Topic > Designing a Better Business Organization - 1053

Being a manager is one of the most difficult - and potentially one of the most rewarding - jobs anyone can have in an organization. A successful manager must continually improve systems and processes to make them more efficient, more effective and less costly. Because the business environment is constantly changing – new employees, new technology, new sources of supply, new competitors – managers must always be alert to the need to restructure their organizations to keep them competitive in the marketplace. For better organization, be sure to consider the following factors. Division of Labor The first step in organizational design is assigning specific employees to specific jobs, called division of labor. In a one-person organization, such as a home-based public relations agency, only one person completes all the necessary work Done. The entrepreneur writes letters, answers telephones, places ads for his business, designs promotional materials for clients, writes press releases, schedules clients for media interviews and radio and television appearances, does bookkeeping, pays bills and He even takes out the trash! However, once the PR agency owner hires an employee, he can make his operations more efficient through effective division of labor. The new hire may perform tasks that the owner is not very good at or that require a lot of work but do not generate income, such as writing letters and answering the telephone. This way, the owner can focus his efforts on the things he is best at and which have a better monetary return on the investment of his time. In his book, Wealth of Nations, Adam Smith very clearly advocated the division of labor. As an example, he used the case of a pin factory. "One man takes out the wire, another straightens it, a third cuts it, a fourth points it, a fifth grinds it at the top to receive the head; making the head requires two or three distinct operations; putting it on is a particular job , whitening pins is another trade as is putting them into paper, and the important task of making a pin is, in this way, divided into about eighteen distinct operations which, in some factories, are all performed by distinct hands, though in others the same man sometimes performs two or three.