Small Business Organization Quiz
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Questions and Answers

Organizing is the means by which management blends human and nonhuman resources through the design of a formal structure of tasks and ______.

authority

An appropriate organizational structure must be adapted by each ______.

enterprise

Activities necessary to reach the ______ must be identified.

goals

Specialization involves dividing the total work into small, specialized tasks, and assigns employees to specific ______.

<p>tasks</p> Signup and view all the answers

Delegation of Authority involves assigning some tasks to ______ who will be delegated with commensurate authorities.

<p>subordinates</p> Signup and view all the answers

The span of management refers to the number of subordinates reporting to a ______ or the business owner.

<p>supervisor</p> Signup and view all the answers

The achievement of individual objectives should contribute to the accomplishment of overall organizational ______.

<p>objectives</p> Signup and view all the answers

Effective directing requires skills such as communicating with subordinates to inform, motivate, control, and express ______.

<p>emotion</p> Signup and view all the answers

What is the primary objective of organizing within a small business?

<p>To blend resources through a formal structure of tasks and authority.</p> Signup and view all the answers

Which type of organizational structure involves grouping jobs based on functions, products, or territory?

<p>Departmentalization</p> Signup and view all the answers

What does the degree of centralization refer to in an organizational structure?

<p>The extent to which decision-making authority is concentrated or dispersed.</p> Signup and view all the answers

In delegating authority, what is primarily considered when determining tasks to assign?

<p>The interests and qualifications of subordinates.</p> Signup and view all the answers

What is the importance of establishing an appropriate organizational structure?

<p>To guarantee that the structure provides more benefits than alternatives.</p> Signup and view all the answers

Which skill is crucial for effective directing in small businesses?

<p>Communicating with subordinates.</p> Signup and view all the answers

What is 'span of management' primarily concerned with?

<p>The number of subordinates reporting to a supervisor.</p> Signup and view all the answers

Which of the following is NOT a type of organizational structure mentioned?

<p>Vertical Integration</p> Signup and view all the answers

Study Notes

Organizing the Small Business

  • Organizing is the process of combining human and non-human resources into a structured system of tasks and authority.
  • The objective of organizing is to create a structure that defines who performs what tasks and who reports to whom.

The Appropriate Organizational Structure

  • Each business needs to adapt a structure that suits its needs.
  • The type of structure depends on the number of people required to achieve the business objectives.
  • Entrepreneurs can choose any structure that fits their needs.

The Owner’s Concern in the Organizational Structure

  • Identify activities necessary to achieve business goals.
  • Analyze the jobs that need to be performed.
  • Place individuals with the relevant skills and interest in the appropriate roles.

Different Types of Organizational Structures

  • Specialization: Dividing work into smaller, specialized tasks and assigning employees to specific tasks.
  • Departmentalization: Grouping jobs into working units based on function, products, or territory.
  • Delegation of Authority: Assigning tasks to subordinates and granting them the necessary authority.
  • Span of Management: The number of subordinates reporting to a supervisor or the owner.
  • Hierarchy of Objectives: The achievement of individual objectives should contribute to the overall organizational objectives.
  • Degree of Centralization:
    • Centralized: Authority for decision-making is concentrated in the hands of one or a few individuals.
    • Decentralized: Authority is widely delegated to subordinates.

Importance of Organizational Structure in Small Business

  • Economics: The structure should provide more benefits than other options.

Directing the Small Business

  • Directing focuses on the actual implementation of plans.
  • Skills Required for Effective Directing:
    • Communication: Inform, motivate, control, and express emotions to subordinates.

Organizing a Small Business

  • Organizing involves blending human and non-human resources through a formal structure that defines tasks and authority.
  • Objective of organizing: Designing an organizational structure that assigns tasks and identifies who supervises whom.
  • Appropriate Organizational Structure: Each business needs to adapt a structure that fits its needs.
  • Factors influencing structure: Number of employees required to achieve organizational objectives.
  • Flexibility: Small businesses can adapt to different organizational structures as they grow and evolve.
  • Owner's Concerns in Organizational Structure:
    • Identifying activities needed to reach goals.
    • Analyzing the jobs to be performed.
    • Placing qualified individuals in suitable roles.

Types of Organizational Structures

  • Specialization: Work is divided into smaller, specialized tasks, with employees assigned to specific responsibilities.
  • Departmentalization: Grouping jobs into working units based on functions, products, or territories.
  • Delegation of Authority: Assigning tasks to subordinates with commensurate authority.
  • Span of Management: The number of subordinates reporting to a supervisor.
  • Hierarchy of Objectives: Individual objectives should contribute to broader organizational goals.
  • Degree of Centralization:
    • Centralized: Concentration of decision-making authority in the hands of one or a few individuals.
    • Decentralized: Authority is widely delegated to subordinates.

Importance of Organizational Structure in Small Business

  • Economics: The chosen structure should provide more benefits than other options.

Directing the Small Business

  • Directing: Focuses on actual implementation.
  • Essential Skills for Effective Directing:
    • Communication with subordinates: Functions of communication are to inform, motivate, control, and express emotions.

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Description

Test your knowledge on organizing a small business effectively. This quiz covers various aspects of organizational structures, including specialization and departmentalization, and examines the roles and tasks necessary for business success.

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