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.
6. Summarize the five steps of the control function of management.
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 |
Internal customers |
Planning |
Brainstorming |
Knowledge management |
PMI |
Conceptual skills |
Leading |
Problem solving |
Contingency planning |
Management |
Staffing |
Controlling |
Middle management |
Strategic planning |
Decision making |
Mission statement |
Supervisory management |
Enabling |
Objectives |
SWOT analysis |
External customers |
Operational planning |
Tactical planning |
Free-rein leadership |
Organization chart |
Technical skills |
Goals |
Organizing |
Top management |
Human relations skills |
Participative (democratic) leadership |
Vision |
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.
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.
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.
34. Presenting company facts and figures in a way that is clear and apparent to all stakeholders is commonly known as ........_
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.
Function Activities
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
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.
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:
Planning Leading
Organizing Controlling
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 statement Objectives
Goals Vision
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
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.
............
7. There are many specific skills needed by various levels of management:
Technical skills Managing diversity
Human relations skills Decision-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:
Autocratic Participative (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?
b. What leadership style do you think you used in developing your solution? Why?
11. "The control system's weakest link tends to be the setting of standards." Standards must be: specific, attainable, and measurable.
Improve the way the following vague standards are written:
a. “Increase sales” ...................._
b. “Get a degree” ....................__
c. “Be a better manager” ................_______
MULTIPLE CHOICE – Circle the best answer
Learning Goal 1
1. Managers today:
a. closely supervise highly skilled workers who would like to “do their own thing.”
b. emphasize teamwork and cooperation, and act as coaches, rather than “bosses.”
c. have to become specialists in one or two functional areas.
d. have to function as intermediaries between workers and unions.
2. The financial crisis of 2008-2009 created problems for companies because:
a. managers had to cut jobs and lay off many workers.
b. managers found too many options for financing as banks looked for more customers.
c. it was difficult to find workers to fill jobs in plants that had been modernized.
d. management moved away from the team concept to an emphasis on discipline and order giving as more workers refused to leave jobs.
Learning Goal 2
3. Kajori is a manager for a small software firm. This week, Kajori is focusing on researching some new applications in the computer industry that could present opportunities for her firm. Kajori is involved in the ___________ function of management.
a. organizing
b. planning
c. leading
d. controlling
4. “We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relationships, providing the best products and services based on standards-based technology, and outperforming the competition with value and a superior customer experience.” This statement is a part of Dell’s:
a. objectives.
b. strategy.
c. mission statement.
d. goal.
Learning Goal 3
5. H. Ameneggs is working on a project to determine his company’s strengths and weaknesses by looking at the economy, technology, the competition, social, and other changes that are affecting his firm. He is looking to identify some opportunities his company can take advantage of in the new economy. H. is also concerned about some things he has identified that inhibit his company’s growth. H. is working on
6. A(n) ___________is a specific short-term statement detailing how to achieve ___________.
a. mission statement/ goals
b. goal/ objectives
c. goal/the mission statement
d. objective/goal
7. Maria Mainini is in the middle of setting her plan for the next year. She knows the company has the goal of increasing market share in the Northeast, so she has developed a plan for expanding the advertising budget for the next year and adding at least one more sales person to cover the larger territories. Maria is involved in:
a. Contingency planning
b. Strategic planning
c. Tactical planning
d. Operational planning
8. Which of the following employees of the local hardware store, Hammerhead, would most likely be involved in strategic planning?
a. Joe Hartley – department head
b. Annelise Oswalt – advertising manager
c. Elliot Nessy – President and CEO
d. Manny Martinez – chief accountant
9. Which of the following is not part of the seven Ds of decision making?
a. Define the situation
b. Develop alternatives
c. Determine if the alternatives are possible.
d. Decide which alternative is best.
10. In the process of problem solving, managers sometimes use the technique of __________, which involves listing all the minuses of a solution in one column, all the plusses in another, and the implications in a third.
a. PMI
b. brainstorming
c. strategic planning
d. SWOT analysis
Learning Goal 4
11. General managers, division managers, plant managers and college deans are all a part of:
a. supervisory management.
b. middle management.
c. top management.
d. first-line management.
12. Harold is a supervisor in a small automotive shop. He spends a lot of his time training some workers, while helping others solve some of the problems they have in doing their jobs. He also runs the diagnostic machine. Harold spends time on:
a. technical skills.
b. mechanical skills.
c. human relations skills.
d. conceptual skills.
