein Leader

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Reasons for Empowering Non- Supervisory Employees  Increased competition and more demanding customers  Loosening of formal organizational structures  Fewer, busier managers  Predominance of knowledge workers  Growing focus on projects & teams

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Controlling Set StandardsSet Standards –Specific –Attainable –Measurable Customer SatisfactionCustomer Satisfaction –Internal –External Monitor/RecordMonitor/Record Compare Plan & Standards to ResultsCompare Plan & Standards to Results Communicate to EmployeesCommunicate to Employees Corrective Action???Corrective Action??? Corporate ScorecardCorporate Scorecard