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Understanding business 8th by mcchugh nickels chapter 07

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Management,
Leadership,
and
Empowerment

Nickels

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McHugh

McGraw-Hill/Irwin
Understanding Business, 8e

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CHAPTER

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7

McHugh
1-1

7-1

© 2008 The McGraw-Hill Companies, Inc., All Rights


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New Management
Roles

• Skilled communicator
• Team player and a
planner
• Coordinator
• Organizer
• Supervisor

7-2


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Managing for the Future
1.
2.
3.
4.


5.
6.
7.
8.

Prepare for the unexpected
Faster reaction times
Flatter structure
Build teams
Grow globally
Develop cultural sensitivity
Invest in technology
Develop a family work
atmosphere
9. Create vision
10.Enhance competencies
7-3


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Management Functions

• Planning
• Organizing
• Leading
• Controlling
7-4


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Planning: Create Vision


Set Vision, Goals,
Objectives



Vision and Mission –




Objectives – Specific,
Short-Term
Continuous Process
(SWOT)

Why Organization
Exists, Purpose of
Organization



Goals – Broad, LongTerm
7-5


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Questions of Planning
1.

What is the situation now?



2.





Where do we want to go?

How can we get there from
here?
Strategic Planning
Tactical Planning
Operational Planning
Contingency Planning
7-6


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SWOT Analysis
Potential Internal
STRENGTHS

Potential Internal
WEAKNESSES

Potential External
OPPORTUNITIES

Potential External
THREATS

7-7


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Planning Functions

7-8


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Decision Making: Steps
1.1.Define
Define
7.7.Determine
Determine

6.6.Do
Do

2.2.Describe
Describe
Decision
Decision
Making
Making

5.5.Decide
Decide

3.3.Develop
Develop
Alternatives
Alternatives

4.4.Develop
Develop
Agreements
Agreements
7-9


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Organizing

• Skills/Tasks
• Stakeholders
• Staffing
7-10


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Management Pyramid
President,
Division
Heads, Plant
Mgrs.

Vice Pres.
Top
Top
Management
Management
Middle
MiddleManagement
Management

Employees

Foreman,
Dept Heads

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

Non-supervisory
Non-supervisory

7-11


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Required Management Skills

• Technical Skills
• Human Relations
Skills

• Conceptual
Skills

7-12


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Is It Difficult to be
a Leader Today?
Less Challenging (1%)

Don’t Know (1%)

No Change (9%)

More Challenging
(89%)
Source: USA Today

7-13


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Successful Leadership

• Communicate a Vision
• Establish Corporate
Values

• Promote Corporate
Ethics

• Embrace Change
7-14


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Leadership Styles

• Autocratic
• Participative
(Democratic)

• Free-rein
7-15


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Four Leadership Types

• Rationalists

• Humanists

• Politicists

• Culturists

Source: CIO Nov 2003

7-16


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Autocratic Leadership
Making
managerial
decisions without
consulting others

7-17


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Participative Leadership

• Democratic
• Managers and

employees
working
together to
make decisions
7-18


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Free-rein Leadership

• Managers set

objectives
• Employees are
relatively free to do
whatever it takes to
accomplish those
objectives
7-19


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Empowering Employees

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

• Enabling: Giving

workers the education
tools needed to make
decisions.
7-20


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Manager’s
Empowerment Checklist

• TARGET

• TRUTH

• TOOLS

• TRACKING

• TRAINING

• TOUCH

• TIME

• TRUST

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

7-21


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Knowledge Management


Do you want to know
more about your
customers?



What about
competition?



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



What do I still not
know?



Whom should I be
asking?

7-22


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Controlling
Feedback

Are standards
realistic?

5. If needed, take
corrective action

4. Communicate
results

1. Establish
clear standards

2. Monitor and record
performance

3. Compare
results against
standards

7-23


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Are You a
Micromanager?

• Do you have strategic initiatives that you





have not addressed?
Do you often check on your employees
for quality control?
Do you often check on your subordinates
throughout the day?
Do you seldom take a vacation?
Is there a lot of turnover?

Source: CFO May 2005

Did you answer YES to any question?

7-24


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Most Critical Trends,
Management Concerns

• Globalization
• Improving Knowledge Management
• Cost and Cycle Time Reduction
• Improving Global Supply Chains
• Manufacturing at Multiple Locations and


in Many Countries
Managing More Part-time, Temporary and
Contract Workers

Source: Quality Digest 2004

7-25


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