Management
ManagementandandLeadership
Leadership
in
inTodays
TodaysOrganizations
Organizations
Chapter
7
THE
THEFUTURE
FUTUREOF
OFBUSINESS
BUSINESS
Gitman
Gitman&&McDaniel
McDaniel
55ththEdition
Edition
Prepared
Preparedby
by
Chapter 7
Deborah Baker
Deborah Baker
Texas
Texas ChristianUniversity
Christian University
Learning Goals
1 What is the role of management?
2 What are the four types of planning?
3 What are the primary responsibilities of managers in
organizing activities?
4 How do leadership styles influence a corporate culture?
5 How do organizations control activities?
6 What roles do managers take on in different
organizational settings?
7 What set of managerial skills is necessary for
managerial success?
8 What trends will affect management in the future?
Chapter 7
Copyright 2005 by South-Western, a division of 2
1 Learning Goal 1
What is the role of management?
Chapter 7
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1 The Role of Management
The
Theprocess
process ofof guiding
guiding
the
thedevelopment,
development,
maintenance,
maintenance, andand
Management
Management allocation
allocation of
of resources
resources
to
toattain
attain
organizational
organizational goals.
goals.
Chapter 7
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1 The Managerial Process
g / An
in t
P r i ci p
i ew ing ob at
e v ng le ing
R ha m
C s
Managerial
Process
Cycle
g
Gu it n
Pe i d
rs ing i n a ces
on ord ur
ne
l Co eso
R
Chapter 7
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1 Managerial Work Activities
Organizing
Planning
Controlling Leading
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2 Learning Goal 2
What are the four types
of planning?
Chapter 7
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2 Four Types of Planning
Strategic
Strategic
Tactical
Tactical
Operational
Operational
Contingency
Contingency
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2 Strategic Planning
Strategic
Strategic
1-5
1-5 years
years
Top
Top management
management
External
External environment
environment and
and entire
entire organization
organization
Establish
Establish mission
mission and
and long-term
long-term goals
goals
Broad
Broad and
and general
general content
content
High
High degree
degree of
of uncertainty
uncertainty
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2 Mission Statement
AAformal
formaldocument
document that
that
states
statesananorganizations
organizations
Mission
MissionStatement
Statement purpose
purposeand andreason
reasonfor
for
existing
existing and
anddescribes
describes
its
its basic
basicphilosophy.
philosophy.
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2 Ben & Jerrys Mission Statement
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2 Tactical Planning
Tactical
Tactical
Less
Less than
than one
one year
year
Middle
Middle management
management
Strategic
Strategic business
business units
units
Establish
Establish mid-range
mid-range goals
goals for
for implementation
implementation
More
More specific
specific content
content
Moderate
Moderate degree
degree of
of uncertainty
uncertainty
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2 Operational Planning
Operational
Operational
Current
Current time
time frame
frame
Supervisory
Supervisory management
management
Geographical
Geographical and
and functional
functional divisions
divisions
Implement
Implement and
and activate
activate specific
specific objectives
objectives
Specific
Specific and
and concrete
concrete content
content
Reasonable
Reasonable degree
degree of
of certainty
certainty
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2 Contingency Planning
Contingency
Contingency
When
When an
an event
event occurs
occurs or
or situation
situation demands
demands
Top
Top and
and middle
middle management
management
External
External environment
environment and
and entire
entire organization
organization
Meet
Meet unforeseen
unforeseen challenges
challenges and
and opportunities
opportunities
Both
Both broad
broad and
and detailed
detailed content
content
Reasonable
Reasonable degree
degree of
of certainty
certainty
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3 Learning Goal 3
What are the primary responsibilities
of managers in organizing activities?
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3 Organizing
Dividing
Dividing up
up tasks
tasks (division
(divisionof
oflabor)
labor)
Licensing
Licensing (departmentalization)
(departmentalization)
Contract
Contract (delegation)
(delegation)
Manufacturing
Manufacturing
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3 Levels of a Managerial Hierarchy
Top Strategic Plans
Management
Middle Tactical Plans
Management
Supervisory Operational Plans
Management
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3 Levels of a Managerial Hierarchy
Top Middle Supervisory
Management Management Management
CEO Regional Manager Supervisor
President Division head Team leader
Governor Director Foreman
General Director Plant manager
Sales manager
Chapter 7
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4 Learning Goal 4
How do leadership styles
influence a corporate
culture?
Chapter 7
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4 Leadership
The
Theprocess
process of
of guiding
guiding
and
andmotivating
motivatingothers
others
Leadership
Leadership toward
toward the
theachievement
achievement
of
oforganizational
organizational goals.
goals.