13. Which of the following is a false statement?
b. General consensus is that larger companies are more responsive to customer needs than smaller companies.
c. Many large firms are being restructured into smaller, customer-focused units.
d. Companies are organizing so that customers have more influence, not managers.
14. The management function of ___________ includes hiring, motivating and retaining the best people to accomplish the company’s objectives.
a. planning
b. staffing
c. controlling
d. leading
Learning Goal 5
15. Which of the following is not characteristic of a leader?
a. A leader has a vision and rallies others around the vision.
b. A leader will establish corporate values.
c. A leader will emphasize corporate ethics.
d. A leader will always attempt to keep things from changing.
16. When a manager uses democratic leadership, he or she will
a. work with employees to make decisions together.
b. set objectives and allow employees to be relatively free to do what it takes to accomplish them.
c. give employees direction, and be sure that they are doing their job the way the manager wants them to.
d. make managerial decisions without consulting employees.
17. At Schwinn, the bicycle manufacturer, managers of the various new departments were told, “ Go out and shape the department the way you want. You have total freedom.” That is an example of:
a. effective delegating.
b. free rein leadership.
c. decision making.
d. technical skills.
18. The first step in developing a knowledge management system is:
a. find answers to questions from the SWOT analysis
b. determine what knowledge is most important
c. setting goals and developing action plans
d. establishing performance standards
Learning Goal 6
19. Measuring performance relative to objectives and standards is part of ___________
a. decision making.
b. using technical skills.
c. directing.
d. controlling.
20. Which step in the control process is considered to be the weakest?
a. Setting clear standards
b. Monitoring and recording results
c. Communicating results to employees
d. Taking corrective action
21. Which of the following statements is stated most effectively as a control standard?
a. Cut the number of finished product rejects.
b. Empower employees to make more decisions next year.
c. Praise employees more often this month.
d. Increase sales of our top end product from 2000 in the first quarter to 3000 during the same period by the year 2010.
True-False
Learning Goal 1
1. _____ Today progressive managers are being educated to tell people what to do and to watch over the new type of workers.
2. _____ Because employees tend to stay at the same company for most of their careers, managers don’t have a need to earn the trust of their employees.
Learning Goal 2
3. _____ Planning in businesses today could include planning teams, which help monitor the environment, find opportunities and watch for challenges.
4. _____ Robert is a manager in a large hospital. Because the hospital is so big, Robert has been trying to find ways to make sure that the needs of the patients and other customers of the hospital are always met. He has looked at creating small teams on his floor that will each work to find ways to please the customers. This is an example of the organizing function of management.
Learning Goal 3
5. _____ A mission statement outlines a company’s fundamental purpose.
6. _____ Operational planning answers the questions “What is the situation now?” and” Where do we want to go?”
7. _____ A SWOT analysis begins with an analysis of the company’s profitability.
8. _____ The first step in decision making is to describe and collect the kind of information needed to make the decision.
Learning Goal 4
9. _____ Today staffing is a critical part of organizational success.
10. ____ The difference between managers and leaders is that a leader creates the vision, the manager carries it out.
11. ____ Top managers will spend their time developing tactical level plans.
12. ____ The skills needed by managers are different at different levels of management.
Learning Goal 5
13. ____ Enabling means giving employees the authority (the right) to make decisions on their own.
14. ____ Generally, there is one best leadership style to which all leaders should adhere.
15. ____ Autocratic leadership will be effective in emergencies or when absolute followership is needed.
16. ____ Progressive leaders are less likely than traditional leaders to give specific instructions to employees.
17. ____ Knowledge management tries to keep people from “re-inventing the wheel”, or duplicating the work of gathering information, every time a decision needs to be made.
Learning Goal 6
18. ____ The first step in the control process is to monitor and record performance results.
19. ____ The criteria for measuring success in a customer-oriented firm is customer satisfaction of both internal and external customers.
20. ____ External customers include the ultimate customer, also known as the “end user”.
You Can Find It On the Net
This is really a collection of several exercises – pick and choose!
Visit www.businessweek.com or www.inc.com and search for leadership related articles. What topics are new in the leadership area? Topics will change over time. How do the topics covered in the articles reinforce the material related in our text?
Alternatively click on http://crs.uvm.edu/gopher/nerl/personal/Assess/b.html
And take the quiz Assessment of leadership qualities and skills.
