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1 -1 Management The complete story By Norris Dorsey Mc. Graw-Hill © 2003 The 1 -1 Management The complete story By Norris Dorsey Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 -2 Managing In The New Era Managerial practices will always separate effective from 1 -2 Managing In The New Era Managerial practices will always separate effective from ineffective organizations l Four key elements are new elements in business today l Globalization Internet New Era Management Knowledge Management Mc. Graw-Hill Collaboration Across “Boundaries” © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managing In The New Era (cont. ) l 1 -3 The Internet communication technologies Managing In The New Era (cont. ) l 1 -3 The Internet communication technologies are driving massive change l initial enthusiasm for e-business has dwindled l l 25% of publicly-held Web companies became profitable in 2002 most profitable Web companies sell information-based products that don’t require shipping l old economy types now using the Internet as a tool to solidify their future l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managing In The New Era (cont. ) l 1 -4 Globalization far more than Managing In The New Era (cont. ) l 1 -4 Globalization far more than in the past, enterprises are global l competing globally is not easy l l l companies often overestimate the attractiveness of foreign markets even small firms that do not operate on a global scale must make strategic decisions based on international considerations l Mc. Graw-Hill face intense competition from high-quality foreign producers © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managing In The New Era (cont. ) l Knowledge management l practices aimed at Managing In The New Era (cont. ) l Knowledge management l practices aimed at discovering and harnessing an organization’s intellectual resources l l l 1 -5 unlock people’s expertise, skills, wisdom, and relationships intellectual capital is the collective brainpower of the organization Collaboration across “boundaries” l capitalize on the ideas of people outside the traditional company “boundaries” l occurs between as well as within organizations l Mc. Graw-Hill e. g. , must effectively capitalize on customers’ brains © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managing For Competitive Advantage l 1 -6 Best managers and companies deliver all four Managing For Competitive Advantage l 1 -6 Best managers and companies deliver all four Cost Competitiveness Innovation Competitive Advantage Quality Mc. Graw-Hill Speed © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managing For Competitive Advantage (cont. ) l Innovation l the introduction of new goods Managing For Competitive Advantage (cont. ) l Innovation l the introduction of new goods and services l l 1 -7 comes from people must be a strategic goal must be managed properly Quality excellence of a product, including its attractiveness, lack of defects, reliability, and long-term durability l importance of quality has increased dramatically l catering to customers’ other needs creates more perceived quality l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managing For Competitive Advantage (cont. ) l 1 -8 Speed fast and timely execution, Managing For Competitive Advantage (cont. ) l 1 -8 Speed fast and timely execution, response, and delivery of results l often separates winners from losers in world competition l requirement has increased exponentially l l Cost competitiveness costs are kept low enough so that you can realize profits and price your products at levels that are attractive to consumers l key is efficiency - accomplishing goals by using resources wisely and minimizing waste l little things can save big money l l Mc. Graw-Hill cost cuts involve tradeoffs © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Functions Of Management l 1 -9 Management the process of working with people The Functions Of Management l 1 -9 Management the process of working with people and resources to accomplish organizational goals l good managers must be: l l effective - achieve organizational goals efficient - achieve goals with minimum waste of resources there are timeless principles of management l l Mc. Graw-Hill still important for making managers and companies great must add fresh thinking and new approaches © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Functions Of Management (cont. ) l 1 - 10 The manager who does The Functions Of Management (cont. ) l 1 - 10 The manager who does not devote adequate attention and resources to all four functions will fail Leading Organizing Controlling Planning Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Functions Of Management (cont. ) l 1 - 11 Planning specifying the goals The Functions Of Management (cont. ) l 1 - 11 Planning specifying the goals to be achieved and deciding in advance the appropriate actions taken to achieve those goals l delivering strategic value - planning function for the new era l l l Mc. Graw-Hill a dynamic process in which the organization uses the brains of its members and of stakeholders to identify opportunities to maintain and increase competitive advantage process intended to create more value for the customer © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Functions Of Management (cont. ) l 1 - 12 Organizing assembling and coordinating The Functions Of Management (cont. ) l 1 - 12 Organizing assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals l building a dynamic organization - organizing function for the new era l l l Mc. Graw-Hill viewing people as the most valuable resource the future requires building flexible organizations © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Functions Of Management (cont. ) l 1 - 13 Leading stimulating