Chapter 7
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4 Primary Sources of Power
Derived
Derived from
from individuals
individualsposition
position
Legitimate
Legitimate power
power in
in an
an organization
organization
Derived
Derived from
from individuals
individuals
Reward
Reward power
power control
control over
over rewards
rewards
Derived
Derived from
from individuals
individuals ability
ability to
to
Coercive
Coercive power
power threaten
threaten negative
negative outcomes
outcomes
Derived
Derived from
from individuals
individuals
Expert
Expert power
power extensive
extensive knowledge
knowledge
Derived
Derived from
from individuals
individuals charisma
charisma
Referent
Referent power
power and
and respect/admiration
respect/admiration inspired
inspired
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4 Leadership Styles
Amount of authority held by the leader
Free-Rein
Free-Rein
Autocratic
AutocraticStyle
Style Participative Style
Participative Style (Laissez-Faire) Style
(Laissez-Faire) Style
Amount of authority held by group members
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4 Participative Leadership
Democratic
Democratic
Participative
Participative
Leadership
Leadership Consensual
Consensual
Types
Types
Consultative
Consultative
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4 Empowerment
The
Theprocess
processof ofgiving
giving
employees
employees increased
increased
autonomy
autonomyand anddiscretion
discretion
Empowerment
Empowerment to
tomake
makedecisions,
decisions, as
as
well
wellas ascontrol
control over
overthe
the
resources
resourcesneeded
neededto to
implement
implementthose
those
decisions.
decisions.
Chapter 7
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4 Corporate Culture
The
Theset
set of
of attitudes,
attitudes,
values,
values,and
andstandards
standards
Corporate
CorporateCulture
Culture that
that distinguishes
distinguishesoneone
organization
organization from
from
another.
another.
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5 Learning Goal 5
How
How do
do organizations
organizations
control
control activities?
activities?
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5 The Control Process
5. 1.
Use information Set
to set up future performance
performance standards
standards and goals
4.
2.
Take
Measure
corrective
performance
action
3.
Compare actual
performance
to established
standards
Chapter 7
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6 Learning Goal 6
What
What roles
roles do
do managers
managers take
take on
on in
in
different
different organizational
organizational settings?
settings?
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66 Managerial Roles
Informational
InformationalRoles
Roles
Monitor
Monitor Gathers
Gathersinformation
informationrelevant
relevantto
toorganization
organization
Disseminator
Disseminator Provides
Providesinformation
informationwhere
whereititis
isneeded
needed
Spokesperson
Spokesperson Transmits
Transmitsinformation
informationto
topeople
peopleoutside
outsidethe
theorganization
organization
Interpersonal
InterpersonalRoles
Roles
Figurehead
Figurehead Represents
Representsthe
thecompany
companyin
inaasymbolic
symbolicway
way
Leader
Leader Guides
Guidesand
andmotivates
motivatesemployees
employeesto
toachieve
achievegoals
goals
Liaison
Liaison Acts
Actsas
asaago-between
go-betweenamong
amongindividuals,
individuals,inside
insideand
andoutside
outside
Decisional
DecisionalRoles
Roles
Entrepreneur
Entrepreneur Searches
Searchesout
outnew
newopportunities
opportunitiesand
andinitiates
initiateschange
change
Disturbance
DisturbanceHandler
Handler Handles
Handlesunexpected
unexpectedevents
eventsand
andcrises
crises
Resource
ResourceAllocator
Allocator Designates
Designatesuse
useof
oforganizational
organizationalresources
resources
Chapter 7
Negotiator
Negotiator Represents
Representsthe
thecompany
companyat
atnegotiating
negotiatingprocesses
processes
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The Decision Making Process
1.
1. Define
Define the
the problem
problem
2.
2. Identify
Identifypossible
possible solutions
solutions
3.
3. Select
Select one
one or
or more
more alternatives
alternatives
4.
4. Put
Put the
the plan
plan into
into action
action
5.
5. Follow
Follow up
up to
to see
see ifif problem
problem is
is solved
solved
Chapter 7
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7 Learning Goal 7
What
What set
set of
of managerial
managerial skills
skills
is
is necessary
necessary for
for managerial
managerial success?
success?
Chapter 7
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7 Managerial Skills
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7 Managerial Skills
AAmanagers
managersspecialized
specialized areas
areas
Technical
Technical of
of knowledge
knowledge and and expertise,
expertise, and
and
Skills
Skills the
the ability
ability to
to apply
apply that
that knowledge
knowledge
AAmanagers
managersinterpersonal
interpersonal skills
skills
Human Relations
Human Relations used to accomplish goals through
Skills used to accomplish goals through
Skills the
the use
use of
of human
human resources
resources
AAmanagers
managersability
ability to
to view
view the
the
Conceptual
Conceptual organization
organization as as aa whole,
whole, understand
understand
Skills
Skills the
the interdependencies,
interdependencies, and and its
its
relation
relation to
to external
external environment
Chapter 7
environment
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8 Learning Goal 8
What
What trends
trends will
will affect
affect
management
management inin the
the future?
future?
Chapter 7
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8 Trends in Management and Leadership
Increasing employee empowerment
Growing use of information technology
Increasing need for global management skills
Need to prepare for crises management
Chapter 7
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