1. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-1 Chapter Eight Management, Leadership, and the Internal Organization

2. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-2 Management Pyramid Top Mid-Level Front Line/Supervisory CEO,Comptroller, Vice Pres. Sales Mgrs Plant Mgrs. SupervisorsForemen

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

4. 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

5. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-5 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

6. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-6 Questions of Planning 1)What is the situation now? 2)Where do we want to go? 3)How can we get there from here?

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

8. McGraw-Hill/ Irwin © 2002 by 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 © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-9 SWOT Analysis Strength Strength Weakness Weakness Opportunity Opportunity Threat Threat

10. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-10 Corporate Mission Statements BEN & JERRY’S: Ben & Jerry’s is dedicated to the creation & demonstration of a new corporate concept of linked prosperity of product mission, social mission & economic mission. BEN & JERRY’S: Ben & Jerry’s is dedicated to the creation & demonstration of a new corporate concept of linked prosperity of product mission, social mission & economic mission. LEVI STRAUSS: We seek profitable & responsible commercial success creating & selling jeans & casual clothing. WAe seek this while offering quality products & service—and by being the leader in what we do. LEVI STRAUSS: We seek profitable & responsible commercial success creating & selling jeans & casual clothing. WAe seek this while offering quality products & service—and by being the leader in what we do.

11. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-11 Organizing oSelf-Managed Teams oStakeholders oStaffing oDiversity

12. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-12 Organizational Design  Organization  Division  Department  Group  Individual

13. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-13 Organization Chart Line Line Line-and-staff Line-and-staff Span of management Span of management Delegation Delegation

14. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-14 Purpose of an Organizational Chart Show the activities of the organization Show the activities of the organization Highlight subdivisions of the organization Highlight subdivisions of the organization Identify different types of work performed Identify different types of work performed Provide information about different management levels Provide information about different management levels Show the lines of authority in the organization and the flow of organizational communications Show the lines of authority in the organization and the flow of organizational communications

15. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-15 Line Organizations Advantages Clear Authority & Responsibility Clear Authority & Responsibility Easy to Understand Easy to Understand One Supervisor per Employee One Supervisor per EmployeeDisadvantages Inflexible Inflexible Few Specialists for Advice Few Specialists for Advice Long Line of Communication Long Line of Communication Difficult to Handle Complex Decisions Difficult to Handle Complex Decisions

16. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-16 Line/Staff Organizations Line Personnel Perform Functions Perform Functions Contribute Directly to Organizational Goals Contribute Directly to Organizational Goals Staff Personnel Advise Advise Assist Line Personnel Assist Line Personnel

17. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-17 Span of Control Capabilities of Subordinates & Manager Capabilities of Subordinates & Manager Complexity of Job Complexity of Job Geographically Close Geographically Close Functional Similarity Functional Similarity Need for Coordination Need for Coordination Planning Demands Planning Demands Functional Complexity Functional Complexity

18. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-18 Communication To Launch or Not to Launch 1986 final decision to launch Challenger 1986 final decision to launch Challenger Information gets distorted as it passes up the hierarchy. Information gets distorted as it passes up the hierarchy. Decisions not made at the lowest possible level. Decisions not made at the lowest possible level.

19. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-19 Netanyahu July 3, 1976, Israeli commandos landed 2 military aircraft in darkness & rescued all but 4 hostages in a raid on Entebbe that took only 50 minutes. July 3, 1976, Israeli commandos landed 2 military aircraft in darkness & rescued all but 4 hostages in a raid on Entebbe that took only 50 minutes. Israelis had one casualty. Israelis had one casualty. Precise planning & organization Precise planning & organization

20. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-20 Corporate Culture System pf principles, beliefs & values System pf principles, beliefs & values

21. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-21 Leadership Styles  Autocratic  Democratic  Laissez-Faire  Situational  Empowerment  Knowledge

22. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-22 Autocratic Centered on the boss Centered on the boss

23. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-23 Democratic: Participative

24. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-24 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?

25. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-25 Laissez-Faire: Free Rein Leader

26. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-26 Top Evil Bosses Fast Company Magazine ‘05 Walt Disney Walt Disney Disney Disney Ivan Boesky Ivan Boesky Andrew Fastow Andrew Fastow Enron Enron Leona Helmsley Leona Helmsley Helmsley Hotels Helmsley Hotels Harold Geneen Harold Geneen Al Dunlap Al Dunlap John D. Rockefeller John D. Rockefeller Armand Hammer Armand Hammer Henry Ford Henry Ford Ford Motor Co. Ford Motor Co. Martin Davis Martin Davis Gulf & Western Gulf & Western

27. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-27 A Company Out of Control W. T. GRANT & CO. 1975 W. T. GRANT & CO. 1975 Managers at every level received spotty & unreliable info on how the firm was performing. Managers at every level received spotty & unreliable info on how the firm was performing. Operating budgets were practically unheard of. There was an absence of control over consumer credit. Operating budgets were practically unheard of. There was an absence of control over consumer credit. Suppliers wee told to overbill the firm & to keep the excess until it was requested. Suppliers wee told to overbill the firm & to keep the excess until it was requested.

28. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-28 Barriers to Advancement for Women Source: WSJ, 10/17/00. 5.0 = Significant Barrier 1.0 = No Barrier

29. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-29 Barriers to Advancement for Minorities Source: Wall Street Journal, Oct. 17, 2000 1.0 = No Barrier 5.0 = Significant Barrier

30. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-30 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.

31. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-31 Management Challenges of the Future  Finding/Training New Employees  Growing Global Competition  Finding/Serving New Customers  Financing Long-Term Growth  Dealing with Increased Regulation

32. McGraw-Hill/ Irwin © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-32 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