Copyright © 2013 Pearson Education, Inc.

1-1
Publishing as Prentice Hall

Management, Leadership, and

the Internal Organization
Chapter 7
 Learning Objectives
2

Define management and the three types Contrast the types of business
1 of skills necessary for managerial 5 decisions and list the steps in the
success. decision-making process.

Explain the role of vision and ethical Define leadership and compare
2 standards in business success. 6 different styles of leadership.

Summarize the benefits of planning and Discuss the meaning and

3 distinguish strategic, tactical, and importance of corporate culture.
7
operational planning.
Identify the five major forms of
4 Describe the strategic planning process. departmentalization and four main
8 types of organization structures.
 What is Management?
3

Management is the process



of achieving organizational
objectives through people
and other resources
4

they can
 What is Management?
5

 The critical role of a manager is to

ensure that a company’s many
moving parts are all working
properly together. Without this
integration, problems can arise
and issues can “fall through the
cracks.”
 LEVELS OF MANAGEMENT
6

 Top management
 Middle management

 supervisory management
 Top Management
7

 Develop long-range
strategic plans for the
organization.
 Inspire executives and
employees to achieve
their vision for the
company’s future.
 Intense and
demanding
 Middle Management
8

 Focus on specific
operations, products,
or customer groups
within an organization
 Responsible for
developing detailed
plans and procedures
to implement the firm’s
strategic plans.
 Supervisory Management
9

 Implement the plans

developed by middle
managers.
 Responsible for non-
managerial employees.
 Motivate workers to
accomplish daily,
weekly, and monthly
goals.
 Skills Needed for Management Success
10

 Technical Skills
 Ability to understand and use the techniques,
knowledge, tools, and equipment of a specific
discipline or department.
 Human Skills
 Ability to communicate, build rapport, collaborate,
motivate, and lead employees to meet organizational
goals through individual and team assignments.
 Conceptual Skills
 Ability to see the organization as a unified whole and
to understand how each part of the overall organization
interacts with other parts.
 Managerial Functions
11
 Planning
 Process of anticipating future
events and conditions and
determining courses of action
for achieving organizational
objectives.
 Organizing
 Blending human and material
resources through a formal
structure of authority.
 Directing
 Guiding and motivating
employees to accomplish
organizational objectives.
 Controlling
 Evaluating an organization’s
performance to determine
whether it is accomplishing
its objectives.
 Establish performance
standards.
 Monitor actual performance.
 Compare actual performance
with established standards.
 Take corrective action if
required.
 Importance of Planning
14

 Plans outline the steps the company will take to meet

outlined goals and objectives.
 Planning is categorized by scope and breadth
 long range

 short range and very narrow

 Planning can be divided into:

 Strategic

 Tactical

 Operational

 Contingency
 Planning at Different
Management Levels
15
 Assessing Competitive Position
18

 To determine the firm’s current or potential position

in the marketplace, a SWOT analysis is conducted.
 By systematically evaluating:
 Strengths

 Weaknesses

 Opportunities

 Threats,

 a company can develop the best strategies for

gaining a competitive advantage
 SWOT Analysis
19
 Managers as Decision Makers
23

 Decision making is the process of recognizing a

problem or opportunity, evaluating alternative
solutions, selecting and implementing an alternative,
and assessing the results.
 Programmed decision involves simple, common
problems with predetermined solutions.
 Nonprogrammed decision involves a complex,
unique problem or opportunity with important
consequences for the organization.
 How Managers Make Decisions
24
 Managers as Leaders
25

 Leadership is the ability to direct or inspire people to attain

certain goals.
 Three traits are common among many leaders:
 Empathy
 Self-awareness
 Objectivity in dealing with others
 Leadership involves the use of influence or power
from the following sources:
 A leader’s position in the company
 A leader’s experience and expertise
 A leader’s personality
 Case Study
26

 Khadija loves clothes. She wishes she could have all

the designer clothes she wants. Unfortunately, she
can’t; she has two brothers and three sisters, and her
parents cannot afford to buy all their children designer
clothes.
 Khadija has a few friends that have some designer
jeans. Her friends let her borrow the jeans, even
though this is against her parents’ wishes. Her parents
felt that Khadija should not borrow them in case
something were to happen to them. In that case, they
would need to purchase an outfit to replace the
damaged one.
 Case Study
27

