International contemporay business chapter08

8 r e t p a h C Management, Leadership, and Internal Organization g n i n r a Le Goals Define management and the skills necessary for managerial success Contrast the types of business decisions and list the steps in the decision-making process Explain the role of vision and Define leadership and compare Summarize the benefits of planning and distinguish strategic, tactical, and operational planning Discuss the meaning and importance of corporate culture ethical standards Describe the strategic planning process different styles of leadership Identify forms of departmentalization and types of organization structures What is ? t n e m e Manag Management Management is is the the process process of of achieving achieving organizational organizational objectives objectives through through people people and and other other resources resources Top t n e m Manage • Develop long-range strategic plans for the organization • Inspire executives and employees to achieve their vision for the company’s future Middle t n e m e g Mana • 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 y r o s i v r e Sup t n e m e g a Man • Implement the plans developed by middle managers • Responsible for nonmanager employees • Motivate workers to accomplish daily, weekly, and monthly goals r o f d e d e Skills Ne t n e m e g a Man 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 l a i r e g a M an s n o i t c n u F Planning 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 Evaluating an organization’s performance to determine whether it is accomplishing its objectives 1) Establish performance standards 2) Monitor actual performance 3) Compare actual performance with established standards 4) Take corrective action if required d n a n o i s i Setting A V r o f s d r a d n a t S l a c i h Et T h em • 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 top executives set – High ethical standard can also encourage, motivate, and inspire employees to achieve goals f o e c n a t r Impo 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 s a s r e g Mana s r e k a M Decision • 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 s r e g a n a How M s n o i s i c e Make D s a s r e g Mana 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 p i h s r e d Lea 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 e t a r o p r Co Culture Corporate Culture Organizations system of principles, beliefs, and values Managerial philosophies, communications networks, and workplace environments and practices all influence corporate culture l a n o i t a z Organi s e r u t c u r t S • Organization: structured grouping of people working together to achieve common goals • Three key elements: – Human interaction – Goal-directed activities – Structure l a n o i t a Organiz Chart i t a z i l a t n e m t r a p De on • 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 s m r o F t n Difere of t a z i l a t n e m t r a p e D ion k r o W g n Delegati s t n e m n Assig • Delegation is the act of assigning work activities to subordinates – The responsibility and the necessary authority for completing the 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 Types of n o i t a z i n a Org s e r u t c u r t S 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 f a t S d n a Line s n o i t a z i Organ e e t t i m m Co s n o i t a z i Organ • 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 Matrix s n o i t a z i n Orga • 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: Challenges: • Flexibility in adapting to changes • Integrating skills of many specialists into a coordinated team • Employee frustration and confusion over reporting to two bosses • Focus on major problems or products • Outlet for empoyees’ creativity and initiative x i r t a M e Th s n o i t a z i Organ ... Le Goals Define management and the skills necessary for managerial success Contrast the types of business decisions and list the steps in the decision-making process Explain the role of vision... 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 top executives... different types of customers the organization serves • Functional departmentalization: organized by business functions such as finance, marketing, human resources, and production • Process departmentalization: