Business Organizing Process : Small Business Info : Lean Business Club, Inc.

GENERAL MANAGEMENT
CHECK POINT 13: THE ORGANIZING PROCESS

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1.	what is the organizing process?
2.	advantages of the organizing process
3.	six basic steps in the organizing process
4.	five areas of activities where organizing is required
5.	general management activities
6.	human resources management activities
7.	financial management activities
8.	operations management activities
9.	marketing and sales management activities
10.	grouping of activities within the company
11.	five elements of the organizational structure
12.	specialization of activities
13.	standardization of activities
14.	coordination of activities
15.	centralization of the decision-making process
16.	size of a work unit
17.	organizational structure with a narrow span
18.	organizational structure with a wide span
19.	importance of an organizational chart
20.	for serious business owners only
21.	the latest information online

DO I NEED TO KNOW THIS CHECK POINT?

Management Level	Yes	Optional
Level 1: I Am An MBA Student.	V
Level 2: I Am A Professional Manager In A Company.		V
Level 3: I Plan To Start A One-Person Business.		V
Level 4: We Plan To Start A Small Business Without Employees.		V
Level 5: I/We Plan To Start A Small Business With Employees.	V
Level 6: I Am A One-Person Business Owner.		V
Level 7: I Am A Small Business Owner With Employees.	V
Level 8: We Are Small Business Owners Without Employees.		V
Level 9: We Are Small Business Owners With Employees.	V
Level 10: I Am A Management Consultant Or A CPA.	V

GENERAL MANAGEMENT
CHECK POINT 13: THE ORGANIZING PROCESS

Please Select Any Topic In Check Point 13 Below And Click.

1.	what is the organizing process?
2.	advantages of the organizing process
3.	six basic steps in the organizing process
4.	five areas of activities where organizing is required
5.	general management activities
6.	human resources management activities
7.	financial management activities
8.	operations management activities
9.	marketing and sales management activities
10.	grouping of activities within the company
11.	five elements of the organizational structure
12.	specialization of activities
13.	standardization of activities
14.	coordination of activities
15.	centralization of the decision-making process
16.	size of a work unit
17.	organizational structure with a narrow span
18.	organizational structure with a wide span
19.	importance of an organizational chart
20.	for serious business owners only
21.	the latest information online

DO I NEED TO KNOW THIS CHECK POINT?

Management Level	Yes	Optional
Level 1: I Am An MBA Student.	V
Level 2: I Am A Professional Manager In A Company.		V
Level 3: I Plan To Start A One-Person Business.		V
Level 4: We Plan To Start A Small Business Without Employees.		V
Level 5: I/We Plan To Start A Small Business With Employees.	V
Level 6: I Am A One-Person Business Owner.		V
Level 7: I Am A Small Business Owner With Employees.	V
Level 8: We Are Small Business Owners Without Employees.		V
Level 9: We Are Small Business Owners With Employees.	V
Level 10: I Am A Management Consultant Or A CPA.	V

WELCOME TO CHECK POINT 13

TUTORIAL 1 General Management				TUTORIAL 2 Human Resources Management				TUTORIAL 3 Financial Management				TUTORIAL 4 Operations Management				TUTORIAL 5 Marketing And Sales Management
1	6	11	16	21	26	31	36	41	46	51	56	61	66	71	76	81	86	91	96
2	7	12	17	22	27	32	37	42	47	52	57	62	67	72	77	82	87	92	97
3	8	13	18	23	28	33	38	43	48	53	58	63	68	73	78	83	88	93	98
4	9	14	19	24	29	34	39	44	49	54	59	64	69	74	79	84	89	94	99
5	10	15	20	25	30	35	40	45	50	55	60	65	70	75	80	85	90	95	100

HOW CAN YOU BENEFIT FROM CHECK POINT 13?

The main purpose of this check point is to provide you and your management team with detailed information about The Organizing Process and how to apply this information to maximize your company's performance.

