7-1

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1-1McGraw-Hill/IrwinUnderstanding Business, 8e © 2008 The McGraw-Hill Companies, Inc., All Rights

Reserved.

Nickels McHugh McHughNickels McHugh McHugh

**Management,Leadership,

andEmpowerment 7

CH

AP

TE

R*

* *

7-2

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New ManagementNew Management RolesRoles

• Skilled communicatorSkilled communicator

• Team player and a Team player and a plannerplanner

• Coordinator Coordinator

• OrganizerOrganizer

• SupervisorSupervisor

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Managing for the FutureManaging for the Future1.1. Prepare for the unexpectedPrepare for the unexpected2.2. Faster reaction timesFaster reaction times3.3. Flatter structureFlatter structure4.4. Build teamsBuild teams5.5. Grow globallyGrow globally6.6. Develop cultural sensitivityDevelop cultural sensitivity7.7. Invest in technologyInvest in technology8.8. Develop a family work Develop a family work

atmosphereatmosphere9.9. Create visionCreate vision10.10.Enhance competenciesEnhance competencies

7-4

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Management FunctionsManagement Functions

• PlanningPlanning

• OrganizingOrganizing

• LeadingLeading

• Controlling Controlling

7-5

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Planning: Create VisionPlanning: Create Vision

• Set Vision, Goals, Set Vision, Goals,

ObjectivesObjectives

• Vision and Mission – Vision and Mission –

Why Organization Why Organization

Exists, Purpose of Exists, Purpose of

OrganizationOrganization

• Goals – Broad, Long-Goals – Broad, Long-

TermTerm

• Objectives – Specific, Objectives – Specific, Short-TermShort-Term

• Continuous Process Continuous Process (SWOT)(SWOT)

7-6

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Questions of PlanningQuestions of Planning

1.1. What is the situation now?What is the situation now?• Where do we want to go?Where do we want to go?

2.2. How can we get there from How can we get there from here?here?

• Strategic PlanningStrategic Planning

• Tactical PlanningTactical Planning

• Operational PlanningOperational Planning

• Contingency PlanningContingency Planning

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SWOT AnalysisSWOT Analysis

Potential Internal Potential Internal STRENGTHSSTRENGTHS

Potential Internal Potential Internal WEAKNESSESWEAKNESSES

Potential External Potential External OPPORTUNITIESOPPORTUNITIES

Potential External Potential External THREATSTHREATS

7-8

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Planning FunctionsPlanning Functions

7-9

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Decision Making: StepsDecision Making: Steps

7. Determine7. Determine

6. Do6. Do

5. Decide5. Decide 4. Develop Agreements

4. Develop Agreements

3. Develop Alternatives

3. Develop Alternatives

2. Describe2. Describe

1. Define1. Define

Decision Making

Decision Making

7-10

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OrganizingOrganizing

• Skills/TasksSkills/Tasks

• StakeholdersStakeholders

• StaffingStaffing

7-11

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Management PyramidManagement Pyramid

President,President,

Vice Pres.Vice Pres.Division Division

Heads, Plant Heads, Plant Mgrs.Mgrs.

Top Management

Top Management

Middle ManagementMiddle Management

Supervisory (First-Line)Supervisory (First-Line)

Non-supervisoryNon-supervisory

Foreman, Foreman, Dept HeadsDept Heads

EmployeesEmployees

7-12

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Required Management SkillsRequired Management Skills

• Technical SkillsTechnical Skills

• Human Human Relations SkillsRelations Skills

• Conceptual Conceptual SkillsSkills

7-13

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Is It Difficult to beIs It Difficult to be a Leader Today?a Leader Today?

More Challenging More Challenging (89%)(89%)

Less Challenging (1%)Less Challenging (1%) Don’t Know (1%)Don’t Know (1%)

No Change (9%)No Change (9%)

Source: USA Today

7-14

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Successful LeadershipSuccessful Leadership

• Communicate a VisionCommunicate a Vision

• Establish Corporate Establish Corporate

ValuesValues

• Promote Corporate Promote Corporate

EthicsEthics

• Embrace ChangeEmbrace Change

7-15

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Leadership StylesLeadership Styles

• AutocraticAutocratic

• Participative Participative (Democratic)(Democratic)

• Free-reinFree-rein

7-16

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Four Leadership TypesFour Leadership Types

• RationalistsRationalists

• PoliticistsPoliticists

• HumanistsHumanists

• CulturistsCulturists

Source: CIO Nov 2003

7-17

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Autocratic LeadershipAutocratic Leadership

Making Making managerial managerial decisions without decisions without consulting othersconsulting others

7-18

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Participative LeadershipParticipative Leadership

• DemocraticDemocratic

• Managers and Managers and employees employees working working together to together to make decisionsmake decisions

7-19

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Free-rein LeadershipFree-rein Leadership

• Managers set Managers set objectivesobjectives

• Employees are Employees are relatively free to do relatively free to do whatever it takes to whatever it takes to accomplish those accomplish those objectivesobjectives

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Empowering EmployeesEmpowering Employees

• Empowerment: Giving Empowerment: Giving employees the employees the authority and authority and responsibility to make responsibility to make decisions.decisions.

• Enabling: Giving Enabling: Giving workers the education workers the education tools needed to make tools needed to make decisions.decisions.

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Manager’sManager’sEmpowerment ChecklistEmpowerment Checklist

• TARGETTARGET

• TOOLSTOOLS

• TRAININGTRAINING

• TIMETIME

• TRUTHTRUTH

• TRACKINGTRACKING

• TOUCHTOUCH

• TRUSTTRUST

Source: Empowerment Checklist, Cathcart Institute, 2004, www.cathcart.com.

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Knowledge ManagementKnowledge Management

• Do you want to know Do you want to know more about your more about your customers?customers?

• What about What about competition?competition?

• What information What information would make the would make the company more company more effective in the effective in the marketplace?marketplace?

• What do I still not What do I still not

know?know?

• Whom should I be Whom should I be

asking?asking?

7-23

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ControllingControlling

1. Establishclear standards

4. Communicate results

5. If needed, take corrective action

2. Monitor and record performance

3. Compare results against

standards

Are standards realistic?

Feedback

7-24

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Are You a Are You a Micromanager?Micromanager?

• Do you have strategic initiatives that you Do you have strategic initiatives that you have not addressed?have not addressed?

• Do you often check on your employees Do you often check on your employees for quality control?for quality control?

• Do you often check on your subordinates Do you often check on your subordinates throughout the day?throughout the day?

• Do you seldom take a vacation?Do you seldom take a vacation?

• Is there a lot of turnover?Is there a lot of turnover?Did you answer YES to any question?

Source: CFO May 2005

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Most Critical Trends,Most Critical Trends,Management ConcernsManagement Concerns

• GlobalizationGlobalization

• Improving Knowledge ManagementImproving Knowledge Management

• Cost and Cycle Time ReductionCost and Cycle Time Reduction

• Improving Global Supply ChainsImproving Global Supply Chains

• Manufacturing at Multiple Locations and Manufacturing at Multiple Locations and in Many Countriesin Many Countries

• Managing More Part-time, Temporary and Managing More Part-time, Temporary and Contract WorkersContract Workers

Source: Quality Digest 2004