Management, Leadership, and the Internal Organization

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Management, Leadership, and the Internal
Organization
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Chapter
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Learning Objectives
Define management and the three types of skills
necessary for managerial success. Explain the
role of vision and ethical standards in business
success. 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 the five major forms
of departmentalization and four main types of
organization structures.
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What is Management?

• Management is the process of achieving
  organizational objectives through people and
  other resources.

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Top Management

• Develop long-range strategic plans for the
  organization.
• Inspire executives and employees to achieve their
  vision for the companys future.

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Middle Management

• Focus on specific operations, products, or
  customer groups within an organization.
• Responsible for developing detailed plans and
  procedures to implement the firms strategic
  plans.

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Supervisory Management

• Implement the plans developed by middle managers.
• Responsible for non-manager employees.
• Motivate workers to accomplish daily, weekly, and
  monthly goals.

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Skills Needed for Management 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.

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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 authority.
• Directing
• Guiding and motivating employees to accomplish
  organizational objectives.

• Controlling
• Evaluating an organizations performance to
  determine whether it is accomplishing its
  objectives.
• Establish performance standards.
• Monitor actual performance.
• Compare actual performance with established
  standards.
• Take corrective action if required.

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Setting a Vision and Ethical Standards

• Vision is the perception of marketplace needs and
  the methods an 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 the top management team sets.
• High ethical standard can also encourage,
  motivate, and inspire employees to achieve
  goals.
• Ethical company list

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Importance of Planning

• There are different types and levels of plans.
• Organizations should have a comprehensive
  planning framework.
• From mission statement to objectives and goals
• Narrow functional plans
• Plans outline the steps the company will take to
  meet outlined goals and objectives.

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Planning at Different Organizational Levels
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The Strategic Planning Process
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SWOT Analysis
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Further Steps in Strategic Planning

• Objectives set guideposts by which managers
  define the organizations desired performance in
  such areas as new-product development, sales,
  customer service, growth, environmental and
  social responsibility, and employee satisfaction.
• Competitive differentiation Considers how a
  companys abilities and resources set them apart
  from competitors
• Company then implements strategy
• Monitor and adapt strategic plans using SWOT
  analysis and forecasting

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Managers as Decision Makers

• Decision making is the process of recognizing a
  problem or opportunity, evaluating alternative
  solutions, selecting and implementing an
  alternative, and assessing the results.
• Programmed decision involves simple, common
  problems with predetermined solutions.
• Nonprogrammed decision involves a complex, unique
  problem or opportunity with important
  consequences for the organization.

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How Managers Make Decisions
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Managers as Leaders

• Leadership is the ability to direct or inspire
  people to attain certain goals.
• Involves the use of influence or power.
• Three traits are common among many leaders
• Empathy
• Self-awareness
• Objectivity in dealing with others

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Leadership Styles

• Autocratic Leadership
• Make decisions on own without consulting
  employees.
• Democratic Leadership
• Involve employees in decisions, delegate
  assignments, and ask employees for suggestions.
• Free-Rein Leadership
• Leave most decisions to employees.

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Corporate Culture

• Corporate Culture Organizations system of
  principles, beliefs, and values.
• Managers use symbols, rituals, ceremonies, and
  stories to reinforce corporate culture.

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Organizational Structures

• Organization structured grouping of people
  working together to achieve common goals.
• Three key elements
• Human interaction
• Goal-directed activities
• Structure

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Organizational Chart
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Departmentalization

• Process of dividing work activities into units
  within the organization.
• Product departmentalization organized based on
  the goods and services a company offers.
• Geographical departmentalization organized by
  geographical regions within a country or, for a
  multinational firm, by region throughout the
  world.
• Customer departmentalization organized by the
  different types of customers the organization
  serves.
• Functional departmentalization organized by
  business functions such as finance, marketing,
  human resources, and production.
• Process departmentalization organized by work
  processes necessary to complete production of
  goods or services.

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Different Forms of Departmentalization
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Delegating Work Assignments

• Delegation is the act of assigning work
  activities to subordinates.
• Providing employees with the responsibility and
  the necessary authority for completing tasks.
• Employees have accountability, or responsibility
  for the results of the way they perform their
  assignments.
• Authority and responsibility move down
  accountability moves up.
• Span of management is the number of subordinates,
  or direct reports, a supervisor manages.
• Centralization decision making is retained at
  the top of the management hierarchy.
• Decentralization decision making is located at
  the lower levels. Many firms believe it enhances
  their flexibility and responsiveness to customer
  needs.

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Types of Organizational Structures

• Line Organizations
• Oldest and simplest form direct flow of
  authority from CEO to subordinates.
• Chain of command indicates who directs which
  activities and who reports to whom.
• 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.

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Line and Staff Organizations
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Committee Organizations

• Authority and responsibility are in the hands of
  a group of individuals.
• Often part of a line-and-staff structure.
• Often develop new products.
• Tend to act slowly and conservatively.
• Often make decisions by compromising conflicting
  interests rather than choosing best alternative.

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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 in adapting to changes.
• Focus on major problems or products.
• Outlet for employees creativity and initiative.

• Disadvantages
• Integrating skills of many specialists into a
  coordinated team.
• Team members permanent functional managers must
  adjust the employees regular workloads.

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The Matrix Organization