Chapter 7 Organizational Structures

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1 Organizational Structures pp Back to Table of Contents

2 Learning Objectives After completing this chapter, you ll be able to: 1. Explain how businesses organize for management. 2. List three levels of management and compare their responsibilities. continued Introduction to Business, Organizational Structures Slide 2 of 55

3 Learning Objectives After completing this chapter, you ll be able to: 3. Name the four functions of management. 4. Analyze if a managerial position is for you. Introduction to Business, Organizational Structures Slide 3 of 55

4 Why It s Important Understanding business organization and management is key to knowing how a company is run. Introduction to Business, Organizational Structures Slide 4 of 55

5 Key Words management plan organizational chart line authority centralized organization decentralized organization departmentalization continued Introduction to Business, Organizational Structures Slide 5 of 55

6 Key Words top-level managers middle managers operational managers Introduction to Business, Organizational Structures Slide 6 of 55

7 Managerial Structures A management plan divides a company into different departments run by different managers. Introduction to Business, Organizational Structures Slide 7 of 55

8 Managerial Structures Companies use an organizational chart to show how the business is structured and who is in charge of whom. Introduction to Business, Organizational Structures Slide 8 of 55

9 Managerial Structures One way to organize management is called line authority. Managers at the top of the organization are in charge of those beneath them. Introduction to Business, Organizational Structures Slide 9 of 55

10 Managerial Structures Centralized organization puts authority in one place, with top management. Introduction to Business, Organizational Structures Slide 10 of 55

11 Managerial Structures Decentralized organization gives authority to a number of different managers to run their own departments. Introduction to Business, Organizational Structures Slide 11 of 55

12 Figure 7.1 WATERFOWL MANAGEMENT PLAN Fifty-three percent of the original 221 million wetland acres found in the United States has been destroyed. The waterfowl depend upon the wetlands. The North American Waterfowl Management Plan is a joint venture to preserve migratory birds and their habitats. How might this management plan save the habitats? Introduction to Business, Organizational Structures Slide 12 of 55

13 Formal Structure Formal structures are usually departmentalized. Departmentalization divides responsibility among specific units, or departments. Introduction to Business, Organizational Structures Slide 13 of 55

14 Informal Structure Smaller businesses can be run more informally. If a business does not need a big marketing or distribution network, it does not need a lot of managers. Introduction to Business, Organizational Structures Slide 14 of 55

15 Fast Review 1. Explain the organizational structures of business. 2. Give an example of departmentalization. Introduction to Business, Organizational Structures Slide 15 of 55

16 Levels of Management Most businesses have three levels of managers: Top-level managers Middle managers Operational managers Introduction to Business, Organizational Structures Slide 16 of 55

17 Levels of Management Top-level managers are responsible for setting goals and planning for the future. Introduction to Business, Organizational Structures Slide 17 of 55

18 Levels of Management Middle managers carry out the decisions of top management. Introduction to Business, Organizational Structures Slide 18 of 55

19 Levels of Management Operational managers are responsible for the daily operations of the business. Introduction to Business, Organizational Structures Slide 19 of 55

20 Graphic Organizer Chapter 7 Graphic Organizer 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 Introduction to Business, Organizational Structures Slide 20 of 55

21 Fast Review 1. What are three levels of management? 2. Which of the three levels is most involved in the day-to-day supervision of employees? Introduction to Business, Organizational Structures Slide 21 of 55

22 Planning A good manager has four different functions: Planning Organizing Leading Controlling Introduction to Business, Organizational Structures Slide 22 of 55

23 Planning Long-range planning involves top-level management deciding how the company should perform. Introduction to Business, Organizational Structures Slide 23 of 55

24 Planning As part of the planning process, management must answer the following key questions: What must be done? Who will do it? continued Introduction to Business, Organizational Structures Slide 24 of 55

25 Planning How will the work be grouped? Who supervises whom? Who makes decisions about the work to be done? Introduction to Business, Organizational Structures Slide 25 of 55

26 Planning The key questions of the planning process are applied and answered when you get together with your management team. Introduction to Business, Organizational Structures Slide 26 of 55

27 Organizing To organize a business plan you need to assign managers different tasks and coordinate their activities. Introduction to Business, Organizational Structures Slide 27 of 55

28 Organizing Each manager needs to organize his or her department and know what the other managers are doing. You need to determine who makes decisions and who answers to whom. Introduction to Business, Organizational Structures Slide 28 of 55

