Strongpreneur#Business Growth Strategies
February 21, 2019 490
Strongpreneur#Business Growth Strategies
February 21, 2019 490
An organization is a group of people bound together to provide unity of action for the achievement of a predetermined objective.
For proper and easy organization, the organization chart is always devised to help employees, the board of directors and shareholders to see at a glance, the division of responsibilities and lines of authority.
The organizational structure should be followed by an entrepreneur in an articulated procedure like a job description, departmentalization, span of control and delegation of authority. The span of control depends on the complexity of the task, ability of the supervisor, proximity of the task, variety of the jobs, quality of personnel and the use of personal assistants.
Entrepreneurs should be prepared to apply the organizing principles in their organizations.
Every organization is made of human and physical resources. These resources are brought together to accomplish a predetermined goal. To accomplish these objectives, it is the function of management to determine the best structure that will optimize the utilization of resources. It is the organization that organizes these resources; manages the people and their relationship in an enterprise. The organization is a means of achieving the best result and also determines the type of people required.
It can be seen as a process of coordinating individual efforts to accomplish a common objective. An organization can be seen as an entity. This is true of all business enterprises, hospitals, or clubs.
An organization is a group of people bound together to provide unity of action for the achievement of predetermined objectives. The organization is very fundamental to human nature. The subject of the organization is central to sociology, psychology, and even anthropology.
The organization can be classified into two broad headings:
An organizational chart is a visual device that shows the various departments and how they relate to one another. The organization chart helps the employees, the board of directors and stockholders to see at a glance, the division of responsibility and lines of authority.
One of the major advantages of an organization chart is that it helps in studying how to modify or improve the relationships and areas of responsibilities within the organizational structure.
The organization can operate without a formal, drawn organization chart, but the presence of the chart gives evidence of a thoughtfully planned structure. This shows the existence of certain positions identified by shapes and lines of authority shown by solid straight lines connection.
The best organizational design is one that leads to the attainment of organizational objectives.
The system is subjected to change when the environment in which it operates changes or when the company is expanding its operations or changing its objectives or during the process of re-organization, therefore a good organizational design is the one that accommodates change when required. A good organization is judged by its economic performance, the ability to survive in a dynamic environment and the growth and satisfaction of the members.
Organizing is not possible without planning; it is a follow-up to planning. Remember planning determines the objectives to be achieved, organizing on the other set objectives. Organizing establishes a role environment for performance by individuals operating together in a formally structured enterprise.
In designing the organizational structure the entrepreneur should follow some procedures:
This is a detailed description of employees’ jobs and responsibilities. It normally involves what is to be done and how it is to be done. Conflicts and job overlapping in an organization are always avoided through this process. The job is equally specified and classified. A specification of the qualifications necessary to fill each of the defined jobs is done under job specifications.
The process of combining already defined jobs into groups of related activities is known as departmentalization.
We have three common ways of departmentalization namely functional, product and departmentalization.
The span of control involves the determination of the number of employees that should report to a superior manager in the performance of their duties. The span of control can be wide or narrow depending on the organizational policy and quality of the employees. It is wide when more people report to one source and narrow when few people report to one source.
No organization can function effectively without delegation. Delegation is the organization’s transfer of authority from superior to subordinate. A delegation of authority empowers a subordinate to make commitments, use resources and take action about duties assigned to him. The division of an organization into units or departmentalization involves delegation.
Delegation originates from the fact that the person alone cannot successfully discharge all the responsibilities in an organization. In essence, a delegation of authority means that a subordinate has the power to make decisions and to act within explicit limits without checking with superiors. Delegated authority enables the superior to share responsibility with his subordinates.
When one delegate, three major factors are implicit:
The delegation involves accessibility. Accountability means answering for the use of your formal authority by someone else. A delegation of formal authority to another person does not relieve one of the necessities of accounting. The subordinate must account for the use of delegated authority because an obligation is created. A subordinate is held responsible for assigned tasks and he is accountable for the satisfactory completion of the duty. Accountability to one’s superior is, therefore, absolute; that is, it can neither be transferred nor delegated.
This principle states that a subordinate should be accountable to one and only one superior at a time. The subordinate needs to report to only one superior to maintain the chain of command. The essence of the unity of command is to avoid conflicting instructions. It is essential in all organizations for an employee to require delegated authority from one boss and is accountable to the same boss for the assigned task.
Other principles of organizing which the entrepreneur should know are:
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