1. Principles of Business, Marketing, and Finance
Business Operations and Organizational Structures
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2. Business Organization and Management
How a Company is Run
Managerial Structures
Organizational chart-shows how the business is structured and who is in charge of whom
Line authority-managers at the top of the organization are in charge of those beneath them
Centralized organization-gives authority to a number of different managers to run their own departments
Give examples of a line authority and a centralized organization. Conduct class discussion about the pros and cons of each form of organization.
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3. Types of Organizational Structure
Formal Structure
Informal Structure
Formal Structure-departmentalization divides responsibility among specific units or departments. Informal Structure-used when a business does not need a big marketing or distribution network, does not need a lot of managers
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4. Guidelines for Businesses
Mission Statement-short specific reason why the business exists and what it wants to achieve
Goal-precise statement of results the business expects to achieve
Policies-guidelines used in making consistent decisions
Procedures-descriptions of the way work is to be done
Read your school or school district Mission Statement to the class. Break the class into small groups. Each group must choose a business and write a mission statement for the business.
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5. Principles of Effective Organization
Responsibility-the obligation to complete specific work
Authority-right to make decisions about how responsibilities should be accomplished
Accountability-taking responsibility for the results achieved
Unity of Command-clear reporting relationship for all staff of a business
Go through an example of a business procedure used by a business where students shop or have a student give an example of a procedure used at the business where he/she is employed.
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6. Principles of Effective Organization
number of employees who are assigned to a particular work task and manager
Span of Control
Functional organization structure – work arranged within main business functions
Types of Organizational Structures
work is structured around specific project, products, or customer groups
Matrix Organizational Structures
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7. How Departments are Organized
By function
By product
By location
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Levels of Management
Top Level Managers
Set goals
Plan for the future
Middle Managers
Carry out the decisions of top management
Plan and control operations
Operational Managers
Oversee daily operations
Supervise workers to meet deadlines
Ask students to draw an organization chart for the business where they are employed or have been employed in the past. If they have never been employed then think about the school system and how the employees and students would fit in an organizational chart starting with the superintendent of the school system down to the students.
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Planning
Long-range planning-top-level management decides how the company should perform
Planning Questions Management Must Address
What must be done?
Who will do it?
How will the work be grouped?
Who supervises whom?
Who makes decisions about the work to be done?
Ask students to answer Questions #1-5 under Part B for organizing a prom
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10. Questions of the Planning Process
Applied and answered when leaders meet with the management team
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Organizing
Assign managers different tasks
Coordinate activities of managers
Each manager organizes his/her department and knows what other managers are doing
Must determine who makes decisions and who answers to whom
Explain why managers must understand the team concept and why it is important to respect the work completed by other managers
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Leading
Set Standards
-so managers know their goals
Communicate with Managers
-to provide guidance and resolve conflicts
Encourage Employees
-offer incentives such as pay raises and promotions
Ask students for a list of leadership characteristics. Then ask students to circle the characteristics they possess
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Controlling
Keeping the Company on Track-to meet all goals
Keep track of the budget, the schedule, and the quality of the product
Monitor employees and review their performance
Monitor customer satisfaction
Ask students why customer satisfaction should be a part of the company organization. Then ask students why customer service should be the #1 priority for the company.
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Managers
Most Managers
Begin their careers as company employees
Are promoted after they have gained experience and have shown leadership qualities
Managerial Qualities
Ability to perform varied activities
Ability to work under pressure
Effective communication
Interpersonal skills
Ability to gather and use information
Survey the class to determine how many students have jobs. Then ask students to list characteristics needed to be a manager at their workplace.
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15. Advantages Associated with Being a Manager
Higher earnings
Prestige
More influence on how the company is run
Greater control over personal time
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16. Disadvantages Associated with Being a Manager
Take the blame when things go wrong
Wrong decisions are costly and can affect numerous employees
Can have an adverse affect on relationship with lower-level employees
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Teamwork
Collaboration is important
Flexibility, creativity, good communication, shared goals
Work as a team-to accomplish company goals
Brainstorm for solutions
Listen to team members
Ask students why listening is so important in the workplace. Then describe the importance of all employees taking ownership in the goals of the company.
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