5 Management levels.ppt
- 1. 02/09/2022 02:35 1 Makerere University Business School Strategic Management Course MANAGEMENT LEVELS, DECISIONS & SKILLS
- 2. 02/09/2022 02:35 ABAHO ERNEST 2 Management Levels Corporate level – organisation peak Board of directors Parent Company Business level (business unit level) Strategic business unit is a unit in the organisation which is sufficiently autonomous for it to have a strategy which could be distinct from other units if this were desirable.
- 3. 02/09/2022 02:35 ABAHO ERNEST 3 Management levels - ctd Functional level e.g Production Marketing Finance Research and development Human resources and administration Operational level Subsections e.g a production line
- 4. 02/09/2022 02:35 ABAHO ERNEST 4 Board of Directors Has ultimate legal authority Responsible to shareholders for: Ensuring management continuity Protecting resources Prudent actions in relation to corporate objectives Approving major Financial and operational decisions of managers. Maintaining, revising and enforcing corporate charter and by-laws.
- 5. 02/09/2022 02:35 ABAHO ERNEST 5 Board membership Membership requirements Knowledge of some functions e.g operations Business acumen Industry perspective “Inside board” – comprised of top managers Traditional Risk of ratifying their own decisions “Outside board members” Stakeholders in shareholders interests Represent minority group
- 6. 02/09/2022 02:35 ABAHO ERNEST 6 Board membership - ctd Now increasingly active due to: • Increasing charges on directors for failure • Legislation in some countries • Increase in audit requirements Director jobs are increasingly becoming un- attractive because of accountability.
- 7. 02/09/2022 02:35 ABAHO ERNEST 7 The General Manager GMs are key players in strategic management Executives at enterprise pinnacle or SBUs Responsible for survival and success Common titles: Chairman (of the board) President (or Senior VP, Exec. VP, VP) Managing Director Chief Executive Officer General manager
- 8. 02/09/2022 02:35 ABAHO ERNEST 8 GMs Skill requirements More conceptual skills Organisational skills Analytical skills Design & planning skills Critical thinking skills Human relations & interpersonal skills General skills rather than specialised skills Less need for technical abilities
- 9. 02/09/2022 02:35 ABAHO ERNEST 9 GM Roles – Mintzberg’s List Interpersonal roles Symbolic figure head of the organisation Ceremonial duties – legal or social Staffing, training and motivating Informational roles Disseminator to outsiders & insiders Spokesperson Monotor – reads reports, makes tours, observes meetings seeking information
- 10. 02/09/2022 02:35 ABAHO ERNEST 10 Roles Continued Decision roles: Entrepreneur – strategic functions to start projects Disturbance handler Correct problems Solve crises Resource “allocator” Authorise budgets Approve allocation requests for • Human resources, Monetary resources, Material resources Negotiator- signs contracts with Trade unions Big suppliers Big customers
- 11. 02/09/2022 02:35 ABAHO ERNEST 11 GM roles – non strategic Have other work, day to day Tend to get trapped in these jobs Because of short term results Less emphasis on strategic roles leads to lack of innovation
- 12. 02/09/2022 02:35 ABAHO ERNEST 12 Business Level Strategic business unit managers Corporate planners Consultants Roles SBU executives may set strategies for their units / businesses Roles are generally similar to top level managers but for their units Create multiple strategies on a contingency basis
- 13. 02/09/2022 02:35 ABAHO ERNEST 13 SBU Executive skills Entrepreneurial skills Develop new ventures Detailed planning skills Expertise in strategic planning They share skill requirements with top level managers
- 14. 02/09/2022 02:35 ABAHO ERNEST 14 Middle / Tactical/ Functional level Roles Receive from top – policies, goals Interpret for subordinates for action Policy implementers Take un-structured tactical decisions Structure them, guide lower levels for implementation Examples of tactical decisions Customers (in general) to be given credit Products / services for specific markets
- 15. 02/09/2022 02:35 ABAHO ERNEST 15 Functional level skill requirements More inter-personal skills such as Assertiveness Conflict management Facilitation and meeting Negotiation Motivation & influencing skills Mentoring / coaching Networking
- 16. 02/09/2022 02:35 ABAHO ERNEST 16 Supervisory / Operational Level Doers, managers who actually supervise the work Direct, control the work Provide main contact between management and workers Take structured / programmed decisions Decisions at this level
- 17. 02/09/2022 02:35 ABAHO ERNEST 17 Operational decisions - examples Assigning operational tasks Allocating equipment, tools for use Deciding which suppliers to be on the approved list Scheduling reporting time Approving leave Determining inventory re-order levels
- 18. 02/09/2022 02:35 ABAHO ERNEST 18 Operational level skills requirements Technical skills Inter-personal skills Skills of other (higher levels) but of less importance