Organizational Structures Unit 2, Chapter 7 Page

Organizational Structures After completing this chapter, you’ll be able to: After completing this chapter, you’ll be able to: Explain how businesses organize for management. Explain how businesses organize for management. List three levels of management and compare their responsibilities List three levels of management and compare their responsibilities Name the four functions of management Name the four functions of management Analyze if a managerial position is for you Analyze if a managerial position is for you

Organizational Structures Definition 1- Definition 1- A _________ plan divides a company into different departments run by different managers. A _________ plan divides a company into different departments run by different managers. management management

Organizational Structures Definition 2 Definition 2 Companies use a(n) _____________to show how the business is structured and who is in charge of whom Companies use a(n) _____________to show how the business is structured and who is in charge of whom organizational chart organizational chart

Organizational Structures Definition 3- Definition 3- One way to organize management is called ____________ One way to organize management is called ____________ Managers at the top of the organization are in charge of those beneath them Managers at the top of the organization are in charge of those beneath them line authority line authority

Organizational Structures Definition 4 Definition 4 _______________ puts authority in one place, with top management _______________ puts authority in one place, with top management Centralized organization Centralized organization AKA, Vertical Organization AKA, Vertical Organization

Organizational Structures Definition 5 Definition 5 ____________ gives authority to a number of different managers to run their own departments ____________ gives authority to a number of different managers to run their own departments Decentralized organization Decentralized organization AKA, Horizontal Organization AKA, Horizontal Organization

Organizational Structures 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?

Organizational Structures Definition 6 Definition 6 Formal structures are usually departmentalized Formal structures are usually departmentalized ___________ divides responsibility among specific units, or departments ___________ divides responsibility among specific units, or departments Departmentalization Departmentalization

Organizational Structures 2 Key Points: 2 Key Points: Smaller businesses can be run more informally 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 If a business does not need a big marketing or distribution network, it does not need a lot of managers

Organizational Structures Section Review 1. Explain the organizational structures of business 2. Give an example of departmentalization

Organizational Structures Most businesses have three levels of managers: Most businesses have three levels of managers: Top-level managers Top-level managers Middle managers Middle managers Operational managers Operational managers

Organizational Structures Definition 7 Definition 7 _______________ are responsible for setting goals and planning for the future _______________ are responsible for setting goals and planning for the future Top-level managers Top-level managers Definition 8 Definition 8 _________ carry out the decisions of top management _________ carry out the decisions of top management Middle managers Middle managers

Organizational Structures Definition 9 Definition 9 ______________ are responsible for the daily operations of the business ______________ are responsible for the daily operations of the business Operational managers Operational managers

Organizational Structures Graphic Organizer Levels of Management TOP LEVEL MANAGERSOPERATIONALMANAGERSMIDDLEMANAGERS Set goals Plan for the future Carry out the decisions oftop management Plan and control operations Oversee daily operations Supervise workers to meet deadlines

Organizational Structures Section 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? 3. Which is the most important? Why?

Organizational Structures A good manager has four different functions: A good manager has four different functions: Planning Planning Organizing Organizing Leading Leading Controlling Controlling

Organizational Structures As part of the planning process, management must answer the following key questions: As part of the planning process, management must answer the following key questions: What must be done? What must be done? Who will do it? Who will do it? How will the work be grouped? How will the work be grouped? Who supervises whom? Who supervises whom? Who makes decisions about the work to be done? Who makes decisions about the work to be done?

Organizational Structures What is Organizing? What is Organizing? Assigning managers different tasks to coordinate their activities Assigning managers different tasks to coordinate their activities Each manager needs to organize his or her department and know what the other managers are doing 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 You need to determine who makes decisions and who answers to whom

Organizational Structures What is Leading? What is Leading? Good management also requires good leadership Good management also requires good leadership You have to create a vision of your company to inspire your employees You have to create a vision of your company to inspire your employees You need to set standards You need to set standards Communicate with them to provide guidance and resolve conflicts Communicate with them to provide guidance and resolve conflicts Provide incentives Provide incentives

Organizational Structures What is controlling? What is controlling? Keeping the company on track and making sure all goals are met Keeping the company on track and making sure all goals are met Monitor the budget, the schedule, and the quality of the product Monitor the budget, the schedule, and the quality of the product Employees and review their performance Employees and review their performance Customer Satisfaction Customer Satisfaction

Organizational Structures 1. What are the four functions of management? 2. What is a manager’s objective in leading? 3. Who do you think is an example of an effective manager/leader? Why?

Organizational Structures Managerial qualities include: Managerial qualities include: Ability to perform varied activities Ability to perform varied activities Ability to work under pressure Ability to work under pressure Effective communication Effective communication Interpersonal skills Interpersonal skills Ability to gather and use information Ability to gather and use information

Organizational Structures Advantages of being a Manager Advantages of being a Manager Managers usually earn more money than employees in non- management jobs Managers usually earn more money than employees in non- management jobs Being a manager has prestige Being a manager has prestige Influence Influence Control over their own time Control over their own time

Organizational Structures Disadvantages of being a manager Disadvantages of being a manager Decisions can be costly in many ways (Resources, Time, People, etc.) Decisions can be costly in many ways (Resources, Time, People, etc.) Relationships with employees Relationships with employees

Organizational Structures 1. What are five qualities or skills a manager should have? 2. What are the advantages and disadvantages of being a manager? 3. Can you see yourself as a manager? Why or why not?