1. 1-1 McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh ** Management, Leadership, and Empowerment 7 CHAPTER * **

2. New Management Roles Skilled communicator Team player and a planner Coordinator Organizer Supervisor

3. Managing for the Future 1.Prepare for the unexpected 2.Faster reaction times 3.Flatter structure 4.Build teams 5.Grow globally 6.Develop cultural sensitivity 7.Invest in technology 8.Develop a family work atmosphere 9.Create vision 10.Enhance competencies

4. Management Functions Planning Organizing Leading Controlling

5. Planning: Create Vision Set Vision, Goals, Objectives Vision and Mission – Why Organization Exists, Purpose of Organization Goals – Broad, Long- Term Objectives – Specific, Short-Term Continuous Process (SWOT)

6. Questions of Planning 1.What is the situation now? Where do we want to go? 2.How can we get there from here? Strategic Planning Tactical Planning Operational Planning Contingency Planning

7. SWOT Analysis Potential Internal STRENGTHS Potential Internal WEAKNESSES Potential External OPPORTUNITIES Potential External THREATS

8. Planning Functions

9. Decision Making: Steps Decision Making 1. Define2. Describe 3. Develop Alternatives 4. Develop Agreements 5. Decide6. Do 7. Determine

10. Organizing Skills/Tasks Stakeholders Staffing

11. Management Pyramid President, Vice Pres. Division Heads, Plant Mgrs. Top Management Middle Management Supervisory (First-Line) Non-supervisory Foreman, Dept Heads Employees

12. Required Management Skills Technical Skills Human Relations Skills Conceptual Skills

13. Successful Leadership Communicate a Vision Establish Corporate Values Promote Corporate Ethics Embrace Change

14. Leadership Styles Autocratic Participative (Democratic) Free-rein

15. Four Leadership Types Rationalists Politicists Humanists Culturists Source: CIO Nov 2003

16. Autocratic Leadership Making managerial decisions without consulting others

17. Participative Leadership Democratic Managers and employees working together to make decisions

18. Free-rein Leadership Managers set objectives Employees are relatively free to do whatever it takes to accomplish those objectives

19. Empowering Employees Empowerment: Giving employees the authority and responsibility to make decisions. Enabling: Giving workers the education tools needed to make decisions.

20. Manager’s Empowerment Checklist TARGET TOOLS TRAINING TIME TRUTH TRACKING TOUCH TRUST Source: Empowerment Checklist, Cathcart Institute, 2004, www.cathcart.com.

21. Knowledge Management Do you want to know more about your customers? What about competition? What information would make the company more effective in the marketplace? What do I still not know? Whom should I be asking?

22. Controlling 1.Establish clear standards 2. Monitor and record performance 3. Compare results against standards 4. Communicate results 5. If needed, take corrective action Are standards realistic? Feedback

23. Are You a Micromanager? Do you have strategic initiatives that you have not addressed? Do you often check on your employees for quality control? Do you often check on your subordinates throughout the day? Do you seldom take a vacation? Is there a lot of turnover? Did you answer YES to any question? Source: CFO May 2005

24. Most Critical Trends, Management Concerns Globalization Improving Knowledge Management Cost and Cycle Time Reduction Improving Global Supply Chains Manufacturing at Multiple Locations and in Many Countries Managing More Part-time, Temporary and Contract Workers Source: Quality Digest 2004

25. 1-25 McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh ** Adapting Organizations to Today’s Markets 8 CHAPTER * **

26. Structuring an Organization Comprises: Accountability Allocating Resources Establishing Procedures Division of Labor Team Tasks Assigning Responsibility/ Authority

27. Fayol’s Principles of Organization Unity of Command Hierarchy of Authority Division of Labor Subordination of Individual Interest to the General Interest Authority Degree of Centralization Clear Communication Channels Order Equity Esprit de Corps

28. Weber’s Organizational Principles Job Descriptions Written Rules Procedures, Regulations, Policies Staffing/Promotions Based on Qualifications

29. Centralization (No Delegation) Advantages Greater Top- Management Control More Efficiency Simpler Distribution System Stronger Brand/Corporate Image Disadvantages –Less Responsiveness to Customers –Less Empowerment –Interorganizational Conflict –Lower Morale Away from Headquarters

