Chapter 8
Indra Nooyi- “Performance with Purpose”
Adeyl Khan, Faculty, BBA, NSU
What is Management?
 Management is the process of achieving
organizational objectives through people and other
resources.
Managers
•
•
•
•
GP
BAT
Bata
Proshika
Adeyl Khan, Faculty, BBA, NSU
Top Management
 Develop long-range
strategic plans for the
organization.
 Inspire executives and
employees to achieve
their vision for the
company’s future.
Adeyl Khan, Faculty, BBA, NSU
Middle Management
 Focus on specific
operations, products,
or customer groups
within an organization.
 Responsible for
developing detailed
plans and procedures
to implement the
firm’s strategic plans.
Adeyl Khan, Faculty, BBA, NSU
 General Manager
 Branch Manager
 Division Manager
 Plant Manager
Supervisory Management
 Implement the plans
developed by middle
managers.
 Responsible for nonmanager employees.
 Motivate workers to
accomplish daily,
weekly, and monthly
goals.
Adeyl Khan, Faculty, BBA, NSU
 Supervisors
 Section chief
 Team leaders
Skills Needed for Management Success
→ Technical skills

Manager’s ability to understand and use the techniques, knowledge,
and tools and equipment of a specific discipline or department.

Acquired/applied in First line management
→ Human skills

Interpersonal skills that enable a manager to work effectively with and
through people.

Communicate, motivate, lead- at all level!
→ Conceptual skills

Ability to see the organization as a unified whole and to understand
how each part of the overall organization interacts with other parts.

Acquiring, analyzing, and interpreting information
Adeyl Khan, Faculty, BBA, NSU
Managerial Functions
Planning
 Process of determining courses
of action for achieving
organizational objectives.
Organizing
Controlling

