BMGT - Organizing Understanding Organizational Structure...

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Organizing Understanding Organizational Structure Plans establish the objectives and goals, of an organization But the key to successful implementation of plans are good Organizational Structure it is organizational structure that transforms objectives into realities What is Organizing? It is the process of arranging an organization’s structure and coordinating its managerial practices and the proper use of its resources to achieve its goals - James Stoner It is a management function that establishes relationship between activity and authority - Warren Plunkett Organizing in business industries, is the process of combining and coordinating productive resources in order to accomplish efficiently and effectively the established objectives of an organization Human factor is the key to successful organizing process. He (entrepreneur) organizes and coordinates the resources and activities of the organization for the purpose of achieving its objectives with optimum use. Relationship between planning and organizing. . . Goals and objectives of any organization are set up in the planning stage The organizing process is also based on plans Organizing as a basic function of management needs planning to place it in the right direction Resources and activities of the organization have to be organized. Both planning and organizing are dynamic processes. When organizational objectives change, planning and organizing have to be changed When business environment change, planning and organizing have to be changed The Importance of Organizing There is an established clear and specific job description : every employee knows what to do; will avoid redundancy at work Existence of coordination : reduces or eliminates confusion and conflicts Presence of formal structure : by means of organizational chart (diagrams), the various departments, functions and positions and their relationships are illustrated Presence of Formal Structure: the formal superior-subordinate relationship are indicated ( command responsibility) Steps in Organizing. . . Identify what is the plan and the objective Identify the various activities to be used to achieve the goals Group similar or related activities Assign activities with appropriate authority Design a hierarchy of relationships 4 Aspects of Organizing Work or “building blocks” Division of work- divide the total workload into tasks that can logically and comfortably be performed by individuals or groups - Ex: in fast food-work is divided between those who cook burgers and fries Departmentalization- combine task in efficient manner; generally the grouping of employees and tasks - Ex: Crew who serve customers are in one department while those who cook may be in 1 department. Hierarchy- specifies who reports to whom in the organization.
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This note was uploaded on 02/20/2012 for the course ACCOUNTING 102 taught by Professor Calamba during the Summer '11 term at Universität St. Gallen (HSG).

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BMGT - Organizing Understanding Organizational Structure...

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