CHAPTER 7 – MANAGEMENT AND LEADERSHIP
LEARNING GOALS
After you have read and studied this chapter, you should be able to:
1.Describe the changes occurring today in the management function.
2.Describe the four functions of management.
3.Relate the planning process and decision making to the accomplishment of company goals.
- Describe the organizing function of management.
- Explain the differences between leaders and managers, and describe the various leadership styles.
6.Summarize the five steps of the control function of management.
LEARNING THE LANGUAGE
Listed below are important terms found in the chapter. Choose the correct term for the definition and write it in the space provided.
Autocratic leadership / Knowledge management / PMIBrainstorming / Leading / Problem solving
Conceptual skills / Management / Staffing
Contingency planning / Middle management / Strategic planning
Controlling / Mission statement / Supervisory management
Decision making / Objectives / SWOT analysis
Enabling / Operational planning / Tactical planning
External customers / Organization chart / Technical skills
Free-rein leadership / Organizing / Top management
Goals / Participative (democratic) leadership / Transparency
Human relations skills / Planning / Vision
Internal customers
1.A ______is a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats.
2.Individuals and units within the firm called ______receive services from other individuals or units.
3.______are specific short- term statements detailing how to achieve the organization’s goals.
4.The process of ______involves developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done.
5.Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm is known as ______.
6.The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling is called ______.
7.The process of ______means choosing among two or more alternatives.
8.An individual who demonstrates ______makes managerial decisions without consulting others.
9.The management function of ______includes designing the structure of the organization, and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives.
10.A ______is an encompassing explanation of why the organization exists and where it‘s trying to head.
11.When an individual uses ______, managers and employees work together to make decisions.
12. ______is the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.
13.The management function of ______includes hiring, motivating, and retaining the best people available to accomplish the company’s objectives.
14.Skills that involve the ability to perform tasks in a specific discipline or department are considered ______.
15.The leadership style known as ______involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.
16.The management function of ______involves anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
17.The highest level of management, consisting of the president and other key company executives who develop strategic plans is called ______.
18.When a manager does ______, he or she is in the process of preparing alternative courses of action that may be used if the primary plans don’t achieve the objectives of the organization.
19.A(n) ______is a visual device that shows relationships among people and divides the organization’s work: it shows who is accountable for the completion of specific work and who reports to whom.
20.______is the process used to accomplish organizational goals through planning organizing, leading, and controlling people and other organizational resources.
21.______involve the ability to picture the organization as a whole and the relationship among its various parts.
22.The management function of ______involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not.
23.Creating a vision for the organization, and guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives is called ______.
24.The level of management known as ______includes managers who are directly responsible for supervising workers and evaluating their daily performance.
25.Broad, long-term statements known as ______are accomplishments an organization wishes to attain.
26.______means giving workers the education and they need to make decisions.
27.When a manager is doing ______he or she is setting work standards and schedules necessary to implement the company’s tactical objectives.
28.Dealers, who buy to sell to others, and ultimate customers, or end users, who buy products for their own personal use are called ______.
29.The ______is an outline of the fundamental purposes of the organization.
30.Skills that involve communication and motivation, called ______, enable managers to work through and with people.
31.In a ______, all the pluses for a solution are listed in one column, all the minuses in another and the interesting implications in a third column.
32.When individuals are involved in ______, they are coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.
33.______is the process of solving the everyday problems that occur: it is less formal than the decision-making process and usually calls for quicker action.
34.Presenting company facts and figures in a way that is clear and apparent to all stakeholders is commonly known as ______
ASSESSMENT CHECK
Learning Goal 1
Manager’s Roles are Evolving
1.Describe how today managers have changed.
Learning Goal 2
Functions of Management
2.The four functions of the management process are:
a. ______c. ______
b. ______d. ______
3. Identify the activities performed in each of the management functions.
FunctionActivities
a.______a.______
b.______
c.______
d.______
b.______a.______
b.______
c.______
d.______
c.______a.______
b.______
c.______
d.______
e.______
d.______a.______
b.______
c.______
d. ______
4.In planning the trend today is ______
______
5.In organizing, many of today’s organizations are being designed around: ______
______
6.What must organizations do in order to please the customer at a profit?
7.In leading, the trend today is: ______
______
8.Controlling basically means measuring ______
______
Learning Goal 3
Planning: Creating a Vision Based On Values
9. Distinguish between a "vision" and a goal.
10.List the areas a meaningful mission statement should address:
- ______
- ______
- ______
- ______
- ______
- ______
11.A mission statement becomes ______
______
12.What is the difference between goals and objectives?