30. Decentralization (Delegate Authority) Advantages –Better Adaptation to Customer Wants –More Empowerment of Workers –Faster Decision Making –Higher Morale Disadvantages Less Efficiency Complex Distribution System Less Top-Management Control Weakened Corporate Image

31. Organizational Structures Tall Organizations Many Layers of Management High Cost of Management Narrow Span of Control Flat Organizations Current Trend Creation of Teams Broad Span of Control

32. Span of Control - Narrow Advantages More Control by Top Management More Chances for Advancement Greater Specialization Closer Supervision Disadvantages Less Empowerment Higher Costs Delayed Decision Making Less Responsiveness to Customers

33. Span of Control - Broad Advantages Reduced Costs More Responsiveness to Customers Faster Decision Making More Empowerment Disadvantages Fewer Chances for Advancement Overworked Managers Loss of Control Less Management Expertise

34. Advantages Skill Development Economies of Scale Good Coordination Departmentalization by Function Disadvantages –Lack of Communication –Employees Identify with Department –Slow Response to External Demands –Narrow Specialists –Groupthink

35. Departmentalization By Product By Function By Customer Group By Geographic Location By Process

36. Line Organizations Advantages –Clear Authority & Responsibility –Easy to Understand –One Supervisor Per Employee Disadvantages –Inflexible –Few Specialists for Advice –Long Line of Communication –Difficult to Handle Complex Decisions

37. Line/Staff Organizations Line Personnel –Formal Authority –Make Policy Decisions Staff Personnel –Advise Line Personnel –Assist Line Personnel

38. Matrix Organizations Advantages –Flexibility –Cooperation & Teamwork –Creativity –More Efficient Use of Resources Disadvantages –Costly/Complex –Confusion in Loyalty –Requires Good Interpersonal Skills & Cooperation –Not Permanent

39. Important Conditions for Small Teams 1.Clear Purpose 2.Clear Goals 3.Correct Skills 4.Mutual Accountability 5.Shift Roles When Appropriate Source: CIO Dec 2003

40. Networking –Real Time –Transparency –Virtual Corporations

41. A Virtual Corporation CoreFirm Accounting Firm Production Firm Distribution Firm Advertising Agency Design Firm Legal Firm

42. Adapting to Change Restructuring for Empowerment Focusing on the Customer Creating a Change-Oriented Organizational Culture The Informal Organization

43. Layers of Authority- Traditional Top Managers- Decision Makers Middle Managers- Develops Rules & Procedures Middle Managers- Develops Rules & Procedures Workers and Supervisors Workers and Supervisors

44. Inverted Organization Structure Empowered front- line workers Support Personnel Top Mgmt.

45. 1-45 McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh ** Producing World-Class Goods and Services 9 CHAPTER * **

46. How Manufacturers Have Become More Effective Focus on customers Maintain close relationships Continuous improvement Focus on quality Save costs Rely on the Internet New production techniques

47. From Production to Operations Management Production Production Management Operations Management (OM)

48. Production Processes Form Utility Process Manufacturing Assembly Process Continuous Process Intermittent Process

49. Three Requirements For Production 1.Build and deliver products in response to the demands of the customer at a scheduled delivery time 2.Provide an acceptable quality level 3.Provide everything at the lowest possible cost

50. What Is Increasing Productivity? Source: 2005 National Innovation Survey, Council on Competitiveness

51. Production Techniques Flexible Manufacturing Lean Manufacturing Mass Customization

52. Operations Management Planning Facility Location Facility Layout Materials Requirement Planning Purchasing J-I-T Inventory Control Quality Control

53. Six Sigma Quality Statistical Quality Control (SQC) Statistical Process Control (SPC) The Baldrige Award ISO 9000 ISO 14000

54. Baldrige Award Recipients Sunny Fresh Foods, Inc., Monticello, MN (Manufacturing) DynMcDermott Petroleum Operations, New Orleans, LA (Service) Park Place Lexus, Plano, TX (Small Business) Richland College, Dallas, TX (Education) Jenks Public Schools, Jenks, OK (Education) Bronson Methodist Hospital, Kalamazoo, MI, (Health care) Source: NIST News Release, November 22, 2005

