chapter 11 management skills 1 section 11.1 management structures marketing essentials
TRANSCRIPT
Chapter 11 Management Skills 1
Chapter 11 Management Skills
Section 11.1 Management Structures
Marketing EssentialsMarketing Essentials
Chapter 11 Management Skills 2
SECTION 11.1SECTION 11.1
What You'll LearnWhat You'll Learn
How horizontally organized companies differ from traditionally organized companies
The three levels of management
How a self-managing team functions
Management StructuresManagement Structures
Chapter 11 Management Skills 3
SECTION 11.1SECTION 11.1 Management StructuresManagement Structures
Why It's ImportantWhy It's Important
You will probably have an opportunity to work in management at some point in your career—maybe earlier than you might think. Management involves communication and interpersonal skills. A job in management is a challenge for anyone, and a basic understanding of management structure and functions, presented in this section, will give you an advantage.
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Key TermsKey Terms
vertical organization
top management
middle management
supervisory-level management
horizontal organization
empowerment
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SECTION 11.1SECTION 11.1 Management StructuresManagement Structures
Management is the process of reaching goals through the use of human resources, technology, and material resources. To facilitate effective management, businesses are organized in two ways:
vertically
horizontally
Types of Management Structures
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Vertical Organization
There are three levels of management in vertically organized companies:
top management
middle management
supervisory-level management
Slide 1 of 4
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Vertical Organization
Top management are those who make the planning decisions that affect the whole company. Top management job titles include:
Chief Executive Officer
President
Chief Operating Officer
Vice President
Slide 2 of 4
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Vertical Organization
Middle management implements the decisions of top management. They communicate with and support supervisory-level managers.
Slide 3 of 4
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Supervisory-level management supervises the activities of employees who carry out the tasks determined by the plans of middle and top management. They assign duties and evaluate the work of production or service employees.
Vertical Organization
Slide 4 of 4
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Horizontal organization involves self-managing teams that set their own goals and make their own decisions. This type of management structure is organized by process instead of function and is customer-oriented.
Horizontal Organization
Slide 1 of 4
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Self-Managing Teams Instead of reporting up a chain of command, employees are organized into teams that manage themselves. Each team has an "owner" who has ultimate responsibility for ensuring the team meets its goals. He or she acts like a coach.
Horizontal Organization
Slide 2 of 4
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Organization by Process Teams of people with different specializations are organized around processes, such as developing new products or providing customer support. Team members share opinions, decisions, and responsibility for the team's success or failure.
Horizontal Organization
Slide 3 of 4
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Customer Orientation Teams get their direction from the customer, rather than from management.
Customer satisfaction should produce large profits, high productivity, and satisfied investors.
Horizontal Organization
Slide 4 of 4
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11.1 ASSESSMENTASSESSMENT
Reviewing Key Terms and Concepts
1. What is the principal difference between the structure of a vertical company and the structure of a horizontal company?
2. What are the three levels of management?
3. Why did many companies choose to downsize in the 1980s and 1990s?
4. What is the role of the "owner" in a self-managing team?
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11.1 ASSESSMENTASSESSMENT
Thinking Critically
Would you feel more comfortable in a traditional company where you answered to only one supervisor or in a horizontal company where you have many people giving you feedback about your efforts? Compare the advantages of each organizational model, as you see them.
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End of Section 11.1
Marketing EssentialsMarketing Essentials