BUS 110 Module 3 Ch. 7 Ch. 8 My

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Learning Objective 5: Review the five stages of team development, and explain why conflict can arise in team settings. cohesiveness, norms

Summary: Several models have been proposed to describe the stages of team development; the well-known model defined by researcher Bruce Tuckman identifies the stages as forming, storming, norming, performing, and adjourning. In the forming stage, team members become acquainted with each other and with the group's purpose. In the storming stage, conflict often arises as coalitions and power struggles develop. In the norming stage, conflicts are resolved and harmony develops. In the performing stage, members focus on achieving the team's goals. In the adjourning stage, the team dissolves on completion of its task. Conflict can arise from competition for scarce resources; confusion over task responsibility; poor communication and misinformation; differences in values, attitudes, and personalities; power struggles; and incompatible goals.

Designing an Effective Organization Structure - To design the best structure for their organization, managers need to identify the organization's core competencies, clarify job responsibilities, define the chain of command, and organize the workforce in a way that maximizes effectiveness and efficiency

A company's **organization structure** has a dramatic influence on the way employees and managers make decisions, communicate, and accomplish important tasks. - a framework that enables managers to divide responsibilities ensure employee accountability, and distribute decision-making authority. This structure helps the company achieve its goals by providing a framework for managers to divide responsibilities, effectively distribute the authority to make decisions, coordinate and control the organization's work, and hold employees accountable for their work. In contrast, a poorly designed structure can create enormous waste, confusion, and frustration for employees, suppliers, and customers.

2. When developing goals and objectives, the goals and objectives should be SMART, which stands for __________. A. specific, meaningful, attainable, realistic, and timely B. strengths, measurable, attainable, relevant, and threats C. specific, measurable, attainable, relevant, and time-limited D. simple, meaningful, attainable, realistic, and timely E. simple, measurable, attainable, relevant, and time-limited

specific, measurable, attainable, relevant, and time-limited

The Control Cycle

A good way to understand managerial control is to envision the **control cycle, a four-step process** of (1) establishing performance standards based on the strategic plan, (2) measuring performance, (3) comparing performance to standards, and (4) responding as needed specific steps taken in any situation depend on industry, the company, the functional area w/in the company, the manager's leadership style some cases control cycle is a formal process w/ explicit measurements, reports, and other tools - others control is subtle

cohesiveness

a measure of how committed team members are to their team's goals

objective

a specific, short-range target or aim

7.2 The Planning Function

managers - engage in planning when they develop strategies, establish goals and objectives for the organization, translate those strategies & goals into action plans.

Fostering Teamwork

Two particularly important issues are team development and team conflict.

norms

informed standards of conduct that guide teams behavior

23. As a manager, William has a monthly developmental meeting with his boss, Tasha. In a recent meeting, Tasha suggested that William has been neglecting his employees and needs to pay more attention to providing leadership. According to Tasha, William must strengthen which type of role? A. Decisional B. Informational C. Interpersonal Your answer is correct. D. Analytical E. Controlling

interpersonal

11. Which of the following allows employees to make decisions that relate to their particular phases of work? A. Laissez-faire leadership Your answer is correct. B. Coaching C. Empathy D. Corporate cultures E. Mentoring

Laissez-faire leadership

Learning Objective 1: Explain the importance of management, and identify the three vital management roles. management, managerial roles

SUMMARY: Although managers usually don't do the hands-on work in an organization, they create the environment and provide the resources that give employees the opportunities to excel in their work. Managerial responsibilities include creating the organizational framework, fostering a positive culture, setting expectations, and providing resources. The three vital managerial roles are interpersonal (interacting with others), informational (receiving and sharing information), and decisional (making decisions).

goal

a broad, long-range target or aim

agile organization

a company whose structure, policies, and capabilities allow employees to respond quickly to customer needs and changes in the business environment. In the past, organizations were usually designed around management's desire to control workers, with everything set up in a hierarchy. Today, however, the goal of many companies is an **agile organization** that allows employees to respond quickly to customer needs and changes in the business environment and to bring the best mix of talents and resources to every challenge.

**Self-Managed Teams**

a team in which members are responsible for an entire process or operation As the name implies, a self-managed team manages its own activities and requires minimal supervision. - typically - teams control the pace of work and determination of work assignments - select own team members - represent significant change for organizations/managers accustomed to rigid command-and-control structures. *potential advantages: - lower costs - faster decision making - greater flexibility and innovation - improved quality (stemming from increased pride of ownership an independent team feels in its work

**Functional Teams**

a team whose members come from a single functional department and that is based on the organization's vertical structure **or command team** organized along the lines of the organization's vertical structure and thus may be referred to as a **vertical team** - composed of managers and employees within a single functional department, - the structure of a vertical team typically follows the formal chain of command. - some cases, the team may include several levels of the organizational hierarchy within the same functional department

management pyramid

an organizational structure divided into top, middle, and first-line managers

13. ______ skills are the ability to define problems and opportunities and select the best course of action. A. Decision-making Your answer is correct. B. Administrative C. Technical D. Interpersonal E. Conceptual

decision-making

2. Of the following terms, which offers a graphical representation of a company's lines of communication and illustrates a formal strategy for achieving objectives? A. Cohesiveness B. Span of management C. Organization chart Your answer is correct. D. Departmentalization E. Groupthink

organization chart

management

the process of planning, organizing, leading, and controlling to meet organizational goals. the interrrelated tasks of planning, organizing, leading, and controlling in pursuit of organizational goals more than 1/3 people who take on new managerial positions fail w/in first 18 months

24. Jessica works for ABC Shoes. At ABC, Jessica is responsible for establishing structure, strategic goals, and guiding her employees. She is also responsible for making long-range plans and establishing major policies. She often works long hours and is frequently faced with making difficult choices in order to better ABC. Jessica is a __________. A. mentor B. middle manager C. first-line manager D. coach E. top manager

top manager

9. In a ______, employees are categorized based on comparable skill sets, utilization of resources, and capabilities. A. task force B. functional structure Your answer is correct. C. network structure D. committee E. divisional structure

functional structure

Learning Objective 6: Identify and explain four important types of managerial skills. interpersonal skills, technical skills, administrative skills, conceptual skills, decision-making skills

Summary: Interpersonal skills are the abilities to communicate with, motivate, and lead others. Technical skills involve the "mechanics" of a particular job, including the administrative skills of project management. Conceptual skills are the abilities to visualize organizations, systems, markets, and solutions—even when they may not exist yet. Decision-making skills include defining problems and opportunities and selecting the best course of action to take in each case.

Managing an Unstructured Organization

**Unstructured organizations use digital technologies to rapidly form and reform work patterns that bear almost resemblance to classic structures Potential challenges of unstructured organizations * Complexity and control issues * Uncertainty * Loss of meaning and connection * Diminished loyalty * Career development * Management succession * Accountability and liability

Designing an Effective Organization Structure

An Organization Chart provides a visible representation of how employees and tasks are grouped Identifying core competencies - What business functions should they focus on and what functions should they outsource Identifying job responsibilities - Work specialization - division of labor * Defining the chain of command - Span of management - The number of people a manager directly supervises * Centralization vs. decentralization - Decentralization pushes decision-making authority down to lower levels

Types of Teams

The type, structure, and composition of individual teams within an organization depend on the organization's strategic goals and the objective for forming the team. Six common forms of teams are problem-solving teams, self-managed teams, functional teams, cross-functional teams, virtual teams, and social networks and virtual communities. Such classifications are not exclusive, of course. A problem-solving team may also be self-managed and cross-functional.

**task force**

a team of people from several departments who are temporarily brought together to address a specific issue

**problem-solving team**

a team that meets to find ways of improving quality, efficiency, and the work environment is assembled to find ways of improving quality, efficiency, or other performance measures. In some cases, a team attacks a single, specific problem and disbands after presenting or implementing the solution. In other cases, the team continues to meet over time, evaluating trends and fixing new problems as they crop up.

strategic planning process

consists of six interrelated steps: * defining the organization's mission, vision, and values; * performing a SWOT analysis * developing forecasts * analyzing the competition * establishing goals and objectives * developing action plans

**Interpersonal skills**

skills required to understand other people and to interact effectively with them **Communication is the most important and pervasive interpersonal skill that managers use**. Effective communication not only increases a manager's and an organization's productivity but also shapes the impressions made on colleagues, employees, supervisors, investors, and customers. In your role as a manager, communication allows you to perceive the needs of these stakeholders (your first step toward satisfying them), and it helps you respond to those needs as the workforce becomes more diverse—and as more companies recognize the value of embracing diversity in their workforces—managers need to adjust their interactions with others, communicating in a way that considers the different needs, backgrounds, experiences, and expectations of their workforces.

Organizing in Teams

What is a team? * Two or more people who work together to achieve a shared goal Types of teams * Problem solving teams * Self managed teams * Functional teams - command team * Cross-functional teams - horizontal team * Virtual teams - different geographical locations * Social networks and virtual communities

Characteristics of effective teams

* 5 to 12 members * Includes members who perform task-specialist roles and socioemotional roles * Clear sense of purpose * Open and honest communication * Empathy and mutual understanding * Creative thinking * Accountability * Focus * Decision by consensus

Ensuring Team Productivity

Advantages of working in teams * Higher quality decisions * Increased diversity of views * Increased commitment to solutions and changes * Lower levels of stress and destructive internal competition * Improved flexibility and responsiveness Disadvantages of working in teams * Inefficiency * Groupthink * Diminished individual motivation * Structural disruption * Excessive workloads

The Controlling Function

**The process of keeping the company's activities on track toward previously established goals** * The control cycle - Establish performance standards (benchmarking) - Measure performance against standards - Respond as needed * Crisis Management: maintaining control in extraordinary circumstances - Contingency plans

Learning Objective 5: Describe the controlling function, and explain the four steps in the control cycle. controlling, standards, benchmarking, quality, balanced scorecard, crisis management

SUMMARY: The controlling function consists of the activities and decisions involved in keeping a company's activities on track toward previously established goals. The four steps in the control cycle are establishing performance standards based on the strategic plan, measuring performance, comparing performance to standards, and responding as needed.

groupthink

uniformity of thought that occurs when peer pressures cause individual team members to withhold contrary or unpopular opinions Groupthink occurs when these peer pressures cause individual team members to withhold contrary or unpopular opinions. The result can be decisions that are worse than those the team members might have made individually.

Causes of Team Conflict

First, individuals may feel they are in competition for scarce or declining resources, such as money, information, and supplies. Second, team members may disagree over responsibilities. Third, poor communication can lead to misunderstandings and misperceptions. In addition, withholding information can undermine trust among members. Fourth, basic differences in values, attitudes, and personalities may lead to clashes. Fifth, power struggles may result when one party questions the authority of another or when people or teams with limited authority attempt to increase their power or exert more influence. Sixth, conflicts can arise because individual team members are pursuing different goals.

