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5 management levels

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5 management levels

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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