• Encoding – translating a message into understandable symbols or language. The encoding message into words, written or spoken, is verbal communications. We also encode messages without using written or spoken language. Nonverbal communications shares information by means of facial expressions (smiling, raising an eyebrow, frowning), body language (posture, gestures, nods and shrugs), and even style of dress (casual, formal, conservative, trendy).

• Transmission

• Decoding – interpreting and trying to make sense of a message

3.

Communication networks is the pathways along which information flows in groups and teams and throughout the organization

Wheel network:

Chain network:

Circle network:

All-channel network:

4.

Communication Skills for Managers as Senders:

• Send messages that are clear and complete

• Encode messages in symbols that the receiver understands

• Select a medium that is appropriate for the message

• Select a medium that the receiver monitors

• Avoid filtering and information distortion

• Ensure that a feedback mechanism is built into messages

• Provide accurate information to ensure that misleading rumors are not spread

Communication Skills for Managers as receivers:

• Pay attention

• Be a good listener

• Be empathetic

Topic 5. The Manager as a Decision Maker

1. Decision making is the process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and courses of action.

Programmed decision making is a routine, virtually automatic decision making that follows established rules or guidelines.

Nonprogrammed decision making is a nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats.

Classical decision making model is a prescriptive approach to decision making based on the assumption that the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action.

Administrative model is an approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions.

Risk is the degree of probability that the possible outcomes of a particular course of action will occur

Uncertainty – unpredictability.

2.

Steps in the Decision Making Process:

• Recognize the need for a decision

• Generate alternatives

• Assess alternatives

• Choose among alternatives

• Implement the chosen alternatives

• Learn from feedback

3.

Organizational learning is the process through which managers seek to improve employees’ desire and ability to understand and manage the organization and its task environment.

Creativity is a decision maker’s ability to discover original and novel ideas that lead to feasible alternative courses of action.

Brainstorming is a group problem solving technique in which managers meet face-to-face to generate and debate a wide variety of alternatives from which to make a decision.

Nominal group technique a decision making technique in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.

Delphi technique is a decision making technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader.

Topic 6. The Manager as a Planner and Strategist

1. Planning is identifying and selecting appropriate goals and courses of action.

Strategy is a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.

Steps in Planning:

• Determining the organization’s mission and goals

• Formulating strategy

• Implementing strategy

Levels of Planning:

• Corporate-level plan

• Business-level plan

• Functional-level plan

Corporate-level strategy is a plan that indicates in which industries and national markets an organization intends to compete.

Business-level strategy is a plan that indicates how a division intends to compete against its rivals in an industry.

Functional-level strategy is a plan that indicates how a function intends to achieve its goals.

Scenario planning is the generation of multiple forecasts of future conditions followed by an analysis of how to respond effectively to each of those conditions; also called contingency planning.

2.

Mission statement is a broad declaration of an organization’s purpose that identifies the organization’s products and customers and distinguishes the organization from its competitors.

SWOT analysis is a planning exercise in which managers identify organizational strengths (S), weaknesses (W), environmental opportunities (O), and threats (T).

3.

Corporate-level strategies:

• Concentration

• Diversification – expanding operations into a new business or industry and producing new goods or services

• International expansion

• Vertical integration

4.

Business-level strategies:

• Low-cost strategy - driving the organizations costs down below the costs of its rivals

• Differentiation strategy – distinguishing an organization’s products from the products of competitors in dimensions such as product design, quality, or after-sales services

• “stuck in the middle”

Topic 7. Managing Organizational Structure.

1. Organizational structure is a formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals.

Organizational design is the process by which managers make specific organizing choices that result in a particular kind of organizational structure.

Functional structure is an organizational structure composed of all the departments that an organization requires to produce its goods or services.

Divisional structure is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer.

Product structure is an organizational structure in which each product line or business is handled by a self-contained division.

Market structure is an organizational structure in which each kind of customer is served by a self-contained division; also called customer structure.

Geographic structure is an organizational structure in which each region of a country or area of the world is served by a self-contained division.

Matrix structure is an organizational structure that simultaneously groups people and resources by function and by product.

Product team structure is an organizational structure in which employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his or her direct subordinates.

Hybrid structure is the structure of a large organization that has many divisions and simultaneously uses many different organizational structures.

2.

Authority is the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.

Hierarchy of authority is an organization’s chain of command, specifying the relative authority of each manager.

Line manager is someone in the direct line or chain of command that has formal authority over people and resources lower down.

Staff manager is a manager responsible for managing one of specialist functions, like finance or marketing.