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Organization and control

Organizing can be defined as a process of constructing, assimilating, and coordinating tasks to the employees with an aim of achieving a particular goal. it is also the way in which the workers in an organization are premeditated and maintained so that they can perform effectively. In an organization there should be a good relation between the workers and their boss through communication for a conducive environment to be created.

Legal forms of organization

            The main legal forms of organization include; sole proprietorship, partnership, corporations and cooperatives. Sole proprietorship, as the name suggests, is an organization that is run and maintained by a single individual and are very easy to organize and manage. The tax on sole proprietorship are done once a year as per the proprietor’s income. All the risks of the business are on proprietor. Partnership on the other hand is where we have two or more individual of the same interest running a business. These partners have different managerial skills. The tax is levied on each partner along with their income tax individually and not as a company.it is very difficult to arrive at the decision since there might be a disagreement among the partners. Limited Liability Company are owned by the state as one of the partners. The other member has limited liability in the company’s actions. Corporations on the other hand are owned by shareholders.

Organizational Structure: An organization must have a well-defined structure. The structure is based on power, position or duty. In organization we have departmentation which has different approaches. These approaches of departmentation include; Functional departmentation, product, territorial departmentation, customer departmentation and time departmentation.

Span of Control: Span of control is the total number underlings’ supervisor can have. Spans of control varies from a large number, few or moderate. Large number of subordinate can leave some subordinates attended while few subordinates on the other hand makes the supervisor to overspend much time on few clients, therefore moderate number is appropriate. Therefore, there must be enough training in an organization.

Line and Staff relationships: Line functions completes the main organizational goals and improves the main work in an organization e.g. production, sales and finance. The staff functions also aid in the accomplishment of the task. Line relationships represents the direction of flow of authority in an organization. Staff relationships only intervenes when the need arises, it is advisory in nature and cannot directly knack the line personnel. The line managers are charged with planning, policy making, implementation of the same and close monitoring of the subordinates to achieve the goals. Staff managers give orders to line managers pertaining the organization. In most cases there is war between the staff managers and the line manager since the line personnel considers staff personnel as less skill while the staff personnel takes them line personnel as very rigid to change.

Team: A Teams a small group of people who work together with an aim of achieving a goal. Teams work in an organization enhances unity among employees. The work is also completed faster in a team work.it also enhances learning from one another.  Recently, technology has made it possible to form virtual teams. Though these teams have setbacks since it involves individuals of different times, distance and even languages. They therefore need more precise objectives and goals than the normal teams.

Chapter 7: Some Human Aspects of Organizing

Staffing technical organizations: Staffing is the process of enlistment, selection, development,

training and compensation of the employees needed in an organization. It involves hiring skilled

personnel to the right position at the right time. Staffing procedure involves; determining the nature of the job, number of employees needed, policy of hiring employee, selection of applicant

training, evaluation and fair compensation.

Employment Application

Employee Viewpoint: During employment application, the submission of Resume and cover letter makes the first step in the process. An effective letter includes the following information the type of work, source, why interested in doing, and your educational qualifications and experience. With an appropriate cover letter, the resume should be attached and sent. The steps involved in employment view point include; application, interview, reference book, visit and actual salary.

Employer viewpoint

Orientation and Training: upon unemployment, the employee should know about medical insurance, vacations, tuition reimbursement, pensions given. This enables him to gain skills and understand ethics within the working environment. 

Appraising performance: it helps ion the assessment of employees and this helps the employer to evaluate the workers for promotion.

Authority and Power: Authority is an individual obligation to order others. There are of different types namely; formal, acceptance, situational, and technical authority. Power on the other hand is the ability of individual to influence others. Power originates from; legitimacy, rewards, punishment, skills and intrapersonal relationship.

Delegation: In management, the manager delegates duty to other suburbanites. This authority involves control over people, equipment and finances that are required to accomplish the tasks. Delegation of duty enables the manager to get assistant from the excess duty ensuring accountability and quality work 

Board: Board can be defined as “Individual or a group, appointed by an authority to whom a matter is denoted.” Organizations have permanent committee and some other committees that are formed for a specific reason and done away with upon the completion of aim. The board are used in policy making and administration, representation of particular departments, sharing knowledge and expertise and to attain cooperation for working.

Chapter 8: Controlling

Control is a state of dominating the workers. It depends on the goals and objectives which are set by the organization. It enables the manager to balance the achieved goals and the achieved one. Control systems are those policies that manage, commands, directs and directs the performance of other system. controlling system should be effective. 

Financial Controls: In financial control the cost of production and expenses are weighed against the budget. The essential steps involved financial control process are budget preparation, balance sheets, financial audits and then taking of the corrective action.

Budgets: Budgeting is the estimation of the costs, revenues, and various sources of capital in an organization. Budgeting process it enables the manager to plan well for the organization.An effective budget should be prepared from top-down approach or by bottom-up approach, the effective budgeting is the combination of both the approaches. The top manager prepares a budget which is subject to correction from other minor managers. In Zero-budgeting the manager makes his own decision and that is final. The budget is always pinned to the previous budget.

Cost Accounting: it enables the manager to assess the cost of production incurred by considering each step of production. And equipment depreciation.

Financial Statements: To assess the actual performance of an organization, financial statements are necessary. There are three types of financial statements –  Balance sheet which shows the financial position of an organization.  Income statement shows the profit and loss or revenue and expense details of an organization over a period of time. And lastly. Statement of cash flows shows the various income and their various sources.

Ratio Analysis: shows the differences between the actual performance and the planned performance. They are of for types; liquidity, leverage, activity, and profitability ratio.

Audit of financial data: is the investigation to confirm correctness of external auditing. It requires external auditing for transparency.

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