LECTURE OUTLINE AND LECTURE NOTES



LECTURE OUTLINE AND LECTURE NOTES

CHAPTER OPENING PROFILE

ASCENTIUM CORPORATION (TEXT PAGES 174-175)

The chapter opening profile focuses on Ascentium Corporation, founded by Jim Beebe and Curt Doolittle. The corporation has successfully used effective management principles to grow to over 300 employees in just six years. The management uses goal setting, strategic planning, and open communication to motivate workers. Ascentium is structured as a corporation operating as a partnership. There are very few levels of management allowing empowerment of individual employees.

|Lecture outline lecture notes |

| I. What Is Management | |

|Learning objective 1 |PowerPoint 6-1 |

|Define management. (Text page 176) |Chapter Title |

|A. Management is needed to plan, organize, control, and lead the business. |(Refers to text page 174) |

|1. Leadership is different from management. | |

|a. Management is an appointed position. |PowerPoint 6-2 |

|b. Leadership has a broader scope. |Learning Objectives |

|2. All managers must be leaders; however, all leaders do not necessarily have to be managers. |(Refers to text page 175) |

|3. A good manager must perform all four functions of management well. | |

|B. MANAGEMENT is the process of planning, organizing, leading, and controlling people and other |PowerPoint 6-3 |

|available resources to accomplish organizational goals and objectives. |What Is Management? |

|1. Without management, organizations would be able to accomplish very little. |(Refers to text pages 176-178) |

|2. Managers must make decisions and make sure organizational tasks are accomplished. | |

| |Bonus Case 6-1 |

| |Panera Bread: Bread Lines Are Back at |

| |Panera! (Video Case) |

| |Panera Bread Company has used |

| |strategic planning and participative |

| |leadership to succeed in a very |

| |competitive market. (See complete |

| |case, discussion questions, and |

| |suggested answers on page 6.48 of this|

| |manual.) |

| | |

| II. Functions of Management |Bonus Case 6-2 |

|Learning objective 2 |One Smooth Stone (Video Case) |

|EXPLAIN THE FOUR FUNCTIONS OF MANAGEMENT. (TEXT PAGES 176-178) |One Smooth Stone is a company that |

|A. The four main functions of management are planning, organizing, leading, and controlling. |provides materials for big corporate |

|1. PLANNING is anticipating trends and determining the best strategies and tactics to achieve |meetings. It uses project teams to |

|organizational goals and objectives. |come up with original creative |

|a. Today most companies have planning teams monitor the environment. |presentations for customers. (See |

|b. Planning is called the key management function because the other functions depend on having a good|complete case, discussion questions, |

|plan. |and suggested answers on page 6.50 of |

|2. ORGANIZING is designing the structure of the organization and creating conditions and systems in |this manual.) |

|which everyone and everything work together to achieve the organization’s goals and objectives. | |

|a. Many organizations today are designed around the customer. | |

|b. Organizations must remain flexible and adaptable to respond to customers’ changing needs. |critical thinking |

|3. LEADING means creating a vision for the organization and communicating, guiding, training, |exercise 6-1 |

|coaching, and motivating others to work effectively to achieve the organization’s goals and |Management Functions |

|objectives. |This exercise asks students to |

|a. Today, most managers empower employees, giving employees as much freedom as possible to become |organize managerial activities they |

|self-directed and self-motivated. |have performed into the four |

|b. This means giving employees the authority and the responsibility to respond quickly to customers. |management functions. (See complete |

|i. Authority is the right to make a decision without consulting the manager. |exercise on page 6.39 of this manual.)|

|ii. Responsibility is the requirement to accept the consequences of one’s actions. | |

|c. This function was once known as directing; that is, telling employees exactly what to do. | |

|d. Leadership is still needed to keep employees focused on the right tasks at the right time. |critical thinking |

|4. CONTROLLING involves establishing clear standards to determine whether an organization is |exercise 6-2 |

|progressing toward its goals and objectives, rewarding people for doing a good job, and taking |Group Project: Organizing Production |

