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Chapter 7 Organizational Structurespp. 98-111. Introduction to Business, Organizational Structures Slide 2 of 55 Learning Objectives After completing.

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Presentation on theme: "Chapter 7 Organizational Structurespp. 98-111. Introduction to Business, Organizational Structures Slide 2 of 55 Learning Objectives After completing."— Presentation transcript:

1 Chapter 7 Organizational Structurespp

2 Introduction to Business, Organizational Structures Slide 2 of 55 Learning Objectives After completing this chapter, you’ll be able to: 1.Explain 1.Explain how businesses organize for management. 2.List 2.List three levels of management and compare their responsibilities. 3.Name 3.Name the four functions of management. 4.Analyze 4.Analyze if a managerial position is for you.

3 Introduction to Business, Organizational Structures Slide 3 of 55 Why It’s Important Understanding business organization and management is key to knowing how a company is run.

4 Introduction to Business, Organizational Structures Slide 4 of 55 Key Words management plan organizational chart line authority centralized organization decentralized organization departmentalization continued top-level managers middle managers operational managers

5 Introduction to Business, Organizational Structures Slide 5 of 55 Managerial Structures A management plan divides a company into different departments run by different managers. Companies use an organizational chart to show how the business is structured and who is in charge of whom.

6 Introduction to Business, Organizational Structures Slide 6 of 55 Managerial Structures One way to organize management is called line authority. Managers at the top of the organization are in charge of those beneath them.

7 Introduction to Business, Organizational Structures Slide 7 of 55 Managerial Structures Centralized organization puts authority in one place, with top management. Decentralized organization gives authority to a number of different managers to run their own departments.

8 Introduction to Business, Organizational Structures Slide 8 of 55 Formal Structure Formal structures are usually departmentalized. Departmentalization divides responsibility among specific units, or departments.

9 Introduction to Business, Organizational Structures Slide 9 of 55 Informal Structure Smaller businesses can be run more informally. If a business does not need a big marketing or distribution network, it does not need a lot of managers.

10 Introduction to Business, Organizational Structures Slide 10 of 55 Levels of Management Most businesses have three levels of managers: Top-level managers Middle managers Operational managers

11 Introduction to Business, Organizational Structures Slide 11 of 55 Levels of Management Top-level managers are responsible for setting goals and planning for the future. Middle managers carry out the decisions of top management. Operational managers are responsible for the daily operations of the business.

12 Introduction to Business, Organizational Structures Slide 12 of 55 Graphic Organizer Levels of Management Graphic Organizer TOP LEVEL MANAGERSOPERATIONALMANAGERSMIDDLEMANAGERS Set goals Plan for the future Carry out the decisions oftop management Plan and control operations Oversee daily operations Supervise workers to meet deadlines

13 Introduction to Business, Organizational Structures Slide 13 of 55 Planning A good manager has four different functions: Planning Organizing Leading Controlling

14 Introduction to Business, Organizational Structures Slide 14 of 55 Planning Long-range planning involves top-level management deciding how the company should perform.

15 Introduction to Business, Organizational Structures Slide 15 of 55 Planning As part of the planning process, management must answer the following key questions: What must be done? Who will do it? continued

16 Introduction to Business, Organizational Structures Slide 16 of 55 Planning How will the work be grouped? Who supervises whom? Who makes decisions about the work to be done?

17 Introduction to Business, Organizational Structures Slide 17 of 55 Planning The key questions of the planning process are applied and answered when you get together with your management team.

18 Introduction to Business, Organizational Structures Slide 18 of 55 Organizing To organize a business plan you need to assign managers different tasks and coordinate their activities.

19 Introduction to Business, Organizational Structures Slide 19 of 55 Organizing Each manager needs to organize his or her department and know what the other managers are doing. You need to determine who makes decisions and who answers to whom.

20 Introduction to Business, Organizational Structures Slide 20 of 55 Leading Good management also requires good leadership. You have to create a vision of your company to inspire your employees.

21 Introduction to Business, Organizational Structures Slide 21 of 55 Leading You need to set standards so your managers know their goals. You need to communicate with them to provide guidance and resolve conflicts.

22 Introduction to Business, Organizational Structures Slide 22 of 55 Leading You especially want to encourage your employees. Most companies offer incentives such as pay raises and promotions.

23 Introduction to Business, Organizational Structures Slide 23 of 55 Controlling Controlling means keeping the company on track and making sure all goals are met.

24 Introduction to Business, Organizational Structures Slide 24 of 55 Controlling You have to keep track of the budget, the schedule, and the quality of the product. You also have to monitor your employees and review their performance.

25 Introduction to Business, Organizational Structures Slide 25 of 55 Controlling Controlling also involves monitoring customer satisfaction.

26 Introduction to Business, Organizational Structures Slide 26 of 55 Is Being a Manager for You? Most managers begin their careers as company employees. They’re promoted after they have gained experience and have shown certain leadership qualities.

27 Introduction to Business, Organizational Structures Slide 27 of 55 Is Being a Manager for You? Managerial qualities include: Ability to perform varied activities Ability to work under pressure Effective communication Interpersonal skills Ability to gather and use information

28 Introduction to Business, Organizational Structures Slide 28 of 55 Advantages to Being a Manager Managers usually earn more money than employees in non-management jobs. Being a manager has prestige.

29 Introduction to Business, Organizational Structures Slide 29 of 55 Advantages to Being a Manager Because managers are leaders, they have more influence than other employees on how the company is run.

30 Introduction to Business, Organizational Structures Slide 30 of 55 Advantages to Being a Manager Managers also have greater control over their time and how they will spend it.

31 Introduction to Business, Organizational Structures Slide 31 of 55 Disadvantages to Being a Manager Managers get the blame when things go wrong, even if another employee caused the problem.

32 Introduction to Business, Organizational Structures Slide 32 of 55 Disadvantages to Being a Manager When managers make mistakes, they can be more costly than other employees’ mistakes because their decisions affect many workers.

33 Introduction to Business, Organizational Structures Slide 33 of 55 Disadvantages to Being a Manager Some managers feel their relationship with lower-level employees is different than their relationship with fellow managers.

34 Introduction to Business, Organizational Structures Slide 34 of 55 In business, collaboration is key. Working in a team requires flexibility, creativity, good communication, and shared goals. continued Developing Teamwork Business Building Blocks

35 Introduction to Business, Organizational Structures Slide 35 of 55 In fact, those characteristics also describe improvisation—to arrange something offhand. continued Developing Teamwork Business Building Blocks

36 Introduction to Business, Organizational Structures Slide 36 of 55 To accomplish a goal in a company, people must work together. continued Developing Teamwork Business Building Blocks

37 Introduction to Business, Organizational Structures Slide 37 of 55 Working as a team is better than working separately. Listen to each other as you brainstorm for solutions. continued Tips on “Improving” Your Teamwork Business Building Blocks

38 Introduction to Business, Organizational Structures Slide 38 of 55 Engage in problem solving while creating and offering solutions within constraints. Tips on “Improving” Your Teamwork Business Building Blocks


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