Management Function Planning cont Management and Organization Business management requires a large amount of planning on multiple fronts Determines the major goals of the organization Strategic Planning Tactical Planning Developing detailed directives about who what when etc Operational Planning Establishing the standards and processes That will execute tactical plans Contingency Planning Developing alternative courses to be deployed in the event of changing circumstances Management Function Leading Basics of Management Being a leader requires creating a vision for others to follow and establish values and ethics Good leaders motivate their staff and create an environment of motivation and growth The best leaders are able to Communicate a Vision and Motivate Others Still must be sensitive to concerns Establish Corporate Vision Creating and implementation Promote Corporate Ethics Must demand honesty and integrity Accept and Adapt to Change Must be able to transform strategies CONTENT CONTENT Basics of Management Management Function Leading cont Leadership Styles Leadership styles are relatively hard to categorize No one style is right although most fall into these categories Dictatorial form of leadership autocrats rely very little on outside input Autocratic Leadership Participative Leadership Essentially the opposite of the autocrat the participative leader brings staff members together and enjoys group participation Free rein Leadership The free rein leader promotes employee empowerment and freedom Management Function Controlling Management and Organization The controlling side of management is at the core of management Setting standards measuring efforts then rewarding or correcting performance is critical to operations In general there are five basic steps to controlling staff Establish Clear Standards Monitor Performance Evaluate Results Staff Feedback Corrective Action Communicate Results This cycle relies on such controlling basics as employee reviews ethics codes 360 reviews etc Management and Organization Management Function Controlling cont In general the area that gets the least attention is standards setting Standards tend to be too vague to measure effectively Standards when possible should have clear easily tracked metrics Accounting and finance are often responsible for providing the data necessary to review performance Recently customer service benchmarks have helped management evaluate their staff s performance Many businesses measure their performance on customer satisfaction both internal and external Management and Organization Management Function Organizing Most businesses have the following personnel levels Level Population Example Top Senior Executives Chief Operating Officer Middle Mid Level Managers Regional Manager First Line Supervisory Managers Store Manager Staff Non Exempt Employees Hourly Worker Non exempt employees are employees who are covered by the Fair Labor Standards Act s minimum wage and overtime pay provisions Exempt employees are typically executives administrators professionals etc Management and Organization Management Function Organizing cont All businesses must undertake a fair amount of staffing organization This means allocating resources assigning tasks establishing procedures and achieving strategies etc Organization Chart An organization chart org chart is the de facto standard for displaying the relationships among business personnel An org chart clearly defines the hierarchy who reports to whom chain of command channels of communication etc VP Northeast Sales Baltimore Washington NYC TriState Philadelphia Richmond Wilmington Five Burroughs Fed Reserve Manhattan Queens Management and Organization Management Function Organizing cont Issues Involved With Structuring Organizations Centralized vs Decentralized Authority can either be focused at the top levels or it can be delegated to lower level staff Span of Control In general higher levels of the organization control smaller groups of people Tall vs Flat Flat orgs have few layers of management whereas tall orgs have a pyramid shape Departmentalization Organizational functions are generally separated into separate units This can offer productivity gains but can create internal issues that are hard to solve Basics of Management Management Function Organizing cont Organization Models After considering the functions staffing and issues an organization is usually structured into one of the following forms Line Organizations A line organization has direct two way top to bottom lines of responsibility and communication Line orgs have limited or no specialized support staff That staff is part of a Line and Staff organization Matrix Organization Developed in order to counter weaknesses in line orgs a matrix org establishes connections between divisions to help create enterprise synergies or heartaches Management and Organization Management Function Organizing cont Organization Models cont Cross Functional Self Managed Teams Also known as Self Directed Work Groups these relatively permanent teams are made up of staff from different departments To be effective teams need to be empowered to make and execute their own decisions Lip service breeds resentment and many managers are uncomfortable giving up control especially autocrats With appropriate implementation barriers between departments fade and teams become very effective Recent self managed team developments include membership input for customers suppliers and other channel members Management and Organization Management Function Organizing cont Organizational Change Organizations generally do not stay in the same form in perpetuity The most successful businesses modify their organizational structure in response to circumstances Restructuring Restructuring is the basic periodic redesign of the organizational model Changes to lines of authority and communication are common Reengineering Reengineering is a complete radical redesign with dramatic improvements as the goal This often opens the window for more advanced forms of organization in the minds of reluctant managers Basics of Management Management Function Organizing cont Organizational Culture The organizational culture is essentially the shared values that provide unity in the pursuit of enterprise goals The best organizations have a culture that pleases customers and employees For many businesses their culture has become a part of the overall marketing philosophy Organizational
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