Lesson+03

Business Operations and Organizational Structures

Important Terms for this Lesson:

• Goal – a 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 • Organization chart-a diagram that shows the structure of an organization • Management plan-a business plan that divides a company into different departments run by different managers • Organizational chart-a chart that shows how a business is structured and who is in charge of whom • Line authority-an organizational structure in which managers at the top of the line are in charge of those beneath them • Centralized organization-an organization that puts authority in one place, with top management • Decentralized organization-an organization that gives authority to a number of different managers to run their own departments • Departmentalization-dividing responsibilities in an organization among specific units or departments • Top-level managers-managers responsible for setting goals and planning the future for a company • Middle managers-managers who carry out the decisions of top management and oversee specific departments *Operational managers-managers who are responsible for the daily operations of a business, such as supervision and office managers ||  ||   ||
 * Mission statement – a short, specific written statement of the reason a business exists and what it wants to achieve


 * Guided Practice for this Lesson**: A recent Junior Achievement survey indicated that 41% of teens believe starting and operating thier own business will offer greaterjob security than being an employee in another company. Nearly 75% of the teens indicated that they would like to start their own business someday. Working in pairs, student teams will use this information to develop a mission statement and an organizational structure for their future business venture.

Artifact must be electronic. Use either MS Word or PowerPoint to complete the guided practice assignment. Mission statements must follow the guidelines presented and organizational structure must show at least 4 distinct levels or sections of division.