Lesson Plan Organizational Structure Course Title Session Title Performance Objective: Approximate Time: Specific Objectives

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1 Lesson Plan Organizational Structure Course Title: Business Management Session Title: Organizational Structure Performance Objective: Upon completion of this lesson, the student will understand that different types of organizational structure exist within businesses and how to increase competitiveness depending upon the type utilized. Approximate Time: When taught as written, this lesson should take 5-6 days to complete. Specific Objectives: Students will define the four types of organizational structure. Students will apply the differences in organizational structure to different types of businesses. Students will analyze the advantages and disadvantages of the different types of organizational structure. Preparation TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed (c)(2)(H) identify the need for change (c)(3)(A) explain how to design an adaptive organization (c)(3)(B) define the concepts, methods, and types of departmentalization (c)(3)(C) define the chain of command (c)(3)(D) explain line authority (c)(3)(E) define staff authority (c)(3)(F) explain the advantages and disadvantages of different types of organizations, including (i) line; (ii) line and staff; and (iii) matrix (c)(3)(G) define delegation in a management context (c)(3)(H) compare and contrast centralized and decentralized organizations (c)(3)(I) identify the concept of teams and teamwork (c)(3)(J) define span of control or span of management Interdisciplinary Correlations: English: (b)(23)(c) uses graphics and illustrations to help explain concepts where appropriate 1

2 (b)(23)(d) uses a variety of evaluative tools (e.g., self-made rubrics, peer reviews, teacher and expert evaluations) to examine the quality of the research (b)(1)(A) Reading/Vocabulary Development determine the meaning of grade-level technical academic English words in multiple content areas (e.g., science, mathematics, social studies, the arts) derived from Latin, Greek or other linguistic roots and affixes (b)(1)(C) Reading/Vocabulary Development infer word meanings through the identification and analysis of analogies and other word relationships (b)(12)(B) Reading/Media Literacy evaluate the interactions of different techniques (e.g., layout, pictures, typeface in print media, images, text, sound in electronic journalism) used in multi-layered media (b)(12)(C) Reading/Media Literacy evaluate the objectivity of coverage of the same event in various types of media (b)(12)(D) Reading/Media Literacy evaluate changes in formality and tone across various media for different audiences and purposes. Occupational Correlation (O*Net Human Resources Managers Similar Job Titles: Employee Benefits Manager, Director of Human Resources, Employee Relations Manager Tasks: Plan, direct, supervise, and coordinate work activities of subordinates and staff relating to employment, compensation, labor relations, and employee relations. Plan, organize, direct, control or coordinate the personnel, training, or labor relations activities of an organization. Serve as a link between management and employees by handling questions, interpreting and administering contracts and helping resolve work-related problems. (Soft) Skills: Active listening, management of personnel resources, problem sensitivity, complex problem solving Accommodations for Learning Differences: It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website. Teacher Preparation: References: 1. Business Principles and Management, Everard Burrow, South-Western Thompson Learning Instructional Aids: 1. Organizational Structure presentation 2

