Virtual Kollage: BUSINESS MANAGEMENT

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Posted by Chester Morton / Thursday, 29 March 2018 / No comments

Classification of contract or Types of Contracts

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<b><span style="font-family: "New time roman", serif; font-size: 12pt; line-height: 115%;">Classification of contract/Types of
Contracts</span><span style="font-family: "New time roman", serif; font-size: 12pt;"> </span></b></div>
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<span style="font-family: "New time roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><span style="background-color: white; color: #333333; font-family: "Open Sans";"><b><i>Definition</i></b></span></span></div>
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<span style="font-family: "New time roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";"><span style="background-color: white; color: #333333; font-family: "Open Sans";">A contract is a voluntary, deliberate, and legally binding agreement between two or more competent parties. In the business environment, a contract will usually be between two business organizations or between two parties.</span><span style="-webkit-font-smoothing: antialiased; background-color: white; box-sizing: border-box; color: #333333; font-family: "Open Sans"; font-size: 13px; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal; margin: 0px; outline: none 0px; padding: 0px; text-rendering: optimizeLegibility;">  </span><span style="background-color: white; color: #333333; font-family: "Open Sans";">Although contracts are often written documents, they can also be verbal or implied in a business transaction between two parties.</span></span></div>
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<span style="font-family: "New time roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">A contract can be classified into
various types. This section will look at some of the contract type we have. <o:p></o:p></span></div>
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<span style="font-family: "New time roman", serif; font-size: 12pt; line-height: 115%;"><b><i>Simple Contracts</i></b></span><span style="font-family: "New time roman", serif; font-size: 12pt; font-style: italic; font-weight: bold;"> </span></div>
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<span style="font-family: "New time roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">A simple contract is a contract
between two individual, parties or companies. A simple contract requires
consideration. A simple contract can either be verbal or written. In fact most
oral contracts are simple in type. <o:p></o:p></span></div>
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<span style="font-family: "New time roman", serif; font-size: 12pt; line-height: 115%;"><i><b>Specialty Contracts</b></i></span><span style="font-family: "New time roman", serif; font-size: 12pt;"> </span></div>
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<span style="font-family: "New time roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Sometimes referred to as a contract
by deed or a contract under seal. Specialty contracts do not require
consideration. This is because some business transactions must be carried out
by deed. It must also be noted that all specialty contract must be written.
However, it is not all contracts which are written that can be termed a
specialty contract. It must further be understood that an activity performed
under a specialty contracts have longer limitation period than actions founded
on simple contracts. A contract by deed must be signed by both parties in the
transaction and is delivered under a seal. Us these contracts are required by
law to be so in nature. For example, is a conveyances relating to property or
If you buy or sell a land. While all other forms can be termed informal or
simple, specialty contracts are formal. <o:p></o:p></span></div>
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<span style="font-family: "New time roman", serif; font-size: 12pt; line-height: 115%;"><b><i>Contracts of record</i></b></span><span style="font-family: "New time roman", serif; font-size: 12pt; font-style: italic;"> </span></div>
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<span style="font-family: "New time roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">Contracts of record describes
rulings or judgments passed by a law court or a tribunal or an arbitration by
a recognized institution. For instance, if in the course of a litigation
between two parties and the two parties reach some agreement; for example, the
parties come to an agreement that the case be settled and the judge records
their decision in writing, such an agreement, it is called a contract of
record. Like other forms of contract what is recorded as agreed by the parties
then becomes binding on both parties. <o:p></o:p></span></div>
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<span style="font-family: "New time roman", serif; font-size: 12pt; line-height: 115%;"><b><i>Express and Implied Contracts</i></b></span><span style="font-family: "New time roman", serif; font-size: 12pt;"> </span></div>
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<span style="font-family: "New time roman","serif"; font-size: 12.0pt; line-height: 115%; mso-fareast-font-family: "Times New Roman";">A contract can also be categorized
as express or implied. Contract is considered express when the terms and
conditions of the contract are stated in words by the parties involved in the
transaction. On the other hand, when the terms of the contract are not stated
it is said to be implied. An example of an implied contract is when a passenger
boards a buss, he is by law expected to make payment for the fare of being
transported form where he boarded the bus to where he is going although this
may not be written out anywhere on the bus or at the bus station. The law
simply implies the passenger to pay and the bus authorities to transport the
passenger to his destination safely.<span style="mso-spacerun: yes;">  </span><o:p></o:p></span></div>
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<span style="font-family: "New time roman", serif; font-size: 12pt; line-height: 115%;"><b><i>Unilateral
and Bilateral Contracts</i></b></span><span style="font-family: "New time roman", serif; font-size: 12pt;"> </span></div>
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<span style="font-family: "New time roman","serif"; font-size: 12.0pt; line-height: 115%;">Contracts
may be either unilateral or bilateral. A unilateral contract contrary to its
name does not mean that only one person signed the contract. At thus far we
know that there are always at least two parties involve in a contractual
agreement. A unilateral contract means that only one party is bound by the
terms of the contract. While a bilateral contract is one in which both parties
are bound. If you sign an undertaking to pay up a debt you owe by a certain
date, you are engaged in a unilateral contract even though you are making this
undertaking to the other party (for example, a bank). However, if you agree to
give away your car if the other party could provide you with an amount of 1000
USD, then we can talk of a bilateral contract because you are not the only one
bound. The other party must first give you a 1000 USD. <o:p></o:p></span></div>
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Classification of contract or Types of Contracts