people to The Functions Of Management (cont. ) l 1 - 13 Leading stimulating people to be high performers l in the new era, managers must be good at mobilizing people to contribute their ideas l l Controlling monitoring progress and implementing necessary changes l makes sure that goals are met l new technology makes it possible to achieve more effective controls l for the future, will have to be able to monitor continuous learning and changing l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 14 Management Levels l Top-level managers (strategic managers) senior executives responsible for 1 - 14 Management Levels l Top-level managers (strategic managers) senior executives responsible for the overall management and effectiveness of the organization l focus on long-term issues l emphasize the survival, growth, and effectiveness of the firm l concerned with the interaction between the organization and its external environment l titles include Chief Executive Officer (CEO), Chief Operating Officer (COO), company presidents and vice presidents l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Management Levels (cont. ) l 1 - 15 Middle-level managers (tactical managers) located between Management Levels (cont. ) l 1 - 15 Middle-level managers (tactical managers) located between top-level and frontline managers in the organizational hierarchy l responsible for translating strategic goals and plans into more specific objectives and activities l traditional role was that of an administrative controller who bridged the gap between higher and lower levels l provide operating skills and practical problem solving the keep the company working l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Management Levels (cont. ) l 1 - 16 Frontline managers (operational managers) lower-level managers Management Levels (cont. ) l 1 - 16 Frontline managers (operational managers) lower-level managers who supervise the operational activities of the organization l directly involved with nonmanagement employees l increasingly being called on to be innovative and entrepreneurial l titles include supervisor or sales manager l l Working leaders with broad responsibilities l in small firms and large firms that have adapted to the times, managers have strategic, tactical, and operational responsibilities Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 17 Management Skills Skill - specific ability that results from knowledge, information, 1 - 17 Management Skills Skill - specific ability that results from knowledge, information, and aptitude l Technical skill l ability to perform a specialized task that involves a certain method or process l managers at higher levels rely less on technical skills l l Conceptual and decision skills ability to identify and resolve problems for the benefit of the organization l assume greater importance as manager acquires more responsibility l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Management Skills (cont. ) l 1 - 18 Interpersonal and communication skills l ability Management Skills (cont. ) l 1 - 18 Interpersonal and communication skills l ability to lead, motivate, and communicate effectively with others l l people skills important throughout your career at every level of management Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 19 You And Your Career l Jobs are no longer as secure 1 - 19 You And Your Career l Jobs are no longer as secure for managers as they used to be organizations still try to develop and retain good employees l employee loyalty and commitment are still important l l Companies offering “employability” to workers tend to be more successful provide training and other learning experiences l employees perform work with greater responsibility l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

You And Your Career (cont. ) l Be both a specialist and generalist l You And Your Career (cont. ) l Be both a specialist and generalist l specialist - expert in something l l l 1 - 20 provide concrete, identifiable value to the firm generalist - knowing about a variety of business functions so that you can understand work with different perspectives Be self-reliant take responsibility for yourself, your actions, and your career regardless of where you work l think and act like an entrepreneur l l l Mc. Graw-Hill look for opportunities to contribute in new ways generate constructive change © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

You And Your Career (cont. ) l 1 - 21 Be connected establish many You And Your Career (cont. ) l 1 - 21 Be connected establish many good working relationships l be a team player with strong interpersonal skills l all business is a function of human relationships l l Mc. Graw-Hill competitive advantage depends upon you and other people © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Keys to Career Management 1. 2. 3. 4. 5. 6. 7. 8. 1 - Keys to Career Management 1. 2. 3. 4. 5. 6. 7. 8. 1 - 22 Think of yourself as a business. Define your product: What is your area of expertise? Know your target market: To whom are you going to sell this? Be clear on why your customer buys from you. What is your “value proposition” - what are you offering that causes him to use you? As in any business, strive for quality and customer satisfaction, even if your customer is just someone else in your organization - like your boss. Know your profession or field and what’s going on there. Invest in your own growth and development, the way a company invests in research and development. What new products will you be able to provide? Be willing to consider changing your career. Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

