management1.6

MANAGEMENT

GROUP 1Lena Affaneh, Paul Bujak, Lindsay Iwan, Ewa

Jaszczyk, and Christianne Montgomery

Overview• Leadership • Decision Making• Organizational Culture and Design• Organizational Charting• Planning• Motivation• Controlling • Decision Making• Ethics

Management

• A Brief A process that is used to accomplish organizational goals; that is, a process that is used to achieve what an organization wants to achieve. Overview of Management needs to be explained and defined.

“SUCCESSIS TO BE MEASURED NOT SO

MUCH BY THE POSITION THAT ONE HAS REACHED IN LIFE AS BY THE OBSTACLES

WHICH HAVE BEEN OVERCOME WHILE TRYING

TO SUCCEED.”BOOKER T. WASHINGTON

Leadership & Management

• Distinction between Management and Leadership

• Perception in the past• Currently viewed in society• “Leaders promote new directions;

management implements them.”

Leadership Styles

BE KNOW DO

• BE a professional• BE a professional who

possess good character traits

• KNOW the four factors of leadership

• KNOW yourself

• KNOW human nature• KNOW your job• KNOW your

organization• DO provide direction• DO implement• DO motivate

FEAR STOPS YOU IN YOUR TRACKS.

Structure

• Is the system tasks, workflows, reporting relationships, and communication channels that link the diverse parts of an organization.

• There are two types of structures in an organization:

• Formal Structure• Informal Structure

Organizing- To create Structures

Organizing- To create structures.

-Divide up the work-Arrange resources-Coordinate activities

Leading-To inspire effort

Controlling-

To ensure results

Planning-

To set the direction

Benefits of Structure• Structure dictates how objectives and policies will

be established.– Objectives and policies established under a geographic

organizational structure are couched in geographic terms.– Objectives and policies are stated largely in terms of

products in an organization whose structure is based on product groups.

• Structure dictates how resources will be allocated. – Ex.. if an organization structure is based on customer

groups, then resources will be allocated in that manner.– If an organizations structure is set up along functional

business lines, then resources are allocated by functional areas.

Strategy & Structure• Lead to changes in organizational structure.

– Structure should be designed to facilitate the strategic pursuit of a firm and follow the strategy.

– Without a strategy or a mission, companies find it difficult to design an effective structure.

• Structure can and does influence strategy. Strategies formulated must be utilized and workable.

• If a certain new strategy required massive structural changes it would be an attractive choice. – Structure can shape the choice of strategies.

• This is by determining what types of structural changes are needed to implement new strategies and how these changes can be best accomplished.

Management & Structure

• Organizing– Arranging people and your resources working

together to accomplish a goal. – Involves both dividing up the tasks to be

performed and coordinating results to achieve a common purpose.

Organizational Culture & Design• Competition, problems and opportunities in the market place require a

flexible and well-integrated workforce in order to deliver high-quality products/services while achieving innovation for the future of the company.

•The key to success is finding the best design to master the needs and challenges of an organization.

Organizational Culture• System of shared beliefs and values that develop within an organization

and guide the behavior of it members.

• Shape Attributes.

• Reinforce Common Beliefs.

• Direct Behaviors.

• Establish Performance Expectations.

• Create Motivation.

Organizational Culture

Organizational Design

Bureaucratic Design• The process of aligning organizational structures and cultures to best serve the • organization’s mission, strategy and objectives. • An organizational form that is based on logic, order and formal authority.

Adaptive Design (Organizational Design)

• Clear-cut division of labor, strict hierarchy of authority, formal rules and procedures,

• etc.

• A culture that encourages worker empowerment and participation, a culture that

• encourages worker empowerment and participation

Organizational Design• I.E stories, Heroes, Rites, Rituals, and Symbols.

• The culture that is seen and heard when walking around and organization fromcustomer’s viewpoint.

Core Culture

• Emphasize values, innovation, social responsibility, worker involvement, etc. • The culture that is seen and heard when walking around and organization from a

customer’s viewpoint.