18. Which of the following is a disadvantage to working in a team? A. Increased commitment to solutions B. Groupthink Your answer is correct. C. Lower levels of stress and destructive internal competition D. Increased diversity of views E. Improved flexibility and responsiveness

Groupthink

4. ___________ represent the capability and knowledge needed to implement the procedures of a specific occupation. A. Administrative skills B. Interpersonal skills C. Decision-making skills D. Technical skills Your answer is correct. E. Conceptual skills

technical skills

8. MaryAnn has been put in charge of a new division at her company. She is working on acquiring all the equipment, tools, and facilities necessary to kick-start that division. MaryAnn is focusing on which of the following? A. Leading B. Organizing Your answer is correct. C. Planning D. Crisis management E. Controlling

organizing

Essential Management Skill

* Interpersonal skills - Communication skills are most important * Technical skills - Knowledge and ability to perform the tasks required in a particular job - Includes administrative skills * Conceptual skills - Ability to visualize how the pieces fit together * Decision-making skills - Recognize and define the problem or opportunity - Identify and develop options - Analyze the options - Select the best option - Implement the decision - Monitor the results

planning

establishing objectives and goals for an organization and determining the best ways to accomplish them

4. Assessment of an organization's strengths and weaknesses relative to the opportunities and threats it faces is included in which of the strategic planning processes? A. Defining the organization's mission, vision, and values B. Analyzing the competition C. Performing a SWOT analysis D. Developing action plans E. Developing forecasts

performing a SWOT analysis

Decision Point: SWOT Analysis: Classifying Women's Discretionary Spending To get the senior management team thinking in the right direction in terms of the SWOT analysis, you continue your presentation with some examples. You hand out some data from a market research study that suggests that discretionary spending by women over the age of 45 (the company's target market) is 2.5 times higher than that of the average U.S. consumer. You ask them how they would characterize this information in terms of a SWOT analysis. What would be their correct response?

You chose opportunity. That was the best choice. This is an external factor (outside the control of the company), and it is favorable for the company, so it would be considered an opportunity.

3. ________ focuses on establishing strategies and objectives for a company and proposing the best ways to achieve them. A. Coaching B. Controlling C. Organizing D. Leading E. Planning

planning

The Controlling Function Learning Objective 5 Describe the controlling function, and explain the four steps in the control cycle.

**controlling** - the process of measuring progress against goals and objectives and correcting deviations if results are not as expected. **controlling** is the management function of keeping a company's activities on track toward previously established goals. Nature of control varies widely - directly intervening in a process to modify policies or systems in a way that enables employees to reach their objectives.

Organizing the Workforce

Functional structures * Groups employees according to their skills and job requirements - Examples include Accounting, Engineering, R & D, etc. Divisional structures * Groups employees into business units - Examples include Product Divisions, Customer Divisions, Geographical Divisions Matrix structures * Employees from functional departments form teams - Often requires reporting to two bosses Network structures (virtual organization) * Connects a variety of partners and suppliers that perform selected tasks for headquarters organization

Ch. 8 Organization and Teamwork

The decisions about how to organize all the people involved in a business's operations are some of the most important decisions leaders have to make. This chapter discusses the most key issues to consider in designing an organization structure, introduces you to the most common ways companies structure themselves, and explores the important matter of teamwork. It concludes with a look at the unstructured organization, which may be the structure of the future for many businesses.

Decision Point: The Organization Chart You ask Janeen for a copy of the current organization chart, and she confesses that they don't have one. "Let me explain," says Janeen. "I started this business about 8 years ago as a day spa. We offered facials, therapeutic massages, pedicures, and manicures, so I had some aestheticians, massage therapists, and nail technicians, as well as a receptionist." While she is talking, she is putting up sticky notes on an easel in her office. You look at what she has posted on the easel. How would this organization be best described? Select an option from the choices below and click Submit. Flat organizational structure with a wide span of control Tall organizational structure with a narrow span of control Flat organizational structure with a narrow span of control Tall organizational structure with a wide span of contro

You chose a flat organizational structure with a narrow span of control. That was an OK choice. The spa does have a flat organizational structure, because there is only one layer of management in the company. However, all employees report directly to Janeen.

**committee**

a team that may become a permanent part of the organization and is designed to deal w/ regularly recurring tasks

17. Which of the following forms a clear line of authority from the top of the organization down and ensures members of an organization are aware of to whom they are to report and what their daily tasks entail? A. Line-and-staff organization B. Span of management C. Network structure D. Virtual structure E. Line organization

line organization

7.1 The Roles of Management are Explain the importance of management and identify the three vital management roles.

management is one of the most vital professions in the contemporary economy managers who effectively & ethically guide their companies contribute greatly to our standard of living and our economic security managers who fail, through poor planning, misguided decisions, or questionable ethics, can create havoc that extends far beyond the walls of their own companies. **Management is one of the most important functions in society, not just within the sphere of business**

12. When developing goals and objectives, the goals and objectives should be SMART, which stands for __________. A. simple, meaningful, attainable, realistic, and timely B. specific, meaningful, attainable, realistic, and timely C. simple, measurable, attainable, relevant, and time-limited D. specific, measurable, attainable, relevant, and time-limited Your answer is correct. E. strengths, measurable, attainable, relevant, and threats

specific, measureable, attainable, relevant, and tim-limited

16. Alyssa is an employee at Maddison, Inc. She works with a group of employees who are responsible for analyzing and determining various methods to enhance their company's quality, efficiency, and performance evaluations. Alyssa is part of a _____________.

problem-solving team

unstructured organization

an organization that doesn't have a conventional structure but instead resembles talent as needed from the open market; the virtual and networked organizational concepts taken to the extreme

Identifying Core Competencies

before decide how to organize, companies need to identify which business functions should focus on themselves, which should **outsource** **core competencies** are those activities at which a company excels and that give it the potential to create competitive advantages.** - activities that a company considers central and vital to its business

19. ___________ drives decision-making power downward to the lower sections of a company in order to influence increased receptiveness within in the company. A. Span of management B. Work specialization C. Departmentalization D. Centralization E. Decentralization

decentralization

20. At ABC Manufacturing, Susan is directly responsible for ensuring that essential work is accomplished according to performance criteria. Susan can be described as a _____ at ABC. A. middle manager B. top manager C. first-line manager Your answer is correct. D. coach E. corporate officer

first-line manager

Strengths high-quality clothing reputable customer service Opportunity possible expansion of product line to women's wear for younger customers strong website with good functionality Weaknesses Several stores need extensive remodeling due to age Threat Increasing online retail and e-commerce purchases by target market weak economy changing customer tastes high employee turnover in several stores increasing price pressure from suppliers

You chose internal Strengths and Weaknesses as well as external Opportunities and Threats. That was the best choice. A SWOT analysis assesses an organization's internal strengths and weaknesses (the S and W) and environmental (or external) opportunities and threats (the O and T).

SWOT Analysis

Internal: Strengths - respected brand, financial resources, strong management, design patents Weaknesses-aging facilities, talent shortage, narrow customer base Positive/Helpful - Strengths/Opportunities Negative/Harmful - Weaknesses, Threats External: Opportunities - new products, attractive merger candidates, new markets in Asia Threats - liability lawsuits, pending regulations, shrinking demand for existing products

Team Member Roles

Task-Specialist Role - focuses on task accomplishment over human needs - important role - but if adopted by everyone, team's social needs won't be met Dual Role - focuses on both task accomplishment and people needs - often important but not essential if team is balanced with task and socioemotional roles Nonparticipator - contributes little to either rask or people needs of team - a distraction at best and counterproductive "dead weight" at worst Socioemotional Role - focuses on people needs rather than getting things done - important contribution, but if adopted by too many members, team won't get its work done

Decision Point: Getting to Know the Company Your first step as a turnaround consultant is to get more familiar with the company. What should you review first in order to understand more about the company?

You chose the mission statement. That was the best choice. The mission statement is a great place to start because an organization's mission statement explains how it will achieve its purpose in the environment in which it conducts business.

7. Of the following terms, which offers a graphical representation of a company's lines of communication and illustrates a formal strategy for achieving objectives? A. Groupthink B. Departmentalization C. Span of management D. Cohesiveness E. Organization chart

organization chart

Strategic Plans

plans that establish the actions and the resource allocation required to accomplish strategic goals, they're usually defined for periods of two to five years and developed by top managers

The Roles of Management

* Interpersonal roles - Providing leadership * Informational roles - Collecting and analyzing data * Decisional roles

What Is a Team?

A **team** is a unit of two or more people who work together to achieve a shared goal. a unit of two or more people who share a mission and collective responsibility as they work together to achieve a goal **the performance of a work group is merely the summation of all group members' individual contributions** In contrast, the members of a team have a shared mission and are collectively responsible for their work. By coordinating their individual efforts, the members of a successful team accomplish more together than they could individually, a result known as **synergy** Although a team's goals may be set by either the team itself or someone in the formal chain of command, it is the job of the **team leader** to make sure the team stays on track to achieve those goals.

organizing - second major function of managers

the process of arranging resources to carry out the organization's plans to organize effectively, managers must think through all the activities that employees perform, as well as all the facilities and equipment employees need in order to complete those activities. managers give people the ability to work toward company goals by determining who will have the authority to make decisions, to perform or supervise activities, and to distribute resources.

management

the process of planning, organizing, leading, and controlling to meet organizational goals

Decision Point: SWOT Analysis: Classifying Changes in Income and Spending To get the management team thinking in the right direction in terms of the SWOT analysis, you continue your presentation with some examples. You display a chart from the Bureau of Economic Analysis that shows that real disposable personal income and consumer spending have decreased each month for the past four months. You ask them how they would characterize this information in terms of a SWOT analysis. What would be their correct response? Select an option from the choices below and click Submit. Strength Threat Opportunity Weakness

You chose threat. That was the best choice. This is an external factor (outside the control of the company), and it is not favorable for the company, so it would be considered a threat.

9. The number of employees a manager directly oversees is defined as ________. A. the span of management B. groupthink C. the chain of command D. cohesiveness E. a task force

the span of management

10. Alyssa is an employee at Maddison, Inc. She works with a group of employees who are responsible for analyzing and determining various methods to enhance their company's quality, efficiency, and performance evaluations. Alyssa is part of a _____________. A. cross-functional team B. functional team C. problem-solving team D. self-managed team E. task force

problem-solving team

The Organizing Function

**The process of arranging resources to carry out an organization's plans** * Top managers - Overall responsibility for the organization (CEO, CFO, COO, etc.) - Make all *long range* plans * Middle Managers - Translate strategic goals and objectives into actions that allow the company to meet those targets * First line managers - Oversee the work of non-managerial employees - Put into action the plans developed at higher levels

Learning Objective 4: Describe the leading function, leadership style, and organizational culture. leading, autocratic leaders, democratic leaders, participative management, laissez-faire leaders, employee empowerment, coaching, mentoring, organizational culture

SUMMARY: Leading is the art and science of influencing and motivating people to work toward common goals. Leaders can exhibit a range of styles in what they choose to focus on (strategic versus operational matters) and how they make things happen (forcing versus enabling). Three specific leadership styles are autocratic, democratic, and laissez-faire. Organizational culture is the set of underlying values, norms, and practices shared by members of an organization.

