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

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

Line Authority Organizational Chart Manager Assistant Manager Employee

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

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

Managerial Structures Centralized organizations help managers throughout the firm to be consistent in decision making. Centralized organization An organization that puts authority in one place – with top management

Centralized Organization

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

Decentralized Organization Centralized Organization

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

Decentralized Centralized Departmentalization Decentralized Departmentalization Departmentalization Departmentalization

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.

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

Graphic Organizer Promotion Gain Experience Entry Level

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

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

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

What is an advantage of a line and staff authority organization structure over a line authority organization? Line and staff authority structure enables management to get advice from staff personnel.

Why do some businesses use a decentralized organization? They allow decisions to be made at the local level where managers are more familiar with the problems and have the resources to solve them.

What are some characteristics of an effective manager? task-oriented, able to work under pressure, effective communicator, works well with others, and technical knowledge

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