Transcript Chapter 8 Management, Leadership, and the Internal Organization 8-1 Copyright © 2005 by South-Western, a division of Thomson Learning, Inc.

Chapter 8
Management,
Leadership, and the
Internal Organization
8-1
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What is Management?
 Management—process of achieving
organizational objectives through people
and other resources.
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 The Management Hierarchy
8-3
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Skills Needed for Managerial Success
 Technical skills—ability to understand and
apply 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
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4 Functions of Management
Planning
Organizing
Directing
Controlling
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Establishing the organizations goal’s
and deciding how to achieve them
Blending human and material
resources through a formal structure
of tasks and authority
Guide and motivate employees to
accomplish organizational objectives
Evaluating and regulating ongoing
activities to ensure goals are being
achieved
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Types of Plans:
 Strategic Plans
 Broadest set of plans – primary objectives
 Mission statement
 Tactical Plans
 Smaller scale – used to implement a strategy
 Typically 1-3 year period
 Operational Plans
 Designed to implement tactical plans
 Typically 1 year or less
 Deals with the “how” in accomplishing specific objectives
 Contingency Plans
 Alternative courses of action
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Mission statement—
written explanation of an
organization’s business
intentions and aims
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The Strategic Planning Process
 Assessing Your Competitive Position
Involves an examination of the factors that
may help or hinder the organization in the
future
SWOT analysis—organized method of
assessing a company’s internal strengths
and weaknesses and its external
opportunities and threats
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Decision Making—process of recognizing a problem
or opportunity, evaluating alternative solutions,
selecting and implementing an alternative, and
assessing the results.
Programmed decision—involves simple,
common, and frequently occurring problems for
which solutions have already been determined
Nonprogrammed decision—involves a
complex and unique problem or opportunity
with important consequences for the
organization
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Managers as Leaders
 Leadership Styles
 Autocratic leadership—boss makes decisions on
their own without consulting employees
 Democratic leadership—involves subordinates in
making decisions
 Free-reign leadership—leader believes in
minimal supervision, leaving most decisions to
subordinates
Empowerment—practice in which managers lead employees by
sharing power, responsibility, and decision making with them
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Which Leadership Style is Best?
Depends on function of the leader, subordinates,
and situation.
Some leaders can’t work well with high
participation of subordinates
Some employees lack the ability or
desire to assume responsibility
Participative decision making may not be
possible when there’s time pressure
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Organization chart—visual representation of a
firm’s structure that illustrates job positions
and functions
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Organizational Structure
 Departmentalization—process of dividing
work activities into units within the
organization.
 Major forms of departmentalization subdivide
work by:
Product
Geographic Area
Customer
Function
Process
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 Different Forms of Departmentalization with
One Company
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Delegation—act of assigning work activities to
subordinates.
Give your employee:
Responsibility & Authority
Hope for Accountability
Span of Management
(Span of Control)—number of
subordinates a manager can supervise
effectively.
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 Decision Making
Centralization—retains decision-making
at the top of the management hierarchy
Decentralization—locates decisionmaking at lower levels
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Organizational Structure
 Types of Organizational Structures
Line Organization
Establishes a direct flow of authority from
the chief executive to subordinates
Chain of command—set of
relationships that indicates who directs
which activities and who reports to
whom
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Organizational Structure
 Types of Organizational Structures
Line-and-Staff Organizations—
combines the direct flow of authority of a
line organization with staff departments
that serve, advise, and support the line
departments
Line manager
Staff manager
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 Line-and-Staff Organization
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Organizational Structure
 Types of Organizational Structures
Committee organization—structure that
places authority and responsibility jointly in
the hands of a group of individuals rather
than a single manager
Matrix structure—links employees from
different parts of the organization to work
together on specific projects
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 Matrix Organization
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 Comparing the Four Organization Structures
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