Organizational Design

Organizational ChartingOrganizational Charting

• What type of Organization is it?What type of Organization is it?

• What is the Structure of the Organization?What is the Structure of the Organization?

• How does this Structure Function?How does this Structure Function?

• Is this the appropriate Organizational Is this the appropriate Organizational Structure?Structure?

Types of OrganizationsTypes of OrganizationsTraditionalTraditional

• Functional OrganizationFunctional Organization

• DivisionalDivisional

• Matrix StructureMatrix Structure

Functional OrganizationFunctional Organization

• Defined-Members with similar skills creating and Defined-Members with similar skills creating and performing like task while being grouped together.performing like task while being grouped together.

• Description- Each section whether finance, marketing, Description- Each section whether finance, marketing, operations etc is in a silo of it own. operations etc is in a silo of it own.

• Each unit is works separately in achieving Each unit is works separately in achieving organizational goals.organizational goals.

• In theory if each silo is doing its job then the business In theory if each silo is doing its job then the business will be operating successfully.will be operating successfully.

Functional ChartFunctional Chart

Advantages vs. DisadvantagesAdvantages vs. Disadvantages• Advantages-Advantages-• a. Efficient use with economies of scale.a. Efficient use with economies of scale.• b. Training and expertise consistent with assignments.b. Training and expertise consistent with assignments.• c. Quality of technical problem is high.c. Quality of technical problem is high.• d. Training and development within function is superb.d. Training and development within function is superb.• e. One travels via one career path.e. One travels via one career path.

• Disadvantages-Disadvantages-• a. No communication, coordination or problem solving. a. No communication, coordination or problem solving. • b. Each Function develops narrow view point.b. Each Function develops narrow view point.• c. Problems are referred to upper management slows c. Problems are referred to upper management slows

decisions. decisions.• d. Responsibility of cost containment can be blurred.d. Responsibility of cost containment can be blurred.• e. Slow organization unable to move quickly to seize e. Slow organization unable to move quickly to seize

opportunity. opportunity.

Divisional ChartDivisional Chart

• Defined- Different departments work together on a similar Defined- Different departments work together on a similar product, task or customer.product, task or customer.

• Description- Groups work within similar tasks whether it be Description- Groups work within similar tasks whether it be a process, geographic area. Finance, marketing, sales work a process, geographic area. Finance, marketing, sales work within this unit.within this unit.

• Unit doesn’t have silos but specific tasks.Unit doesn’t have silos but specific tasks.

• Divisions allow companies that have basket approach to Divisions allow companies that have basket approach to business limiting decline in an economy that is down.business limiting decline in an economy that is down.

Divisional ChartDivisional Chart

Advantages vs. DisadvantagesAdvantages vs. Disadvantages

• Advantages-Advantages-a. Flexibility in responding to environmental changes. a. Flexibility in responding to environmental changes. b. Improved coordination among departments.b. Improved coordination among departments.c. Responsibility is clear in regards to product or c. Responsibility is clear in regards to product or

service. service.d. Focus of expertise is on specific customers, regions, d. Focus of expertise is on specific customers, regions, or products. or products.e. Greater flexibility In diversification. e. Greater flexibility In diversification.

• Disadvantages-Disadvantages-a. Economies of Scale is reduced.a. Economies of Scale is reduced.b. Unhealthy competition between divisions b. Unhealthy competition between divisions c. Divisions may not focus on the greater good of c. Divisions may not focus on the greater good of

organization. organization.d. Costs increase through duplications of resources.d. Costs increase through duplications of resources.

Matrix OrganizationMatrix Organization

• Defined- Brings together Functional and divisional structure Defined- Brings together Functional and divisional structure to emphasize project and program teams.to emphasize project and program teams.

• Heavy use of permanent cross functional teams integrate Heavy use of permanent cross functional teams integrate cross functional expertise within a divisional structure.cross functional expertise within a divisional structure.

• Members usually are part of two formal groups and have Members usually are part of two formal groups and have two bosses.two bosses.