|corrective action if they are not. |This is a fun exercise to give |

|B. Planning |students first-hand experience in |

|Learning objective 3 |creating an organization—and producing|

|UNDERSTAND THE USE OF THREE TOOLS: SMART, SWOT, AND PEST ANALYSIS. (TEXT PAGES 179-182) |a product. (See complete exercise on |

|1. Planning involves setting the organizational vision, mission, goals, and objectives. |page 6.40 of this manual.) |

|a. A VISION is a forward-looking statement that provides an encompassing explanation of why the | |

|organization exists and where it is headed in the future. | |

|b. A MISSION STATEMENT is an outline of the fundamental purposes of the organization. |TEXT REFERENCE |

|2. Writing a mission statement |Real World Business Apps |

|a. A well-designed mission statement should address: |(Box in text on page 177) |

|i. customer needs; |Alice Nguyen is a sales associate in a|

|ii. company philosophy and goals; |retail store. She is in school |

|iii. the organization’s self-concept; |full-time, but her manager has asked |

|iv. long-term survival; |her if she wants to become a store |

|v. the nature of the company’s products or services; |manager at a smaller store. She is |

|vi. social responsibility; |considering the leadership style she |

|vii. care for employees. |will use. |

|b. An effective mission statement is developed with input from all the members of the organization. | |

|c. The mission statement becomes the foundation for setting specific goals. | |

|i. GOALS are the broad, long-term accomplishments an organization wishes to attain. | |

|ii. OBJECTIVES are specific, short-term statements detailing how to achieve the organizational goals.| |

|d. Using a framework called SMART objectives helps make goals and objectives more effective; goals | |

|should be: | |

|i. Specific | |

|ii. Measurable | |

|iii. Achievable | |

|iv. Realistic | |

|i. Time relevant | |

|3. SWOT and PEST | |

|a. SWOT analysis is an analysis of the organization’s strengths, weaknesses, opportunities, and | |

|threats. | |

|i. Strengths and weaknesses are internal to the firm. | |

|ii. Opportunities and threats are often external to the firm and cannot always be anticipated. | |

|b. The external environment consists of: | |

|i. The micro, or specific, environment is comprised of factors such as a firm’s customers, suppliers,| |

|and competitors. | |

|ii. The macro, or general, environments include factors that affect an organization indirectly. | |

|4. PEST analysis is an analysis of outside factors that could affect a business: Political, Economic,| |

|Social, and Technological. | |

|a. These four external areas affect the organization’s future. | |

|b. Political factors include political, legal, and regulator issues (example: increase in the federal| |

|minimum wage). | |

|c. Economic factors include interest rates, unemployment rates, availability of credit, inflation | |

|rates, and so on (example: higher unemployment rates). | |

|d. Sociocultural factors include factors such as number of births, immigration and emigration rates, | |

|and so forth. | |

|e. Technology changes (such and the impact of the Internet) can affect a business. | |

|5. Forms of planning | |

|a. STRATEGIC PLANNING is setting long-term goals for the company. | |

|i. It is the process of deter-mining the major goals of the organization and the policies and | |

|strategies needed for obtaining and using resources to achieve those goals. | |

|ii. It provides the foundation for the policies, procedures, and strategies to achieve goals. | |

|iii. The text uses the example of the Mountain City Coffeehouse and Creamery. | |

|b. TACTICAL PLANNING is the development of several objectives for each goal. | |

|i. These are the short-term goals that must be achieved to attain long-term goals. | |

|ii. Detailed, short-term statements are needed about what is to be done, who is to do it, and how it | |

|is to be done. |TEXT FIGURE 6.1 |

|c. OPERATIONAL PLANNING is scheduling, budgeting, and any other necessary plans used to meet the |Mission and Vision of ABC Supply Co. |

|tactical objectives. |(Box in text on page 178) |

|i. Operational planning focuses on specific supervisors and individual employees. | |

|ii. The operational plan is the department manager’s tool for daily operations. | |

|d. CONTINGENCY PLANNING is planning for “what if” scenarios and secondary plans in case the original | |

