1. Management, Leadership, and Internal Organization
Chapter 8
Management, Leadership, and Internal Organization

2. What is Management?
Management is the process of achieving organizational objectives through people and other resources.

3. Traditionally structured organizations – shaped like a pyramid.
Management Hierarchy
Traditionally structured organizations – shaped like a pyramid.

4. Top Management
Develop long-range strategic plans for the organization.
Inspire executives and employees to achieve their vision for the company’s 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 firm’s 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
Manager’s 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. Skills Needed for Management Success
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9. Managerial Functions Planning Organizing Directing Controlling
Process of 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 organization’s 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.

10. Management Functions
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11. Importance of Planning
There are different types and levels of plans.
Planning can be categorized by scope and breadth.
Some plans are very broad and long range, while others are short range and very narrow.
Planning can be divided into the following categories: strategic, tactical, operational, and contingency

12. Importance of Planning
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.

13. Types of Planning
Strategic planning: the process of determining the primary objectives of an organization and then allocating resources to achieve those objectives.
Tactical planning: involves implementing the activities specified by strategic plans. They guide the current and near-term activities required to implement overall strategies.

14. Types of Planning
Operational planning: creates the detailed standards that guide implementation of tactical plans. It involves choosing specific work targets and assigning employees and teams to carry out plans. Unlike strategic planning, which focuses on the whole organization, operational planning deals with developing and implementing tactics in specific functional areas.
Contingency planning: Planning cannot foresee every possibility. Contingency planning allows businesses to resume operations as quickly and as smoothly as possible after a crisis while openly communicating with the public about what happened.

15. Planning at Different Organizational Levels

16. The Strategic Planning Process
Exhibit 8.1
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17. SWOT Analysis

18. SWOT analysis Conducting an external analysis (OT)
The environmental scanning of specific and general environments
Focuses on identifying opportunities and threats
Conducting an internal analysis (SW)
Assessing organizational resources, capabilities, activities, and culture:
Strengths (core competencies) create value for the customer and strengthen the competitive position of the firm.
Weaknesses (things done poorly or not at all) can place the firm at a competitive disadvantage.

19. 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.

20. Managers as Leaders
Leadership is the ability to direct or inspire people to attain organizational goals.
Involves the use of influence or power.
Three traits are common among many leaders:
Empathy
Self-awareness
Objectivity in dealing with others

21. Autocratic Leadership Democratic Leadership
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.

22. Organizational Structures
Organization: structured grouping of people working together to achieve common goals.
Three key elements:
Human interaction
Goal-directed activities
Structure
Organization structure is the process of blending human and material resources through a formal structure of tasks and authority.

23. Organizational Chart
Organizational charts are used to help employees understand how their work fits within the overall operation of the firm. The organizational chart is a visual representation of the firm’s structure.

24. Departmentalization
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.
Departmentalization is the process of dividing work activities into units within the organization. There are five major ways in which companies departmentalize. Companies choose a structure based on their organization and its goals.

25. Different Forms of Departmentalization
Many companies combine the different types of departmentalization to build their structure.