2. What is an Organization?
An organization is a grouping of individuals brought together to accomplish a goal
examples include:
businesses and companies
school and club organizations
nonprofit or religious affiliations
Banks!

3. Common Characteristics of Organizations
Each organization has:
a purpose
employees or members
a systematic structure

4. Organization Purpose & Employees
employees or members are the driving force in accomplishing a purpose;
good employee management
structure
goal
Mission Statement

5. Structures of an Organization
Define roles of members
Set limits on behavior
Create rules and regulations

6. Organizational Levels
Most organizations can be divided into four basic levels:

7. Operative Employees Produce an organization’s goods and services
Generally do not manage or oversee the work of other employees
examples include:
salesperson in a retail store
teller at a bank
assembly line worker

8. Supervisors Are a part of a management team
Oversee the work of operative employees
Are considered first-level managers
examples include:
assistant manager
department chair
head coach
shift supervisor

9. Middle Managers manage other managers
Responsible for goals set by top management
examples include:
director of marketing
region bank manager
high school principal
vice president of a department

10. Top Management Sets an organization’s goals and objectives
Develops methods for achieving goals and objectives
Is the head of the organization
examples include:
chief executive officer
president
chairman of the board
senior vice-president

11. Activity Choose a business:
Briefly describe the organizational structure of that business (make sure you use a grid)
EX:

12. Organizational Details Affecting Structure

13. Work Specialization
Step by step instructions. Can be completed by a different worker each day.
example of work specialization:
Assembly line worker
Requires an individual to complete the same small task over and over again in order to contribute to a final project
Disadvantage: boredom

14. Chain of Command
Operational employee -> shift manager -> general manager -> regional manger ->owner

15. How Authority Works President Director of Operations Human Resources
Other Directors
Division 1 Manager
Division 2 Manager
Supervisor
Human
Resources
Other
Supervisors

16. Department Each area of work is divided up into different departments
Organizational Departmentalization
Product Departmentalization
Target Market Departmentalization
Geographical Departmentalization

17. Departmentalization Example
Purchasing
Manager
Business
Accounting
Human
Resources
Information
Systems
Sales

18. Product Departmentalization Example
President
Vice President,
Women’s Wear
Marketing
Planning & Economics
Supply & Distribution
Manufacturing
Men’s Wear

19. Assignment
Directions: For this assignment, you will create an organizational chart for an existing business. This can be completed in your journal. 1. Choose a business from your community or the Fortune 500 list found at 2. Create an organizational chart of the type of organizational structure used by the chosen business and explain the company’s reasoning for using the specific structure. 3. Suggest another type of organizational structure which may work for the business. Explain why it may or may not work better than the current organizational structure.