Business Management and Organization: Structure and Control
Management functions
Planning, organizing, leading, and controlling form the management cycle. Know the levels (top, middle, first-line) and the skills mix: conceptual skills dominate at the top, technical skills at the first line, and human skills throughout. Motivation theories appear often: Maslow's hierarchy, Herzberg's hygiene versus motivators, McGregor's Theory X and Y, and expectancy theory.
Organizational structure
Understand functional, divisional, matrix, and network structures, plus span of control, centralization versus decentralization, and chain of command. A narrow span yields a tall hierarchy; a wide span yields a flat one. Matrix structures create dual reporting and can produce role conflict.
Leadership and control
Distinguish leadership styles (autocratic, democratic, laissez-faire) and sources of power (legitimate, reward, coercive, expert, referent). Control involves setting standards, measuring performance, and correcting deviations. Budgets, variance analysis, and balanced scorecards are control tools. Corporate governance allocates authority among shareholders, the board, and management.
Worked rule of thumb
If a company reorganizes from functional to product divisions, each division gains profit responsibility and accountability, but duplicate functions may raise costs. A trap: confusing delegation of authority with abdication of responsibility, or labeling Herzberg's salary a motivator when it is a hygiene factor. Another trap: assuming a matrix always improves speed when it often slows decisions through dual approval.