Presentation Transcript

1. Organizational Structure

   Sectors
2. Commercial Sector 3 basic forms: Sole proprietor Partnerships Corporations
3. Sole Proprietor One owner Unlimited liability Sue business & owner Advantages & disadvantages….
4. Sole Proprietorship
5. Partnership Two or more entities Least popular form of ownership Have written agreement of each owners responsibilities 4 types of partners….
6. 4 forms of Partnerships 1. General Partnership Common form of partnership Each partner is fully responsible for liabilities Share the costs & benefits of the business
7. 4 forms of Partnerships 2. Limited Partnership Also, very common One or more partners can be limited Limited partner has limited authority Liability based on amount of capital invested Names of limited partners not in name
8. 4 forms of Partnerships 3. Secret partner Identity of an owner is unknown to the public Secret partner can participate in management but has limited financial responsibility
9. 4 forms of Partnerships 4. Dormant partner (silent partner) Invests only money Not involved in management of the organization Liable only for the amount of his/her investment
10. LLC & LLP Mix of partnerships & company Taxed as a partnership Has limited liability of a company Easier to form than C or S Corp Dissolves when a member dies or wants out
11. LLC/LLP
12. C Corporations Seen as a fictional, legal person & can…. Own, manage, & sell property Sign binding contracts Sue & be sued Pay corporation taxes 20% of all businesses & 80% of ave. annual sales Owners are shareholders Limited liability up to amt of investment Run by a board of directors representing the shareholders
13. S Corporations S Corporations Like C Corporation in formation Distributes all profits so that the corporation isn’t taxed Shareholders are taxed since they get the profits Only form if ALL profits are distributed
14. Corporations
15. Franchises Method of doing business, not ownership 1 co. grants another business right & license 3 Forms Trade name Product distribution Pure Franchise
16. Franchise
17. Public Sector Tax supported 3 types Federal Agencies State Agencies Local Agencies
18. Local Parks & Recreation Municipalities Cities, townships, counties, boroughs Budget from the city
19. Local Parks & Recreation Special District laws Independent governing bodies Direct taxing & bonding ability 20% of the 31,555 special districts in US relate to natural resources 9 states over 1000 special districts
20. State Agencies Est. thru state legislation State budget allocations Focus: Outdoor rec, arts, tourism, human services, education, health
21. Federal Agencies Authority & budget from Congress U.S. Department of Health & Human Services Morale, Welfare & Recreation
22. Nonprofit Agencies Formally constituted for public benefit Funded through fees, charges, donations & grants Private as opposed to governmental (NGO’s) Not profit distributing, but can make a profit Self-governing - boards
23. Nonprofit Agencies Federal, sales & property tax exempt Special postage rates Not all donations to npo are tax exempt Exempt from labor unions Nonprofit Corporation Types of nonprofits….
24. Nonprofit Agencies * 20+ nonprofit categories in the IRS code
25. Where do the profits go? Commercial Owners, shareholders NPO Back into agency Public Into agency or city
26. Organizational Structure 6 elements to address for a proper organizational structure Work specialization Departmentalization Chain of command Span of Control Centralization or decentralization Formalization
27. Organizational Structure 1. Work specialization Division of labor Jobs broken into steps with multiple people doing their individual part to make the entire product Assembly lines, McDonald’s
28. Organizational Structure 1. Work specialization Advantages Used to increase productivity Allows skill building on the job Disadvantages Good to a point & then diminishing returns Boredom, absenteeism, stress, high turnover
29. Organizational Structure 2. Departmentalization Grouping of jobs according to (4): Function/process Trainers Group fitness instructors Fitness assessments Research Education
30. Organizational Structure 2. Departmentalization Grouping of jobs according to (4): Product Nike: Golf, shoes, clothing REI: Clothing & footwear, snow gear, water gear, land gear Geography Gametime – 18 independent U.S. Reps
31. Organizational Structure 2. Departmentalization Grouping of jobs according to (4): Customer retail, wholesale, government corporate vs. individual clients physical therapists, athletic trainers
32. 3. Chain of command Unbroken line of authority The right to exercise influence, give directives or make certain decisions within the organization Organizational Structure
33. Organizational Structure 3. Chain of command Key issues Unity of Command Seeing less chain of command with empowerment
34. Organizational Structure 4. Span of Control # of people, units, & operations a mgr can control effectively & efficiently Small span of control – supervise smaller number of people Larger span of control – supervise larger number of people
35. Organizational Structure 4. Span of Control # of people, units, & operations a mgr can control effectively & efficiently Small span of control – supervise smaller number of people Larger span of control – supervise larger number of people
36. Organizational Structure 4. Span of Control See smaller span of control at top & larger at bottom of org. 7 is optimal but depends on work done Which is better? Smaller or larger?
37. Organizational Structure 4. Span of Control Larger – fewer managers, more ee’s reporting to them Reduces cost, speeds decision making Get closer to the customer Empower employees Fewer layers of employees Invest in training staff
38. Organizational Structure 4. Span of Control Smaller – more managers with fewer ee’s Tight managerial control Increase cost of managers Added managers slows communication Encourages micro-managing & discourages ee autonomy
39. Organizational Structure 5. Centralization or decentralization Degree to which decision making is concentrated at a single point in the organization
40. Organizational Structure Centralization Top managers make all the decisions Consistency in decision making Slow process…move up the chain of command
41. Organizational Structure Decentralization Decision making is pushed down to mgrs closest to the action Quicker actions taken More people provide input EE’s less likely to feel alienated from decision makers Mgrs closer to situation
42. Organizational Structure 6. Formalization Degree to which jobs are standardized EE has minimal discretion in how, what & when to do things Policies are strictly followed Explicit job descriptions Less formalization increases freedom