Go to the website listed below:
1. SWOT analysis |
13. Staffing |
25. Goals |
2. Internal customers |
14. Technical skills |
26. Enabling |
3. Objectives |
15. Free rein leadership |
27. Operational planning |
4. Tactical planning |
16. Planning |
28. External customers |
5. Knowledge management |
17. Top management |
29. Mission statement |
6. Middle management |
18. Contingency planning |
30. Human relations skills |
7. Decision making |
19. Organization chart |
31. PMI |
8. Autocratic leadership |
20 Management |
32. Brainstorming |
9. Organizing |
21. Conceptual skills |
33. Problem solving |
10. Vision |
22. Controlling |
34. Transparency |
11. Participative (democratic) |
23. Leading |
|
12. Strategic planning |
24. Supervisory management |
|
Learning Goal 1
Manager’s Roles are Evolving
Today’s managers are also younger, more are female, and fewer were educated at elite universities. In the future managers are more likely to be working in teams and assuming new roles in the firm, taking a leadership role in adapting to climate change.
Learning Goal 2
Functions of Management
2. The four functions of the management process are:
a. planning c. leading
b. organizing d. controlling
3. Function Activities
a. Planning a. Set goals
b. Develop strategies to reach goals
c. Determine resources needed
d. Set standards
b. Organizing a. Allocate resources, assign tasks establish procedures
b. Create structure
c. Recruit, select, train, develop employees
d. Effective placement of employees
c. Leading a. Guiding and motivating employees to work effectively
b. Give assignments
c. Explain routines
d. Clarify policies
e. Provide performance feedback
d. Controlling a. Measure results against objectives
b. Monitor performance relative to standards
c. Reward outstanding performance
d. Take corrective action
4. In planning the trend today is to have planning teams to help monitor the environment, find business opportunities, and watch for challenges.
5. In organizing, many of today’s organizations are being designed around pleasing the customer at a profit.
6. In order to please the customer at a profit, the organization must remain flexible and adaptable because customer needs change and organizations must change too.
7. In leading, the trend today is to empower employees, giving them as much freedom as possible to become self-directed and self-motivated. In smaller firms the role of managers is often telling employees exactly what to do. In most large modern firms, however, managers no longer tell people exactly what to do because often knowledge workers and others know how to do their jobs better than the manager.
8. Controlling basically means measuring whether what actually occurs in an organization actually meets the organization’s goal.
Learning Goal 3
Planning: Creating a Vision Based On Values
9. Goals are broad, long-term accomplishments that an organization wants to reach. A vision is greater than a goal; it’s the larger explanation of why the organization exists and where it’s trying to head.
10. A meaningful mission statement should address:
11. A mission statement becomes the foundation for setting goals and selecting and motivating employees.
12. Goals are the broad, long-term accomplishments an organization wishes to obtain. Objectives are specific, short-term statements detailing how to achieve the goals that have been set.
13. Two fundamental questions answered in the planning process are:
a. What is the situation now?
b. How can we get to our goal from here?
14. The questions answered by a SWOT include:
a. What is the situation now?
b. What is the state of the economy and other environments?
c. What opportunities exist for meeting people’s needs?
d. What products and customers are most profitable?
e. Who are our major competitors?
f. What threats are there to our business?
g. What external success factors affect the industry?
h. How does our firm measure up to other firms?
i. What are our social objectives?
j. What are our personal development objectives?
k. What can we do to survive and prosper during a recession?
15. S.W.O.T. stands for Strengths, Weaknesses, Opportunities, Threats
16. Four forms of planning are:
a. Strategic c. Operational
b. Tactical d. Contingency
17. Policies are broad guidelines for action
Strategies determine the beast way to use resources
18. At the strategic planning stage, the company decides:
a. which customers to serve
b. what products or services to sell
c. the geographic areas in which the firm will compete.
19. Strategic planning is becoming more difficult because changes are occurring so fast that plans set for even months in the future may quickly become obsolete. Therefore, some companies are making shorter-term plans that allow for quick responses to the market.
20. Tactical planning is the process of developing detailed, short-term strategies about what has to be done, who will do it and how it is to be done. Managers or teams of managers at lower levels of the organization do this type of planning, whereas strategic planning is done at top levels of management.
21. Whereas strategic planning looks at the organization as a whole, operational planning focuses on specific supervisors, department managers, and individual employees. The operational plan is the department manager’s tool for daily and weekly operations. Operational planning is done by the department manager, and his/her tool for daily and weekly operations.
22. It is wise to have alternative plans of action because the environment changes so rapidly. Contingency plans are needed in anticipation of those changes.