You And Your Career (cont. ) l 1 - 23 Actively manage your relationship You And Your Career (cont. ) l 1 - 23 Actively manage your relationship with your organization l two ways to think about the nature of the relationships between you and your employer l view yourself as an employee l l l two-way, mutually-beneficial exchange relationship l l Mc. Graw-Hill model for just getting by contributions likely to be minimal think about how you can contribute and act accordingly l figure out new ways to add value organization likely provide full and fair rewards, support further personal development, and offer more gratifying work environment © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managerial Action Is Your Opportunity To Contribute 1 - 24 Your Organization Mc. Graw-Hill Managerial Action Is Your Opportunity To Contribute 1 - 24 Your Organization Mc. Graw-Hill Managerial Actions 1. Delivering Strategic Value 2. Building a Dynamic Organization 3. Mobilizing People 4. Learning and Changing © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 25 Environmental Analysis Environmental Scanning Scenario Development Benchmarking Forecasting Mc. Graw-Hill © 1 - 25 Environmental Analysis Environmental Scanning Scenario Development Benchmarking Forecasting Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Characteristics Of Managerial Decisions Risk Mc. Graw-Hill Uncertainty Lack of Structure 1 - 26 Characteristics Of Managerial Decisions Risk Mc. Graw-Hill Uncertainty Lack of Structure 1 - 26 Conflict © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Characteristics Of Managerial Decisions (cont. ) l 1 - 27 Lack of structure the Characteristics Of Managerial Decisions (cont. ) l 1 - 27 Lack of structure the usual state of affairs in managerial decision making l programmed decisions - decisions that have been encountered and made in the past l l have objectively correct answers are solvable by using simple rules, policies, or numerical computations nonprogrammed decisions - new, novel, complex decisions having no proven answers l Mc. Graw-Hill decision maker must create or impose a method for making the decision © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Characteristics Of Managerial Decisions (cont. ) l 1 - 28 Uncertainty and risk certainty Characteristics Of Managerial Decisions (cont. ) l 1 - 28 Uncertainty and risk certainty - have sufficient information to predict precisely the consequences of one’s actions l uncertainty - have insufficient information to know the consequences of different actions l l l cannot estimate the likelihood of various consequences of their actions risk - available information permits estimation of the likelihood of various consequences l l Mc. Graw-Hill probability of an action being successful is less than 100 percent, and losses may occur good managers prefer to manage risk © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Characteristics Of Managerial Decisions (cont. ) l 1 - 29 Conflict opposing pressures from Characteristics Of Managerial Decisions (cont. ) l 1 - 29 Conflict opposing pressures from different sources l occurs at two levels l l psychological conflict - individual decision makers: l l perceive several attractive options perceive no attractive options conflict between individuals or groups few decisions are without conflict Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

An Overview Of Planning Fundamentals l 1 - 30 Planning the conscious, systematic process An Overview Of Planning Fundamentals l 1 - 30 Planning the conscious, systematic process of making decisions about goals and activities to be pursued in the future l importance of formal planning has grown dramatically l l Basic planning process l Step one: situational analysis l l l Mc. Graw-Hill a process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration study past and current conditions, and forecast future trends focuses on internal forces and influences from the external environment © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

An Overview Of Planning Fundamentals (cont. ) l 1 - 31 Basic planning process An Overview Of Planning Fundamentals (cont. ) l 1 - 31 Basic planning process (cont. ) l Step two: alternative goals and plans l l generate alternative future goals and plans to achieve them goals - targets or ends the manager wants to reach l l l plans - the actions or means intended to achieve goals l l Mc. Graw-Hill should be specific, challenging, and realistic should be acceptable to those charged with achieving them identify alternative actions, needed resources, and potential obstacles single use plans - designed to achieve goals that are unlikely to be repeated in the future standing plans - designed to achieve an enduring set of goals contingency plans - actions to be taken when initial plans fail or if events in the external environment require a sudden change © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

An Overview Of Planning Fundamentals (cont. ) l 1 - 32 Basic planning process An Overview Of Planning Fundamentals (cont. ) l 1 - 32 Basic planning process (cont. ) l Step three: goal and plan evaluation l l evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan prioritize those goals consider the implications of alternative plans Step four: goal and plan selection l l l identify the priorities and trade-offs among goals and plans leads to a written set of goals and plans that are appropriate and feasible within a predicted set of circumstances scenario - narrative that describes a set of future conditions l Mc. Graw-Hill a contingency plan is attached to each scenario © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

