MANAGEMENT

Session 4
ORGANIZATION CEO

Technical definition: VP VP VP
Stable, formal structure
 Takes resources from environment and processes

them to produce outputs

 Technical Microeconomic Definition Of
Organization

ORGANIZATION

INPUTS FROM PRODUCTION OUTPUTS TO

ENVIRONMENT PROCESS ENVIRONMENT
Structural Characteristics Of All Organizations

 Clear division of labor

 Hierarchy
 Explicit rules & procedures
 Impartial judgments
 Technical qualifications
 Maximum organizational efficiency
 Formal Organization
STRUCTURE: Hierarchy
Division of labor
Rules, Procedures
ENVIRONMENTAL RESOURCES

ENVIRONMENTAL OUTPUTS
PROCESS: Rights/Obligations
Privileges/Responsibilities
Values Norms
People
Common Features Of Organizations

 Formal structure
 Standard operating procedures
 Politics
 Culture
Who Are Managers?

 Manager
 Someone who coordinates and oversees the work of
other people so that organizational goals can be
accomplished
Classifying Managers
 First-line Managers
 Individuals who manage the work of non-managerial
employees.
 Middle Managers
 Individuals who manage the work of first-line
managers.
 Top Managers
 Individuals who are responsible for making
organization-wide decisions and establishing plans and
goals that affect the entire organization.
Managerial Levels