Contemporary Business Chapter 7

Delegating work assignments

Managerial process of assigning work to employees. Delegation also involves a manager's span of management and whether decision making authority is centralized or decentralized.

Managerial functions

Managers in any organization must perform the essential functions of planning, organizing, directing, and controlling. Planning is the process of anticipating future events and conditions and determining courses of action for achieving organizational objectives. Organizing is the process of blending human and material resources through a formal structure of tasks and authority. Guiding and motivating employees to accomplish organizational objectives is called directing. Controlling is the function of evaluating an organization's performance against its objective.

Implementing the strategy

Managers, often middle managers and supervisors, put the plan into action. Generally, when top managers empower middle management, the company reaps the benefits.

Which leadership style is best?

No single leadership style is best for every situation. In a crises for example, an autocratic method might be best.

Setting objectives for the organization

Objectives are guideposts by which managers define the organization's desired performance in such areas as new product development, sales, customer service, growth, environmental and social responsibility, and employee satisfaction.

Creating strategies for competitive differentiation

Organizations can combine unique abilities and resources such as product innovation, technology, and employee motivation to achieve the unique blend that sets it apart from its competitors.

Ethical standards

These values are set by top managers, who must focus on the organization's long-term success, not merely short-term profits or personal gain.

How managers make decisions

This process begins when someone recognizes a problem or opportunity and develops possible courses of action. Next, is the evaluation of alternatives, followed by the selection and implementation of one of the alternatives. The last step is an assessment of the outcome.

Planning at different organizational levels

Top managers specialize in organizational objectives and long-term plans. Middle managers focus on short-term plans, and develop the organization's policies and procedures. Supervisory managers set daily and weekly plans, rules, and specific activities for each department. Contingency planning is led by top management, but all levels of management participate.

Vision

A perception of marketplace needs and the methods by which an organization can satisfy them. It serves as the target for a firm's actions, helping direct the company toward opportunities and differentiating it from competitors.

Programmed and nonprogrammed decisions

A programmed decision involves simple, common, and frequently occurring problems for which solutions have already been determined. A nonprogrammed decision involves a complex and unique problem or opportunity with important consequences for the organization.

Organization

A structured group of people working together to achieve common goals. An organization features three key elements: human interaction, goal-directed activities, and structure.

Skills needed for managerial success

Successful managers should possess technical, human, and conceptual skills. Technical skills include the ability to understand and use the knowledge and tools of a specific discipline or activity. Human skills are the interpersonal skills managers need to motivate and lead employees to accomplish identified objectives. Conceptual skills, needed especially by top managers, involve the ability to see the big picture by acquiring, analyzing, and interpreting information.

Leadership

The ability to inspire and direct others to attain organizational goals.

Management

The achievement of organizational objectives through the use of people and other resources. The skills and principles of management apply in both profit and not- for-profit organizations.

Monitoring and adapting strategic plans

The final step in the strategic planning process is to monitor and adapt plans when the actual performance fails to meet goals. Monitoring involves securing feedback about performance. Managers might compare actual sales against forecasts or compile information from surveys.

Assessing your competitive position

The firm must evaluate its current and potential position in the marketplace. SWOT analysis is often used in this phase of strategic planning to assess the strengths, weaknesses, opportunities, and threats.

Types of planning

The four types of plans used by contemporary organizations are strategic, tactical, operational, and contingency plans. Strategic plans set primary objectives and strategies for how to allocate resources to achieve them. Tactical plans involve implementing the activities specified by the strategic plan. Operation plans create detailed standards that guide implementation of tactical plans. Contingency planning allows a firm to quickly resume operations and communications with the public after a crisis.

The management hierarchy

The management hierarchy has three levels: top, middle, and supervisory management. Top management sets the long-term direction, vision, and values of the organization. Middle managers focus on specific operations, products, or customer groups and implement strategic plans. Supervisory managers are responsible for assigning nonmanagerial employees to specific jobs and evaluating performance.

Defining the organization's mission

The mission statement is a written explanation of an organization's business intentions and aims.

Departmentalization

The process of dividing work activities into units within the organization. In this arrangement, employees specialize in certain jobs—such as marketing, finance, or design.

Corporate culture

The system of principles, beliefs, and values. The leadership style of its managers, the way it communicates, and the overall work environment influence a firm's corporate culture. A corporate culture is typically shaped by the leaders who founded the company, and by those who have succeeded them.

Leadership styles

The way a person uses power to lead others. Leaders may utilize autocratic, democratic or free-rein styles.

Types of organization structures

There are four basic structural forms: line, line-and-staff, committee, and matrix. The oldest and simplest is the line organization. In the line-and-staff organization, staff departments are developed to support and advise the line. Committee organizations put authority and responsibility in the hands of a group of individuals. The matrix structure links employees from different parts of the organization to work together on specific projects.