Organizations and managers BOH4M1

Organization A collection of people working together to achieve a common purpose Three characteristics: 1. Purpose—to create a good or service 2. Division of labour—different tasks assigned to different people 3. Hierarchy of authority—a level-by level management structure of increasing responsibility

Activity Using the three characteristics, prove that the following are an organization: 1. Your family 2. A soccer team 3. McDonald’s

MANAGERS A person who is responsible for the work of others Examples—CEO (Chief Executive Officer), supervisor, plant manager Must co-ordinate human resources (people) with material resources (information, raw materials) to produce goods and services A manager’s responsibility is to obtain the highest level of performance for the least amount of inputs

Managerial Levels Upper Management Establishes organizational objectives Monitors external environment and trends Examples: CEO, COO (Chief Operating Officer), CFO (Chief Financial Officer), Vice-President of Marketing, VP of Human Resources

Managerial Levels Middle Management Interpret direction from above In charge or relatively large departments or divisions consisting of several smaller work units Guide lower management Examples: Deans in Universities, Plant Manager, Human Resource Director

Managerial Levels Lower Management Manages non-managerial workers Ensure that their work teams meet performance objectives that are consistent with higher level organizational goals Examples: Department Head, Supervisor, Foreperson, Assistant Manager

Types of Managers Line managers Their work directly contributes to the production of the organization’s basic goods or services Examples: Retail Managers, CEO, Plant Managers Staff managers Work in specialized support areas such as marketing, accounting, human resources, and the legal department to support the efforts of line workers Examples: CFO, Director of Human Resources

Managers vs. Administrators Work in for profit organizations Administrators Work in non-profit organizations Examples: Public Administrator, Principal, Hospital Administrator

Functional vs. General Managers Responsible for a single area such as accounting, engineering, marketing, human resources General Responsible for complex areas that include many functional areas Examples: Department Store Manager, Plant Manager who oversees manufacturing, warehousing, and sales

Complete the following chart: UPPER LINE MANAGER GENERAL MIDDLE STAFF MANAGER Functional MIDDLE LINE MANAGER GENERAL LOWER LINE MANAGER GENERAL MIDDLE STAFF ADMIN. Functional

MANAGERIAL FUNCTIONS Planning The process of setting goals and determining how those goals will be met Organizing The process of arranging people, tasks, responsibilities, and resources Leading The process of inspiring and motivating people to excellence Controlling The process of monitoring achievement and taking corrective action

Managerial Roles Interpersonal Roles Interacting with other people Figurehead Leader Informational Roles Exchanging and processing data Monitor Disseminator Spokesperson

Managerial Roles Decisional Roles Using information to make decisions Entrepreneur Disturbance handler Resource allocator Negotiator

Managerial Skills Technical Skills Specialized skills such as engineering, accounting, marketing, information technology Skills are initially acquired through formal education and are further developed by training and job experience Most important in lower management

Managerial Skills Human Skills An ability to interact with people Important at all management levels

Managerial Skills Conceptual Skills Ability to think critically and analytically Solve problems Most important in upper management