23. In terms of planning leaders of market based companies want to stay flexible, listen to customers, and seize opportunities when they come, whether they are planned or not.
24. The 7 D’s of the decision making process are:
a. Define the situation
b. Describe and collect needed information
c. Develop alternatives
d. Develop agreement among those involved
e. Decide which alternative is best
f. Do what is indicated (implement solution)
g. Determine whether the decision was a good one and follow up
25. Problem solving is less formal than decision making and usually calls for quicker action to resolve everyday issues.
26. Two problem solving techniques are brainstorming and PMI. Brainstorming means coming up with as many solutions as possible in a short period of time with no censoring of ideas. PMI means listing all the pluses (P) in one column, the minuses (M) in another, and the implications (I) in a third.
Learning Goal 4
Organizing: Creating a Unified System
27. The three levels of management are:
a. supervisory or first-line
b. middle
c. top
28. CEOs are responsible for introducing change into an organization.
The COO is responsible for putting those changes into effect. His or her tasks include structuring, controlling, and rewarding to ensure that people carry out the leader’s vision.
The CFO is responsible for obtaining funds, budgeting, collecting funds, and other financial matters.
The CIO/CKO is responsible for getting the right information to other managers.
29. Middle management positions include general managers, divisional mangers, branch managers, plant managers and at a college, deans. Many firms have eliminated some middle managers through downsizing.
30. Supervisory managers are also known as first-line managers because they’re the first level above workers.
31. Three skills managers must have are:
a. technical skills involve the ability to perform tasks in a specific discipline
b. human relations skills involve communication and motivation, and those associated with leadership, coaching, morale building, delegating, training and development, and help and support.
c. conceptual skills are needed in planning, organizing, controlling systems development, problem analysis, decision making, coordinating, and delegating.
32. First line managers need to be skilled in all three areas, but most of their time is spent on technical and human relations tasks. They spend little time on conceptual tasks. Top managers need to use few technical skills. Almost all of their time is devoted to human relations and conceptual tasks.
33. Staffing is critical because recruiting good employees is an important part of organizational success. It is especially important today in the Internet and high-tech areas. Firms with the most innovative and creative workers can go from start-up to major competitor with leading companies in a very short time.
Learning Goal 5
34. One difference between managers and leaders is that managers strive to create order and stability while leaders embrace and manage change. Leadership is creating a vision for others to follow, establishing corporate values and ethics, and transforming the way the organization does business. Good leaders motivate workers and create the environment for workers to motivate themselves, while management is the carrying out of the vision.
35. Four things leaders must do are:
a. Communicate a vision and rally others around the vision.
b. Establish corporate values.
c. Promote corporate ethics.
d. Embrace change.
36. a. Autocratic leadership involves making managerial decisions without consulting others. Such a style is effective in emergencies and when absolute followership is important.
b. Participative or Democratic leadership consists of managers and employees working together to make decisions. This type of leadership usually increases job satisfaction.
c. Free rein leadership involves managers setting objectives and employees being relatively free to do what it takes to accomplish those objectives. More and more firms are adopting this style of leadership with some employees. The traits needed by managers in such organizations include warmth, friendliness, and understanding.
37. Research indicates that successful leadership depends on what the goals and values of the firm are, who is being led and in what situation. Different leadership styles may be successful depending on the people and the situation and a leader may use different styles with different employees. There is no such thing as a leadership trait that is effective in all organizations.
38. Traditional leaders give explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization. This is called directing. Progressive leaders are less likely than traditional leaders to give specific instructions to employees. They are more likely to empower employees to make decisions on their own. In cooperation with employees, managers will set up teams that will work together to accomplish goals. The manager’s role is becoming less that of a boss and director and more that of a coach, assistant, counselor, or team member.
39. Empowerment means giving employees the authority and responsibility to respond quickly to customer requests. Enabling is the term used to describe giving workers the education and tools they need to assume their new decision-making powers.
40. The two steps to developing a knowledge management system include determining what knowledge is most important, and then setting out to find answers to those questions. The key to success is learning how to process information effectively and turn it into knowledge that everyone can use to improve processes and procedures.
Learning Goal 6
Controlling
41. The steps in the control process are:
a. Establish clear performance standards
b. Monitoring and recording actual performance
c. Comparing results against plans and standards
d. Communicating results and deviations to the employees involved
e. Taking corrective action when needed
42. Standards must be:
a. specific
b. attainable
c. measurable
43. The criterion for measuring success in customer-oriented firms is customer satisfaction of both internal and external customers.
