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

3. 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.

4. Key Concepts
Managerial Structures
Is Being a Manager for You?

5. 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

6. 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

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

8. 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

9. 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

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

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

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

13. 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.

14. 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.

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

16. Graphic Organizer
Promotion
Gain Experience
Entry Level

17. 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

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

19. 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