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Chapter Eight Management, Leadership, and the Internal Organization

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Chapter Eight Management, Leadership, and the Internal Organization

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

    2. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-2 Management Pyramid

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

    4. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-4 Required Management Skills Technical Skills Human Relations Skills Conceptual Skills

    5. © 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. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-6 Questions of Planning What is the situation now? Where do we want to go? How can we get there from here?

    7. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-7 TA 7.2 Planning Functions     1. A good assignment for the class (though it will probably have to be done out-of-class) is to prepare a strategic plan for the college. See what issues are important for their college and how to deal with them. TA 7.2 Planning Functions     1. A good assignment for the class (though it will probably have to be done out-of-class) is to prepare a strategic plan for the college. See what issues are important for their college and how to deal with them.

    8. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-8 Management Planning Levels & Time Spans OT 7-2 Management Planning Levels and Time Spans OT 7-2 Management Planning Levels and Time Spans

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

    10. © 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. 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. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-11 Organizing Self-Managed Teams Stakeholders Staffing Diversity

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

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

    14. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-14 Purpose of an Organizational Chart Show the activities of the organization Highlight subdivisions of the organization Identify different types of work performed Provide information about different management levels Show the lines of authority in the organization and the flow of organizational communications If you chase 2 rabbits, both will escape. If you chase 2 rabbits, both will escape.

    15. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-15 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

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

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

    18. © 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 Information gets distorted as it passes up the hierarchy. Decisions not made at the lowest possible level. 1. In an evening telecon meeting between MTI, MSFC & KSC presentations of data were made by engineers expressing concern regarding seal integrity at particularly low temperatures. The data supported a no launch decision. Larry Mulloy of NASA asked MTI for a launch decision, launching was not recommended. However, Mulloy concluded that the data was inconclusive. Two engineers attempted to make themselves heard as managers began a discussion. A vote poll by only the 4 sr. exec present, engineers were excluded from the discussion and the poll. NASA accepted the launch recommendation. 1. In an evening telecon meeting between MTI, MSFC & KSC presentations of data were made by engineers expressing concern regarding seal integrity at particularly low temperatures. The data supported a no launch decision. Larry Mulloy of NASA asked MTI for a launch decision, launching was not recommended. However, Mulloy concluded that the data was inconclusive. Two engineers attempted to make themselves heard as managers began a discussion. A vote poll by only the 4 sr. exec present, engineers were excluded from the discussion and the poll. NASA accepted the launch recommendation.

    19. © 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. Israelis had one casualty. Precise planning & organization

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

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

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

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

    24. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-24 Manager’s Empowerment Checklist Do employees understand your plans and goals? 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? Are communication & cooperation encouraged? Can questions be asked freely and are individual initiative & creativity encouraged? OT 7-5 Manager’s Empowerment Checklist 1. As workers become better educated and able to use modern technology, it is likely organizations will rely less on managers and more on the workers themselves for on-the-job decision making.. OT 7-5 Manager’s Empowerment Checklist 1. As workers become better educated and able to use modern technology, it is likely organizations will rely less on managers and more on the workers themselves for on-the-job decision making..

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

    26. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-26 Top Evil Bosses Fast Company Magazine ‘05 Walt Disney Disney Ivan Boesky Andrew Fastow Enron Leona Helmsley Helmsley Hotels Harold Geneen Al Dunlap John D. Rockefeller Armand Hammer Henry Ford Ford Motor Co. Martin Davis Gulf & Western Walt Disney: Suspicious control freak, dictatorial boss who underpaid workers, clashed with labor unions, anti=Semitic smears about other Hollywood tudio heads, wouldn’t give due recognition to Mickey’s real creator, Ub Iwerks, supposedly his oldest friend. Boesky Told Berkeley grads to embrace greed because it is healthy. Served time for securities fraud and never said he was sorry. Routinely screamed at workers & made them all work the Friday after Thanksgiving when he called many times to make sure they were still at the office. Helmsly “Queen of Mean” Fastow So hot headed he once punched out a taxi driver over 70 cents. Pleaded guilty to securities fraud at Enron. Henry Ford Routinely spied on workers, cheated on his wife and made his young mistress marry his chauffeur to cover up the affair. Harold Geneen History’s most dictatorial accountant; publicly humiliated his top 120 execs every month at a 4-day, 14-hr. long meetings that made some physically ill. John D. Rockefeller Controlled a scheme with the 1870 railroads that doubled the price of transporting oil for all other companies except his own cartel. Martin Davis Fired his enemies after reaching the top of Gulf & Western, leaving the top floors empty. Walt Disney: Suspicious control freak, dictatorial boss who underpaid workers, clashed with labor unions, anti=Semitic smears about other Hollywood tudio heads, wouldn’t give due recognition to Mickey’s real creator, Ub Iwerks, supposedly his oldest friend. Boesky Told Berkeley grads to embrace greed because it is healthy. Served time for securities fraud and never said he was sorry. Routinely screamed at workers & made them all work the Friday after Thanksgiving when he called many times to make sure they were still at the office. Helmsly “Queen of Mean” Fastow So hot headed he once punched out a taxi driver over 70 cents. Pleaded guilty to securities fraud at Enron. Henry Ford Routinely spied on workers, cheated on his wife and made his young mistress marry his chauffeur to cover up the affair. Harold Geneen History’s most dictatorial accountant; publicly humiliated his top 120 execs every month at a 4-day, 14-hr. long meetings that made some physically ill. John D. Rockefeller Controlled a scheme with the 1870 railroads that doubled the price of transporting oil for all other companies except his own cartel. Martin Davis Fired his enemies after reaching the top of Gulf & Western, leaving the top floors empty.

    27. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-27 A Company Out of Control W. T. GRANT & CO. 1975 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. Suppliers wee told to overbill the firm & to keep the excess until it was requested.

    28. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-28 Barriers to Advancement for Women

    29. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-29 Barriers to Advancement for Minorities OT 7-4 Barriers to Advancement for Minorities 1. As the numbers of minorities in upper management increase, role models and mentors should grow correspondingly. 2. It might be worthwhile to go on the Internet and research the numbers of minorities presently in top corporate positions in the United States. Going to the web site of Black Enterprise Magazine and other publications will unfold this information. OT 7-4 Barriers to Advancement for Minorities 1. As the numbers of minorities in upper management increase, role models and mentors should grow correspondingly. 2. It might be worthwhile to go on the Internet and research the numbers of minorities presently in top corporate positions in the United States. Going to the web site of Black Enterprise Magazine and other publications will unfold this information.

    30. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-30 Tips for New Managers Be objective. Listen to your employees. Be the model. Be willing to delegate. Respect your employees. Develop employees’ trust. Audit performance. Recognize your limits. OT 7-6 Tips for New Managers OT 7-6 Tips for New Managers

    31. © 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. © 2002 by The McGraw-Hill Companies, Inc. All Rights Reserved. 7-32 New Management Approaches- Why? Global Competition Technological Change Customer Expectations Better Educated Employees Manager No Longer Just Boss

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