1. Section 11.1 Management Structures
Marketing Essentials
n Chapter 11 Management Skills
Section Management Structures

2. Management Structures
SECTION 11.1
Management Structures
What You'll Learn
How horizontally organized companies differ from traditionally organized companies
The three levels of management
How a self-managing team functions

3. Management Structures
SECTION 11.1
Management Structures
Why It's Important
You will probably have an opportunity to work in management at some point in your career—maybe earlier than you might think. Management involves communication and interpersonal skills. A job in management is a challenge for anyone, and a basic understanding of management structure and functions, presented in this section, will give you an advantage.

4. Management Structures
SECTION 11.1
Management Structures
Key Terms
vertical organization
top management
middle management
supervisory-level management
horizontal organization
empowerment

5. Management Structures
SECTION 11.1
Management Structures
Types of Management Structures
Management is the process of reaching goals through the use of human resources, technology, and material resources. To facilitate effective management, businesses are organized in two ways:
vertically
horizontally

6. Management Structures
SECTION 11.1
Management Structures
Vertical Organization
There are three levels of management in vertically organized companies:
top management
middle management
supervisory-level management
Slide 1 of 4

7. Management Structures
SECTION 11.1
Management Structures
Vertical Organization
Top management are those who make the planning decisions that affect the whole company. Top management job titles include:
Chief Executive Officer
President
Chief Operating Officer
Vice President
Slide 2 of 4

8. Management Structures
SECTION 11.1
Management Structures
Vertical Organization
Middle management implements the decisions of top management. They communicate with and support supervisory-level managers.
Slide 3 of 4

9. Management Structures
SECTION 11.1
Management Structures
Vertical Organization
Supervisory-level management supervises the activities of employees who carry out the tasks determined by the plans of middle and top management. They assign duties and evaluate the work of production or service employees.
Slide 4 of 4

10. Management Structures
SECTION 11.1
Management Structures
Horizontal Organization
Horizontal organization involves self-managing teams that set their own goals and make their own decisions. This type of management structure is organized by process instead of function and is customer-oriented.
Slide 1 of 4

11. Management Structures
SECTION 11.1
Management Structures
Horizontal Organization
Self-Managing Teams Instead of reporting up a chain of command, employees are organized into teams that manage themselves. Each team has an "owner" who has ultimate responsibility for ensuring the team meets its goals. He or she acts like a coach.
Slide 2 of 4

12. Management Structures
SECTION 11.1
Management Structures
Horizontal Organization
Organization by Process Teams of people with different specializations are organized around processes, such as developing new products or providing customer support. Team members share opinions, decisions, and responsibility for the team's success or failure.
Slide 3 of 4

13. Management Structures
SECTION 11.1
Management Structures
Horizontal Organization
Customer Orientation Teams get their direction from the customer, rather than from management.
Customer satisfaction should produce large profits, high productivity, and satisfied investors.
Slide 4 of 4

14. Reviewing Key Terms and Concepts
ASSESSMENT
11.1
Reviewing Key Terms and Concepts
1. What is the principal difference between the structure of a vertical company and the structure of a horizontal company?
2. What are the three levels of management?
3. Why did many companies choose to downsize in the 1980s and 1990s?
4. What is the role of the "owner" in a self-managing team?

15. ASSESSMENT Thinking Critically 11.1
Would you feel more comfortable in a traditional company where you answered to only one supervisor or in a horizontal company where you have many people giving you feedback about your efforts? Compare the advantages of each organizational model, as you see them.