3 2. Corporate Organizational Chart Assignment #1 3. Corporate Organizational Chart Assignment #1 Rubric 4. Org Structure Rap Assignment #2 5. Org Structure Rap Assignment #2 Rubric 6. Case Study Report Assignment #3 7. Case Study Report Assignment #3 Rubric 8. Teamwork Project Assignment #4 9. Teamwork Project Assignment #4 Rubric Materials Needed: 1. Poster board 2. Flip chart paper 3. Markers Equipment Needed: 1. Computers for students to complete projects 2. Projector for PowerPoint Learner Preparation: 1. Ask students what one thing that they think is the one thing that any business cannot do without, regardless of the size of the company or the industry it is in. Ideally they should provide a response that has something to do with people or employees. Even in virtual businesses, Internet businesses with no brick-and-mortar locations, people are needed to perform business functions. This is why Human Resource Management is so essential for any business to succeed. 2. Ask students to brainstorm functions of Human Resource Management. List on the board or document camera their responses. You will later compare their list to the information contained in the PowerPoint for this lesson. Lesson Plan Introduction (LSI Quadrant I) 1. Discuss with students the importance of organizing the human resources of any organization. Ask students for their ideas on how their school is run. Begin drawing an organization chart on the board with the Principal at the top, then the Assistant Principals, departments, etc. 2. Next discuss with them the functions of some of the people in the chart, for example, their job descriptions. They may not realize that many of them have duties that are behind-thescenes, as opposed to merely handling student discipline issues. Important Terms for this Lesson: Organizing effectively accomplishing plans and using resources effectively Line organization a form of organization where the line of authority begins with the top executive down through the lowest level in the organization Line and staff organization similar to line organization but utilizes specialized staff to assist employees at different levels Matrix organization temporary work teams are created and utilized to accomplish a specific task or project Organizational chart a visual representation of an organization s structure Team organization permanent work teams utilizing a team leader as opposed to supervisors Supervisor directs the work of the employees reporting to him/her Mid-manager a middle-level manager who focuses mainly on one management function, although spends some time on other functions as well Executive a top-level manager who primarily spends time on management functions Manager - concentrates on all management functions and has others reporting to him/her 3

4 Outline Outline (LSI Quadrant II) Instructors can use the presentation slides, handouts, and the Internet in conjunction with the following outline. MI Outline Notes to Instructor I. What is organizational structure? A. The hierarchy of an organization that sets forth the chain of command B. Depends upon the goals of the organization C. Illustrated by an organization chart D. Centralized or de-centralized 1. Centralized decision-making rests with upper management 2. Decentralized decision-making is the responsibility of departments or divisions Use presentation as aid. Ask if any of the students have jobs. See if they are familiar with the structure or the titles of the individuals in the company. Ask students if they would rather have a list of tasks to complete during their shift or if they would like to be able to have input into their jobs. Then lead into a discussion about decentralized and centralized decision-making. II. What is an Adaptive Organization? A. An organization that adjusts to changes B. Decision-making is mainly decentralized C. Team-oriented D. Focuses on customer needs Can companies do things the way they did decades ago and achieve the same results? No, they usually cannot. They must adapt to changes because if they do not, the competition probably will. III. When is Change Needed? If... A. A merger is anticipated B. There are new competitors C. There is new technology D. There is rapid growth or decline in your business E. There is a change in legal issues F. There is a new product or service pending G. There is customer dissatisfaction H. Costs are increasing I. Employee morale is decreasing Companies must recognize when change is needed. Ask students what could have happened to companies that don t learn to compete. What are the benefits to the consumer when companies adjust to change? What are 4

5 the costs to companies, aside from the actual cost of manufacturing the product? IV. What is Human Resource Management? All of the activities associated with personnel, such as: A. Hiring, recruiting B. Compensation C. Performance evaluation D. Employee relations E. Health and safety V. What is Span of Control? A. The number of subordinates over which a member of management has direct control B. Displayed in an organizational chart Give students sticky notes and ask them to write down one thing that they think a Human Resource department does in a business. Have them place all their sticky notes on the board and as you go through the different activities, write the headings on the left on the board. Ask a student to call out what is on the sticky notes one at a time, and ask another student to place them in the appropriate columns. A span of control that is large is typically for routine tasks that do not necessarily require as much managerial input. However, a span of control that is too small can result in micromanaging or too much managerial input. Show students the organizational chart for BPA listed in the references and calculate the span of control. Ask students to research on the Internet another business s organizational chart and have them volunteer the span of 5

