Summary Introduction to Business Management Chapter 8 Complete

Chapter 8
 Organising
 process of delegating and coordinating tasks, activities and resources in order to achieve organisational objectives



Importance of organising
 Provides detailed analysis of the work to be done and resources to be used to accomplish the goals
 Divides total workload into activities that can comfortably be performed by an individual or group
 Promotes productive deployment and utilization of resources for efficiency
 Related activities and tasks of individuals are grouped together rationally in specialised departments
 development of an organizational structure results in a mechanism that coordinates the activities of the whole business
into a complete, uniform and harmonious unit



Fundamentals of organising
 Designing jobs
 Grouping jobs
 Establishing reporting relationships
 Establishing authority relationships
 Co-ordinating activities


 Designing jobs
 Determination of an employee’s work-related responsibilities
 Departure point is determining the level of specialisation within the organisation
 Job specification explains what must be done and sets the expected performance standards


 Specialisation
 the way in which a task is broken up into smaller units to take advantage of specialised knowledge or skills to improve
productivity and efficiency
 Specialisation can lead to boredom because of repetition which then leads to demotivation


 Alternatives to counter boredom and dissatisfaction of specialisation:


Job rotation Job enlargement Job enrichment Work teams
Systematically moving Increase total number of Increase number of tasks Allow and entire group to
employees from one job to tasks of employee. Can and associated design a work system it will
another in a routine way perform a variety of tasks responsibility. Help with use to perform the
employee growth interrelated set of tasks

Benefits of specialisation Limitations of specialisation
Specialized workers become experts in their respective Highly specialized workers may experience demotivation,
tasks leading to absence, poor attitude, conflict, and lower quality
work

, Workers who perform multiple tasks may lose time as Specialization benefits may not be seen when time spent on
they switch between tasks, but specialization can reduce moving work between workers exceed time needed for the
this transfer time same worker to switch between jobs

The more specialised a job is, the easier it is to develop Specialised workers can be hard to replace, and the
specialised equipment to assist with that job. replacement costs can also be relatively high

The manager can train a new employee at a low cost Specified equipment is costly and requires significant training
when an employee performing a highly specialized job is to use it properly
absent or resigns

 Grouping jobs
 Various organisational structures may be developed through forming new departments

 Including

 Functional departmentalisation:
 Activities from each management function are grouped together
 Product departmentalisation:
 All manufacturing activities related to a product are grouped in product sections
 Location departmentalisation:
 Ideal for large businesses manufacturing and selling products internationally
 Customer departmentalisation:
 Ideal for businesses focusing on a special business segment or group of customers
 Matrix organisational structure:
 Organizational structures struggle with coordination, leading to matrix structures for complex projects requiring
specialized skills. However, these systems might compromise unity of leadership, which might damage
relationships between projects and managers