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Copyright © 2012 Pearson Education, Inc.
Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

Publishing as Prentice ©2012
Hall Pearson Education, Inc. publishing as Prentice Hall 8-1
What Is Planning?
• Planning - a primary managerial activity that

involves:
– Defining the organization’s goals
– Establishing an overall strategy for achieving
those goals
– Developing plans for organizational work
activities

Publishing as Prentice©2012
HallPearson Education, Inc. publishing as Prentice Hall 8-2
Why Do Managers Plan?
• Purposes of Planning
– Provides direction
– Reduces uncertainty
– Minimizes waste and redundancy
– Sets the standards for controlling

Planning and Performance
• Formal planning is associated with:
– Higher profits and returns on assets
– Positive financial results
– The quality of planning and implementation
affects performance more than the extent of
planning
– The external environment can reduce the impact
of planning on performance

Types of Plans
• Strategic Plans
– Establish the organization’s overall goals
– Position the organization in its environment
– Cover extended periods of time
• Operational Plans
– Specify how the overall goals are to be achieved
– Cover a short time period

Types of Plans
• Long-Term Plans
– Time frames extending beyond three years.
• Short-Term Plans
– Time frames of one year or less.

Types of Plans
• Specific Plans
– Plans that are clearly defined and leave no room
for interpretation.
• Directional Plans
– Flexible plans that set out general guidelines and
provide focus, yet allow discretion in
implementation.

Types of Plans
• Single-Use Plan
– A one-time plan specifically designed to meet the
need of a unique situation.
• Standing Plans
– Ongoing plans that provide guidance for activities
performed repeatedly.

Management By Objectives (MBO)
• Key elements of MBO:
– goal specificity
– participative decision making
– an explicit performance/evaluation period
– feedback

Designing Organizational Structure
• Organizing - arranging and structuring work to accomplish an
organization’s goals.
• Organizational Structure - the formal arrangement of jobs
within an organization.
• Organizational Design - a process involving decisions about
six key elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
Publishing as Prentice Hall 10-11
Departmentalization by Type
• Functional • Process
– Grouping jobs by – Grouping jobs on the
functions performed basis of product or
• Product customer flow
– Grouping jobs by • Customer
product line – Grouping jobs by type of
• Geographical customer and needs
– Grouping jobs on the
basis of territory or
geography

Organizational Structure (cont.)
• Chain of Command - the continuous line of
authority that extends from upper levels of an
organization to the lowest levels of the
organization—clarifies who reports to whom.

Organizational Structure (cont.)
• Authority - the rights inherent in a managerial
position to tell people what to do and to
expect them to do it.
• Responsibility - the obligation to perform.
• Unity of Command - a person should have
one boss and should report only to that
person.

Exhibit 10-3: The Five Common
Forms of Departmentalization

Exhibit 10-4: Chain of Command
and Line Authority

Exhibit 10-5: Line vs. Staff Authority

Span of Control
• Span of Control - the number of employees who can
be effectively and efficiently supervised by a
manager.

Width of span is affected by:
• Skills and abilities of the manager
• Employee characteristics
• Characteristics of the work being done
• Similarity of tasks
• Complexity of tasks
• Physical proximity of subordinates
• Standardization of tasks
• Sophistication of the organization’s information system
• Strength of the organization’s culture
• Preferred style of the manager

Exhibit 10-6: Contrasting Spans of Control

Centralization
• Centralization - the degree to which decision
making is concentrated at upper levels in the
organization.
• This is common in organizations in which top managers
make all the decisions and lower-level employees
simply carry out those orders.

Decentralization
• Decentralization - when an organization
relegates decision making to managers who
are closest to the action.
• Employee Empowerment
– Increasing the decision-making authority (power)
of employees

Exhibit 10-7: Centralization or
Decentralization

What Is Motivation?
• Motivation - the
process by which a
person’s efforts are
energized, directed, and
sustained toward
attaining a goal.

Publishing as Prentice Hall©2012 Pearson Education, Inc. publishing as Prentice Hall 16- 24
Early Theories of Motivation
• Maslow’s Hierarchy of Needs
• McGregor’s Theories X and Y
• Herzberg’s Two-Factor Theory
• McClelland’s Three Needs Theory

Maslow’s Hierarchy of Needs Theory
• Hierarchy of needs theory - Maslow’s theory
that human needs — physiological, safety,
social, esteem, and self-actualization — form a
sort of hierarchy.

