1. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-1 Management, Leadership, and the Internal Organization Management

2. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-2 Organizational Structure Organization chart—visual representation of a firm’s structure that illustrates job positions and functions

3. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-3 Organizational Structures Product - based on the goods and services offered Geographic - by geographic region Customer - based on customers served Functional - according to business functions such as finance, marketing, human resources, and production Process - by work processes required to complete production of goods

4. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-4 Organizational Structure Delegating Work Assignments -Delegation—act of assigning work activities to subordinates. o Accountability o Authority o Responsibility -Span of Control o Number of subordinates reporting to a manager

5. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-5 Organizational Structure Types of Organizational Structures -Line Organization o Groups directly involved in the creation and sales of products and services o E.g. R&D, production, sales -Staff Organization o Groups that support the line organization functions o E.g. Finance, Human Resources

6. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-6 In Class Exercise How would you manage traffic officers? -What is their performance objective? -How will you measure it? -What will you do with an officer not meeting his or her objectives?

7. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-7 Human Resource Management, Motivation, and Labor-Management Relations

8. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-8 Human Resource Functions Develop staffing plans based on the organization's competitive strategies Hiring process Provide job description Advertising for qualified candidates Within and without the company Review applications Interviewing done by hiring organization Prepare offer “Employment at will” EEOC

9. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Human Resource Functions Orientation and training (general) Determine compensation structure Wages and salary “Benchmarking” What compensation is not monetary? How much should a company pay its employees? 9-9

10. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. HR Functions Performance appraisal process When and how 360-degree performance review Determine employee benefits Flex benefits (cafeteria-style) Flex hours Other benefits 9-10

11. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Retirement Plans Defined benefit plans Traditional pension plans Now rare outside of government Defined contribution plans Most common Allow you to take your money if you leave 401(k) Individual, private plans IRA Roth IRA 9-11

12. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 9-12 Discussion If you need people with special, hard to find, skills, how do you get them? At job interviews: what is the interviewer looking for? how should you dress? what should you do to ensure a successful interview? Should a company promote only from within? How much should a CEO make?