In this check point you will learn:

• What is the organizing process?
• About the advantages of the organizing process.
• About the six basic steps in the organizing process.
• About five management areas where organizing is required.
• About grouping of activities within your company.
• About five elements of the organizational structure.
• About specialization, standardization, and coordination of activities.
• About centralization of the decision-making process.
• About the suitable size of a work unit.
• About organizational structures with wide and narrow spans... and much more.

LEAN MANAGEMENT GUIDELINES FOR CHECK POINT 13

You and your management team should become familiar with the basic Lean Management principles, guidelines, and tools provided in this program and apply them appropriately to the content of this check point.

You and your team should adhere to basic lean management guidelines on a continuous basis:

•	Treat your customers as the most important part of your business.
•	Provide your customers with the best possible value of products and services.
•	Meet your customers' requirements with a positive energy on a timely basis.
•	Provide your customers with consistent and reliable after-sales service.
•	Treat your customers, employees, suppliers, and business associates with genuine respect.
•	Identify your company's operational weaknesses, non-value-added activities, and waste.
•.	Implement the process of continuous improvements on organization-wide basis.
•	Eliminate or minimize your company's non-value-added activities and waste.
•	Streamline your company's operational processes and maximize overall flow efficiency.
•	Reduce your company's operational costs in all areas of business activities.
•	Maximize the quality at the source of all operational processes and activities.
•	Ensure regular evaluation of your employees' performance and required level of knowledge.
•	Implement fair compensation of your employees based on their overall performance.
•	Motivate your partners and employees to adhere to high ethical standards of behavior.
•	Maximize safety for your customers, employees, suppliers, and business associates.
•	Provide opportunities for a continuous professional growth of partners and employees.
•	Pay attention to "how" positive results are achieved and constantly try to improve them.
•	Cultivate long-term relationships with your customers, suppliers, employees, and business associates.

1. WHAT IS THE ORGANIZING PROCESS?

THE ORGANIZING PROCESS

Business owners and managers must be fully familiar with the basic elements of the organizing process which represents one of the most critical management functions in every business organization.

Once your management team have identified your company's objectives and developed strategic and operational plans, you may begin the Organizing Process. The prime purpose of this process is to develop an effective organizational structure that will enable your company to achieve specific objectives by utilizing its resources in the existing environment.

Organizational Structure, in turn, can be defined as the arrangement and interrelationship of the component parts and positions of a company. (31)

The principles of the organizing process are essentially similar for all types of businesses. The complexity of the organizing process, however, depends upon the size and type of company and the nature of its activities in the marketplace.

Since the prime purpose of any company is to create customers and to satisfy their needs, the organizing process must be geared toward the same goals. Thus, the main questions that need to be answered during the organizing process are outlined below.

QUESTIONS RELATED TO THE ORGANIZING PROCESS

1.	How should we arrange our company in order to supply products or provide services to customers in the most cost-efficient manner?
2.	In what type of activities do we have to engage ourselves to accomplish our company's strategic and operational objectives?
3.	What kind of functions need to be developed within our company to meet our objectives?
4.	How should these functions interrelate with each other within our company?

ARE YOU A ONE-PERSON BUSINESS OWNER?

If you are a one-person business owner, you may adopt a less formal approach, but you are still required to implement all basic elements of the Organizing Process discussed in this check point. You should remember that you are the “conductor of your own one-person-orchestra” and you must be able to wear various “management hats” based on your specific business needs. This will include organizing the following activities:

• General Management Activities.

• Financial Management Activities.

• Operations Management Activities.

• Marketing And Sales Management Activities.

Moreover, it will be very beneficial for you to become familiar with the content of the entire check point, because one day you may decide to take your business to the next level and employ additional employees within your organization.

