introduction to business
Download
Skip this Video
Download Presentation
Introduction to business

Loading in 2 Seconds...

play fullscreen
1 / 12

Introduction to business - PowerPoint PPT Presentation


  • 93 Views
  • Uploaded on

Lecture 8. Introduction to business. Organizing the Business. Why organize?. When business grows from a single handed operation to a multi employed and multi handed operation, organizing becomes necessary. Increase in operation size requires more employees to produce and sell more.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Introduction to business' - connie


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
introduction to business

Lecture 8

Introduction to business

Organizing the Business

www.AssignmentPoint.com

why organize
Why organize?
  • When business grows from a single handed operation to a multi employed and multi handed operation, organizing becomes necessary.
  • Increase in operation size requires more employees to produce and sell more.
  • When there are multiple tasks and activities in the business, it requires a structured way of doing things.

www.AssignmentPoint.com

formal informal organizations
Formal & Informal organizations
  • The formal organization is the one put together by management and created by those who have authority, responsibility and accountability.
  • The informal organization is the one that had been started by a single owner with the help of a network of personal and social relationships.

www.AssignmentPoint.com

formal authority
Formal authority
  • Formal authority is the right to give orders, responsibility and authority to a subordinate employee. Formal authority can be of two types:
    • Line authority is an unquestioned & direct authority given to a manager
    • Staff authority is an advisory authority to oversee a situation and to make recommendations but doesn’t have any authority to take actions.

www.AssignmentPoint.com

centralized decentralized authority
Centralized & Decentralized authority
  • Centralized authority
    • An organization in which all authority to make decisions is done by a small group of managers.
  • Decentralized authority
    • An organization in which a significant authority is delegated to subordinate managers or supervisors.

www.AssignmentPoint.com

sample organization chart
Sample organization chart

CEO

Director

Director

Manager

Manager

Manager

Supervisors

Supervisors

Supervisors

Supervisors

Supervisors

Production workers, operators, and all other lower level workforce

www.AssignmentPoint.com

principle of organizing
Principle of organizing
  • Principle
    • A guideline that managers can use in making decisions.
  • Division of labor
    • A principle of organization that a job can be performed more efficiently if the job holder is allowed to specialize.
  • Unity of command
    • The principle of organization that no employee should report to more than one superior.

www.AssignmentPoint.com

principle of organizing contd
Principle of organizing (contd.)
  • Scalar principle
    • It is a principle that authority and responsibility should flow from highest to the lowest manager.
  • Span of control
    • The principle of organization that limits the number of subordinates reporting to a senior.
  • Downsizing
    • Downsizing is the reduction of layers of management or staffs from the organizational hierarchy.

www.AssignmentPoint.com

organizational structures
Organizational Structures
  • Functional Structure
    • A structure in which each unit or department has a different set of activities and responsibilities.
    • Accounting, Sales, Marketing, HR, etc
    • Advantages. Helps in becoming more skilled when working with similar activities
    • Disadvantages. Sometimes there are some jobs that needs helps from other departments. Thus it becomes an obstruct getting the job done by other department

www.AssignmentPoint.com

organizational structures contd
Organizational Structures (contd.)
  • Product Structure
    • A structure where a manager and his/her team is in charge of and has a responsibility for a product or product line.
    • Product (beauty soap) Line (all beauty soaps)
    • Advantages. Whole team effort is given on a particular product or product line.
    • Disadvantages. Budget constraints, Authority constraints, & Time constraints.

www.AssignmentPoint.com

organizational structures contd1
Organizational Structures (contd.)
  • Territorial Structure
    • An organization structure where units are divided on the basis of territory or geographical region.
    • Long range bus service, Retailers, etc.
    • Advantages. It allows a coordination at the point of sale which means speedier service.
    • Disadvantages. Duplication in product and services often occurs thus reduces the quality.

www.AssignmentPoint.com

organizational structures contd2
Organizational Structures (contd.)
  • Matrix Structure
    • A functional structure combined either a product or project structural arrangement
    • Banking, Insurance, Universities, Electronics, etc
    • Advantages. Can handle dual focus on a specific product or service. Communication and work sharing becomes more clear.
    • Disadvantages. Confusion in responsibilities. Excessive costs. Struggle for power and authority between managers.

www.AssignmentPoint.com

ad