An Overview Of Planning Fundamentals (cont. ) l 1 - 33 Basic planning process An Overview Of Planning Fundamentals (cont. ) l 1 - 33 Basic planning process (cont. ) l Step five: implementation l l l plans are useless unless they are implemented properly managers must understand the plan, have the necessary resources, and be motivated to implement it implementation likely to be more successful if managers and employees have participated in the previous planning steps the plan should be linked to other systems in the organization Step six: monitor and control l l Mc. Graw-Hill must continually monitor the actual performance in relation to the goals and plans develop control systems to take corrective action © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Decision-Making Stages And Formal Planning Steps Alternative goals and plans Evaluating alternatives Goal and Decision-Making Stages And Formal Planning Steps Alternative goals and plans Evaluating alternatives Goal and plan evaluation Making the choice Goal and plan selection Implementing Implementation Evaluation General decisionmaking stages Generating alternative solutions Mc. Graw-Hill Situational analysis Monitor and control Specific formal planning steps Identifying and diagnosing the problem 1 - 34 © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

An Overview Of The HR Planning Process Planning 1 - 35 Programming Evaluation Human An Overview Of The HR Planning Process Planning 1 - 35 Programming Evaluation Human resources activities Results Organizational strategic planning HRM environmental scanning • Labor markets • Technology • Legislation • Competition • Economy Mc. Graw-Hill Human resources planning • Demand forecast • Internal labor supply • External labor supply • Job analysis • Employee recruitment • Employee selection • Outplacement • Training and development • Performance appraisal • Reward systems • Labor relations • Productivity • Quality • Innovation • Satisfaction • Turnover • Absenteeism • Health © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 36 The Global Environment l Global environment becoming more integrated than ever 1 - 36 The Global Environment l Global environment becoming more integrated than ever before l World Trade Organization (WTO) l l l rules apply to over 90 percent of international trade has 144 member nations, including China moved from reducing tariffs to eliminating nontariff barriers International Monetary Fund (IMF) l l Mc. Graw-Hill established by the United Nations has 184 member countries © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Global Environment (cont. ) l 1 - 37 European unification l European Union The Global Environment (cont. ) l 1 - 37 European unification l European Union (EU) l l l allows goods, services, capital, and human resources to flow freely across national borders goal is to strengthen Europe as an economic superpower Maastrict Treaty l l impact of EU is hard to predict l Mc. Graw-Hill agreement to adopt a common European currency l Euro “Fortress Europe” may restrict trade with countries outside of the EU © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Global Environment (cont. ) l 1 - 38 Pacific Rim l important economic The Global Environment (cont. ) l 1 - 38 Pacific Rim l important economic players include Japan and China l l four tigers - Korea, Taiwan, Singapore, and Hong Kong Asia-Pacific Economic Cooperation (APEC) l trying to: l l holds promise in facilitating and strengthening international business relationships l Mc. Graw-Hill reduce trade barriers establish general rules for investment develop policies that encourage foreign investment member countries represent 40 percent of the world’s population and 50 percent of the world’s economic output © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Global Environment (cont. ) l 1 - 39 North America l North American The Global Environment (cont. ) l 1 - 39 North America l North American Free Trade Agreement (NAFTA) l l an economic pact that combined the economies of the U. S. , Canada, and Mexico constitutes the world’s largest trading bloc provides access to previously protected markets in each country Mexico will have to bolster its infrastructure and take care of troubling environmental issues l Mc. Graw-Hill Border Environment Cooperation Commission (BECC) - addresses environmental concerns of communities on the border © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Global Environment (cont. ) l 1 - 40 Rest of the world l The Global Environment (cont. ) l 1 - 40 Rest of the world l globalization has left out three huge, high-potential regions l l Middle East Africa Latin America these regions have a major share of the earth’s natural resources Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Conventional Organization Chart 1 - 41 President Finance R&D Marketing Chemical Products Personnel Metal Conventional Organization Chart 1 - 41 President Finance R&D Marketing Chemical Products Personnel Metal Products Personnel Finance Manufacturing Sales Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Vertical Structure (cont. ) l 1 - 42 Delegation assignment of authority and The Vertical Structure (cont. ) l 1 - 42 Delegation assignment of authority and responsibility to a subordinate l can occur between any two individuals in any type of structure with regard to any task l responsibility - assignment of a task that an employee is supposed to carry out l l should delegate enough authority to complete the task accountability - expectation that employees perform a job, take corrective action when necessary, and report upward on the status and quality of their performance l managers remain responsible and accountable for their own actions and those of their subordinates l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Vertical Structure (cont. ) l 1 - 43 Delegation (cont. ) l advantages The Vertical Structure (cont. ) l 1 - 43 Delegation (cont. ) l advantages of delegation l l l Mc. Graw-Hill permits getting work done through others manager saves time manager frees herself/himself to devote energy to other important, higher-level activities