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*ChapterSeven * Management and Leadership McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. INDRA KRISHNAMURTHY NOOYI Pepsi * Profile * • Started at Pepsi after earning masters degrees from the Indian School of Management and Yale. • Goal was to increase sales overseas, introduce good-foryou products and place more emphasis on food. • She is a top manager using a boss-centered leadership style while still being a team player. 7-2 AMERICA’S MOST POWERFUL FEMALE MANAGERS * Name Organization Age Indra Nooyi PepsiCo 52 Irene Rosenfeld Kraft Foods 55 Pat Woertz Archer Daniel Midland 55 Anne Mulcahy Xerox 55 Angela Braly Wellpoint 47 Andrea Jung Avon 50 Susan Arnold Proctor & Gamble 54 Oprah Winfrey Harpo 54 Brenda Barnes Sara Lee 54 Ursula Burns Xerox 50 Source: Fortune Magazine, www.fortune.com, October 13, 2008. Profile * 7-3 * WHAT IS MANAGEMENT? Four Functions of Management * LG2 • Management -- The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources. 7-4 Growing numbers of women. .Fewer from elite universities.TODAY’S MANAGERS * Managers’ Roles Are Evolving * LG1 • Younger and more progressive. • Emphasis is on teams and team building. 7-5 . • Managers need to be skilled communicators and team players. . www.entrepreneur. March 2009. 7-6 .RESPECT and HOW to GET IT * Managers’ Roles Are Evolving * LG1 Source: Entrepreneur.com. The BEST MANAGERS * Managers’ Roles Are Evolving * LG1 Name Age Organization David Axelrod 53 Obama Campaign Frank Blake 59 Home Depot Jamie Dimon 52 JPMorgan Larry Ellison 64 Oracle Takeo Fukui 64 Honda Mark Hurd 53 Hewlett-Packard Satoru Iwata 49 Nintendo Peter Loscher 51 Siemens Irene Rosenfeld 55 Kraft Foods Source: BusinessWeek.businessweek. 7-7 . 2009. January 19.com. www. 2009. Bad lending standards led to bankruptcy. www.businessweek. Fired 3.com. 7-8 . January 19. Ignored warning signs and rewarded greed. Source: BusinessWeek.400 experienced employees for cheaper replacements.The WORST MANAGERS * Managers’ Roles Are Evolving * LG1 Name Organization What Went Wrong James Cayne Bear Stearns Richard Fuld Lehman Brothers Kerry Killinger Washington Mutual Philip Schoonover Circuit City Played golf and bridge while the company collapsed. Organizing 3. Controlling 7-9 . Planning 2.FOUR FUNCTIONS of MANAGEMENT * Four Functions of Management * LG2 1. Leading 4. companies from expanding rapidly in global markets. • Flexibility is the key to successfully expanding abroad.S. • Developing products to appeal to another market is another way to be successful.WE NEED MANAGERS HERE * (Reaching Beyond Our Borders) * • The lack of professional managers is keeping U. 7-10 . SHARING the VISION * Planning & Decision Making LG3 * • Vision – • Broad explanation of why the organization exists and where it’s trying to go (futuristic). 7-11 . Customer needs. Social responsibility. Its philosophy. Long–term survival needs. - The organization’s self–concept.DEFINING THE MISSION * Planning & Decision Making LG3 * • Mission Statement – • Outlines organization’s fundamental purposes. 7-12 . Nature of the product or service. 7-13 . • Objectives – • Specific. short-term statements detailing how to achieve goals.SETTING GOALS and OBJECTIVES • Goals – * Planning & Decision Making LG3 * • Broad. long-term accomplishments an organization wishes to attain. Analyzes the organization’s Strengths. Opportunities and Threats. Weaknesses. • How can we get to our goal from here? - Strategic planning Tactical planning Operational planning Contingency planning 7-14 .PLANNING ANSWERS FUNDAMENTAL QUESTIONS * Planning & Decision Making LG3 * • What is the situation now? SWOT Analysis -. SWOT MATRIX * Planning & Decision Making LG3 * 7-15 . super centers. 7-16 . or form strategic alliances with other global retailers •continue with its current strategy of large. merge with.WalMart SWOT Analysis Strengths Weaknesses •powerful retail brand •reputation for value for money. Opportunities •acquire. •huge span of control – makes it difficult to enforce its philosophy. convenience and wide range of products •core competence involving its use of information technology to support its international logistics system. Disclaimer: This case study has been compiled from information freely available fromcompetition public sources. •may not have the flexibility of some of its more focused competitors. it has a presence in relatively few countries worldwide. •exposure to political problems in the countries that you operate in. Threats •prime target of competition. locally and globally. •Although global. It is merely •Intense price is a intended to be used for educational purposes only. threat. PLANNING FUNCTIONS * Planning & Decision Making LG3 * 7-17 . less formal than decision making and needs quicker action. 7-18 . • Problem-solving Techniques -• Brainstorming and PMI – • List all pluses for a solution in one column. all minuses in another and implications in a third.PROBLEM SOLVING * Decision Making: Finding the Best Alternative * LG3 • Problem Solving – • Solving everyday problems that occur. ORGANIZATIONAL CHARTS *Organizing: Creating a Unified System LG4 * • Organization Chart -Visual device that shows relationships among people and divides the organization’s work. it shows who reports to whom. 7-19 . LEVELS of MANAGEMENT *Organizing: Creating a Unified System LG4 * 7-20 . division managers. 7-21 . consists of the president and other key company executives who develop strategic plans. • Supervisory Management – • Directly responsible for supervising workers and evaluating daily performance. and branch and plant managers who are responsible for tactical planning and controlling. • Middle Management – • General managers.MANAGEMENT LEVELS *Organizing: Creating a Unified System LG4 * • Top Management – • Highest level. Introduces change into an organization.Obtains funds. • Chief Financial Officer (CFO) . 