Effective Business Organization
should be a reminder of what the company aims to accomplish
Mission statement
of a business identifies the hierarchy of the employees within the business
Organizational structure
Authority rests with top management
Centralized organization
is the process of controlling and making decisions about a business
Management
is the process of setting goals and deciding how to accomplish them.
Planning
is something to be achieved in a specified period of time
Goal
is the authority structure in a company from the highest to the lowest levels
Chain of command
Authority is given to various managers that run their own departments
Decentralized organization
consists of a company’s board of directors, president, and other high-ranking managers
Top management
is an outline of the actions needed to accomplish a goal.
plan
Accomplished in short periods of time
Short-term goals
is a diagram that shows the structure of an organization
Organization chart
Responsibilities and authority are divided among areas or departments
Departmentalization
consists of a company’s division managers and department heads
Middle management
Created for long-term goals
Strategic plans
More than a year to reach
Long-term goals
workers with various skills and experience are brought together to sove a specific problem or task
Matrix
coordinates and supervises the activities and duties of employees
First-line management
Developed for short-term goals
Tactical plans
outlines how company decisions are made
Policy
Workers share the same skill set and expertise
Functional
Backup plans
Contingency plans