Classification of contract/Types of Contracts Definition A contract is a voluntary, deliberate, and legally binding agreement betw...

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Posted by Chester Morton / Thursday, 22 March 2018 / No comments

The differences between Contract, Agreement and Promise

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<span lang="EN" style="font-size: 12pt; line-height: 115%;"><img alt="Business, Office, Contract, Agreement" src="https://cdn.pixabay.com/photo/2018/02/20/10/28/business-3167295__340.jpg" /></span></div>
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<span lang="EN" style="font-size: 12pt; line-height: 115%;"><b>The differences between Contract Agreement and Promise </b><b><o:p></o:p></b></span></div>
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<span lang="EN" style="font-size: 12pt; line-height: 115%;"><b><i>Promise</i><o:p></o:p></b></span></div>
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<span lang="EN" style="font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">While every contract contains </span><span style="font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">some form of a promise, it is often difficult to
say that a promise is the same as a contract. A promise however may be the
first step to in entering into a contract. <o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 115%;">A promise can be described as an offer
which is an important element in forming a contract but a promise alone may not
be binding on both parties. This is so because an offer alone does not oblige
the parties to respect any terms. Furthermore, a promise can lapse with the
passage of time. Or it can also be rejected by the one to whom the promise is
made.  </span><span style="font-size: 12pt; line-height: 115%;">It is in this sense only <b><i>a commitment by one party to
another to carry out or refrain from carrying a specified act or acts</i></b><i>. </i>A promise can be binding or not but difficult
to enforceable in law.</span></div>
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<span style="font-size: 12pt; line-height: 115%;"><i><b>Agreement</b></i></span></div>
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<span style="font-size: 12.0pt; line-height: 115%; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-hansi-font-family: Calibri;">An offer contained in a promise must be
accepted. This acceptance suggests that both parties understand the
considerations (benefits) which will be derived by both. In fact, it is this
offer and the acceptance of the offer which constitute the "meeting of
minds in the same intention” between the two parties often called an
"agreement' which is another important aspect of a contract. <o:p></o:p></span></div>
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<span style="font-size: 12pt;">While some people would like to equate an
agreement to a contract, any businessman must understand that a contract is a
little different from an agreement. A contract can be described as an agreement
made with the intention to make it a legally obligatory. Two parties in a
contract therefore are legally bound to perform what is specified in a
contract.</span></div>
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<span style="font-size: 12pt;">A good definition for an agreement is
"</span><b style="font-size: 12pt;"><i>a concord of understanding and intention between two parties with
respect to their relative rights and duties"</i></b><span style="font-size: 12pt;"> (Black's Law
dictionary 2014). This means that in formulating a contract it is important
that the two parties reach some agreement and until there has been this
agreement by one party accepting an offer proposed by the other party
suggesting that the parties are in agreement on all aspects of the business
transaction, there can be no contract.</span><span style="font-size: 12pt;"> </span></div>
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<span style="font-size: 12pt; line-height: 115%;"><b><i>A contract</i></b></span></div>
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<span style="font-size: 12pt;">A contract is a legally binding agreement
between two or more parties. It could be written, verbal or implied.</span></div>
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<span style="font-size: 12pt; line-height: 107%;"><i><b>Key Points</b></i><b><o:p></o:p></b></span></div>
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<span style="font-family: "symbol"; font-size: 12.0pt; line-height: 107%;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">       </span></span></span><span style="font-size: 12.0pt; line-height: 107%;">A
promise is a mere proposition of an offer. It may be binding on both parties
but nearly impossible to be enforced by law.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><br /></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "symbol"; font-size: 12.0pt; line-height: 107%;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">       </span></span></span><span style="font-size: 12.0pt; line-height: 107%;">An
agreement involves an offer and an acceptance of the offer. It has a weaker
legal backing and can only be enforced under some limited circumstances.<o:p></o:p></span></div>
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<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<span style="font-family: "symbol"; font-size: 12.0pt; line-height: 107%;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">        </span></span></span><span style="font-size: 12.0pt; line-height: 107%;">A
contract is an agreement which is legally binding and can be enforced by law at
all times. <o:p></o:p></span></div>
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The differences between Contract, Agreement and Promise

The differences between Contract Agreement and Promise Promise While every contract contains some form of a promise, it is often dif...

