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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 ______.
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Delegation of Authority involves assigning some tasks to ______ who will be delegated with commensurate authorities.
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The span of management refers to the number of subordinates reporting to a ______ or the business owner.
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The achievement of individual objectives should contribute to the accomplishment of overall organizational ______.
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Effective directing requires skills such as communicating with subordinates to inform, motivate, control, and express ______.
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What is the primary objective of organizing within a small business?
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Which type of organizational structure involves grouping jobs based on functions, products, or territory?
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What does the degree of centralization refer to in an organizational structure?
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In delegating authority, what is primarily considered when determining tasks to assign?
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What is the importance of establishing an appropriate organizational structure?
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Which skill is crucial for effective directing in small businesses?
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What is 'span of management' primarily concerned with?
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Which of the following is NOT a type of organizational structure mentioned?
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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.
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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.
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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.
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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.
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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.
