Copyright © Texas Education Agency, All rights reserved Principles of Business, Marketing, and Finance Business Operations and Organizational Structures Copyright © Texas Education Agency, All rights reserved

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 Copyright © Texas Education Agency, All rights reserved.2

Formal Structure Informal Structure Types of Organizational Structure Copyright © Texas Education Agency, All rights reserved. 3

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 Copyright © Texas Education Agency, All rights reserved.4

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 Copyright © Texas Education Agency, All rights reserved.5

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 Principles of Effective Organization Copyright © Texas Education Agency, All rights reserved.6

How Departments are Organized By function By product By location Copyright © Texas Education Agency, All rights reserved.7

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 UNT in partnership with TEA, Copyright ©. All rights reserved 8 Copyright (c) Texas Education Agency, All rights reserved.8

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? Copyright © Texas Education Agency, All rights reserved.9

Questions of the Planning Process Applied and answered when leaders meet with the management team UNT in partnership with TEA, Copyright ©. All rights reserved 10 Copyright © Texas Education Agency, All rights reserved.10

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 Copyright © Texas Education Agency, All rights reserved.11

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 Copyright © Texas Education Agency, All rights reserved.12

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 Copyright © Texas Education Agency, All rights reserved.13

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 Copyright © Texas Education Agency, All rights reserved.14

Advantages Associated with Being a Manager Higher earnings Prestige More influence on how the company is run Greater control over personal time Copyright © Texas Education Agency, All rights reserved.15

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 Copyright © Texas Education Agency, All rights reserved.16

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 Copyright © Texas Education Agency, All rights reserved.17