Southwest Airlines believes that satisfied, happy employees are essential for successful businesses. Bell Ringer What are the advantages of a company having happy employees?

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

Managerial Structure 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 3 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork

4 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

Managerial Structure 5 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork

Managerial Structure Centralized Organizations (Examples) Humans Dictatorship Military Government Typical Corporation 6 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork

Managerial Structure Line Authority: PROS 1. Simple 2. Unity of Command 3. Disciplined 4. Fixed Responsibility 5. Flexibility 6. Prompt Decisions 7 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork

Managerial Structure Line Authority: CONS 1.Over Reliance 2.Lack of Specialization 3.On-Way Communication 4. Misused Authority 8 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork

Managerial Structure Decentralized Organization (Examples) Starfish The Internet Our Brain Terrorist Cells Open Source Software Peer to Peer Software 9 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork

Managerial Structure Fusion Organization (Examples) Reality TV Wikipedia Craigslist Facebook Ebay 10 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork

Formal Structure Informal Structure 11 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Operational Design divides responsibility among specific units or departments does not need a lot of managers

Mission Statement: A 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 12 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Business Guidelines

13 Business Guidelines A School Mission Statement our mission is to provide a safe environment which promotes respect and motivates students to learn and to act responsibly. We believe education is the shared responsibility of the student, home, school and community.

Require Responsibility: The obligation to complete specific work Appoint Authority: Right to make decisions about how responsibilities should be accomplished Accept Accountability: Taking responsibility for the results achieved Clarify Command: Clear reporting relationship for all staff of a business 14 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Effective Organizations

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 15 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Effective Organizations

16 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Department Organization Function Product Location

Top Level Managers ( Superintendent) Set goals Plan for the future Middle Managers ( Principal) Carry out the decisions of top management Plan and control operations Operational Managers (Asst. Principal) Oversee daily operations Supervise workers to meet deadlines 17 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Management Levels

PlanningOrganizingLeadingControlling 18 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork 4 Managerial Functions

Long-Range Planning Top-level management decides how the company should perform Essential Questions 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? 19 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Planning

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 20 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Organizing

Set Standards so managers know their goals Communicate with Managers to provide guidance and resolve conflicts Encourage Employees by offer incentives such as pay raises and promotions 21 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Leading What are some Leadership Characteristics?

Track Budget Schedule Product Quality Monitor Employees Performance Customer Satisfaction 22 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Controlling Why should customer service be the #1 priority for a company.

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 23 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Managers What would be characteristics of an effective manager?

Higher earnings Prestige More influence on the company Greater control over personal time 24 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Manager: Advantages

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 25 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Manager: Disadvantages

Collaboration is important Flexibility, creativity, good communication, shared goals Work as a team-to accomplish company goals Brainstorm for solutions Listen to team members 26 o Managerial Structure o Operational Design o Business Guidelines o Effective Organizations o Department Organization o Management Levels o Planning o Organizing o Leading o Controlling o Managers o Manager: Advantages o Manager: Disadvantages o Teamwork Teamwork