1. Management and Leadership*
Chapter Seven *
Management and Leadership
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

2. The Business Value Chain
E N V I R O N M E N T E N V I R O M T E N V I R O M T
Company Infrastructure
Human Resource Management
Technology
Procurement
Inbound
Logistics
Outbound
Logistics
Marketing
& Sales
Operations
Service
E N V I R O N M E N T

3. * * WHAT IS MANAGEMENT? LG2 Four Functions of Management
See Learning Goal 1: Describe the changes occurring today in the management function.
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4. *
WHAT IS MANAGEMENT?
Four Functions
of Management *
LG2
Management -- The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources.
See Learning Goal 1: Describe the changes occurring today in the management function.
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5. FOUR FUNCTIONS of MANAGEMENT*
FOUR FUNCTIONS of MANAGEMENT
Four Functions
of Management *
LG2
Planning
Organizing
Leading
Controlling
See Learning Goal 2: Describe the four functions of management.
Management is the process used to accomplish organizational goals through the four functions of management. The four functions of management are planning, organizing, leading and controlling.
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6. Building an Organization
Vision
Strategy
Structure
Financial
People

7. *
SHARING the VISION
Planning & Decision Making *
LG3
Vision -- More than a goal, it’s a broad explanation of why the organization exists and where it’s trying to go.
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
Creating vision for the company is not merely setting a goal but rather creating a sense of purpose for the organization.
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8. * * DEFINING THE MISSION
Planning & Decision Making *
LG3
Mission Statement -- Outlines the organization’s fundamental purposes. It includes:
The organization’s self–concept.
Its philosophy.
Long–term survival needs.
Customer needs.
Social responsibility.
Nature of the product or service.
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
The mission statement is the foundation for setting specific goals and objectives within the organization.
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9. Mission
The mission of the Smith School of Business is to ascend to one of the top global business schools as measured by the school’s stature in research and teaching, and the quality and placement of its students. We will provide a superb research and teaching environment for our faculty and students as well as giving our students a first class return on investment for their time and expense.

10. SETTING GOALS and OBJECTIVES*
SETTING GOALS and OBJECTIVES
Planning & Decision Making *
LG3
Goals -- The broad, long-term accomplishments an organization wishes to attain.
Objectives -- Specific, short- term statements detailing how to achieve the organization’s goals.
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
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11. PLANNING ANSWERS FUNDAMENTAL QUESTIONS*
PLANNING ANSWERS FUNDAMENTAL QUESTIONS
Planning & Decision Making *
LG3
What is the situation now?
SWOT Analysis --
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. As part of the internal analysis, the organization identifies the potential strengths that it can capitalize upon and potential weaknesses that it should improve upon. An organization, as part of an external environmental analysis, identifies the opportunities (factors that an organization can take advantage of) and threats (factors that an organization should avoid or minimize the impact of). An interesting exercise for the students – have them perform a SWOT analysis on themselves (At least the strengths and weaknesses part should be an eye opening experience for them.)
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12. PLANNING ANSWERS FUNDAMENTAL QUESTIONS*
PLANNING ANSWERS FUNDAMENTAL QUESTIONS
Planning & Decision Making *
LG3
What is the situation now?
SWOT Analysis -- Analyzes the organization’s Strengths, Weaknesses, Opportunities and Threats.
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. As part of the internal analysis, the organization identifies the potential strengths that it can capitalize upon and potential weaknesses that it should improve upon. An organization, as part of an external environmental analysis, identifies the opportunities (factors that an organization can take advantage of) and threats (factors that an organization should avoid or minimize the impact of). An interesting exercise for the students – have them perform a SWOT analysis on themselves (At least the strengths and weaknesses part should be an eye opening experience for them.)
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13. * * SWOT MATRIX LG3 Planning & Decision Making
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
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14. Example: The Smith School in 1997
Areas of Least Satisfaction
Level of support for secretarial assistance 6 64
Quality of teaching in UG courses 6 62
Average class size 6 54
Level of support for international activities 6 49
Amount of exposure for specific discipline in UG program 6 46
Quality of students in UG program 6 46
Teaching load 6 44
Placement services for students 6 28
Amount of exposure for specific discipline in MBA program 6 25
Recruiting of quality students for the doctoral program 6 16
Level of faculty development support to enhance
computer apps to support teaching 5 49
Level of support for professional service 5 46
Level of support for school service 5 46
Level of faculty development support to enhance awareness
of new technology 5 44
Level of support for travel 5 41
Level of support for computer hardware technology 5 38
Quality of design of the UG curricula 5 34
Level of support for research grants 5 34
Quality of teaching in required courses for MBA program 5 25
Doctoral program preparation for teaching 5 11

