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Summary Varsity College BCOM Year 1 Business Management 1A LU 8
Varsity College BCOM Year 1 Business Management 1A LU 8
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BMNG – Business LU 8LU 8 – Organizing
8.1 Introduction
Once the plan to achieve certain goals is selected, management must combine human
and other resources in the best possible way to achieve the organisations goals.
Organising is the second fundamental element of management.
8.2 The importance of organising
Without organising, successful implementation of plans and strategies will not be
possible.
Reasons for importance of organising in an organisation include the following points:
- Organising entails a detailed analysis of work to be done and resources to be used
to accomplish the aims of the business.
- Organising divides the total workload into activities that can comfortably be
performed by an individual or a group.
- Promotes productive deployment and utilisation of resources
- Related activates and tasks are grouped together
- Development of an organisational structure results in a mechanism that co-
ordinates the activities of the business into complete units.
8.3 Fundamentals of organising
There are 5 building blocks of organising that managers use in constructing an org:
1. Designing jobs
2. Grouping jobs
3. Establishing reporting relationships
4. Est authority relationships
5. Co-ordinating activities
8.3.1 Designing jobs
= determination of an employee’s work related responsibilities
The point of departure when designing jobs for employees is to determine the level of
specialisation. Job specialisation is normally an extension of organisational growth.
alt approaches to job specialisation:
- Job rotation = systematically moving employees from one job to another.
- Job enlargement = developed to increase the total number of tasks that a
worker performs.
o Training costs may be higher
o Unions may argue that pay should be increased
o Work is boring and routine
- Job enrichment = involves increasing the number of tasks the worker has to do
and the control the worker has over the job.
o To implement, managers remove some controls from the job, delegate
more authority to employees and structure the work in complete units.
1
, BMNG – Business LU 8
- Work teams = allow an entire group to design the work system it will use to
perform an interrelated set of tasks.
Benefits of specialisation Limitations of specialisation
Workers that perform specialised tasks Workers who perform highly specialised
become experts in performing each tasks may become demotivated and feel
task that they have responsibility for. they need more challenging tasks to
perform. This may lead to absenteeism,
low morale, conflict, and a lower
quality of work.
May lead to a decrease in the transfer In some cases, it may happen that the
time between tasks time spent on moving work-in-progress
form worker to worker is greater than the
time needed for the same worker to
change from one job to the next.
More specialised a task is = easier it is to Specialisation equipment is expensive,
develop specialised equipment with that training costs to be proficient with it is
job also high
When an employee who performs a highly Specialisation workers are hard to replace
specialised job is absent, the manager is
able to train someone new at a low cost
8.3.2 Grouping jobs: departmentalisation
Result of specialisation, also promotes specialisation since it is necessitated by the
logical grouping of activities that belong together.
Depending on the size and nature of the business, there are various organisational
structures that can be developed through departmentalisation.
- Functional departmentalisation
- Product departmentalisation
- Location departmentalisation
- Customer departmentalisation
- Matrix organisational structure
FUNCTIONAL DEPARTMENTALISATION
Managing Most basic type of departmentalisation.
Director
Activities belonging to each management
Human
Production
Manager
Resource
Marketing
Manager
Financial
Manager
function are grouped together.
Manager
PRODUCT DEPARTMENTALISATION
Managing
Departments are designed so that all activities concerned with the Director
manufacturing of a product or group of products are grouped
Manager - Manager -
together in product sections, where all the specialists associated Industrial Consumer
Products Products
with the particular products are grouped.
Marketing Marketing
Manager Manager
Advantages
Production Production
- specialised knowledge of employees is used to maximum Manager Manager
effect
Human Human
- decisions can be made quickly within a section Resource Resouces
Manager Manager
- the performance of each group can be measured easily
Financial Financial
Manager Manager
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