Chapter 7 Management, Leadership, and the Internal Organization
Learning Goals1 Define management and the three types 5 Contrast the types of business of skills necessary for managerial decisions and list the steps in the success. decision-making process.2 Explain the role of vision and ethical 6 Define leadership and compare standards in business success. different styles of leadership.3 Summarize the benefits of planning and 7 Discuss the meaning and distinguish strategic, tactical, and importance of corporate culture. operational planning. 8 Identify the five major forms of4 Describe the strategic planning process. departmentalization and four main types of organization structures.
W is Management? hats Management is the process of achieving organizational objectives through people and other resources.
Top Managements Develop long-range strategic plans for the organization.s Inspire executives and employees to achieve their vision for the company’s future.
Middle Managements Focus on specific operations, products, or customer groups within an organization.s Responsible for developing detailed plans and procedures to implement the firm’s strategic plans.
Supervisory Managements Implement the plans developed by middle managers.s Responsible for non- manager employees.s Motivate workers to accomplish daily, weekly, and monthly goals.
Skills Needed for Management Successs Technical skills s Manager’s ability to understand and use the techniques, knowledge, and tools and equipment of a specific discipline or department.s Human skills s Interpersonal skills that enable a manager to work effectively with and through people.s Conceptual skills s Ability to see the organization as a unified whole and to understand how each part of the overall organization interacts with other parts.
Managerial FunctionsPlanning Controlling s Process of anticipating s Evaluating an future events and organization’s conditions and determining performance to courses of action for determine whether it is achieving organizational accomplishing its objectives. objectives.Organizing s Blending human and 3. Establish performance material resources through standards. a formal structure of 4. Monitor actual authority. performance.Directing 5. Compare actual performance with s Guiding and motivating established standards. employees to accomplish organizational objectives. 6. Take corrective action if required.
Setting a Vision and Ethical Standardss Vision is the perception of marketplace needs and the methods an organization can use to satisfy them. s Must be focused yet adaptable to changes in the business environment.s Long-term success is also tied to the ethical standards that the top management team sets. s High ethical standard can also encourage, motivate, and inspire employees to achieve goals. s Ethical company list
Importance of Plannings There are different types and levels of plans.s Organizations should have a comprehensive planning framework. s From mission statement to objectives and goals s Narrow functional planss Plans outline the steps the company will take to meet outlined goals and objectives.
Managers as Decision Makerss Decision making is the process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results.s Programmed decision involves simple, common problems with predetermined solutions.s Nonprogrammed decision involves a complex, unique problem or opportunity with important consequences for the organization.
Managers as Leaderss Leadership is the ability to direct or inspire people to attain certain goals.s Involves the use of influence or power.s Three traits are common among many leaders: s Empathy s Self-awareness s Objectivity in dealing with others
Leadership Styles s Autocratic Leadership s Make decisions on own without consulting employees. s Democratic Leadership s Involve employees in decisions, delegate assignments, and ask employees for suggestions. s Free-Rein Leadership s Leave most decisions to employees.
Corporate Cultures Corporate Culture: Organization’s system of principles, beliefs, and values.s Managers use symbols, rituals, ceremonies, and stories to reinforce corporate culture.
Organizational Structuress Organization: structured grouping of people working together to achieve common goals.s Three key elements: s Human interaction s Goal-directed activities s Structure
DepartmentalizationProcess of dividing work activities into units within the organization.s Product departmentalization: organized based on the goods and services a company offers.s Geographical departmentalization: organized by geographical regions within a country or, for a multinational firm, by region throughout the world.s Customer departmentalization: organized by the different types of customers the organization serves.s Functional departmentalization: organized by business functions such as finance, marketing, human resources, and production.s Process departmentalization: organized by work processes necessary to complete production of goods or services.
Delegating W Assignments orks Delegation is the act of assigning work activities to subordinates. s Providing employees with the responsibility and the necessary authority for completing tasks. s Employees have accountability, or responsibility for the results of the way they perform their assignments. s Authority and responsibility move down; accountability moves up.s Span of management is the number of subordinates, or direct reports, a supervisor manages.s Centralization: decision making is retained at the top of the management hierarchy.s Decentralization: decision making is located at the lower levels. Many firms believe it enhances their flexibility and responsiveness to customer needs.
Types of Organizational StructuresLine Organizationss Oldest and simplest form; direct flow of authority from CEO to subordinates.s Chain of command indicates who directs which activities and who reports to whom.Line-and-Staff Organizationss Combines line departments and staff departments.s Line departments participate directly in decisions that affect the core operations of the organization.s Staff departments lend specialized technical support.
Committee Organizationss Authority and responsibility are in the hands of a group of individuals.s Often part of a line-and-staff structure.s Often develop new products.s Tend to act slowly and conservatively.s Often make decisions by compromising conflicting interests rather than choosing best alternative.
Matrix Organizationss Project management structure that links employees from different parts of the organization to work together on specific projects.s Employees report to a line manager and a project manager.Advantages: Disadvantages:s Flexibility in adapting to s Integrating skills of many changes. specialists into a coordinateds Focus on major problems team. or products. s Team members’ permanent functional managers musts Outlet for employees’ adjust the employees’ creativity and initiative. regular workloads.