13.What two fundamental questions are answered in the planning process?
a.______
b.______
14.What questions are answered as a part of the SWOT analysis?
a. ______
b.______
c.______
d.______
e.______
f.______
g.______
h.______
i.______
j.______
k.______
15.What does S.W.O.T. stand for?
16.What are four forms of planning?
a.______c.______
b.______d. ______
17. Policies are: ______
Strategies are: ______
18.At the strategic planning stage, the company decides:
a. ______
b. ______
c. ______
19.Why is strategic planning becoming more difficult? What are some companies doing in response?
20.What activities are included in tactical planning? At what level of management is tactical planning usually done, compared to strategic planning?
21.How is operational planning different from strategic planning? At what level of management is operational planning done?
22.Why is it wise to make contingency plans?
23.In terms of planning leaders of market-based companies want to: ______
______
24.What are the 7 D’s of the decision making process?
a.______
b.______
c.______
d.______
e.______
f.______
g. ______
25.What is the difference between problem solving and decision making?
26.Describe two problem solving techniques used by companies.
Learning Goal 4
Organizing: Creating a Unified System
27.What are the three levels of management?
a.______b.______c.______
28.What are the responsibilities of a
CEO:______
COO:______
CFO:______
CIO/CKO:______
29.List examples of positions found in middle management. What has happened to some middle management positions?
30.What is another name for supervisory management?
31.Describe the three categories of skills managers should have.
a.______
b.______
c.______
32.How do the various levels of management differ in the skills needed?
33.What makes staffing so critical today?
Learning Goal 5
Leading: Providing Continuous Vision and Values
34.Describe the difference between management and leadership.
35.What are four things leaders must do?
a. ______
b. ______
c. ______
d. ______
36.Describe the important aspects of:
Autocratic leadership: ______
______
Participative leadership: ______
______
Free rein leadership: ______
______
37.Which leadership style is best?
38.How do traditional leaders differ from progressive leaders? How is a manager’s role changing as a result?
39.What is the difference between empowerment and enabling? How is enabling the key to the success of empowerment?
40.What are the two steps in developing a knowledge management system? What is the key to a successful knowledge management system?
Learning Goal 6
Controlling
41.List the five steps in the control process
a.______
b.______
c.______
d.______
e.______
42.Standards must be:
a. ______b. ______c. ______
43.The criterion for measuring success in a customer-oriented firm is: ______
______
44.Other than your answer to the above question, identify other criteria for measuring organizational effectiveness.
CRITICAL THINKING EXERCISES
Learning Goal 1
1.Re read the first section of this chapter, “Managers’ Roles are Evolving”.If you have a job or an internship, (or if you used to have a job) evaluate your manager’s actions using the description of management behavior in this section. For example, does your manager tell you what to do, or does he or she place more emphasis on training you to make decisions on the job? Does management emphasize teamwork and cooperation? Has this manager been with the company for a long time, or has he or she moved around from one company to another? Is your manager a skilled communicator, team player, planner, coordinator, organizer?
Learning Goal 2
2.There are four functions of management:
PlanningLeading
OrganizingControlling
Read the following examples and identify which leadership function the manager is performing.
a. ______Grant Wimmer is concerned about his newest employee, Peter Wong. In looking over his sales reports, Grant sees that Peter hasn’t been performing well and has only met his sales goals once in the past 6 months. Grant is thinking about ways to help Peter improve his sales performance
b.______John Bradford is a manager for a firm in the technology industry. John feels it is vital for him to monitor the changes in the industry and look for opportunities presented by those changes. If he sees a major trend emerging, John sets an objective to learn more about it and to determine ways for his company to participate in the trend.
c. ______Elvira Mihalek is a manager who spends a lot of time with her employees helping them to attain their goals. She looks for ways to motivate them, makes sure they are trained well, and gives them a great deal of freedom to do their jobs in the best way for them, while still working to achieve the goals of the organization.
d. ______Phil Ardmore is focused on how his company can better serve their customers. He is constantly looking for ways he can design jobs and his department in the best way to be as flexible as possible to meet the needs of their customers.
Learning Goal 3
3.Below are examples that illustrate the planning function for an automotive manufacturer. Match the statement with the proper term:
Mission statementObjectives
GoalsVision
a.______To assemble and distribute automotive products worldwide and achieve
market share leadership.
b.______Introduce a hybrid version of a current model within the next three years to U.S., Canadian, and European markets.
c. ______To be the premier auto company in North America in the world by 2015.The purpose of this company is to build cars and trucks that people will buy, will enjoy driving, and will want to buy again.
d. ______Our vision is to be the world leader in transportation products and related services. In order to achieve this vision, we recognize that many issues must be addressed and many goals attained. It is imperative that economic, environmental and social objectives be integrated into our daily business objectives and future planning activities so that we can become a more sustainable company.