ADDITIONAL INFORMATION ONLINE

•	How To Align Structure And Processes By Nicolay Worren.
•	Organizing - An Overview By Iken Edu, Mexus Education Pvt.Ltd.
•	Introduction To Organizational Structure And Design By Nick Kitchen.
•	How To Organize Your Company By Dennis Yankowski, Everest Group.
•	Organizing Your Business By Mike Agerbo And AJ Vickery, Get Connected.

2. ADVANTAGES OF THE ORGANIZING PROCESS

IMPORTANCE OF THE ORGANIZING PROCESS

Proper Organizing represents an integral part of the overall management process. Whether it is the company's president, who is concerned with the most efficient performance of the organization, or the quality controller, who is responsible for the quality of components and finished goods, employees can only achieve success in their areas of responsibility if their jobs are organized in advance.

Organizing is important for several reasons outlined below.

ADVANTAGES OF THE ORGANIZING PROCESS

1.	Organizing helps management to utilize the company's physical, financial, and human resources in the most efficient and economical manner.
2.	Organizing helps management to direct all operational activities toward meeting the company's objectives.
3.	Organizing helps to develop a structure of specialized or standardized activities in accordance with the company's planning requirements.
4.	Organizing helps to create a clear framework of relationships among employees within the company.
5.	Organizing helps to streamline operational activities and to minimize running costs, thereby contributing to an increased level of the company's profitability.
6.	Organizing helps to specify the level of responsibility, authority, and accountability among employees within the company.
7.	Organizing helps to create an orderly environment within the organization, thereby reducing overlapping of work and minimizing confusion among employees.

3. SIX BASIC STEPS IN THE ORGANIZING PROCESS

THE ORGANIZING PROCESS

The Organizing Process, outlined below, entails six basic steps and it must be initiated and carried out as an integral part of the overall management responsibility.

STEPS IN THE ORGANIZING PROCESS

Step 1: Identify And Classify Activities Which Must Be Carried Out In Accordance With The Strategic And Operational Plans.

Step 2: Group All Required Activities In Light Of The Available Resources And Current Environment.

Step 3: Create Organizational Structure And Departmentalize All Activities.

Step 4: Develop An Organizational Chart And Create Functional Positions Within The Organization.

Step 5: Assign Authority, Responsibility, And Accountability To Every Functional Position.

Step 6: Establish And Coordinate The Relationships Among All Functional Positions.

4. FIVE AREAS OF ACTIVITY WHERE ORGANIZING IS REQUIRED

WHERE DOES THE ORGANIZING PROCESS BEGIN?

The organizing process starts by identifying and classifying a broad range of activities which must be carried out in order to accomplish the company's strategic and operational objectives. In general terms, all Company Activities may be classified into five main categories illustrated below.

FIVE AREAS OF A COMPANY'S ACTIVITY


General Management Activities	Human Resources Management Activities	Financial Management Activities	Operations Management Activities	Marketing And Sales Management Activities

5. GENERAL MANAGEMENT ACTIVITIES

Typical examples of General Management Activities are outlined below.

EXAMPLES OF GENERAL MANAGEMENT ACTIVITIES

1.	Managing all administrative aspects of running a company.
2.	Managing the implementation of the lean business engineering method within the organization..
3.	Managing the implementation of lean management guidelines within the organization.
4.	Managing the strategic decision-making process within the organization.
5.	Managing the development and implementation of strategic and operational plans..
6.	Managing the development and implementation of the company's business plan.
7.	Organizing human and material resources into an effective functional structure.
8.	Managing the company's organizational design, development, and change.
9.	Establishing lines of communication between employees within the organization.
10.	Leading the company's employees toward achieving organizational objectives.
11.	Controlling the company's performance and monitoring results in all areas of its activities.
12.	Taking corrective action to ensure that the company meets its strategic and operational objectives.

6. HUMAN RESOURCES MANAGEMENT ACTIVITIES

Typical examples of Human Resources Management Activities are outlined below.