Learning Objective 2: Describe the planning function, and outline the strategic planning process. planning, strategic plans, mission statement, vision statement, values statement, goal, objective

SUMMARY: Planning is the process of developing strategies, establishing goals and objectives for the organization, and translating those strategies and goals into action plans. Plans vary in their time frame and scope, from high-level, long-range strategic plans to lower-level, short-term tactical and operational plans. The strategic planning process consists of six interrelated steps: defining the organization's mission, vision, and values; performing a SWOT analysis; developing forecasts; analyzing the competition; establishing goals and objectives; and developing action plans.

Learning Objective 4: Highlight the advantages and disadvantages of working in teams, and list the characteristics of effective teams. groupthink

SUMMARY: Teamwork has the potential to produce higher-quality decisions, increase commitment to solutions and changes, lower stress and destructive internal competition, and improve flexibility and responsiveness. The potential disadvantages include inefficiency, groupthink, diminished individual motivation, structural disruption, and excessive workloads. Effective teams have a clear sense of purpose, communicate openly and honestly, build a sense of fairness in decision making, think creatively, maintain accountability, stay focused on key issues, and emphasize consensus (while balancing the need for quick decision making).

6. __________ drives decision-making power downward to the lower sections of a company in order to influence increased receptiveness within in the company. A. Departmentalization B. Work specialization C. Centralization D. Decentralization E. Span of management

decentralization

The Management Pyramid - Typical corporate hierarchy

top, middle, bottom Top managers - CEO, CTO, CFO, CIO, vice president Middle Managers - Controller, manager, director First-line managers - supervisor, department head

Characteristics of Effective Teams

**Make Effective Teamwork A Top Management Priority** * Recognize and reward group performance where appropriate * Provide ample training opportunities for employees to develop team skills **Select Team Members Wisely** *Involve key stakeholders and decision makers * Limit team size to the minimum number of people needed to achieve team goals * Select members with a diversity of views * Select creative thinkers **Build A Sense Of Fairness In Decision Making** * Encourage debate and disagreement without fear of reprisal * Allow members to communicate openly and honestly * Consider all proposals * Build consensus by allowing team members to examine, compare, and reconcile differences—but don't let a desire for 100 percent consensus bog the team down * Avoid quick votes * Keep everyone informed * Present all the facts **Manage Conflict Constructively** * Share leadership * Encourage equal participation * Discuss disagreements openly and calmly * Focus on the issues, not the people * Don't let minor disagreements boil over into major conflicts **Stay On Track** * Make sure everyone understands the team's purpose * Communicate what is expected of team members * Stay focused on the core assignment * Develop and adhere to a schedule * Develop rules and follow norms

Potential Benefits of Unstructured Organizations

**Unstructured organization** promises a number of **benefits for firms of all sizes**, from entrepreneurs who apply the concept to their entire operations to larger firms that use it for specific parts of the company or individual projects: **Increased agility**virtual organizations can be assembled, reconfigured as needed, and disassembled much faster than a conventional employee-based organization can be created, changed, or dismantled. **Lower fixed costs and more flexible capacity management**. Hiring employees to build organizational capacity increases a company's fixed costs, those costs that are incurred regardless of production or sales volumes. With the unstructured approach, companies have much more flexibility in adjusting their expense levels to match revenue levels. **Access to otherwise unreachable talent**. "Talent markets" such as TopCoder give many more companies access to highly developed and often hyperspecialized talents. Companies that might never be able to attract or afford top experts in a field can essentially rent them project by project instead. **Benefits of competition**. **For workers, the unstructured model also offers several potential benefits:** **Performance-based evaluation**Workers tend to be evaluated almost entirely on measurable performance, project by project **Freedom and flexibility**. The flip side of agility for companies is extreme flexibility for workers, particularly after they establish themselves in a field. **Access to jobs that might be otherwise unattainable**. For people geographically removed from major employment centers, finding decent employment can be a serious challenge.

Coaching and Mentoring

**coaching** - helping employees reach their highest potential by meeting with them, discussing problems that hinder their ability to work effectively, and offering suggestions and encouragement to overcome these problems. **Coaching** involves taking the time to meet with employees, discussing any problems that may hinder their ability to work effectively, and offering suggestions and encouragement to help them find their own solutions to work-related challenges. (Note that the term executive coaching usually refers to hiring an outside management expert to help senior managers.) **mentoring** - a process in which experienced managers guide less-experienced colleagues in nuances of office politics, serving as role models for appropriate business behavior and helping to negotiate the corporate structure * Similar to coaching but based on long-term relationships between senior and junior members of an organization. * Mentor usually experienced manager or employee who can help guide other managers/employees through corporate maze. * Mentors have deep knowledge of the business/can explain office politics, serve as role models for appropriate business behavior, provide valuable advice how to succeed w/in organization. * Mentoring programs = help newly promoted managers make transition to leadership roles & help women & minorities prepare for advancement.

Crisis Management: Maintaining Control in Extraordinary Circumstances

**crisis management** - procedures and systems for minimizing the harm that might result from some unusually threatening situations. involves the decisions and actions needed to keep a company functioning smoothly and to tend to stakeholder needs during and after an emergency successful crisis management requires clear thinking and quick action while a crisis is unfolding, but smart companies don't wait until a crisis hits. **crisis management** plan needs to contain both **contingency plans** to help managers make important decisions in a limited time frame and **communication plans** to reach affected parties quickly and forestall rumors and false information. should clearly specify which people authorized to speak for company, provide contact information for key executives, include list of news outlets/social media tools used to disseminate information. in today's media-saturated environment, companies need begin communicating w/in minutes after crisis hits, reach those who need information, avoid appearance of stonewalling or confusion

Network Structures

**network structure** a structure in which individual companies are connected electronically to perform selected tasks for a small headquarters organization A **network structure** stretches beyond the boundaries of a company to connect a variety of partners and suppliers that perform selected tasks for a headquarters organization. Also called a **virtual organization**, a network organization can outsource engineering, marketing, research, accounting, production, distribution, or other functions. The design of a network structure stems from decisions about core competencies, with executives deciding which functions to focus on internally and which to outsource. The network structure presents an intriguing blend of benefits and risks. A virtual structure can lower costs and increase flexibility, allowing a company to react more quickly to market demands. It can also boost competitiveness by taking advantage of specific skills and technologies available in other companies. On the other hand, relying too heavily on outsiders can render the company vulnerable to events beyond its control, such as a key supplier going out of business, offering the same goods and services to its competitors, or going into direct competition with the company. Moreover, outsourcing too many fundamental tasks, such as product design, can leave a company without any real competitive distinctions to speak of

Building a Positive Organizational Culture

**organizational culture** (sometimes called corporate culture) a set of shared values and norms that support the management system and that guide management and employee behavior - set of underlying values, norms, and practices shared by members of an organization. Culture can be negative or positive force in an organization, and managers set the tone by establishing expectations, defining rules and policies that shape behavior, and acting as role models. Creating Ideal Culture in your company (You can't create a culture directly, but you can establish the behaviors and values that in turn do create a culture.) vision company values people community communication employee performance Positive cultures create an environment that encourages employees to make smart decisions for the good of the company and its customers. companies w/ legendary corporate cultures Wegmans Nordstrom Southwest Airlines employees routinely go extra mile to make sure customers treated well dysfunctional cultures can lead employees make decisions bad for customers and bad for company

Measuring Performance and Responding as Needed

**second step of control cycle** managers assess performance using both **quantitative (specific, numerical)** and **qualitative (subjective)** performance measures many companies use **balanced scorecard** a method of monitoring the performance from four perspectives: finances, operations, customer relationships, and the growth and development of employees and intellectual property. **third step** managers compare performance w/ the established standards. If level of performance falls short, next step is usually to take corrective action to improve performance. some cases managers might decide level of performance originally hoped for is not realistic

Solutions to Team Conflict

A strong, healthy team is more likely to view a conflict as simply another challenge to overcome—and it can emerge from the conflict even stronger than before. In contrast, a generally dysfunctional team can disintegrate even further when faced with a new source of conflict. The following seven measures can help team members successfully resolve conflict: **Proactive attention**. Deal with minor conflict before it becomes major conflict. **Communication**. Get those directly involved in a conflict to participate in resolving it. **Openness**. Get feelings out in the open before dealing with the main issues. **Research**. Seek factual reasons for a problem before seeking solutions. **Flexibility**. Don't let anyone lock into a position before considering other solutions. **Fair play**. Insist on fair outcomes and don't let anyone avoid a fair solution by hiding behind the rules. **Alliance** Get opponents to fight together against an "outside force" instead of against each other. Team members and team leaders can also take several steps to prevent conflicts. First, by establishing clear goals that require the efforts of every member, the team reduces the chance that members will battle over their objectives or roles. Second, by developing well-defined tasks for each member, the team leader ensures that all parties are aware of their responsibilities and the limits of their authority. Finally, by facilitating open communication, the team leader can ensure that all members understand their own tasks and objectives as well as those of their teammates. Communication builds respect and tolerance, and it provides a forum for bringing misunderstandings into the open before they turn into full-blown conflicts.

Advantages and Disadvantages of Working in Teams

A well-run team can provide a number of **advantages**: 1. **Higher-quality decisions** - diverse experiences/insights 2. **Increased diversity of views**.- variety perspectives 3. **Increased commitment to solutions and changes** - feel active role in decision-making likely to support decision. encourage others to accept it 4. **Lower levels of stress and destructive internal competition** - work toward common goal not competing for individual recognition, focus on common good 5.**Improved flexibility and responsiveness**.- don't have same degree of permanence as formal depts. teams easier to reformulate to respond to changing business needs teams fill up people's social and emotional needs to belong to a group, reduce employee boredom, increase feelings of dignity and self-worth, reduce stress and tension among workers **disadvantages** - potential disadvantages esp. if poorly structured or poorly managed' 1. **Inefficiency** - spending more time than necessary on their decisions and activities or simply losing sight of the team's ultimate goal. Potential sources of inefficiency include internal politics, too much emphasis on consensus, and excessive socializing among team members. 2. **Groupthink** - Like all social structures, business teams can generate tremendous pressures to conform with accepted norms of behavior. 3. **Diminished individual motivation** - Balancing the need for group harmony with individual motivation is a constant issue with teams. Without the promise of individual recognition and reward, high-performance individuals may feel less incentive to keep working at high levels. 4. **Structural disruption** - Teams can become so influential within an organization that they compete with the formal chain of command, in effect superimposing a matrix on the existing structure. 5. **Excessive workloads** - The time and energy required to work on teams isn't free, and when team responsibilities are layered on top of individuals' regular job responsibilities, the result can be overload.

Organizing in Teams Learning Objective 3 Explain how a team differs from a group, and describe the six most common forms of teams.