|ones do not work. | |

|i. An organization needs to have alternative plans ready for environmental changes. |TEXT FIGURE 6.2 |

|ii. Crisis planning, a part of contingency planning, involves reacting to sudden changes in the |Other Sample Mission Statements (Box |

|environment. |in text on page 179) |

|C. Organizing | |

|Learning objective 4 | |

|UNDERSTAND THE BASICS OF ORGANIZATIONAL STRUCTURE. (TEXT PAGES 187-190) | |

|1. Organizing includes designing the structure of the organization and allocating resources, |PowerPoint 6-4 |

|assigning tasks, and establishing procedures for achieve the organization’s goals and objectives. |Planning (Refers to text pages |

|2. After planning a course of action, managers must organize the firm to accomplish their goals. |178-180) |

|a. The ORGANIZATION CHART is a visual diagram that shows relationships among people and divided the | |

|organization’s work. | |

|b. An organization chart includes top, middle, and first-line or supervisory managers. | |

|c. It also shows the span of control, the optimal number of subordinates (employees) a manager |critical thinking |

|supervises; also called span of management. |exercise 6-3 |

|3. Levels of management |Test Your Planning Skills |

|a. TOP MANAGEMENT is the highest level of management, and consisting of the president and other key |This exercise asks students to use |

|company executives. |planning concepts to organize a |

|i. Top managers develop strategic plans. |company blood drive. (See complete |

|ii. Titles include Chief Executive Officer (ceo), Chief Operating Officer (coo), Chief Financial |exercise on page 6.42 of this manual.)|

|Officer (cfo), and Chief Knowledge Officer (cko). | |

|iii. The CEO is responsible for all top-level decisions in the firm. | |

|iv. The COO is responsible for putting the plans into effect. | |

|v. The CFO is responsible for obtaining fund, planning, budgets, collecting funds, and so on. | |

|vi. The CIO or CKO is responsible for getting the right information to other managers. |bonus internet |

|b. MIDDLE MANAGEMENT consists of general managers, division managers, and plant managers or |exercise 6-1 |

|supervisors. |Researching Mission Statements |

|i. Middle managers are responsible for tactical planning and controlling. |Adobe Systems has carefully developed |

|c. SUPERVISORY (first-line) MANAGEMENT are those who are directly responsible for supervising workers|its mission and vision statements. |

|and evaluating their daily performance. |This Internet exercise asks students |

|4. Tasks and skills at different levels of management |to explore the company’s long-term |

|a. Managers are usually are not trained to be managers—they are workers with specific skills who are |vision more closely. (See complete |

|promoted. |exercise on page 6.37 of this manual.)|

|b. The higher a person moves up in the organization the more they need to be visionaries, planners, | |

|communicators, and motivators. | |

|c. Managers must have three categories of skills: | |

|i. TECHNICAL SKILLS, the skills required to do a specific job, involving the ability to perform tasks| |

|in a specific discipline (such as selling a product) or department (such as marketing). | |

|ii. HUMAN RELATIONS SKILLS, the ability to communicate and work with others, involving communication | |

|and motivation; they enable managers to work through and with people. | |

|iii. CONCEPTUAL SKILLS, the ability to see the “big” picture, involving the ability to picture the |Lecture link 6-1 |

|organization as a whole and the relationships among its various parts. |Culture of the Real Rocket Scientists |

|d. First-line managers need less conceptual skills and more technical and human relations skills. |For 40 years the Jet Propulsion |

|e. Top managers need few technical skills and greater human relations and conceptual skills. |Laboratory has planned interplanetary |

|5. Organization structure |missions for NASA guided by a few key |

|a. An organizational structure is the way a company is organized and where all employees fit into the|rules. (See complete lecture link on |

|big picture. |page 6.30 of this manual.) |

|i. A line-and-staff structure is one where the staff personnel advise the line personnel in meeting | |

|organizational goals. | |

|ii. Line personnel are part of the chain of command that is responsible for directly achieving | |