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Posted by Chester Morton / Tuesday, 20 March 2018 / No comments

The Legal Framework in which Businesses Operate - void contracts

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<span style="font-size: 12pt; line-height: 107%;"><b>The Legal Framework in
which Businesses Operate <o:p></o:p></b></span></div>
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<span style="font-size: 12pt; line-height: 107%;"><b><i>Introduction</i><o:p></o:p></b></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">The legal framework refers to the set of guidelines, rules of
conduct and regulations within which any entity operates. Similarly, the
business legal framework describes the set of laws which guides the conduct of
business activities in a country. Any business within this legal space must
carry out its activities bearing in mind that the laws which guide how business
is done in a country must be obeyed since these laws are enforceable in the
courts. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">For businesses to continue to exist in a country or a region,
they must demonstrate that they are committed to obeying the laws which govern
doing business in that country. A business organization which is not committed
to operating within the legal framework of its host country is bound to have
problems going forward. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><b><i><br /></i></b></span></div>
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<span style="font-size: 12pt; line-height: 107%;"><b><i>Contracts </i><o:p></o:p></b></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">A contract is a voluntary, deliberate, and legally binding
agreement between two or more competent parties. In the business environment, a
contract will usually be between two business organizations or between two
parties.<span style="mso-spacerun: yes;">  </span>Although contracts are often
written documents, they can also be verbal or implied in a business transaction
between two parties. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><br /></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">That there is a contract does not necessarily mean that a
contract can be enforced. For example, a void contract cannot be enforced by a
law court. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">A contract is said to be void if it has any or a number of
these elements. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><i><b>If it is illegal</b></i></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><span style="mso-spacerun: yes;"> </span>A contract is void
if it is illegal from the very moment it is made. As indicated earlier pouring
a toxic waste in public is illegal according to the law then if a company
enters into agreement to collect another companies toxic waste and dump this in
a public place such a company cannot seek redress in court if it was not paid
in court because the activity it sought to perform is an illegal act. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><br /></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><i><b>If declared null and void by a court</b></i></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">A contract is also void if it is legal but have been
declared by a court as null and void perhaps because the court is of the view
that the contract as it stood violates certain basic principles such as human
right, or that it is not fair to either party or because the contract goes
against a policy made by the government of the country in which the business is
located.<span style="mso-spacerun: yes;">  </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="line-height: 107%;"><span style="font-size: large;"><b><i><br /></i></b></span></span></div>
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<span style="line-height: 107%;"><span style="font-size: large;"><b><i>If the laws of the land change</i></b></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">A contract can also be termed as a void contract if there
has been changes in the law of the land or policies made by the government
which have made it untenable in law. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><b><i><br /></i></b></span></div>
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<b><i>None compliance with the provisions of the contract</i></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">A contract can also be declared void if the provisions in
the contract has not been fully complied with by both parties. <o:p></o:p></span></div>
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<b><i><br /></i></b></div>
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<b><i>Absence of capacity to contract</i></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Lack of capacity to contract (such as arises from being an
infant or minor, intoxicated, or insane) automatically makes a contract void. A
contract that is void only in one or few parts may be saved by the process of
severance. Not to be confused with voidable contract.<o:p></o:p></span></div>
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The Legal Framework in which Businesses Operate - void contracts

The Legal Framework in which Businesses Operate Introduction The legal framework refers to the set of guidelines, rules of conduct a...

The Legal Framework in which Businesses Operate - Conditions for a contract to be valid

