2. Chapter 7 Organizational Structurespp. 110-121

3. Chapter 7 - Organizational StructuresSlide 2 Learning Objectives 1.Explain the overall purpose of management. 2.Describe 2.Describe the four functions of management. 3.Analyze 3.Analyze if a managerial position is for you. Why It’s Important Understanding business organization and management is key to knowing how a company is run.

4. Chapter 7 - Organizational StructuresSlide 3 Being a Manager Most mgrs begin as employees Promoted after they have gained experience and have shown certain leadership qualities Focus is on goals Position of authority

5. Chapter 7 - Organizational StructuresSlide 4 4 Management Functions

6. Chapter 7 - Organizational StructuresSlide 5Planning Top-level Management decides how the company should perform (long range planning/goals) What must be done? Who will do it? How will work be grouped? Who supervises whom? (map it out) Who makes decisions about the work to be done?

7. Chapter 7 - Organizational StructuresSlide 6Organizing To organize a business: assign mgrs different tasks coordinate their activities Each Manager has to: organize his or her department know what other managers doing Need to determine who makes decisions and who answers to whom

8. Chapter 7 - Organizational StructuresSlide 7 Levels of Management Most businesses have three levels of managers: Top-level managers Middle managers Operational managers

9. Chapter 7 - Organizational StructuresSlide 8 Top-level managers - are responsible for setting goals and planning for the future Middle managers - carry out the decisions of top management Operational managers - are responsible for the daily operations of the business

10. Chapter 7 - Organizational StructuresSlide 9 Leading Good mgmt requires good leadership Create vision to inspire employees Set standards so managers know goals Communicate with mgrs to provide guidance and resolve conflicts Encourage/Motivate your employees Most companies offer incentives such as pay raises and promotions

11. Chapter 7 - Organizational StructuresSlide 10 Controlling …means keeping the company on track and making sure all goals are met Keep track of: the budget the schedule the quality of the product Monitor - employees (review their performance); customer satisfaction

12. Chapter 7 - Organizational StructuresSlide 11 ?????????????????????  What are the four functions of a manager?  Planning  Organizing  Controlling  Leading

13. Chapter 7 - Organizational StructuresSlide 12 HOMEWORK  Rd. Pgs. 115-119  Questions 1-3 on Pg. 119

14. Chapter 7 - Organizational StructuresSlide 13 Learning Objectives 1.Identify the different management structures 2.Name six skills needed by managers 3.Analyze if a managerial position is for you. Why It’s Important Understanding business organization and management is key to knowing how a company is run.

15. Chapter 7 - Organizational StructuresSlide 14 Managerial Structures management plan - divides a company into different departments run by different managers Companies use an organizational chart to show how the business is structured and who is in charge of whom

16. Chapter 7 - Organizational StructuresSlide 15 line authority - Managers at the top of the organization are in charge of those beneath them Managerial Structures PRESIDENT NATIONAL SALES MGR Eastern Regional Sales Northern Regional Sales Southern Regional Sales Western Regional Sales

17. Chapter 7 - Organizational StructuresSlide 16 Centralized organization puts authority in one place, with top management Managerial Structures NATIONAL SALES MGR Eastern Regional Sales Northern Regional Sales Southern Regional Sales Western Regional Sales PRESIDENT

18. Chapter 7 - Organizational StructuresSlide 17 Decentralized organization gives authority to a number of different managers to run their own departments. Managerial Structures PRESIDENT Marketing Dept Mgr. Layout Dept Mgr. Art Production Dept Mgr. Graphic Design Picture Layout ColoringWord Layout Promotions Advertising

19. Chapter 7 - Organizational StructuresSlide 18 ?????????????????????  You would use one of these to show how a business is structured and whom is in charge of whom.  Organizational Chart

20. Chapter 7 - Organizational StructuresSlide 19 Formal Structure Formal structures are usually departmentalized Departmentalization divides responsibility among specific units, or departments COMIC BOOK COMPANY DISTRIBUTION DEPT. ADVERTISING DEPT. INTERNATIONAL SALES NATIONAL SALES NEWSPAPER COMICS BOOKS

21. Chapter 7 - Organizational StructuresSlide 20 Formal Structure Departments can be organized by: 1)WHAT THEY DO/FUNCTION 2)REGION/LOCATION 3)PRODUCT

22. Chapter 7 - Organizational StructuresSlide 21 Informal Structure Smaller businesses can be run more informally If a business does not need big departments, employees can share responsibilities. SMALL COMIC BOOK COMPANY WORKER #1WORKER #2 Workers COLLABORATE and share responsibilities

23. Chapter 7 - Organizational StructuresSlide 22 ????????????????????  By which ways are most businesses departmentalized? 1)WHAT THEY DO/FUNCTION 2)REGION/LOCATION 3)PRODUCT

24. Chapter 7 - Organizational StructuresSlide 23 6 Skills Needed by managers 1.Task-oriented 2.Able to work under pressure 3.Problem solver 4.Effective Communicator 5.Work well with others 6.Technical Knowledge

25. Chapter 7 - Organizational StructuresSlide 24 Advantages to Being a Manager earn more money than employees has prestige have more influence on company have greater control over their time and how they will spend it

26. Chapter 7 - Organizational StructuresSlide 25 Disadvantages to Being a Manager Get the blame when things go wrong, even if another employee caused the problem Manager mistakes can be more costly because their decisions affect many workers Relationships with lower-level employees is different than their relationship with fellow managers

27. Chapter 7 - Organizational StructuresSlide 26 ?????????????????????  What are two advantages to being a manager?  Earn more money  Prestige  Influence  More control over your time  What are two disadvantages to being a manager?  Get blames  Mistakes more costly  Lose relationship with lower-level employees

28. Chapter 7 - Organizational StructuresSlide 27 HOMEWORK  Review Key Concepts (Pg. 120)  Questions 2-5

29. Chapter 7 - Organizational StructuresSlide 28 Engage in problem solving while creating and offering solutions within constraints. Tips on “Improving” Your Teamwork Business Building Blocks

30. Chapter 7 - Organizational StructuresSlide 29 In fact, those characteristics also describe improvisation—to arrange something offhand. continued Developing Teamwork Business Building Blocks

31. Chapter 7 - Organizational StructuresSlide 30 To accomplish a goal in a company, people must work together. continued Developing Teamwork Business Building Blocks

32. Chapter 7 - Organizational StructuresSlide 31 Working as a team is better than working separately. Listen to each other as you brainstorm for solutions. continued Tips on “Improving” Your Teamwork Business Building Blocks

33. Chapter 7 - Organizational StructuresSlide 32 How do you suppose a lattice organization is run? continued

34. Chapter 7 - Organizational StructuresSlide 33 What are the benefits of a management style that has no chain of command? continued

35. Chapter 7 - Organizational StructuresSlide 34 What are the challenges of a team formed of associates rather than employees? continued

36. Chapter 7 - Organizational StructuresSlide 35 In terms of teamwork, what does it mean when a person takes an action that is “below the waterline”?

37. End of Chapter 7 Organizational Structure

38. Chapter 7 - Organizational StructuresSlide 37 PRINCIPAL - JOHNSON Marketing Dept Mgr. Layout Dept Mgr. ASST. PRINCIPALS – RUNCK/HARTMAN Graphic Design Picture Layout ColoringWord Layout Promotions Advertising