51 terms

CHAPTER 7. Management and Leadership

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Terms in this set (...)

autocratic leadership
Leadership style that involves making managerial decisions without consulting others.
brainstorming
Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.
conceptual skills
Skills that involve the ability to picture the organization as a whole and the relationship among its various parts.
contingency planning
The process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives.
controlling
A management function that 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.
decision making
Choosing among two or more alternatives.
enabling
Giving workers the education and tools they need to make decisions.
external customers
Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.
free-rein leadership
Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.
goals
The broad, long-term accomplishments an organization wishes to attain.
human relations skills
Skills that involve communication and motivation; they enable managers to work through and with people.
internal customers
Individuals and units within the firm that receive services from other individuals or units.
knowledge management
Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.
leading
Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives.
management
The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.
middle management
The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.
mission statement
An outline of the fundamental purposes of an organization.
objectives
Specific, short-term statements detailing how to achieve the organization's goals.
operational planning
The process of setting work standards and schedules necessary to implement the company's tactical objectives.
organizing
A management function that 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.
participative (democratic) leadership
Leadership style that consists of managers and employees working together to make decisions.
planning
A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
PMI
Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.
problem solving
The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action.
staffing
A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives.
strategic planning
The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.
supervisory management
Managers who are directly responsible for supervising workers and evaluating their daily performance.
SWOT analysis
A planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.
tactical planning
The process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done.
technical skills
Skills that involve the ability to perform tasks in a specific discipline or department.
top management
Highest level of management, consisting of the president and other key company executives who develop strategic plans.
transparency
The presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.
vision
An encompassing explanation of why the organization exists and where it's trying to head.
What does management look like today?
At one time, managers were called bosses, and their job consisted of telling people what to do, watching over them to be sure they did it, and reprimanding those who didn't. Many, if not most, managers still behave that way. Today, however, some managers tend to be more progressive. For example, they emphasize teams and team building; they create drop-in centers, team spaces, and open work areas. They tend to guide, train, support, motivate, and coach employees rather than tell them what to do.
What reasons can you give to account for changes in management?
Leaders of Fortune 100 companies today tend to be younger, more of them are female, and fewer of them were educated at elite universities. They know that many of their employees know more about technology and other practices than they do. Therefore, they tend to put more emphasis on motivation, teamwork, and cooperation. Managers in the future are likely to be assuming completely new roles in the firm. For one thing, they will be taking a leadership role in adapting to climate change. Further, they'll be doing more expansion overseas.
What are the primary functions of management?
The four primary functions are (1) planning, (2) organizing, (3) leading, and (4) controlling.
How do you define each of these functions?
Planning includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives. Organizing includes designing the structure of the organization and creating conditions and systems in which everyone and everything works together to achieve the organization's goals and objectives. Leading means creating a vision for the organization, and communicating, guiding, training, coaching, and motivating others to achieve goals and objectives. Controlling means measuring whether what actually occurs meets the organization's goals.
What's the difference between goals and objectives?
Goals are broad, long-term achievements that organizations aim to accomplish, whereas objectives are specific, short-term plans made to help reach the goals.
What is a SWOT analysis?
Managers look at the strengths and weaknesses of the firm and the opportunities and threats facing it.
What are the four types of planning, and how are they related to the organization's goals and objectives?
Strategic planning is broad, long-range planning that outlines the goals of the organization. Tactical planning is specific, short-term planning that lists organizational objectives. Operational planning is part of tactical planning and sets specific timetables and standards. Contingency planning is developing an alternative set of plans in case the first set doesn't work out.
What are the steps involved in decision making?
The six Ds of decision making are (1) define the situation; (2) describe and collect needed information; (3) develop alternatives; (4) decide which alternative is best; (5) do what is indicated (begin implementation); and (6) determine whether the decision was a good one, and follow up.
What are the three levels of management in the corporate hierarchy?
The three levels of management are (1) top management (highest level consisting of the president and other key company executives who develop strategic plans); (2) middle management (general managers, division managers, and plant managers who are responsible for tactical planning and controlling); and (3) supervisory management (first-line managers/supervisors who evaluate workers' daily performance).
What skills do managers need?
Managers must have three categories of skills: (1) technical skills (ability to perform specific tasks such as selling products or developing software), (2) human relations skills (ability to communicate and motivate), and (3) conceptual skills (ability to see organizations as a whole and how all the parts fit together).
Are these skills equally important at all management levels?
Managers at different levels need different skills. Top managers rely heavily on human relations and conceptual skills and rarely use technical skills, while first-line supervisors need strong technical and human relations skills but use conceptual skills less often. Middle managers need to have a balance of all three skills
What's the difference between a manager and a leader?
A manager plans, organizes, and controls functions within an organization. A leader has vision and inspires others to grasp that vision, establishes corporate values, emphasizes corporate ethics, and doesn't fear change.
Describe the various leadership styles.
Autocratic leadership means making managerial decisions without consulting others. This style is effective in emergencies and when absolute followership is needed—for example, when fighting fires. Autocratic leadership is also effective sometimes with new, relatively unskilled workers who need clear direction and guidance. Former Los Angeles Lakers Coach Phil Jackson used an autocratic leadership style to take the team to three consecutive National Basketball Association championships in his first three seasons. By following his leadership, a group of highly skilled individuals became a winning team. Today Jackson is president of the New York Knicks. Do you think he is using the same leadership style as president as he did as coach? What kind of leadership do you see being used most successfully in baseball, football, and other areas?

Participative (democratic) leadership involves managers and employees working together to make decisions. Research has found that employee participation in decisions may not always increase effectiveness, but it usually does increase job satisfaction. Many large organizations like Google, Apple, IBM, Cisco, and AT&T, and most smaller firms have been highly successful using a democratic style of leadership that values traits such as flexibility, good listening skills, and empathy. Employees meet to discuss and resolve management issues by giving everyone some opportunity to contribute to decisions.

In free-rein leadership managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives. Free-rein leadership is often the most successful leadership style in certain organizations, such as those in which managers supervise doctors, professors, engineers, or other professionals. The traits managers need in such organizations include warmth, friendliness, and understanding. More and more firms are adopting this style of leadership with at least some of their employees.

Individual leaders rarely fit neatly into just one of these categories. We can think of leadership as a continuum along which employee participation varies, from purely boss-centered leadership to subordinate-centered leadership.
Which leadership style is best?
The most effective leadership style depends on the people being led and the situation. The challenge of the future will be to empower self-managed teams.
What does empowerment mean?
Empowerment means giving employees the authority and responsibility to respond quickly to customer requests. Enabling is giving workers the education and tools they need to assume their new decision-making powers.
What is knowledge management?
Knowledge management is finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.
What are the five steps of the control function?
Controlling incorporates (1) setting clear standards, (2) monitoring and recording performance, (3) comparing performance with plans and standards, (4) communicating results and deviations to employees, and (5) providing positive feedback for a job well done and taking corrective action if necessary.
What qualities must standards possess to measure performance results?
Standards must be specific, attainable, and measurable.