Business Management: Structure, Leadership, and Communication
Chapter 10: Organizational Structure
Organizational structure refers to the levels of management and division of responsibilities within an organization.
A job description outlines the responsibilities and duties to be carried out by someone employed to do a specific job.
Delegation means giving a subordinate the authority to perform particular tasks. It is very important to remember that it is the authority to be able to perform a task — it is not the final responsibility.
Chain of command is the structure in an organization that allows instructions to be passed down from senior levels of management to lower levels of management.
The span of control is the number of subordinates working directly under a manager.
Line managers have direct authority over subordinates in their department. They are able to take decisions in their departmental area.
Staff managers are specialist advisers who provide support to line managers and to the board of directors.
A decentralized management structure means that many decisions are not taken at the center of the business but are delegated to a lower level of management.
A centralized management structure means that most decisions are taken at the center, or higher levels of management.
Different forms of decentralization:
- Functional decentralization — Specialist departments making delegated decisions.
- Regional decentralization — Decentralization over regions and nations.
- Federal decentralization — Authority divided between the different production lines of the business.
- Decentralization by project teams — Decentralization using projects.
Chapter 11: Managing a Business
Effective Managers
Tasks:
- Plan for the future
- Organize and delegate
- Coordinate departments
- Command and guide others
- Control and assess the work of departments
Qualities:
- Intelligence
- Self-confidence
- Determination
- Initiative
- Good communication skills
- Enthusiasm
Strategic decisions are very important decisions that can affect the overall success of the business. Tactical decisions are decisions that are taken more frequently and are less important in comparison to strategic decisions. Operational decisions are day-to-day decisions that will be taken by a lower level of manager.
Chapter 12: Communication in Business
- Communication is the transferring of a message from the sender to the receiver, who understands the message.
- The message is the information or instructions being passed by the sender to the receiver.
- The transmitter or sender of the message is the person starting off the process by sending the message.
- Medium of communication is the method used to send a message, for example, a letter is a method of written communication and a meeting is a method of verbal communication.
- The receiver is the person who receives the message.
- Feedback is the reply from the receiver which shows whether the message has arrived, been understood and, if necessary, acted upon.
- One-way communication involves a message that does not call for or require a response.
- Two-way communication is when the receiver gives a response to the message and there is a discussion about it.
- Internal communication is when messages are sent between people working in the same organization.
- External communication is when messages are sent between one organization and another organization or outside individual.
Communication nets are the ways in which members of a group communicate with each other. The three types are:
- Chain network
- Wheel network
- Connected network
The four barriers to communication are:
- Problems with the sender
- Problems with the message
- Problems with the receiver
- Problems with the feedback