Although the vertical chain of command is a tried-and-true method of organizing for business, it is **limited by the fact that decision-making authority is often located high up the management hierarchy while real-world feedback from customers is usually located at or near the bottom** Companies that organize vertically may become slow to react to change, and high-level managers may overlook many great ideas for improvement that originate in the lower levels of the organization. In addition, many business tasks and challenges demand the expertise of people who work in many parts of the company, isolated by the formal chain of command. To combat these issues, organizations can involve employees from all levels and functions in the decision-making process, using a variety of team formats in day-to-day operations.

Potential Challenges of Unstructured Organizations

For all its benefits, the unstructured approach presents several potential drawbacks, some of them considerable **Complexity and control issues**. Unstructured organizations can be even more complex than matrix organizations (see here) because workers not only have multiple bosses but report to multiple bosses in multiple companies. In addition, even though companies can in effect hire and fire independent contractors more easily, they have less control over this talent than they have over permanent employees. **Uncertainty**. Without full-time staff at the ready, companies won't always know if they can get the talent they need for upcoming projects. Conversely, workers won't always know if they'll have a job from one project to the next. **Loss of meaning and connection**.Companies also provide a social structure that is as close as family for some employees the opportunity to help an organization succeed over the long haul, to work with others for a greater purpose, is an important motivator and provides a sense of pride for many employees. **Diminished loyalty**. The bond that develops between employers and employees over time creates a sense of loyalty that can carry both parties through hard times. Employers often make accommodations for employees going through tough personal circumstances **Career development**. Conventional organizations do much more than just put resources in place to tackle one project after another. They invest in employees over months or years, giving them time and opportunities to develop deep knowledge and skills, with the idea that the investment will pay off in the long term. However, independent contractors are responsible for developing themselves **Management succession**. As companies develop their employees, they also groom future managers and executives who understand both the company internally and its multiple external environments. Without these development channels in place, companies could be hard pressed to replace upper managers when the time comes. **Accountability and liability**. Conventional structures tend to have clear lines of accountability up and down the chain of command (meaning who is responsible if things go awry) and clear assignments of legal or financial liability in the event of major foul-ups. However, the situation might not be quite so clear in an unstructured organization that relies on a temporary assemblage of independent companies and contractors.

Identifying Job Responsibilities

Once a company knows what it wants to focus on, it can design each job needed to deliver those competencies. A key decision here is finding the optimal level of **work specialization**, sometimes referred to as the **division of labor**—the degree to which organizational tasks are broken down into separate jobs. Work specialization can improve organizational efficiency by enabling each worker to perform tasks that are well defined and that require specific skills When employees concentrate on the same specialized tasks, they can perfect their skills and perform those tasks more quickly. However, organizations can overdo specialization. If a task is defined too narrowly, employees may become bored with performing the same limited, repetitious job over and over. They may also feel unchallenged and alienated.

Team Development

One well-known model defined by researcher Bruce Tuckman identifies five stages of development, nicknamed **forming, storming, norming, performing, and adjourning** **Forming**. The forming stage is a period of orientation and ice-breaking. Members get to know each other, determine what types of behaviors are appropriate within the group, identify what is expected of them, and become acquainted with each other's task orientation. **Storming**. In the storming stage, members show more of their personalities and become more assertive in establishing their roles. Conflict and disagreement often arise during the storming stage, as members jockey for position or form coalitions to promote their own perceptions of the team's mission. **Norming** During the norming stage, conflicts are resolved, and team harmony develops. Members come to understand and accept one another, reach consensus on who the leader is (if that hasn't already been established formally), and reach agreement on member roles. **Performing**. In the performing stage, members are truly committed to the team's goals. Problems are solved, and disagreements are handled in the interest of task accomplishment. **Adjourning**. Finally, if the team has a specific task to perform, it goes through the adjourning stage after the task has been completed. In this stage, issues are wrapped up, and the team is dissolved. As a team moves through these stages, **two important developments occur**. First, it develops a certain level of **cohesiveness**, a measure of how committed the members are to the team's goals. Cohesiveness is reflected in meeting attendance, team interaction, work quality, and goal achievement. Cohesiveness is influenced by many factors, particularly competition and evaluation. Strong team cohesiveness generally results in high morale. when cohesiveness is coupled with strong management support for team objectives, teams tend to be more productive. Second development is the emergence of **norms**, informal but often powerful standards of conduct that members share and use to guide their behavior. Norms define acceptable behavior by setting limits, identifying values, and clarifying expectations. Norms can be established in various ways: from early behaviors that set precedents for future actions, from significant events in the team's history, from behaviors that come to the team through outside influences, and from a leader's or member's explicit statements that have an impact on other members

Learning Objective 6: Explain the concept of an unstructured organization, and identify the major benefits and challenges of taking this approach. unstructured organization

SUMMARY: An unstructured organization doesn't rely on conventional organizational structures to assemble the resources needed to pursue business goals. Instead, it assembles independent contractors or companies, as needed, for specific tasks or functions, relying on electronic communications to replace much of the structural linkages in a conventional company. The potential benefits for companies are increased agility, lower fixed costs and more flexible capacity management, access to otherwise unreachable talent, and the benefits of competition among workers or service providers. For workers, the benefits include performance-based evaluation of their efforts, more freedom and flexibility to choose which projects to work on and how much to work, and access to jobs that might be otherwise unattainable. The potential disadvantages of the unstructured approach include complexity and control issues for managers, greater uncertainty for companies and workers, the loss of meaning and connection to a greater purpose for employees, diminished loyalty for both employers and employees, uncertainties in career development and management succession, and concerns over accountability and liability.

Characteristics of Effective Teams

To be successful, teams need to be designed as carefully as any other part of an organization structure. * Establishing the **size of the team** is one of the most important decisions the **optimal size for teams is generally thought to be between 5 and 12 members**. Teams with fewer members may lack the necessary range of skills, whereas members of larger teams may have difficulty bonding properly and communicating efficiently. * However, managers sometimes have no choice; complex challenges such as integrating two companies or designing complicated products can require teams of up to 100 people or more. * types of individuals on a team** are also a vital consideration. People who assume the **task-specialist role** focus on helping the team reach its goals. In contrast, members who take on the **socioemotional role** focus on supporting the team's emotional needs and strengthening the team's social unity. Some team members are able to assume dual roles, contributing to the task and still meeting members' emotional needs. These members often make effective team leaders. At the other end of the spectrum are members who are **nonparticpators**, contributing little to reaching the team's goals or to meeting members' socioemotional needs. **Clear sense of purpose** - understand task, expected of them, respective roles on team **Open and honest communication**Team members speak openly and honestly, without the threat of anger, resentment, or retribution listen to and value feedback all members participate **Empathy and mutual understanding** **Creative thinking**. **Accountability** **Focus**. Team members get to the core issues of the problem and stay focused on key issues. **Decision by consensus** On effective teams, all decisions are arrived at by consensus. But this point comes with a warning: Teams that worry too much about consensus can take a long time to make decisions. In many cases, members need to commit to the group's decision even though they may not support it 100 percent.

You meet with the executive team and learn more about the company. When the company was founded over 40 years ago, it focused on providing quality, classic apparel and accessories for mature women. Over the years, the company made an effort to keep up with fashion trends and fads, but in the process lost much of its customer base, who wanted timeless, quality apparel. Sales slumped, and executives are stumped about what to do next. You suggest the company should go back to its roots and revamp its mission statement as a first step in its makeover. Which of the following mission statements would be most appropriate for the company?

To provide our customers with classically styled career and casual women's apparel and accessories and enjoyable shopping experiences that drive long-term loyalty and shareholder value. You chose providing classic apparel and enjoyable shopping experiences. That was the best choice. It is very specific regarding the company's customers, the services it provides, and what the company wants to achieve.

Decision Point: Classifying Plans You think your client has done an excellent job of defining its strategic goals, assessing the organization and environment through a SWOT analysis, and matching environmental threats and opportunities against the company's strengths and weaknesses. However, the management team seems to be struggling just a bit when it comes to fitting in the last piece of the puzzle -- which objectives should be part of the strategic plan, the tactical plan, or the operational plan. Once more, they've asked for your help and guidance. Consider each of the objectives shown below and drag it into the appropriate level of the pyramid to indicate whether these should be part of the company's strategic plan, its tactical plans, or its operational plans.

When asked to identify whether the objectives belonged in the company's strategic, tactical, or operational plan, you correctly placed most of the objectives. Good job! see list 3 out of 5 You suggest that the managers spend some time brainstorming on other strengths, weaknesses, opportunities, and threats impacting the business. They come up with the following list. Strengths High quality clothing Reputable customer service Strong website with good functionality Weaknesses Several stores need extensive remodeling due to age Weak economy Opportunities Possible expansion of product line to women's wear for younger customers Increasing online retail and e-commerce purchases by target market Threats Changing customer tastes High employee turnover in several stores Increasing price pressure from suppliers it in the eText Decision Point: Classifying Plans Points 3 out of 5 You think your client has done an excellent job of defining its strategic goals, assessing the organization and environment through a SWOT analysis, and matching environmental threats and opportunities against the company's strengths and weaknesses. However, the management team seems to be struggling just a bit when it comes to fitting in the last piece of the puzzle -- which objectives should be part of the strategic plan, the tactical plan, or the operational plan. Once more, they've asked for your help and guidance. Consider each of the objectives shown below and drag it into the appropriate level of the pyramid to indicate whether these should be part of the company's strategic plan, its tactical plans, or its operational plans. Strategic Plannning Increase sales revenue from $8.2 million to $10 million. Upgrade website to make it mobile-friendly and linked with company social media sites. Increase market share in Midwestern region by 20% within the next 5 years. Tactical Planning Hire temporary workers to staff expanded hours of operation during holiday season. Increase sellling space by 25% in the Meadowville store by completing an addition to the building by year-end. Develop and implement a company-wide orientation program for new hires. Maintain a profitability rate that is among the best-in-class retailers as measured by a percentage of net sales. Operational Planning Hire two new online customer service associates by the end of the month. Hire a new web designer. Perform physical inventory of stores. it in the eText Decision Point: Classifying Plans Points 3 out of 5 You think your client has done an excellent job of defining its strategic goals, assessing the organization and environment through a SWOT analysis, and matching environmental threats and opportunities against the company's strengths and weaknesses. However, the management team seems to be struggling just a bit when it comes to fitting in the last piece of the puzzle -- which objectives should be part of the strategic plan, the tactical plan, or the operational plan. Once more, they've asked for your help and guidance. Consider each of the objectives shown below and drag it into the appropriate level of the pyramid to indicate whether these should be part of the company's strategic plan, its tactical plans, or its operational plans. Strategic Plannning Increase sales revenue from $8.2 million to $10 million. Upgrade website to make it mobile-friendly and linked with company social media sites. Increase market share in Midwestern region by 20% within the next 5 years. Tactical Planning Hire temporary workers to staff expanded hours of operation during holiday season. Increase sellling space by 25% in the Meadowville store by completing an addition to the building by year-end. Develop and implement a company-wide orientation program for new hires. Maintain a profitability rate that is among the best-in-class retailers as measured by a percentage of net sales. Operational Planning Hire two new online customer service associates by the end of the month. Hire a new web designer. Perform physical inventory of stores.

