Managerial Roles, Functions, and Organizational Structures
**Managerial Roles, Functions: An Integral Overview**
All managers must be able to think comprehensively, like general managers, in order to make optimal decisions for the company and not only defend their territories within the company. These functions or roles of the manager are placed in three integrated areas:
**Interpersonal**
- Ceremonial Figure: To ensure the representation of the company abroad.
- Motivational Leader: To direct subordinates.
- Liaison: To ensure the link between the public.
**Informational**
- Spokesperson: To act as a spokesperson.
- Disseminator: To communicate the objectives of the organization.
- Monitor: To monitor the implementation of the strategy.
**Decisional**
- Entrepreneur: To initiate change in the organization.
- Disturbance Handler: To solve problems when they occur.
- Resource Allocator: To assign enterprise resources.
- Negotiator: To negotiate with the public.
A short definition of Management can be “the function of getting things done through others” or “getting results through others.” It is a comprehensive process for planning, organizing, and integrating a business or working relationship, which is based on the use of resources to achieve a particular purpose.
General Principles of Management
- Coordination
- Division of labor
- Authority and responsibility
- Discipline
- Unity of command
- Unity of direction
- Subordination of individual interests to the general interest
- Remuneration of staff
- Centralization
- Hierarchy
- Order
- Equity
- Stability of staff tenure
- Initiative
- Esprit de corps (union of staff)
Importance of Management
- Management applies to all types of companies.
- The success of an organization depends directly and immediately on its stewardship.
- Proper management raises productivity.
- Efficient management techniques promote and guide development.
- In large organizations, administration is indisputable and essential.
- In small and medium businesses, the only possibility to compete is through effective management.
Administration Features
- Universality
- Specificity
- Temporal unity
- Hierarchical unity
- Administration pursues a purpose
- It is a means to exert impact on human life
- Generally associated with the efforts of a group
- It is achieved by, with, and through the efforts of others
- It is an activity, not a person or group of people
- Administrative effectiveness requires the use of certain knowledge
- Management is intangible
- Its practitioners are not necessarily the owners
Organization
Organization is to divide and relate the work to achieve the goals. This involves establishing the organizational structure, mapping relationships or connecting lines to facilitate coordination, creating descriptions for each position (indicating responsibilities, relationships, and authority), and setting requirements or qualities required of staff for each post.
It includes identifying required activities, grouping them into areas and jobs, and ranking posts according to functions.
To be observed in a flowchart:
- Authority relations
- Lines of accountability
- Degree of departmentalization
- Level of functionality
- Partnerships
- Staff relations and counseling
- Hierarchical levels
Organizational Classes
According to their Purpose
- Informational: They present only large business units, aiming to give an overview.
- Analytical: They include all units, even small ones, and the relations between them. They are very detailed.
According to their Extension
- General: They show the entire structure of the company.
- Detailed: They focus on a particular part.
According to their Content
- Structural: They present only the various units that make up the company.
- Functional: They show the content of each unit.
- Personal: They explain the name and title of each person.
According to their Form
- Horizontal: The most authoritative units are located on the left.
- Vertical: The most authoritative units are located in the upper position.
- Radial: They are less common. They try to create a visual impact to highlight the highest levels of management.
Departmentalization
- Departmentalization by Function: Business functions are defined and differ by the type of activity that is done, for example, production, finance, marketing, or human resources.
- Departmentalization by Domain: Grouping is done based on geographical areas, since in many cases they have special features.
- Departmentalization by Product Type: Sometimes, products have many differences, both in production and marketing, so it is advisable to create special departments for product groups.
- Market Sector Departmentalization: The development of a product is dependent on many times, that must pass through various phases, which may be desirable to group together into departments.
Staff in the Organization: One of the drawbacks of the online organization is that each manager has, under its responsibility, a variety of activities in which they may not be an expert. To solve this problem, staff departments are created, which technically support management.
Functional Relationships in the Organization: Staff are located within the establishment at the extremities of the post which they directly advise. They are separated by a dotted line and have no subordinate level of command over the members of the entity.
Historical Moments in Management Theory
Classical or Traditional Paradigm (1870-1930)
Classical School of Administration
Representative authors: Smith, Taylor, Fayol, Babbage, Weber, Maslow, Herzberg, Mayo.
Premises: Pursuing productivity of labor from the specialization of tasks to the mechanisms of motivation.
Neoclassical Paradigm or Reform (1940-1970)
Neoclassical School of Administration
Representative authors: Bertalanffy, Chandler.
Assumptions: For the first time, the concept of system analysis is included, recognizing that the organization is affected by its environment. Strategic planning and organization as a system are developed.
Industrial Capitalism Paradigm (1980 – )
School-based Company Sociology
Imposing concepts like Total Quality, the culture of organizations, outsourcing, total product maintenance.
Major exhibitors: Deming, Ishikawa, Juran, Autoukf, Zapata, Goncalves.
Premises: Social organization, competitiveness, and strategy. Mintzberg is the most representative author who makes a substantial collection of the use of strategy in social entity organizations, participative management, and a penchant for the production of quality goods and services.
Finance Capitalism Paradigm (1980 – )
School based on competitiveness and strategy. Mintzberg is the most representative author who makes a substantial collection of strategy use in organizations.
Modern Tendencies to Consider in Business Administration
- Globalization
- Ethics in Management Decisions
- Diversity of the workforce
- Entrepreneurship
- Importance of knowledge
Globalization
- Free trade between countries of the world. Chile signed the first free trade agreement with Mexico in 1932.
- Today, Chile has more than 106 commercial agreements, with key partners including North America, all Latin American countries, and some European countries.
Difference between Multi-national and Trans-national
Types of Enterprise Partnerships:
- License
- Exemption
- Strategic Alliances
- Joint Venture
- Subsidiary Outsider
Administrative Process
The management process refers to planning and organizing the business structure in which control or direction is implemented to follow up on what was planned.
Plan – Organize – Direct – Control
Plan
The first step of the administrative process.
The act of defining organizational goals, determining strategies to achieve them, and making plans for coordinating the work of the organization.
Why plan?
- To combat the ravages of the environment
- To give an address
- To try to reduce uncertainty
- To improve the level of coordination between the parts of an organization
Types of Planning
- Strategic Operating: Applies to the entire company, looking to position it depending on the characteristics of the environment and industry.
- Long or Short-term: Time horizon of 3 and 1 years, respectively.
Objective: Any organization seeks to achieve organizational goals. An organizational goal is a desired state that the company tries to achieve; it is an image that the organization plans for the future. Upon reaching the target, the image ceases to be ideal and becomes real and present. Therefore, the objective is no longer wanted, and another is sought.
Goal: To set the total long-term intention of the organization. Usually, the goals of the organization have three main functions:
- Establish the desired future state that the organization wants to achieve. They are general principles that must be followed by members of the organization.
- Provide a logic or rationale for the existence of the organization.
- Provide a set of standards with which organizational performance can be contrasted.
The most important goal in an organization is its Mission.
Indicators: These are empirical observations that summarize aspects of a phenomenon that are important to one or more analytical and practical purposes. While the term indicator may refer to any observable feature of a phenomenon, it is usually applied to those that are susceptible to numerical expression (ECLAC).
Strategy: The art of designing and managing operations, especially a series of very thoughtful actions directed towards a particular purpose.
Hierarchy of Plans and Types of Planning
- Strategic Planning (mission, vision, objectives, plans, goals) – from most generic to most specific: Senior Management.
- Tactical Planning (programs, projects, and budgets): Middle Management.
- Operational Planning (procedures and methods of work): Supervisors.