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7/31/2019 Chap 8- Managmt, Leadership
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Management,
Leadership& the internal
Organization
Chapte
r 8
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What is management?
Process of achieving organizationobjectives through people and otherresources
Applied for not-for-profit organization& profit-seeking firms
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ManagementHierarchy
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Top Management Develop detailedplans & procedures
Middle Management Develop long-rangeplans
First-line Management Implement the plansdeveloped by middle
management
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Skills needed formanagerial success
Top Managers
Middle Managers
Lower Level Managers
Technical
skills
Humanskills
Conceptual Skills
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Managerial function
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Planning: process of anticipatingfuture events & conditions &determining courses of action for
achieving organizational objectives
Organizing: blend human andmaterial resources through a formal
structure of tasks and authority
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Directing: guide and motivateemployees to accomplishorganizational objectives. It includes
explaining procedures, issuingorders, seeing mistakes are corrected
Controlling: evaluate the
organizational performance todetermine whether it isaccomplishing the objectives
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e ro e o v s on anethical standards in
business success Vision: perception ofmarketplaceneeds and methods an organizationcan use to satisfy them; helps to
direct the company towardopportunities and differentiating itfrom its competitors.
Ethical standards: encouragesemployees, motivates, and inspiresthem to achieve goals they never
thought possible.
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Types of Planning
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Feedback
Feedback
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Strategic PlanningProcess
A mission statement is a writtenexplanation of an organizationsbusiness intentions and aims
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Assessing your competitive position:process to assess the firms currentposition in the marketplace once a
mission statement has created. Itinvolves an examination of thefactors that may help or hinder the
organization in the future
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Strengths:State of the Art
InformationSystemEconomic ofScalePatent ProtectionSales team
Threats:
Changing buyerTasteEnhancedcompetitionNew government
Weaknesses:
Lack ofManagerialLogisticslimitationsFinancingconstraints
Dated productionfacilities
Opportunities:New technologiesStrategic Allianceswith VendorsNew MarketsExtension ofExisting Products
LEVERAGE
PROBLEMS
CONSTR
AI NT
S
VU
LNE
RABIT
Y
SWOT
Analysis
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DecisionMaking
Process begin when a personrecognize problem or opportunity;
proceed with developing potentialcourses of action, evaluating thealternative, selecting andimplementing one of them, andassessing the outcome of decision
Decisions made by managers havecomplex legal and ethical dimensions
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Programmed decision: involvessimple, common and frequently
occurring problems for whichsolutions have been alreadydetermined; exp: choosing thestarting salary of a new marketingassistant
Non programmed decision:involves a complex and uniqueproblem or opportunity withimportant consequences for theorganization; exp: entering a new
geographical market, acquiring
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Decision Making Process
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Leadership
Ability to direct or inspire people toattain organizational goals
Autocratic leadership is centeredon the boss. Leaders make decisionson their own without consultingemployees. They reach decision,
communicate them to subordinatesand expect prompt implementationof instructions
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Democratic leadership involves
subordinates in making decisions.Centers on employees contributions.Delegate assignments, askemployees for suggestions &
encourage participation
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Free-rein leadership believes inminimal supervision. Leave most
decisions to their subordinates,communicate with employeefrequently as the situation warrants
The most appropriate leadership style
depends on the function of the leader,the subordinates and the situation
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Corporate Culture
Organizations system of values,principles and beliefs
Managerial philosophies,communications networks, andworkplace environments andpractices all influence corporate
culture. It is typically shaped by theleaders
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Organizational Structure
structured grouping of peopleworking together to achieve commongoals. Organizations features three
key elements: human interaction,goal directed activities and structure
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Organizing Process
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Organization Chart
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Departmentalization
Process of diving work activities intounits within the organization. Thisarrangement lets employees
specialize in certain jobs to promoteefficient performance. The five majorforms:
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1. Product departmentalization: thisapproach organizes work unitsbased on the good and services a
company offers.
2. Geographical departmentalization:this form organizes units by
geographical regions within acountry or, for a multinational firm,by region throughout the world.
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3. Customer departmentalization: afirm that offers a variety of goodsand services targeted at differenttypes of customers might structuresitself based on customer
departmentalization.4. Functional departmentalization:
some firms organize work units
according to business functions suchas finance, marketing, humanresources and production.
5. Process departmentalization: some
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Departmentalizationwithin the Org
FunctionalDepartmentaliz
ation
GeographicalDepartmentaliz
ation
CustomerDepartmentaliz
ation
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Delegating work assignments: itsan act of assigning work activities tosubordinates. Managers delegatework to free their own time for
planning and decision making.Subordinates receive responsibility orobligation to perform those tasks
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Span management:number of subordinates amanager can supervise
effectively. Thesubordinates are oftenreferred to as directreports. It varies
considerably dependingon many factors,including the type of work
performed and employees
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Centralization and decentralization:company that emphasizescentralization retains decision-
making at the top of managementhierarchy. A company thatemphasizes decentralization locates
decision making at lower level.
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Types of OrganizationStructures
Line organization: establishes adirect flow of authority from the CEOto subordinates
Line-and-staff organization: combinesthe direct flow of authority of the linedepartments with staff departmentsthat supports the line department
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Committee organizations: a structurethat places authority and
responsibility jointly in the hands of agroup of individual rather than asimple manager
Matrix organizations: or projectmanagement structure. It linksemployees from different parts of the
organization to work together on
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THE
END
CLICK,
ITS.