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ANNOUNCEMENT
QUIZ 3 DATE: 01 July, 2014 (Tuesday) SYLLABUS: Chapter 06 & 07
ASSIGNMENT 2 TOPIC: Social Business. DEADLINE: 08 July, 2014 (Tuesday)
MID II DATE: 15 July, 2014 (Tuesday) SYLLABUS: Chapter 06 - 10
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Start forming group for your final project.
A group must consist of 5-6 members.
Give me the names of members of your group on next
Thursday. If you do not find a group by yourself, I will
assign you one.
ANNOUNCEMENT
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Chapter 7How the Managerial Hierarchy Operates
within a Business Organization
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What is Management?
Management—process of achieving organizational objectives through people and other resources.
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The Management Hierarchy
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The Management HierarchyTop Management
The highest level of management—chief executive officer, chief financial officer, and executive vice president
Devote most of their time to developing long-range plans
Make decisions regarding new product introduction, the purchase of other companies, or entry into new geographic markets
Set a direction for their organization and inspire the company’s employees to achieve their vision
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The Management Hierarchy
Middle ManagementSecond tier in the management hierarchy –
includes positions like general managers, plant managers, division managers, and branch managers
Attention focuses on specific operations, products, or customer groups within an organization
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The Management Hierarchy
Supervisory ManagementFirst-line management—includes positions
such as supervisor, line manager, and group or team leader
Directly responsible for assigning nonmanagerial employees to specific jobs and evaluating their performance every day
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Managerial FunctionsPlanning—process of anticipating future
events and conditions and determining courses of action for achieving organizational objectives.
Organizing—means by which managers blend human and material resources through a formal structure of tasks and authority
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Managerial FunctionsDirecting—guiding and motivating
employees to accomplish organizational objectives
Controlling—evaluating an organization’s performance and determining whether it is accomplishing its objectives
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Importance of PlanningTypes of Planning
Strategic planning—process of determining the primary objectives of an organization and adopting courses of action in allocating resources to achieve these objectives
Tactical planning—involves implementing the activities specified by strategic plans
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Importance of PlanningTypes of Planning
Operational planning—creates the detailed standards that guide implementation of tactical plans
Contingency planning—allows a firm to resume operations as quickly and as smoothly as possible after a crisis while openly communicating with the public about what happened
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Planning at Different Organizational LevelsTotal time spent and the type of planning done
differ according to the level of management
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The Strategic Planning Process
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The Strategic Planning Process
Defining the Organization’s MissionAssessing Your Competitive PositionSetting Objectives for the
Organization Creating Strategies for Competitive
DifferentiationThe Implementation Phase of
PlanningMonitoring and Adapting Strategic
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SWOT Analysis
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Managers as Decision MakersDecision Making—process of recognizing
a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results.Programmed Decisions involve simple,
common and frequently occurring problems for which solutions have already been determined.
Non-programmed Decisions involve complex and unique problems or opportunities with important consequences for the organization 8-17
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Managers as Decision MakersHow Managers Make Decisions
Many rely on intuition when they lack enough information to determine the probable outcome of a decision
Making good decisions involves taking risks
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Managers as Leaders
Leadership—ability to direct or inspire people to attain organizational goals.Managers as Leaders
Leadership StylesAutocratic leadership—boss makes
decisions on their own without consulting employees
Democratic leadership—involves subordinates in making decisions
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Managers as Leaders
Leadership Styles Free-reign leadership—leader believes in
minimal supervision, leaving most decisions to subordinates
Empowerment—practice in which managers lead employees by sharing power, responsibility, and decision making with them
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Corporate Culture
An organization’s system of values, principles, and beliefs.Home Depot’s corporate culture emphasizes
the importance of employees’ knowledge of the business and their enthusiasm.
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Organizational StructureOrganization—structured grouping of people working
together to achieve common goals.
Organization chart—visual representation of a firm’s structure that illustrates job positions and functions
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Sample Organizational Chart
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Different Forms of Departmentalization within One Company
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Line and Staff Organization
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Matrix Organization
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Organizational Structure
Delegating Work AssignmentsDelegation—act of assigning work
activities to subordinates. Accountability Authority Responsibility
Span of Management (Span of Control)—number of subordinates a
manager can supervise effectively.
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Organizational Structure
Delegating Work AssignmentsCentralization—retains decision-making at
the top of the management hierarchy
Decentralization—locates decision-making at lower levels
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