MGT4042EF Business Organization

and Management

Topic 2
(2.1-2.2)
Levels of management
2.1 The various levels of management and the
function and inter-relationship of each
• Levels of management are increased so as to achieve
effective supervision.

• The levels of management of an organization may be

broadly be divided in to three parts namely,
• top management,
• middle management and
• lower level or first line management.

MKT4042EF Business Organization and Management

1.Top level management
• Top level management of a company consists of the board
of directors and the chief executive or the managing
director.

• Top management is the ultimate source of authority and it

establishes goals and policies for the enterprise.

• It devotes more time for planning and co-ordination

functions.

MKT4042EF Business Organization and Management

1.Top level management
• The role of top management will be further clear by studying
its functions or activities:
1. It lays down the objectives of the enterprise.
2. It prepares strategic plans and policies for the enterprise.
3. It issues necessary instruction for the preparation of
departmental budgets, schedules, procedures, etc.
4. It appoints the executives for the middle level.
5. It controls the activities of all departments with the help of
reports, memoranda etc.
6. It builds and maintains relations with the outside public.
MKT4042EF Business Organization and Management
2. Middle level management
• Middle level management generally consists of heads of
functional departments they are responsible to the top
management for the functioning of their departments.

• They devote more time to the organization and direction

function of management.

MKT4042EF Business Organization and Management

2. Middle level management
• The role played by the middle level executives is stated below:
1. They execute the plans of the organization in accordance with
policies and directives of the top management.
2. They make plans for the sub-units of the organization.
3. They participate in the employment and training of the lower-level
management.
4. They attempt to achieve coordination between different
departments.
5. They evaluate the performance of junior managers.
6. They send the progress reports and other important data to the
top management.
MKT4042EF Business Organization and Management
3. Lower level management (supervisory level)

• Lower level management is also known as supervisory

management because it is directly concerned with the
control of performance of the operative employees.

• This level includes supervisors, foremen, accounts officers,

sales officers, and so on.

• They devote more time on the supervision of workers.

MKT4042EF Business Organization and Management

3. Lower level management (supervisory level)

• The important functions of a supervisor or lower level executive are

listed below:
1. To plan and organize the activities of the group.
2. To arrange for necessary materials, machines, tools etc. for the
workers and to provide them necessary working environment.
3. To provide training to the workers.
4. To supervise and guide subordinates.
5. To solve problems of workers.
6. To communicate workers problems to the higher level management.
7. To maintain good human relations in the organization.
8. To send periodical reports about performance.
MKT4042EF Business Organization and Management
Levels of Managers

Figure 1.3 HKMU?

Strategy e.g. CEO, CFO, COO,

President,
Department Heads

e.g. Faculty Deans, Principals

Resources usage e.g. Department Manager,

District Manager

Levels of Managers
e.g. Program Leaders

Day to day tasks,

directing front-line e.g. supervisor, team
employees leader, officers
e.g. Course Examiners

Non-managerial employees
MKT4042EF Business Organization and Management
MKT4042EF Business Organization and Management
Relative Amount of Time That Managers
Spend on the Four Managerial Tasks
4 Tasks of Management

 e.g. goals-setting, strategy

Level of Managers

Well-balanced

 e.g. motivation, communication

MKT4042EF Business Organization and Management

2.2 Alternative approaches by management to
problem solving and decision making
Definition of problem solving (解決問題）

• Problem solving refers to active efforts to discover what must

be done to achieve a goal that is not readily attainable.不容
易實現

MKT4042EF Business Organization and Management

Types of Problems
1. Problems of Inducing Structure

2. Problems of Transformation

MKT4042EF Business Organization and Management

Approaches to Problem Solving
1. Trial & Error （試中糾錯）

2. Heuristics （啟發法）

• employs a practical method not guaranteed to be optimal or

perfect, but sufficient for the immediate goals

• Examples of this method include using a rule of thumb,

an educated guess, an intuitive judgment, guesstimate,
stereotyping.

MKT4042EF Business Organization and Management

The Process of Making Decisions
• Decision-Making Process （決策過程）
• The logical, stepwise approach that is used to make a choice
between options, to solve a problem, or to resolve a dilemma.

• Contingency Planning （應急計畫）

• Anticipation of the need to make a decision some time in the
future and making the decision in advance so that it can be
implemented in a timely manner at the time it is needed.

MKT4042EF Business Organization and Management

The Process of Making Decisions

MKT4042EF Business Organization and Management

The Process of Making Decisions
• Problem Identification

• The first step in the decision-making process; the act of finding a

problem and acknowledging that it exists.

• Problem - A difference between what is and what should be.

ex: nutrient analysis software in clinical nutrition dept.
needs upgrade

MKT4042EF Business Organization and Management

The Process of Making Decisions
• Criteria for decision making 決策標準

• Establish Decision-Making Criteria - The second

step in the decision-making process; determining
which factors will have the most relevance in
solving a given problem.
• ex: list required and desired specs. for nutrient
analysis software
MKT4042EF Business Organization and Management
The Process of Making Decisions
• Weighting criteria 權重標準

• Weighting the Decision-Making Criteria - The

third step in the decision-making process; assigning
each established criterion a ranking in terms of
importance to the decision that is to be made.
• ex: Table 4.2...

