They know that sustained superior performance can’t be built on one-shot improvements like restructurings, massive cost reductions, or reorganizations. The best GMs willingly make the tough calls it takes to upgrade an organization. What makes it important is its status as an organizing framework for the vast majority of activities general managers perform. July 2020 Rancho California Water District ADMINISTRATION Administration (29) Director of Administration Customer and Support Services Manager … The Lions are shaking up their organizational structure, could hire coach before GM. And that knowledge gives them the conviction they need to make things happen and gain a competitive edge. That’s what distinguishes a useful vision from the bunch of meaningless generalities some GMs use to describe their business strategies. Trite as it may sound, somewhere along the line, the best GMs have learned the value and impact of teamwork. Implicit in achieving that is something most GMs don’t do well, namely understanding in detail how their costs, products, services, and systems stack up against their competitors’. And they don’t settle for vague answers, wishful thinking, or lack of follow-up when new departments or programs are proposed. The best GMs also do lots of little things—like farming out pilot runs and renting plants and machinery—that limit their front-end exposure. Johnson & Johnson is an excellent example. I’ve seen many GMs who thought they were solving major problems with logical sounding reorganizations that left out the most essential ingredient—the appropriate leader. To determine what does apply, a GM focuses on two questions: What kind of managers do we need to compete effectively, now and in the foreseeable future? The general manager typically serves as the top executive for the unit and is responsible for strategy, structure, budgets, people, financial outcomes, and scorecard metrics. They do this through a network of roughly 100 tightly focused, freestanding operating companies. But focusing effort in these six areas will help any GM become more effective. In short, no strategic focus. Projectized Organization. A chairman acts as a representative of the company to the outside world.Vice-President: The responsibilities of a vice-president vary as per the siz… But when the idea doesn’t succeed right away, this flat-out approach produces nothing but a big write-off. They also understand the impact of concentrating on a few things at one time. ORGANIZATIONAL STRUCTURE SIMPLICIO P. UMALI, JR. President & General Manager Simplicio P. Umali, Jr. (Jun), the 2011 Agora Awardee in the category of Outstanding Man of Marketing Management, is the President and General Manager … Even as he reduced the company’s work force by 50%, he carefully thought through how to make cuts in a way people would understand and consider fair. Organizational Structure Organizational Structure. They don’t hire only in their own image but rather tolerate, even encourage, a variety of styles. There’s an executive at the top of the heap, people responsible for each area (the director tier is for bigger businesses), and teams of people who do the work in each department.The advantage of this type of organizational structure lies in its simplicity. But action, not questions, is the key, especially against the bottom quartile performers. As is shown in the picture, you can find detailed information of any employee as a glance, including the 0name, photo, position, department, phone number, and email address. Instead of just looking inward, they get their competitive information first-hand by talking to knowledgeable customers and distributors. Seleta Reynolds is General Manager … Finally, the best GMs invariably surround themselves with good people—achievers, not cronies or loyalists. This carefully crafted corporate overview gives J&J a significant competitive edge virtually everywhere it operates. Long before restructuring came into vogue, they were prepared to shift emphasis to get more bounce for their bucks. Horizontal or flat org structure. It isn’t a question of more information; they simply use information better. This doesn’t mean arbitrary, unrealistic goals that are bound to be missed and motivate no one, but rather goals that won’t allow anyone to forget how tough the competitive arena is. The prerequisites to becoming a general manager vary depending on the requirements of the business and may include a minimum level of education, experience, and certification. General Manager. When they have a strategy or business problem or a big opportunity, they turn to the individual who has the right skills and style for that job. They’re also willing to take the heat by cutting bonuses in a poor year instead of pretending the bad year never happened and rewarding everyone for “trying hard.”. To reduce hurt feelings, they make sure—in advance—that subordinates understand how the system works and why intrusion is sometimes required. They also refuse to let weakness in one or two areas (like control, R&D, or engineering) neutralize their strong departments. He has a keen sense of the kind of organization he wants Cummins to be. They demand reports on what’s important, not sheets and sheets of data from MIS. A tough task, but he was convinced the goal was essential because he expected their chief competitor to cut prices to regain market share. It clearly identifies authority, responsibility and accountability at each level.These relationships in the hiera… But whatever the environment a general manager inherits from the past, shaping—or reshaping—it is a critically important job. Figures and facts mean something to them because they know their customers, products, and competitors so well. Learn More. Matrix. Also called as the executive level, the top management guides the overall functions of a business. The best GMs also get deeply involved in determining their company’s values—“what it’s like to work here.” Henry Schacht, the CEO of Cummins Engine, is a good example. For example, one aggressive, growth-oriented company decided it needed: a mix of