| A | B |
|---|
| Entrepreneurship | the process of starting, organizing, managing, and assuming the responsibility for a business. The foundation of the free market economy. Create diverse product market. |
| Basic Organization Structure | function, product, market, customer, location. Division of labor, structure for making decisions. Goal: Maintain efficiency in business. |
| Management Problems | Span of Management - too many immediate subordinates to be effective. Job assignments unclear. |
| Management Structure | Functional, territorial, product and matrix |
| Functional Management Structure | Divides the parts of the business by what they do. Production, Acctg, marketing, etc. |
| Territorial structure | operations are spread out over a variety of areas each operating independently |
| Product structure | break along product lines(auto manufacturer) |
| Matrix structure | functional and product structures - both financial and production oversee a project |
| Management style-Exploitative/Authorative | managerial decisions are imposed on subordinates and management has greater responsibility; little communication overall on the hierarchy; Employees very dependent on jobs and exploited by management. Ex: bad factories. Ineffective |
| Management style-Exploitative/benevolent | managerial assumption that management acts in the best interest of the workers; little communication overall on the hierarchy; Management patronizing and fail to take into account employees feelings. Ineffective |
| Consultative style | small degree of trust in employees by management; all employees feel some responsibility for the overall success of the company, there is some degree of teamwork and freedom to act on minor issues among employees. But management handles larger issues and does not trust lower level employees with important manners. |
