Management and Leadership

in Today’s Organizations

THE FUTURE OF BUSINESS:

The Essentials
Gitman & McDaniel
Chapter 6
 1 The Role of Management

The process of guiding

the development,
maintenance, and
Management allocation of resources
to attain
organizational goals.
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 1 The Managerial Process

Managerial
Process
Cycle
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 1 Managerial Work Activities

Organizing
Planning

Controlling Leading
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2 Four Types of Planning

Strategic

Tactical

Operational

Contingency
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2 What Managers Do and Why

Planning

Organizing Organizational Organizational

mission and efficiency and
Leading objectives effectiveness

Controlling
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2 Strategic Planning

Strategic

1-5 years

Top management

External environment and entire organization

Establish mission and long-term goals

Broad and general content

High degree of uncertainty

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2 Mission Statement

A formal document that

states an organization’s
Mission Statement purpose and reason for
existing and describes
its basic philosophy.
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2 Tactical Planning

Tactical

Less than one year

Middle management

Strategic business units

Establish mid-range goals for implementation

More specific content

Moderate degree of uncertainty

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2 Operational Planning

Operational

Current time frame

Supervisory management

Geographical and functional divisions

Implement and activate specific objectives

Specific and concrete content

Reasonable degree of certainty

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2 Contingency Planning

Contingency

When an event occurs or situation demands

Top and middle management

External environment and entire organization

Meet unforeseen challenges and opportunities

Both broad and detailed content

Reasonable degree of certainty

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3 Organizing

Dividing up tasks (division of labor)

Licensing (departmentalization)

Assigning Authorities
& Responsibilities (delegation)
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3 Levels of a Managerial Hierarchy

Top Strategic Plans

Management

Middle Tactical Plans

Management

Supervisory Operational Plans

Management
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3 Levels of a Managerial Hierarchy

Top Middle Supervisory

Management Management Management

CEO Regional Manager Supervisor

President Division head Team leader
Governor Director Foreman
General Director Plant manager
Sales manager
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4 Leadership

The process of guiding

and motivating others
Leadership toward the achievement
of organizational goals.
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4 Primary Sources of Power

Derived from individual’s position

Legitimate power
in an organization

Derived from individual’s

Reward power
control over rewards

Derived from individual’s ability to

Coercive power
threaten negative outcomes

Derived from individual’s

Expert power
extensive knowledge

Derived from individual’s charisma

Referent power
and respect/admiration inspired
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4 Leadership Styles

Amount of authority held by the leader

Free-Rein
Autocratic Style Participative Style
(Laissez-Faire) Style

Amount of authority held by group members

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4 Participative Leadership

Democratic
Participative
Leadership Consensual
Types

Consultative
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4 Empowerment

The process of giving

employees increased
autonomy and discretion
Empowerment to make decisions, as
well as control over the
resources needed to
implement those
decisions.
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4 Corporate Culture

The set of attitudes,

values, and standards
Corporate Culture that distinguishes one
organization from
another.
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5 The Control Process

5. 1.
Use information Set
to set up future performance
performance standards
standards and goals

4.
2.
Take
Measure
corrective
performance
action
3.
Compare actual
performance
to established
standards
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6 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

Disturbance Handler Handles unexpected events and crises

Resource Allocator Designates use of organizational resources

Chapter 6

Negotiator Represents the company at negotiating processes

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6 The Decision Making Process

1. Recognize or define the problem

2. Identify possible solutions

3. Select one or more alternatives

4. Put the plan into action

5. Follow up to see if problem is solved

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7 Managerial Skills
Chapter 6

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7 Managerial Skills

A manager’s specialized areas

Technical
of knowledge and expertise, and
Skills
the ability to apply that knowledge

A manager’s interpersonal skills

Human Relations
used to accomplish goals through
Skills
the use of human resources

A manager’s ability to view the

Conceptual organization as a whole, understand
Skills the interdependencies, and its
relation to external environment
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8 Trends in Management and Leadership

 Increasing employee
empowerment
 Growing use of
information technology
 Increasing need for global
management skills
 Need to prepare for crises management
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