Figure 1 shows: What managers do

Planning Setting organizational goals Developing strategies to reach those goals Determining resources needed Setting standards Organizing Allocating resources, assigning tasks, and establishing procedures for accomplishing goals. Preparing a structure (organization chart) showing lines of authority and responsibility. Recruiting, selecting, training and developing employees Placing employees where they will be most effective

Directing Leading, guiding and motivating employees to work effectively to accomplish organizational goals and objectives Giving assignments Explaining routines Clarifying policies Providing feedback on performance Controlling Measuring results against corporate objectives Monitoring performance relative to standards Taking corrective actions

Unit II organizing a business

Ex.1. The Role of Organization Structure. Read and translate.

How well a firm is managed depends greatly on the organization structure. The successful firms of the future will combine the best features of large companies (access to large amounts of capital and the ability to attract and keep the most talented managers) with the best features of small businesses (focus, flexibility, and speed).

The main purpose of business is to discuss principles of organization such as the notion that companies function better when the operating units are small and manageable. There are other, similar organizational decisions that are just as important, such as: How many people should report to one manager? How much authority and responsibility should be delegated to lower-level managers and workers?

Ex.2. Key words. Read, write down and learn.

Organizational design – організаційна модель

Line personnel – основний персонал

Staff personnel – допоміжний персонал

Downsizing – скорочення

Authority – влада

Responsibility – обов”язок

Accountability – звітність

Equity – рівність

Technical complexity – технічна складність

Organization chart – організаційна схема

Matrix organization – головна організація

Self-managed teams – самокеровані групи

Cross-functional teams – багатофункціональні групи

Supervisor – керівник

Benefit - користь, зиск

Ex.3. Definition of the Key Terms. Read and translate.

Manageability - capability of everyone in the organization to know who is responsible for what, who reports to whom, what to do when problems arise, and so forth.

Organizational design - the establishment of manageable groups of people who have clear responsibilities and who know how to accomplish the objectives of the organization and the group.

Organization - a group of people working together to accomplish a goal.

Economies of scale - efficiency resulting from employee specialization created in large plants.

Authority - the right to make decisions and take actions.

Responsibility - the obligation of a person to complete a given task.

Accountability - requirement that workers accept the consequences of their action and report those actions to their layers supervisor.

Bureaucratic organization - organization with three layers of authority: (1) top managers who make decisions, (2) middle managers who develop procedures for implementing decisions, and (3) workers and supervisors who do the work.

Technical complexity - the degree to which machines are used in the production process rather than people.

Organization chart - a visual picture of an organization that shows who reports to whom.

Centralized authority - maintaining decision-making authority with the top level of management at its headquarters.

Decentralized authority - delegating decision-making authority to lower-level managers who are more familiar with local conditions.

Delegation of authority - assigning part of a manager’s duties to subordinates.

Line organization - organization in which there are direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all employees reporting to only one supervisor.

Line personnel - employees who perform functions that contribute directly to the primary goals of the organization.

Staff personnel - employees who perform functions that assist line personnel in achieving their goals.

Matrix organization - organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of traditional line and staff structure.

Formal organization - the structure that details lines of responsibility, authority, and position. It is the structure that is shown on organizational charts.

Informal organizational - the system of relationships and lines of authority that develops spontaneously as employees meet and form power centers. It is the human side of the organization and does not show on any formal charts.

Ex.4. Read about different types of organization structure.

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