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3. Read to Learn • Identify the differences between management structures. • Name six skills necessary for effective management.

4. 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.

5. Key Concepts • Managerial Structures • Is Being a Manager for You?

6. Key Term an organizational structure in which managers on one level are in charge of those beneath them lineauthority an organizational structure with a direct line of authority as well as staff who advise the line personnel line and staffauthority

7. Key Term an organizational structure in which authority is with top management centralizedorganization an organizational structure that gives authority to a number of different managers decentralizedorganization

8. Key Term an organizational structure that divides responsibility among specific units, or departments departmentalization a beginner-level position entry-level job

9. Managerial Structures An advantage of the line authority structure is that authority is clearly defined. line authority an organizational structure with managers on one level are in charge of those beneath them

10. Managerial Structures The line and staff authority structure enables managers to get advice. It can also lead to overstaffing. line and staff authority an organizational structure in which has a direct line of authority as well as staff who advise the line personnel

11. Line and Staff Authority Organization Chart Figure 7.2

12. Managerial Structures Decentralized organizations are often found in international businesses. decentralized organization an organization that gives authority to a number of different managers

13. Formal Structure Formal structures usually employ departmentalization. departmentalization an organizational structure that divides responsibility among specific units, or departments

14. 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.

15. 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.

16. Is a Manager’s Job for You? Most managers begin their career in an entry-level job. entry-level job a beginner-level position

17. Graphic Organizer Promotion GainExperience EntryLevel

18. Graphic Organizer Skills Needed by Managers KeepAccurateRecords Task-Oriented Work Under Pressure Manage Time Effectively Communicate Well HumanRelations Understanding the Business

19. Graphic Organizer More controlover time Greaterinfluence Advantages ofBeing a Manager More money Respect Prestige

20. Graphic Organizer Blamed when things go wrong Disadvantages ofBeing a Manager Mistakes arecostly Pressure

21. Strategic Management Big Picture Overall objective oriented. Long term picture Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management

22. Tactical Management Small Picture Focuses on smaller objectives that feed into the overall goal Tactical Management The administrative process of selecting among appropriate ways and means of achieving a strategic plan or objective.

23. Management and Leadership People Process

24. 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.

25. 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.

26. What are some characteristics of an effective manager? task-oriented, able to work under pressure, effective communicator, works well with others, and technical knowledge

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