Four functions

Planning

What is planning?
1-Defining goals
2-establishing strategies
3- developing plans

Types of planning :
-Informal: not written down, short-term focus
-Formal: written, specific, and long-term focus

*Essay question:
Why do managers plan?
1-provide direction ( know what to do and what not to do , everything is clear)
2-Reduces uncertainty ( be confidence)
3-Minimizes waste and redundancy (more input less output).
4-Establishes the goals and standards for controlling ( accomplishes the goal effectively )

Goals + strategies= plans

Goals (objectives): desired outcomes or targets ( what you want to achieve)

Plans: documents that outline how goals are going to be met ( how you will achieve the goals )

Types of goals:
1-Financial Goals: try to maximize the profit.
2-Strategic Goals: related to the external environment, competitions
3-Stated Goals versus Real Goals: stated goals :what is written down, real goals: what is actual,
what is happened at the end.
These two types of plans differ because
Types of plans: strategic plans are broad while
operational plans are narrow
1-Strategic plans: plans that apply to the entire organization.
2-Operational plans: plans apply to particular operational area of the organization.
3-Long-term plans: plans with a time frame beyond three years More than one year and less than
4-Short-term plans: plans covering one year or less two years called : mid range plans
5-Specific plans: clear and can’t change ( objective)
6-Directional plans: flexible plans
7-Single-use plans: a one-time plan for specific purpose.
8- Standing plans: ongoing plans , Frequently used
Traditional goal- setting :
The top manager put the plans then flow down through the organization and become subgoals
for each organizational area.

*Essay question:
what is the Downside of Traditional Goal-Setting?
1-lake communications
2- the employees do not know what should to do .
3- the plans and goals not clear
4- each department do different plan
5- each department care about their interests no the organization interests.

Management by objectives (MBO):

a process of setting mutually agreed upon goals and using those goals to evaluate employee
performance

Steps in MBO :
1-determine The organization’s overall objectives and strategies
2-Allocate the major objectives among the departmental units.
3-the unit managers set specific objectives for their units together.
4-all departments members set specific objectives together
5- Action plans, defining how objectives are to be ach.
6- do the plan.
7-provide feedback.
8-give rewards

Planning and Organizational Level:

1-the top managers do the strategic planning .
2-the lower managers do operational planning.
3-the middle manager do the operation and strategic planning equal.

Approaches to Planning:

1- Establishing a formal planning department

2- Involving organizational members in the process( there is no planning department)
,(strong culture because all the employees put the plans together).
 Decision Making

Decision:
-Making a choice from two or more alternatives.
Problem
-A discrepancy between an existing and desired state of affairs.

The Decision-Making Process

1- Identifying the Problem: know what is the problem.
2- Identifying Decision Criteria: factors that important to solve the problems ( cost, risk
outcomes).
3- Allocating Weights to the Criteria: Determine the importance of each criteria.
4- Developing Alternatives: Identifying viable alternatives
5- Analyzing Alternatives: Appraising each alternative’s strengths and weaknesses
6- Selecting an Alternative: Choosing the best alternative (The alternative with the highest
total weight is chosen)( multiply your criteria numbers with the display numbers)
7- Implementing the Alternative : Putting the chosen alternative into action.
8- Evaluating the Decision’s Effectiveness: The soundness of the decision is judged by its
outcomes

Types of decision:
1-Rationality ( by brain) :
- logic
-based on statistic and information
-objective
-the decision maker must know how to analyze information
-the decision maker must have clear goals and plans
- Problem faced is clear and unambiguous
- Decisions are made in the best interest of the organization
- take long time because you have to think and search about the resources

The disadvantages of the rationality:

1-Bound rationality: some people have limit information and don’t know how to analyze
# satisfice: there are no Decision-Making Process, choose any things, minimize efforts
# Escalation of commitment: you do the same mistake again and again.
3- Intuition ( by heart):
- Based on experiences and feelings
- Take sort time , just follow your feelings

Types of problems :
1- Unstructured problems: the new and unusual problems (make unprogrammed decision)
2- Structured problems: familiar problems ( make programmed decision)
 Programmed vs Nonprogrammed Decisions

Characteristic Programmed Decisions Nonprogrammed

Decisions

Type of problem Structured Unstructured

Managerial level Lower levels Upper levels

Frequency Repetitive, routine New, unusual

Information Readily available Ambiguous or incom

Goals Clear, specific Vague

Time frame for solution Short Relatively long

Solution relies on… Procedures, rules, policies Judgment and creati

 Organization Design

Organizing: arranging and structuring work to accomplish the organization’s goals

Organizational structure: the formal arrangement of jobs within an organization
Organizational chart: the visual representation of an organization’s structure

Organizational Design:
A process involving decisions about six key elements

1-Work specialization: dividing work activities into separate job tasks

2-Departmentalization: the basis by which jobs are grouped together.
Functional: Grouping jobs by functions performed (financial, selling ….)
- Product: Grouping jobs by product line ( phones , laptops…..
- Geographical: Grouping jobs on the basis of territory or geography (US, UK…..)
- Process : Grouping jobs on the basis of product or customer flow (cutting, collecting).
-Customer : Grouping jobs by type of customer and needs ( government, ……)
3-Chain of command: the line of authority extending from upper organizational levels to the
lowest levels, which clarifies who reports to whom.
4- Span of control: the number of employees a manager can efficiently and effectively manage
5- Centralization and Decentralization : centralization: the top manager put the plans,
decentralization: all the employees put the plans together.
6- Formalization: how standardized an organization’s jobs are and the extent to which
employee behavior is guided by rules and procedures

Traditional Organizational Design Options:

• -Simple structure: an organizational design with little departmentalization, wide spans

of control, centralized authority, and little formalization

• Functional structure: an organizational design that groups together similar or related

occupational specialties ( the most common one)

• Divisional structure: an organizational structure made up of separate, semiautonomous

units or divisions
 Matrix and Project Structures

• Matrix structure: an organizational structure that assigns specialists from different

functional departments to work on one or more projects
• Project structure: an organizational structure in which employees continuously work on
projects

Mechanistic Versus Organic Organizations

Mechanistic ( not flexible) Organic (flexible)

High specialization ( scientific method) Low specialization

Rigid departmentalization Flexible departmentalization( you can change it )

Clear chain of command Unclear chain of command

Narrow spans of control Wide spans of control

Centralization Decentralization

High formalization Low formalization

 Leadership

• Leader: someone who can influence others and who has managerial authority
• Leadership: a process of influencing a group to achieve goals

Behavioral theories: the behaviors of the good leaders.

