Organizational structures

Organizational StructuresBusiness Management

Mrs. Walton

Student will be able to:O Explain how businesses organize for

managementO List three levels of management and

compare their responsibilitiesO Name the four functions of

managementO Analyze if a managerial position is

for you.

Key TermsO Management

planO Organizational

chartO Line authorityO Centralized

organizationO Decentralized

organization

O Departmentalization

O Top-level manager

O Middle managerO Operational

manager

Managerial StructuresO Managerial plan divides a company

into different departments run by different managers

O Organizational chart shows how the business is structured and who is in charge of whom

Authority

Line authority – the managers at the top of the line are in charge of those beneath themCentralized organization puts authority on one place, with top managementDecentralized organization gives authority to a number of different managers to run their own departments

Structure

Departmentalization divides responsibility among specific units or departments

Levels of ManagementO Top-level managers are responsible

for setting goals and planning for the future

O Middle manager carry out the decisions of top managementO Plant manager O Regional managersO Department heads

O Operational managers are responsible for the daily operation of the business

Managerial FunctionsO Planning and StaffingO OrganizingO LeadingO Controlling

Manager QualitiesO Ability to perform varied activitiesO Ability to work under pressureO Effective communicationO Interpersonal skillsO Ability to gather and use information

If you are offered the position there are things

to be consideredAdvantages Disadvantages

O Earn more moneyO Position carries

more respect and prestige

O Have more authorityO Have greater control

over your time and how to spend it

O Get the blame when things go wrong

O Become target for criticism

O Pressure to do it right the first time

O Relationship with your peer change