This document discusses business organization and management. It covers topics like organizational structures, guidelines for businesses, principles of effective organization, how departments are organized, levels of management, and the functions of planning, organizing, leading, and controlling. It also addresses managerial qualities and advantages/disadvantages of being a manager, as well as the importance of teamwork.

1. Principles of Business, Marketing, andPrinciples of Business, Marketing, and
FinanceFinance
Lesson ThreeLesson Three
Business Operations and Organizational StructuresBusiness Operations and Organizational Structures
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2. Business Organization and ManagementBusiness Organization and Management
• How a Company is Run
• Managerial Structures
– 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
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3. Types of Organizational
Structure
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4. Guidelines for BusinessesGuidelines for Businesses
• Mission Statement-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 done
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5. Principles of EffectivePrinciples of Effective
OrganizationOrganization
• Responsibility-the obligation to complete specific
work
• Authority-right to make decisions about how
responsibilities should be accomplished
• Accountability-taking responsibility for the results
achieved
• Unity of Command-clear reporting relationship for
all staff of a business
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6. Principles of Effective
Organization
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7. How Departments areHow Departments are
OrganizedOrganized
• By function
• By product
• By location
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8. Levels of ManagementLevels of Management
• Top Level Managers
– Set goals
– Plan for the future
• Middle Managers
– Carry out the decisions of top
management
– Plan and control operations
• Operational Managers
– Oversee daily operations
– Supervise workers to meet
deadlines
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9. PlanningPlanning
• Long-range planning-top-level management
decides how the company should perform
• Planning Questions Management Must Address
– 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?
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10. Questions of the PlanningQuestions of the Planning
ProcessProcess
• Applied and answered
when leaders meet with
the management team
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11. OrganizingOrganizing
• 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
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12. LeadingLeading
• Set Standards
-so managers know their goals
• Communicate with Managers
-to provide guidance and resolve conflicts
• Encourage Employees
-offer incentives such as pay raises and promotions
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13. ControllingControlling
• Keeping the Company on
Track-to meet all goals
– Keep track of the budget, the
schedule, and the quality of the
product
– Monitor employees and review their
performance
– Monitor customer satisfaction
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14. ManagersManagers
• 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
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15. Advantages Associated withAdvantages Associated with
Being a ManagerBeing a Manager
• Higher earnings
• Prestige
• More influence on how the
company is run
• Greater control over
personal time
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16. Disadvantages AssociatedDisadvantages Associated
with Being a Managerwith Being a Manager
• 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
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17. TeamworkTeamwork
• Collaboration is important
• Flexibility, creativity, good
communication, shared
goals
• Work as a team-to
accomplish company
goals
• Brainstorm for solutions
• Listen to team members
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