4. Strategic and Tactical planning provide the framework for the planning process. Contingency planning provides alternative plans of action.
Eric Benoit wants to start his own business making a product he has invented for the automotive industry. It’s a windshield design that automatically darkens when the car is in the sun, then lightens when the car is in the shade, or as it gets later in the day. The technology is the same as that used in some eyeglass lenses. The windshield can be installed in the factory, but can also be installed by dealers, or by windshield repair/replacement companies, at any time after the manufacture of the car. The product’s brand name, and the name of Eric’s company is
”Sun-2-Shade”.
Complete the following for Eric’s new company:
Mission Statement:
a. Strategic plan
b. Tactical plan
c. Contingency plan
- Using the information in your text and in the Spotlight on Small Business, do a brief SWOT analysis for Sun-2-Shade. In other words, what do you believe may be the strengths, weaknesses, opportunities and threats for this company in the coming years?
Learning Goal 4
6.Identify two individuals at your college or university, or at your place of employment at each level of management. Can you draw a simple organization chart? With some research, you may be able to find an organizational chart for your school or your company.
a. Top______
______
b. Middle______
______
c.Supervisory______
______
7.There are many specific skills needed by various levels of management:
Technical skills Managing diversity
Human relations skillsDecision-making
Conceptual skills
For each of the following situations, indicate the management level and the skills being used or described.
A. Alice Burling is concerned about Bob Mailing's sales performance. In their meeting, Alice and Bob agree there's a problem. Alice listens carefully to Bob while he explains the situation in his territory, and after asking some questions, Alice shows Bob how to handle things differently. After the meeting, Alice completes a schedule assigning new accounts to various salesmen in her department. Later, with one of the sales people, Alice makes a sales call to a particularly important customer.
a. Management level ______
b. Skills ______
B. In a typical week in her office, Maria works on a long range forecast for a new product the company is considering, and decides to implement a new program to encourage communication and idea exchange between division heads. She appoints several division heads to formulate a plan for implementation. She schedules most meetings, but leaves time open for interruptions and unplanned meetings with subordinates.
a. Management level ______
b. Skills ______
C. In reviewing weekly production reports, Joel Hodes notices a drop in overall production from last month. He works for several days on an incentive plan he thinks will push production back up to the company's objectives and still maintain high morale. He then calls a meeting with the line supervisors. After getting their responses and suggestions, Joel revises and implements the plan in his plant.
a. Management level______
b. Skills______
Learning Goal 5
8.You have been hired to be a supervisor in the Sun-2-Shade plant where they are going to make the self-darkening windshields, referred to in a previous exercise. Your workers are well educated and highly skilled. How do you intend to lead and organize these employees? How will your leading (or directing) differ from Eric's, the top manager?
9.Effective leadership styles range along a continuum based upon the amount of employee involvement in setting objectives and making decisions. The three leadership styles are called:
AutocraticParticipative (Democratic) Free rein
Which of those styles are being illustrated in the following situations?
A.Production workers complain about having to punch a time clock each day.
a. ______“Too bad, I'm not getting rid of it!”
b. ______“Let's get a committee together and see if we can come up with some alternatives to using the time clock.”
B. A university sees a need for some action to be taken to reverse declining enrollment trends.
a. ______“Let's form a committee of faculty and administrators to study the problem and give recommendations on how to solve the problem.”
b. ______“The objective for each division is to increase enrollment by 10% for the next school year. Each division is free to take whatever action is appropriate for their area in order to reach the objective.”
C. A manager notices that an employee consistently turns in work past the deadline.
a. ______“Bob, your work has been late three times this month. This is a problem. How can we work together to solve it?”
b. ______“Bob, your work has been late three times this month. One more time and you will be disciplined. Two times and you're fired. Got it?”
10.Sun-2-Shade, the company that makes self-darkening windshields for the automotive industry, has been in business for several months and you have just been assigned to re-organize the production department. Eric Benoit, the CEO, knows that he will need inventory if things go as planned. Production is very slow right now but there are some orders to fill. Money, however, is tight. All the production workers are peers (none are supervisors), but there is one member of the group who appears to be the informal leader. The workers are paid by the hour, and they are well paid by normal standards.
You have some ideas about how to increase production without increasing costs. One idea, for example, is to change the method of paying workers from hourly to by how much they produce. The way you have it figured, the workers would have to produce more to make the same income. Another way is to set up individual workstations to cut down on the amount of socializing you have seen going on.
While you are confident these ideas, and others you have thought of, are the best solutions, you aren't sure how to implement the changes. You do know that this will be a test of your management and leadership skills.
a. How would you go about developing alternatives and implementing changes you believe are necessary to increase productivity and save money?