A038+Organizing+the+Business

A038+Organizing+the+Business - Organizing the Business...

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Organizing the Business
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Organizing the Business How is business organized to produce  goods and services and sell them Organizational structure Specification of the jobs to be done How those jobs relate to one another
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Organizing the Business Organization often represented on  organization charts Each box is a job in the business The boxes are joined to show the chain of  command – who reports to whom These charts are ideal representations of the  way things are SUPPOSED to work
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Organizing the Business Business organization is built on Specialization Determining who will perform specific tasks Each job has ONLY certain tasks Tasks are assigned to those skilled in  performing them Departmentalization Determining how to group specialists
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Organizing the Business Specialization Division of labour Break the various jobs into components Each component performed by a specialist  who is most efficient in that component Hire specialists most efficiently to carry out  the various components
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Organizing the Business Specialization Hiring most efficiently Does not mean one person for each component You need only enough people to carry out those  components that must be done at the same time If one person does step 1, and someone else step 2,  and no more step 1 operations are required until step  3 is complete, the step 1 specialists can also do step  3, then return to the next round of step 1
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Organizing the Business Specialization As the business grows, there is more  specialization One person cannot handle all the steps There is more demand for each step, so one  person specializes in a step and hands over the  other steps to someone else
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Organizing the Business Specialization Growth In small businesses, the manager manages and  does the accounting But eventually, the manager hires an  accountant as the task becomes too time- consuming
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Organizing the Business Specialization Tasks are divided into components according  to skill Hire for the specific skill Cutting the grapes Crushing the grapes Making the wine Selling the wine
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Organizing the Business Specialization Advantages Jobs performed more efficiently Jobs are easier to learn when broken down Easier to replace employees who leave, as they  do not take unique skills with them
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Organizing the Business Specialization Disadvantages
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This note was uploaded on 08/14/2011 for the course MGT a03 taught by Professor Bovaird during the Spring '11 term at University of Toronto- Toronto.

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A038+Organizing+the+Business - Organizing the Business...

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