7. Principles of Organising Flashcards
What does organising refer to?
It refers to the activities that leads to order. Certain activities helps you to organise.
What does organisation refer to?
Organisation refers to the company as a whole.
What does organisational structure refer to?
Organisational structure refers to the different departments within an organisation.
Why is organising important in achieving company goals?
If organising leads to a person knowing what is going on and where what is, then it would help that person achieve the company vision, mission, goals and strategies.
What is the first step to design an organisational structure?
Review the company’s vision, mission, goals & strategies.
Unity of command
Each employee should report to only one supervisor.
Unity of direction
All tasks and activities should be directed towards the same mission and goals
Chain of command
A clear unbroken chain of command should link every employee with someone at a higher level, all the way to the top of the organisation
Span of control
The number of subordinates reporting to a manager.
Division of work
Divide workload among business units, departments, sections and individual employees.
Standardisation
Develop uniform practices that employees need to follow in doing their jobs.
Coordination
All business units, departments, sections and individuals should work together to accomplish organisational goals and objectives
Responsibility
The obligation to achieve goals by performing required activities.
Authority
The right to make decisions, issue orders and use resources.
Accountability
The evaluation of how well individuals meet their responsibilities.
Power
The ability of an individual to influence the behaviour of others in the organisation.
Delegation
The process by which managers assign a portion of their workload to one or more subordinates.
Downsizing
Managerial activity aimed at reducing the size of the work force.
Delayering
Reducing the number of layers in the vertical management hierarchy.
Flexibility
The ability to adapt to changing circumstances.
Name 6 types of authority?
- Formal authority
- Informal authority
- Line authority
- Staff authority
- Centralized authority
- Decentralized authority
What is formal authority?
Authority defined by the specified relationships among employees.
What is informal authority?
Authority that evolved out of how employees interact and communicate.
What is line authority?
This authority type entails the responsibility to make decisions and issue orders down the chain of command.
What is staff authority?
This authority type entails the responsibility to advise and assist other personnel.
What is centralized authority?
Top managers make important decisions.
What is decentralized authority?
Middle and lower management also make important decisions.
Name 5 types of departmentalization?
- Functional
- Product
- Location
- Customer
- Multiple
What is functional departmentalization?
Where all activities regarding the most basic structure are grouped together.
What is product departmentalization?
Where all activities regarding the product are grouped together.
What is locations departmentalization?
Logical structure where a business manufactures and sells its goods in different locations.
What is customer departmentalization?
Where all activities and functions are directed to a particular segment in the market.
What is multiple departmentalization?
A combination of the functional, product, location or customer structures.
What are the 3 ways in which a job can be expanded?
- Job rotation
- Job enlargement
- Job enrichment
What are the 6 steps to follow in a delegation process?
- Decide which tasks should be delegated.
- Decide who should perform the tasks.
- Provide sufficient resources for carrying out the delegated task.
- Delegate the assignment.
- Be prepared to step in, if necessary.
- Establish a feedback system.