provides subordinates with more important jobs provides subordinates with the opportunity to develop new skills and to demonstrate potential from the organization’s perspective, jobs are done more efficiently and cost-effectively © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Steps In Effective Delegation 1 - 44 Define the goal succinctly Select the person Steps In Effective Delegation 1 - 44 Define the goal succinctly Select the person for the task Solicit the subordinate’s view about suggested approaches Give the subordinate the authority, time, and resources (people, money, equipment) to perform the assignment Schedule checkpoints for reviewing progress Follow through by discussing progress at appropriate intervals Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 45 Diversity Today l Diversity broad term used to refer to all 1 - 45 Diversity Today l Diversity broad term used to refer to all kinds of differences l members of different groups share common values, attitudes, and perceptions l l there is still much diversity within each group U. S. businesses must learn to manage a diverse workforce Managing diversity must be aware of characteristics common to a group l must manage employees as individuals l must support, nurture, and utilize these differences to the organization’s advantage l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 46 Components Of A Diversified Workforce Gender Age Racial and ethnic minorities 1 - 46 Components Of A Diversified Workforce Gender Age Racial and ethnic minorities in the United States Immigrants Physically and mentally disabled Mc. Graw-Hill Workforce Diversity Other Religious affiliation Veteran status Sexual orientation Expectations and values Lifestyle Skill level Educational level Economic class Workstyle Function and/or position within the company © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

How Effective Is Your Diversity Program? Ineffective 2% Somewhat ineffective Undecided 13% Very Effective How Effective Is Your Diversity Program? Ineffective 2% Somewhat ineffective Undecided 13% Very Effective 8% 8% 1 - 47 Effective 22% Somewhat effective 49% Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 48 Diversity Today (cont. ) l Size of the workforce U. S. 1 - 48 Diversity Today (cont. ) l Size of the workforce U. S. civilian labor force is expected to reach 158 million by 2010 l slowing in both the number of people joining the labor force and the rate of labor force growth l U. S. traditionally had a surplus of labor l l l number of jobs created expected to exceed the growth of the labor force employers likely to outsource some work Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 49 Diversity Today (cont. ) l Workers of the future l until 1 - 49 Diversity Today (cont. ) l Workers of the future l until recently, white, American born males dominated the U. S. workforce l Mc. Graw-Hill now, they only account for 15 percent of the net growth © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 50 Women In The Workforce Women make up about 47 percent of 1 - 50 Women In The Workforce Women make up about 47 percent of the workforce l 99 percent of women will work for pay at some point in their lives l Overall labor force participation rate of women continues increasing while the participation rate of men declines l The long-term increase in the female labor force largely reflects the greater frequency of paid work by mothers l Today, 40 percent of multiple job holders are women l One of every five married women who works outside the home earns more than her husband l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Minorities And Immigrants l l l l 1 - 51 Nonwhites make up about Minorities And Immigrants l l l l 1 - 51 Nonwhites make up about one-third of the growth rate in the workforce Ethnic Americans now comprise nearly 25 percent of the total population By 2020, most of California’s entry-level workers will be Hispanic English has become the second language for much of the population in California, Texas, and Florida The number of foreign-born U. S. residents is at its highest level in U. S. history (one in ten residents) The younger Americans are, the more likely they are to be persons of color 6. 8 million people in the U. S. identify themselves as multiracial Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Percentage Of Minority Managers 1995 1 - 52 10. 60% Senior 1992 7. 40% Percentage Of Minority Managers 1995 1 - 52 10. 60% Senior 1992 7. 40% 1995 15. 10% Middle 1992 11. 20% 1995 19. 30% Front-line 1992 Mc. Graw-Hill 14. 50% © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Vision l 1 - 53 Vision a mental image of a possible and desirable Vision l 1 - 53 Vision a mental image of a possible and desirable future state of the organization l having a vision and communicating it to others are essential components of great leadership l the best visions are both: l l l Mc. Graw-Hill ideal - communicates a standard of excellence and clear choice of positive values unique - communicates and inspires pride in being different from other organizations © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 54 Vision (cont. ) l Important points about visions a vision is 1 - 54 Vision (cont. ) l Important points about visions a vision is necessary for effective leadership l a person or team can develop a vision for any job l many people, including managers who do not develop into strong leaders, do not develop a clear vision l l Visions can be inappropriate may reflect merely the leader’s personal needs l may ignore stakeholders’ needs l the vision must change when circumstances change l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Leading And Managing l 1 - 55 Ability to lead effectively sets excellent managers Leading And Managing l 1 - 55 Ability to lead effectively sets excellent managers apart from average ones l managers deal with ongoing organizational activities l l planning and budgeting routines, structuring the organization leadership includes orchestrating organizational change l creating a vision for the firm and inspiring people to attain it management and leadership are both vitally important l supervisory leadership - provides guidance, support, and corrective feedback for day-to-day activities of work unit members l strategic leadership - gives purpose and meaning to organizations Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved. l

