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ลำดับตอนที่ #17 : [[R.S.]]Business Management::Chapter.12::22.2.12

Review Sheet of Business Management

Chapter 12 Test :: 22.Feb.12

Chapter.12 :: Organizing and Work [[Page.274]]

12-1 Designing Organizations [[Page 276]]

-        Organization is a group of people working together in a coordinated effort to reach certain goals. All organization need managers, people who direct the activity of others.

-        Organizations are formed for three basic reasons: to create clear lines of authority, to improve productivity, and to make it easier for people within a company to communicate with each other.

-        Authority is power based on the rights that come with a position.

·       Without lines of authority, decisions could be made by people not qualified to make them.

·       The line of authority within an organization is known as the chain of command.

ð  Well defined chain of command

Advantages:

~ Makes it easy for all members of organization to understand who is in charge.

~ Problems are addressed at the lowest possible level.

Disadvantages:

~ Can create problems if the structure is too rigid or too complicated.

 ~ Decisions are made slowly, often by people with only a limited understanding of the issues involved.

-        Organization involves the division of labor, or the assignment of specific tasks to individuals or groups.

·       In many companies, groups of workers perform very specific tasks or sets of tasks. This can increase productivity of a business.

·       Job rotation involves periodically moving workers from one job to another.

·       Job scope refers to the number of operations involved in a job. In a job with narrow scope, a worker performs a small number of operations and repeats them frequently.

·       Job depth is the freedom employees have to plan and organize their work, interact with co-workers, and work at their own pace.

-        Members of an organization need to communicate with each other to help their organization achieve goals.

·       Communication ensures that all employees understands company expectations.

-        The success of a business ultimately depends on identifying what customers want and providing it.

-        Today, most U.S. companies find that a decentralized organization is more effective.

·       Advantages of decentralization:

1.     It increases an organization's ability to respond to market changes by allowing decisions to be made by managers who are close to their customers.

2.     It frees senior manager from many day-to-day tasks.

3.     Giving decision-making authority to lower-level managers increases their job scope.

·       Disadvantages of decentralization:

1.     It can result in a loss of managerial control.

2.     It involves duplication of effort.

12-2 Delegating Responsibility and Authority [[Page 286]]

-        To delegate is to assign responsibility and authority to another person.

·       Responsibility is the obligation to perform assigned duties.

·       Delegating responsibility to a subordinate, or a person holding a lower position within an organization, means that the manager obligates the subordinate to carry out certain duties.

-        The Unity of command principle states that an employee should have only one immediate supervisor.

-        Another way that organizations maintain authority is by controlling the number of people who report to each manager.

·       The Span of Management, or span of control, defines the number of subordinates a manager can effectively control.

·       Factors that determine how many subordinates a manager can handle are:

ð  The complexity of the jobs subordinates perform

ð   The quality of the people who fill the positions.

ð  The ability of the manager.

·       Managers with too many subordinates may feel overwhelmed while those with too few subordinates may have too little to do.

-        Managers can’t delegate responsibility without delegating authority to perform the task.

-        Managers must ensure that their subordinates will actually perform the tasks that have been delegates to them.

-        Accountability is the obligation to accept responsibility for one's actions. It allows managers to monitor the work of subordinates.

-        Managers delegate for several reasons:

1.     Sometimes a task is simply too time-consuming for a manager to handle alone.

2.     Some tasks are too routine to warrant a manager's attention.

3.     Sometimes a task requires special skills that a manager may not possess.

-        Companies benefit enormously when managers delegate effectively because it means that decisions are made by people with the most direct knowledge of issues.

-         To delegate successfully, managers must identify which tasks can be delegated.

·       They need to analyze how they spend their time, identify tasks, determine which subordinates could best handle them, and make sure subordinates understands responsibility for the task s/he is given.

-        Failure to delegate can cause catastrophic results for businesses.

·       Managers need to let go of some of their control and have confidence in their subordinates.

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