Decision Point: Setting Business Goals Once you've completed drafting a new mission statement for the client, you decide it's time to turn your attention to the company's long-term goals. You draft an email to the president of the company: To: Emerson Coates, President Subject: Strategic Plan Emerson, as discussed in our meeting last week, I'd like to review the company's long-term goals as soon as possible -- hopefully by Friday, so that I can have questions and comments ready for our next meeting. Please let me know if you have any questions. What should be one of the company's long-term goals?

You chose "Increase market share by 20% within the next 5 years." That was the best choice. Increasing market share by 20% within the next 5 years would be a long-term goal. Long-term goals relate to an extended period of time, typically 5 years or more.

Decision Point: Contents of a Strategic Plan Along with a list of its long-term goals, Emerson Coates sends over the company's strategic plan, and you begin a detailed review. You quickly notice that there are some elements of the plan that really don't belong there. Which of the following elements will you choose to retain?

You chose the company's plan to expand its presence. That was the best choice. The strategic plan reflects decisions about resource allocations, company priorities, and the steps needed to meet strategic goals. The plan to expand the company's presence in the Western U.S. by opening 8 new stores is a strategic goal and should be retained in the strategic plan.

Developing an Effective Leadership Style

autocratic leaders - leaders who do not involve others in decision making leadership style viewed as finding the right balance between **what** the leader focuses on and **how** he or she makes things happen in the organization. 3 basic types of leadership styles: 1. **autocratic leaders** - control the decision-making process in their organizations often restricting the decision-making freedom of subordinates - gen. has bad reputation, when it's overused or used inappropriately, produce bad results or stunt organization's growth. times necessary to guide firm through challenging situations or bring uncooperative units in line * manager makes the decisions and issues directives down the chain of command, subordinates have little or no freedom to make decisions, deviate from plans, or provide contrary input. 2. **democratic leaders** - in contrast, delegate authority and involve employees in decision making. Also known as **collaborative leaders**, these managers invite and seek out input from anyone in the organization who can add insight to the decision-making process. i.e. Salesforce installed internal social networking application gave everyone in company chance to share info, CEO Mark Benioff began monitoring flow of insights/realized some of most valuable info about customers was coming from employees upper management didn't normally communicate w/ - opened annual strategic planning mtg. to entire company via social networking style often called **participative mangement** * leaders who delegate authority and involve employees in decision making * manager shares decision-making authority, seeking input and inviting subordinates to participate in a coordinated planning process; group can encourage a change of course if needed. participative management - a philosophy of allowing employees to take part in planning and decision making 3. **Laissez-faire** translated "hands-off" i.e. Danny Wegman take role of supporters/consultants encouraging employees' ideas, offering insights or opinions when asked. * leaders who leave most decisions up to employees, particularly decisions concerning day-to-day matters * when overall strategic direction//priorities in place, emphasize **employee empowerment** giving employees the power to make decisions that apply to their specific aspects of work. * manager acts as advisor and supporter, offering input when asked but generally letting subordinates chart and adjust their own course toward mtg. agreed-upon goals and objectives. **employee empowerment** granting decision-making and problem-solving authorities to employees so they can act w/o getting approval from management.

Assessing Strengths, Weaknesses, Opportunities, and Threats

before establishing long-term goals, company needs to have clear assessment of strengths & weaknesses relative to opportunities & threats it faces **commonly referred to as SWOT- strengths, weaknesses, opportunities, and threats** Strengths - positive internal factors that contribute to a company's success - anything from team of expert employees to financial resources to unique technologies Weaknesses are negative internal factors that inhibit the company's success, such as obsolete facilities, inadequate financial resources to fund growth, or lack of managerial depth and talent. Identifying a firm's internal strengths and weaknesses helps management understand its current abilities so it can set proper goals next step identify external opportunities and threats that might significantly affect the firm's ability to attain desired goals Opportunities are positive situations that represent the possibility of generating new revenue shrewd managers/entrepreneurs recognize opportunities before others do then promptly act on their ideas Threats are negative forces that could inhibit a firm's ability to achieve its objectives, including such external factors as new competitors, new government regulations, economic contraction, changes in interest rates, disruptions in supply, technological advances that render products obsolete, theft of intellectual property, product liability lawsuits, and even the weather. depending on company & industry may be helpful to consider internal threats if they have potential to disrupt business

Developing Forecasts

by very nature, planning requires managers to make predictions about the future forecasting notoriously difficult/error-prone part of strategic planning managers need to predicts not only **WHAT** will or will not occur, but **WHEN** it will occur and **HOW** it will affect their business. **forecasting crucial to every company's success b/c it influences the decisions managers make regarding virtually every business activity, and misreading the future can damage or even destroy a company 2 categories: **quantitative forecasts** - typically based on historical data or tests and often involve complex statistical computations **qualitative forecasts** - which are based more on intuitive judgments neither foolproof - but both valuable tools often used together help managers fill in unknown variables that crop up in planning process i.e. managers can make statistical projections of next year's sales based on data from previous years while factoring in their judgment about impact of new competitors, changing regulations, or other external forces represents a paradox b/c future is simply not predictable technology, fashion, other influential forces often move forward in lurches and leaps difficult to predict extraordinary events - wars, economic meltdowns, natural disasters play havoc w/ best forecasts - single surprising development can trigger chain reaction of other developments might have been impossible to envision before. ***one key element in art of management is crafting plans solid enough to move company forward in strategically coherent direction while staying alert to changing conditions & being flexible enough to adapt quickly when things do change***

Managing Change

change presents major leadership challenge for one simple reason: **people don't like change, don't like being told need to change** may fear unknown may be unwilling to give up current habits, benefits may not trust motives of people advocating change, may have experienced too many change initiatives didn't yield promised results To improve chances of success when organization needs change steps: 1. **Identify everything that needs to change**. Changes can involve the structure of the organization, technologies and systems, or people's attitudes, beliefs, skills, or behaviors.23 One particular challenge for managers advocating change is understanding the ripple effect the change will have throughout the organization. 2. **Identify the forces acting for and against a change**. By understanding these forces, managers can work to amplify the forces that will facilitate the change and remove or diminish the negative forces. 3. **Choose the approach best suited to the situation**. Managers can institute change through a variety of techniques, including communication, education, participation in decision making, negotiation, visible support from top managers or other opinion leaders, or coercive use of authority (usually recommended only for crisis situations). When managers engage people in the change, asking for their input and advice so they can help design the changes, they'll be much more likely to embrace the new way of doing things.25 4. **Reinforce changed behavior and monitor continued progress**. Once a change has been made, managers need to reinforce new behaviors and make sure old behaviors don't creep back in.

Analyzing the competition

competitive context company operates needs to be thoroughly understood and factored into strategic planning process. * performing SWOT analysis on each major competitors good first step ** identifying **their** strengths/weaknesses helps pinpoint **your** opportunities/threats competitive analysis should always keep customer's perspectives in mind you may believe you have best product, best reputation, best customer service, but only beliefs that matter are the target customer's conversely you might believe that competitor's less-expensive products inferior, but those products might well be good enough to meet customer's needs - meaning that the higher cost of your higher-quality products puts you at a disadvantage

10. As a manager in the operations division of ABC Manufacturing, Ellen focuses primarily on ensuring that ABC's activities remain aligned with previously established goals. Which of the following functions is Ellen performing? A. Benchmarking B. Organizing C. Leading D. Controlling Your answer is correct. E. Planning

controlling

QUIZ 1. Moving decision making as far down the organizational pyramid as possible by empowering employees to make decisions about particular situations is part of which managerial role? A. Analytical B. Forecasting C. Interpersonal D. Informational E. Decisional

decisional

6. Which of the following is an advantage of working in teams? A. Diversity of views Your answer is correct. B. Diminished individual motivation C. Structural disruption D. Excessive workloads E. Groupthink

diversity of views

21. _________ represents the practice of directing and inspiring individuals to successfully work toward company objectives. A. Planning B. Organizing C. Controlling D. Leading Your answer is correct. E. Staffing

leading

Conceptual Skills

managers need **conceptual skills** to visualize organizations, systems, markets, and solutions - both as complete entities on their own and as interrelated pieces of a whole. the ability to understand the relationship of parts to the whole conceptual skills esp. important to top managers b/c they are the strategists who develop the plans that guide the organization toward its goals. - use conceptual skills to acquire/analyze information, identify both problems and opportunities, understand the competitive environment in which their companies operate, and develop strategies and plans. - ability to conceptualize solutions that don't yet exist, to see things as they could be rather than simply as how they are, is vital skill for executives.

Decisional Roles

managers up/down organizational ladder face endless stream of decisions most routine - i.e. choosing job candidates hire or setting prices new products other decisions - may occur only once or twice in manager's career i.e. responding product-tampering crisis or threat of hostile takeover some decisions made after extensive information gathering/analysis others made on spot w/ little but judgment/intuition to guide manager's choice one of most significant changes occurring in business management recent yrs - effort to push decision making as far down organizational pyramid as possible - giving whichever employees face particular situation authority to make decisions about it this approach accelerates but improves work flow/customer service & frees up high-level managers to work on more strategic matters **Being able to move among these roles comfortably while performing the basic management functions is just one of many skills managers must have.** **Four functions - planning, organizing, leading, controlling**

15. Effective teams share which of the following characteristics? A. Socioemotional roles B. Diminished individual motivation C. Task-specialist roles D. Groupthink E. Open and honest communication

open and honest communication

Managing an Unstructured Organization

past decades about organization strategies in business centered on the best way to structure a company to compete effectively and operate efficiently. many companies are concluding that the best way to organize might be with little or no structure at all, at least in terms of the traditional forms. unstructured organizations are using digital technologies—and global socioeconomic changes enabled by these technologies—to rapidly form and re-form work patterns that bear almost no resemblance to the classic structures. These innovators are experimenting with various combinations of virtual organizations, networked organizations, crowdsourcing, outsourcing, and **hyperspecialization**, the division of work into narrowly focused tasks that can be assigned to specialists who become highly skilled at those discrete tasks. The new "formless forms" are enabled by cloud computing, mobile communication, online collaboration platforms, and all manner of social networking tools. All of these elements have been in use for some time, but the mashup of new thinking and new technology is unleashing them in revolutionary ways. In a sense, by binding together a temporary organization, these technologies take the place of the lines and boxes that define a traditional organization chart.

