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02/09/2022 02:35 1
Makerere University Business School
Strategic Management Course
MANAGEMENT LEVELS,
DECISIONS & SKILLS
02/09/2022 02:35 ABAHO ERNEST 2
Management Levels
Corporate level – organisation peak
Board of directors
Parent Company
Business level (business unit level)
Strategic business unit is a unit in the
organisation which is sufficiently
autonomous for it to have a strategy which
could be distinct from other units if this were
desirable.
02/09/2022 02:35 ABAHO ERNEST 3
Management levels - ctd
Functional level e.g
Production
Marketing
Finance
Research and development
Human resources and administration
Operational level
Subsections e.g a production line
02/09/2022 02:35 ABAHO ERNEST 4
Board of Directors
Has ultimate legal authority
Responsible to shareholders for:
Ensuring management continuity
Protecting resources
Prudent actions in relation to corporate
objectives
Approving major Financial and operational
decisions of managers.
Maintaining, revising and enforcing corporate
charter and by-laws.
02/09/2022 02:35 ABAHO ERNEST 5
Board membership
Membership requirements
Knowledge of some functions e.g operations
Business acumen
Industry perspective
“Inside board” – comprised of top managers
Traditional
Risk of ratifying their own decisions
“Outside board members”
Stakeholders in shareholders interests
Represent minority group
02/09/2022 02:35 ABAHO ERNEST 6
Board membership - ctd
Now increasingly active due to:
• Increasing charges on directors for failure
• Legislation in some countries
• Increase in audit requirements
Director jobs are increasingly becoming un-
attractive because of accountability.
02/09/2022 02:35 ABAHO ERNEST 7
The General Manager
GMs are key players in strategic management
Executives at enterprise pinnacle or SBUs
Responsible for survival and success
Common titles:
Chairman (of the board)
President (or Senior VP, Exec. VP, VP)
Managing Director
Chief Executive Officer
General manager
02/09/2022 02:35 ABAHO ERNEST 8
GMs Skill requirements
More conceptual skills
Organisational skills
Analytical skills
Design & planning skills
Critical thinking skills
Human relations & interpersonal skills
General skills rather than specialised skills
Less need for technical abilities
02/09/2022 02:35 ABAHO ERNEST 9
GM Roles – Mintzberg’s List
Interpersonal roles
Symbolic figure head of the organisation
Ceremonial duties – legal or social
Staffing, training and motivating
Informational roles
Disseminator to outsiders & insiders
Spokesperson
Monotor – reads reports, makes tours, observes
meetings seeking information
02/09/2022 02:35 ABAHO ERNEST 10
Roles Continued
Decision roles:
Entrepreneur – strategic functions to start projects
Disturbance handler
Correct problems
Solve crises
Resource “allocator”
Authorise budgets
Approve allocation requests for
• Human resources, Monetary resources, Material resources
Negotiator- signs contracts with
Trade unions
Big suppliers
Big customers
02/09/2022 02:35 ABAHO ERNEST 11
GM roles – non strategic
Have other work, day to day
Tend to get trapped in these jobs
Because of short term results
Less emphasis on strategic roles leads to lack of
innovation
02/09/2022 02:35 ABAHO ERNEST 12
Business Level
Strategic business unit managers
Corporate planners
Consultants
Roles
SBU executives may set strategies for their
units / businesses
Roles are generally similar to top level
managers but for their units
Create multiple strategies on a contingency
basis
02/09/2022 02:35 ABAHO ERNEST 13
SBU Executive skills
Entrepreneurial skills
Develop new ventures
Detailed planning skills
Expertise in strategic planning
They share skill requirements with top level
managers
02/09/2022 02:35 ABAHO ERNEST 14
Middle / Tactical/ Functional level
Roles
Receive from top – policies, goals
Interpret for subordinates for action
Policy implementers
Take un-structured tactical decisions
Structure them, guide lower levels for implementation
Examples of tactical decisions
Customers (in general) to be given credit
Products / services for specific markets
02/09/2022 02:35 ABAHO ERNEST 15
Functional level skill requirements
More inter-personal skills such as
Assertiveness
Conflict management
Facilitation and meeting
Negotiation
Motivation & influencing skills
Mentoring / coaching
Networking
02/09/2022 02:35 ABAHO ERNEST 16
Supervisory / Operational Level
Doers, managers who actually supervise the work
Direct, control the work
Provide main contact between management and
workers
Take structured / programmed decisions
Decisions at this level
02/09/2022 02:35 ABAHO ERNEST 17
Operational decisions - examples
Assigning operational tasks
Allocating equipment, tools for use
Deciding which suppliers to be on the approved
list
Scheduling reporting time
Approving leave
Determining inventory re-order levels
02/09/2022 02:35 ABAHO ERNEST 18
Operational level skills requirements
Technical skills
Inter-personal skills
Skills of other (higher levels) but of less
importance

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5 Management levels.ppt

  • 1. 02/09/2022 02:35 1 Makerere University Business School Strategic Management Course MANAGEMENT LEVELS, DECISIONS & SKILLS
  • 2. 02/09/2022 02:35 ABAHO ERNEST 2 Management Levels Corporate level – organisation peak Board of directors Parent Company Business level (business unit level) Strategic business unit is a unit in the organisation which is sufficiently autonomous for it to have a strategy which could be distinct from other units if this were desirable.