|organizational goals. | |

|iii. A matrix organization teams people from various departments to accomplish a common goal. | |

|b. Departmentalization means to “group” related jobs or work processes into separate units. | |

|i. Functional departmentalization: | |

|(a) is the most widely used grouping for small-to-medium-size organizations | |

|(b) groups workers into departments based on similar tasks or resources used | |

|ii. Product departmentalization groups individuals and tasks around the firm’s major product lines. |TEXT FIGURE 6.3 |

|iii. Customer departmentalization groups activities around the customers. |Guidelines for Setting SMART |

|iv. Organizations can group tasks and processes by different geographic regions. |Objectives (Box in text on page 180) |

|v. A few firms separate activities by process. | |

|vi. Many firms use a hybrid structure, a combination of these. | |

|6. Staffing is recruiting, hiring, motivating, and retaining the best people available to accomplish | |

|the company’s objectives. | |

|a. Managing diversity means building systems and cultures that unite different people in a common | |

|pursuit. | |

|b. Diversity includes differences in race, gender, ethnicity, sexual orientation, abilities, and | |

|religious affiliation. |PowerPoint 6-5 |

|D. Leading |Planning (Refers to text pages |

|1. Good leadership includes: |180-184) |

|a. communicating a vision and rallying others around that vision; | |

|b. establishing company values; | |

|c. promoting corporate ethics; | |

|d. embracing change. | |

|E. Controlling |TEXT FIGURE 6.4 |

|1. The control process provides the feedback that helps managers adjust to changes. |SWOT Matrix (Box in text on page 181) |

|2. Controlling involves five steps: | |

|a. establishing clear performance standards; | |

|b. monitoring and recording actual performance; |critical thinking |

|c. comparing results against plans and standards; |exercise 6-4 |

|d. communicating results and deviations to the employees involved; |Career SWOT Analysis |

|e. taking corrective action when needed and providing positive feedback for work well done. |SWOT analysis, the key tool in the |

|F. What Else Do Managers Do? |strategic planning process, can also |

|1. The kinds of things managers do varies with the type of industry. |be applied to career planning. (See |

|2. Setting the tone of ethics: |complete exercise on page 6.43 of this|

|a. Employees tend to look up to managers for guidance and example. |manual.) |

|b. If a manager skirts rules, employees feel free to do so, also. | |

|3. Creating an environment for a good work-life balance: | |

|a. Work-life balance is the idea that an individual should have control over interactions between | |

|work and home. | |

|b. A positive work-life balance means a person feels satisfied about their personal life while also | |

|feeling satisfied by their work life. | |

|c. Managers can create work-life imbalance when they expect more than their employees can accomplish | |

|during work hours. | |

|d. Deadlines sometimes take precedence over work-life balance, but that shouldn’t happen frequently. | |

|4. Ensuring good-quality products: | |

|a. Total quality management (TQM) is a management strategy where quality is reviewed at every phase | |

|of the production process, even in service organizations. | |

|b. The manager must inspire employees to be concerned about providing excellent quality. | |

|c. TQM involves satisfying customer needs and continuous improvement through the organization. | |

|SELF Check Questions (Text page 194) | |

|What are the four functions of management? Which do you think is the most important? Why? | |

|Perform an analysis and a PEST analysis on your school bookstore. | |

|Why do you think TQM is so important in today’s businesses? | |

|Provide possible goals, objectives, and tactical plans for a company of your choice. | |