Leadership Traits
Trait Description

Drive The leader must have high effort level ,

have a lot of energy.
Desire to lead The leader must like to lead and know how
to lead
Honesty and integrity The leader must be honest, and the
employees trust hem
Self-confidence The leader must be confidence.

Intelligence The leader must be smart and know hot to

take a correct decision
Job-relevant knowledge The leader must have the information and
the knowledge of the organization
Extraversion The leader must be active and sociable .

• Situational Leadership Style (STL): a leadership that focuses on

followers’ readiness
• Readiness: describes the degree to which job assignments are
formalized and structured (readiness= ability + willing)( the ready
to do something)

SLT Leadership Styles Four Stages of Follower Readiness

• Telling (high task–low relationship) R1: both unable and unwilling
• Selling (high task–high relationship) R2: unable but willing
• Participating (low task–high relationship) R3: able but unwilling
• Delegating (low task–low relationship) R4: both able and willing
Behavioral Theories of Leadership

Study Behavioral Dimension Conclusion

University of Iowa 1-Autocratic style: the Democratic style of

leade who decide leadership was most
everything and put the effective.
plans .
2-Democratic style: the
leader who involve the
employees in the decision
making
3-Laissez-faire style:the
leader who lets the group
make the decision
Ohio State 1-Consideration: being High–high leader: a leader
considerate of followers’ high in both initiating
ideas and feelings (concern structure and consideration
of people ) behaviors
2-Initiating structure:
structuring work and work
relationships to meet job
goals( concern of products)

Managerial Grid Concern for people: Leaders performed best

measured leader’s concern with a 9,9 style (high
for subordinates on a scale concern for production and
of 1 to 9 (low to high) high concern for people).
Concern for production:
measured leader’s concern
for getting job done on a
scale of 1 to 9 (low to high)

Transformational/Transactional Leadership

• Transactional leaders: leaders who lead primarily by using social exchanges (or
transactions)

• Transformational leaders: leaders who stimulate and inspire (transform) followers to

achieve extraordinary outcome
 Controlling Activities and Operations

• Controlling: management function that involves monitoring, comparing, and correcting

work performance

Essay question:
Why Is Control So Important?
• Planning ( in the controlling the manager has to measure and compare and take action,
he has to measure the what he did with the standard objectives and these objectives
from the planning function )
• Empowering employees
• Protecting the workplace

Control process: a three-step process of measuring actual performance, the three stepes
depends on the goals and objectives from the planning function.

Essay question: -what we measure?

How and What We Measure? • Control Criteria (What)
– Employees
-how we measure?  Satisfaction : they are happy or not
Sources of Information (How)  Turnover ; the employees leave the
– Personal observation organization quickly, the organization
– Statistical reports must be sable
– Oral reports  Absenteeism: the percentage of the
– Written report absence of the employees
– Budgets
 Costs
 Output ( the results ) ( the profit)
We can also measure the quality , operation and the time
 Types of control

• Feedforward control: you are doing the right thing from the begging , choosing
the right raw materials ( avoid problems from the begging)
• Management by walking around: a term used to describe when a manager is
out in the work area interacting directly with employees
• Feedback control: control that takes place after a work activity is done

All three types of controlling are equally important .

Tools for Measuring Organizational Performance

• Balanced Scorecard
• Is a measurement tool that uses goals set by managers in four areas
to measure a company’s performance:
1-Customer 2-Financial
We measure :Numbers of
We measure: profit
complains The standard : it must be 10%
The standard: It must be 0 (example)
(example)
3-Internal processes 4-innovation
We measure: Quality control numbers of new products
The standard : 100% the standard : 2 new products
(example)
(example)
 Socially-Conscious Management

• Classical view: the managers care only about maximize the profit
• Social obligation: the managers care about the society and the profit (Socioeconomic
view)
• Social responsibility: to do the right things and act in ways that are good for society
(making profit+ take care of the environment)

Essay question:
Arguments For and Against Social Responsibility?

1-For:
-Public expectations (what the people expect from you)
-Long-run profits ( the customers will always buy your products, you will benefit from for
example the recycle )
-Ethical obligation
-Public image
-Better environment

2-Against
-Violation of profit maximization ( when you recycle the plastic for examples the will cost and -
the profit will be less)
-Costs ( the cost will increase)
-more efforts
-More employees more salary

• Green management: managers consider the impact of their organization on the natural
environment

Essay question:
How Organizations Go Green
• Legal (light green) approach ( you only follow the rules)
• Market approach ( you do what the customers want : environmental bag)
• Stakeholder approach ( you do what the stockholder want.)
• Activist approach ( you do what is good for the environment from yourself)

Managers and Ethical Behavior:

• Ethics: principles, values, and beliefs that define right and wrong behavior(‫)اﺧﻼق‬
• Values-based management: the organization’s values guide employees in the way they
do their jobs
• Code of ethics: the values that the organization except from its employees to follow