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

2. 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

3. 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

4. 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

5. 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

6. 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)

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

8. 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

9. 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

10. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-10 Required Management Skills  Technical Skills  Human Relations Skills  Conceptual Skills

11. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-11 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

12. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-12 Successful Leadership  Vision  Communicate  Corporate Values & Ethics  Don’t Fear Change

13. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-13 Leadership Styles  Autocratic  Participative (Democratic)  Free-rein

14. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-14 Autocratic: Close Supervision

15. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-15 Participative (Democratic)

16. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-16 Free-rein Leader

17. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-17 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

18. McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-18 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