MKT4042EF Business Organization and Management

The Process of Making Decisions

MKT4042EF Business Organization and Management

The Process of Making Decisions
• Developing alternatives 替代方案

• Identify the Alternatives - The fourth step in the

decision-making process; the act of determining the
different options available to solve the problem at
hand.
• ex: research available software packages

MKT4042EF Business Organization and Management

The Process of Making Decisions
• Analysis of alternatives 分析替代方案

• Analyze the Alternatives - The fifth step in the decision-

making process; the process of comparing and examining
the alternatives available by measuring them against the
same standards, using only relevant criteria.
• ex: quantified analysis in Table 4.3...

MKT4042EF Business Organization and Management

The Process of Making Decisions

MKT4042EF Business Organization and Management

The Process of Making Decisions
• Choosing an alternative 選擇替代方案

• Making the Decision - The sixth step in the

decision-making process; involves choosing which
alternative(s) will best solve the problem based on
the analysis that has been done.
• ex: choose software package to purchase (Option C
from Table 4.3)
MKT4042EF Business Organization and Management
The Process of Making Decisions
• Implementing the decision 實施決策

• Implement the Decision - The seventh step in the

decision-making process; the act of carrying out the
decision that has been made; often involves
communicating exactly what is to happen based on the
decision.
• ex: purchase and install software, train dietitians to use it,
enter data, etc.
MKT4042EF Business Organization and Management
The Process of Making Decisions
• Evaluation 評估

• The eighth and last step of the decision-making process;

receiving feedback about the decision that has been
implemented
• Was it effective, efficient, appropriate, and adequate?
• ex: Did the software upgrade improve efficiency, quality
patient service, etc.?

MKT4042EF Business Organization and Management

 The Decision-Making Process

1. Recognize
need for a I need to buy
decision a new car.

Identification •Price
of Decision •Interior Comfort
Criteria •Durability
•Repair Record
•Performance
Allocation •Price 10
of Weights •Interior Comfort 8
to Criteria •Durability 6
•Repair Record 4
•Performance 2
MKT4042EF Business Organization and Management
MKT4042EF Business Organization and Management
 The Decision-Making Process

Dodge Audi Isuzu Chevy

2. Generate
Alternatives Toyota Ford Jeep Mazda

Toyota •Price Dodge Legal,

3. Assess Ford •Comfort Audi
ethical,
Alternatives •Durability economical,
Jeep •Repair Record Isuzu practical
Mazda •Performance Chevy

4. Choose among
Alternatives With the highest scores
The Toyota
is the best.

- your problem solved?

5. Implement chosen - your needs met?
Alternative - What to be improved?
6. Learn from feedback
MKT4042EF Business
MKT4042EF Organization
Business and Management
Organization and Management
Assess Alternatives

Toyota Audi Mazda

Price(10) 8 4 10
Comfort(8) 7 8 6
Durability(6) 5 6 4
Repair(4) 3 4 2
Performance(2) 2 2 1
Total 25 24 23

MKT4042EF Business Organization and Management

Types of Decisions
• Structured problems and programmed decisions

• Structured Problem - A discrepancy between what is and what should

be that is both routine and predictable.

• Programmed Decisions - Decisions that are made routinely, often

relying on precedent, in which information can be transferred from one
similar situation to the next; usually used to solve structured problems.

• Programmable Decisions - Decisions that, though not yet programmed,

are of the routine type that can be programmed.
MKT4042EF Business Organization and Management
Types of Decisions
• Unstructured problems and nonprogrammed decisions

• Unstructured Problem - A discrepancy between what is and what

should be that is new, unusual, and often unpredictable.

• Nonprogrammed Decisions - Decisions that are used to resolve

unstructured problems; these decisions require much research and
thought.

• Institutional Memory - The historical precedent of an

organization that can be used in the decision-making process.
MKT4042EF Business Organization and Management
Decision-Making Styles
• Problem Avoider 問題逃避者

• A decision-making style in which the person does not recognize a

problem or chooses to avoid it; one who may make the choice not
to make a decision.

MKT4042EF Business Organization and Management

Decision-Making Styles
• Problem Solver 問題解決者
• A decision-making style in which the person recognizes existing problems and
deals with them in a timely manner.
• Reactive - A characteristic of a problem solver who acts on problems after they
have become obvious.

• Problem Seeker 問題探索者

• A decision-making style in which the person is proactive and deals with
potential problems before they become obvious.

MKT4042EF Business Organization and Management

Decision-Making Styles
• Ambiguity versus rationality 模糊厭惡

• Directive Decision Maker - A type of decision maker

characterized by being efficient and logical, requiring little
information to make a decision, looking at few alternatives, and
exhibiting a low tolerance for ambiguity.

• Conceptual Decision Maker - A type of decision maker

characterized by being open to new ideas, looking at many
alternatives, having a high tolerance for ambiguity, and relying on
instinct versus logic and reason.

MKT4042EF Business Organization and Management

Decision-Making Styles
• Ambiguity versus rationality
• Analytic Decision Maker - A type of decision maker who enjoys
solving problems, likes to seek alternatives and information, can
tolerate ambiguity, and applies a rational, methodical approach to
solve problems.

• Behavioral Decision Maker - A type of decision maker who uses

intuition, feelings, and perceptions versus actual data, and who
dislikes ambiguity.

MKT4042EF Business Organization and Management

MKT4042EF Business Organization and Management
Decision-Making Styles (Self-study)

Decision-making-strategies

Choosing a decision making style

• https://www.linkedin.com/learning/decision-making-
strategies/choosing-a-decision-making-style?u=2105428

MKT4042EF Business Organization and Management