29 Leading Good management also requires good leadership. You have to create a vision of your company to inspire your employees. Introduction to Business, Organizational Structures Slide 29 of 55

30 Leading You need to set standards so your managers know their goals. You need to communicate with them to provide guidance and resolve conflicts. Introduction to Business, Organizational Structures Slide 30 of 55

31 Leading You especially want to encourage your employees. Most companies offer incentives such as pay raises and promotions. Introduction to Business, Organizational Structures Slide 31 of 55

32 Controlling Controlling means keeping the company on track and making sure all goals are met. Introduction to Business, Organizational Structures Slide 32 of 55

33 Controlling You have to keep track of the budget, the schedule, and the quality of the product. You also have to monitor your employees and review their performance. Introduction to Business, Organizational Structures Slide 33 of 55

34 Controlling Controlling also involves monitoring customer satisfaction. Introduction to Business, Organizational Structures Slide 34 of 55

35 Figure 7.2 MANAGEMENT FUNCTIONS Managers carry out four different functions. Which function involves coordinating resources? Introduction to Business, Organizational Structures Slide 35 of 55

36 Fast Review 1. What are the four functions of management? 2. What is a manager s objective in leading? Introduction to Business, Organizational Structures Slide 36 of 55

37 Is Being a Manager for You? Most managers begin their careers as company employees. They re promoted after they have gained experience and have shown certain leadership qualities. Introduction to Business, Organizational Structures Slide 37 of 55

38 Is Being a Manager for You? Managerial qualities include: Ability to perform varied activities Ability to work under pressure Effective communication Interpersonal skills Ability to gather and use information Introduction to Business, Organizational Structures Slide 38 of 55

39 Advantages to Being a Manager Managers usually earn more money than employees in non-management jobs. Being a manager has prestige. Introduction to Business, Organizational Structures Slide 39 of 55

40 Advantages to Being a Manager Because managers are leaders, they have more influence than other employees on how the company is run. Introduction to Business, Organizational Structures Slide 40 of 55

41 Advantages to Being a Manager Managers also have greater control over their time and how they will spend it. Introduction to Business, Organizational Structures Slide 41 of 55

42 Disadvantages to Being a Manager Managers get the blame when things go wrong, even if another employee caused the problem. Introduction to Business, Organizational Structures Slide 42 of 55

43 Disadvantages to Being a Manager When managers make mistakes, they can be more costly than other employees mistakes because their decisions affect many workers. Introduction to Business, Organizational Structures Slide 43 of 55

44 Disadvantages to Being a Manager Some managers feel their relationship with lower-level employees is different than their relationship with fellow managers. Introduction to Business, Organizational Structures Slide 44 of 55

45 Fast Review 1. What are five qualities or skills a manager should have? 2. What are the advantages and disadvantages of being a manager? Introduction to Business, Organizational Structures Slide 45 of 55

46 Business Building Blocks Developing Teamwork In business, collaboration is key. Working in a team requires flexibility, creativity, good communication, and shared goals. continued Introduction to Business, Organizational Structures Slide 46 of 55

47 Business Building Blocks Developing Teamwork In fact, those characteristics also describe improvisation to arrange something offhand. continued Introduction to Business, Organizational Structures Slide 47 of 55

48 Business Building Blocks Developing Teamwork To accomplish a goal in a company, people must work together. continued Introduction to Business, Organizational Structures Slide 48 of 55

49 Business Building Blocks Tips on Improving Your Teamwork Working as a team is better than working separately. Listen to each other as you brainstorm for solutions. continued Introduction to Business, Organizational Structures Slide 49 of 55

50 Business Building Blocks Tips on Improving Your Teamwork Engage in problem solving while creating and offering solutions within constraints. Introduction to Business, Organizational Structures Slide 50 of 55

51 How do you suppose a lattice organization is run? continued Introduction to Business, Organizational Structures Slide 51 of 55

52 What are the benefits of a management style that has no chain of command? continued Introduction to Business, Organizational Structures Slide 52 of 55

53 What are the challenges of a team formed of associates rather than employees? continued Introduction to Business, Organizational Structures Slide 53 of 55

54 In terms of teamwork, what does it mean when a person takes an action that is below the waterline? Introduction to Business, Organizational Structures Slide 54 of 55

55 End of Chapter 7 Organizational Structures pp Back to Table of Contents