14. Assessment of an organization's strengths and weaknesses relative to the opportunities and threats it faces is included in which of the strategic planning processes? A. Defining the organization's mission, vision, and values B. Developing action plans C. Analyzing the competition D. Developing forecasts E. Performing a SWOT analysis

performing a SWOT analysis

st -Increase sales revenue from $8.2 million to $10 million increase market share in Midwestern region by 20% within the next five years tac- increase selling space by 25% in the Meadowville store by completing an addition to the building by year-end maintain a profitability rate that is among the best-in-class retailers as measured by a percentage of net sales op - hire two new online customer service associates by the end of the month hire temporary workers to staff expanded hours of operation during holiday season upgrade website to make it mobile-friendly and linked with company social media sites hire a new web designer develop and implement a company-wide orientation program for new hires perform a physical inventory of stores

Establishing Goals and Objectives

terms used interchangeably, goal as a broad, long-range accomplishment that the organization wants to attain and to think of an objective as a specific, short-range target designed to help reach that goal Wegman's- **goal** might be to capture 15% of the grocery market in the mid-Atlantic region over next 5 yrs. and an **objective** in support of that goal might be to open four new stores in Virginia next 2 yrs. Business people often advised make their goals and objectives **SMART** as **specific, measurable, attainable, relevant, and time limited** "substantially increase our sales" is poorly worded statement b/c it doesn't define what **substantially** means or when should be measured. Acronym can be helpful reminder to set meaningful goals, but as w/ paradox of forecasting, important to use good judgment & be flexible too

Informational Roles

the higher up managers are the more they rely on subordinates to collect, analyze, and summarize information - AND the greater the risk that they will fall out of touch with what is happening on the "front lines" where the essential day-to-day work of the organization is performed. today's companies devised powerful and clever ways to collect & process information for managers **executive dashboard** - just like car dashboard - provides quick-read summaries of vital performance variables dashboard provides quick summary managers must figure out what need to know - when they need to know it as you progress higher up in organization you need to monitor more information sources but see fewer details from each one managers communicate info to employees, other managers, other stakeholders. form of information - technical and administrative information to motivational pep talks to strategic planning - every form of media, private conversations to video conferences connect across country to around the world increasing use social media internal/external communication changing nature manager's informational role past = communication often concentrated formal channels tended to flow one direction at time, i.e. manager down to his/her subordinates or from "the company" to customers w/ social media conversational model emerging - more people participate./communication more immediate/less formal i.e. Southwest Airlines Nuts About Southwest blog team of employee/manager bloggers from around company conduct what amounts to multiple ongoing conversations w/thousands Southwest customers **Smart use of social media helping managers learn more from employees/customers/communicate w/stakeholder groups more effectively**

The Leading Function Learning Objective 4 Describe the leading function, leadership style, and organizational culture. management is not leadership

the process of guiding and motivating people to work toward organizational goals Leading is the process of influencing and motivating people to work willingly and effectively toward common goals. Managers with good leadership skills have greater success in influencing the attitudes and actions of others and motivating employees to put forth their best performance. all managers have to be effective leaders to be successful, management and leadership **NOT** the same management - rational, intellectual, practical side of guiding an organization leadership = inspirational, visionary, emotional side **BOTH** use power, **BUT** management involves **position power** (stems from individual's position in organization) where leadership involves **personal power** (stems from a person's own unique attributes such as expertise or charisma) successful leaders tend to share many same traits no magical set of personal qualities automatically destines someone for leadership Good leaders possess balance of types of intelligence: **Cognitive intelligence** involves reasoning, problem solving, memorization, and other rational skills. Obviously, leaders need a sufficient degree of cognitive intelligence to understand and process the information required for planning and decision making in their jobs. **Emotional intelligence** is a measure of a person's awareness of and ability to manage his or her own emotions. People with high emotional intelligence recognize their own emotional states and the effect those emotions have on others, they are able to regulate their emotional responses in order to control or reduce disruptive impulses and moods, and they have a high degree of empathy (the ability to understand others' feelings). **Social intelligence** involves looking outward to understand the dynamics of social situations and the emotions of other people, in addition to your own.15 Socially adept managers have a knack for finding and building common ground with people of all kinds. Moreover, leaders, in a sense, "infect" their organizations with their own emotions, positive or negative. all 3 types of intelligence essential to building the competencies lead to success **studies suggest both leadership & life, emotional & social intelligence play far greater role in success than purely cognitive intelligence.

Middle managers

those in the middle of the management hierarchy, they develop plans to implement the goals of top managers and coordinate the work of first-line managers **middle management** term used disparagingly, giving impression middle managers are **bureaucrats** who clog up works w/o adding much value some highly regarded opinion leaders blame such managers for much that ails modern corporation. many companies **flattened** organizational structures by removing one or more layers of middle management ** middle managers play essential role translating strategic goals/objectives into actions that allow company to meet those targets. ** may not do day-to-day work, they're the ones who put the systems/resources in place so that front-line teams can work efficiently w/ coordinated purpose. ** provide vital coaching/mentoring for first-line managers making transition into management "It's the leaders in the middle who must communicate and execute strategy, solve problems, create efficiencies, and manage performance" - Steve Arneson leadership consultant Wharton prof Ethan Mollick - middle managers oversaw new game development greater impact on company performance than top managers who set strategy or developers who designed/created the games

Defining the Mission, Vision, and Values statements 1. mission 2. vision 3. values

to achieve any level of strategic clarity, planners first need to agree on basic principles that define the organization, such agreement can be articulated in three interrelated statements: 1- a mission statement is a brief expression of **WHY** the company exists - what the organization aims to accomplish for customers, investors, and other stakeholders i.e. medical device manufacturer Welch Allyn defines its mission as providing "superlative medical products, services and solutions which are used by healthcare professionals at the point of care in acute and primary settings all around the world. -- clearly defines the scope of company's activities & its priorities in serving its target customers. it eliminates activities the company could pursue such as consumer products but chooses not to 2. vision statement - brief expression of **WHAT** the company aspires to be. - i.e. global security company Northrop Grumman: "Our vision is to be the most trusted provider of systems and technologies that ensure the security and freedom of our nation and its allies" notice how statement differs in both content & tone from mission statement above **provides some focus (company wants to be the MOST TRUSTED provider, not largest or most technologically advanced) Also inspires employees w/ clear sense of purpose. **mission and vision are not universally agreed upon - some companies use terms interchangeably** 3. values statement identifies the principles that guide the company's decisions and behaviors and establish expectations for everyone in the organization - brief articulation of the principles that guide a company's decisions and behaviors i.e. in addition to such attributes as integrity, service, fun, and inclusiveness, Enterprise Holdings (parent company of Enterprise Rent-a-car, Alamo, National Car Rental) identifies hard work as one of its values ** mission, vision, values statements sometimes dismissed as vague "happy talk" that companies spend lots of time creating but never look again criticism sometimes deserved. ***If statements are*** ***1. crafted with the purpose of truly defining what the company stands for and 2. used in both strategic planning and the ongoing evaluation of the company's performance, they become essential parts of the company's "DNA"***

Developing Action Plans

w/ strategic goals/objective sin place, next step is develop plan to reach them. plans often organized in hierarchy just as company is. overall strategic plan might be supported at next level down by research & development plan, a manufacturing plan, and a marketing plan, describing how each functional area will help the company reach its strategic goals & objectives names/contents of **tactical plans** or **operational plans** vary widely by industry, company, and business function. some address actions required by particular department or functional area over recurring time frame i.e. quarter or year others address all the tasks involved in single project or event. **launch plan** for new product might cover period from several months or year before product is introduced to the public on through the launch date several months afterward such a plan identify all actions needed to coordinate launch of product, production ramp-up, promotional activities, sales training, physical distribution, every other task/resource allocation decision needed to get product off to successful start. **crafting solid plan & carrying it through to completion great ways to make name for yourself early in your career** = decide what needs done, coordinate resources, bring it in on schedule, on budget

Divisional Structures

**divisional structure** - grouping departments according to similarities in product process, customer, or geography The **divisional structure** establishes self-contained suborganizations that encompass all the major functional resources required to achieve their goals—such as research and design, manufacturing, finance, and marketing.13 In some companies, these divisions operate with great autonomy and are often called **business units**. Many organizations use a structure based on **product divisions**—grouping around each of the company's products or family of products. In contrast, **process divisions** are based on the major steps of a production process The third approach, **customer divisions**, concentrates activities on satisfying specific groups of customers (see Exhibit 8.4). Finally, **geographic divisions** help companies respond more easily to local customs, styles, and product preferences. Divisional structures offer both advantages and disadvantages. First, because divisions are self-contained, they can react quickly to change, making the organization more flexible. In addition, because each division focuses on a limited number of products, processes, customers, or locations, divisions can often provide better service to customers. However, divisional departmentalization can also increase costs through duplication (if every product division has its own human resources department, for example). Furthermore, poor coordination between divisions may cause them to focus too narrowly on divisional goals at the expense of the organization's overall goals. Finally, divisions may compete with one another for resources and customers, causing rivalries that hurt the organization as a whole

8. Which of the following represents a conduit for the flow of power in a company and connects various levels and groups of people within that company, thereby allowing for efficient function and separation of tasks? A. Span of management B. Decentralization C. Departmentalization D. Chain of command E. Network structure

chain of command

TEST 1. Which of the following represents a conduit for the flow of power in a company and connects various levels and groups of people within that company, thereby allowing for efficient function and separation of tasks? A. Departmentalization B. Network structure C. Chain of command Your answer is correct. D. Decentralization E. Span of management

chain of command

Decision Point: Setting Business Goals Once you've completed drafting a new mission statement for the client, you decide it's time to turn your attention to the company's strategic management in terms of setting goals and formulating strategy. You draft an email to the president of the company. To: Emerson Coates, President Subject: Strategic Plan Emerson, as discussed in our meeting last week, I'd like to review the company's long-term goals as soon as possible -- hopefully by Friday, so that I can have questions and comments ready for our next meeting. Please let me know if you have any questions. What should be one of the company's long-term goals?

You chose "Open a minimum of 5 stores at outlet malls within the next 5 years." That was the best choice. Opening a minimum of 5 stores at outlet malls within the next 5 years would be a long-term goal. Long-term goals relate to an extended period of time, typically 5 years or more.

Decision Point: Defining SWOT Analysis A more detailed analysis of the company's strategic plan leads you to believe that, although the company has done a relatively good job of identifying its strategic goals, its next logical step would be to analyze the organization and the environment by performing a SWOT analysis. At your next meeting with the senior management team, you suggest this, and you're met with a lot of blank looks. The managers don't seem to quite understand what a SWOT analysis is. Select an option from the choices below and click Submit. A SWOT analysis is an assessment of the organization and its environment. It examines a company's internal Situation and Workforce as well as its external Objectives and Tactics. A SWOT analysis is an assessment of the organization and its environment. It examines a company's external Strengths and Weaknesses as well as its internal Opportunities and Threats. A SWOT analysis is an assessment of the organization and its environment. It examines a company's external Situation and Weaknesses as well as its internal Organization and Tactics. A SWOT analysis is an assessment of the organization and its environment. It examines a company's internal Strengths and Weaknesses as well as its external Opportunities and Threats.

Learning Objective 1: Explain the major decisions needed to design an organization structure organization structure, organization chart, agile organization, core competencies, work specialization, chain of command, line organization, line-and-staff organization, span of management, centralization, decentralization

Summary: The first major decision in designing an organization structure is identifying core competencies, those functions where the company excels and wants to focus. From there, managers can identify job responsibilities (who does what and how much work specialization is optimum), the chain of command, the span of management for each manager, and the degree of centralization or decentralization of decision-making authority.

