© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Presentation transcript:

© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives Differentiate among the three pillars of managing organizations: strategic positioning, organizational design, and individual leadership. Describe the complementary components of management and leadership and the relative importance of technical, interpersonal, and conceptual skills at various managerial levels in the organization. Articulate how the practice of management has evolved. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Objectives Explain the changing perspectives on the purpose of business and how the relationship between the firm and its business environment has changed over time. Describe the stakeholder theory of management and how various stakeholder relationships are managed to enhance overall firm performance. © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Challenge of Leadership Managing and leading diverse workforces Competing on a global scale Operating in a socially responsible manner Responding to change and uncertainty Harnessing technological advances © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 1.1 - The Pillars of Management © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Management and Leadership The act of working with and through a group of people to accomplish a desired goal or objective in an efficient and effective manner Leadership The ability to drive change and innovation through inspiration and motivation © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 1.3 - The Roles of Leaders versus Managers © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 1.4 - Importance and Relevance of Skills by Managerial Level © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 1.5 - From Big Picture Strategy to Individual Action © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Historical Perspectives on Business Bureaucratic organization structure Proposed by Max Weber A clear differentiation of tasks and responsibilities Coordination through strict hierarchy of authority and decision rights Standardization of rules and procedures Vertical separation of planning and execution Plans are made in the upper ranks of an organization and executed in the lower ranks © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Theories of Management Scientific management A focus on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods Human relations movement The belief that organizations must be understood as systems of interdependent human beings who share a common interest in the survival and effective functioning of the firm Contingent view A view of the firm where effective organizational structure is based on fit or alignment between the organization and various aspects of its environment © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Changing Perspectives on the Purpose of Business Business environment: The combination of all contextual forces and elements in the external and internal environments of a firm © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Changing Perspectives on the Purpose of Business Managerial view A business framework where the firm is seen as a mechanism for converting raw materials into products to sell to customers Shareholder view A business framework where the job of top managers is to produce the highest possible stock market valuation of the firm’s assets Stakeholder view A business framework that identifies and analyzes multiple groups that interact with the firm and attempts to align organizational practices to satisfy the needs of these various groups © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 1.9 - Various Stakeholders of the Firm © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 1.10 - Stakeholder Mapping Process © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Stakeholder Management Processes Strategic review process The process by which senior leaders of a corporation meet with business unit managers to review progress toward specific goals Environmental scanning A tool that managers use to scan the business horizon for key events and trends that will affect the business in the future Scenario building Forecasting the likely result that might occur when several events and stakeholders are linked together © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Predicting Stakeholder Responses and Activities Contingency planning The systematic assessment of the external environment to prepare for a possible range of alternative futures for the organization Trend analysis A tool where key variables are monitored and modeled to help predict a change that might occur in the environment Contextual intelligence The ability to understand the impact of environmental factors on a firm and the ability to understand how to influence those same factors © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 1.11 - Building Contextual Intelligence © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Figure 1.12 - How Contextual Forces Impact Uncertainty © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

KEY TERMS Bureaucratic organization structure Business environment Contextual intelligence Contingency planning Contingent view Environmental scanning Human relations movement Leadership Management Managerial view Scenario building Scientific management Shareholder view Stakeholder view Strategic review process Trend analysis VUCA © 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.