  • 3. 02/09/2022 02:35 ABAHO ERNEST 3 Management levels - ctd Functional level e.g Production Marketing Finance Research and development Human resources and administration Operational level Subsections e.g a production line
  • 4. 02/09/2022 02:35 ABAHO ERNEST 4 Board of Directors Has ultimate legal authority Responsible to shareholders for: Ensuring management continuity Protecting resources Prudent actions in relation to corporate objectives Approving major Financial and operational decisions of managers. Maintaining, revising and enforcing corporate charter and by-laws.
  • 5. 02/09/2022 02:35 ABAHO ERNEST 5 Board membership Membership requirements Knowledge of some functions e.g operations Business acumen Industry perspective “Inside board” – comprised of top managers Traditional Risk of ratifying their own decisions “Outside board members” Stakeholders in shareholders interests Represent minority group
  • 6. 02/09/2022 02:35 ABAHO ERNEST 6 Board membership - ctd Now increasingly active due to: • Increasing charges on directors for failure • Legislation in some countries • Increase in audit requirements Director jobs are increasingly becoming un- attractive because of accountability.
  • 7. 02/09/2022 02:35 ABAHO ERNEST 7 The General Manager GMs are key players in strategic management Executives at enterprise pinnacle or SBUs Responsible for survival and success Common titles: Chairman (of the board) President (or Senior VP, Exec. VP, VP) Managing Director Chief Executive Officer General manager
  • 8. 02/09/2022 02:35 ABAHO ERNEST 8 GMs Skill requirements More conceptual skills Organisational skills Analytical skills Design & planning skills Critical thinking skills Human relations & interpersonal skills General skills rather than specialised skills Less need for technical abilities
  • 9. 02/09/2022 02:35 ABAHO ERNEST 9 GM Roles – Mintzberg’s List Interpersonal roles Symbolic figure head of the organisation Ceremonial duties – legal or social Staffing, training and motivating Informational roles Disseminator to outsiders & insiders Spokesperson Monotor – reads reports, makes tours, observes meetings seeking information
  • 10. 02/09/2022 02:35 ABAHO ERNEST 10 Roles Continued Decision roles: Entrepreneur – strategic functions to start projects Disturbance handler Correct problems Solve crises Resource “allocator” Authorise budgets Approve allocation requests for • Human resources, Monetary resources, Material resources Negotiator- signs contracts with Trade unions Big suppliers Big customers
  • 11. 02/09/2022 02:35 ABAHO ERNEST 11 GM roles – non strategic Have other work, day to day Tend to get trapped in these jobs Because of short term results Less emphasis on strategic roles leads to lack of innovation
  • 12. 02/09/2022 02:35 ABAHO ERNEST 12 Business Level Strategic business unit managers Corporate planners Consultants Roles SBU executives may set strategies for their units / businesses Roles are generally similar to top level managers but for their units Create multiple strategies on a contingency basis
  • 13. 02/09/2022 02:35 ABAHO ERNEST 13 SBU Executive skills Entrepreneurial skills Develop new ventures Detailed planning skills Expertise in strategic planning They share skill requirements with top level managers
  • 14. 02/09/2022 02:35 ABAHO ERNEST 14 Middle / Tactical/ Functional level Roles Receive from top – policies, goals Interpret for subordinates for action Policy implementers Take un-structured tactical decisions Structure them, guide lower levels for implementation Examples of tactical decisions Customers (in general) to be given credit Products / services for specific markets
  • 15. 02/09/2022 02:35 ABAHO ERNEST 15 Functional level skill requirements More inter-personal skills such as Assertiveness Conflict management Facilitation and meeting Negotiation Motivation & influencing skills Mentoring / coaching Networking
  • 16. 02/09/2022 02:35 ABAHO ERNEST 16 Supervisory / Operational Level Doers, managers who actually supervise the work Direct, control the work Provide main contact between management and workers Take structured / programmed decisions Decisions at this level
  • 17. 02/09/2022 02:35 ABAHO ERNEST 17 Operational decisions - examples Assigning operational tasks Allocating equipment, tools for use Deciding which suppliers to be on the approved list Scheduling reporting time Approving leave Determining inventory re-order levels
  • 18. 02/09/2022 02:35 ABAHO ERNEST 18 Operational level skills requirements Technical skills Inter-personal skills Skills of other (higher levels) but of less importance