15. School-wide Challenges (Jan 1998)
Small size of faculty compared to peers
Teaching and outside service demands
Insufficient Summer research support
Lack of endowed professorships
Dependence on adjuncts and doctoral students for teaching
Doctoral program support funds
Resources for speakers, technology, etc.
Space

16. PLANNING ANSWERS FUNDAMENTAL QUESTIONS*
PLANNING ANSWERS FUNDAMENTAL QUESTIONS
Planning & Decision Making *
LG3
How can we get to our goal from here?
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. As part of the internal analysis, the organization identifies the potential strengths that it can capitalize upon and potential weaknesses that it should improve upon. An organization, as part of an external environmental analysis, identifies the opportunities (factors that an organization can take advantage of) and threats (factors that an organization should avoid or minimize the impact of). An interesting exercise for the students – have them perform a SWOT analysis on themselves (At least the strengths and weaknesses part should be an eye opening experience for them.)
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17. PLANNING ANSWERS FUNDAMENTAL QUESTIONS*
PLANNING ANSWERS FUNDAMENTAL QUESTIONS
Planning & Decision Making *
LG3
How can we get to our goal from here?
Strategic planning
Tactical planning
Operational planning
Contingency planning
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. As part of the internal analysis, the organization identifies the potential strengths that it can capitalize upon and potential weaknesses that it should improve upon. An organization, as part of an external environmental analysis, identifies the opportunities (factors that an organization can take advantage of) and threats (factors that an organization should avoid or minimize the impact of). An interesting exercise for the students – have them perform a SWOT analysis on themselves (At least the strengths and weaknesses part should be an eye opening experience for them.)
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18. Key Smith School Strategies
Continue to develop first rate academic areas, and centers with distinguished research, teaching and outreach.
Differentiate Smith with activities built around creation, management and deployment of knowledge and information.

