Chapter 11 Management Skills2 SECTION 11.1 Management Structures Why It's Important You will probably have an opportunity to work in management at some point in your career—maybe earlier than you might think. Management involves communication and interpersonal skills. A job in management is a challenge for anyone, and a basic understanding of management structure and functions, presented in this section, will give you an advantage.
Chapter 11 Management Skills4 SECTION 11.1 Management Structures Management is the process of reaching goals through the use of human resources, technology, and material resources. To facilitate effective management, businesses are organized in two ways: vertically horizontally Types of Management Structures
Chapter 11 Management Skills5 SECTION 11.1 Management Structures Vertical Organization There are three levels of management in vertically organized companies: top management middle management supervisory-level management Slide 1 of 4
Chapter 11 Management Skills6 SECTION 11.1 Management Structures Vertical Organization Top management are those who make the planning decisions that affect the whole company. Top management job titles include: Chief Executive Officer President Chief Operating Officer Vice President Slide 2 of 4
Chapter 11 Management Skills7 SECTION 11.1 Management Structures Vertical Organization Middle management implements the decisions of top management. They communicate with and support supervisory- level managers. Slide 3 of 4
Chapter 11 Management Skills8 SECTION 11.1 Management Structures Supervisory-level management supervises the activities of employees who carry out the tasks determined by the plans of middle and top management. They assign duties and evaluate the work of production or service employees. Vertical Organization Slide 4 of 4
Chapter 11 Management Skills9 SECTION 11.1 Management Structures Horizontal organization involves self-managing teams that set their own goals and make their own decisions. This type of management structure is organized by process instead of function and is customer-oriented. Horizontal Organization Slide 1 of 4
Chapter 11 Management Skills10 SECTION 11.1 Management Structures Self-Managing Teams Instead of reporting up a chain of command, employees are organized into teams that manage themselves. Each team has an "owner" who has ultimate responsibility for ensuring the team meets its goals. He or she acts like a coach. Horizontal Organization Slide 2 of 4
Chapter 11 Management Skills11 SECTION 11.1 Management Structures Organization by Process Teams of people with different specializations are organized around processes, such as developing new products or providing customer support. Team members share opinions, decisions, and responsibility for the team's success or failure. Horizontal Organization Slide 3 of 4
Chapter 11 Management Skills12 SECTION 11.1 Management Structures Customer Orientation Teams get their direction from the customer, rather than from management. Customer satisfaction should produce large profits, high productivity, and satisfied investors. Horizontal Organization Slide 4 of 4
Chapter 11 Management Skills14 SECTION 11.2 What You'll Learn The four functions of management The management techniques used by effective managers How to motivate employees through a system of rewards Management Functions
Chapter 11 Management Skills15 SECTION 11.2 Management Functions Why It's Important The concept of management is changing. It is allowing more employees to fulfill management functions, whatever their job titles. Understanding the functions of management will help you to excel in any career you choose.
Chapter 11 Management Skills16 SECTION 11.2 Management Functions All managers perform certain basic functions: What Managers Do planning organizing Controlling Leading
Chapter 11 Management Skills17 SECTION 11.2 Management Functions Investigate All Options All management functions involve making decisions. In order to reach wise decisions on complex questions, it’s important to consider all the options. A process like this can help assure that decision-makers not leave out important considerations. What could happen if the problem is not well defined at first? How will these steps help you make decisions in your own life?
Chapter 11 Management Skills18 SECTION 11.2 Management Functions Planning Planning involves deciding what will be done and how it will be accomplished. Good management planning is realistic, comprehensive, and flexible. It includes plans for the short- and long-range uses of people, technology, and material resources.
Chapter 11 Management Skills19 SECTION 11.2 Management Functions Organizing Organizing is a coordinated effort to reach a company's planning goals. It involves: assigning responsibility establishing working relationships staffing directing the work of employees
Chapter 11 Management Skills20 SECTION 11.2 Management Functions This chart shows a company organized along traditional vertical lines. How would the chart differ if the company were organized horizontally? Vertical or Horizontal President Vice President Information Systems Vice President Research and Development Department Vice President Manufacturing Department Vice President Marketing Department Vice President Accounting and Finance Department Vice President Human Resources Department Manager Product Planning Manager Marketing Research Manager Sales Manager Advertising and Promotion Sales Regions and Representatives
Chapter 11 Management Skills21 SECTION 11.2 Management Functions Controlling is the process of comparing what you planned with actual performance. It involves three basic activities: Controlling Setting standards. Evaluating performance according to those standards. Solving any problems revealed by the evaluation.
Chapter 11 Management Skills22 Mission Statement SECTION 11.2 Management Functions A mission statement is designed to outline the goals and values of a company. Do you think a mission statement helps inspire employees to do their best work for a company? M I S S I O N S T A T E M E N T ederal Express is committed to our PEOPLE-SERVICE-PROFIT PHILOSOPHY. We will produce outstanding financial returns by providing totally reliable, competitively superior global air-ground transportation of high-priority goods and documents that require rapid, time-certain delivery. Equally important, positive control of each package will be maintained utilizing real-time electronic tracking and tracing systems. A complete record of each shipment and delivery will be presented without request for payment. We will be helpful, Courteous, and professional to each other and the public. We will Strive to have a satisfied customer at the end of each transaction. David Bronczek Chairman and CEO F
Chapter 11 Management Skills23 SECTION 11.2 Management Functions The most effective management techniques are usually a matter of common sense: Effective Management Techniques Give clear directions. Train new employees well. Be consistent. Treat employees fairly. Be firm when necessary. Set a good example. Delegate responsibility. Foster teamwork.
Chapter 11 Management Skills24 SECTION 11.2 Management Functions The more people feel appreciated, the harder they will work. Managers should: Employee Motivation Provide frequent feedback and yearly evaluations. Identify goals and reward employees who contribute to those goals. Reward smart work, not busy work. Suggest ways to improve job performance. Encourage creativity. Reward employee loyalty by investing in continuing education for employees and promoting from within.
Chapter 11 Management Skills25 SECTION 11.2 Management Functions The business world is expected to experience many changes in the 21st century, including: Product life cycles will be shorter. There will be fewer projects led by one executive. Marketing and sales will continue to be the fast track to top management. International experience will become increasingly important for advancement. New technology and customer satisfaction will become greater priorities. New leaders will be more culturally diverse. Leadership in the 21 st Century