cards 2
Businesses are complex → managers make sure everything works together.
Four main functions of management:
Planning – setting goals and deciding how to achieve them.
Organizing – arranging resources and tasks to reach goals.
Leading & Motivating – guiding people and giving reasons to work hard.
Controlling – checking progress and making adjustments as needed.
All four functions are connected → one affects the others.
Good managers create order and help the business reach goals.
1. Planning
Define goals and how to achieve them.
Must fit with the company vision and mission statements.
Levels of planning:
Strategic: broad goals for 1–5 years (whole company).
Tactical: specific goals for departments (less than 1 year).
Operational: day-to-day tasks for teams.
Contingency plans: “what if” plans to prepare for unexpected events.
2. Organizing
Managers assign resources, tasks, and responsibilities.
As companies grow, constant organization is needed.
3. Leading & Motivating
Leading: guiding people toward goals.
Motivating: giving reasons for employees to do their best.
Different people are motivated differently → pay, promotions, recognition.
Leadership style affects performance and team success.
4. Controlling
Monitoring ongoing activities to make sure goals are met.
Adjust processes if things go off track → like NASA monitoring a rocket.
SWOT Analysis
Tool for strategic planning.
S = Strengths → internal advantages.
W = Weaknesses → internal limits.
O = Opportunities → external possibilities to grow.
T = Threats → external challenges or risks.
Helps managers set goals using strengths and opportunities while minimizing weaknesses and threats.
Types of Managers
Levels:
Top managers: CEO, president – strategic planning.
Middle managers: department heads – tactical planning.
Front-line managers: team leaders – operational tasks.
Areas of specialization: finance, operations, marketing, HR.
Non-traditional roles: some companies use project or product teams instead of traditional hierarchy.
Key Skills for Managers
Conceptual skills: see the big picture, plan strategically.
Technical skills: know the job and tools.
Interpersonal skills: work well with people, lead and motivate.
Different levels need different mixes of skills → top managers need more conceptual, front-line more technical.
Leadership Styles
Autocratic: leader makes decisions alone.
Participative: leader involves team in decisions.
Laissez-faire: leader lets team work independently.
Style should fit situation and team needs.
Managerial Decision Making
Steps:
Identify the real problem (use tools like “5 whys”).
Generate alternatives (use creativity, brainstorming, nominal grouping).
Evaluate options (consider finances, resources, time).
Choose and implement the best solution.
Quality decisions = problem correctly identified + creative solutions + structured evaluation.
Unit 04: Lesson 7 – Creating a Flexible Organization
1. Objectives for Organizing a Business
A business must align structure with strategy.
Example: P&G → changed from geographic to product-based structure for faster innovation.
When designing organization:
Identify work that needs to be done.
Decide who will do it.
Four common objectives:
Efficiency: do tasks with minimum resources.
Control: manage decision-making and quality.
Responsiveness: ability to adapt quickly to feedback or competition.
Empowerment: employees can make decisions → improves morale, creativity, and productivity.
2. Job Design
Structuring tasks into jobs to boost productivity & satisfaction.
Job specialization: dividing tasks into small, specific jobs (assembly line example).
Pros of specialization:
More efficient → workers master tasks.
Less time switching tasks.
Easier training.
Cons: can be boring → lower morale.
Job rotation: move employees between jobs to reduce boredom & develop skills.
Goal: balance specialization and variety for efficiency + engagement.
3. Departmentalization
Group jobs into departments.
Common types:
By function: finance, marketing, operations, HR.
By product: group by products or services.
By location: group by region.
By customer: group by customer types.
4. Centralization vs Decentralization
Centralized: decisions made at top management.
Decentralized: decisions spread across lower levels.
Delegation: giving employees tasks + some authority.
Choice depends on: industry, company goals, need for control vs empowerment.
5. Span of Management
Number of employees reporting to one manager.
Wide span: many employees → flatter organization.
Narrow span: few employees → taller organization.
Factors affecting span:
Nature of tasks (complex or simple).
Skills & experience of employees.
Company goals → control, responsiveness, empowerment.
6. Organizational Structure
Structure = result of organization design.
Shows relationships, responsibilities, and authority.
Types of structure:
Line structure: simple, clear chain of command.
Line-and-staff structure: combines line managers + staff specialists.
Matrix structure: cross-functional teams for projects → flexible & collaborative.
7. Organization Design & Corporate Culture
Corporate culture: shared values, beliefs, norms.
Organization design impacts culture.
Rigid, specialized, centralized → less creative (e.g., McDonald’s).
Varied jobs, decentralized, matrix → more innovative & empowered (e.g., Google).
Informal organization exists → social networks, grapevine.
Can help or hinder the business.
Managers should recognize & respond professionally to informal communication.