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The Nature of The Nature of Organizing & Organizing &

EntrepreneuringEntrepreneuringCHAPTER NO. 9CHAPTER NO. 9

By: Muhammad Hussain KhorasanyBy: Muhammad Hussain Khorasany

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ORGANIZING

1. The Identification and classification of required activities.

2. The Grouping of activities necessary to attain objectives.

3. The Assignment of each grouping to a manager with the authority necessary to survive it.

Organizing implies a formalized intentional structure of roles or positions.

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ORGANIZATIONORGANIZATION

Formal Formal OrganizationOrganization

Informal Informal OrganizationOrganization

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FFORMALORMAL OORGANIZATIONRGANIZATION

Formal Organization means the intentional structure of roles in a formally organized enterprise.

Informal Organization means a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.

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FFORMALORMAL O ORGANIZATIONRGANIZATION

Informal Activity

IINFORMALNFORMAL OORGANIZATIONRGANIZATION

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SSPANPAN M MANAGEMENTANAGEMENT

The Purpose of organizing is to make human cooperation effective, the reason for levels of organization is the limitations of the span of management.The span of management in the organizational levels are:

1. A Wide Span of Management – With few organizational Levels.2. A Narrow Span of Management – With Many Levels.

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WIDE SPAN OF MANAGEMENT

ADVANTAGES:ADVANTAGES:

1.1. Superiors are forced to Superiors are forced to delegates.delegates.

2.2. Clear policies must be made.Clear policies must be made.3.3. Subordinates must be Subordinates must be

carefully selected.carefully selected.

DISADVANTAGES:DISADVANTAGES:

1.1. Tendency of overloaded superiors to Tendency of overloaded superiors to become decision bottlenecksbecome decision bottlenecks

2.2. Danger of superiors loss of control.Danger of superiors loss of control.3.3. Requires exceptional quality of Requires exceptional quality of

managers.managers.

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NARROW SPAN OF MANAGEMENT

ADVANTAGES:ADVANTAGES:

1.1. Close SupervisionClose Supervision2.2. Close ControlClose Control3.3. Fast Communication between Fast Communication between

subordinates and superiors.subordinates and superiors.

DISADVANTAGES:DISADVANTAGES:

1.1. Superiors tend to get too involved in Superiors tend to get too involved in subordinates work.subordinates work.

2.2. Many levels of managementMany levels of management3.3. High costs due to many levels.High costs due to many levels.4.4. Excessive distance between lowest level and Excessive distance between lowest level and

top level.top level.

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PROBLEMS WITH ORGANIZATION LEVELS

Levels are expensive.

General & Administrative Problems.

Complicate Communication.

Complication in Planning & Controlling.

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FACTORS DETERMINES AN EFFECTIVE

SPAN

NNARROWARROW S SPANPAN WWIDEIDE S SPANPAN

Little or no Training.Little or no Training. Thorough training of subordinatesThorough training of subordinates

Inadequate or unclear authority Inadequate or unclear authority delegationdelegation

Clear delegation to undertake well Clear delegation to undertake well defined tasksdefined tasks

Unclear plans for non- repetitive Unclear plans for non- repetitive operationsoperations

Well defined plans for repetitive Well defined plans for repetitive operationsoperations

Non-verifiable objectives and standardsNon-verifiable objectives and standards Verifiable objectives used as Verifiable objectives used as standardsstandards

Fast Changes in external and internal Fast Changes in external and internal environmentenvironment

Slow changes in external and Slow changes in external and internal environmentinternal environment

Use of poor or inappropriate Use of poor or inappropriate communication, techniques, including communication, techniques, including vague instructionsvague instructions

Use of appropriate techniques such Use of appropriate techniques such as proper organization structure as proper organization structure with effective communication.with effective communication.

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FACTORS DETERMINES AN EFFECTIVE

SPAN

NNARROWARROW S SPANPAN WWIDEIDE S SPANPANIneffective interaction of superior and Ineffective interaction of superior and subordinatesubordinate

Effective interaction between Effective interaction between superior and subordinatessuperior and subordinates

Ineffective MeetingsIneffective Meetings Effective MeetingsEffective Meetings

Greater numbers of specialists at Greater numbers of specialists at lower and middle levelslower and middle levels

Number of Specialists at upper Number of Specialists at upper levelslevels

Incompetent and untrained managerIncompetent and untrained manager Competent and trained managerCompetent and trained manager

Subordinates unwillingly to assume Subordinates unwillingly to assume responsibility and reasonable risksresponsibility and reasonable risks

Subordinates willingness to Subordinates willingness to assume responsibility and assume responsibility and reasonable risks.reasonable risks.

