2. Read to Learn
Identify the differences between management structures.
Name six skills necessary for effective management.

3. Managerial Structures
An advantage of the line authority structure is that authority is clearly defined.
line authority
an organizational structure with managers on one level are in charge of those beneath them

4. Line Authority Organizational Chart
Manager
Assistant Manager
Employee

5. Managerial Structures
The line and staff authority structure enables managers to get advice. It can also lead to overstaffing.
line and staff authority
an organizational structure in which has a direct line of authority as well as staff who advise the line personnel

6. Line and Staff Authority Organization Chart
Figure 7.2
Line and Staff Authority Organization Chart

7. Managerial Structures
Centralized organizations help managers throughout the firm to be consistent in decision making.
Centralized organization
An organization that puts authority in one place – with top management

8. Centralized Organization

9. Managerial Structures
Decentralized organizations are often found in international businesses.
decentralized organization
an organization that gives authority to a number of different managers

10. Decentralized Organization Centralized Organization

11. Formal structures usually employ departmentalization.
an organizational structure that divides responsibility among specific units, or departments

12. Decentralized
Centralized
Departmentalization
Decentralized
Departmentalization
Departmentalization
Departmentalization

13. Informal Structure
A business can be run informally if it does not need a big marketing or distribution network.
Informal structures are more flexible than formal structures.

14. Is a Manager’s Job for You?
Most managers begin their career in an entry-level job.
entry-level job
a beginner-level position

15. Graphic Organizer
Promotion
Gain Experience
Entry Level

16. Manage Time Effectively Understanding the Business
Graphic Organizer
Skills Needed by Managers
Keep Accurate Records
Task- Oriented
Work Under Pressure
Manage Time Effectively
Communicate Well
Human Relations
Understanding the Business

17. Advantages of Being a Manager
Graphic Organizer
More control over time
Greater influence
More money
Advantages of Being a Manager
Respect
Prestige

18. Blamed when things go wrong Disadvantages of Being a Manager
Graphic Organizer
Blamed when things go wrong
Disadvantages of Being a Manager
Mistakes are costly
Pressure

19. What is an advantage of a line and staff authority organization structure over a line authority organization?
Line and staff authority structure enables management to get advice from staff personnel.

20. Why do some businesses use a decentralized organization?
They allow decisions to be made at the local level where managers are more familiar with the problems and have the resources to solve them.

21. What are some characteristics of an effective manager?
task-oriented, able to work under pressure,
effective communicator, works well with others, and technical knowledge

22. End of