6 control. VI. Types of Organizational Structure A. Line 1. Oldest form of organization 2. Simplest form of organization 3. Quicker decisions due to top-to-bottom chain of command 4. Lack of specialization B. Line-and-Staff 1. More complex than line organization 2. Allows for experts at different levels 3. Specialization 4. More costly than line organization C. Matrix 1. Project teams 2. No consistent organization structure 3. Matches skills with projects D. Team 1. Permanent work teams 2. Self-directed teams-autonomy over planning and reviewing work 3. Team leader as facilitator 4. Feedback from customers important Discuss with students how their school is organized. Does the principal make department decisions or do the departments? If the departments make decisions, what type of structure is this? Copy and Paste Multiple Intelligences Graphic in appropriate place in left column. Application Guided Practice (LSI Quadrant III): Go to the Business Professionals of America web site listed above and go through the specifics of the organizational chart with the students on a projector. Discuss which type of organizational structure BPA could be: line, line and staff, matrix, or team. Also point out the span of control of the organization. Independent Practice (LSI Quadrant III): Corporate Organizational Chart Assignment #1 - Students are to go to a finance website, and create organizational charts for 2 different corporations in different industries, or students can use a local community business. You may create these charts in a word processing software or using online graphics. Identify each as to the type of organizational structure it is and comment on whether or not the structure varied for different industries. Org Structure Rap Assignment #2 In pairs students will create a rap outlining the four types of organization structure of a business. They should include enough detail in the rap to demonstrate their knowledge of the topic. They should also include reference to at least one major corporation or local business that the other students can recognize as well as its organizational structure. Students will then perform their rap to the class. Case Study Report Assignment #3 You are the owner of a business that sells uniforms 6

7 and provides embroidery services for high school, college, and recreational sports teams in your area. You have managers in the following departments: High School Sales, Collegiate Sales, Recreational Sales, and Accounting. The High School and Collegiate Sales have one full-time sales associate and two part-time associates as well as a delivery person. The Recreational Sales department has one full-time and one part-time associate. The Accounting department has two full-time employees that report to the manager. Students will prepare a 2-page report that addresses the following questions: 1) What does the organizational chart look like for your business? (Hint: create an organizational chart), 2) What organizational structure is your business?, 3) Assuming sales are declining in one of the sales departments, what would your recommendation be to possibly restructure to improve sales? 4) If sales are increasing, make a recommendation on how to restructure to handle the increased business, 5) Is the current structure considered tall (more centralized) or flat (more decentralized)? Teamwork Project Assignment #4 - Divide the class into teams of 5 if possible. They are to think of a team name and logo. Provide them with objects they can use to create a product. Bring either fruit or other food items they can arrange or put together in any way possible. Or you can give them wooden or plastic building logs or blocks with which to create a toy. They must create an organization chart of all of their team members, identifying the type of structure, as well as job titles. They are to create a Marketing Plan for their finished food dish or toy including the four P s for their product (product, price, place, promotion). All items can be affixed to a poster or flip chart. Finally, they will each prepare an exit ticket that will include their own critique of their team s organizational structure, team member duties, teamwork, their success (or lack of) with their product, and their overall assessment of their marketing plan. Summary Review (LSI Quadrants I and IV): Q: Which form of organizational structure is the oldest and simplest? A: Line organization is the most traditional form of organization. Q: Which organizational structure works best for temporary projects? A: The matrix form of organization. Q: Line-and-staff organization is the preferred structure in what types of situations? A: This structure is best suited where specialization is needed at different levels of an organization. Q: What is a characteristic of a decentralized organization? A: Decision-making is generally left to departments or divisions within an organization. Q: What are three of the most common signs that change may be needed in a company? A: New competitors, a merger, or decreasing profits are a few of the many reasons a change may be in order. Evaluation Informal Assessment (LSI Quadrant III): 1. Instructor will observe students during Independent Practice. 2. Instructor will assist students as needed. Formal Assessment (LSI Quadrants III and IV): Use the assigned rubrics to evaluate the four Independent Practice Assignments (LSI Quadrant III). Extension Extension/Enrichment (LSI Quadrant IV): 1. Have students think of several goals that management may have that could potentially conflict with personal goals of employees. Create a table listing the management goals in the left column, and, in the right column, how positive employee relations can create solutions to achieve both the company goals and the employees personal goals. 7