high-potential managers, not a few good managers at the top with implementers below; innovative managers who act like owners, not administrators content to pass decisions up the line; and ambitious quick learners, not people content to move slowly up the corporate ladder. Naturally, that same pattern won’t apply to every company. If the GM’s standards are low or vague, subordinates aren’t likely to do much better. These changes mean that HR departments play a more strategic role within an organization, and that manager and director-level HR roles are interacting with the CEO, CFO or COO of the company. The third element in shaping the work environment—the company’s people concepts—is closely related to the other two. In the 1970s, for example, Pepsi concentrated on its heartland markets, grocery chains, and new large packages—all Pepsi strengths. General Manager responsibilities include formulating overall strategy, managing people and establishing policies. The success of an organization will depend upon the caliber of the manager in utilizing the … An organizational structure where the owner is the general manager responsible for the activities in all the functions. They know that sustained superior performance can’t be built on one-shot improvements like restructurings, massive cost reductions, or reorganizations. Middle managers, like most managers, accomplish their goals largely by managing relationships. Sure, they’ll take such sweeping actions if they’re in a situation where that’s necessary or desirable. To remain a leader, CEO James Burke feels that he and his managers have to excel at spotting promising new market segments early, tailoring products to serve them, and getting those products to market quickly. “That means every business, plant, machine, and job is open to question. In his business, however, fast, local decisions aren’t particularly important—and his company was already regarded as a fast mover, not a laggard. If business drops off sharply, they move faster than others to scale back costs, cut discretionary expenditures, and eliminate losers. Matrix Structure. Moreover, top GMs carefully protect the downside on major investments. Finally, they directly influence important appointments by exercising a veto or offering subordinates a slate of candidates to choose from. Great general managers do the same thing. A general manager, sometimes simply called a GM, has broad, overall responsibility for a business or a business unit within a larger organization. In both cases, the GM’s strategic vision, which took into account the industry, the customer, and a specific competitive environment, led to innovation targeted at a particular competitive position. The company’s local execution was already superior to its main competitor’s by a wide margin. Three elements dictate a company’s work environment: (1) the prevailing performance standards that set the pace and quality of people’s efforts; (2) the business concepts that define what the company is like and how it operates; and (3) the people concepts and values that prevail and define what it’s like to work there. He is a planner, coordinator, producer and a marketer. While this may sound obvious, I’ve known many general managers who end up with conflicting cultural values and inconsistent norms of behavior because they haven’t consciously decided what’s important to them. And they don’t let cost percentages get out of control however “reasonable” the explanation may be. The general manager in the hierarchy usually falls below the vice president of operations. They plunge ahead and build a factory, hire lots of overhead, and launch new products quickly and aggressively—presumably to beat competitors to the punch. Individually, none of these things is totally new or unique. How many GMs, for instance, would have disassembled a competitor’s entire car to show production people what they were up against, as Honda’s U.S. president did? They use challenging job assignments to speed high-potential managers’ development and eliminate blockages to open up spots. Updated Jan 05, 2021; Posted Jan 05, 2021 . Vice presidents stand below the C-suite executives. Span Of control The number of subordinates who report directly to a manager. At May Department Stores, for instance, David Farrell achieved almost miraculous improvements in shrinkage, inventory levels, labor costs, and store-level merchandising simply by focusing the entire organization’s efforts on these mundane operating problems. These managers are also bugs on costs. Guess who changed his views—five years too late—about where his company stood and what was required to regain market leadership? Coordinate the development of … Then managers feel more responsible for results simply because they are more responsible. The best GMs establish goals that force the organization to stretch to achieve them. Then he reminds everyone that the same performance it took to get a six this year will earn only a five next year. The result: while former key competitors like Allied, ADG, and Federated were stumbling, May emerged as the largest, best run publicly held company in its chosen field. As for a small company, the organizational structure chart must be concise and complete so that the whole company can move forward, with the least expense, normally and smoothly.. But by focusing on fewer bets and backing them aggressively, they improve the odds. Instead of continuing his predecessor’s practice or scaling back on his big potato chip business (as the financial vice president recommended), this GM invested a small fraction of his resources in process and productivity improvements that raised the margin on chips. In contrast, outstanding GMs think like owners. That way, when opportunities arise, they don’t have to create a hole in one part of the business to fill an opening in another. But they also know that surprises will occur, so they keep enough flexibility in their spending to allow for competitive threats, good new ideas, or softer volume. In fact, very few companies do. 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