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Chapter9: Organizing, Directing, and Controlling The Small B
Transcript of Chapter9: Organizing, Directing, and Controlling The Small B
ORGANIZING the SMALL BUSINESS
Chapter9: Organizing, Directing, and Controlling The Small Business
# The first task of the owner is to determine the total function of the organization.
# When jobs are grouped into working units, the process is called "departmentalization".
# The small business operator must consider the number of subordinates reporting to a supervisor or to himself.
# An entrepreneurial venture is expected to achieve a certain objective which most often is related to the realization of profits.
# Depending on the size and the nature of business, an organizational structures will be adapted by the SBO or the entrepreneur.
The Formal Organizational
# The functional organizational structure is one in which there are a number of functional specialist supervising the activities of a single subordinate.
# Every enterprise has its own objective, so an appropriate organizational structure must be adapted by each.
Activities necessary to reach the goal must be identified;
An analysis of the jobs to be performed must be made; and
The placement of people with the interest and qualification is performing the jobs.
# When an organization grows beyond phase one (i.e,the one-man organizational), some of the task will have to be assigned to subordinates who will be delegated with commensurate authorities.
# Authority is often required to be delegated to lower level units if work is expected to be accomplished.
Delegation of Authority :)
Span of management.
Hierarchy of Objectives
# A committee is a formal organizational group created to carry out a specific organizational task.
# The performance of individual employees depends on how successful managements is in motivating work groups that are formally vested with authority.