 One day on the way home from school, Khadija tripped

and fell on her knees. She tore holes in both knees of
the designer jeans she had borrowed from her friend,
Javeria. Khadija was crying, not only because she had
injured her knees, but because the new jeans were
ruined and they weren’t even hers.
 What is Khadija going to do? Should she tell her
parents? Should she tell Javeria? What decisions
should Khadija have made prior to borrowing the
jeans? Does Khadija have an obligation to Javeria?
 Case Study
28

 Requirement. What is your decision? Follow the

process of decision making as discussed in the
class.
 Managers as Leaders

Billionaire fashion
designer Ralph
Lauren
recently picked Old
Navy and H&M
veteran
Stefan Larsson as his
successor to run the
Ralph
Lauren Corporation.
 Leadership Styles
30

 Autocratic Leadership
 Make decisions on own without
consulting employees
 Democratic Leadership
 Involve employees in decisions,
delegate assignments, and ask
employees for suggestions
 Laissez Faire Leadership
 Leave most decisions to employees
 Corporate Culture
31

 Corporate Culture : Organization’s system of

principles, beliefs, and values.
 Managers use symbols, rituals, ceremonies, and
stories to reinforce corporate culture.

Copyright  2017 John Wiley & Sons, Inc.

 Departmentalization
32

 Process of dividing work activities into units within the

organization
 Product departmentalization: organized based on the goods and
services a company offers.
 Geographical departmentalization: organized by geographical
regions within a country or, for a multinational firm, by region
throughout the world.
 Customer departmentalization: organized by the different types of
customers the organization serves
 Functional departmentalization: organized by business functions
such as finance, marketing, human resources, and production.
 Process departmentalization: organized by work processes
necessary to complete production of goods or services

Copyright  2017 John Wiley & Sons, Inc.

 Departmentalization

Consumer products
giant, Procter &
Gamble, targets its
products to different
types of customers.
Products range from
laundry detergent to
diapers to toothpaste.

Copyright  2017 John Wiley & Sons, Inc.

 Delegating Work Assignments
35

 Delegation - assigning work activities to subordinates

 Providing employees with the responsibility and the necessary
authority
 Employees have accountability, or responsibility for the results of
the way they perform their assignments.
 Authority and responsibility move down
 Accountability moves up
 Span of management is the number of subordinates, or direct
reports, a supervisor manages.
 Centralization: decision making is retained at the top of the
management hierarchy.
 Decentralization: decision making is located at the lower
levels. Many firms believe it enhances their flexibility and
responsiveness to customer needs.
Copyright  2017 John Wiley & Sons, Inc.
 Organizational Structures
36

 Organization: structured grouping of people working together

to achieve common goals.
 Three key elements:
 Human interaction
 Goal-directed activities
 Structure

Copyright  2017 John Wiley & Sons, Inc.

 Types of Organizational Structures
37

 Line Organization

 Line-and-Staff Organizations

Copyright  2017 John Wiley & Sons, Inc.

 Types of Organizational Structures
38

 Line Organization
 Oldest and simplest form; direct flow of authority from
CEO to subordinates
 Chain of command indicates who directs which
activities and who reports to whom.

Copyright  2017 John Wiley & Sons, Inc.

 Organization Chart
39

Copyright  2017 John Wiley & Sons, Inc.

 Types of Organizational Structures
40

 Line-and-Staff Organizations
 Combines line departments and staff departments
 Line departments participate directly in decisions that
affect the core operations of the organization
 Staff departments lend specialized technical support

Copyright  2017 John Wiley & Sons, Inc.

 Line-and-Staff Organizations
41

Copyright  2017 John Wiley & Sons, Inc.

 Committee Organizations
42

 Authority and responsibility are in the hands

of a group of individuals.
 Often part of a line-and-staff structure.

 Often develop new products.

 Tend to act slowly and conservatively.

 Often make decisions by compromising

conflicting interests rather than choosing best
alternative.
Copyright  2017 John Wiley & Sons, Inc.
 Matrix Organizations
43

A structure that links employees

from different parts of the
organization to work together on
specific projects
 Employees report to a line manager
and a project manager.
 The Matrix Organization
44

Copyright  2017 John Wiley & Sons, Inc.

 Matrix Organizations
45

 Advantages
 Flexibility in adapting to changes
 Focus on major problems or products

 Outlet for employee’s creativity and initiative

 Integrating skills of many specialists into a coordinated

team
 Team members’ permanent functional managers must
adjust the employees’ regular workloads

Copyright  2017 John Wiley & Sons, Inc.

 Decision Making Assignment
46

 Given the case in attached document what will be your

decision? Follow the proper procedure as discussed in
the class.