2Management Structures Types of Management StructuresManagement 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 (Top, Middle, Supervisory-Level)Horizontally
3Management Structures Vertical OrganizationTop management are those who make the planning decisions that affect the whole company.Chief Executive OfficerPresidentChief Operating OfficerVice President
4Management Structures Vertical OrganizationMiddle management implements the decisions of top management.Communicate with and support supervisory-level managersSupervisory-level management supervises the activities of employees who carry out the tasks determined by the plans of middle and top management.Assign duties and evaluate the work of production or service employees
5Management Structures Horizontal OrganizationHorizontal organization involves self-managing teams that set their own goals and make their own decisions.Management structure is organized by process instead of function and is customer-oriented
6Management Structures Horizontal OrganizationSelf-Managing TeamsInstead of reporting up a chain of command, employees are organized into teams that manage themselves.Each team has an "owner“ (coach) who has ultimate responsibility for ensuring the team meets its goals.
7Management Structures Horizontal OrganizationOrganization by ProcessTeams 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.
8Management Structures Horizontal OrganizationCustomer OrientationTeams get their direction from the customer, rather than from management.Customer satisfaction should produce large profits, high productivity, and satisfied investors.
9THINKING CRITICALLYWould you feel more comfortable in a traditional company where you answered to only one supervisor or in a horizontal company where you have many people giving you feedback about your efforts? Compare the advantages of each organizational model, as you see them.
10Management Functions What Managers Do All managers perform certain basic functions:planningorganizingcontrolling
11Management 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?
12Management Functions Planning Planning involves deciding what will be done and how it will be accomplished.Good management planning is realistic, comprehensive, and flexible.Includes plans for the short- and long-range uses of people, technology, and material resources.
13Management Functions Organizing Organizing is a coordinated effort to reach a company's planning goals. It involves:assigning responsibilityestablishing working relationshipsstaffingdirecting the work of employees
14Management Functions Vertical or Horizontal PresidentVice PresidentInformationSystemsVice PresidentResearch andDevelopmentDepartmentVice PresidentHumanResourcesDepartmentVice PresidentManufacturingDepartmentVice PresidentAccountingand FinanceDepartmentVice PresidentMarketingDepartmentManagerProductPlanningManagerMarketingResearchManagerSalesManagerAdvertisingand PromotionSales RegionsandRepresentativesThis chart shows a company organized along traditional vertical lines. How would the chart differ if the company were organized horizontally?
15Management Functions Controlling Controlling is the process of comparing what you planned with actual performance. It involves three basic activities:Setting standards.Evaluating performance according to those standards.Solving any problems revealed by the evaluation.
16F Management Functions Mission Statement 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 willStrive to have a satisfied customer at the end of each transaction.David BronczekChairman and CEOA 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?
17Management Functions Effective Management Techniques The most effective management techniques are usually a matter of common sense:Give clear directions.Train new employees well.Be consistent.Treat employees fairly.Be firm when necessary.Set a good example.Delegate responsibility.Foster teamwork.
18Management Functions Employee Motivation The more people feel appreciated, the harder they will work. Managers should: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.
19Management Functions Leadership in the 21st Century 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.
20THINKING CRITICALLYHow could a manager's openness to suggestions from employees influence employee loyalty to a company?