Chapte r8 Management, Leadership & the internal Organization

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What is management?

Process of achieving organization objectives through people and other resources Applied for not-for-profit organization & profit-seeking firms

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Management Hierarchy

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Top Management plans & procedures

Develop detailed

Middle Management plans

Develop long-range

First-line Management Implement the plans developed by middle management

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Skills needed for managerial success

Conceptua l Skills Human skills

Top Managers

Middle Managers

Technical skills

Lower Level Managers

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Managerial function

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Planning: process of anticipating future events & conditions & determining courses of action for achieving organizational objectives Organizing: blend human and material resources through a formal structure of tasks and authority

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Directing: guide and motivate employees to accomplish organizational objectives. It includes explaining procedures, issuing orders, seeing mistakes are corrected Controlling: evaluate the organizational performance to determine whether it is accomplishing the objectives
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Vision: perception of marketplace needs and methods an organization can use to satisfy them; helps to direct the company toward opportunities and differentiating it from its competitors. Ethical standards: encourages employees, motivates, and inspires them to achieve goals they never thought possible. 5/30/12

The role of vision and ethical standards in business success

Types of Planning

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Feedback

Feedback

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Strategic Planning Process

A mission statement is a written explanation of an organizations business intentions and aims

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Assessing your competitive position: process to assess the firms current position in the marketplace once a mission statement has created. It involves an examination of the factors that may help or hinder the organization in the future

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Strengths: State of the Art Information System Economic of Scale Patent Protection Sales team

SWOT Analysis
N T S

Opportunities: New technologies Strategic Alliances with Vendors New Markets Extension of Existing Products

R I A

Weaknesses: Lack of Managerial Logistics limitations Financing constraints Dated production 5/30/12 facilities

L E V E R A G E
Y A B T I R E N

L U V

Threats: Changing buyer Taste Enhanced competition New government

P R O B L E M S

Decision Making

Process begin when a person recognize problem or opportunity; proceed with developing potential courses of action, evaluating the alternative, selecting and implementing one of them, and assessing the outcome of decision Decisions made by managers have complex legal and ethical dimensions
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Programmed decision: involves simple, common and frequently occurring problems for which solutions have been already determined; exp: choosing the starting salary of a new marketing assistant Non programmed decision: involves a complex and unique problem or opportunity with important consequences for the organization; exp: entering a new geographical market, acquiring 5/30/12

Decision Making Process

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Leadership

Ability to direct or inspire people to attain organizational goals Autocratic leadership is centered on the boss. Leaders make decisions on their own without consulting employees. They reach decision, communicate them to subordinates and expect prompt implementation of instructions
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Democratic leadership involves subordinates in making decisions. Centers on employees contributions. Delegate assignments, ask employees for suggestions & encourage participation

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Free-rein leadership believes in minimal supervision. Leave most decisions to their subordinates, communicate with employee frequently as the situation warrants

The most appropriate leadership style depends on the function of the leader, the subordinates and the situation
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Corporate Culture

Organizations system of values, principles and beliefs Managerial philosophies, communications networks, and workplace environments and practices all influence corporate culture. It is typically shaped by the leaders
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Organizational Structure

structured grouping of people working together to achieve common goals. Organizations features three key elements: human interaction, goal directed activities and structure

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Organizing Process

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Organization Chart

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Departmentalization

Process of diving work activities into units within the organization. This arrangement lets employees specialize in certain jobs to promote efficient performance. The five major forms:

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1.

Product departmentalization: this approach organizes work units based on the good and services a company offers. Geographical departmentalization: this form organizes units by geographical regions within a country or, for a multinational firm, by region throughout the world.

2.

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3.

Customer departmentalization: a firm that offers a variety of goods and services targeted at different types of customers might structures itself based on customer departmentalization. Functional departmentalization: some firms organize work units according to business functions such as finance, marketing, human resources and production. Process departmentalization: some

4.

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Departmentalization within the Org

Functional Departmentaliz ation

Geographical Departmentaliz ation

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Customer Departmentaliz ation

Delegating work assignments: its an act of assigning work activities to subordinates. Managers delegate work to free their own time for planning and decision making. Subordinates receive responsibility or obligation to perform those tasks

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Span management: number of subordinates a manager can supervise effectively. The subordinates are often referred to as direct reports. It varies considerably depending on many factors, including the type of work performed and employees 5/30/12

Centralization and decentralization: company that emphasizes centralization retains decisionmaking at the top of management hierarchy. A company that emphasizes decentralization locates decision making at lower level.

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Line organization: establishes a direct flow of authority from the CEO to subordinates

Types of Organization Structures

Line-and-staff organization: combines the direct flow of authority of the line departments with staff departments 5/30/12 that supports the line department

Committee organizations: a structure that places authority and responsibility jointly in the hands of a group of individual rather than a simple manager

Matrix organizations: or project management structure. It links employees from different parts of the 5/30/12 organization to work together on

CLICK, ITS.

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THE END