Chapter 7

Report
Chapter 7
Management and Leadership in Today’s Organizations
Prepared by
Norm Althouse
University of Calgary
Copyright © 2011 by Nelson Education Ltd.
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Learning Outcomes
1 Explain the role of management.
2 Discuss the four types of planning.
3 List the primary responsibilities of managers in organizing activities.
4 Describe how leadership styles influence a corporate culture.
5 Examine how organizations control activities.
6 Summarize the roles managers take on in different organizational settings.
7 Identify the set of managerial skills necessary for managerial success.
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8 List some of the trends that will affect management in the future.
Copyright © 2011 by Nelson Education Ltd.
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Management
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Leadership
Top leadership is critical for
the success in organizations.
Today companies rely on
managers to guide the daily
process using human,
technological, financial, and
other resources to create a
competitive advantage.
Authority
Responsibility
right to make decisions
assignment of tasks
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Accountability
acceptance of success
or failure
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The Role of Management
Management
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Efficiency
Effectiveness
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The process of guiding
the development,
maintenance, and
allocation of resources
to attain
organizational goals.
Using the least amount of resources
(doing things right)
Producing the desired results or goods
(doing the right thing)
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The Managerial Process
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Managerial
Process
Cycle
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Managerial Work Activities
Organizing
Planning
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Controlling
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Leading
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Managerial Process
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Four Types of Planning
Strategic Planning
Long range, broad goals
Tactical Planning
To implement a strategic plan;
shorter term and more specific
Operational Planning
Creating very specific policies
and procedures
Contingency Planning
Alternative actions for
unusual or crisis situations
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Importance of Contingency Plans
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Contingency plans are needed to cope with
unforeseen circumstances such as:
 Natural disasters
 Acts of terrorism
 Radical new technology
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Thomson Canada Limited
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Mission Statement
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Mission Statement
A formal document that
states an organization’s
purpose and reason for
existing and describes
its basic philosophy.
“Google's mission is to organize the
world's information and make it
universally accessible and useful.”
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Organizing
Dividing up tasks
Grouping
(jobs and employees)
Assigning
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(authority and responsibilities)
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(division of labour)
(departmentalization)
(delegation)
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Levels of a Managerial Hierarchy
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Leadership
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Leadership
Copyright © 2011 by Nelson Education Ltd.
The process of guiding
and motivating others
toward the achievement
of organizational goals.
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Primary Sources of Power
Legitimate power
Derived from individual’s position
in an organization
Reward power
Derived from individual’s
control over rewards
Coercive power
Derived from individual’s ability to
threaten negative outcomes
Expert power
Derived from individual’s
extensive knowledge
Referent power
Derived from individual’s charisma
and respect/admiration inspired
Copyright © 2011 by Nelson Education Ltd.
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Leadership Styles
Amount of authority held by the leader
Autocratic Style
Participative Style
Free-Rein
(Laissez-Faire) Style
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Amount of authority held by group members
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Empowerment
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Empowerment
The process of giving
employees increased
autonomy and discretion
to make decisions, as
well as control over the
resources needed to
implement those
decisions.
The Federal Express employee who hired a helicopter
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Corporate Culture
Corporate Culture
The set of attitudes,
values, and standards
that distinguishes one
organization from
another.
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IBM: suits and ties, no liquor v Apple: t-shirts, Friday afternoon beer & pizza
Xeroxoid story at the College of Commerce circa 1985
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Chapter 7
The Control Process
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Copyright © 2011 by Nelson Education Ltd.
Managerial Roles
Informational Roles
Monitor
Gathers information relevant to organization
Disseminator
Provides information where it is needed
Spokesperson
Transmits information to people outside the organization
Interpersonal Roles
Figurehead
Represents the company in a symbolic way
Leader
Guides and motivates employees to achieve goals
Liaison
Acts as a go-between among individuals, inside and outside
Decisional Roles
Entrepreneur
Searches out new opportunities and initiates change
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Disturbance Handler Handles unexpected events and crises
Resource Allocator
Designates use of organizational resources
Negotiator
Represents the company at negotiating processes
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Chapter 7
The Decision Making Process
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Chapter 7
Managerial Skills
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Managerial Skills
Technical
Skills
A manager’s specialized areas
of knowledge and expertise, and
the ability to apply that knowledge
Human Relations
Skills
A manager’s interpersonal skills
used to accomplish goals through
the use of human resources
Conceptual
Skills
A manager’s ability to view the
organization as a whole, understand
the interdependencies, and its
relation to external environment
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And the newest managerial skill that has been identified:
Global
Management
Skills
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A manager’s ability to operate in
diverse cultural environments
Trends in Management and Leadership
 Crisis management
 Growing use of information technology
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 Increasing need for global management skills
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