Theory of Organization Management in Management
Posted: Sun Dec 22, 2024 6:34 am
anagement experts have developed an alternative theory of company management. It assumes that employees are divided into several levels, but segmentation is related to the strategic management of the enterprise.
This theory distinguishes the following levels:
Corporate strategy
The first level is managers interacting with corporate strategy. These employees form the company's strategic goals and make a number of key decisions related to achieving the goals.
For example, they work in a technical, production, business or financial department, so they can draw up financial plans or budgets, estimate resources and potential production capacity.
Most often, the board of directors is located at philippinen vorwahl whatsapp this level. This includes all senior managers and department heads.
Business strategy
Employees at this level monitor the company's success in the competitive struggle in the allocated market segment. They solve the following tasks:
strengthen the company's position in the market and its share among customers;
develop a strategy for the behavior of the main departments - sales, marketing, production departments, since they are the ones who ensure the level of demand for products with a regular revenue flow;
respond to external factors - marketing activity of competitors, unfair competition, trends, etc.
This level is a management body that includes the director, heads of departments, and the CEO. Usually, in companies, these people in a modern organization combine two levels of management - corporate and business.
Functional strategy
Once the main direction of activity has been determined, it is necessary to form a chain of actions that will allow achieving all the set goals. Such a chain is necessary for each division of the organization. Employees at this level must analyze the activities and capabilities of the division, put forward ideas aimed at improving the work. Then they take action to implement the ideas.
Middle management is responsible for the formation and implementation of functional strategy. A number of key decisions are made by the department head.
Increase Profits by 200%: Download 5 Powerful Tools for Free
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable documents that we have developed for our clients.
Download for free and implement today:
How to find out the 5 key marketing metrics in your company?
Step-by-step calculation template with fields where you can insert your data
How to make a KPI for a sales manager based on his work results?
Current template for calculating KPI for sales manager
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
Cold Lead Processing Script Template
A checklist of ready-made questions for engaging cold clients
7 Profitable Marketing Strategies Examples
Will help increase customer flow by at least 30%
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153114
Operational strategy
This is a category of special strategies for a specific department. Problems that are not typical for other groups are considered within the department. Decisions are made by department heads and the functional service.
Formation of levels of management of the organization
To form a hierarchy of management levels in an organization, it is necessary to introduce the production-territorial principle into the company. Its essence is the division of the entire management apparatus vertically. This is how individual levels are formed. Then they are subdivided horizontally, that is, a separate management link is formed at each of them.
The types and levels of management in an organization demonstrate the sequence of decision-making and the subordination of different bodies (from the lower to the upper). The head of each level is an employee who has taken responsibility for the entire section. This employee will both manage his section and have one boss from whom he will receive orders and tasks.
Senior executive
When using the principle of one-man management, a top management level is formed, whose representatives have virtually no contact with ordinary employees. They interact only with their colleagues - also managers, as well as a certain number of subordinates who have a team of workers.
Senior executive
Source: shutterstock.com
Despite such isolation from production, top managers bear the greatest responsibility. If they make a wrong decision, several aspects of the enterprise's work will suffer at once. There are always few employees of this category in the company.
Middle management in the company structure
In any company, it is the middle managers who make up the majority of managers. They form the management level that coordinates the work of different employees and structural divisions.
In addition to managers, other specialists may be located at this level. For example, directors of retail outlets, if the company has several such outlets, university deans or department heads.
The middle link is an intermediary between the top manager and all employees. The functionality of the middle link representatives is broader than that of everyone else. This is due to the fact that they must carry out the instructions of the senior management and solve the problems of the bosses lower on the hierarchy ladder. Such managers implement several functions at once.
This theory distinguishes the following levels:
Corporate strategy
The first level is managers interacting with corporate strategy. These employees form the company's strategic goals and make a number of key decisions related to achieving the goals.
For example, they work in a technical, production, business or financial department, so they can draw up financial plans or budgets, estimate resources and potential production capacity.
Most often, the board of directors is located at philippinen vorwahl whatsapp this level. This includes all senior managers and department heads.
Business strategy
Employees at this level monitor the company's success in the competitive struggle in the allocated market segment. They solve the following tasks:
strengthen the company's position in the market and its share among customers;
develop a strategy for the behavior of the main departments - sales, marketing, production departments, since they are the ones who ensure the level of demand for products with a regular revenue flow;
respond to external factors - marketing activity of competitors, unfair competition, trends, etc.
This level is a management body that includes the director, heads of departments, and the CEO. Usually, in companies, these people in a modern organization combine two levels of management - corporate and business.
Functional strategy
Once the main direction of activity has been determined, it is necessary to form a chain of actions that will allow achieving all the set goals. Such a chain is necessary for each division of the organization. Employees at this level must analyze the activities and capabilities of the division, put forward ideas aimed at improving the work. Then they take action to implement the ideas.
Middle management is responsible for the formation and implementation of functional strategy. A number of key decisions are made by the department head.
Increase Profits by 200%: Download 5 Powerful Tools for Free
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable documents that we have developed for our clients.
Download for free and implement today:
How to find out the 5 key marketing metrics in your company?
Step-by-step calculation template with fields where you can insert your data
How to make a KPI for a sales manager based on his work results?
Current template for calculating KPI for sales manager
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
Cold Lead Processing Script Template
A checklist of ready-made questions for engaging cold clients
7 Profitable Marketing Strategies Examples
Will help increase customer flow by at least 30%
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153114
Operational strategy
This is a category of special strategies for a specific department. Problems that are not typical for other groups are considered within the department. Decisions are made by department heads and the functional service.
Formation of levels of management of the organization
To form a hierarchy of management levels in an organization, it is necessary to introduce the production-territorial principle into the company. Its essence is the division of the entire management apparatus vertically. This is how individual levels are formed. Then they are subdivided horizontally, that is, a separate management link is formed at each of them.
The types and levels of management in an organization demonstrate the sequence of decision-making and the subordination of different bodies (from the lower to the upper). The head of each level is an employee who has taken responsibility for the entire section. This employee will both manage his section and have one boss from whom he will receive orders and tasks.
Senior executive
When using the principle of one-man management, a top management level is formed, whose representatives have virtually no contact with ordinary employees. They interact only with their colleagues - also managers, as well as a certain number of subordinates who have a team of workers.
Senior executive
Source: shutterstock.com
Despite such isolation from production, top managers bear the greatest responsibility. If they make a wrong decision, several aspects of the enterprise's work will suffer at once. There are always few employees of this category in the company.
Middle management in the company structure
In any company, it is the middle managers who make up the majority of managers. They form the management level that coordinates the work of different employees and structural divisions.
In addition to managers, other specialists may be located at this level. For example, directors of retail outlets, if the company has several such outlets, university deans or department heads.
The middle link is an intermediary between the top manager and all employees. The functionality of the middle link representatives is broader than that of everyone else. This is due to the fact that they must carry out the instructions of the senior management and solve the problems of the bosses lower on the hierarchy ladder. Such managers implement several functions at once.