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

3. The Main Idea
Businesses have many different management structures that they can adopt. People who are interested in management should pay attention to the skills and knowledge needed to be an effective manager.

4. Key Concepts
Managerial Structures
Is Being a Manager for You?

5. Discussion Starter
Why are clear lines of authority important?

6. Managerial Structures
An advantage of the line authority structure is that authority is clearly defined.
Disadvantage: managers have few specialists who help with their responsibilities
line authority
an organizational structure with managers on one level are in charge of those beneath them

7. Managerial Structures
An advantage of the line and staff authority structure enables managers to get advice.
A disadvantage is it can also lead to overstaffing.
line and staff authority
an organizational structure in which has a direct line of authority (solid lines) as well as staff who advise the line personnel (dotted lines)

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

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

10. Managerial Structures
Decentralized organizations are often found in international businesses. Some managers working in foreign countries have more decision making power because they know their markets well.
decentralized organization
an organization that gives authority to a number of different managers

11. Formal Structure Formal structures usually employ departmentalization.
They can be organized by geographical location, function, customer groups and product.
departmentalization
an organizational structure that divides responsibility among specific units, or departments

12. Informal Structure
A business can be run informally if it does not need a big marketing or distribution network because it will not need a lot of managers.
Informal structures are more flexible than formal structures where employees can share duties.

13. Employee Input
Forward-looking companies are on a new track to encourage worker participation, new ways of thinking, and a move away from formal structure.

14. Is a Manager’s Job for You?
Most managers begin their career in an entry-level job.
New employees that gain experience and show certain qualities can be promoted to higher positions.
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. Can you answer the following questions?

20. What is an advantage of a line and staff authority organization structure over a line authority organization?

21. Why do some businesses use a decentralized organization?

22. What are some characteristics of an effective manager?

23. End of