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?

Discussion Starter Why are clear lines of authority important?

Managerial Structures An advantage of the line authority structure is that authority is clearly defined. Disadvantage: managers have few specialists who help with their responsibilities line authority an organizational structure with managers on one level are in charge of those beneath them

Managerial Structures An advantage of the line and staff authority structure enables managers to get advice. A disadvantage is it can also lead to overstaffing. line and staff authority an organizational structure in which has a direct line of authority (solid lines) as well as staff who advise the line personnel (dotted lines)

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

Managerial Structures Centralized organizations helps managers throughout the firm to be consistent in decision making. Centralized organization An organization that puts authority in place with top management.

Managerial Structures Decentralized organizations are often found in international businesses. Some managers working in foreign countries have more decision making power because they know their markets well. decentralized organization an organization that gives authority to a number of different managers

Formal Structure Formal structures usually employ departmentalization. They can be organized by geographical location, function, customer groups and product. 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 because it will not need a lot of managers. Informal structures are more flexible than formal structures where employees can share duties.

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. New employees that gain experience and show certain qualities can be promoted to higher positions. 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

Can you answer the following questions?

What is an advantage of a line and staff authority organization structure over a line authority organization?

Why do some businesses use a decentralized organization?

What are some characteristics of an effective manager?

End of