Evaluating an organization’s
performance to determine
whether it is accomplishing its
objectives.
 Blending human and material
resources through a formal
structure of authority.
Directing
 Guiding and motivating
employees to accomplish
organizational objectives.
Adeyl Khan, Faculty, BBA, NSU
Controlling Steps
• Establish performance
standards.
• Monitor actual performance.
• Compare actual performance
with established standards.
• Take corrective action if
required.
Adeyl Khan, Faculty, BBA, NSU
8
Setting A Vision and Ethical Standards
for Them
• Vision is the perception of marketplace needs and
the methods an organization can use to satisfy
them.
– Must be focused yet adaptable to changes
in the business environment.
• Long-term success is also tied to the ethical
standards that top executives set.
– High ethical standard can also encourage, motivate,
and inspire employees to achieve goals.
Adeyl Khan, Faculty, BBA, NSU
Mr. Dell
Importance of Planning
There are different types and levels of plans
 Organizations should have a comprehensive planning
framework.
 From mission statement to objectives and goals
 Narrow functional plans
 Plans outline the steps the company will take to meet
outlined goals and objectives.
Adeyl Khan, Faculty, BBA, NSU
Planning at Different Organizational
Levels
Adeyl Khan, Faculty, BBA, NSU
The Strategic Planning
 Determining primary objective of the organization
and allocating resources to achieve those
SWOT Analysis
Adeyl Khan, Faculty, BBA, NSU
Adeyl Khan, Faculty, BBA, NSU
Managers as Decision Makers
• Decision making is the process of recognizing a
problem or opportunity, evaluating alternative
solutions, selecting and implementing an
alternative, and assessing the results.
• Programmed decision involves simple, common
problems with predetermined solutions.
• Nonprogrammed decision involves a complex,
unique problem or opportunity with important
consequences for the organization.
Adeyl Khan, Faculty, BBA, NSU
How Managers Make Decisions
Adeyl Khan, Faculty, BBA, NSU
Managers as Leaders
• Leadership is the ability
to direct or inspire people
to attain organizational
goals.
• Involves the use of
influence or power.
• Three leadership traits:
 Sources of power
 Position
 Expertise/experience
 Personality
 Humorous
 Energetic
 Fair
– Empathy
– Self-awareness
– Objectivity in dealing with
others
Adeyl Khan, Faculty, BBA, NSU
Lead by Example!
Leadership Styles
Autocratic Leadership
• Make decisions on own without
consulting employees.
Democratic Leadership
• Involve employees in decisions,
delegate assignments and ask
employees for suggestions.
Empowerment
Free-Rein Leadership
• Leave most decisions to
employees.
Adeyl Khan, Faculty, BBA, NSU
Corporate Culture
 Organizations system of principles, beliefs, and
values.
 Influenced by
 Managerial philosophies, communications networks,
and workplace environments and practices …
Adeyl Khan, Faculty, BBA, NSU
Organizational Structures
•
Organization: Blending human and material resources through a
formal structure of tasks and authority. Structured grouping of
people working together to achieve common goals.
•
Three key elements:
– Human interaction
– Goal-directed activities
– Structure
Adeyl Khan, Faculty, BBA, NSU
Organizational Chart
 How to organize?
 Depends on firm’s goals and competitive strategy, the
type of product it offers, the way it uses technology to
accomplish work, and its size. employees understand how their work fits
within the overall operation
As a company grows …
Adeyl Khan, Faculty, BBA, NSU
Departmentalization
•
Process of dividing work activities into units within the
organization.
•
Product departmentalization: organized based on the goods and
services a company offers.
•
Geographical departmentalization: organized by geographical
regions within a country or, for a multinational firm, by region
throughout the world.
•
Customer departmentalization: organized by the different types of
customers the organization serves.
•
Functional departmentalization: organized by business functions
such as finance, marketing, human resources, and production.
•
Process departmentalization: organized by work processes
necessary to complete production of goods or services.
Adeyl Khan, Faculty, BBA, NSU
Different Forms of Departmentalization
Adeyl Khan, Faculty, BBA, NSU
Delegating Work Assignments
•
Delegation is the act of assigning work activities to subordinates.
– The responsibility and the necessary authority for completing tasks.
– Accountability means that employees are responsible for the results
of the ways they perform their assignments; they must accept the
consequences of their actions (results of the way they performed).
– Authority and responsibility move down; accountability moves up.
•
Span of management is the number of subordinates, or direct
reports, a supervisor manages. First line managers!
•
Centralization: decision making is retained at the top of the
management hierarchy.
•
Decentralization: decision making is located at the lower levels.
Many firms believe it enhances their flexibility and responsiveness
to customer needs.
Adeyl Khan, Faculty, BBA, NSU
Types of Organization Structures
 Line Organizations
• Oldest and simplest form; direct flow of authority from
CEO to subordinates.
• Chain of command indicates who directs which activities
and who reports to whom.
 Line-and-Staff Organizations
• Combines line departments and staff departments.
• Line departments participate directly in decisions that
affect the core operations of the organization.
• Staff departments lend specialized technical support.
Adeyl Khan, Faculty, BBA, NSU
Adeyl Khan, Faculty, BBA, NSU
Committee Organizations
• Authority and responsibility are in the hands of a
group of individuals.
• Often part of a line-and-staff structure.
• Often develop new products
•
Different departments work together.
• Tend to act slowly and conservatively.
• Often make decisions by compromising conflicting
interests rather than choosing best alternative.
Adeyl Khan, Faculty, BBA, NSU
Matrix Organizations
•
Project management structure that links employees from different parts
of the organization to work together on specific projects.
•
Employees report to a line manager and a project manager.
Advantages:
 Flexibility in adapting to
changes.
 Focus on major problems or
products.
 Outlet for employees’ creativity
and initiative.
Adeyl Khan, Faculty, BBA, NSU
Challenges:
 Integrating skills of many
specialists into a coordinated
team.
 Employee frustration and
confusion over reporting to two
bosses.
Adeyl Khan, Faculty, BBA, NSU
Adeyl Khan, Faculty, BBA, NSU
29
1 Define management and
2
the skills necessary for
managerial success.
5
Explain the role of vision and
ethical standards.
6 Define leadership and compare
different styles of leadership.
Summarize the benefits of
3 planning and distinguish strategic,
7
tactical, and operational planning.
4
Contrast the types of business
decisions and list the steps in the
decision-making process.
Describe the strategic planning
process.
Adeyl Khan, Faculty, BBA, NSU
8
Discuss the meaning and
importance of corporate
culture.
Identify forms of departmentalization
and types of organization
structures.