Chapter 9: Organizing, Directing, and Controlling the Small Business PDF

CHAPTER 9: ORGANIZING, DIRECTING, AND CONTROLLING THE SMALL BUSINESS Determine how small business management practice organizing, directing and controlling functions. Organizing the Small Business Organizing is the means by which management blends human and nonhuman resources through the...

CHAPTER 9: ORGANIZING, DIRECTING, AND CONTROLLING THE SMALL BUSINESS Determine how small business management practice organizing, directing and controlling functions. Organizing the Small Business Organizing is the means by which management blends human and nonhuman resources through the design of a formal structure tasks and authority. Its objective is to produce an organizational structure for the firm which indicates who performs which task and who supervises whom. The Appropriate Organizational Structure An appropriate organizational structure must be adapted by each enterprise. The type of organization which has to be considered will depend on how many persons are needed to assist in accomplishing the objectives of the firm. It is not necessary for the entrepreneur to start with phase one. He may adapt any start up as he finds it applicable The Owner’s Concern in the Organizational Structure 1. Activities necessary to reach the goals must be identified 2. An analysis of the jobs to be performed must be made 3. The placement of people with the interest and qualifications in performing the jobs. Different Types of Organizational Structures A. Specialization – dividing the total work into small, specialized tasks, and assigns employees to specific tasks. B. Departmentalization – jobs are grouped into working units; could be according to functions, products or territory. C. Delegation of Authority – some tasks are assigned to subordinates who will be delegated with commensurate authorities. Different Types of Organizational Structures F. Span of Management – the number of subordinated reporting to a supervisor or the business owner himself/herself. G. Hierarchy of Objectives – the achievement of individual objectives should contribute to the accomplishment of overall organizational objectives. H. Degree of Centralization –degree of authority Centralized – concentration of authority for decision-making in the hands of one or few Decentralized - authority is widely delegated to subordinates. Importance of Organizational Structure in Small Business Economics plays an important part – will the structure provide more benefits than other structure type? Directing the Small Business Directing takes care of the actual implementation Skills required for effective directing: 1. Communicating with subordinates Functions of Communication: inform, motivate, control and express emotion 2. Counseling 3. Motivating 4. Disciplining Controlling the Organization The process of efficient performance to attain the objectives of the firm. Establishing goals and standards Measuring performance against the established goals and standards Reinforcing success and correcting shortcomings End of Topic