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Southwest Airlines believes that satisfied, happy employees are
essential for successful businesses.
Bell Ringer
What are the advantages of a company having happy employees?
Copyright © Texas Education Agency, 2011. All rights reserved
Principles of Business, Marketing, and Finance
Business Operationsand Organizational Structures
Copyright © Texas Education Agency, 2011. All rights reserved
Managerial Structure
Organizational Chart:
Shows how the business is structured and who is in charge of whom
Line Authority:
Managers at the top of the organization are in charge of those beneath them
Centralized Organization:
Gives authority to a number of different managers to run their own departments
3
o Managerial
Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
4
Organizational Chart Shows how the business is structured and who is in
charge of whom
Line AuthorityManagers at the top of the organization are in charge
of those beneath them
Centralized Organization
Gives authority to a number of different
managers to run their own departments
Managerial Structure
5
o Managerial
Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Managerial Structure
Centralized Organizations (Examples)
• Humans• Dictatorship• Military• Government• Typical Corporation
6
o Managerial
Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Managerial Structure
Line Authority: PROS
1. Simple
2. Unity of Command
3. Disciplined
4. Fixed Responsibility
5. Flexibility
6. Prompt Decisions
7
o Managerial
Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Managerial Structure
Line Authority: CONS
1. Over Reliance
2. Lack of Specialization
3. On-Way Communication
4. Misused Authority
8
o Managerial
Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Managerial Structure
Decentralized Organization (Examples)• Starfish• The Internet• Our Brain• Terrorist Cells• Open Source Software• Peer to Peer Software
9
o Managerial
Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Managerial Structure
Fusion Organization (Examples)• Reality TV• Wikipedia• Craigslist• Facebook• Ebay
10
o Managerial
Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Formal Structure Informal
Structure
11
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Operational Design
divides responsibility among specific units or
departmentsdoes not need a lot
of managers
Mission Statement:
A short specific reason why the business exists and what it wants to achieve
Goal:
Precise statement of results the business expects to achieve
Policies:
Guidelines used in making consistent decisions
Procedures:
Descriptions of the way work is to be done12
o Managerial Structure
o Operational Design
o Business
Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Business Guidelines
13
Business Guidelines
A School Mission Statement
our mission is to provide a safe
environment
which promotes respect and motivates
students to learn and to act responsibly.
We believe education is the shared
responsibility of
the student, home, school and
community.
Require Responsibility:
The obligation to complete specific work
Appoint Authority:
Right to make decisions about how responsibilities should be accomplished
Accept Accountability:
Taking responsibility for the results achieved
Clarify Command:
Clear reporting relationship for all staff of a business
14
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Effective Organizations
• Number of employees who are assigned to a particular work task and manager
Span of Control
• Functional organization structure – work arranged within main business functions
Types of Organizational Structures
• Work is structured around specific project, products, or customer groups
Matrix Organizational Structures
15
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Effective Organizations
16
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizationso Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Department Organization
Function
Product
Location
Top Level Managers (Superintendent)• Set goals• Plan for the future
Middle Managers (Principal)• Carry out the decisions of top management• Plan and control operations
Operational Managers (Asst. Principal)• Oversee daily operations• Supervise workers to meet deadlines
17
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management
Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Management Levels
Planning Organizing Leading Controlling
18
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management
Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
4 Managerial Functions
Long-Range Planning
Top-level management decides how the company should perform
Essential Questions• What must be done?• Who will do it?• How will the work be grouped?• Who supervises whom?• Who makes decisions about the work to be
done?
19
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Planning
• Assign managers different tasks
• Coordinate activities of managers
• Each manager organizes his/her department and knows what other managers are doing
• Must determine who makes decisions and who answers to whom
20
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Organizing
Set Standardsso managers know their goals
Communicate with Managersto provide guidance and resolve conflicts
Encourage Employeesby offer incentives such as pay raises and promotions
21
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
LeadingWhat are some Leadership
Characteristics?
Track• Budget• Schedule• Product Quality
Monitor• Employees• Performance• Customer Satisfaction
22
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Controlling
Why should customer
service be the #1 priority for a
company.
Most Managers• Begin their careers as company
employees• Are promoted after they have gained
experience and have shown leadership qualities
Managerial Qualities• Ability to perform varied activities• Ability to work under pressure• Effective communication• Interpersonal skills• Ability to gather and use information
23
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Managers
What would be characteristics of an effective
manager?
• Higher earnings
• Prestige
• More influence on the company
• Greater control over personal time
24
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager:
Advantages
o Manager:
Disadvantages
o Teamwork
Manager: Advantages
• Take the blame when things go wrong
• Wrong decisions are costly and can affect numerous employees
• Can have an adverse affect on relationship with lower-level employees
25
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantageso Manager:
Disadvantages
o Teamwork
Manager: Disadvantages
• Collaboration is important
• Flexibility, creativity, good communication, shared goals
• Work as a team-to accomplish company goals
• Brainstorm for solutions
• Listen to team members
26
o Managerial Structure
o Operational Design
o Business Guidelines
o Effective
Organizations
o Department
Organization
o Management Levels
o Planning
o Organizing
o Leading
o Controlling
o Managers
o Manager: Advantages
o Manager:
Disadvantages
o Teamwork
Teamwork
