Chapter 7 Business Management 7 2 Management Structures

Chapter 7 Business Management 7. 2 Management Structures

Managerial Structures n There are several ways to organize a management structure: n n 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 placewith top management Decentralized Organization: gives authority to a number of different managers.

Formal and Informal Structure n n Formal structures are usually departmentalized. Departmentalization: divides responsibility among specific units, or departments n n n 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.

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

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

Homework n n n Review questions on pg 119, 1 -3 Complete 7. 2 Reading Activity and 7. 2 Graphic Organizer Quiz on Friday