44. Other criteria of organizational effectiveness may include the firm’s contribution to society and its environmental responsibility. Traditional measures of success are usually financial. These are still important, but they’re not the whole purpose of the firm. The purpose of the firm today is to please, employees, customers, and other stakeholders.
Learning Goal 1
1. Your answer will of course be determined by your own experience. The key is to look at how your manager fits into the new style of management, or if he or she is more traditional. If you work for a small firm, it may be that your manager acts in a more traditional manner, for example. But, if the company you work for is a larger organization, management styles may be different.
Learning Goal 2
2. a. Controlling c. Leading
b. Planning d. Organizing
Learning Goal 3
3.a. Goals c. Mission statement
b. Objectives d. Vision
4. Eric has a big job ahead of him. There are many possible responses to this question, but an example might be:
Mission statement: Sun-2-Shade’s mission is to make and develop products for the automotive industry. We are committed to helping our employees develop their potential and encourage their creativity and energy. We intend to continually create value for our customers by forming long lasting partnerships with our customers and suppliers, and to exceed our customer’s expectations.
a. Strategic plan – Become the supplier of self-darkening windshield for automobiles within the next 5 years, with a 25% market share. Become the major supplier for self-darkening windshields to the automotive aftermarket.
b. Tactical plan - Contact the production and/or engineering managers of the major automobile manufacturers and sell them on the product within the next 12 months. Develop a sales program to present to automotive aftermarket dealers, such as windshield repair companies.
c. Contingency plan - If the automakers are not interested right now, begin focusing on the automotive after-market, to sell product as an add-on.
5. A suggested SWOT analysis for Sun-2-Shade could contain:
Strengths: Young, creative workforce
Energetic CEO
Weaknesses: New company
Finding financing sources
Opportunities: Increasing interest in “luxury” options for automobiles
Increasing household incomes
Increased interest in products that make life more pleasant
Threats: Competition from other companies utilizing this technology
These are only suggestions. You may have come up with additional ideas!
Learning Goal 4
6. There are many variations for answering this question, depending upon your school or company. Some possibilities for a school are:
a. Top Managers - Chancellor, President, Provost
b. Middle - Dean of Instruction, Executive Dean, Associate Dean
c. Supervisory - Lab supervisor, Department chair, Business manager
The organization chart may look like this:
7. A. a. Supervisory level
b. Human relations, technical skills
B. a. Top management
b. Decision making, conceptual skills
C. a. Middle management
b. Human relations skills, technical skills, decision making, conceptual skills
Learning Goal 5
8. As a manager of educated and skilled workers you are less likely to be giving specific instructions to your employees. Instead, you may give them the authority to make decisions, which will allow them to respond quickly to any customer requests. In all likelihood, you will set up a team approach for the plant, using self-managed work teams if possible. Your job will be more that of a coach and team member, allowing for more participation in decision-making and more flexibility for the workers.
Eric, as the top manager of the company, will be concerned with a broader view of where he wants the company to go. As a first line manager, your job will be more specific, and your goals and objectives more specific than those Eric has outlined for the entire company. So your directions to subordinates, to the extent you will give them direction, will be more specific.
9. A. a. Autocratic
b. Participative
B. a. Participative
b. Free rein
C. a. Participative
b. Autocratic
10. Your answers will vary, as each of you will have your own individual style. However, review the material in this section of the chapter. Would a team-based approach be appropriate for this group? Could you use a participative management style? Did you consider getting opinions from the workers about what they see as a method to increase production without raising costs? Did you ask for advice? Are you making an effort to both empower and enable your employees?
11. a. Increase sales of Product X by 10% in the next 6 months.
b. Get a Bachelor's Degree in Business in 4 years.
c. Spend 3 hours a week reading management articles or books. Praise employees twice a week. Ask for employee input or suggestions monthly.
PRACTICE TEST
MULTIPLE CHOICE TRUE - FALSE
1. b 12. a 1. F 11. F
2. a 13. b 2. F 12. T
3. b 14. b 3. T 13. F
4. c 15. a 4. T 14. F
5. d 16. a 5. T 15. T
6. d 17. b 6. F 16. T
7. c 18. b 7. F 17. T
8. c 19. d 8. F 18. F
9. c 20. a 9. T 19. T
10. a 21. d 10. T 20. T
11. b
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