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<img alt="Binding Contract Contract Secure Agreement" src="https://cdn.pixabay.com/photo/2015/09/20/15/46/binding-contract-948442__340.jpg" /></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><b>The Legal Framework in
which Businesses Operate </b><o:p></o:p></span></span></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><b><i>Introduction</i><o:p></o:p></b></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">The legal framework refers to the set of guidelines, rules of
conduct and regulations within which any entity operates. Similarly, the
business legal framework describes the set of laws which guides the conduct of
business activities in a country. Any business within this legal space must
carry out its activities bearing in mind that the laws which guide how business
is done in a country must be obeyed since these laws are enforceable in the
courts. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">For businesses to continue to exist in a country or a region,
they must demonstrate that they are committed to obeying the laws which govern
doing business in that country. A business organization which is not committed
to operating within the legal framework of its host country is bound to have
problems going forward. <o:p></o:p></span></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><b><i>Contracts </i><o:p></o:p></b></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">A contract is a voluntary, deliberate, and legally binding
agreement between two or more competent parties. In the business environment, a
contract will usually be between two business organizations or between two
parties.<span style="mso-spacerun: yes;">  </span>Although contracts are often
written documents, they can also be verbal or implied in a business transaction
between two parties. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">In doing business, contracts are generally related to
employing a worker, selling or buying goods and services, leasing a business
premise or equipment. <o:p></o:p></span></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><b>CONDITIONS FOR A CONTRACT TO BE VALID<o:p></o:p></b></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">For a contract to be valid the following conditions must be
present <o:p></o:p></span></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><b><i>There must be an offer</i></b><o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">An offer in the law of contract means that one party promises
to provide some form of benefit if the other party performs certain service or
provides a given good. For example, when Mr. James promises to pay 200 USD to
Mr. Goodman if Mr. Goodman will perform certain work to ensure Mr. James’ air
condition is working there can be said to be an offer. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><br /></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">It must be understood that an offer can be revoked or
cancelled. For instance, Mr. James can say that he will no longer be able to or
willing to pay the 200 USD and therefore Mr. Goodman should not work on his air
condition.<span style="mso-spacerun: yes;">  </span><o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><span style="mso-spacerun: yes;"><br /></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Another thing we must know about an offer is that it can be
negotiated to create a counter-offer. Let say Mr. James wanted to buy a new house
in the city of Lagos. Looking through some adverts placed in the local
newspaper, <i style="mso-bidi-font-style: normal;">the guardian</i> he found what
seemed to be a beautiful house in a nice neighborhood. This advert is in fact
an offer by the homeowner to sell his house to anyone who may be willing to
buy. This offer is just one of the many elements which make a contract valid.
If Mr. James is serious about buying this house, he could in turn make a
counter offer of 200,000 USD if Mr. Koomson originally priced his house at
250,000 USD. <o:p></o:p></span></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><b><i>There must be an
acceptance of the offer</i></b><o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">When an offeree (in our house purchase case, Mr. James),
agrees to be mutually bound by the terms under which Mr. Koomson will be
willing to give his house out in sale to another party, by giving something
valuable such as money to make the transaction complete then we say there is an
acceptance of the offer<b style="mso-bidi-font-weight: normal;">. <o:p></o:p></b></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><b style="mso-bidi-font-weight: normal;"><br /></b></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Although in law one must be able to tell objectively whether
Mr. James has accepted the offer made by Mr. Koomson, this acceptance can also
be inferred from Mr Jame’s behaviour.<span style="mso-spacerun: yes;">  </span><o:p></o:p></span></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><i><b>There must be a
consideration</b></i><b><o:p></o:p></b></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Consideration basically refers to the benefit which is
bargained for between the parties involved in the contract. Explained in
another way consideration is the main reason the two parties are entering into
the contract in the first place. In our previous example the consideration
(benefit) to Mr. James is owning a house but to Mr. Koomson it is to be able to
raise the amount of 200,000 USD to do whatever he wanted to do with this money.
<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><br /></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">It is very important to note that what is outlawed or illegal
cannot be taken as a consideration. For example, you cannot pay someone to
breakdown another person’s apartment if breaking such an apartment is illegal
according to the laws of the nation. A contract of such nature can therefore
not be enforceable before a judge. <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><br /></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Where a consideration (benefit) is found to be worth less
than expected we say there is a “Failure of Consideration”. A contract may be
therefore undone based on such a reason. <o:p></o:p></span></div>
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<br /></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><b><i>There must be mutuality</i><o:p></o:p></b></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">When there is an understanding between the two parties
entering into a contract we say there is mutuality in the contract. The
principle of mutuality in contract states that both parties must be bound by
the terms of the contract or neither of them should be bound. A lack of
mutuality means that both parties do not have a common understanding of the
terms of the contract. <o:p></o:p></span></div>
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<br /></div>
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<span style="mso-bidi-font-weight: normal;"><span style="font-size: 12pt; line-height: 107%;"><b><i>There must be legally acceptable
terms</i></b><o:p></o:p></span></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Finally, for a contract to hold there must be legally
acceptable terms<b style="mso-bidi-font-weight: normal;"> </b>the element of
legally accepted terms means that all terms in the contract must be legally
tenable in court. If a company enters into a contract to perform an illegal
business this is not legally acceptable and therefore cannot be enforced in a
court of law. <o:p></o:p></span></div>
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The Legal Framework in which Businesses Operate - Conditions for a contract to be valid

The Legal Framework in which Businesses Operate Introduction The legal framework refers to the set of guidelines, rules of conduct a...