3. ________ involves setting decision-making powers at the highest levels of a company. A. Cohesiveness B. Work specialization C. Decentralization D. Span of management E. Centralization

centralization

Establishing Performance Standards

**first step of control cycle** - managers set **standards**the criteria against which performance will be measured. top managers set standards for the organization as whole = revenue and profitability targets for individual areas of responsibility - middle & first-line managers set standards based on overall organizational standards of performance **web analytics** software can deliver data about online traffic but might not answer crucial questions such as why website visitors abandon online shopping carts w/o buying anything **benchmarking** - collecting and comparing process and performance data from other companies - common approach to setting standards comparing company's key performance attributes w/ those of industry leaders one of most important performance variables that fall under managerial control is **quality** a measure of how closely a product, activities, or outcomes conforms to predetermined standards and customer expectations -

Team Conflict

Although the term conflict sounds negative, **conflict** isn't necessarily bad. It can be **constructive** if it brings important issues into the open, increases the involvement of team members, and generates creative ideas for solving a problem. In contrast, conflict is **destructive** if it diverts energy from more important issues, destroys the morale of teams or individual team members, or polarizes or divides the team Destructive conflict can lead to **win-lose or lose-lose outcomes**, in which one or both sides lose, to the detriment of the entire team. If you approach conflict with the idea that both sides can satisfy their goals to at least some extent (a win-win strategy), you can minimize losses for everyone. For a win-win strategy to work, everybody must believe that (1) it's possible to find a solution that both parties can accept, (2) cooperation is better for the organization than competition, (3) the other party can be trusted, and (4) greater power or status doesn't entitle one party to impose a solution.

Learning Objective 3:Explain how a team differs from a group, and describe the six most common forms of teams. team, problem-solving team, self-managed team, functional team, cross-functional team, task force, committee, virtual team

SUMMARY: The primary difference between a team and a work group is that the members of a team work toward a shared goal, whereas members of a work group work toward individual goals. The six most common forms of teams are (1) problem-solving teams, which seek ways to improve a situation and then submit their recommendations; (2) self-managed teams, which manage their own activities and seldom require supervision; (3) functional teams, which are composed of employees within a single functional department; (4) cross-functional teams, which draw together employees from various departments and expertise in a number of formats such as task forces and committees; (5) virtual teams, which bring together employees from distant locations; and (6) social networks and virtual communities, which are typically less structured than teams but nonetheless share many aspects of teamwork and promote shared goals.

**Virtual Teams**

a team that uses communication technology to bring together geographically distant employees to achieve goals **virtual team** is composed of members at two or more geographic locations. - Research indicates that virtual teams can be as effective as face-to-face teams, - long as they take steps to overcome the disadvantages of not being able to communicate face to face. - For instance, some virtual teams meet in person at least once to allow the members to get to know one another before diving into their work. **To be successful, virtual teams should follow three basic rules.** 1. a virtual team should take full advantage of the diverse viewpoints, experiences, and skills of the various team members **One of the major benefits of virtual teams, in fact, is the opportunity to assemble teams of experts wherever they may be rather than rely on the people who happen to work in a given geographic location.** 2. virtual teams should use technology to overcome the disadvantages of geographic separation. an include remote access to important digital resources via shared online workspaces, team bonding and communication via social networks and collaboration platforms, project-management systems that clarify task responsibilities and schedules, and wikis and other systems that establish a "group memory" of key information. 3. virtual teams should take extra care to keep functioning effectively. When people work in isolation much of the time and rely on digital media to communication, the potential for miscommunication increases. For example, the lack of the **nonverbal cues**, such as facial expressions and body language, which people rely on heavily when communicating in person, makes virtual communication especially challenging. Teleconferencing and videoconferencing can help in this regard.

Mentoring Moment: A Hierarchy of Plans The final step in formulating strategy is creating actual plans. These plans can be viewed on three levels: strategic, tactical, and operational. The levels constitute a hierarchy because implementing the plans are practical only when there is a logical flow from one level to the next. Strategic planning is an organization's process of defining its strategy -- or priorities -- and making decisions on resource allocations to address those priorities. Generally, strategic plans are created by top management with input from others in the organization. These are long-term plans, reaching out 5 or more years. Tactical planning is shorter-term planning for implementing specific aspects of the company's strategic plan. Think of it this way: The strategic plan addresses the question "What?", whereas tactical plans address the question "How?". These plans typically involve upper and middle management and outline what the company needs to accomplish within a 1-year timeframe. Operational plans are developed by mid-level and lower-level managers and describe the day-to-day operations of the company. Think of an operational plan as a roadmap to achieve the tactical goals. These plans establish short-term targets for daily, weekly, or monthly performance. Think you've got it?

see list

Span of Management

the number of people under one manager's control; also known as **span of control** **number of people a manager directly supervises When a large number of people report directly to one person, that person has a **wide span of management**. This situation is common in **flat organizations** with relatively few levels in the management hierarchy. In contrast, **tall organizations** have many hierarchical levels, typically with fewer people reporting to each manager than is the case in a flat organization. In these organizations, the span of management is narrow. To reduce the time it takes to make decisions, many companies are now flattening their organization structures by removing layers of management and pushing responsibilities and authority to lower levels (see Exhibit 8.3). Such moves have the additional benefit of putting senior executives in closer contact with customers and the daily action of the business. However, a flatter structure is not necessarily better in all respects. For example, it increases the demand on individual managers and gives them less time to spend with each employee. The Container Store, for instance, added a layer of management specifically to reduce the span of management in order to give each manager more time "to nurture and develop and train and counsel" his or her employees.

top managers

those at the highest level of the organization's management hierarchy, they are responsible for setting strategic goals, and they have the most power and responsibility int he organization upper-level managers, have the most power, take overall responsibility for an organization. incorporates corporate officers and usually next layer or two of management beneath them, depending on the size/structure of the company. term **executive** applies to top managers. typical job titles include the **C** level positions, i.e. chief marketing officer (CMO) and chief financial officer (CFO) and vice presidents (the largest corporations may have dozens of vice presidents overseeing various divisions or functions) **Top managers** - establish structure for organization as a whole, select the people who fill the upper-level positions. - make long-range plans - establish major policies - often represent the company to the media, the community, other stakeholders **2 significant ways top management differs from lower management tiers** 1. long time frames executives must work 2. magnitude of decisions they need to make given difficulty/importance of these strategic decisions, the ability to make tough judgment calls is highly valued in top executives

Organizing the Workforce

**departmentalization** grouping people within an organization according to function, division, matrix, or network The arrangement of activities into logical groups that are then clustered into larger departments and units to form the total organization is known as **departmentalization** The choice must involve both the **vertical structure**—how many layers the chain of command is divided into from the top of the company to the bottom—and the **horizontal structure**—how the various business functions and work specialties are divided across the company. Variations in the vertical and horizontal designs of organizations can produce an almost endless array of structures—some flat, some wide; some simple and clear; others convoluted and complex. Within this endless variety of structure possibilities, most designs fall into one of **four types: functional, divisional, matrix, and network**. Companies can also combine two or more of these types in **hybrid structures**.

Functional Structures

**functional structures** - grouping workers according to their similar skills, resource use, and expertise The **functional structure** groups employees according to their skills, resource use, and job requirements. Common functional subgroups include research and development (R&D), production or manufacturing, marketing and sales, and human resources. Splitting the organization into separate functional departments offers several advantages: (1) Grouping employees by specialization allows for the efficient use of resources and encourages the development of in-depth skills, (2) centralized decision making enables unified direction by top management, and (3) centralized operations enhance communication and the coordination of activities within departments. Despite these advantages, functional departmentalization can create problems with communication, coordination, and control, particularly as companies grow and become more complicated and geographically dispersed. Moreover, employees may become too narrowly focused on departmental goals and may lose sight of larger company goals. Firms that use functional structures often try to counter these weaknesses by using **cross-functional teams** to coordinate efforts across functional boundaries,

25. Steve is a manager at TCM, Inc. Over the years, Steve has established a bad reputation as a power-hungry manager because he insists on controlling the decisions of the company without respect to employee input. Employees often feel like their opinions do not matter and that their choices become even more limited year after year. Which of the following describes Steve's leadership style? A. Laissez-faire leader B. Participative leader C. Democratic leader D. Autocratic leader Your answer is correct. E. Collaborative leader

autocratic leader

22. Which of the following entails an organization's excelling in certain activities, giving it a competitive advantage? A. Core competencies Your answer is correct. B. Decentralization C. Work specialization D. Centralization E. Span of management

core competencies

7. __________ focuses on establishing strategies and objectives for a company and proposing the best ways to achieve them. A. Controlling B. Coaching C. Organizing D. Leading E. Planning

planning

**Technical Skills**

the ability and knowledge to perform the mechanics of a particular job A person who knows how to operate a machine, prepare a financial statement, or use a web content management system has technical skills, the knowledge and ability to perform the tasks required in a particular job. Technical skills are most important at lower organizational levels because managers at those levels work directly with employees who are using the tools and techniques. 1. One obvious reason is that they need to grasp the technical matters if they are to make smart decisions regarding planning, organizing, leading, and controlling. 2. Another key reason for understanding technical matters is that demonstrating a level of technical aptitude gives managers credibility in the eyes of their employees **administrative skills** - which are the technical skills necessary to direct an organization, including scheduling, researching, analyzing data, and managing projects. - technical skills in information gathering, data analysis, planning, organizing, and other aspects of managerial work

5. The number of employees a manager directly oversees is defined as ________. A. a task force B. groupthink C. the chain of command D. the span of management Your answer is correct. E. cohesiveness

the span of management

The Planning Function

* Defining the mission and values - Strategic planning, memorialized in a Mission Statement, Vision Statement, and Values Statement * Assessing strengths, weaknesses, opportunities, and threats (SWOT) * Developing forecasts - Quantitative and qualitative forecasts * Analyzing the competition (SWOT) * Establishing goals and objectives - Goals should be specific, measurable, attainable, relevant, and time related (SMART) * Developing action plans

The Leading Function

**The process of influencing and motivating people to work willingly and effectively toward common goals** * Developing an effective leadership style - Autocratic - Democratic - Laissez-faire * Coaching and mentoring - Translate strategic goals and objectives into actions that allow the company to meet those targets * Managing change - Identify everything that needs to change - Identify the forces acting for and against change - Choose the approach best suited to the situation - Reinforce changed behavior and monitor continued progress * Building a positive organizational culture

Learning Objective 3: Describe the organizing function, and differentiate among top, middle, and first-line management. organizing, management pyramid, top managers, middle managers, first-line managers

SUMMARY: The organizing function involves arranging an organization's resources in the best way possible to help reach its goals and objectives. Top managers grapple with long-range, strategic issues and often must make decisions about events and conditions several years into the future. They also have important communication roles, representing the company to external stakeholders. Middle managers usually have responsibility over individual divisions or facilities and are charged with translating strategic plans into the tactical plans that will allow the company to reach its goals and objectives. First-line managers supervise nonmanagement employees; they have the shortest time horizons and greatest tactical perspective.