19. STRATEGIC and TACTICAL PLANNING*
STRATEGIC and TACTICAL PLANNING
Planning & Decision Making *
LG3
Strategic Planning -- Done by top management and determines the major goals of the organization and the policies, procedures, strategies and resources it will need to achieve them.
Tactical Planning -- The process of developing detailed, short-term statements about what is to be done, who is to do it and how.
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
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20. OPERATIONAL and CONTINGENCY PLANNING*
OPERATIONAL and CONTINGENCY PLANNING
Planning & Decision Making *
LG3
Operational Planning -- The process of setting work standards and schedules necessary to implement the company’s tactical objectives.
Contingency Planning -- The process of preparing alternative courses of action the firm can use if its primary plans don’t work out.
See Learning Goal 3: Relate the planning process and decision making to the accomplishment of company goals.
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21. * * PROGRESS ASSESSMENT
What’s the difference between goals and objectives?
What does a company analyze when it does a SWOT analysis?
What are the differences between strategic, tactical and operational planning?
1. What’s the difference between goals and objectives? Goals are broad, long-term accomplishments an organization wishes to attain. Objectives are specific, short-term statements detailing how the organization will achieve the organization’s goals.
2. What does a company analyze when it does a SWOT analysis? In today’s rapidly changing business environment, managers must think of planning as a continuous process. The SWOT analysis is an important part of the planning process as it evaluates an organization’s strengths, weaknesses, opportunities and threats.
3. What are the differences between strategic, tactical and operational planning? Strategic planning is the process top management uses to determine the major goals of the organization, and the policies, procedures, strategies, and resources the organization will need to achieve them. Tactical planning is the process of developing detailed, short-term statements about what is to be done, who is to do it, and how. This type of planning is typically completed by managers at lower levels of the organization whereas strategic planning is done by the top managers. The final type of planning is operational. Operational planning is the process of setting work schedules and standards necessary to complete the organization’s tactical objectives. This type of planning is the department manager’s tool for daily and weekly operations.
4. What are the seven Ds in decision making? The seven Ds in decision making are as follows:
Define the situation.
Describe and collect needed information.
Develop alternatives.
Develop agreement among these involved.
Decide which alternative is best.
Do what is indicated and start the implementation.
Determine whether the decision was a good one and follow up.
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22. ORGANIZATIONAL CHARTS*
ORGANIZATIONAL CHARTS
Organizing: Creating a Unified System *
LG4
Organization Chart -- A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom.
See Learning Goal 4: Describe the organizing function of management.
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23. * * LEVELS of MANAGEMENT Organizing: Creating a Unified System LG4
See Learning Goal 4: Describe the organizing function of management.
This slide shows a good visual of management levels within a corporation. Note the pyramid shape and the type of job positions that are in each level. It’s important for the student to know the necessary skill levels that each position in the pyramid requires. A Top-Level Manager needs good conceptual skills, and to be able to effectively communicate goals to the entire corporation. Middle-level managers typically develop the strategies for goal attainment and develop the tactics necessary to achieve stated goals. Middle managers require good analytical skills and the ability to communicate. First-line managers are responsible for execution of business plans. Technical skills and good communications skills are necessary.
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24. *
MANAGEMENT LEVELS
Organizing: Creating a Unified System *
LG4
Top Management -- The highest level, consists of the president and other key company executives who develop strategic plans.
Middle Management -- Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.
Supervisory Management -- Those directly responsible for supervising workers and evaluating daily performance.
See Learning Goal 4: Describe the organizing function of management.
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25. * * TOP MANAGEMENT Chief Executive Officer (CEO)
Organizing: Creating a Unified System *
LG4
Chief Executive Officer (CEO)
Introduces change into an organization.
Chief Operating Officer (COO)
Implements CEO’s changes.
Chief Financial Officer (CFO)
Obtains funds, plans budgets, collects funds, etc.
Chief Information Officer (CIO)
Gets the right information to the right people so decisions can be made.
See Learning Goal 4: Describe the organizing function of management.
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26. *
MANAGERIAL SKILLS
Tasks and Skills
at Different Levels of Management *
LG4
Technical Skills -- The ability to perform tasks in a specific discipline or department.
Human Relations Skills -- Skills that involve communication and motivation; they enable managers to work through and with people.
Conceptual Skills -- Skills that involve the ability to picture the organization as a whole and the relationship among its various parts.
See Learning Goal 4: Describe the organizing function of management.
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27. SKILLS NEEDED at VARIOUS LEVELS of MANAGEMENT*
SKILLS NEEDED at VARIOUS LEVELS of MANAGEMENT
Tasks and Skills
at Different Levels of Management *
LG4
See Learning Goal 4: Describe the organizing function of management.
The further up the managerial ladder one moves, the less important technical job skills become.
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28. * * LEADERSHIP Leaders must:
Leading: Providing Continuous Vision and Values. *
LG5
Leaders must:
Communicate a vision and rally others around that vision.
Establish corporate values.
Promote corporate ethics.
Embrace change.
Stress accountability and responsibility
See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
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29. LEADERSHIP STYLES *
Leadership Styles *
Autocratic Leadership -- Making managerial decisions without consulting others.
Participative or Democratic Leadership -- Managers and employees work together to make decisions.
Free-Rein Leadership -- Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.
LG5
See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
Research tells us which leadership style is best depends on what the goals and values of the firm are, who’s being led, and in what situations.
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30. VARIOUS LEADERSHIP STYLES*
VARIOUS LEADERSHIP STYLES
Leadership Styles *
LG5
See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
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31. *
EMPOWERMENT How to Ease Pressure on Workers
Empowering Workers *
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.
See Learning Goal 5: Explain the differences between leaders and managers, and describe the various leadership styles.
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32. My Basic Beliefs Focus strategy- eliminate the extraneous
Consistent articulation/projection of vision
Take every opportunity to reinforce vision
Clear understanding/sharing of weaknesses
Central financial management
Centralized drive and selection
Distributed innovation and implementation
No micromanagement
Minimize non believers but treat with respect
Encourage experimentation
Reward collaboration and efforts towards common goals