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Chapter 5
Advantages
- There is no confusion
- No need for coordination
- The managers knows all the workers personally
- Information flows directly to the manager and from the manager to the workers
Disadvantages
- Places great burden to the single manager
- If he became ill or die no one takes his place within the company
2. Father-son or manager-assistant type – either one or more sons, or one or more assistant
are used to multiply the order of “the boss” who retains all the authority and
responsibility and makes all the decision.
Disadvantages
- The boss loses contact close contact with the workers
Reorganization
Reasons
- New executive
- Death and resignations
Steps
1. First step
- Ideal
- Best suited for the needs of the company
- Reevaluate the existing systems and procedures
- Construction of organizational chart
- Organizational manual (avoid overlapping functions and conflict in responsibilities
- Purpose of the organization
Operating Policies
2 Types of Policies in Business
1. Major Policies – employee standards, guidelines and expectations, benefits, work
leaves
2. Operating Policies – guidelines for standardization of a company. It tells employees on
how they should act on matters; on what their employers expect from them. This helps
organization to be effective, efficient and smooth operating.
*Set of Policies – providing a value system and a personality to an organization. Should have
evolved as just personality of an individual from experience.
*Each division or sub-unit of an organization will have its own personality which is seen its set of
policies. And In turn, reflect the personalities of the individuals in that sub-unit and the manner
in which they interact with the total organization.
*Operating Policies tell managers how they should act in specific-recurring situations.