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| |TEXT FIGURE 6.5 |

| |Planning Functions (Box in text on |

| |page 182) |

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| |critical thinking |

| |exercise 6-5 |

| |Evaluating Alternative Courses |

| |Because of shrinking market share and |

| |declining profits, Monmouth Thermics, |

| |a subsidiary of a large conglomerate, |

| |needs a recovery plan. (See complete |

| |exercise on page 6.44 of this manual.)|

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| |TEXT REFERENCE |

| |Career Development: |

| |Basics of Career Planning Objectives |

| |(Box in text on page 183) |

| |An additional exercise and discussion |

| |is available on page 6.27 of this |

| |manual. |

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| |PowerPoint 6-6 |

| |Organizing (Refers to text pages |

| |184-185) |

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| |Bonus Case 6-3 |

| |Structural Collapse: |

| |Responsibility and Accountability |

| |Because of engineering errors and poor|

| |planning, the skywalks of a newly |

| |constructed hotel collapsed, killing |

| |over 100 people. What caused the |

| |disaster? (See complete case, |

| |discussion questions, and suggested |

| |answers on page 6.52 of this manual.) |

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| |TEXT FIGURE 6.6 |

| |Levels of Management (Box in text on |

| |page 185) |

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| |PowerPoint 6-7 |

| |Organizing (Refers to text pages |

| |185-190) |

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| |lecture link 6-2 |

| |Why Good Employees Can Be Bad Managers|

| |Good technical employees can make good|

| |managers, of course, but many do not. |

| |(See complete lecture link on page |

| |6.31 of this manual.) |

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| |TEXT FIGURE 6.7 |

| |Skills Needed at Various Levels of |

| |Management (Box in text on page 186) |

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| |lecture link 6-3 |

| |Learning Management Skills |

| |Another way of classifying specific |

| |management skills is presented here. |

| |(See complete lecture link on page |

| |6.31 of this manual.) |

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| |critical thinking |

| |exercise 6-6 |

| |Rate Your Management Skills |

| |This exercise expands the |

| |classification of management skills |

| |(based on ll 6-3 above) and asks |

| |students to rate themselves. (See |

| |complete exercise on page 6.45 of this|

| |manual.) |

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| |TEXT FIGURE 6.8a |

| |Line-and-Staff vs. Matrix Organization|

| |(Box in text on page 187) |

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| |TEXT FIGURE 6.8b |

| |Line-and-Staff vs. Matrix Organization|

| |(Box in text on page 188) |

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| |TEXT FIGURE 6.9 |

| |Ways to Departmentalize (Box in text |

| |on page 189) |

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| |lecture link 6-4 |

| |Making Teams Work in a Changing Market|

| |Two partners decided to abandon the |

| |traditional departmentalized structure|

| |and group their employees into account|

| |teams. (See complete lecture link on |

| |page 6.32 of this manual.) |

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| |TEXT FIGURE 6.10 |

| |Geographic Departmentalization with |

| |Matrix Style Organization (Box in text|

| |on page 190) |

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| |bonus internet |

| |exercise 6-2 |

| |Self-Assessment for Leading as a |

| |Manager |

| |An online self-assessment tool helps |

| |identify leadership strengths and |

| |weaknesses. (See complete exercise on |

| |page 6.38 of this manual.) |

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| |PowerPoint 6-8 |

| |Leading (Refers to text pages 190-191)|

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| |lecture link 6-5 |

| |Using Control Principles at Pixar |

| |Control principles can be used in any |

| |organization, any industry. Pixar |

| |Animation uses control principles to |

| |improve the company’s animated films. |

| |(See complete lecture link on page |

| |6.33 of this manual.) |

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| |PowerPoint 6-9 |

| |Controlling (Refers to text pages |

| |191-192) |

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| |TEXT FIGURE 6.11 |

| |The Control Process (Box in text on |

| |page 192) |

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| |PowerPoint 6-10 |

| |What Else Do Managers Do? (Refers to |

| |text pages 192-194) |

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| |TEXT REFERENCE |

| |Study Skills: Return on My Investment |

| |(Box in text on page 193) |

| |An additional exercise and discussion |

| |is available on page 6.29 of this |

| |manual. |

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| III. Management Styles | |

|Learning objective 5 | |

|DESCRIBE VARIOUS MANAGEMENT STYLES AND KNOW WHEN THEY ARE APPROPRIATE. (TEXT PAGES 194-199) |PowerPoint 6-11 |

|A. There are several leadership styles by which to achieve goals. |Management Styles |

