Marketing Principles CHAPTER 11 SECTION 1

 Management is the business function of planning, organizing, and controlling all available resources to achieve company goals.  Vertical organization – organizational structure in which the tasks and responsibilities of each level are clearly defined.

 Vertical organization has three basic levels of management: 1.Top management Make decisions that affect the whole company. Manage people and the structure of the company. Set the direction for the company as a whole. Identify resources and methods for meeting goals. Control the systems and structures of the company.

2. Middle management Implements the decisions of top management. Plans how the departments under them can reach top management’s goals. Implementation more than supervision. Monitor the effectiveness of the plans they implement.

3. Supervisory-level management Supervise the employees that actually carry out the plans of top and middle management. Assign duties. Monitor day-to-day activities in their departments. Evaluate the work of production or service the employees.

 Horizontal organization – top management shares decision making with self-managing teams of workers who set their own goals and make their own decisions. Levels of management are eliminated and the number of supervisors reduced. Employees are organized into teams that manage themselves.

Self-management teams: a.Gather information. b.Analyze the information. c.Take collective action. d.Responsible for making decisions. e.Responsible for completing tasks. f.Responsible for coordinating their activities with other groups in the company.

Empowerment – encouraging team members to contribute and take responsibility for the management process. Empowerment reinforces team spirit, contributes to company loyalty, and usually increases productivity and profits. Organization by process – the self-management teams are organized around particular processes.

The teams’ focus is on the customer. With this approach managers have direct access to customer feedback.  Matrix management is a cross between vertical and horizontal types of management. Workers are responsible to a supervisor in their department and to their team. Facilitates placement of employees where they are needed most.