• Teams are cross functional and work together in solving Teams are cross functional and work together in solving problemsproblems.

Matrix OrganizationMatrix Organization

Advantages vs. DisadvantagesAdvantages vs. Disadvantages

• Advantages-Advantages-a. Large amounts of inter-functional cooperation.a. Large amounts of inter-functional cooperation.b. Considerable amounts of flexibility in meeting changing b. Considerable amounts of flexibility in meeting changing demands. demands.c. Customer service is championed.c. Customer service is championed.d. Better accountability and performance through the usage of d. Better accountability and performance through the usage of project Managers. project Managers.e. Improved problem solving at team level, because of best e. Improved problem solving at team level, because of best information. information.f. Strategy formulation by top brass is focused on because they f. Strategy formulation by top brass is focused on because they

are are freed from battling escalating issues. freed from battling escalating issues.• Disadvantages-Disadvantages-

a. Two boss system set for possible power struggle.a. Two boss system set for possible power struggle.b. Task confusion can arrive because of two bosses.b. Task confusion can arrive because of two bosses.c. Teams may have strong loyalties focusing inward no entire c. Teams may have strong loyalties focusing inward no entire organization. organization.

Recent Developments• Besides the traditional forms newer structures have been formed.

• Team Structuresa. Team whether permanent or temporary are used without hierarchy.

b. There isn’t a formal manager but a team lead

• Network Structurea. Relationships and work is done with outside contractors.b. Organization small but has almost all items outsourced.

• Boundary-less Structure a. Combination of Team and Network structures. b. Organization changing one day from the other.

• These are the future of our respective organizations.

Motivation•Ability•Effort•Desire

Abraham Maslow’s Hierarchy of Needs

Frederick Herzberg’s Two-Factor Theory

Motivators• Achievement• Recognition• Responsibility• Advancement• The work itself

Hygiene Factors

• Salary• Supervision technical• Working conditions• Interpersonal relations• Company policies and

administration

Decision Making• Identify the purpose of

your decision• Gather information• Identify the principles to

judge the alternatives• Brainstorm and list

different possible choices

• Evaluate each choice in terms of its consequences

• Determine the best alternative

• Put the decision into action/execute your plan

• Evaluate the outcome of your decision and action steps

Planning

• Planning: is the process of setting objectives and determining what should be done to accomplish them.

Steps in Planning Process

• Step 1. Define your objectives• Step 2. Determine where you stand vis-à-

vis objectives• Step 3. Develop premises regarding future

conditions.• Step 4. Analyze possible action alternatives• Step 5. Implement the plan and evaluate

results

Types of Planning

• Strategic planning

• Tactical planning

• Contingency planning

Control

• Controlling: is the process of measuring performance and taking action to ensure desired results

Steps in Control Process

• Step 1. Establish objectives and standards• Step 2. Measuring actual performance• Step 3. Comparing results with objectives

and standards• Step 4. Taking corrective action

Types of Controls

• Feed forward controls

• Concurrent controls

• Feedback controls

Ethics

• What is Ethics?

• Moral Principles that set standards of good or bad, or right, or wrong in a person’s conduct or a firms conduct as a whole.

Four Views of Ethical Behavior

Moral-rights view

Does a decision or behavior maintain the fundamental rights of all human beings?

Utilitarian view

Does a decision or behavior do the greatest good for the most people?

Justice View

Does a decision or behavior show fairness and impartiality?

Individualism view

Does a decision or behavior promote one’s long term self-interests?

Ethics in Management’s Decision Making

• Recent Years has been growing recognition of the need to consider ethical issues in decision making.

• Estimated that Two-Thirds of large firms have a code of ethics and 44% of larger firms provide some form of ethics training for their managers. – This interest in being ethical stems partly from a desire to

avoid legal action.• Ethics training programs include statements from the

top officer emphasizing the importance of ethical decision making, corporate code of ethics.

Conclusion

• All topics involved are part of management• Not all are used on a daily bases.• If a manager is able to use and execute these

subjects then they maybe considered good at managing.

• Its an art not a science.