|1. No one style is better than another. |(Refers to text pages 194-196) |

|2. It depends on the situation. | |

|B. AUTOCRATIC LEADERSHIP involves making managerial decisions without consulting others. |TEXT FIGURE 6.12 |

|C. PARTICIPATIVE (DEMOCRATIC) LEADERSHIP consists of managers and employees working together to make |Leadership Styles (Box in text on page|

|decisions. |194) |

|1. Research shows that employee participation usually increases job satisfaction. | |

|2. Organizations that have successfully used this style include Ascentium, IBM, FedEx, and most | |

|smaller firms. | |

|3. Employees discuss management issues and resolve those issues together in a democratic manner. |TEXT REFERENCE |

|D. Free-Rein Leadership |Thinking Critically: |

|1. FREE-REIN (laissez-faire) LEADERSHIP involves managers setting objectives and then employees being|Chess, Not Checkers |

|relatively free to do whatever it takes to accomplish those objectives. |(Box in text on page 196-197) “Average|

|2. This style can be used when employees know the job well and management-employee trust exists. |managers play checkers, while great |

|3. It is often successful when dealing with technical workers or other professionals |managers play chess.” This quote |

|4. The personal traits needed include warmth, friendliness, and understanding. |illustrates that great managers value |

|E. Theory X |the unique abilities of their |

|1. Douglas McGregor observed that managers’ attitudes generally fall into one of two different sets |employees and learn how to integrate |

|of managerial assumptions: Theory X and Theory Y. |them into a coordinated plan. |

|2 Theory X managers believe: | |

|a. The average person dislikes work and will avoid it if possible. | |

|b. Because of this dislike, workers must be forced, controlled, directed, or threatened with | |

|punishment to be motivated to put forth the effort to achieve the organization’s goals. | |

|c. The average worker prefers to be directed, wishes to avoid responsibility, has relatively little | |

|ambition, and wants security. | |

|d. Primary motivators are fear and money. |lecture link 6-6 |

|3. The consequence of such attitudes is a manager who watches people closely. |Beware of Bad Bosses |

|a. Motivation is more punishment for bad work, rather than reward for good work. |Bad bosses have always been with us. |

|b. Theory X managers give workers little responsibility, authority, or flexibility. |This lecture link explains how to |

|c. This type of motivation may work in the short term, but is unlikely to work in the long term. |handle them. (See complete lecture |

|F. Theory Y |link on page 6.34 of this manual.) |

|1. THEORY Y manager make entirely different assumptions about people: | |

|a. Most people like work; it is as natural as play or rest. | |

|b. Most people naturally work toward goals to which they are committed. | |

|c. The depth of a person’s commitment to goals depends on the perceived rewards for achieving them. | |

|d. Under certain conditions, most people not only accept, but seek responsibility. | |

|e. People are capable of using a high degree of imagination, creativity, and cleverness to solve | |

|problems. | |

|f. In industry, the average person’s intellectual potential is only partially realized. | |

|g. People are motivated by a variety of rewards; each worker is stimulated by a reward unique to that| |

|worker. | |

|2. Theory Y emphasizes a relaxed managerial atmosphere in which workers are free to set objectives | |

|and be flexible. | |

|G. Theory Z | |

|1. In the 1980s William Ouchi developed Theory Z, a management theory that focuses on trust and | |

|intimacy within the work group. | |

|2. This style combines characteristics from Japanese and American management styles. | |

|3. Managers implementing Theory Z believe in: | |

|a. long-term employment; | |

|b. collective decision making; | |

|c. individual responsibility for the outcome of decisions; | |

|d. slow evaluation and promotion; | |

|e. moderately specialized career path; | |

|f. holistic concern for employees. | |

|H. Leadership is actually a continuum with varying amounts of employee participation. | |

|1. The best leadership style to use depends on: | |

|a. the goals and values of the firm; | |

|b. who is being led; | |

|c. in what situations. |PowerPoint 6-12 |

|2. Any one manager can use a variety of leadership styles. |Management Styles |

|3. Successful leaders use the leadership style that is appropriate to the situation and the employees|(Refers to text pages 196-199) |

|involved. | |

|SELF Check Questions (Text page 199) | |

|Do you think you would work well under free-rein leadership? Why or why not? | |

|Have you had a Theory X, Y, or Z manager? Describe your experience working for that person. | |

