8/14/2019 Management the Great

1/20

Chapter 8Management, Leadership, and InternalOrganization

LearningGoa

ls

Define managementand

the skills necessary for

managerial success.

Explain the role of vision andethical standards.

Summarize the benefits of

planning and distinguish strategic,

tactical, and operational planning.

Describe the strategic planning

process.

Contrast the types of business

decisions and list the steps in the

decision-making process.

Define leadership and compare

different styles of leadership.

Discuss the meaning and

importance of corporate

culture.

Identify forms of depart-

mentalization and types of

organization structures.

1

2

3

5

6

7

4

8

8/14/2019 Management the Great

2/20

WHAT IS MANAGEMENT?

ManagementProcess of achieving organizational objectives through people and other resources.

The Management Hierarchy

Top management

Develop long-range strategic plans for the organization.

Middle management

Focus on specific operations, products, or customer groups within

an organization.

Supervisory management

Implement the plans developed by middle managers.

8/14/2019 Management the Great

3/20

Skills Needed for Managerial Success

Technical skills Managers ability to understand and use the techniques,

knowledge, and tools and equipment of a specific discipline or department.

Human skills Interpersonal skills that enable a manager to work effectively with

and through people.

Conceptual skills Ability to see the organization as a unified whole and to

understand how each part of the overall organization interacts with other parts.

8/14/2019 Management the Great

4/20

Managerial Functions

Planning

Process of anticipating future events and conditions and determining courses of

action for achieving organizational objectives.

Organizing

Blending human and material resources through a formal structure of tasks and

authority.

Directing

Guiding and motivating employees to accomplish organizational objectives.

Vital responsibility of supervisory managers.

Controlling

Evaluating an organizations performance to determine whether it is

accomplishing its objectives.

8/14/2019 Management the Great

5/20

SETTING A VISION AND ETHICAL STANDARDS FOR THE FIRM

VisionPerception of marketplace needs and the methodsan organization can use to satisfy them.

Must be focused yet adaptable to changes

in the business environment.

Long-term success is also tied to the ethical

standards that top executives set.

High ethical standard can also encourage, motivate,

and inspire employees to achieve goals.

Starbucks Mission

http://www.starbucks.com/aboutus/environment.asphttp://www.starbucks.com/aboutus/environment.asp

8/14/2019 Management the Great

6/20

IMPORTANCE OF PLANNING

Types of PlanningStrategic

Determining the primary objectives of an organization and then acting and allocating resources to achieve those objectives.

Tactical

Guides the activities required to implement overall strategies.

Operational

Assigning employees and teams to carry out tactical plans.

Contingency

Planning for unforeseen major accidents, natural disasters, and rapid economic downturns.

8/14/2019 Management the Great

7/20

Planning at Different Organizational Levels

8/14/2019 Management the Great

8/20

THE STRATEGIC PLANNINGPROCESS

Often makes the difference between success and failure.

8/14/2019 Management the Great

9/20

8/14/2019 Management the Great

10/20

MANAGERS AS DECISION MAKERSDecision makingprocess of recognizing a problem or opportunity, evaluating

alternative solutions, selecting and implementing an alternative, and assessing

the results.

Programmed and NonprogrammedDecisions

Programmed decision involves simple, common problems with predetermined

solutions.

Nonprogrammed decision involves a complex, unique problem or opportunity

with important consequences for the organization.

8/14/2019 Management the Great

11/20

How Managers Make Decisions

8/14/2019 Management the Great

12/20

MANAGERS AS LEADERSLeadershipAbility to direct or inspire people to attain

organizational goals.

Involves the use of influence or power.

Three traits are common among many leaders:

Empathy

Self-awareness

Objectivity in dealing with others

8/14/2019 Management the Great

13/20

Leadership Styles

AutocraticleadershipMakedecisions on own without consulting employees.

Democratic leadership Involveemployees in decisions, delegate assignments, ask employees for suggestions.

Free-rein leadership Leave most decisions to employees.

Which Leadership Style Is Best?

No single style is always best.

Experts haveidentified several important variables:

The leaders base of power

The difficulty of tasks involved

The characteristics of theemployees

8/14/2019 Management the Great

14/20

CORPORATE CULTURE

Corporate cultureOrganizations system of principles, beliefs, and values.

Managerial philosophies, communications networks, and workplace environments and practices all influence corporate culture.

Typically shaped by the leaders who founded and developed the company and by those who have succeeded them.

Can be changed.

Strong culture = everyone knows and supports the same principles, beliefs, and values.

Weak or constantly shifting culture = lack of a clear sense of purpose.

Proctor & Gamble emphasizes their unique corporate culture.

http://www.pg.com/en_US/index.jhtmlhttp://www.pg.com/en_US/index.jhtml

8/14/2019 Management the Great

15/20

Organizational StructuresOrganizationStructured grouping of people working together to achieve

common goals.

8/14/2019 Management the Great

16/20

Departmentalization

DepartmentalizationProcess of dividing work activities into units within theorganization.

Five major forms:

Product

Geographical

Customer

Functional

Process

8/14/2019 Management the Great

17/20

Delegating Work Assignments

DelegationAct of assigning work activities to subordinates.

Employees receive both the responsibility and the necessary authority for completing the tasks.

Employees have accountability, or responsibility for the results of the way they perform their

assignments.

Span of Management

Span of managementNumber of subordinates, or direct reports, a supervisor manages.

Centralization and Decentralization

Centralization Decision making is retained at the top of the management hierarchy.

Decentralization Decision making is located at the lower levels.

8/14/2019 Management the Great

18/20

Types of Organization Structures

Line Organizations

Oldest and simplest form; direct flow of authority from CEO to subordinates.

Chain of commandSet of relationships that indicates who directs whichactivities and who reports to whom.

Ineffective in large- and medium-sized organizations.

Line-and-Staff Organizations

Combines line departments and staff departments.

Line departments participate directly in decisions that affect the core

operations of the organization.

Staff departments lend specialized technical support.

8/14/2019 Management the Great

19/20

8/14/2019 Management the Great

20/20

Committee Organizations

Authority and responsibility are jointly in the hands of

a group of individuals rather than a single manager.

Tend to act slowly and conservatively.

Often make decisions by compromising conflicting

interests rather than choosing best alternative.

Matrix Organizations

Project management structure that links employees from different parts of the organization to work together on specific projects.

Employees report to a line manager and a project manager.

Advantages: Flexibility, ability to focus on major problems or products.

Challenges: Integrating skills of many specialists into a coordinated teams, employee frustration and confusion over reporting to two bosses.