Chapter 8 Management Leadership And Internal Organization What is Management Types of Management top management CEO CFO governor mayor management process of achieving organizational objectives thru people and resources o devote most of their time to developing long range plans o set a direction for the organization inspire executives middle management regional manager division head director dean focuses on specific operations products groups responsible for developing detailed plans to implement strategies responsible for targeting products and customers solving unique problems o o o supervisory management supervisor chairperson program manager responsible for assigning non managerial employees to specific jobs o o work directly with employees implement middle managers plans Skills Needed for Managerial Success Managerial Functions technical skills manager s ability to understand and use the techniques knowledge and tools and equipment of a specific discipline or dept human skills enable manager to work effectively with people ability to communicate with motivate and lead employees and complete assigned activities conceptual skills ability to see the organization as a unified whole and to understand how each part of the overall organization interacts with other parts o ability to see the big picture by acquiring analyzing and interpreting information planning process of anticipating future events and conditions and determining courses of action for achieving organizational objectives organizing the means by which managers blend human and material resources through a formal structure of tasks and authority directing guiding and motivating employees to accomplish organizational objectives controlling evaluating an organization s performance to determine whether if is accomplishing its objectives Setting a Vision Ethical Standards for the Firm vision perception of marketplace needs and the methods an organization can use to satisfy them vision serves as the target for a firm s actions helping direct the company toward opportunities and differentiating it from its competitors critical to a firm s long term success are the ethical standards that top executives set Importance of Planning Types of Planning strategic planning determining the primary objectives of an organization and then acting allocating resources to achieve those objectives tactical planning implementing the activities specified by strategic plans guide the current activities required to implement overall strategies operational planning creates the detailed standards that guide implementation of tactical plans involved choosing specific work targets and assigning employees to carry out plans contingency planning allows firms to resume operations after a crisis while openly communicating with the public about what happened business continuation and public communication Planning at Different Organizational Levels strategic top mgmt org objectives fundamental strategies long term plans tactical middle mgmt quarterly plans dept policies operational supervisory mgmt weekly plans rules procedures contingency top mgmt ongoing plans in an emergency Strategic Planning Process Defining Organization s Mission mission statement written explanation of an organization s intentions and aims enduring statement of the firm s purpose possibly highlighting the scope of operations the market it seeks to serve and how it will set itself apart form competitors Assessing Your Competitive Position human resources SWOT analysis strengths weaknesses opportunities threats To evaluate a firm s strengths and weaknesses planners may examine each fundamental area such as finance marketing IT Possibilities include environmental factors such as market growth regulatory changes and increased competition Setting Objectives for the Organization objectives guideposts by which managers define the organization s desired performance in areas like profitability customer service growth and employee satisfaction Creating Strategies for Competitive Differentiation competitive differentiation unique combination of a company s abilities and approaches that sets it apart from competitors product innovation technology employee motivation managers must put strategic plans into action by identifying specific points at which to pause and deploying the resources Implementing the Strategy needed to implement the intended plans Monitoring and Adapting Strategic Plans monitoring involves establishing methods of securing feedback about actual performance comparing actual sales and market share data with forecasts compiling information from supplier and customer surveys monitoring complaints from the firm s customer hot line and reviewing reports prepared by production finance marketing Manager as Decision Makers decision making recognizing an opportunity evaluating solutions selecting and implementing an alternative assessing the results programmed decision involves simple common frequently occurring problems for which solutions have already been determined o assigning salaries ordering materials setting discount schedule unprogrammed decision involves a complex unique problem opportunity with important consequences o entering a new market acquiring another company introducing a new product Steps in the Decision Making Process recognize problem 1 2 develop alternative solutions 3 evaluate solutions 4 select and implement solution 5 Manager as Leaders follow up to determine effectiveness of decision leadership ability to direct or inspire people to attain organizational goals Great leaders share 3 traits empathy self awareness objectivity in dealing with others Sources of power leader s position in organization personality Leadership Styles autocratic leadership make decisions on their own without consulting employees reach decisions communicate them to subordinates expect prompt implementation democratic leadership subordinates involved in making decisions leaders ask employees for suggestions and encourage participation empowerment managers lead employees by sharing power responsibility and decision making free reign leadership leave most decisions to their subordinates leaders communicate with employees as the situation warrants o o o o Corporate Culture Organizational Structures Departmentalization corporate culture organization s system of principles beliefs and values a corporate culture is shaped by the leaders who founded and developed the company and by those who
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