Chapter 6

Tall

Multiple layers of management.

Time Management Skills

-Prioritize tasks, focusing on the most important things first. -Set aside a certain time each day to return phone calls and answer e-mail. -Delegate routine tasks. -Don't procrastinate. -Insist that meetings start and end on time, and stick to an agenda. -Eliminate unnecessary paperwork.

6-Step Approach to Problem Solving

1. Identify the problem you want to work on. 2. Gather relevant data. 3. Clarify the problem. 4. Generate possible solutions. 5. Select the best option. 6. Implement your decision and monitor your choice.

Organization Chart

A diagram delineating the interrelationships of positions within the organization.

Flat

A few layers of management.

Decision-Making Skills

A process in which you must define a problem, analyze possible solutions, and select the best outcome.

Organizing

Allocates resources (people, equipment, and money) to achieve a company's plans.

Restructuring

Altering existing organizational structures to become more competitive under conditions that have changed.

Organizational Structure

An arrangement of positions that's most appropriate for your company at a specific point in time.

SWOT Analysis

Analyzing an organization's Strengths, Weaknesses, Opportunities, and Threats. It begins with an examination of external factors that could influence the company in either a positive or a negative way.

Controlling

Comparing actual to planned performance and taking corrective action. 5-step process: (1) establish standards (2) measure performance (3) compare actual performance with standards and identify any deviations (4) determine the reason for deviations (5) take corrective action if needed.

Geographical Division

Enables companies that operate in several locations to be responsive to customers at a local level.

Customer Division

Enables them to better serve their various categories of customers.

Transactional Leaders

Exercise authority based on their rank in the organization. They let subordinates know what's expected of them and what they will receive if they meet stated objectives. They focus their attention on identifying mistakes and disciplining employees for poor performance.

Departmentalization

Grouping specialized jobs into meaningful units. Depending on the organization and the size of the work units, they may be called divisions, departments, or just plain groups.

Functional Organization

Groups together people who have comparable skills and perform similar tasks.

Divisional Organization

Made up of several smaller, self-contained units, or divisions, which are accountable for their own performance. Each division functions autonomously because it contains all the functional expertise (production, marketing, accounting, finance, human resources) needed to meet its objectives. The challenge is to find the most appropriate way of structuring operations to achieve overall company goals. Toward this end, divisions can be formed according to products, customers, processes, or geography.

Goals

Major accomplishments that the company wants to achieve over a long period (say, five years).

Contingency Planning

Managers identify those aspects of the business that are most likely to be adversely affected by change.

Planning

Managers set goals and determine the best way to achieve them.

Product Division

Means that a company is structured according to its product lines. Each division has its own research and development group, its own manufacturing operations, and its own marketing team. This allows individuals in the division to focus all their efforts on the products produced by their division. A downside is that it results in higher costs as corporate support services (such as accounting and human resources) are duplicated in each of the four divisions.

Span of Control

Measures the number of people reporting to a particular manager.

Transformational Leaders

Mentor and develop subordinates, providing them with challenging opportunities, working one-on-one to help them meet their professional and personal needs, and encouraging people to approach problems from new perspectives. They stimulate employees to look beyond personal interests to those of the group.

Specialization

Organizing activities into clusters of related tasks that can be handled by certain individuals or groups -Identifying the activities that need to be performed in order to achieve organizational goals. -Breaking down these activities into tasks that can be performed by individuals or groups of employees.

Operational Plans

Provide detailed action steps to be taken by individuals or groups to implement the tactical plan and, consequently, the strategic plan. Operational plans cover only a brief period—say, a week or a month.

Directing

Providing focus and direction to others and motivating them to achieve organizational goals.

Top Managers

Responsible for the health and performance of the organization. They set the objectives, or performance targets, designed to direct all the activities that must be performed if the company is going to fulfill its mission.

Objectives

Shorter-term performance targets that direct the activities of the organization toward the attainment of a goal. They should be clearly stated, attainable, and measurable: they should give target dates for the completion of tasks and stipulate who's responsible for taking necessary actions.

Tactical Plans

Shorter-term plans. These plans specify the activities and allocation of resources (people, equipment, money) needed to implement the overall strategic plan over a given period.

Technical Skills

Skills you need to perform specific tasks.

Strategic Planning

Step 1. The process of establishing an overall course of action. -Prepare a mission statement that describes the purpose of the organization and tells customers, employees, and others what it's committed to doing. -Select the core values that will guide the behavior of members of the organization by letting them know what is and isn't appropriate and important in conducting company activities. -Use SWOT analysis to assess the company's strengths and weaknesses and its fit with the external environment. -Set goals and objectives, or performance targets, to direct all the activities needed to achieve the organization's mission. -Develop tactical plans and operational plans to implement objectives.

First-Line Managers

Supervise employees and coordinate their activities to make sure that the work performed throughout the company is consistent with the plans of both top and middle management. They're less involved in planning than higher-level managers and more involved in day-to-day operations.

Interpersonal Skills

The ability to get along with and motivate other people.

Conceptual Skills

The ability to reason abstractly and analyze complex situations.

Chain of Command

The authority relationships among people working at different levels of the organization.

Delegation

The process of entrusting work to subordinates.

Middle Managers

They report to top management and oversee the activities of first-line managers. They're responsible for developing and implementing activities and allocating the resources needed to achieve the objectives set by top management.