Intro to Business 5-3 Organizational Structure for Businesses

Designing an Effective Business Organization Setting Direction Setting Direction Mission Statement : A statement that is short, specific written statement of the reason a business exists and what it wants to achieve Mission Statement : A statement that is short, specific written statement of the reason a business exists and what it wants to achieve

Our (LCS) mission statement Who can find this first? Who can find this first? Where is it located? Where is it located?

Mission Statement (cont.) Next find the mission statement to any company of your choice. Next find the mission statement to any company of your choice. –What do you notice about it? –How is it stated? –What things does it talk about?

Terms Goal: A precise statement of results the business expects to achieve Policies: Guidelines used in making consistent decisions Policies: Guidelines used in making consistent decisions Procedures: Descriptions of the way work is to be done Procedures: Descriptions of the way work is to be done

Designing an Effective Business Organization Principles of Effective Organizations Principles of Effective Organizations Responsibility is the obligation to complete specific work. Authority the right to make decisions about how responsibility should be accomplished Accountability is taking responsibility for the results achieved In an effective business, all managers and employees have set responsibilities for their part of the job. They also have the authority to make decisions. Finally, they must be accountable for their actions and take responsibility.

Principles of an effective org. Unity of Command – there is a clear reporting relationship for all staff of a business. Unity of Command – there is a clear reporting relationship for all staff of a business. People need to know who to report to and what to do…if the relationships are unclear, this creates confusion in the work environment People need to know who to report to and what to do…if the relationships are unclear, this creates confusion in the work environment Who approves the budget?

Mr. Chris Rice Superintendant Assistant Superintendent Tamara Webster Principals Assistant Principals Department Chairs Instructors Curriculum Director Tamara Webster Finance Director

Span of Control The number of employees who are assigned to a particular work task and manager. The number of employees who are assigned to a particular work task and manager. Balance of supervision Balance of supervision –Few employees per manager = > control –Too many employees per manager = < control SOC can be greater for motivated, responsible workers, less for inexperienced, non-motivated workers SOC can be greater for motivated, responsible workers, less for inexperienced, non-motivated workers

Organization Chart Diagram that shows the structure of an organization, classifications of work and jobs, and the relationship among those classifications. Diagram that shows the structure of an organization, classifications of work and jobs, and the relationship among those classifications.

Structures Functional – work is arranged within main business function such as production, operations, marketing, and human resources Functional – work is arranged within main business function such as production, operations, marketing, and human resources Adv. – related people work together Adv. – related people work together Dis. – focused on only one function vs. the whole Dis. – focused on only one function vs. the whole Matrix – work is structured around specific projects, products, or customer groups Matrix – work is structured around specific projects, products, or customer groups Adv. – work with a variety of people w/ different skills Adv. – work with a variety of people w/ different skills Dis. – can be confusing, needs good leadership[ Dis. – can be confusing, needs good leadership[

Key Concepts Answer questions 1-3 Pg. 118 Answer questions 1-3 Pg. 118 Then create a SmartArt Graphic at the end of the above questions. Then create a SmartArt Graphic at the end of the above questions. –It can be ANY style you would like –You need to organize the chart based on your family structure. Think of like a family tree. This can include grandpas & grandmas, aunts & uncles, etc. This can include grandpas & grandmas, aunts & uncles, etc. Who reports to who? Who reports to who?