EXAMPLES OF HUMAN RESOURCES MANAGEMENT ACTIVITIES

1.	Familiarizing with equal employment opportunity laws.
2.	Conducting job analysis for various jobs.
3.	Preparing job descriptions and job specifications for various positions.
4.	Planning and forecasting employee requirements.
5.	Recruiting and hiring suitable new employees.
6.	Screening and testing applicants.
7.	Interviewing applicants for employment.
8.	Providing orientation to new employees.
9.	Providing training to new and existing employees.
10.	Providing coaching to management personnel.
11.	Motivating all employees, including management personnel.
12.	Providing basic job compensation to employees.
13.	Providing financial incentives to employees.
14.	Providing employee benefits to all personnel.
15.	Conducting employee performance appraisal.
16.	Maintaining employee career management process.
17.	Maintaining sound labor-management relations.
18.	Maintaining acceptable employee safety and health procedures.
19.	Maintaining effective employee conflict management and separation procedures.

7. FINANCIAL MANAGEMENT ACTIVITIES

Typical examples of Financial Management Activities are outlined below.

EXAMPLES OF FINANCIAL MANAGEMENT ACTIVITIES

1.	Gathering various types of accounting information.
2.	Developing and maintaining a computerized accounting system.
3.	Preparing updated financial statements.
4.	Conducting a comprehensive financial performance evaluation.
5.	Preparing operating budgets.
6.	Preparing capital expenditure budgets.
7.	Preparing cash budgets.
8.	Developing and implementing sound tax strategies.
9.	Identifying and securing suitable sources of capital.
10.	Developing and implementing an effective internal financial control system.
11.	Developing and implementing an effective cash management system.
12.	Developing and implementing effective control of purchases and disbursements.
13.	Developing and implementing effective credit control.
14.	Developing and implementing an effective inventory management system.
15.	Developing and implementing an effective capital assets management system.p>
16.	Developing and implementing an effective payroll accounting system.
17.	Developing and implementing an effective cost accounting system.
18.	Developing and implementing effective pricing methods.
19.	Developing and implementing an effective management accounting system.
20.	Developing and implementing an effective computerized financial management system.

8. OPERATIONS MANAGEMENT ACTIVITIES

Typical examples of Operations Management Activities are outlined below.

EXAMPLES OF OPERATIONS MANAGEMENT ACTIVITIES

1.	Familiarizing with various types of operational activities.
2.	Ensuring effective design, location and organization of the operational facility..
3.	Developing and maintaining an effective design office.
4.	Developing and maintaining an effective product or service design and standardization.
5.	Developing and maintaining an effective process design.
6.	Ensuring effective equipment evaluation and selection.
7.	Developing and maintaining effective plant layout.
8.	Ensuring effective equipment maintenance and replacement.
9.	Developing and maintaining effective tool control.
10.	Developing and implementing an effective cost estimating system.
11.	Developing and implementing an effective production or operations planning.
12.	Developing and implementing an effective materials requirements planning.
13.	Developing and implementing an effective production or operations control.
14.	Developing and implementing an effective supply chain and materials management system
15.	Developing and implementing an effective total quality management system.
16.	Developing and implementing effective kaizen procedures.
17.	Developing and implementing effective just-in-time procedures.
18.	Developing and implementing an effective service operations management system.
19.	Developing and implementing an effective project and contract management system.
20.	Developing and implementing an effective merchandising management system.

9. MARKETING AND SALES MANAGEMENT ACTIVITIES

Typical examples of Marketing And Sales Management Activities are outlined below.