Home BUSINESS MANAGEMENT , Education

Posted by Chester Morton / Saturday, 23 December 2017 / No comments

The importance of organizing

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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiN0qR_giXWL7t5jbojx62TEsoX5CiTZIeDVe6TpEMDSM_njBVA-xstkIBehfclWUprtVI6u2c7lG4x5L13Ppno31rLH-d8NFGBM5sccVoOKwcoDcVwTf7smSNafwOmnN1varCiOOCXAY3Y/s1600/IMP.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="340" data-original-width="968" height="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiN0qR_giXWL7t5jbojx62TEsoX5CiTZIeDVe6TpEMDSM_njBVA-xstkIBehfclWUprtVI6u2c7lG4x5L13Ppno31rLH-d8NFGBM5sccVoOKwcoDcVwTf7smSNafwOmnN1varCiOOCXAY3Y/s400/IMP.jpg" width="400" /></a></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><b>RELEVANCE OR
IMPORTANCE OF ORGANIZATION<o:p></o:p></b></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><i><b>Definition
of Organizing<o:p></o:p></b></i></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;">Organizing
is both a process and function of management. It aims to determine and define
which role each individual in the organization will play towards the attainment
of the firm’s objective. In doing so, the organizing function of management
establishes authority- responsibility relationships among employees; and makes
provision for co-ordination in the company so that the firm is able to function
as a unit.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><b>RELEVANCE OR
IMPORTANCE OF ORGANIZATION <o:p></o:p></b></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;">The
relevance of the organization or the importance of organization is often seen
in the roles which the function plays in helping the company to function
properly. Let us discuss some of the roles or advantages of
organizing/organization.  <o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><i><b>Organizing/Organization
Facilitates specialization<o:p></o:p></b></i></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;">By assigning
roles to employees and managers alike, organization serves to facilitate
specialization among managers, assistant managers, operators, and
subordinates.  Such assignment of roles
and division of work among individuals leads to specialization of employees in
various areas of the company’s operations and thereby improving efficiency of
workforce in the firm’s functioning. Specialization resulting from division of
labour also enables the firm to be more orderly in its operation.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"> </span><img alt="People, Business, Adult, Paper, Document" src="https://cdn.pixabay.com/photo/2018/04/06/11/21/people-3295555__340.jpg" /></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><i><b><br /></b></i></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><i><b>Organizing/Organization
helps to Avoid omissions, overlapping and duplication of efforts:</b></i><o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;">As work is
divided among individual employees and the various departments in the course of
organizing, management takes the pain to ensure that: every aspect of the work
which must be done in order for the firm to attain its objectives is performed;
that there is no duplication of efforts or overlapping of activities among
employees or departments. This helps the company to economize its resources as
it aims to function well.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><b><i>Organizing/Organization
Defines (or clarifies) authority responsibility relationships<o:p></o:p></i></b></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;">When
organizing is taking place within the firm, roles are clarified; authority and
responsibility relationships among managers, employees as well as among the
various departments of the organization are well explained.  Such clarification of authority
responsibility relationships does not only enable the organization to operate
smoothly, it also makes it possible for human relations in the organization to
be promoted by the fact that everybody understands their roles; a situation
which minimizes conflict among workers.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><b><i>Organizing/Organization
Facilitates staffing<o:p></o:p></i></b></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;">The
organization helps the company develop a formal organizational structure. This
helps immensely when staffing the company. By knowing the various company
positions and clearly specifying the duties and the responsibilities which must
be performed by a person occupying that position, it becomes easier to look for
individuals with the qualification, experience and skill set to fill and
function in those positions efficiently.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><img alt="Hurry, Stress, Time Management" src="https://cdn.pixabay.com/photo/2017/03/05/20/09/hurry-2119711__340.jpg" /> </span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><b><i>Organizing/Organization Provides for
co-ordination<o:p></o:p></i></b></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;">A
well-organized firm will obviously make coordination among the various heads
and departments easier. This is because proper coordination is more often than
not a by-product of company which is well-organized.  When the structure of the firm is
well-designed and defined, it promotes a thorough co-ordination both
horizontally and vertically; and helps the firm’s managers in managing the
organization's operations more efficiently. 
<o:p></o:p></span></div>
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<span style="font-size: 12pt;"><i><b>Organizing/Organisation
Facilitates Management by Exception</b></i></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;">Management
by exception is a management philosophy which describes a situation where the
top managers concentrate solely on those matters which are of exceptional
importance or critical such as formulating the company-wide strategy,
formulating organizational policies, controlling variations or deviation in
company performance; especially those resulting from non-performance by
personnel; and leaving those tasks which are routine and operational matters to
subordinates in the firm.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-size: 12.0pt; line-height: 115%;">A system of
management by exception cannot be implemented in a company except the company
is well-organised. As a matter of fact, management by exception represents the
highest state of decentralization of authority in a well-structured
organization.<o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<br />
<div class="MsoNormal">
<span style="font-size: 12.0pt; line-height: 115%;">Other
advantages of organizing/organization include: helping in establishing channels
of communication; making it possible for the firm to easily cope with
environmental changes; and promoting growth of the organization.<o:p></o:p></span></div>
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<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><b>ALSO READ:</b></span><br />
<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><a href="http://www.virtualkollage.com/2017/12/-the-operational-principles-of-organization.html" target="_blank">The operational principles of organization</a></span><br />
<a href="http://www.virtualkollage.com/2017/12/span-of-control-what-it-is.html" target="_blank">Span of control - what it is</a></div>
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The importance of organizing

