This document provides an in depth and thorough summary of chapter 8 of Introduction to Business Management 11th edition (Erasmus et. al.). It is ready for exam and tests. Everything is laid out as it is in the textbook. All needed information is provided in short. It is written in an easy to study...
Chapter 8
Organising
process of delegating and coordinating tasks, activities and resources in order to achieve organisational objectives
Importance of organising
Provides detailed analysis of the work to be done and resources to be used to accomplish the goals
Divides total workload into activities that can comfortably be performed by an individual or group
Promotes productive deployment and utilization of resources for efficiency
Related activities and tasks of individuals are grouped together rationally in specialised departments
development of an organizational structure results in a mechanism that coordinates the activities of the whole business
into a complete, uniform and harmonious unit
Fundamentals of organising
Designing jobs
Grouping jobs
Establishing reporting relationships
Establishing authority relationships
Co-ordinating activities
Designing jobs
Determination of an employee’s work-related responsibilities
Departure point is determining the level of specialisation within the organisation
Job specification explains what must be done and sets the expected performance standards
Specialisation
the way in which a task is broken up into smaller units to take advantage of specialised knowledge or skills to improve
productivity and efficiency
Specialisation can lead to boredom because of repetition which then leads to demotivation
Alternatives to counter boredom and dissatisfaction of specialisation:
Job rotation Job enlargement Job enrichment Work teams
Systematically moving Increase total number of Increase number of tasks Allow and entire group to
employees from one job to tasks of employee. Can and associated design a work system it will
another in a routine way perform a variety of tasks responsibility. Help with use to perform the
employee growth interrelated set of tasks
Benefits of specialisation Limitations of specialisation
Specialized workers become experts in their respective Highly specialized workers may experience demotivation,
tasks leading to absence, poor attitude, conflict, and lower quality
work
, Workers who perform multiple tasks may lose time as Specialization benefits may not be seen when time spent on
they switch between tasks, but specialization can reduce moving work between workers exceed time needed for the
this transfer time same worker to switch between jobs
The more specialised a job is, the easier it is to develop Specialised workers can be hard to replace, and the
specialised equipment to assist with that job. replacement costs can also be relatively high
The manager can train a new employee at a low cost Specified equipment is costly and requires significant training
when an employee performing a highly specialized job is to use it properly
absent or resigns
Grouping jobs
Various organisational structures may be developed through forming new departments
Including
Functional departmentalisation:
Activities from each management function are grouped together
Product departmentalisation:
All manufacturing activities related to a product are grouped in product sections
Location departmentalisation:
Ideal for large businesses manufacturing and selling products internationally
Customer departmentalisation:
Ideal for businesses focusing on a special business segment or group of customers
Matrix organisational structure:
Organizational structures struggle with coordination, leading to matrix structures for complex projects requiring
specialized skills. However, these systems might compromise unity of leadership, which might damage
relationships between projects and managers
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