EXAMPLES OF MARKETING AND SALES MANAGEMENT ACTIVITIES

1.	Studying the consumers' buying behavior in the marketplace.
2.	Gathering marketing information and conducting a market research.
3.	Developing and implementing an effective target marketing system.
4.	Conducting effective market measurement and forecasting.
5.	Developing and implementing effective marketing strategies.
6.	Developing and implementing effective product strategies.
7.	Developing and implementing effective pricing strategies.
8.	Developing and implementing effective promotional strategies.
9.	Developing and implementing effective direct marketing strategies.
10.	Developing and implementing effective distribution strategies.
11.	Developing and implementing an effective marketing planning and budgeting system.
12.	Developing and implementing an effective sales planning and budgeting system.
13.	Developing, maintaining, and controlling an effective sales organization.
14.	Planning and implementing effective sales force recruitment, selection, and training.
15.	Planning, managing, and controlling an effective personal selling process.
16.	Developing and implementing an effective sales force compensation plan.
17.	Developing and implementing an effective sales force management and motivation process.
18.	Developing and implementing an effective sales performance evaluation and control process.

10. GROUPING OF ACTIVITIES WITHIN THE COMPANY

GROUPING OF ACTIVITIES WITHIN THE COMPANY

Once all specific activities pertinent to the company's operations are identified, these activities must be grouped in order to initiate the development of an Organizational Structure.

In developing the organizational structure, you and your management team must realize that no individual can be expert in every aspect of your company's activities. It is essential, therefore, to take into consideration the strengths and weaknesses of each member of your Company's Management Team and other employees within the organization. The experience, competence, and talent of each employee must be identified and subsequently utilized in building efficient and cohesive working teams.

THE EXTERNAL BUSINESS ENVIRONMENT MAY INNFLUENCE
THE GROUPING OF ACTIVITIES WITHIN THE COMPANY

The Organizing Process may also be influenced by several factors related to the external environment which surrounds your company.There are five types of external environment which are discussed in detail in this tutorial and each type may play a role in your company's organizing process, as outlined below.

FIVE TYPES OF EXTERNAL BUSINESS ENVIRONMENT


Economic Environment	Social Environment	Technological Environment	Competitive Environment	Global Business Environment

Additional elements of the external business environment which may influence your company's organizing process are presented below.

IMPORTANT ELEMENTS OF EXTERNAL BUSINESS ENVIRONMENT


Customers	Suppliers	Financial Institutions	Laws And Regulations

IMPORTANCE OF CUSTOMERS, SUPPLIERS, AND FINANCIAL INSTITUTIONS

Customers, for example, play an important role in the organizational departmentalization process discussed in detail in Tutorial 1.

Suppliers, Financial Institutions, Laws And Regulations impose additional requirements which need to be considered throughout the development of the company's organizational structure.

11. FIVE ELEMENTS OF THE ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL STRUCTURE

Organizational Structure can be viewed in terms of the following five elements illustrated below. (32)

FIVE ELEMENTS OF THE ORGANIZATIONAL STRUCTURE


Specialization Of Activities	Standardization Of Activities	Coordination Of Activities	Centralization And Decentralization Of Decision-Making	Size Of The Work Unit

ADDITIONAL INFORMATION ONLINE

•	Business Intelligence And Standardization By Yesware.
•	Defining Your Specialization In The Industry By Scott Carley.
•	Specialization And Division Of Labor By MuhammedAzeem, Education Pyramid.
•	Human Capital And Specialization - P.17, By Gary Becker, University Of Chicago.
•	Human Capital And Specialization -P.18, By Gary Becker, University Of Chicago.

12.SPECIALIZATION OF ACTIVITIES

SPECIALIZATION OF ACTIVITIES

Specialization Of Activities concerns the specification of individual and group work tasks (operational tasks) within an organization (division of work) and consolidation of these tasks into work units (departmentalization).

In a small or medium-sized company, for example, all Operational Tasks may be consolidated into five major areas of activities as illustrated below.

FIVE MAJOR AREAS OF OPERATIONAL TASKS


General Management Tasks And Activities	Human Resources Management Tasks And Activities	Financial Management Tasks And Activities	Operations Management Tasks And Activities	Marketing And Sales Management Tasks And Activities

This, in turn, leads to appropriate Departmentalization Of The Organizational Structure, initiating the development of separate departments.

