Introduction to Management Welcome to AB140 Introduction to Management Unit 4 Seminar – Organizing

Agenda General Questions and Announcements Unit 3 Questions Review of what is due in Unit 4 Organizational Structures / Q & A Levels of Authority within a Business / Q & A Delegation /Q & A Conclusion of Seminar 2

Unit 3 RECAP Three Levels of Planning SWOT Strategic Tactical Operational SWOT Strengths Weaknesses Opportunities Threats

Unit 3 Questions

Assignment Questions and Answers There are three graded assignments in Unit 4: Discussion Assignment-40 points Dropbox Assignment-40 points Review Quiz-20 points Reading: Chapter 6 pp. 122–134 5

Unit 4 Discussion Discuss delegation—not just job responsibilities Delegation is the assignment of new or additional responsibilities to a subordinate. When done correctly, the individuals involved know exactly what they are to do, and the chances for success are maximized. Refer to the unit readings in the textbook section on delegation (pp. 126-127). Pick a job or position (paid or unpaid) that you have held in which you delegated to others or had responsibilities delegated to you. Describe your experience with delegation in terms of what went well and why, or what did not go as expected. What could have improved the chances of a successful outcome in that particular situation? Discuss delegation—not just job responsibilities Post by Saturday! Must be at least 100 words. 6

Unit 4 Participation Just saying “I agree” will not receive credit Two responses to your classmates on separate days. Must be substantial Just saying “I agree” will not receive credit Posts must enhance and advance the discussion Utilize the readings and research Messages need to be on-topic 7

Unit 4 Assignment Jack and Jenny have discussed two possible avenues to grow and expand Sandwich Blitz, Inc. One possible strategy would be to franchise locations and another would be to secure venture capital to finance an internal expansion by opening more company-owned shops. Jack feels that he just doesn’t have time to investigate these options because he is spending an increasing amount of his time assisting the location managers. Jenny noted that two of the location managers had exhibited much skill in the management of their locations and perhaps a new position could be added to coordinate with the location managers, thus freeing Jack to work on these larger issues. 8

Unit 4 Assignment (Continued) After reading the scenario and pages 124–125 in Chapter 6 of your textbook under the section on authority, please respond to the following questions: (Please number your responses 1 – 4 according to the four questions below) 1. How would creating a new position between the CEO and the location managers help the business to grow? 2. Is promoting an existing manager the best place to fill this position? If not, what is an alternative source to fill the position? 3. Who within the company should make these decisions? Explain 4. List the levels of authority (management) that Sandwich Blitz, Inc. would have if the new position is created. Use Microsoft Word Due Tuesday! 9

Unit 4 Review Complete readings before attempting the review May be completed during the Unit only! Due Tuesday! Reviews close at midnight! 10

Unit 4 Questions

Unit 4 Outcomes During this unit we will: Identify characteristics of vertical and horizontal organizational structures. Identify levels of authority in an organization. Discuss delegation.

Mgr.- Mrktg and Cust. Service Key Concepts Organizing is one of the primary functions of management. Organizational structures have vertical and horizontal dimensions CEO V.P. Finance/ Acctg. Accountant Mgr.- Mrktg and Cust. Service Manager Production Manager Research Assist. Manager Supply Chain

Vertical Organizational Structures Vertical Structure: Hierarchical lines of authority: Board of Directors Chief Executive Officer Upper Management Team Middle Management First Line Management Span of Control: Determines a manager’s authority.

Centralization/Decentralization Centralized Organization-decisions are made at the top Decentralization: Spreads the decision-making power to lower levels within the organization.

Horizontal Organizational Structures Departmentalization: The subdividing of larger organizations into smaller subunits. Line Departments: Those that have responsibility for the primary activities of the firm. Staff Departments: Those that provide specialized or professional skills to support the line departments.

Functional Organizations CEO Purchasing Manufacturing Marketing Finance Human Resources

Divisional Organizations CEO Division A Operations Marketing Finance Division B

Matrix Organizations CEO Project Manager A Project Manager B Production Manager Production Group One Bosses Production Group Two Bosses Finance Manager Accounting Group One Bosses Accounting Group Two Bosses

Organizational Chart Illustrated (Sandwich Blitz, Inc.)

Unit 4 Questions

Delegation “People often think of delegation as just telling people what to do. But it’s really about creating an opportunity for another, and that is a true gift. I wish I would have learned that earlier in my career.” (Advertising Manager, p. 121) “Delegation is the most important thing about being a manager. It’s so important to learn to trust your staff to follow through with things and to delegate.” (Design Manager, p. 121)

Delegation Delegation: The assignment of authority and responsibility to a subordinate at a lower level in the hierarchy. Responsibility: Means that a person is assigned a task that they are supposed to complete. Accountability: The right of the subordinate’s manager to expect specific performance and to take corrective action if the subordinate fails to do so.

Delegation Scenario Part I Manager A: “Call Tom Burton at Nittany Office Equipment. Ask him to give you the price list on an upgrade for our personal computers. I want to move to a Core 2 Duo processor with 4 gigs of Ram and at least a 500-gigabyte hard drive. Ask them to give you a demonstration of the Vista operating system and Microsoft Office…Invite Cochran and Snow to the demonstration, and let them try it out. Have them write up a summary of their needs…Then prepare me a report with the costs and specifications of the upgrade for the entire department…ask for information on service costs.”

Delegation Scenario Part II Manager B: “I’d like to do something about our personal computer system. I’ve been getting some complaints that the current systems are too slow, can’t run current software, and don’t allow for networking. Could you evaluate our options and give me a recommendation on what we should do? Our budget is around $2500 per person, but I’d like to stay under that if we can. Feel free to talk to some of the managers to get their input, but we need to have this done as soon as possible.”

Advantages of Delegation Manager Able to accomplish more Saves time Develop employees Learn new skills Confidence Importance Organization Managers more effective Jobs completed—more cost effective Subordinates developed-contribute to the company

Delegation is… Delegation is… Delegation is not… Assigning a task to a subordinate Learning something new Used to develop the employee Delegation is not… Usual work responsibilities Covering for someone Used to “get out of work”

Unit 4 Questions

Unit 5 Quiz This is different from your other reviews! 10 questions on Power! Two-hour time limit May be taken once! Due Tuesday Quiz closes at midnight!

See you next week! After this seminar has concluded, there will be a recording in the archives located in the seminar room. It may be selected by date.

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