RELEVANCE OR IMPORTANCE OF ORGANIZATION Definition of Organizing Organizing is both a process and function of management. It...

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Posted by Chester Morton / Thursday, 21 December 2017 / No comments

The operational principles of organization

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<b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;">OPERATIONAL PRINCIPLES OF ORGANIZATION<o:p></o:p></span></b></div>
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<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;">Operational principles of
organization describe the principles which concerns how the organization is
run. The principles which can be
classified as operational principles are as follows: <o:p></o:p></span></div>
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<b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;">The Principle of adequate
delegation</span></b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;">The principle of adequate
delegation means that each manager or assistant manager must be given enough
authority for him or her to be able to cope with the demand of his position and
successfully deliver the outcome that is expected of him. This is because where
the authority given to a manager is not enough for him to successfully cope
with the requirements of his job that manager would likely be ineffective. <o:p></o:p></span></div>
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<b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"> The Scalar chain principle</span></b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;">Scalar chain principle implies
that there should a command structure from the highest to the lowest authority.
This principle is what forms the basis of the relationship between authority
and responsibility among managers and their subordinates in the firm. The
scalar chain principle if well understood and implemented helps to promote
coordination and harmony among superiors and subordinates in the organization. <o:p></o:p></span></div>
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<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;">To ensure that the firm’s
operations run smoothly, the scalar chain principle must be woven into the
design of the company’s structure.  <o:p></o:p></span></div>
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<b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"> The Principle of unity of command</span></b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><o:p></o:p></span></div>
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<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;">The principle of unity of
command states that in order for the firm’s operations to be efficient, an
employee must take orders or instructions from only one superior at any given
time. It is important to observe this principle because it helps employees
avoid being confused about their role and duties in the firm. When employees
are clear about their role and duties, the whole firm benefits from their
operational efficiency.  <o:p></o:p></span></div>
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<b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;">The Principle of
Authority-level or the Authority-level principle</span></b><span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><o:p></o:p></span></div>
<span style="background-color: white; color: #424142; font-family: "georgia" , serif; font-size: 12pt; text-align: justify;">The authority-level
principle means that every manager at a given level in the firm’s management
hierarchy should concern themselves with, and make decisions regarding only
those issues which fall within the boundaries of the authority assigned to the
management position which they occupy. Alternatively, if a manager at any level
is faced with a problem or a decision which is not part of the duties or
responsibilities falling under the authority of the position (s)he is occupying,
then the matter should be referred (escalated) upward to the manager above him
or refer the problem downward to the manager below him for a decision to be
taken on the issue. </span><br />
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<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><br /></span>
<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><b>ALSO READ:</b></span><br />
<span style="color: #424142; font-family: "georgia" , "serif"; font-size: 12.0pt;"><a href="http://www.virtualkollage.com/2017/12/span-of-control-what-it-is.html" target="_blank">Span of control, what it is</a></span><br />
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The operational principles of organization

OPERATIONAL PRINCIPLES OF ORGANIZATION Operational principles of organization describe the principles which concerns how the organiz...

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Posted by Chester Morton / Wednesday, 20 December 2017 / No comments

Span of control, what it is.