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| |Bonus Case 6-4 |

| |The Supermarket Manager |

| |A new employee develops some creative |

| |suggestions for improving performance,|

| |but her boss reacts badly. (See |

| |complete case, discussion questions, |

| |and suggested answers on page 6.54 of |

| |this manual.) |

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| |TEXT FIGURE 6.13 |

| |A Comparison of Theories X, Y, and Z |

| |(Box in text on page 199) |

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| |critical thinking |

| |exercise 6-7 |

| |Leadership Situation |

| |Different situations call for |

| |different leadership styles. This |

| |exercise asks students to identify |

| |specific situations. (See complete |

| |exercise on page 6.47 of this manual.)|

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| IV. Management Challenges | |

|Learning objective 6 | |

|EXPLAIN THE CHALLENGES FOR MANAGEMENT IN THE NEW CENTURY. (TEXT PAGES 200-203) | |

|A. Managers face unique challenges dealing with a constantly changing workplace. | |

|B. Intense Management Scrutiny | |

|1. Both large and small companies have been involved in shady, unethical practices. |PowerPoint 6-13 |

|2. These scandals have led to new laws. |Management Challenges |

|C. Constant Change in Business |(Refers to text pages 200-203) |

|D. Global Competition | |

|1. Competition among companies has greatly increased globally. | |

|2. Outsourcing to India and other countries has fueled a debate. | |

|E. Technological Changes | |

|1. The acceleration of technological change has created a new breed of worker, more educated and more|TEXT REFERENCE |

|skilled than previously. |Ethical Challenge |

|2. These workers demand more freedom of operation and different management styles. |Focus on Ethics: What Would You Do? |

|F. Diversity in the Workplace |(Box in text on page 201) |

|1. Immigration and diverse national backgrounds in the workplace create management challenges. |This box presents two situations that |

|G. Elimination of Managerial and Other Jobs Due to Downsizing |require a thoughtful solution. What is|

|1. Downsizing (rightsizing) is elimination of many management jobs, and other types of jobs, by using|ethical? What would you do? |

|cost-cutting methods and technology, such as computers. | |

|2. Downsizing refers to shrinking of the organization by reducing the workforce. | |

|3. Rightsizing may be defined more precisely as matching resources to the need. | |

|4. Both methods reflect reduction in jobs. | |

|5. This can be emotionally draining for the managers who have to decide who gets laid off. |TEXT REFERENCE |

|H. The Need to Get Things Done by Working with New Generations of Employees with Different Attitudes |Career Spotlight: So You Think You |

|1. Managers get things done by using organizational resources. |Want to Be … |

|2. At one time, managers were called bosses, and their job was to tell people what to do. |a Manager (Box in text on page 203) |

|3. Today managers must guide, train, support, motivate, and coach employees rather than telling them | |

|what to do. | |

|4. Most modern managers emphasize teamwork and cooperation rather than discipline and order-giving. | |

|I. To be effective, managers must rely on appropriate leadership skills and motivational techniques. | |

|SELF Check Questions (Text page 203) | |

|Why are managers facing intense scrutiny? | |

|How is diversity affecting today’s work environment? | |

|Define downsizing. Is downsizing the same as rightsizing? Explain. | |

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| |TEXT REFERENCE |

| |Real World Business Apps |

| |(Box in text on page 204) |

| |Alice has decided that she wants to be|

| |a participative manager. She studies |

| |her organization and identifies key |

| |organizational concepts. |

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| |Bonus Case 6-5 |

| |Oreck: After the Storm |

| |Hurricane Katrina affected every |

| |organization in its path. This case |

| |focuses on Oreck Corporation’s |

| |decision to close its Mississippi |

| |plant at Long Beach. (See complete |

| |case, discussion questions, and |

| |suggested answers on page 6.56 of this|

| |manual.) |

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