Organizational Structure and Functions of Management Organizational Structure

Organizational Structure and Functions of Management

Organizational Structure � Essentially, the organizational structure is how the company would look if you were to analyze all the departments � The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, and allocates rights and duties. � The 2 most common forms are �Centralized �Decentralized � Performs 2 functions �Provides foundation for routines and operating procedures �Determines which individuals get to participate in decision making

Organizational Charts Centralized Organization Decision making is left to those at the top Decentralized Organization Decision making is done by the people in each department

Functions of Management �There are 4 main functions of every manager, no matter what the venture may involve �Planning �Bridge between where the venture is and where it wants to be �Use long-range objectives or goals and then determining how those objectives can be reached �Organizing �Finding the right people to do the work, who will do what �Organizing human, financial, material, and technological resources to achieve a goal

Functions of Management �Leading �Motivating individuals or teams to work at achieving the goals of the venture �Inspiring people to consistently give their best �Earning the respect of others �Providing direction to others �Controlling �Monitoring the employees performance and results �Checking to see if goals are being reached �Taking action to correct problems � Inventory controls, Production controls, Financial controls

Effective Leadership � Autocratic Leaders �Goal oriented, make all the decisions, expect employees to do as they are told � Democratic Leaders �Encourage employees to participate in the decision- making process, delegate the authority to make decisions � Collegial Leaders �Democratic leaders who tend to regard everyone as an equal, rather than part of a hierarchy, use team decisionmaking processes � Laissez-faire Leaders �Give employees freedom to determine what they should do and how they should do it

Leadership Tasks �Motivating Others �Resolving Conflicts �Managing Personal Stress �Facilitating Communication