13. STANDARDIZATION OF ACTIVITIES

STANDARDIZATION OF ACTIVITIES

Standardization Of Activities concerns the development of uniform and consistent procedures within the organization. Such procedures are developed by formalizing the activities of individuals or groups and specifying their relationship within each department or the whole organization.

One of the most effective methods of standardizing activities within the company is the development of its Organizational Chart, as discussed in details in this Tutorial. Standardization of activities also includes formulation of operating procedures and rules, and preparation of job descriptions for subordinates.

STANDARDIZATION OF ACTIVITIES IN A LEAN ORGANIZATION

Standardized Work represents a critical management tool in every lean organization.

Standardized Work, also known as Standard Work or Standard Operation, provides a summary of working procedures and instructions related to various operational tasks and activities which can be documented, measured and repeated in any organization. Standardized work may apply to a broad range of operational activities, such as general administration, human resources, finance and accounting, operations, marketing and sales.

Standardized Work is discussed in detail in Tutorial 1.

ADDITIONAL INFORMATION ONLINE

•	What Is Standardized Work? By EMS Consulting.
•	Standard Work Series By Simplex Improvement.
•	Standardized Work - Technical Lean Tools By Jacob Isaac-Lowry.
•	Operational Excellence - Lean Standardized Work By Frank G. Adler.
•	Lean Manufacturing With Standardized Work -The Peg Board Game By GBMP1

14. COORDINATION OF ACTIVITIES

COORDINATION OF ACTIVITIES

Coordination Of Activities concerns the integration of work carried out by individuals and groups within the organization.

This action, in fact, is similar to the task of an orchestra conductor, who aims to create beautiful music. To succeed in his or her efforts, the conductor needs to know what individual musicians should play and when they should play it.

Similarly, the company's president and every manager need to know what functions should be performed by subordinates and when appropriate tasks should be carried out. Such knowledge will ensure effective coordination of activities within each working group and the entire organization.

BUSINESS PROCESS MAPPING

Business Process Mapping describes specific operational activities and summarizes what takes place within the organization regarding these activities, who is responsible for each activity, to what standard the operational activities should be performed, and how the success of these activities can be determined.

The main objective of business process mapping is to maximize the efficiency of selected operational activities and improve overall organizational performance. Business process mapping helps to identify the following:

• Non-value-added activities, unnecessary delays, and waste in a specific operational process.
• Areas of poor communication within the organization.
• All employees involved in a specific operational process.
• Complexity of a specific operational process.
• Areas where improvement can be achieved.
• Who should be involved in improving a selected operational process?

ADDITIONAL INFORMATION ONLINE

•	Process Mapping By Mark Zabel.
•	How To Map A Business Process By Ecom Canada.
•	Basics Of Mapping A Process By Martha Begley Schade.
•	Process Mapping By Stewart Corrigan, Vanguard Scotland.
•	The Four Steps In The Business Process Mapping By CSDP Corporation.

15. CENTRALIZATION OF THE DECISION-MAKING PROCESS

CENTRALIZATION AND DECENTRALIZATION
OF THE DECISION-MAKING PROCESS

Centralization And Decentralization Of The Decision-Making Process refers to the location of the decision-making authority within the organization.

The majority of small and medium-sized companies are usually managed on a centralized basis, and the majority of all important decisions are made by top management, or even single individuals. Thereafter, all managerial decisions are passed to lower-level managers and subsequently dispersed among all employees.

Minor operational decisions usually do not concern top management and are left in the hands of supervisors and their subordinates. In larger organizations, conversely, decision making is often decentralized by delegating additional authority to middle-level managers.

STEPS IN THE DECISION-MAKING PROCESS

1.	Evaluate the existing situation.
2.	Define problems and identify root causes.
3.	Develop and evaluate optional strategies.
4.	Select the most suitable strategies and develop a plan of action.
5.	Assign the responsibility for implementing the plan of action.
6.	Implement the plan of action.
7.	Evaluate results and make adjustments.
8.	Repeat the process whenever necessary.

