Organization & Management
Management Functions, Leadership Styles & Business Organization
In This Lesson
Management Functions (POLC)
1. Planning
Setting goals and deciding how to achieve them.
- Setting objectives
- Developing strategies
- Creating action plans
- Allocating resources
Types: Strategic, Tactical, Operational
2. Organizing
Arranging resources and tasks to achieve goals.
- Defining roles and responsibilities
- Grouping activities (departmentalization)
- Establishing authority relationships
- Coordinating efforts
3. Leading
Motivating and directing people toward goals.
- Communicating vision
- Motivating employees
- Building teams
- Resolving conflicts
4. Controlling
Monitoring performance and taking corrective action.
- Setting performance standards
- Measuring actual performance
- Comparing to standards
- Taking corrective action
Leadership Styles
Autocratic Leadership
Leader makes decisions alone without input from subordinates.
Democratic Leadership
Leader involves team members in decision-making process.
Laissez-Faire Leadership
Leader gives full freedom to subordinates with minimal supervision.
Transformational Leadership
Leader inspires and motivates to achieve extraordinary outcomes.
- Idealized influence (role model)
- Inspirational motivation
- Intellectual stimulation
- Individualized consideration
Organizational Structure
Functional Structure
Groups employees by specialized functions.
Departments: Marketing, Finance, HR, Operations, etc.
Best for: Small to medium businesses with limited product lines
Divisional Structure
Groups by product, geographic area, or customer type.
- Product Division (e.g., Electronics, Appliances)
- Geographic Division (e.g., Asia, Europe)
- Customer Division (e.g., Retail, Enterprise)
Matrix Structure
Combines functional and divisional structures; dual reporting.
Challenge: Employees have two bosses
Key Concepts
- Chain of Command: Line of authority from top to bottom
- Span of Control: Number of subordinates a manager supervises
- Centralization: Decision-making at top levels
- Decentralization: Decision-making distributed to lower levels
Human Resource Management
HR Functions
- Recruitment & Selection
- Training & Development
- Performance Management
- Compensation & Benefits
- Employee Relations
- Compliance & Safety
Recruitment Process
- Job Analysis (define requirements)
- Sourcing (find candidates)
- Screening (review applications)
- Interviewing (assess fit)
- Selection (make offer)
- Onboarding (orientation)
Motivation Theories
- Maslow's Hierarchy: Physiological → Safety → Social → Esteem → Self-actualization
- Herzberg's Two-Factor: Hygiene factors (prevent dissatisfaction) vs. Motivators (create satisfaction)
- McGregor's Theory X & Y: X (people avoid work) vs. Y (people are self-motivated)
Performance Appraisal Methods
- Rating Scales: Numerical ratings on criteria
- 360-Degree Feedback: Input from all directions
- MBO: Management by Objectives
- BARS: Behaviorally Anchored Rating Scales