Chapter 7 Organizational Structures

Learning Objectives 1. Explain how businesses organize for management. 2. List three levels of management and compare their responsibilities 3. Name the four functions of management. 4. Analyze if a managerial position is for you.

Why Is This Important? Understanding business organization and management is key to knowing how a company is run.

Managerial Structures ANY business that employs more than one person needs a management plan; identifying who’s responsible for which tasks. ANY business that employs more than one person needs a management plan; identifying who’s responsible for which tasks. Line authority – an organizational structure in which managers at the top of the line are in charge of those beneath them. Line authority – an organizational structure in which managers at the top of the line are in charge of those beneath them. –Centralized Organization –Decentralized Organization Two Types: Two Types: 1.Formal 2.Informal

Formal Structure Formal structures are usually Departmentalized – divides responsibility among specific units, or department. Formal structures are usually Departmentalized – divides responsibility among specific units, or department. Departments can be organized by what they do, what they make, or by region. Departments can be organized by what they do, what they make, or by region. Smaller businesses uses this type. Smaller businesses uses this type. Employees are more flexible and share duties. Employees are more flexible and share duties. Informal Structure

Levels Of Management Most businesses have three levels of management. 1.Top-level managers 2.Middle mangers 3.Operational Managers

Top-level mangers – responsible for setting goals and planning for the future. Top-level mangers – responsible for setting goals and planning for the future. –Examples: President, Vice President, & CEO Middle Mangers – carry out the decisions of top management. Middle Mangers – carry out the decisions of top management. –Examples: Plant Mangers, Regional Mangers, & Department Heads. Operational Mangers – responsible for the daily operations of the business. Operational Mangers – responsible for the daily operations of the business. –Examples: Supervisors, office mangers, and crew leaders.

Example of an Organizational Chart Mrs. Rovegno Ms. Paschall Blue 1 Teachers Students Mr. Campbell Blue 2 Teachers Students Ms. Colbert Gold 1 Teachers Student Mr. Bell Gold 2 Teachers Students Mr. Lathan Red 1 Teachers Students Ms. Davidson Red 2 Teachers Students Ms. Anders White 1 Teachers Students Mr. Pate White 2 Teachers Students Ted Landry

Managerial Functions A good manager has four different functions: 1.Planning 2.Organizing 3.Leading 4.Controlling

Management Functions Planning Setting objectives and making long-and short- term plans for meeting the objectives. Organizing Obtaining and coordinating resources so that a business’s objectives can be met. Leading Influencing, guiding, and directing people under one’s management to carry out their assigned tasks. Controlling Setting standards for work, evaluating performance, and solving problems that prevent certain task’s completion.

Is Being A Manager for You? Successful managers are able to carry out varied tasks, perform under pressure, communicate effectively, relate to people, and grasp and use information. Managers have prestige, influence, and power; however, they usually experience a lot of pressure too.

Advantages Earn more money! Earn more money! Respected. Respected. More Influence. More Influence. Variety of duties. Variety of duties. Control of time. Control of time. Get blamed! Get blamed! Targets for Criticism. Targets for Criticism. Mistakes more costly. Mistakes more costly. Lots of Pressure. Lots of Pressure. Guarded relationships w/employees. Guarded relationships w/employees. Disadvantages