Leading And Following l 1 - 56 Organizations succeed or fail because of how Leading And Following l 1 - 56 Organizations succeed or fail because of how well followers follow l effective followers: l l l Mc. Graw-Hill are capable of independent thinking are actively committed to organizational goals are enthusiastic about ideas and purposes beyond their own self interest master skills that are useful to the organization hold performance standards that are higher than required © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 57 Power And Leadership l Power l l ability to influence other 1 - 57 Power And Leadership l Power l l ability to influence other people Sources of power l legitimate power - leader has organizational authority l employees are obligated to comply with legitimate orders reward power - leader has control over valued rewards l coercive power - leader has control over punishments l referent power - leader has personal characteristics that appeal to others and make them desirous of the leader’s approval l expert power - leader has knowledge that others feel will be of benefit to them l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 58 Sources Of Power Authority Control over rewards Expertise Power Appealing personal 1 - 58 Sources Of Power Authority Control over rewards Expertise Power Appealing personal characteristics Mc. Graw-Hill Control over punishments © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Traditional Approaches To Understanding Leadership l 1 - 59 Leader traits trait approach - Traditional Approaches To Understanding Leadership l 1 - 59 Leader traits trait approach - focussed on individual leaders to determine the personal characteristics that great leaders share l characteristics that distinguish effective leaders l l l l Mc. Graw-Hill drive - characteristics that reflect a high level of effort leadership motivation - they want to lead integrity - actions correspond to words self-confidence - expectation that one is able to overcome obstacles and make good decisions in the face of uncertainty knowledge of the business - ability to interpret information ability to perceive the needs of others and to adjust one’s behavior accordingly © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Traditional Approaches To Understanding Leadership (cont. ) l 1 - 60 Leader behaviors behavioral Traditional Approaches To Understanding Leadership (cont. ) l 1 - 60 Leader behaviors behavioral approach - sought to identify what behaviors good leaders exhibit l task performance - leader’s efforts to ensure that the work unit reaches its goals l l l focus on work speed, quality and quantity of output, and rules group maintenance - actions taken to ensure satisfaction l l develop and maintain harmonious work relationships leader-member exchange theory - focuses on the leader’s behavior toward individuals l l Mc. Graw-Hill focus is primarily on group maintenance behaviors potential for cross-cultural differences © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Traditional Approaches To Understanding Leadership (cont. ) l 1 - 61 Leader behaviors (cont. Traditional Approaches To Understanding Leadership (cont. ) l 1 - 61 Leader behaviors (cont. ) l participation in decision making - leader behaviors that managers perform in involving their employees in making decisions l l autocratic leadership - makes decisions and then announces them to the group democratic leadership - solicits input from others l Mc. Graw-Hill uses consensus or majority vote to make the final choice © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Traditional Approaches To Understanding Leadership (cont. ) l 1 - 62 Leader behaviors (cont. Traditional Approaches To Understanding Leadership (cont. ) l 1 - 62 Leader behaviors (cont. ) l effects of leader behavior l decision styles l l Mc. Graw-Hill democratic approach resulted in the most positive attitudes autocratic approach resulted in somewhat higher performance laissez-faire - leadership philosophy characterized by an absence of managerial decision making characteristics of the situation, leader, and the follower determine the appropriate decision-making style © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 63 Behaviors That Companies Want Employees To Exhibit Join the organization Exhibit 1 - 63 Behaviors That Companies Want Employees To Exhibit Join the organization Exhibit good citizenship Achieve high output Mc. Graw-Hill Companies must motivate workers to: Remain in the organization Come to work regularly © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 64 Setting Goals l Goal setting theory l l people have conscious 1 - 64 Setting Goals l Goal setting theory l l people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end Goals that motivate goals should be acceptable to employees l goals should be challenging but attainable l goals should be specific, quantifiable, and measurable l l Limitations of goal setting individualized goals create competition and reduce cooperation l single productivity goals interfere with other dimensions of performance l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The Consequences Of Behavior Positive reinforcement or negative reinforcement