The document discusses the different levels of management in organizations, including the corporate, business, functional, and operational levels. It provides details on the roles and responsibilities of managers at each level. The corporate level includes boards of directors and parent companies. The business level focuses on strategic business units. Functional areas include production, marketing, finance, and human resources. Operational managers directly supervise work. The document also outlines the skills required of managers at each level.

1. Makerere University Business School
Strategic Management Course
MANAGEMENT LEVELS, DECISIONS &
SKILLS
24/09/13 13:22 A.N.S- nsserwanga@yahoo.com 1

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.
24/09/13 13:22 ABAHO ERNEST 2

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
24/09/13 13:22 ABAHO ERNEST 3

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.
24/09/13 13:22 ABAHO ERNEST 4

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
24/09/13 13:22 ABAHO ERNEST 5

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.
24/09/13 13:22 ABAHO ERNEST 6

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
24/09/13 13:22 ABAHO ERNEST 7

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
24/09/13 13:22 ABAHO ERNEST 8

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
24/09/13 13:22 ABAHO ERNEST 9

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 customers24/09/13 13:22 ABAHO ERNEST 10

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
24/09/13 13:22 ABAHO ERNEST 11

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
24/09/13 13:22 ABAHO ERNEST 12

13. SBU Executive skills
• Entrepreneurial skills
– Develop new ventures
• Detailed planning skills
• Expertise in strategic planning
• They share skill requirements with top level
managers
24/09/13 13:22 ABAHO ERNEST 13

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
24/09/13 13:22 ABAHO ERNEST 14

15. Functional level skill requirements
More inter-personal skills such as
• Assertiveness
• Conflict management
• Facilitation and meeting
• Negotiation
• Motivation & influencing skills
• Mentoring / coaching
• Networking
24/09/13 13:22 ABAHO ERNEST 15

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
24/09/13 13:22 ABAHO ERNEST 16

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
24/09/13 13:22 ABAHO ERNEST 17

18. Operational level skills requirements
• Technical skills
• Inter-personal skills
• Skills of other (higher levels) but of less
importance
24/09/13 13:22 ABAHO ERNEST 18