Class Notes (809,509)
Canada (493,754)
Administration (2,631)
ADM1300 (201)

ADM1300 notes for class 3- chapters 6 and 5

12 Pages
Unlock Document

University of Ottawa
Gerard Brathwaite- Sturgeon

What does Successful Business Management Look Like? Organisational Structures Organisation: structured group of people working together to achieve common goals  Three Key elements o Human interaction o Goal directed activities o Structure Transformation process Inputs Outputs Individual Group Organisational Task formal informal Sample Organisational Chart  Shows lines of formal authority-who’s in charge o Shows who is responsible for whom Departmentalization The process of dividing work activities into units w/in the organisation  Product departmentalization: Organized based on the goods and services a company offers. E.g car firms may organize based of different their different models  Geographical departmentalization: Organized by geographical regions within a country or, for a multinational firm, by region throughout the world.  Customer departmentalization: Organized by the different types of customers the organization serves. E.g IT company may have organize themselves based on military and civilian customers  Functional departmentalization: Organized by business functions such as finance, marketing, human resources, and production. Traditional way of organising  Process departmentalization: Organized by work processes necessary to complete production of goods or services. i.e what part of the value chain that you may be in Different Forms of Departmentalisation Delegating Work Assignment Delegation: The managerial process assigning work to employees. Person delegates has the accountability to and the employee is responsible to the delegator  Providing employees w/ the responsibility and necessary authority for competing tasks  Employees have accountability, or responsibility, for their actions and decisions Span of management is the number of employees a supervisor manages i.e. how many employees you manage. Delayering has led to end of middle management and span of control has increased Centralization means that decision-making is retained at the top of the management hierarchy. Decentralization means that decision-making is shifted to the lower levels. Many firms believe it enhances their flexibility and responsiveness to customer needs. Types of Organizational Structures Line organizations  Oldest and simplest form; direct flow of authority from CEO to employees.  Chain of command indicates who directs which activities and who reports to whom. Line-and-staff organizations  Combines line departments and staff departments.  Line departments participate directly in decisions that affect the core operations of the organization.  Staff departments lend specialized technical  Don’t necessarily have to power to delegate in staff relationships Committee Organisations  Authority and responsibility are in the hands of a group of individuals.  Often part of a line-and-staff structure.  Often develop new products.  Tend to act slowly and conservatively.  Often make decisions by compromising conflicting interests rather than choosing best alternative. Matrix Organizations  Employee may have to report to two individuals w/ differing opinions which may lead to later conflict  Project management structure that links employees from different parts of the organization to work together on specific projects.  Employees report to both a line manager and a project manager. Advantages  Flexibility in adapting to changes.  Focus on major problems or products.  Outlet for employees’ creativity and initiative. Disadvantages  Integrating skills of many specialists into a coordinated team.  Team members’ permanent functional managers must adjust the employees’ regular workloads.  May be hard to free up time which may lead to project taking longer than expected Matrix Organisations Starting Your Own Business: The Entrepreneurship Alternative What is Entrepreneurship?  Entrepreneur: A person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business  Differ from many small-business owners in their strong desire to make their business grow  Differ from managers through their overriding responsibility to use the resources of the organization to accomplish their goals  Willing to take risks  An entrepreneur is willing to use their resources and take risks to accomplish their goals  Behaviour = function of personality and environment  B=f (P,E)\ n Categories of Entrepreneurs  Classic entrepreneurs: person who builds a business from scratch and sticks w/ it  Serial entrepreneurs: Entrepreneurs likes starting up and business and making sure its stable before moving on  Social entrepreneurs: this type of entrepreneur likes to start up a business/project w/ an aim to do a good thing Reasons to Choose Entrepreneurship as a Career Path  In an average month, Canadians start approximately 23,000 new businesses.  Recent decades have shown a heightened interest in entrepreneurial careers.  People choose entrepreneurship for many reasons o Dissatisfaction with traditional work o Their ideas fulfill customer needs o Freedom to make own decisions Reasons to Choose Entrepreneurship as a career Path  Being Your Own Boss o Self-management is the motivation that drives many entrepreneurs.  Financial Success o Entrepreneurs are wealth creators and idea generators.  Job Security o Over the past ten years, large companies have eliminated more jobs than they have created. o Not necessarily that secure because most businesses collapse in their first year  Quality of Life o Starting a business gives the founder some choice over when, where, and how to work. The Environment of Entrepreneurs Globalisation  The rapid globalization of business has created many opportunities for entrepreneurs.  Most of the fastest-growing small Canadian companies have international sales (most to the United States).  Entrepreneurship is growing worldwide; levels vary by country. Education  Students at many colleges and universities can take a major in entrepreneurship. Dozens of other colleges and universities offer an emphasis in entrepreneurship and hundreds more offer one or two courses in how to start a business.  Many schools offer internships with start-ups. Demographic & Economic Trends  Two groups are most likely to start their own businesses o Immigrants to North America o People between the ages of 55 and 64 (have access to retirement savings/home equity; want to keep working after retirement)  Flexible, adaptable entrepreneurs will have most success Information Technology  Technology has given entrepreneurs tools that help them compete.  Entrepreneurs have used information technology to revolutionize industries. Characteristics of Entrepreneurs  Vision: an overall idea for how to make business ideas successful  High energy level: a willingness to work hard  Need to achieve: want to excel and achieve difficult goals  Self-confidence: fearlessness in the face of difficult odds  Tolerance for failure: not easily discouraged  Creativity: devise innovative ways to overcome difficult problems and situations; have new ideas for good and services  Tolerance for ambiguity: take business uncertainties in stride  Internal locus of control: belief in control of own fates; specific concept; how we view ourselves in terms of our environment; i.e. when something bad happens, do you environment and take the
More Less

Related notes for ADM1300

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.