Organizational Structures Chapter 7 23 June 2016

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 managerial positions is for you.

Managerial Structures  Management plan = divides a company into different departments run by different managers.  Organizational chart = shows how the business is structured and shows who is in charge of whom.

Managerial Structures  Line authority = the managers at the top of the line are in charge of those beneath them.  Centralized organization = authority is in one place with the top management.  Decentralized organization = authority is given to many different managers to run their own departments.

Formal Structure  Departmentalization = divides responsibility among specific units or departments. By what they do By region By what they make

Informal structure  Many smaller businesses are able to operate informally because there are fewer employees to manage.

Levels of Management  Top-level = responsible for setting goals and planning for the future. Presidents Vice Presidents CEO’s = chief executive officer CFO’s = chief financial officer

Levels of Management  Middle managers = carry out the decisions made by top management. Plant managers = in charge of one specific location. Regional managers = in charge of several offices within one region. Department heads = in charge of one department.

Levels of Management  Operational managers = responsible for day to day operations for something specific. Supervisors = in charge of other employees at their specific location. Office managers = in charge of making the office run smoothly. Crew leaders = in charge of a shift of workers.

Levels of Management  The fewer levels of management, the more cost effective a business usually is.  In the 1990’s many businesses cut layers of management to save money.

Managerial Functions  Planning & Staffing:  Setting realistic goals  Deciding how the company should perform. Long term & short term goals  Hire the people to meet the goals.

Managerial Functions  Organizing:  Assign managers different tasks. Budgeting Production  Coordinate activities of the managers as well as resources to meet the goals.

Managerial Functions  Leading:  Create a vision.  Inspire employees.  Set standards.  Communicate.  Influence and guide people to meet goals.

Managerial Functions  Controlling:  Keeping the company on track to meet goals.  Evaluate employees’ performance.  Solve problems.  Monitor customer satisfaction.

Are you the Manager type? 1. Can you multi-task? 2. Can you work under pressure? 3. Are you an effective communicator? 4. Do you work well with others? 5. Can you gather and use information effectively? If you answered yes to all of these questions, management may be for you!

Advantages of a Manager  Make more money.  If you’re a good leader = respect.  You have influence.  You control how you spend your time.

Disadvantages of a Manager  You get blamed when things go wrong.  Often a target of criticism.  Higher pressure.  You are not always well-liked.