GLENCOE BUSINESS MANAGEMENT RealWorld Applications Connections Section 13
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure In this section: Sometimes managers help create the organizational structure of their company. This section discusses: • Factors Affecting Organizational Structure • Organizing a Company into Departments • Understanding the Role of Company Leadership Copyright © Glencoe/Mc. Graw-Hill Slide 1 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure What You’ll Learn • • The different ways in which companies organize their departments. Why a company’s structure needs to change as the company grows. The role of the chief executive officer. The role of the board of directors. Copyright © Glencoe/Mc. Graw-Hill Slide 2 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Why It’s Important Managers both help create and work within organizational structures. Copyright © Glencoe/Mc. Graw-Hill Slide 3 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Key Terms • committee • chief executive officer • board of directors Copyright © Glencoe/Mc. Graw-Hill Slide 4 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Factors Affecting Organizational Structure A job design describes the work an individual or group of individuals is supposed to perform. It has two parts: • Size • Type of Service or Product Copyright © Glencoe/Mc. Graw-Hill Slide 5 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Copyright © Glencoe/Mc. Graw-Hill Slide 6 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Organizing a Company into Departments • Organizing Departments by Work Functions • Organizing Departments by Product • Organizing Departments in Other Ways Copyright © Glencoe/Mc. Graw-Hill Slide 7 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Organizing Departments by Work Functions • Production—the actual creation of a company’s goods or services. • Marketing—product development, pricing, distribution, sales, and advertising. • Finance—maintains financial statements and obtains credit so company can grow. • Human resources—hires employees and places them in appropriate jobs. Copyright © Glencoe/Mc. Graw-Hill Slide 8 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Copyright © Glencoe/Mc. Graw-Hill Slide 9 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Copyright © Glencoe/Mc. Graw-Hill Slide 10 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Understanding the Role of Company Leadership Three examples of leadership roles in organizational structures include: 1. 2. 3. Committees Chief Executive Officer Board of Directors Copyright © Glencoe/Mc. Graw-Hill Slide 11 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Committees Guidelines for choosing and managing a committee are: • clearly define the committee’s function • establish authority figures within a committee • set clear goals for members to attain • decide on the limits of a committee’s power Copyright © Glencoe/Mc. Graw-Hill Slide 12 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Chief Executive Officer The chief executive officer (CEO) is the top executive in a company. Along with other senior managers, the CEO: • sets the company’s objectives • makes decisions about meeting the company’s objectives • determines who fills senior management positions cont. Copyright © Glencoe/Mc. Graw-Hill Slide 13 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Chief Executive Officer cont. • develops the company’s long-term strategies • attends the company’s annual stockholders’ meeting and answers questions about the company’s activities • takes charge of the company in a crisis • works with the board of directors Copyright © Glencoe/Mc. Graw-Hill Slide 14 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Board of Directors The role of the board of directors includes: • being the legal representative of a company’s stockholders (a company’s owners) • approving the most important decisions made by the company’s CEO • examining all major decisions to ensure that they are in the best interest of the company’s stockholders Copyright © Glencoe/Mc. Graw-Hill Slide 15 of 16
GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 13. 2 Creating an Organizational Structure Fact and Idea Review 1. What are three organizational stages a company will go through? 2. Name two different ways a company can organize its departments. 3. Explain some of the duties of a chief executive officer. 4. What is the difference between an inside board member and an outside board member? 5. How can a manager increase committee efficiency? Copyright © Glencoe/Mc. Graw-Hill Slide 16 of 16
- Slides: 16