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Title: Management, Leadership, and the Internal Organization http://www.wileybusinessupdates.com


1
Management, Leadership, and the Internal
Organizationhttp//www.wileybusinessupdates.com
7
Chapter
2
Learning Goals
Define management and the three types of skills
necessary for managerial success. Explain the
role of vision and ethical standards in business
success. Summarize the benefits of planning and
distinguish strategic, tactical, and operational
planning. Describe the strategic planning process.
Contrast the types of business decisions and list
the steps in the decision-making process. Define
leadership and compare different styles of
leadership. Discuss the meaning and importance of
corporate culture. Identify the five major forms
of departmentalization and four main types of
organization structures.
3
What is Management?
  • Management is the process of achieving
    organizational objectives through people and
    other resources.

4
Top Management
  • Develop long-range strategic plans for the
    organization.
  • Inspire executives and employees to achieve their
    vision for the companys future.

5
Middle Management
  • Focus on specific operations, products, or
    customer groups within an organization.
  • Responsible for developing detailed plans and
    procedures to implement the firms strategic
    plans.

6
Supervisory Management
  • Implement the plans developed by middle managers.
  • Responsible for non-manager employees.
  • Motivate workers to accomplish daily, weekly, and
    monthly goals.

7
Skills Needed for Management Success
  • Technical skills
  • Managers ability to understand and use the
    techniques, knowledge, and tools and equipment of
    a specific discipline or department.
  • Human skills
  • Interpersonal skills that enable a manager to
    work effectively with and through people.
  • 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.

8
Managerial Functions
  • Planning
  • Process of anticipating future events and
    conditions and determining courses of action for
    achieving organizational objectives.
  • Organizing
  • Blending human and material resources through a
    formal structure of authority.
  • Directing
  • Guiding and motivating employees to accomplish
    organizational objectives.
  • Controlling
  • Evaluating an organizations performance to
    determine whether it is accomplishing its
    objectives.
  • Establish performance standards.
  • Monitor actual performance.
  • Compare actual performance with established
    standards.
  • Take corrective action if required.

9
Setting a Vision and Ethical Standards
  • Vision is the perception of marketplace needs and
    the methods an organization can use to satisfy
    them.
  • Must be focused yet adaptable to changes in the
    business environment.
  • Long-term success is also tied to the ethical
    standards that the top management team sets.
  • High ethical standard can also encourage,
    motivate, and inspire employees to achieve
    goals.
  • Ethical company list

10
Importance of Planning
  • There are different types and levels of plans.
  • Organizations should have a comprehensive
    planning framework.
  • From mission statement to objectives and goals
  • Narrow functional plans
  • Plans outline the steps the company will take to
    meet outlined goals and objectives.

11
Planning at Different Organizational Levels
12
The Strategic Planning Process
13
SWOT Analysis
14
Managers as Decision Makers
  • Decision making is the process of recognizing a
    problem or opportunity, evaluating alternative
    solutions, selecting and implementing an
    alternative, and assessing the results.
  • Programmed decision involves simple, common
    problems with predetermined solutions.
  • Nonprogrammed decision involves a complex, unique
    problem or opportunity with important
    consequences for the organization.

15
How Managers Make Decisions
16
Managers as Leaders
  • Leadership is the ability to direct or inspire
    people to attain certain goals.
  • Involves the use of influence or power.
  • Three traits are common among many leaders
  • Empathy
  • Self-awareness
  • Objectivity in dealing with others

17
Leadership Styles
  • Autocratic Leadership
  • Make decisions on own without consulting
    employees.
  • Democratic Leadership
  • Involve employees in decisions, delegate
    assignments, and ask employees for suggestions.
  • Free-Rein Leadership
  • Leave most decisions to employees.

18
Corporate Culture
  • Corporate Culture Organizations system of
    principles, beliefs, and values.
  • Managers use symbols, rituals, ceremonies, and
    stories to reinforce corporate culture.

19
Organizational Structures
  • Organization structured grouping of people
    working together to achieve common goals.
  • Three key elements
  • Human interaction
  • Goal-directed activities
  • Structure

20
Organizational Chart
21
Departmentalization
  • Process of dividing work activities into units
    within the organization.
  • Product departmentalization organized based on
    the goods and services a company offers.
  • Geographical departmentalization organized by
    geographical regions within a country or, for a
    multinational firm, by region throughout the
    world.
  • Customer departmentalization organized by the
    different types of customers the organization
    serves.
  • Functional departmentalization organized by
    business functions such as finance, marketing,
    human resources, and production.
  • Process departmentalization organized by work
    processes necessary to complete production of
    goods or services.

22
Different Forms of Departmentalization
23
Delegating Work Assignments
  • Delegation is the act of assigning work
    activities to subordinates.
  • Providing employees with the responsibility and
    the necessary authority for completing tasks.
  • Employees have accountability, or responsibility
    for the results of the way they perform their
    assignments.
  • Authority and responsibility move down
    accountability moves up.
  • Span of management is the number of subordinates,
    or direct reports, a supervisor manages.
  • Centralization decision making is retained at
    the top of the management hierarchy.
  • Decentralization decision making is located at
    the lower levels. Many firms believe it enhances
    their flexibility and responsiveness to customer
    needs.

24
Types of Organizational Structures
  • Line Organizations
  • Oldest and simplest form direct flow of
    authority from CEO to subordinates.
  • Chain of command indicates who directs which
    activities and who reports to whom.
  • Line-and-Staff Organizations
  • Combines line departments and staff departments.
  • Line departments participate directly in
    decisions that affect the core operations of the
    organization.
  • Staff departments lend specialized technical
    support.

25
Line and Staff Organizations
26
Committee Organizations
  • Authority and responsibility are in the hands of
    a group of individuals.
  • Often part of a line-and-staff structure.
  • Often develop new products.
  • Tend to act slowly and conservatively.
  • Often make decisions by compromising conflicting
    interests rather than choosing best alternative.

27
Matrix Organizations
  • Project management structure that links employees
    from different parts of the organization to work
    together on specific projects.
  • Employees report to a line manager and a project
    manager.
  • Advantages
  • Flexibility in adapting to changes.
  • Focus on major problems or products.
  • Outlet for employees creativity and initiative.
  • Disadvantages
  • Integrating skills of many specialists into a
    coordinated team.
  • Team members permanent functional managers must
    adjust the employees regular workloads.

28
The Matrix Organization
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