Read to Learn Identify the differences between management structures. Name six skills necessary for effective management.

The Main Idea Businesses have many different management structures that they can adopt. People who are interested in management should pay attention to the skills and knowledge needed to be an effective manager.

Key Concepts Managerial Structures Is Being a Manager for You?

Key Term an organizational structure in which managers on one level are in charge of those beneath them line authority an organizational structure with a direct line of authority as well as staff who advise the line personnel line and staff authority

Key Term an organizational structure in which authority is with top management centralized organization an organizational structure that gives authority to a number of different managers decentralized organization

Key Term an organizational structure that divides responsibility among specific units, or departments departmentalization entry-level job a beginner-level position

Managerial Structures An advantage of the line authority structure is that authority is clearly defined. line authority an organizational structure with managers on one level are in charge of those beneath them

Managerial Structures The line and staff authority structure enables managers to get advice. It can also lead to overstaffing. line and staff authority an organizational structure in which has a direct line of authority as well as staff who advise the line personnel

Line and Staff Authority Organization Chart Figure 7.2 Line and Staff Authority Organization Chart

Managerial Structures Decentralized organizations are often found in international businesses. decentralized organization an organization that gives authority to a number of different managers

Formal structures usually employ departmentalization. an organizational structure that divides responsibility among specific units, or departments

Informal Structure A business can be run informally if it does not need a big marketing or distribution network. Informal structures are more flexible than formal structures.

Employee Input Forward-looking companies are on a new track to encourage worker participation, new ways of thinking, and a move away from formal structure.

Is a Manager’s Job for You? Most managers begin their career in an entry-level job. entry-level job a beginner-level position

Graphic Organizer Promotion Gain Experience Entry Level

Manage Time Effectively Understanding the Business Graphic Organizer Skills Needed by Managers Keep Accurate Records Task- Oriented Work Under Pressure Manage Time Effectively Communicate Well Human Relations Understanding the Business

Advantages of Being a Manager Graphic Organizer More control over time Greater influence More money Advantages of Being a Manager Respect Prestige

Blamed when things go wrong Disadvantages of Being a Manager Graphic Organizer Blamed when things go wrong Disadvantages of Being a Manager Mistakes are costly Pressure