Maslow’s Hierarchy of
Needs Theory (cont.)
• Physiological needs - a person’s needs for
food, drink, shelter, sexual satisfaction, and
other physical needs.
• Safety needs - a person’s needs for security
and protection from physical and emotional
harm.
• Social needs - a person’s needs for affection,
belongingness, acceptance, and friendship.

Maslow’s Hierarchy of
Needs Theory (cont.)
• Esteem needs - a person’s needs for internal
factors (e.g., self-respect, autonomy, and
achievement) and external factors (such as
status, recognition, and attention).
• Self-actualization needs - a person’s need to
become what he or she is capable of
becoming.

Exhibit 16-1: Maslow’s
Hierarchy of Needs

McGregor’s Theory X and Theory Y
• Theory X - the assumption that employees
dislike work, are lazy, avoid responsibility, and
must be coerced to perform.
• Theory Y - the assumption that employees are
creative, enjoy work, seek responsibility, and
can exercise self-direction.

Who Are Leaders and
What Is Leadership?
• Leader - Someone who can influence others
and who has managerial authority.
• Leadership - What leaders do; the process of
influencing a group to achieve goals.
• Ideally, all managers should be leaders.

Publishing as Prentice Hall 17- 31
Exhibit 17-1: Seven Traits Associated with
Leadership

What Is Control?
• Controlling - the process of monitoring,
comparing, and correcting work performance.
• The Purpose of Control
– To ensure that activities are completed in ways
that lead to the accomplishment of organizational
goals.

Why Is Control Important?
• As the final link in management functions:
– Planning
• Controls let managers know whether their goals and
plans are on target and what future actions to take.
– Empowering employees
• Control systems provide managers with information
and feedback on employee performance.
– Protecting the workplace
• Controls enhance physical security and help minimize
workplace disruptions.

Exhibit 18-1: Planning-Controlling Link

What is the Control Process?
• Control process - a three-step process of
measuring actual performance, comparing
actual performance against a standard, and
taking managerial action to correct deviations
or inadequate standards.

The Control Process
•The Process of Control

1. Measuring actual performance
2. Comparing actual performance against a
standard
3. Taking action to correct deviations or
inadequate standards

Exhibit 18-2: The Control Process

Exhibit 18-4: Acceptable
Range of Variation

What Is Communication?
• Communication - the transfer and understanding of
meaning.
• Transfer means the message was received in a form that can be
interpreted by the receiver.
• Understanding the message is not the same as the receiver
agreeing with the message.
• Interpersonal Communication - communication
between two or more people.
• Organizational Communication - all the patterns,
networks, and systems of communications within an
organization.

Functions of Communication
• Control
– Formal and informal communications act to
control individuals’ behaviors in organizations.
• Motivation
– Communications clarify for employees what is to
be done, how well they have done it, and what
can be done to improve performance.

Functions of Communication (cont.)
• Emotional Expression
– Social interaction in the form of work group
communications provides a way for employees to
express themselves.
• Information
– Individuals and work groups need information to
make decisions or to do their work.

Interpersonal Communication
• Communication process - the seven elements
involved in transferring meaning from one
person to another.
• Noise - any disturbances that interfere with
the transmission, receipt, or feedback of a
message.

Interpersonal Communication (cont.)
• Message - a purpose to be conveyed.

• Encoding - converting a message into symbols.
• Channel - the medium a message travels along.
• Decoding - retranslating a sender’s message.

Exhibit 15-1: The Interpersonal
Communication Process

Nonverbal Communication
• Nonverbal communication - communication
transmitted without words.
• Body language - gestures, facial
configurations, and other body movements
that convey meaning.
• Verbal intonation - an emphasis given to
words or phrases that conveys meaning.

Formal Versus Informal Communication
• Formal communication - communication that

takes place within prescribed organizational
work arrangements.
• Informal communication - communication
that is not defined by the organization’s
structural hierarchy.

Direction of Communication
• Downward communication - communication
that flows downward from a manager to
employees.
• Upward communication - communication
that flows upward from employees to
managers.
• Lateral communication - communication that
takes place among any employees on the
same organizational level.
Direction of Communication (cont.)
• Diagonal
communication -
communication that
cuts across work areas
and organizational
levels.


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Copyright © 2012 Pearson Education, Inc.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

• Planning - a primary managerial activity that

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

Copyright © 2012 Pearson Education, Inc.

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•The Process of Control

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• Message - a purpose to be conveyed.

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• Formal communication - communication that

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Copyright © 2012 Pearson Education, Inc.

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