Same behavior likely to be The Consequences Of Behavior Positive reinforcement or negative reinforcement Same behavior likely to be repeated Punishment or extinction 1 - 65 Same behavior less likely to be repeated Behavior Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Understanding People’s Needs l 1 - 66 Content theories indicate the kinds of needs Understanding People’s Needs l 1 - 66 Content theories indicate the kinds of needs that people want to satisfy l the extent to which and the ways in which a person’s needs are met or not met affect her/his behavior on the job l l Maslow’s need hierarchy l human needs are organized into five major types l l Mc. Graw-Hill l physiological - food, water, sex, and shelter safety or security - protection against threat and deprivation social - friendship, affection, belonging, and love ego - independence, achievement, freedom, recognition, and selfesteem self-actualization - realizing one’s potential © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Understanding People’s Needs (cont. ) l 1 - 67 Maslow’s need hierarchy (cont. ) Understanding People’s Needs (cont. ) l 1 - 67 Maslow’s need hierarchy (cont. ) l postulates that people satisfy these needs one at a time, from bottom to top l l people motivated to satisfy lower needs before they try to satisfy higher needs once satisfied, a need is no longer a powerful motivator not altogether accurate theory of human motivation l nonetheless, made three major contributions l l Mc. Graw-Hill identified important need categories helped to think in terms of lower- and higher-level needs increased salience of personal growth and self-actualization © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Understanding People’s Needs (cont. ) l 1 - 68 Alderfer’s ERG theory l postulates Understanding People’s Needs (cont. ) l 1 - 68 Alderfer’s ERG theory l postulates that people have three basic need sets l l Existence needs - material and physiological desires Relatedness needs - involve relationships with other people l l satisfied by the process of mutually sharing thoughts and feelings Growth needs - motivate people to productivity or creativity l satisfied by fully utilizing personal capacities and developing new capacities postulates that several different needs can be operating at once l has greater scientific support than Maslow’s hierarchy l l Mc. Graw-Hill both theories remind managers of the types of reinforcers or rewards that can be used to motivate people © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Comparison Of Maslow’s Need Hierarchy And ERG Theory S actu elfaliza tion 1 - Comparison Of Maslow’s Need Hierarchy And ERG Theory S actu elfaliza tion 1 - 69 th Grow Ego Soci al ss tedne ela R Safe ty Phy Mas siolo low Mc. Graw-Hill gica l nce e Exist fer r Alde © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 70 The Contributions Of Teams Building block for organization structure Force for 1 - 70 The Contributions Of Teams Building block for organization structure Force for innovation Effects on organizations Force for change Force for speed Mc. Graw-Hill Force for productivity Force for quality Force for cost reduction © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 71 Benefits Of Groups l Benefits derived by organizations groups have greater 1 - 71 Benefits Of Groups l Benefits derived by organizations groups have greater total resources than individuals do l groups have a greater diversity of resources l groups can aid decision making l l Benefits derived by members a group is a useful learning mechanism l a group can satisfy important personal needs l group members can provide one another with feedback l l l Mc. Graw-Hill identify opportunities for growth and development train, coach, and mentor © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The New Team Environment l 1 - 72 Definitions l working group - collection The New Team Environment l 1 - 72 Definitions l working group - collection of people who work in the same area or have been drawn together to undertake a task l l do not necessarily come together as a unit and achieve significant performance improvements team - small number of people with complementary skills who are committed to a common purpose, common performance goals, and a common approach for which they hold themselves mutually accountable l l Mc. Graw-Hill real teams are more fully integrated into the organizational structure authority of teams is increasing © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

The New Team Environment Traditional environment • Managers determine and plan the work • The New Team Environment Traditional environment • Managers determine and plan the work • Jobs are narrowly defined • Cross-training is viewed as inefficient • Most information is “management property” • Training for nonmanagers focuses on technical skills • Risk taking is discouraged and punished • People work alone • Rewards based on individual performance • Managers determine “best methods” Mc. Graw-Hill 1 - 73 Team environment • Managers and teams jointly determine and plan the work • Jobs require broad skills and knowledge • Cross-training is the norm • Most information is freely shared • Continuous learning requires training for all • Encourage and support measured risk taking • People work together • Rewards based on contributions to the team and individual performance • Everyone works to improve methods and processes © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Improving Communication Skills l 1 - 74 Improving sender skills l presentation and persuasion Improving Communication Skills l 1 - 74 Improving sender skills l presentation and persuasion skills l l l writing skills - require clear, logical thinking l l redundancy - state your viewpoint in a variety of ways powerful messages are