Designing Organisation for Business in principles and practices of Management

Designing Organisation for Business in principles and practices of Management


Designing against Competition
The single most priority in designing an organisation is performance. The very aim of an organisation is to fulfil the purpose of organisation. Under this priority business will be the first consideration. In the competitive world, if competition is very keen, we must see how competitive business are organisation is important.
• Many other considerations are significant:
• Are they going to be something special in our business?
• What are the minimum physical resources we have to carry?
• In non-physical resource such as, how we are going to use, store and disseminate it?
• If you are going for two shifts per day, the space required will be less than in one shift working. But then the management problems would increases as if there are long hours or two shifts one may require more than one supervisor which will increases the management cost.
If a competitor is old his capital costs would be less compared to the new business you may plan. You must have something to compensate the increases in the comparative costs and, therefore may have to include more activities and also plan to increase turnover to reduce overheads and become competitive as you organize business, you will note that we have first to think in terms of needs, activities and results and then plan organisation.

Cost Consideration
The organisation decides the major overhead cost structure. The cost structure influences your performance in terms of services fees or price to be changed to the customers and be competitive. Some decisions may prove useful in immediate situation but some may take time and therefore, will not give immediate results. All these are matters of judgment and are personal. The cost of organising is thus important.

Division of Labour
The organisation involves more than one person. In such a case each person has to understand his role and position. Thus organisation has to list activities and divide these. It is the division that pre-dominates the organisation structure from a man to a group, enabling everyone to contribute. Any division promotes individual independence and makes him less depends on others.

Structure and Flexibility
In organising we talk of structure and flexibility at the same time. The good example to understand structure is to imagine a building structure which is erected with pillars and slabs before the walls are build. What the engineers aim at is to make the structure as concrete as possible and the test is its rigidity.
Organisation is founded by humans, run by humans and thus cannot be made very concrete. Organisation as a structure is purposefully kept loose to accommodate responses to both internal and external changes. When we plan a structure, we must think of flexibility by keeping its end loose. This calls for managerial acrobatics.

Designing living Organisation
If the process of building organisations is dividing then the process of running an organisation is coordinating. Thus organisation pieces will have to be woven by authority relationships, managerial communication, flow of resources, information distribution, systems and procedures, common objective, vision and mission, knowledge, values and skills.

Designing for Human Environment
The structure of an organisation has to respond to enlargement and shrinking of business and its activities. It means you must go adding to it or subtracting from it as business undergoes a change. The structure must to a reasonable extent manage these changes.