Centralization Vs. Decentralization

**centralization** - concentration of decision-making authority at the top of an organization Organizations that focus decision-making authority near the top of the chain of command are said to be centralized. **Centralization** can benefit a company by taking advantage of top management's experience and broad view of organizational goals. In addition, it can help companies coordinate large undertakings more efficiently, accelerate decisions that might otherwise get bogged down in discussions and disagreements, and reduce the number of overlapping capabilities. **decentralization** - delegation of decision-making authority to employees in lower-level positions In contrast, **decentralization** pushes decision-making authority down to lower organizational levels—such as department heads—while control over essential company-wide matters remains with top management. Implemented properly, decentralization can stimulate responsiveness because decisions don't have to be referred up the hierarchy.9 However, decentralization does not work in every situation or in every company. At times, strong authority from the top of the chain of command may be needed to keep the organization focused on immediate goals. In other cases, a company may need strong central decision making to coordinate efforts on complex projects or to present a unified image to customers. Decentralization can also lead to inefficiencies if multiple parts of a firm are doing the same basic task or replicating resources such as information systems. Managers should select the level of decision making that will most effectively serve the organization's needs, given the particular circumstances

Fostering Teamwork

Team development * Forming * Storming * Norming * Performing * Adjourning Team Conflict * Constructive vs. destructive conflict * Causes of team conflict - Poor communication - Competition for scarce resources - Disagreement over responsibilities - Basic differences in values and personalities Solutions to team conflict * Proactive attention * Communication and openness * Research * Flexibility * Fair play * Alliance

Defining the Chain of Command

With the various jobs and their individual responsibilities identified, the next step is defining the **chain of command**, the lines of authority that connect the various groups and levels within the organization. The chain of command helps the organization function smoothly by making two things clear: who is responsible for each task and who has the authority to make decisions. chain of command - a pathway for the flow of authority from one management level to the next All employees have a certain amount of **responsibility**—the obligation to perform the duties and achieve the goals and objectives associated with their jobs. As they work toward the organization's goals, employees must also maintain their **accountability**, their obligation to report the results of their work to supervisors or team members and to justify any outcomes that fall below expectations. Managers ensure that tasks are accomplished by exercising **authority**, the power to make decisions, issue orders, carry out actions, and allocate resources. Authority is vested in the positions that managers hold, and it flows down through the management pyramid. **Delegation** is the assignment of work and the transfer of authority, responsibility, and accountability to complete that work. **line organization** - a chain-of-command system that establishes a clear line of authority flowing from the top down The simplest and most common chain-of-command system is known as line organization because it establishes a clear line of authority flowing from the top down Everyone knows who is accountable to whom, as well as which tasks and decisions each is responsible for. However, line organization sometimes falls short because the technical complexity of a firm's activities may require specialized knowledge that individual managers don't have and can't easily acquire. A more elaborate system, called **line-and-staff organization**, was developed to address the need to combine specialization with management control. - an organization system that has a clear chain of command but that also includes functional groups of people who provide advice and specialized services In such an organization, managers in the chain of command are supplemented by functional groupings of people known as **staff**, who provide advice and specialized services but who are not in the line organization's overall chain of command

organization chart

a diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow. - managers use organization chart to design an organization's structure to provide visual representation of how employees and tasks are grouped and how the lines of communication and authority flow. When managers design an organization's structure, they use an **organization chart** to provide a visual representation of how employees and tasks are grouped and how the lines of communication and authority flow (see Exhibit 8.1). An organization chart depicts the official design for accomplishing tasks that lead to achieving the organization's goals, a framework known as the **formal organization**. Every company also has an **informal organization**—the network of interactions that develop on a personal level among workers.

managerial roles

all managerial roles that leaders must play can be grouped into three main categories: interpersonal informational decisional

**Cross-functional Team**

contrast to functional teams, a **cross-functional team**, or **horizontal team**, draws together employees from various functional areas and expertise. Advantage: - Cross-functional teams can facilitate information exchange, - help coordinate multiple organizational units, encourage new solutions for organizational problems, - aid the development of new organizational policies and procedures. Disadvantage: collaborating across organizational boundaries can be challenging, particularly if participation on a cross-functional team conflicts with an individual's regular departmental workload or performance incentives. Cross-functional teams often involve some form of matrix structure, even if temporarily, which brings with it the advantages and challenges of that form. cross-functional team can take on number of formats: **task force** formed to work on a specific activity w/ a completion point - several departments involved so all parties who have a stake in outcome of task are able to provide input. in contrast, **committee** usually has long life span and may become permanent part of organization structure. Typically deal w/ regularly recurring tasks i.e. addressing employee grievances

**Decision-Making Skills**

decision-making skills involve the ability to define problems and opportunities and select the best course of action ability to identify a decision situation, analyze the problem, weigh the alternatives, choose an alternative, implement it, and evaluate the results. Formal Process of six steps in Decision-Making Process: **1. Recognize and define the problem or opportunity** - gathering customer feedback, conducting studies, monitoring declining sales/profits sign for problems opportunities to fix **2. Identify and develop options** - goal is develop list of alternative courses of action **3. Analyze the options** - once ideas generated need studied, compared using criteria such as cost, feasibility, availability of resources, market acceptance, potential for revenue generation, and compatibility w/ the company's mission and vision. Some decisions yes/no, other present multiple options must be compared. **4. Select the best option** quantitative analysis required for some options to identify clear choice from available options others might have to rely on intuition and experience **5. Implement the decision** - option selected, time to implement decision **6. Monitor the results**managers monitor results of decisions over time see whether chosen alternative works, or any new problems or opportunities arise b/c of decision, whether decision should be modified to meet changing circumstances **list is logical/comprehensive method for decision making, managers must frequently make decisions w/ incomplete or imperfect information** **ability to make good decisions w/ incomplete information become highly valued management skill**

Learning Objective 2: Define four major types of organization structure. departmentalization, functional structure, divisional structure, matrix structure, network structure

SUMMARY: Companies can organize in four primary ways: by function, which groups employees according to their skills, resource use, and expertise; by division, which establishes self-contained departments formed according to similarities in product, process, customer, or geography; by matrix, which assigns employees from functional departments to interdisciplinary project teams and requires them to report to both a department head and a team leader; and by network, which connects separate companies that perform selected tasks for a headquarters organization.

Decision Point: Contents of a Strategic Plan Along with a list of its long-term goals, Emerson Coates sends over the company's strategic plan, and you begin a detailed review of the plan. You quickly notice that there are some elements of the plan that really don't belong there. Which of the following elements will you choose to retain? Select an option from the choices below and click Submit. **The company's plan to grow sales to exceed $10 million per year within the next 5 years** The company's plan to replace store managers at underperforming stores The company's plan to increase efficiencies through the use of wireless technology

You chose the company's plan to grow sales. That was the best choice. The strategic plan reflects decisions about resource allocations, company priorities, and the steps needed to meet strategic goals. The plan to grow sales to exceed $10 million per year within the next 5 years is a strategic goal and should be retained in the strategic plan.

Decision Point: SWOT Classification You suggest that the managers spend some time brainstorming on other strengths, weaknesses, opportunities, and threats impacting the business. They come up with the following list. Consider each of the factors identified by the management team and identify it as a strength, weakness, opportunity, or threat. Then drag the statement into the appropriate quadrant of the SWOT analysis. High quality clothing Reputable customer service Possible expansion of product line to women's wear for younger customers Several stores need extensive remodeling due to age Increasing online retail and e-commerce purchases by target market Weak economy Strong website with good functionality Changing customer tastes High employee turnover in several stores Increasing price pressure from suppliers

strength:

Essential Management Skills

Skills managers rely on to perform their functions and maintain a high level of quality in their organizations Interpersonal, technical, conceptual, decision making

**Social Networks and Virtual Communities**

Social networking technologies are redefining teamwork and team communication by helping erase the constraints of geographic and organization boundaries. In addition to enabling and enhancing teamwork, social networks have numerous other business applications and benefits they are not always teams in the traditional sense, social networks and virtual communities often function as teams, helping people coordinate their efforts in pursuit of a shared goal. In addition, social networking has become an essential tool for many teams, matrix organizations, temporary organizations, and other structures Some companies use social networking technologies to form **virtual communities** or **communities of practice** that link employees with similar professional interests throughout the company and sometimes with customers and suppliers **The **huge advantage that social networking brings is in identifying the best people to collaborate on each problem or project, no matter where they are around the world or what their official roles are in the organization** Such communities are similar to teams in many respects, but **one major difference** is in the responsibility for accumulating organizational knowledge over the long term Zappos uses a custom social networking system to track employee connections and encourage workers to reach out and build relationships. company is so sold on the idea of networking that it no longer uses traditional job postings and a conventional hiring process People who are interested in working at Zappos are required to join the social network first

5. At ABC Manufacturing, Susan is directly responsible for ensuring that essential work is accomplished according to performance criteria. Susan can be described as a _____ at ABC. A. corporate officer B. top manager C. coach D. middle manager E. first-line manager

first-line manager

Interpersonal Roles

management largely question of getting work accomplished through the efforts of other people so a manager must play a number of interpersonal roles, including providing leadership to employees, building relationships, and acting as a liaison between groups and individuals both inside and outside the company (i.e. suppliers, govt agencies, consumers, labor unions, and community leaders) effective managers excel at networking, fostering relationships w/ many people w/in their own companies & w/in the industries & communities where their companies do business. **number of connections a person has becomes an increasingly important asset the higher he or she rises in an organization.**

First-line managers

those at the lowest level of the management hierarchy, they supervise the operating employees and implement the plans set at the higher management levels ** oversee work of nonmanagerial employees ** put into action the plans developed at higher levels - supervisor, department head, office manager - types of employees these managers supervise vary widely - entry-level workers w/ limited experience and education to advanced experts in engineering, science, finance, other professional specialties like managers above them, first-line managers face challenges unique to their position in the hierarchy direct interface between **management** and employees, have most immediate responsibility for ensuring necessary work is done according to agreed-on performance standards. must deal w/ friction exists between employees/management supervisors usually involved in recruiting, hiring, training employees perform vital task making sure employees acquire skills need/adapt to organization's cultures

Matrix Structures

**matrix structures** a structure in which employees are assigned to both a functional group and a project team (thus using functional and divisional patterns simultaneously) A **matrix structure** is an organizational design in which employees from functional departments form teams to combine their specialized skills (see Exhibit 8.5). This structure allows the company to pool and share resources across divisions and functional groups. The matrix may be a permanent feature of the organization's design, or it may be established to complete a specific project. The matrix structure can help big companies function like smaller ones by allowing teams to devote their attention to specific projects or customers without permanently reorganizing the company's structure. A matrix can also make it easier to deploy limited resources where they're needed the most and to bring a mix of skills to bear on important tasks. On the downside, people in a matrix structure have to get used to reporting to two bosses, more communication and coordination is usually required, and struggles over resources can foster unhealthy competition between the two sides of the matrix. Strong support from upper management, a culture that values collaboration, and hands-on attention from managers to make sure employees don't get lost in the matrix are essential to using this structural form successfully.

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