1. Chapter 7 Business Management
7.2
Management Structures

2. Managerial Structures
There are several ways to organize a management structure:
Line Authority: an organizational structure in which managers on one level are in charge of those beneath them.
Line and Staff Authority: organizational chart shows the direct line of authority as well as staff who advise the line personnel.
Centralized Organization: puts authority in one place-with top management
Decentralized Organization: gives authority to a number of different managers.

3. Formal and Informal Structure
Formal structures are usually departmentalized.
Departmentalization: divides responsibility among specific units, or departments
Departments can be organized by region, function, customer group, or product
Informal structure is usually found in small businesses.
It allows employees to be more flexible with their responsibilities and they can share duties with other workers.

4. Are you a Manager?
Entry-level Job: a beginner-level position that most managers start out in.
Skills needed by managers:
Task-oriented
Organized
Problem solving
Communication
Knowledge of business
Interdependency

5. Advantage and Disadvantages
Some advantages in being a manager include:
More compensation
Ability to lead
Respect
Prestige
Influence and authority on employees
Control of time
Some disadvantages in being a manager include:
1st to be blamed with mistakes
Mistakes can be costly
Lots of responsibility = Lots of pressure to perform

6. Homework Review questions on pg 119, 1-3
Complete 7.2 Reading Activity and 7.2 Graphic Organizer
Quiz on Friday