simple and informative strive for clarity, organization, readability, and brevity first draft rarely is as good as it could be be critical of your own writing language - word choice can enhance or interfere with communications l Mc. Graw-Hill l consider the receiver’s background adjust your language learn something about foreign language for overseas business © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Improving Communication Skills (cont. ) l 1 - 75 Nonverbal skills signals other than Improving Communication Skills (cont. ) l 1 - 75 Nonverbal skills signals other than those that are spoken or written l can support or undermine the stated message l nonverbal cues may make a greater impact than other signals l can send a positive message with nonverbal signals by: l l using time appropriately arranging the office to foster open communication remembering your body language l l facial expression and tone of voice Nonverbal signals in different countries l need to correctly interpret the nonverbal signals of others Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Improving Communication Skills (cont. ) l 1 - 76 Improving receiver skills l listening Improving Communication Skills (cont. ) l 1 - 76 Improving receiver skills l listening - good listening is difficult and not nearly as common as needed l l l reflection - process by which a person states what s/he believes the other person is saying listening begins with personal contact good listening leads to development of trust listening more important for innovation than for routine work reading - reading mistakes are common and costly l l l Mc. Graw-Hill read memos promptly and carefully note important points for later referral read materials outside of your immediate concerns © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Ten Keys To Effective Listening 1. 2. 3. 4. 5. 6. 7. 8. 9. Ten Keys To Effective Listening 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Mc. Graw-Hill 1 - 77 Find an area of interest Judge content, not delivery Hold your fire Listen for ideas Be flexible Resist distraction Exercise your mind Keep your mind open Capitalize on thought speed Work at listening © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 78 Managing Change l Organizational change is managed effectively when: the organization 1 - 78 Managing Change l Organizational change is managed effectively when: the organization is moved from its current state to a planned future state l the change works as planned l the transition is accomplished without excessive costs to the organization or to individual organizational members l l People are the key to successful change people must take an interest and active role in helping the organization as a whole l permanent rekindling of individual creativity and responsibility should be a consequence of change l Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managing Change (cont. ) l 1 - 79 Motivating people to change l people Managing Change (cont. ) l 1 - 79 Motivating people to change l people must be motivated to change l l people often resist change general reasons for resistance - arise regardless of the content of the change l l Mc. Graw-Hill inertia - people don’t want to disturb the status quo timing - managers should introduce change when people are receptive surprise - resistance is likely when change is sudden, unexpected, or extreme peer pressure - work teams may band together in opposition to change © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 80 Managing Change (cont. ) l Motivating people to change (cont. ) 1 - 80 Managing Change (cont. ) l Motivating people to change (cont. ) l change-specific reasons for resistance - arise from the specific nature of a proposed change l l l self-interest - fear that something of value will be lost misunderstanding - people may resist because they don’t fully understand the purpose of the change different assessments - employees receive different - and usually less - information than management receives l l management tactics - many fail to commit employees to change l l Mc. Graw-Hill such discrepancies in knowledge cause people to develop different assessments of proposed changes force the change on employees do not provide the necessary resources, knowledge, or leadership © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Reasons For Resistance To Change 1 - 81 General Reasons For Resistance Inertia Timing Reasons For Resistance To Change 1 - 81 General Reasons For Resistance Inertia Timing Surprise Peer pressure Resistance to Change Self-Interest Misunderstanding Different assessments Management tactics Change-specific Reasons for Resistance Mc. Graw-Hill © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

1 - 82 Implementing Change Unfreezing (breaking from the old ways of doing things) 1 - 82 Implementing Change Unfreezing (breaking from the old ways of doing things) Mc. Graw-Hill Moving (instituting the changes) Refreezing (reinforcing and supporting the new ways) © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Characteristics Of Controls System control Bureaucratic control Market control Clan control Mc. Graw-Hill 1 Characteristics Of Controls System control Bureaucratic control Market control Clan control Mc. Graw-Hill 1 - 83 Features and requirements Uses formal rules, standards, hierarchy, legitimate authority. Works best where tasks are certain and workers are independent. Uses prices, competition, profit centers, exchange relationships. Works best where tangible output can be identified and market can be established between parties. Involves culture, shared values, beliefs, expectations, and trust. Works best where there is “no one best way” to do a job and where employees are empowered to make decisions. © 2003 The Mc. Graw-Hill Companies, Inc. All rights reserved.