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<b><span style="font-size: 12.0pt; line-height: 107%;">UNDERSTANDING THE PRINCIPLE-SPAN
OF MANAGEMENT OR SPAN OF CONTROL </span></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Span of control is very important in determining how
effective or otherwise a manager would be in his supervisory duties. It will be
useful for us to take a look at some observations within the context of span of
management or span of control. </span></div>
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<span style="font-size: 12pt; line-height: 107%; text-indent: -0.25in;"><i><b>A limit to a manager's effectiveness</b></i></span></div>
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<span style="font-size: 12pt; line-height: 107%; text-indent: -0.25in;">The
first to understand about the concept of span of control is that, there is a
limit to how effective a manager would be. However, there is no limit to how
inefficient or ineffective a manager can ever be. Hence the principle of span
of management would apply only when we are talking about effective management.</span></div>
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<span style="font-size: 12pt;">As an example let’s look at the number of high school students in one classroom. Ideally, there must be a limit to the number of students
admitted into one classroom. This is because no matter how good the teacher is,
it would be impossible for him to effectively teach an indefinite number of
students lumped into one classroom. The teacher would be limited by issues such as the  noise level, inability to give quality
attention to each student, providing special supervision to students with
specific difficulty in understanding the subject, and monitoring the progress
of each student. It would be difficult for the teacher to effectively teach a classroom with an
indefinite number of students, regardless of how good the teacher may be.</span></div>
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<span style="font-size: 12.0pt; line-height: 107%;"><br /></span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Let us compare the classroom example to a public speaker who
is able to address hundreds of thousands of people in a gigantic stadium. In this
case, because it doesn’t matter so much whether or not the message of the
speaker is well delivered or whether the audience can remember what the speaker
said after they have left the gathering or not and so on…, we cannot apply the
principle of span of management. This is because unless in extreme cases no one
is coming back to examine the audience in a stadium whether they understood
what the speaker said or not. </span></div>
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<span style="font-size: 12pt;"><br /></span></div>
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<span style="font-size: 12pt;">This means that we can only apply the principle of span of
control to those situations where we expect the manager (in these cases
the class teacher) to be effective for obvious reasons. In the company some of
these reasons could be the need to grow the company’s profit, increase sales,
improve product quality or outsell our competitors.</span></div>
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<span style="font-size: 12pt;"><br /></span></div>
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<b><i>Span of control is situational</i></b></div>
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<span style="font-size: 12pt; text-indent: -0.25in;">Secondly,
whenever we talk about span of management or span of control, we are thinking
of which number of subordinates a manager should have under his immediate
control or supervision for him to be efficient in managing them an producing
the best results. Obviously, this is difficult to tell because a manager may be effective in managing say 10 subordinates in one situation but can only manage
say four in another situation. This is why we say that the principle of span of
control is </span><span style="font-size: 12pt; text-indent: -0.25in;">situational</span><span style="font-size: 12pt; text-indent: -0.25in;">. In other
words, there are no hard and fast numbers of subordinates which can produce
optimum results, if placed under one manger’s control in every situation. </span><span style="font-size: 12pt;">Much depends on how competent the manager is; the skill and
expertise of the sub managers placed under him; and the particular situation in
which the firm finds itself.</span></div>
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<span style="font-size: 12pt; line-height: 107%; text-indent: -0.25in;"><i><b>Organizational structure</b></i></span></div>
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<span style="font-size: 12pt; line-height: 107%; text-indent: -0.25in;">The
third thing to note about the span of management principle is that it tells us
a lot about the firm’s structure or what is more often called the <i>organizational structure</i>. If a single
manager could manage the entire number of subordinates, there will be no need
for a formal organizational structure. But where the manager cannot manage all
subordinates in the company effectively then these subordinates must be grouped
under various sub managers; leading to a kind of a structured organizational
structure. </span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">In large
part, this is what creates the distinction between a flat organizational
structure or a tall one like the ones in the diagram below.</span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">It can be observed that in the top organizational structure the only manager manages all the subordinates in the firm and
therefore there are no Assistant Managers. The truth about this scenario is
that if we continue to add more subordinates, it will get to a point where the
manager can no longer be efficient at managing these subordinates. The would
then be the need to create positions for assistant managers to manage the
growing number of subordinates, leading to a taller organizational structure as
in the second scenario. <o:p></o:p></span></div>
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</span></div>
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<span style="font-size: 12.0pt; line-height: 107%;">We can conclude that in this kind of
firm, the span of management is narrow. Where the firm can function optimally,
with a wider span of control the organizational structure would be much
flatter.</span><br />
<span style="font-size: 12.0pt; line-height: 107%;"><br /></span>
<span style="font-size: 12.0pt; line-height: 107%;"><b>ALSO READ:</b></span><br />
<span style="font-size: 12.0pt; line-height: 107%;"><a href="http://www.virtualkollage.com/2017/12/-the-outcome-of-exercising-managerial-function-of-organizing.html" target="_blank">The outcome of exercising the managerial function of organizing</a></span><br />
<a href="http://www.virtualkollage.com/2017/12/-explaining-organizing-and-steps-involved-in-organizing.html" target="_blank">Explaining the term organizing and the steps in organizing</a></div>
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Span of control, what it is.

