Management Management SkillsSkills

Chapter 11Chapter 11

ManagementManagement

• Management is the process of achieving company goals by Management is the process of achieving company goals by effective use of resources through planning, organizing, and effective use of resources through planning, organizing, and controlling.controlling.

Management FunctionsManagement Functions

• What do managers do?What do managers do?

• Decision makers for a company. Decision makers for a company.

• Three major functions for a company.Three major functions for a company.– PlanningPlanning– OrganizingOrganizing– ControllingControlling

PlanningPlanning• Involves deciding what will be done and how it will be Involves deciding what will be done and how it will be

accomplished.accomplished.

• Good management planning at any level is Good management planning at any level is realistic, realistic, comprehensive, and flexiblecomprehensive, and flexible

• What do we mean by this?What do we mean by this?

• Need to create short term and long term plansNeed to create short term and long term plans

• Try not to create plans that are too detailed. It’s important to Try not to create plans that are too detailed. It’s important to leave room for change and input. leave room for change and input.

• Always be open to comments or ideas on improvement.Always be open to comments or ideas on improvement.

OrganizingOrganizing

• Organizing is coordinated effort to reach a company’s Organizing is coordinated effort to reach a company’s planning goals.planning goals.

• Involves assigning responsibility, establishing working Involves assigning responsibility, establishing working relationships, staffing, and directing the work of relationships, staffing, and directing the work of employees.employees.– What kinds of things do all of you do to keep organized?What kinds of things do all of you do to keep organized?

• In large companies managers may have much In large companies managers may have much narrower roles, where as in smaller firms a manager narrower roles, where as in smaller firms a manager has a broader range of duties.has a broader range of duties.

ControllingControlling• Controlling is the process of comparing what you Controlling is the process of comparing what you

planned with actual performance. planned with actual performance.

• A company may create a A company may create a mission statementmission statement before before creating standards. creating standards. – A mission statement describes the ultimate goals of a A mission statement describes the ultimate goals of a

company in a brief paragraph or two. It summarizes why a company in a brief paragraph or two. It summarizes why a company exists.company exists.

• Three basic activities:Three basic activities:– Setting standardsSetting standards– Evaluating performance according to the standardsEvaluating performance according to the standards– Solving any problems revealed by the evaluationSolving any problems revealed by the evaluation

Types of Management StructureTypes of Management Structure

• Businesses are organized in two ways:Businesses are organized in two ways:

• Vertical organizationVertical organization – up and down structure where – up and down structure where managers look up to higher levels of management or managers look up to higher levels of management or down to employees within a single department.down to employees within a single department.

• Horizontal OrganizationHorizontal Organization – involves self-managing – involves self-managing teams that set their own goals and make their own teams that set their own goals and make their own decisions. decisions.

Vertical OrganizationVertical Organization• Top ManagementTop Management – those who make the planning decisions that – those who make the planning decisions that

affect the whole company. Ex: CEO, President, COOaffect the whole company. Ex: CEO, President, COO

• Middle ManagementMiddle Management – implement the decisions of top – implement the decisions of top management. Plan ways that departments can work to reach management. Plan ways that departments can work to reach top management’s goals.top management’s goals.

• Supervisory-Level ManagementSupervisory-Level Management – front-line managers supervise – front-line managers supervise the activities of employees who carry out the tasks determined the activities of employees who carry out the tasks determined by top and middle management. Assign duties and evaluate the by top and middle management. Assign duties and evaluate the work of production or service employees.work of production or service employees.

Horizontal ManagementHorizontal Management

• In the 1980’s and 1990’s corporations were searching for a In the 1980’s and 1990’s corporations were searching for a way downsize staff, while sustaining production.way downsize staff, while sustaining production.

• By reorganizing, companies hoped to create a more creative By reorganizing, companies hoped to create a more creative and productive work environment.and productive work environment.

• Can take years to shift from one model to the other.Can take years to shift from one model to the other.

• While the idea is strong it takes a strong management team to While the idea is strong it takes a strong management team to institute such a dramatic corporate change.institute such a dramatic corporate change.

Components of Horizontal ManagementComponents of Horizontal Management

Self Managing Self Managing TeamsTeams

OrganizationOrganizationbyby

ProcessProcess

CustomerCustomerOrientationOrientation

Self-Managing TeamsSelf-Managing Teams• Basis of the Horizontal StructureBasis of the Horizontal Structure

• Levels of management have been removed and the amount of Levels of management have been removed and the amount of supervisors is decreased.supervisors is decreased.– This is called “This is called “flatteningflattening” the organization” the organization

• One person in team “owner” has responsibility for making sure the One person in team “owner” has responsibility for making sure the team reaches its goals. More like a coach than a boss. team reaches its goals. More like a coach than a boss.

• Encouraging team members to contribute to and take responsibility Encouraging team members to contribute to and take responsibility for the management process is known as for the management process is known as EmpowermentEmpowerment

Organization by ProcessOrganization by Process

• Self-managing teams are organized around particular Self-managing teams are organized around particular processesprocesses– Ex: Developing new products, customer supportEx: Developing new products, customer support

• The difference exists because these teams are made up of The difference exists because these teams are made up of people with different specializations rather than looking to a people with different specializations rather than looking to a separate functional divisionseparate functional division– Ex: The Product Development team might include people from Ex: The Product Development team might include people from

marketing research, design, engineering, and finance. marketing research, design, engineering, and finance.

Customer OrientationCustomer Orientation

• The source of direction is management in vertical The source of direction is management in vertical organizations; in horizontal companies, it’s the customer. organizations; in horizontal companies, it’s the customer.

• Greater access to customer feedbackGreater access to customer feedback

• If a company can achieve a high level of customer If a company can achieve a high level of customer satisfaction they typically see:satisfaction they typically see:– Larger profitsLarger profits– High productivityHigh productivity– Satisfied investorsSatisfied investors