Organizing for management

Date: 2015-10-07; view: 429.

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A successful business knows what it wants to accomplish and has a plan for meeting its goals. Such a business has some form of organization that identifies who is responsible for which tasks. Usually a manager or managers direct and coordinate the activities of the workers and deal with any problems that arise.

Any business that employs more than one person needs some type of organization that lets employees know what their jobs are and how they fit in with company goals. Businesses usually have an organization that establishes which person or group has authority over persons or groups. These businesses often show their structure on an organizational chart. The following scheme illustrates how one company is organized.

The organization shown on this chart is centralized. Centralization focuses authority in one place. In this company that place is the president. The president has authority over the national sales manager. From there authority fans out to the other parts of the organization.

Formal organizations are usually departmentalized. Departmentalization is a way of organizing a company that involves assigning resources and responsibilities to a specific unit, or department in an organization. The manager has the responsibility for coordinating the department's assigned resources. The departments are organized in three ways: by function, by product or by geographic location.

The research and development department finds out what kinds of products need to be made. The production department makes the products. The sales department finds customers for the products. The shipping department gets the products to the customers. Finally, departments may be organized by their location or the areas they serve.

Smaller businesses may be organized in a less formal way. Companies organized informally usually have a flexible structure. People in this kind of business do not always do the same kind of work. They may replace each other and even hire outside people to help.

Regardless of the structure, however, all forms of business organization depend on good managers within the business.