55. ISO ISO was founded in 1947 At the end of 2004, the worldwide total of certificates: –ISO 9000 – 670,000 in 154 countries –ISO 14000 – 90,000 in 127 countries Source: Business Week Online, March 17, 2006

56. Control Procedures Program Evaluation & Review Techniques (PERT) Gantt Chart

57. PERT Steps 1.Analyzing and sequencing tasks that need to be done 2.Estimating the time needed to complete each task 3.Drawing a PERT network illustrating the information from steps 1 and 2 4.Identifying the critical path

58. Gantt Chart Named for its developer, Henry Gantt A bar graph that clearly shows what projects are being worked on and how much has been completed at any given time

59. Learning from Failure Formalize forums for analyzing failure Move the goalposts Share personal stories Bring in outsiders Prove yourself wrong, not right Celebrate smart failures Source: Business Week Online, July 10, 2006

60. 1-60 McGraw-Hill/Irwin Understanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Nickels McHugh McHugh ** Human Resource Management: Management: Finding and Keeping the Best Employees Employees 11 CHAPTER * **

61. HR Challenges Shortages Unskilled Workers Undereducated Workers Shift in Workforce Composition Laws & Regulations Single-Parent & Two- Income Families Attitudes Toward Work Continued Downsizing Overseas Labor Pools Customized Benefits Employees With New Concerns Decreased Loyalty

62. Determining HR Needs 1.Prepare HR Inventory 2.Prepare Job Analysis Job Description Job Specification 3.Assess HR Demand 4.Assess HR Supply 5.Establish Strategic Plan

63. Hiring Process Recruit Select Application Form Interview Test Investigate Examine Probation Train/Develop Orientation OJT Apprenticeship Off-The-Job Training Online Training Vestibule Training Job Simulation

64. Applicants’ Mistakes Source: USA Today

65. Interviewing Mistakes Source: USA Today

66. Number Interviewed to Find Quality Hire Source: USA Today, January 24, 2005

67. Important Factors When Phrasing Interview Questions Language Relevance Information Level Complexity Information Accessibility Source: University of Central Arkansas

68. Training & Development Assess Needs Design Training Evaluate Effectiveness

69. Training Methods 1.Employee Orientation 2.On-The-Job 3.Apprenticeship 4.Off-The-Job 5.Online 6.Vestibule 7.Job Simulation

70. Management Development On-The-Job Coaching Understudy Job Rotation Off-The-Job Courses & Training

71. Performance Appraisal 1.Establish Standards 2.Communicate Standards 3.Evaluate Performance 4.Discuss Results 5.Take Corrective Action 6.Use Results to Make Decisions

72. Employee Retention Compensation Individual Team Fringe Benefits Job-Sharing Flextime Core Time Compressed Workweek Home-Based & Mobile Work

73. Compensation & Benefits Program Objectives Attract the right people Employee incentives Retain valued employees Maintain competitiveness Financial security for employees

74. Pay Systems Salary Hourly wage and daywork Piecework system Commission plans Bonus plans Profit-sharing plans Gain-sharing plans Stock options

75. Scheduling To Meet Employee Needs Flextime Plans Home-Based & Other Mobile Work Job-Sharing Plans

76. Benefits of Job-Sharing Opportunities for wanting to work only part- time High level of enthusiasm and productivity Reduced absenteeism and tardiness Ability to schedule in peak demand period Retention of experienced workers

77. How Employers Are Becoming Flexible Source: insala.com, April 2005

78. Benefits of Providing Flexibility Source: Insala.com, April 2005

79. Why is Retention Important? Employee turnover could cost up to 40% of a company’s annual profits The average company loses $1 million with the loss of every ten managerial employees Turnover costs are 50%-100% of the ex- employees’ annual salary Source: insala,com, April 2005

80. Top 10 Reasons Employees Stay On Their Job 1.Credit Union Membership 2.Health Benefits 3.Salary 4.Good Coworkers 5.Office Hours 6.Childcare 7.Vacation Time 8.Sick Leave 9.Distance from Home 10. Popular Company Source: Source: Creditunionrate.com, accessed July 13, 2006

81. Employee Movement Promotion/Reassignment Termination Retirement Resignation

82. Companies’ Aid to Disabled Employees Source: USA Today