Chapter 6 Management Leadership in Today s Organization

1. Chapter 6 � Management & Leadership in Today�s Organization

2. Chapter 6 Learning Goals What is the role of management? What are the four types of planning? What are the primary responsibilities of managers in organizing activities? How do leadership styles influence a corporate culture? How do organizations control activities?

3. Chapter 6 Learning Goals (cont�d.) What roles do managers take on in different organizational settings? What set of managerial skills is necessary for managerial success? What trends will affect management in the future?

4. Management Dynamic & evolving Managerial Process Planning: anticipate problems/opportunities & design plans Organizing: get resources to implement plans Leading: guide through implementation process Controlling: review results & modify Exhibit 6-1, pg. 173

5. Planning What needs done? When and how it will be done? By whom will it be done?

6. Types of Planning Strategic Planning Long range & broad Mission & mission statement Tactical Planning Support strategic plans Operational Planning Specific Guide & control tactical plans Contingency Planning Alternative actions What to do in an emergency

7. Four Types of Planning Exhibit 6-2, pg. 174 1. Strategic Planning 2. Tactical Planning 3. Operational Planning 4. Contingency Planning long-range, broad goals to implement a strategic plan; shorter term and more specific creating very specific policies and procedures alternative actions for unusual or crisis situations

8. Contingency Plans Some types of contingency planning that were used in preparation for the Year 2000 computer bug: Cities stocked gasoline & diesel fuel for emergency vehicles Hotel chains stocked food & water for guests if needed Stores devised paper & pen backups for credit card processing The Red Cross set up a national Disaster Operations Center

9. Organizing Coordinating & allocating resources Creating a structure to maximize the flow of information Division of labor Departmentalization Delegation

10. The Managerial Pyramid

11. Leading Guide and motivate others to goals Influence others behavior � power Sources of Power Legitimate Reward Coercive Expert Referent

12. 95% of nurses in a research study were willing to follow doctors� orders to administer a clearly unsafe dosage of medicine to patients (Source: Hofling et al., 1966, Journal of Nervous and Mental Disease, v. 143, pp. 171-180) 46% of nurses in another study admitted to a time that they complied with a doctor�s order that they thought was unsafe(Source: Krackow & Blass, 1995, Journal of Social Behavior and Personality, v. 10, pp. 585-594)

13. Leadership StylesExhibit 6-5, pg. 178 Autocratic Leaders Solve problems on their own Participative Leaders Share decision making Types Democratic Consensual Consultative Free�Rein Leaders (Laissez-faire) Control to the group

14. Employee Empowerment Used by participative and free-rein leaders Employees are given control and decision making powers Results in a greater sense of ownership & responsibility

15. Empowering Employees Things needed to empower employees, according to Don Fites, CEO of Caterpillar: Give them decision-making authority Develop a culture & climate that support it Organize the business to support it Reward employees based on performance

16. Corporate Culture The set of attitudes, values, & standards of behavior in the workplace Management�s leadership styles are usually reflective of the culture Evolves over time Can greatly impact the success of the company

17. Controlling Helps determine the success of planning, organizing, & leading Directs behavior toward achieving goals Allows for coordinating activities and integrating resources Feedback is essential to this process

18. The five stages of Controlling Setting standards and goals Measuring performance Comparing actual to estimated Taking corrective action Using info gained to set new standards for the following year

19. What roles do managers play? Informational roles Gather or distribute information Interpersonal roles Leader or liaison Decisional roles Entrepreneur, conflict resolution, resource allocation, negotiator

20. How do managers make decisions?

21. Guidelines for decision making Have confidence in your judgment Go by the evidence Think about long term consequences Listen to your inner wisdom and intuition Be flexible Think about how you would things to turn out and what could possibly go wrong Think in terms of opportunities not problems Do the right thing

22. Types of decisions made by managers Programmed Routine Frequent Standard procedures developed and followed Nonprogrammed Unforeseen Infrequent Unusual No standard procedures

23. Skills needed by managers Technical Skills Area of expertise, ability to apply knowledge Human Relations Understanding of human nature, communication skills, motivate and empower others Conceptual Skills Understanding of the whole organization as well as its parts Global Management Skills Ability to operate in diverse cultures

24. How do managers juggle all of their responsibilities? Through effective time management Plan ahead Establish priorities Delegate Learn to say no Batch Stay on task Set deadlines

25. Trends in Management Increasing employee empowerment Growing use of information technology Increasing need for global management skills

26. Review The four activities of management Planning Organizing Leading Controlling Managerial Roles Decision Making Managerial Skills Trends Looking Ahead Organizational Structure