Friday, October 3, 2014

MANAGEMENT PROCESS | Hierarchical structure of typical business organizations.

Discuss the hierarchical structure of typical business organizations.

Source: Management, 12th Edition- John R. Schermerhorn

1 comment:

  1. Answer:

    At the highest levels of business organizations, we find the board of directors whose members are elected by stockholders to represent their ownership interests. In nonprofit organizations such as a hospital or university, this level is often called a board of trustees, and it may be elected by local citizens, appointed by government bodies, or invited by existing members.

    The top managers including the chief executive officer (CEO), chief operating officer (COO), chief financial officer (CFO), chief information officer (CIO), chief diversity officer (CDO), president, and vice president constitute an executive team that reports to the board and is responsible for the performance of an organization as a whole or for one of its larger parts.

    Middle managers report to top managers and are in charge of relatively large departments or divisions consisting of several smaller work units. Examples are clinic directors in hospitals; deans in universities; and division managers, plant managers, and regional sales managers in businesses. Middle managers work with top managers, coordinate with peers, and support lower levels to develop and pursue action plans that implement organizational strategies to accomplish key objectives.

    Team leaders report to middle managers and supervise nonmanagerial workers.

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