Chapter 7: Management and Leadership The book says (on page 178): 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. Today, however, managers tend to be more progressive...they tend to guide, train, support, motivate, and coach employees rather than tell them what to do. Do you agree or disagree? 7-2 The book also says: (Managers) may change the definition of work from a task you do for a specified period in a specified place to something you do anywhere, anytime. (p. 178) And: Management will demand a skilled communicator and team player as well as a planner, organizer, motivator, and leader. (p. 179) 7-3 1
The quality and quantity work produced by white collar workers is much more difficult to measure than that of blue collar workers. It is therefore important that the white collar worker buy into the goals of the organization, and feel a duty to pursue these goals when they are not closely watched. This usually requires a quid-pro-quo from the organization. 7-4 1900 1980 The book says (on page 192): Many leaders in the past gave explicit instructions to workers, telling them what to do to meet the goals and objectives of the organization. The term for this process is directing. Many organizations still follow this model, especially fast-food restaurants and small retail establishments where the employees don t have the skill and experience needed to work on their own. 7-6 2
And continues (on page 192): Progressive leaders, such as those in some high-tech firms and Internet companies, empower employees to make decisions on their own. 7-7 Google Facebook Patagonia Ben & Jerry s Twitter LinkedIn Southwest Airlines Guidewire Red Hat Gartner MathWorks Cameron Genentech Hyatt Intuit CostCo Riverbed Technology 7-8 Management -- The process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources. 7-9 3
Resources Employees Budget Support Services Available within the Company Management Planning Organizing Leading Controlling Achievement of Goals & Objectives 7-10 Manufacturing (Production) Engineering (Research and Development, or R&D ) Sales Marketing Accounting and Finance Human Resources Planning Organizing Leading Controlling 4
? Vision A clear, plausible mental image of a boldly positive future for the company or organizational unit. 7-14 Mission Statement An outline of the fundamental purposes of an organization, it often includes: - A summary of the company s commitments to three or more of its stakeholder groups - Mention of one or more ways the company plans to provide value to its customers or consumers - Mention of the company s commitment to product quality and/or safety - A description of some of the company s social responsibilities 7-15 5
Goals -- The broad, long-term accomplishments an organization wishes to attain. Objectives -- Specific, shortterm statements detailing how to achieve the organization s goals. SPECIFIC, MEASURABLE, and TIME- BOUND. 7-18 6
Poorly-written objective: Maximize 2016 profits. Well-written objective: Achieve a net after tax income, including extraordinary items, of $400 million in 2016. 7-19 7-20 Allocating resources, assigning tasks, and establishing procedures Preparing an organization chart and defining each job s responsibilities 7-21 7
Byron Lilly, Senior V.P., Engineering Sally Estep, V.P., Hardware Engineering Robert DeLong, V.P., Software Engineering 7-22 Byron Lilly, Senior V.P., Engineering Sally Estep, V.P., Hardware Engineering Robert DeLong, V.P., Software Engineering Jeff Holden, Director, CPU group John Meyer, Director, I/O controllers group Amy Furgach, Director, Operating Systems Mark Mraz, Director, Applications 7-23 8
Chief Executive Officer (CEO) - Introduces change into an organization. Chief Operating Officer (COO) - Implements CEO s changes. Chief Financial Officer (CFO) - Obtains funds, plans budgets, collects funds, etc. Chief Information Officer (CIO) - Gets the right information to the right people so decisions can be made. 7-25 Recruiting, selecting, and hiring employees Placing employees where they will be most effective within an organization 7-26 Technical Skills -- The ability to perform tasks in a specific discipline or department. Human Relations Skills -- Skills that involve communication and motivation; they enable managers to work through and with people. Conceptual Skills -- Skills that involve the ability to picture the organization as a whole and the relationship among its various parts. 7-27 9
7-28 You're in a car with a helium balloon on a string that is tied to the floor. The windows are closed. When you step on the gas pedal, what happens to the balloon does it move forward, move backward, or stay put? Using only a four-minute hourglass and a seven-minute hourglass, measure exactly* nine minutes without the process taking longer than nine minutes. * plus or minus one second. 10
Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization s goals and objectives. 11
Communicate a vision and rally others around that vision Establish corporate values and promote corporate ethics Embrace change Stress accountability and responsibility 7-34 7-35 1. A group of employees and their manager would meet offsite. The manager would charge the group with solving a problem or set of problems shared by the group. 2. The manager leaves, and the group spends 2-3 days working on solutions to the problems. 3. The group and manager are reunited, the group presents its proposed solutions, and the manager must respond in real-time. 7-36 12
Every division had to rank all its managers and supervisors each year from top to bottom. The top 20% were A s, the middle 70% were B s, and the bottom 10% were C s. A s received salary increases, stock options, and promotions. B s were coached to become A s. C s were fired. After 5 years, his division Vice Presidents begged him to shrink the percentage fired each year to 5%. He said no. 7-37 Autocratic Leadership -- Making managerial decisions without consulting others. Participative or Democratic Leadership -- Managers and employees work together to make decisions. Free-Rein Leadership -- Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives. 7-38 13
Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests. (p. 17) Giving employees the authority to make a decision without consulting the manager, and the responsibility to respond quickly to customer requests. (p. 192) Enabling -- Giving workers the education and tools they need to make decisions. 7-40 establishing clear standards against which performance will be measured, measuring performance against those standards, then rewarding people and/or taking corrective action, as appropriate. 14