Lesson+03


 * 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