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9 Organizational Structure Independent Practice Assignment Sheet Corporate Organizational Chart Assignment #1 - Students are to go to a finance website, and create organizational charts for 2 different corporations in different industries, or students can use a local community business. They may create these charts in a word processing program using online graphics. Identify each as to the type of organizational structure it is and comment on whether or not the structure varied for different industries. Org Structure Rap Assignment #2 In pairs students will create a rap outlining the four types of organization structure of a business. They should include enough detail in the rap to demonstrate their knowledge of the topic. They should also include reference to at least one major corporation or local business that the other students can recognize as well as its organizational structure. Students will then perform their rap to the class. Case Study Report Assignment #3 You are the owner of a business that sells uniforms and provides embroidery services for high school, college, and recreational sports teams in your area. You have managers in the following departments: High School Sales, Collegiate Sales, Recreational Sales, and Accounting. The High School and Collegiate Sales have one full-time sales associate and two part-time associates as well as a delivery person. The Recreational Sales department has one full-time and one part-time associate. The Accounting department has two full-time employees that report to the manager. Students will prepare a 2-page report that answers the following questions: 1) What does the organizational chart look like for your business? (Hint: create an organizational chart), 2) What organizational structure is your business?, 3) Assuming sales are declining in one of the sales departments, what would your recommendation be to possibly restructure to improve sales? 4) If sales are increasing, make a recommendation on how to restructure to handle the increased business, 5) is the current structure considered tall (more centralized) or flat (more decentralized)? Teamwork Project Assignment #4 - Divide the class into teams of 5 if possible. They are to think of a team name and logo. Provide them with objects they can use to create a product. Bring either fruit or other food items they can arrange or put together in any way possible. Or you can give them wooden or plastic building blocks or logs with which to create a toy. They must create an organization chart of all of their team members, identifying the type of structure, as well as job titles. They are to create a Marketing Plan for their finished food dish or toy including the four P s for their product (product, price, place, promotion). All items can be affixed to a poster or flip chart. Finally, they will each prepare an exit ticket that will include their own critique of their team s organizational structure, team member duties, teamwork, their success (or lack of) with their product, and their overall assessment of their marketing plan. 9

10 Organizational Structure Corporate Organizational Chart Assignment #1 Student Name: CATEGORY Required Elements The charts include all required elements as well as additional information. All required elements are included on the charts. All but 1 of the required elements is included on the charts. Several required elements were missing. Use of Class Time Used time well during each class period. Focused on getting the project done. Used time well during each class period. Usually focused on getting the project done. Used some of the time well during each class period. There was some focus on getting the project done. Did not use class time to focus on the project. Organization All parts of both organization charts are clearly organized. Both charts are adequately organized but order could be slightly better. One chart is not clearly or logically organized. Organization charts are weak and poorly organized. Mechanics Capitalization and punctuation are correct throughout the charts. There is 1 error in capitalization or punctuation. There are 2 errors in capitalization or punctuation. There are more than 2 errors in capitalization or punctuation. Additional Information Charts are clearly labeled as to type as well as comment regarding industry. Both charts correctly identified but comment regarding industry is unclear. Only one chart correctly identified and comment is missing. Neither chart is identified as to type, weak comment provided regarding industry. Total Score Maximum 100 Points 10

