chapter 7 business management · chapter 7 business management section 7.2 management structures...
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Chapter 7
BusinessManagement
Section 7.2
Management
Structures
Read to Learn
Identify the differences between management
structures.
Name six skills necessary for effective
management.
The Main Idea
Businesses have many different management
structures that they can adopt. People who are
interested in management should pay attention to
the skills and knowledge needed to be an
effective manager.
Key Concepts
Managerial Structures
Is Being a Manager for You?
Key Term
line
authority
line and staff
authority
an organizational structure in
which managers on one level are
in charge of those beneath them
an organizational structure with a
direct line of authority as well as
staff who advise the line personnel
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Key Term
centralized
organization
decentralized
organization
an organizational structure in
which authority is with top
management
an organizational structure that
gives authority to a number of
different managers
Key Term
departmentalization
entry-level job
an organizational structure
that divides responsibility
among specific units, or
departments
a beginner-level position
Managerial Structures
An advantage of the
line authority
structure is that
authority is clearly
defined.
line authorityan organizational structure with managers on one level are in charge of those beneath them
Managerial Structures
The line and staff
authority structure
enables managers to
get advice. It can also
lead to overstaffing.
line and staff authorityan organizational structure in which has a direct line of authority as well as staff who advise the line personnel
Line and Staff
Authority Organization Chart
Figure 7.2 Managerial Structures
Decentralized
organizations are
often found in
international
businesses.
decentralized organizationan organization that gives authority to a number of different managers
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Formal Structure
Formal structures
usually employ
departmentalization.
departmentalizationan organizational structure that divides responsibility among specific units, or departments
Informal Structure
A business can be run informally if it does not
need a big marketing or distribution network.
Informal structures are more flexible than
formal structures.
Employee Input
Forward-looking companies are on a new track to encourage worker participation, new ways of
thinking, and a move away from formal structure.
Is a Manager’s Job for You?
Most managers begin
their career in an
entry-level job.
entry-level joba beginner-level position
Graphic Organizer
EntryLevel
GainExperience
Promotion
Graphic Organizer
Skills Needed by Managers
Task-
Oriented
KeepAccurateRecords
Work Under Pressure
Manage Time Effectively
Communicate
Well
Human
Relations
Understanding
the Business
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Graphic Organizer
Advantages ofBeing a Manager
More money
Respect Prestige
Greater
influence
More controlover time
Graphic Organizer
Disadvantages ofBeing a Manager
Mistakes are
costlyPressure
Blamed when
things go wrong
1. What is an advantage of a line and staff authority organization structure over a line authority organization?
Line and staff authority structure enables management to get advice from staff personnel.
2. Why do some businesses use a decentralized organization?
They allow decisions to be made at the local level where managers are more familiar with the problems and have the resources to solve them.
3. What are some characteristics of an effective manager?
task-oriented, able to work under pressure,effective communicator, works well with others, and technical knowledge
Chapter 7
BusinessManagement
Section 7.2
Management
Structures
End of