THE STRUCTURE OF BUSINESS

CONTENT

1. Organisational Set-up of a Business
2. Principles of Management
3. Organisational Chart
4. Types of Organisational Structure
5. Authority and Responsibility
6. Span of Control
7. Delegation of Authority
8. Inter- and Intra-departmental Communication

Organisational Set-up of a Business

The organisational set-up of a business involves the allocation of responsibilities and functions to different components of an organisation and delegating authority to such position in order to ensure the smooth operation of the business so as to achieve the planned objectives. It can also be explained as an arrangement and interrelationship of various component parts and positions of a business.

Principles of Management

The principles of management were postulated or put forward by Frederick Taylor in 1911. These principles are:

(i) Clarity of objectives: The aim and goals of any organisation the strategies and means of achieving them must be clearly stated. This will make the employees strive towards achieving the planned objectives.

(ii) Span of control: This is the number of subordinates under the direct supervision of a manager to ensure efficiency and effectiveness; the number of subordinates should be restricted to what is mentally possible for him/her to control.