11 Organizational Structure Org Structure Rap Assignment #2 Student Name: CATEGORY Flow and Rhythm Required Elements Content All sentences sound natural and are easyon-the-ear when read aloud. Each sentence is clear and has an obvious emphasis. Rap contains all possible elements of organizational structure and relates information to a known business. After participating in the rap, student has substantial knowledge of the topic. Almost all sentences sound natural and are easy-on-the-ear when read aloud, but 1 or 2 are stiff and awkward or difficult to understand. Rap contains many elements of organizational structure and relates information to a known business. After participating in the rap, student has adequate knowledge of the topic. Most sentences sound natural and are easy-on-the-ear when read aloud, but several are stiff and awkward or are difficult to understand. Rap contains a few elements of organizational structure but does mention a known business. After participating in the rap, student has minor knowledge of the topic. The sentences are difficult to read aloud because they sound awkward, are distractingly repetitive, or difficult to understand. Rap contains very little pertinent information and does not relate to a known business. After participating in the rap, student has very little, if any, knowledge of the topic. Collaboration Pair worked extremely well together and created an outstanding rap presentation. Pair worked well together and performance was successful. Pair tolerated each other and was not enthusiastic about their rap but did complete the presentation. Pair did not work well together and did not deliver a successful presentation. Total Score Maximum 100 Points 11

12 Organizational Structure Case Study Report Assignment #3 Student Name: CATEGORY Amount of Information All topics are addressed and all questions answered with at least 2 sentences about each. All topics are addressed and most questions answered with at least 2 sentences about each. All topics are addressed, and most questions answered with 1 sentence about each. One or more topics were not addressed. Organization Information is very organized with wellconstructed paragraphs. Information is organized with wellconstructed paragraphs. Information is organized, but paragraphs are not well-constructed. The information appears to be disorganized. Diagrams & Illustrations Organizational chart is neat, accurate and adds to the reader's understanding of the topic. Organizational chart is accurate and adds to the reader's understanding of the topic. Organizational chart is somewhat accurate and slightly adds to the reader's understanding of the topic. Organizational chart is not accurate OR does not add to the reader's understanding of the topic. Mechanics No grammatical, spelling or punctuation errors. Almost no grammatical, spelling or punctuation errors. A few grammatical spelling or punctuation errors. Many grammatical, spelling, or punctuation errors. Quality of Information Information clearly relates to the main topic. It includes several supporting details. Information clearly relates to the main topic. It provides 1-2 supporting details. Information clearly relates to the main topic. No details given. Information has little or nothing to do with the main topic. Total Score Maximum 100 Points 12

13 Organizational Structure Teamwork Project Assignment #4 Student Name: CATEGORY Quality of Work Provides work of the highest quality. Provides high quality work. Provides work that occasionally needs to be checked/ redone by other group members to ensure quality. Provides work that usually needs to be checked/ redone by others to ensure quality. Timemanagement Working with Others Focus on the Task Pride Routinely uses time well throughout the project to ensure things get done on time. Group does not have to adjust deadlines or work responsibilities because of this person's procrastination. Almost always listens to, shares with, and supports the efforts of others. Tries to keep people working well together. Consistently stays focused on the task and what needs to be done. Very selfdirected. Usually uses time well throughout the project, but may have procrastinated on one thing. Group does not have to adjust deadlines or work responsibilities because of this person's procrastination. Usually listens to, shares, with, and supports the efforts of others. Does not cause "waves" in the group. Focuses on the task and what needs to be done most of the time. Other group members can count on this person. Work reflects this Work reflects a student's best efforts. strong effort from this student. Tends to procrastinate, but always gets things done by the deadlines. Group does not have to adjust deadlines or work responsibilities because of this person's procrastination. Often listens to, shares with, and supports the efforts of others, but sometimes is not a good team member. Focuses on the task and what needs to be done some of the time. Other group members must sometimes nag, prod, and remind to keep this person ontask. Work reflects some effort from this student. Rarely gets things done by the deadlines AND group has to adjust deadlines or work responsibilities because of this person's inadequate time management. Rarely listens to, shares with, and supports the efforts of others. Often is not a good team player. Rarely focuses on the task and what needs to be done. Let s others do the work. Work reflects very little effort on the part of this student. Required Elements All assigned tasks completed exceptionally well. All assigned tasks completed adequately. 1 assigned task not completed. More than 1 assigned task not completed. Total Score Maximum 120 Points 13