Chapter -8_-_organizing_the_business1.0
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Transcript of Chapter -8_-_organizing_the_business1.0
Introduction to Business
ORGANIZING THE BUSINESSORGANIZING THE BUSINESS
Chapter # 8
Shafayet Ullah
SECTION: A3 and A4
ORGANIZEORGANIZE
Organizing is the management
function of assigning activities and
grouping people (Designing and
Developing a Blueprint or structure) so
that the firm’s objectives can be
accomplished.
Organization Organization StructureStructure
The arrangement of work to be done in a business.
Managers need to keep the following issues in mind when
organizing the business :
Clear Objectives
Clearly stated, meaningful, specific, and challenging.
The objectives must give meaning to the business and what it is attempting to accomplish. The objectives could be multiple (Like, profit, market share, human resource development) of a business that provides the direction for those organizing the firm.
Coordination
Coordination must be in Organizational, Departmental, Subunit and Individual Objectives. They all must fit together.
Team Work must be there. Should not underestimate the group members.
Formal OrganizationThe management designed official structure of the business. The formal organization is displayed in the organization chart, the graphical representation of the formal structure of the business.
Informal OrganizationThe network of personal and social relationships that emerges when people work together.
Formal and Informal Formal and Informal OrganizationsOrganizations
Formal AuthorityFormal Authority
Formal Authority: The right to give orders
Delegation
Is the process by which authority is distributed or pushed downward in an organization.
That is, giving an employee at a lower level in the organization, the responsibility for a given task as well as the authority to carry it out.
Formal AuthorityFormal Authority
Line AuthorityEach position in the managerial hierarchy has the line authority or unquestioned direct authority to make decisions and take actions.Example: At Pizza Hut, the manager has authority over the sales people and the cooks.
Staff AuthorityAn advisory authority in which a person studies a situation and makes recommendations but has no authority to take action.
Centralization and Centralization and Decentralization Decentralization
Centralized BusinessAn organization in which all or nearly all authority to make decisions is retained by a small group of managers and hold most of the power and authority.
Decentralized BusinessAn organization in which a significant amount of the authority to make decisions is delegated to lower- level managers.
Organization Chart Organization Chart
A graphic blueprint, or map of positions, people and formal authority relationships in the organization.
Top Manager
President
Middle ManagerDirector of Engineering
Legal Counsellor
Line Manager with direct
Line Authority
Staff Position – expert in law
Staff AuthorityProject AEngineer
Supervisor
Project BEngineer
Supervisor
Team of Three
Engineers
Team of Three
Engineers
ORGANIZATION CHART : LINE AND STAFF AUTHORITY
Principles of Organizing Principles of Organizing
PrinciplesThe guidelines that managers can use in making decisions. Some principles are used exactly as they are stated: other times they are modified or completely ignored.
Division of LaborA principle of organization that a job can be performed more efficiently if the jobholder is allowed to specialize.
Unity of commandThe principle of organization that no employee should report to more than one superior. Subordinates should know from whom they receive the authority to make decisions and do the job.
Principles of Organizing Principles of Organizing
Scalar PrincipleThe principle of organization that authority and responsibility should flow in a clear unbroken line from the highest to the lowest manager. Because managerial levels are arranged in a hierarchy, the importance of the scaler chain from Top to Bottom is obvious.
Downsizing Cutting out entire layers of management.
Principles of Organizing Principles of Organizing
Span of ControlThe principle of organization that limits the number of subordinates reporting to a supervisor. There is a limit to the number of subordinates one superior should supervise.However, some supervisors can handle more subordinates than others. The minimum span of control depends on many factors, such as type of skill and the experience levels of subordinates, the nature of the job, the supervisor’s skill in handling the subordinates, the situation and the time available to do the job.
How to Organize a How to Organize a BusinessBusiness
Functional StructureA structure in which each unit or departmenthas a different set of activities and
responsibilities.
How to Organize a How to Organize a BusinessBusiness
Functional StructureAdvantages:
Specific set of activities
Day by day become skilled
Stable improvement
How to Organize a How to Organize a BusinessBusiness
Functional Structure
Disadvantages: De-emphasizes the exchange of ideas and cooperation with other departments Each department only concentrated on their own department activities If necessary the coordination, the situation becomes obstruction Lack of flexibility Slow in reacting
END OF CHAPTER # 8