Read about organizing.
Organizing is very important for an organization. There are different ways of organizing a company. A good idea for companies is to have an organization chart. An organization will show the structure of the organization who is in charge of which department and how the department’s organization work from within. We will see how the human resources department, the assets, finance and technology department are organized and their functions within the organization.
Large organizations are structured by department. One important department is the human resource department. The human resource department is responsible for staffing the organization’s need. The staffing process involved different stages. An organization can staff the organization through recruitment. ”Recruitment is the development of a pool of applicants for jobs in an organization.” An organization can perform an internal recruiting. Internal recruiting is moving or promoting employees within the organization. It is an opportunity for the employees to be promoted and also to look at the employees skills. The skills inventory can allow the recruiter to give the employees a better opportunity in another department. A downside of internal recruiting is if an employee is lacking of skills. An organization can perform an external recruiting.
External recruiting consists of recruiting applicants through newspaper ad, job fair, internet job search site. It is sometimes difficult to hire people from outside when we do not know them. Although most organizations are required now to perform background check, reference check, drug test. However it still does not guarantee that the candidate will be good for the organization. In another hand a candidate from outside the company can bring new ideas to the company but it can takes them longer to get accustomed to the organization mission statement if the candidate is not familiar with the environment.
The organization of physical assets can be challenging as it involves securing the organization assets. It is the best interest of the company to have a person (manager) responsible for its assets. Assets can be machinery, electronics, and food. All assets must be inventoried; it can be daily, weekly, monthly or twice a year. It is important for the organization is re-evaluating the assets, they have in hands, and how they are being used. Once this evaluation is done, the management can decide, if the assets are being utilized in a good an efficient manner or if the assets need to be removed, transferred, replaced or even purchased additional assets. It is very important to keep the assets organized for an organization. It can be a loss for the organization is assets are not managed. An organization can invest in more expensive assets if they feel that the assets they have in hands are not being productive.
The finance department is an important part of the organization. It is not always view as department that understands the business needs. The finance department will control all aspects of the organization’s finance. The finance department responsibility is to communicate the budget to each manager and make sure that the managers understand the budget. The most difficult part of the finance department is to have the managers stick to a rigid budget. From an operation manager point of view, the finance department is all about numbers.
However, numbers are good indicators of how the organization is doing. The finance department will use metrics to measure the productivity and can help the operation team to make decision, if something needs to be changed in one department like changing employee schedule or downsizing. The finance department can advise the operation team and upper level management about some investments that can be made.
The organization of the technology department is useful for organizations that are using their own software. Many organizations are reluctant to use popular software on the market. Some think it will be too easy for hackers to steal data. In this case, the technology department will need to use also an organization chart. The organizational chart will have a director of technology, divided by different branches, like technical support, research development, market development, application development, solution deployment.
The issue for company who used their own software it becomes expensive on maintenance and manpower as there is no outside company to support in case of any technical issues. It requires a lot of knowledgeable employee in order to run their information technology department. As new technology evolves they need to stay up to date with the latest development in order to make sure that their systems work and are compatible.
Although it is expected that most department work together, it is easier to ask the right person for guidance having an organization chart. The chart will show different level of management. Corporate office will have the chart with the president on top of the chart and the different directors who reports to them. A regional unit or field unit will possibility show a district manager, all other different level of management and supervisors. Some organizations are centralized while others are decentralized. In centralized organization, the top level management makes “most of the decision and pass them down to lower levels for implementation”.
It is sometimes easier to manage in a centralized organization as it is easier to oversee all the organization activities. The advantages of centralization, is that top level management are aware of every single transaction that are taking place in the organization. In decentralized organization, decisions are sometimes made at the front line management level. Decentralization is sometimes difficult to manage as it requires a good front line management. Decentralization has it advantages like the front line management making decisions about purchases, however it does involve that they have a good understanding of management, and whenever decision they are making, they will need to take responsibility for any consequences. It also requires good communication skills as any decision will need to be reported to another authority.
Organizing an organization is crucial for its well being. If an organization is well-organized, it will be able to operate a profitable business. It is also true that not all organized company are profitable, but spending time to organize each department, making sure they are staffing accordingly, that they are the resources they need to operate the department is fundamental for the business. It is important that the top level managers follow with each team members on how the business is going. Getting everybody involved is an opportunity for new ideas.
Choose true or false:
1. Large organizations are structured by managers.
2. A downside of internal recruiting is if an employee is lacking of skills.
3. If an organization is well-organized, it will be able to operate a profitable business.