1. Chapter 11
Management Skills

2. Management Structures 11.1
After finishing this section you will know:
How horizontally organized companies differ from traditionally organized companies
The three levels of management
How a self-managing team functions

3. Vertical Organization
Vertical organization- up and down structure of an organization
Top management- those who make planning decisions that affect the whole company
Middle management- implements the decisions of top management
Supervisory level management- front line managers that supervise the activities of employees who carry out the tasks determined by middle and top management

4. Horizontal Organization
Horizontal organization- self managing teams that set their own goals and make their own decisions

5. Self-Managing Team
Self-managing teams- levels of management have been eliminated and the number of supervisors reduced
This is known as “flattening” the organization

6. Self-Managing Team Here’s how it works:
Each team has an owner- this person is the nearest to the overall manager
Has the responsibility for making sure the team meets its goals
Acts like a coach; not a boss

7. Self-Managing Team
Empowerment- encouraging the team members to contribute to and take responsibility for the management process

8. Organization by Process
Organization by process- self managing teams are organized around particular processes
Teams made up of people with different specializations eliminate the need for functional divisions
Example: people with different backgrounds work together so that different departments don’t have to work on the same project

9. Customer Orientation Vertical organizations- focus is on management
Horizontal organizations- focus is on customer
By focusing on customers rather than production or process, managers have direct access to customer feedback

10. Customer Orientation Results of customer satisfaction include:
Large profits
High productivity
Satisfied investors

11. Assignment
RKT # 1-4
Thinking Critically # 5
Page 193

12. Management Functions 11.2 After finishing this section you will know:
The three functions of management
The management techniques used by effective managers
How to motivate employees through a system of rewards

13. Management Functions
Planning- involves deciding what will be done and how it will be accomplished
Good management planning is realistic, comprehensive, and flexible
Includes plans for short and long-range uses of people, technology, and material resources
To be an effective management tool, the plan should be reduced in written form

14. Management Functions
Organizing- a coordinated effort to reach the company’s goals
Assigning responsibility and establishing working relationships- functions carried out by top and middle management
Staffing- handled by middle management and supervisors

15. Management Functions
The organizing function of large companies can be very complex. There could be:
Hundreds of middle-level managers
Thousands of supervisors
Tens of thousands of employees

16. Management Functions
In horizontal companies: middle management responsibilities are much wider
Because employees are empowered to do much of the organizing, managers are able to advise and trouble shoot rather than give orders

17. Management Functions
Controlling-comparing what you planned with actual performance
Involves three basic activities:
Setting standards
Evaluating performance according to those standards
Solving any problems revealed by the evaluation
Controlling helps to: identify problems and ways to avoid them

18. Management Functions
Mission statement- describes the ultimate goals of a company in a brief paragraph or two
Once standards have been set- managers can use them to evaluate both company and individual goals

19. Effective Management Techniques
Give clear directions- even the best employees won’t be productive if they don’t know what they are expected to do
As a supervisor- give all directions required for each job
You may need to-repeat some of your directions
Encourage employees to- ask questions about your directions

20. Effective Management Techniques
Train employees well- you may train the person yourself or delegate the task to someone else
Choose a person who knows the job well and is a good teacher
Supervise the training to make sure that the new employee understands all job duties
Make new employees feel valued and welcome

21. Effective Management Techniques
Orientation usually includes the following:
Tour of the company and introduction to other workers
Discussion of the company’s history, mission, and values
Description of what the company does

22. Effective Management Techniques
Training on equipment, such as cash registers and computers
Information on where key facilities are located
Information about payroll, benefits, and company policies

23. Effective Management Techniques
Be consistent- if you decide a job must be done a certain way, make sure that all employees follow this standard
Don’t make exceptions unless there is a good reason

24. Effective Management Techniques
Treat employees fairly- always consider the employee’s point of view when making decisions
Listen to employee suggestions and consider acting on them
Take time to explain reasoning if you believe an employee is wrong
Set reasonable standards for performance and apply those standards to everyone

25. Effective Management Techniques
Be firm when necessary- employee problems that cannot be solved with a friendly approach may need to be handled firmly

26. Effective Management Techniques
Set a good example- do things that you would want your employees to model
Example: arrive to work on time

27. Effective Management Techniques
Delegate responsibility- if you are doing too much work, resources are not being utilized well
As a supervisor, don’t try to do everything yourself
Organize your responsibilities and decide which ones can be done by others

28. Effective Management Techniques
Foster teamwork- encourage team members to step outside their areas of specialty to learn about other aspects of production
Teamwork will not succeed if members believe that some individuals are treated differently

29. Employee Motivation Keep this in mind when you become a manager:
Provide frequent feedback
Identify goals that you employees are working toward
Reward employees who contribute to reaching these goals

30. Leadership in the 21st Century
Management is turning to teams of cooperative leaders who utilize new technology and value customer satisfaction as a top priority

31. Assignment
RKT # 1-4
Thinking Critically # 5
Page 202