Welcome to MT140 Introduction to Management

Unit 4 Seminar – Organizing

This seminar is being recorded

Instructor Contact Information

Professor: Dr. Janis McFaul

Home/ Office Phone: 248-449-8319

Email: jmcfaul@kaplan.edu

Office Hours: Monday-Friday from 10:00 a.m. – 4:00 p.m. or by appointment

Kaplan Technical Support: 1-866-348-1196

You don’t need to wait until office hours to contact me! I check my email several times a day and I welcome your telephone calls! If you have a

question, don’t wait! Ask immediately.

Unit 3 Review

• Planning is one of the four primary functions of management.

• Planning involves a systematic process of making decisions about goals and activities that will be carried out by individuals, groups, and the organization.

• Successful management depends on an accurate and thorough evaluation of the organization’s environment.

Unit 3 Review (Continued) The Planning Process Step 1.

Analyze the Situation

The Planning Process Step 2.Generate Alternative Goals and Plans

The Planning Process Step 1.Analyze the Situation

The Planning Process Step 3.Evaluate Goals and Plans

The Planning Process Step 4.Select Goals and Plans

The Planning Process Step 5.Implement the Goals and Plans

The Planning Process Step 6.Monitor and Control Performance

File NamesThe Kaplan File Naming Convention

• YourName_Assignment_Unit#

• JimSmith_Homework_Unit4

• Notice that this is not: jsmith or even jimsmith

• Notice that this is not assignment, or MT140 or others

• Beginning next unit, I will begin deducting points for incorrect file names.

Levels of Planning and Goals

• Strategic Goals: Major long-term targets or results relating to the firm’s long-term survival, value, and growth. These are set by the firm’s highest level of management.

• Strategic Plans: Action plans to support the strategic goals. These usually cover the entire firm and are implemented by top management.

Levels of Planning and GoalsContinued

• Tactical Planning: Translates the broad strategic goals and plans into specific goals and plans usually for a specific area of the firm such as department or division. These often involve middle level management and are not as long-range as the strategic goals and plans.

Levels of Planning and GoalsContinued

• Operational Planning: Shorter-range plans that address specific procedures and processes to ensure success of the tactical goals and plans and in turn, success of the strategic goals and plans. This usually occurs at lower levels of the organization and often involves first-level managers (supervisors).

• All levels of planning must be consistent and in agreement to be successful! It is a hierarchical process!

SWOT Analysis

• The SWOT Analysis is a useful strategic planning tool. It allows the user to visualize the strengths, weaknesses, opportunities and threats facing the business.

• Strengths and Weaknesses: Refer to internal resources of the firm; what the firm does especially well and in what areas the firm is weaker.

• Opportunities and Threats: Refer to those elements in the macroenvironment and the competitive environment that could represent a competitive opportunity or pose a competitive risk for the firm.

Agenda

• General Questions and Announcements• Introduction• Organizational Structures / Q & A• Levels of Authority within a Business / Q & A• Delegation /Q & A • Conclusion of Seminar

Unit 4 Objectives

During this unit we will:• Identify characteristics of vertical and horizontal organizational

structures. • Identify levels of authority in an organization.

• Discuss delegation.

Key Concepts

• Organizing is one of the primary functions of management.

• Organizational structures have vertical and horizontal dimensions, each having unique characteristics.

• The organization chart depicts the positions in the organization and the way they are arranged.

• Delegation is a fundamental feature of management at every level of management.

Organizational Structures

• Two Broad Structures:

- Mechanistic Structures: Intended to promote internal efficiency. A formal structure.

- Organic Structures: Depend heavily on informal structures of employee networks. A more flexible and changeable form.

• Differentiation versus Specialization:

- Differentiation is created by division of labor and job specialization.

- Work specialization refers to an organizational structure that is composed of many different units that work on many different kinds of tasks, using different skills and work methods.

Vertical Organizational Structures (Continued)

• Two dimensions to an organization’s structure: Vertical and Horizontal.

• 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.

Vertical Organizational Structures (Continued)

• 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.

• 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.

Horizontal Organizational Structures(Continued)

• A firm may be subdivided by:

- Functions: Like production, human resources, accounting, etc.- Divisions: To reflect diverse firm needs. Each division having

its own functional subunits. - Matrix: A hybrid form combining both functional and divisional

characteristics. Involves multiple reporting relationships.- Network: A collection of mostly single-function firms that

collaborate to produce a good or service.

Organizational Chart Illustrated(Sandwich Blitz, Inc.)

Any questions ?

HOMEWORK REVIEW – WEEK 4

READING• This week's required reading is from Chapter 6 in the Bateman

and Snell text pp. 122-134. • In this chapter we will discuss how businesses are structurally

organized and why. We will examine how the way a business is organized structurally determines how decisions are made, how employees interact, and how the company is managed.

HOMEWORK REVIEW – WEEK 4DISCUSSION QUESTION• 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?

HOMEWORK REVIEW – WEEK 4

DISCUSSION QUESTION

To earn 100% - you must quote you textbook!

From your syllabus:Clarity and Organization of Writing (20%) of your post will be measured on

the following criteria:Posts were organized and  logical No spelling or grammatical errors

References were used and cited properly

HOMEWORK REVIEW – WEEK 4ASSIGNMENTMT140 Unit 4 Assignment • MT140 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.

HOMEWORK REVIEW – WEEK 4ASSIGNMENTMT140 Unit 4 Assignment:

After reading the scenario above 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?

4. List the levels of authority (management) that Sandwich Blitz, Inc. would have if

the new position is created.

See Org Chart provided

HOMEWORK REVIEW – WEEK 4

ASSIGNMENTMT140 Unit 4 Assignment Submit Assignment 4 to the Dropbox • Draft your Assignment paper of at least several paragraphs or more in MS Word format. Be sure your paper is well written in

paragraph form, with correct spelling, grammar, and punctuation. Name your file according to the Kaplan file-naming convention.

Submit your Assignment to the correct unit Dropbox for grading before the close of the unit as an attachment. • 1.           Go to the Dropbox to submit your saved file.    • 2.           Click the link that says 'Submit an Assignment'. • 3.           In the 'Submit to Basket' menu, select Unit 3: Assignment. • 4.           In the optional 'Comments' field, type any additional information you wish your instructor to see. • 5.           Click the button that says 'Add Attachments'. • 6.           Follow the steps listed to complete attaching your file. • You will be able to come back to the Dropbox and view your graded work or in the Gradebook after your instructor evaluates it.

HOMEWORK REVIEW – WEEK 4

REVIEW QUIZMT140 Unit 4 Assignment Tips for success…read your chapter twice!

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.

Thank You for Joining Me This Evening!

Good Night All!

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September 2008

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