Immature SubordinatesImmature Subordinates Mature SubordinatesMature Subordinates

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EENTREPRENEURINGNTREPRENEURING && IINTRAPRENEURINGNTRAPRENEURING

Intrapreneur is a person who focuses on innovation and creativity and who transforms a dream or an idea into a profitable venture by operating within the organizational environment.

Entrepreneur is a person who does similar things but outside the organizational setting. Entrepreneur have the ability to see an opportunity to obtain the necessary capital, labor and other input and to put together an operation successfully.

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WWHATHAT I ISS EENTREPRENEURSHIPNTREPRENEURSHIP

??Entrepreneurship is first and foremost

a mindset. It is the art of finding profitable solutions to problems.

Every successful entrepreneur, every successful businessperson has been

someone who's been able to identify a problem and come up with a solution

to it before somebody else did.

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WHO IS ENTREPRENEUR?

Entrepreneurcan be an individual entrepreneur, but also an entrepreneurial team or even entrepreneurial organization.

A personEmphasizes a personality rather than a

system

Habitually just cannot stop being an entrepreneur.

Creates Starts from scratch and brings into being something that was not there before .

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InnovatesAble to overcome obstacles that would stop most people; turns problems and risks into opportunities; delivers - sees ideas through to final application.

Builds something

Describes the output of the creation and innovation process

Recognized value

Encompasses economic, commercial, social, or aesthetic value.

Perceived opportunities

Spotting the opportunity to exploit an idea that may or may not be original to the entrepreneur.

WHO IS ENTREPRENEUR?

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WHAT ENTREPRENEURS ARE LIKE?

1. Personality factors – Born/made ratio - 50/50, a synergy of genetic and

environmental influence – Motivation and emotion - independence, competitive

spirit, challenge, wealth

– Behavioral characteristics - perseverance, determination, orientation to clear goals, need to achieve, opportunity orientation, creativity, persistent problem-solving, risk-taking, integrity, honesty, internal locus on control

– Personality attributes - preferred styles: extrovert/introvert; sensor/intuit; thinker/feeler; and judger/perceiver

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WHAT ENTREPRENEURS ARE LIKE?

2. Environmental factors

– Family background - entrepreneurial heritage – Age and education - begin entrepreneurial activity

early; are not over-educated

– Work experience - most entrepreneurs first gain some work experience in the line of business they later start up

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WHAT ENTREPRENEURS ARE LIKE?

3. Action factors – make the difference - initiate change and enjoy it

– create and innovate - a continuous activity, seeing creative idea through to the end, and then start climbing another mountain

– exploit opportunities - able to see or craft opportunities that other people miss

– find resources and competencies - experts at exploiting contacts and sources

– network - expertise oriented; know when they need experts and how to use them effectively

– face adversity - resolve problems under pressure; turn problems into opportunities

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WHAT ENTREPRENEURS ARE LIKE?

– manage risk - not adventurers, but manageable risk takers; their success lies in caution, learning, flexibility and change during implementation

– control the business - pay attention to details and essential ratios; exercise strategic control over their business

– put the customer first - listen to the customer and respond to the customers' feedback

– creates capital - financial, social, and aesthetic

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THE STRUCTURE & PROCESS OF ORGANIZING

1. In the first Place, (Objectives, Plans because activities derived from them).

2. In the Second Place, (Delegation of Authorities).

3. In the Third Place, (Structure, Economy, Technology, Political, Social and ethical)

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ORGANIZING PROCESS

1.1.Enterprise Enterprise ObjectiveObjective

2.2.Supporting Supporting Objectives, Objectives, Policies & PlansPolicies & Plans

3.Identification & Classification of required activities

5.Delegation of Authority

6.Horizontal & Vertical Coordination of Authority

5.Staffing 9.Controlling

FEASIBILITY STUDIES AND FEED BACK

4.Grouping of activities

8.Leading

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THANKS&

Best of Luck