7-22 . etc.Gets the right information to the right people so decisions can be made. • Chief Information Officer (CIO) . • Chief Operating Officer (COO) .TOP MANAGEMENT *Organizing: Creating a Unified System LG4 • Chief Executive Officer (CEO) * .Implements CEO’s changes. plans budgets. collects funds. 7-23 .MANAGERIAL SKILLS * Tasks and Skills at Different Levels of Management LG4 • Technical Skills -. they enable managers to work through and with people.The ability to perform tasks in a * specific discipline or department. • Human Relations Skills -.Skills that involve the ability to picture the organization as a whole and the relationship among its various parts. • Conceptual Skills -.Skills that involve communication and motivation. SKILLS NEEDED at VARIOUS LEVELS of MANAGEMENT * Tasks and Skills at Different Levels of Management LG4 * 7-24 . .Establish corporate values.Promote corporate ethics. . 7-25 .Embrace change. .Stress accountability and responsibility.LEADERSHIP * Leading: Providing Continuous Vision and Values.Communicate a vision and rally others around that vision. . LG5 • Leaders must: * . 7-26 . • Free-Rein Leadership – “Laissezfaire” Managers set objectives.LEADERSHIP STYLES • Autocratic Leadership – “Self” Making managerial decisions without consulting others. * Leadership Styles LG5 * • Participative or Democratic Leadership – “Others” Managers and employees work together to make decisions. employees are free to do whatever is appropriate to accomplish those objectives. VARIOUS LEADERSHIP STYLES * Leadership Styles LG5 * 7-27 . Progressive leaders give employees authority to make decisions on their own without consulting a manager.Giving workers the education and tools they need to make decisions. • Enabling -.* EMPOWERMENT and ENABLING Empowering Workers * LG5 • Empowerment -. • Customer needs are handled quickly. • Manager’s role becomes less of a boss and more of a coach. 7-28 . • Allow lower-level managers to make decisions.WORK SMARTER * How to Ease Pressure on Workers Empowering Workers LG5 * • Manage output instead of hours. • Shift hiring emphasis to collaboration. Source: BusinessWeek. www.businessweek. 7-29 . • Train workers to be ready for a more complex corporate structure. • Use new technology to foster teamwork.com. MANAGING KNOWLEDGE * Managing Knowledge LG5 * • Knowledge Management -Finding the right information. keeping the information in a readily accessible place and making the information known to every one in the firm. 7-30 . FIVE STEPS of CONTROLLING * Controlling: Making Sure it Works LG6 * 7-31 . 7-32 .cfo. www.ARE YOU a MICROMANAGER? * Controlling: Making Sure it Works * LG6 • Do you have strategic initiatives that you have not addressed? • Do you often check on employees for quality control? • Do you often check on subordinates throughout the day? • Do you rarely take vacations? • Is there a lot of turnover? Source: CFO Magazine.com. • Internal Customers -. 7-33 . who buy products for their own use.Individuals and units within the firm that receive services from other individuals or units.Dealers. stakeholders and customers (both internal and external) are important. and ultimate customers (or end users). * LG6 • Pleasing employees.MEASURING SUCCESS * A Key Criterion for Measurement: Customer Satisfaction • Traditional forms of measuring success are financial. • External Customers -. who buy products to sell to others. REVIEW ONLY . PROGRESS ASSESSMENT *Progress Assessment * • What’s the difference between goals and objectives? • What does a company analyze when it does a SWOT analysis? • What are the differences between strategic. tactical and operational planning? • What are the seven Ds in decision making? 7-35 . • Many people are not willing to work at companies unless they are treated well with fair pay.Recruiting. 7-36 .STAFFING * Staffing: Getting and Keeping the Right People * LG4 • Staffing -. hiring. motivating and retaining the best people available to accomplish the company’s objectives. • Recruiting good employees is critical. 7-37 .000 July 1993 Citigroup 53. December 1. 2008.870 January 2002 Boeing 28.000 January 1993 U.businessweek.000 November 2008 Sears Roebuck 50.LAYOFF LEADERS * Staffing: Getting and Keeping the Right People Largest Layoff Announcements.S.000 January 2003 Boeing 31.000 January 2001 * Source: Businessweek. 1993 to 2008 LG4 Company Employees Date IBM 60.000 September 2001 U. www.000 December 1998 DaimlerChrysler 26. Air Force 40.000 January 2002 Kmart 35.000 December 2005 Ford 35. Postal Service 29.S.com. The presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders.ACCOUNTABILITY through TRANSPARENCY * Leading: Providing Continuous Vision and Values. 7-38 . * LG5 • Transparency -. If they do fail. Will you give your department head the report? What is the ethical thing to do? What might be the consequences? 7-39 .To SHARE or NOT to SHARE * (Making Ethical Decisions) * As a first-line manager. you could be promoted. The findings of the report indicate your manager’s plans should fail. you have new information that your department head hasn’t seen yet. cio.com. www. 7-40 .NATURAL BORN LEADERS? Four Types of Executives Rationalists Humanists Politicists Culturists * Leadership Styles LG5 * Source: CIO Magazine. PROGRESS ASSESSMENT *Progress Assessment * • How does enabling help achieve empowerment? • What are the five steps in the control process? • What’s the difference between internal and external customers? 7-41 . 7-42 . 70 are performers in 12 cities. * • Creators wrote a 132-page Blue Man manual helping them understand the importance of managing growth.I’D RATHER be BLUE * (Spotlight on Small Business) • The original “Blue Men” manage over 500 employees.