You should also study Lean Management Guidelines and apply these guidelines to your organization during the decision-making process whenever appropriate to maximize your business performance.

Principles Of Decision Making are discussed in detail in Tutorial 1.

16. SIZE OF A WORK UNIT

SIZE OF A WORK UNIT

Size Of A Work Unit refers to the number of employees engaged within a particular working group.

Determination of the specific Number Of Employees within a department, section, or working team depends upon the nature of the company's activities and skills of its management team. Well-known British consultant Lyndall Urwick suggested that:

"The ideal number of subordinates for all executive management positions is four, while the number of subordinates at lower managerial and operative levels may vary from 8 to 12."

Other experts found that a skilled middle-level manager may effectively control between 20 and 30 subordinates.

The ultimate size of the work unit depends upon the Span Of Management, or number of subordinates who can be effectively managed by one superior. A small number of subordinates for every manager is represented by a Narrow Management Span, while a larger number of subordinates relates to a Wide Management Span. Both types have certain advantages and disadvantages as illustrated next.

ADDITIONAL INFORMATION ONLINE

•	Span Of Control By ICS.
•	Span Of Control By VCE BizMan.
•	Span Of Control By The Ex Group.
•	Unity And Chain Of Command By ICS.
•	Primary Management Functions By ICS.

17. ORGANIZATIONAL STRUCTURE WITH A NARROW SPAN

ORGANIZATIONAL STRUCTURE

Organizational Structure with a narrow span, presented below, has certain advantages and disadvantages. (33)

ORGANIZATIONAL STRUCTURE WITH A NARROW SPAN

Advantages:		Disadvantages:
Close supervision and control by managers over their subordinates. Improved communications between managers and their subordinates.		Managers often get too involved with their subordinates. Many levels of management. Increased costs due to many levels. Potential for "red tape" due to increased distance between top management and lower level employees.

18. ORGANIZATIONAL STRUCTURE WITH A WIDE SPAN

ORGANIZATIONAL STRUCTURE

Organizational Structure with a wide span, presented below, also has certain advantages and disadvantages.(33)

ORGANIZATIONAL STRUCTURE WITH A NARROW SPAN

Advantages:		Disadvantages:
Managers are forced to delegate more frequently. Managers must formulate clear policies and rules. Subordinates must be selected with maximum care.		Work overload may cause unnecessary slowdown by managers. Increased potential of losing control over subordinates. Managers must be constantly "on-the-ball."

19.IMPORTANCE OF AN ORGANIZATIONAL CHART

IMPORTANCE OF AN ORGANIZATIONAL CHART

One of the by-products of the organizing process is the development of an Organizational Chart. In a small business such a chart is usually prepared by the company's president, who has the most comprehensive view on the company.

The organizational chart is very helpful in explaining employees the interrelation of functions and the path of communication within the organization. Once the organizational chart is developed and functional positions are created, it is essential to assign authority, responsibility, and accountability to every position within the organization.

Delegation of Authority, Responsibility, and Accountability is discussed in detail in Tutorial 1. Finally, once these tasks are accomplished, business owners and managers must establish and coordinate the relationships between all functional positions, thereby completing the organizing process.

ADDITIONAL INFORMATION ONLINE

•	Organization Charts By Mr. Rawat.
•	Examples Of An Organizational Chart.
•	Business Organization Chart By Scott Merit.
•	Organization And Structure By Ameliebms.
•	Organization Structure By Iken Edu, Mexus Education Pvt. Ltd.

20. FOR SERIOUS BUSINESS OWNERS ONLY

ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY?

Reprinted with permission.

21. THE LATEST INFORMATION ONLINE

LESSON FOR TODAY:
Don't Agonize! Organize!

Florence R. Kennedy

Go To The Next Open Check Point In This Promotion Program Online.