chapter 7 business management section 7.2 management structures
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Chapter 7
BusinessManagement
Section 7.2
ManagementStructures
Read to Learn
Identify the differences between management structures.
Name six skills necessary for effective management.
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
Line Authority Organizational Chart
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
Centralized organizations help managers throughout the firm to be consistent in decision making.
Centralized organizationAn organization that puts authority in one place – with top management
Centralized Organization
Managerial Structures
Decentralized organizations are often found in international businesses.
decentralized organizationan organization that gives authority to a number of different managers
Centralized Organization
Decentralized Organization
Decentralized
Organization
Formal Structure
Formal structures usually employ departmentalization.
departmentalizationan organizational structure that divides responsibility among specific units, or departments
CentralizedDecentralized
Decentralized
Departmentalization
Depar
tmen
taliz
ation
Departmentaliz
ation
Departmentaliza
tion
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.
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
HumanRelations
Understanding the Business
Graphic Organizer
Advantages ofBeing a Manager
More money
Respect Prestige
Greaterinfluence
More controlover time
Graphic Organizer
Disadvantages ofBeing a Manager
Mistakes arecostly
Pressure
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
ManagementStructures
End of
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