UNDERSTANDING THE PRINCIPLE-SPAN OF MANAGEMENT OR SPAN OF CONTROL Span of control is very important in determining how effective or o...

Home BUSINESS MANAGEMENT , Education

Posted by Chester Morton / Thursday, 14 December 2017 / No comments

The outcome of exercising the managerial function of organizing

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<b><span style="font-size: 12.0pt; line-height: 107%;">OUTCOME OF EXERCISING THE MANAGERIAL FUNCTION OF ORGANIZING <o:p></o:p></span></b></div>
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<b><i><span style="font-size: 12.0pt; line-height: 107%;">Defining Organizing <o:p></o:p></span></i></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Organizing is both a process and function of management. It
aims to determine and define which role each individual in the organization
will play towards the attainment of the firm’s objective. In doing so, the
organizing function of management establishes authority- responsibility
relationships among employees; and makes provision for co-ordination in the
company so that the firm is able to function as a unit. <o:p></o:p></span></div>
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<b><i><span style="font-size: 12.0pt; line-height: 107%;">Introduction<o:p></o:p></span></i></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Three things one must note as important outcome of the
organizing process.<o:p></o:p></span></div>
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<b><i><span style="font-size: 12.0pt; line-height: 107%;">The organization is the result of the organizing process <o:p></o:p></span></i></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">In carrying out the process of organizing, the firm’s
organizational structure will emerge. In reality, if we consider organizing as
the managerial process, the organization or the organizational structure will
be the outcome. <o:p></o:p></span></div>
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<br /></div>
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<b><i><span style="font-size: 12.0pt; line-height: 107%;">Proper Co-ordination is important for the organization to
work properly.<o:p></o:p></span></i></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Management must ensure that in designing the organizational
structure through the process of organizing, they plan and make provision for
proper co-ordination throughout the organization or the firm. This is because
without co-ordination the firm would be incapable of functioning effectively
and efficiently. <o:p></o:p></span></div>
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<b><i><span style="font-size: 12.0pt; line-height: 107%;">The right balance between centralization and decentralization
must be sought<o:p></o:p></span></i></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Management must be able to settle the issue of which of how
much power will be centralized or at which level to allow for some
decentralization within the firm. As a matter of fact, if this problem is not
addressed at least in the beginning of creating the organization, future
dysfunctions cannot be avoided. It is very necessary that while delegation of
authority is an important aspect of organizing, how much authority is delegated
to whom, must be decided very early in the firm’s operation. The company’s
management must decide whether to grant more authority to departmental
managers, or to grant operational heads with more power to make decisions. <o:p></o:p></span></div>
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<b><span style="font-size: 12.0pt; line-height: 107%;">PRINCIPLES OF ORGANISATION<o:p></o:p></span></b></div>
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<span style="font-size: 12.0pt; line-height: 107%; mso-bidi-font-weight: bold;">For an organization to function
properly certain principles must be followed. These principles can be
categorized under overall or general principles, structural principles and
operational principles. Under each principle, there are a set of sub-principles.
This article will be dedicated to explaining “overall principles”:<o:p></o:p></span></div>
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<br /></div>
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<b><span style="font-size: 12.0pt; line-height: 107%;">OVERALL PRINCIPLES</span></b><span style="font-size: 12.0pt; line-height: 107%; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<span style="font-size: 12.0pt; line-height: 107%; mso-bidi-font-weight: bold;">Overall or general principles
specify those principles which are very fundamental and absolutely essential
for the firm to function effectively and in a harmonious manner. Overall
Principles include the following: <o:p></o:p></span></div>
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<b><i><span style="font-size: 12.0pt; line-height: 107%;">Principle of unity of
objective or unity of purpose </span></i></b><i><span style="font-size: 12.0pt; line-height: 107%; mso-bidi-font-weight: bold;"><o:p></o:p></span></i></div>
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<span style="font-size: 12.0pt; line-height: 107%;">In very simple terms this principle demands that individuals
or each member of the personnel must have objectives or goals which are in
perfect harmony with those of the department he/she works in. For example, the
career goals of the personnel must support and be supported by the departmental
objective. <o:p></o:p></span></div>
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<b><i><span style="font-size: 12.0pt; line-height: 107%;">The Principle of
simplicity</span></i></b><i><span style="font-size: 12.0pt; line-height: 107%;"><o:p></o:p></span></i></div>
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<span style="font-size: 12.0pt; line-height: 107%;">The principle of simplicity requires that management must
create the simplest organizational structure possible. The simpler the
structure the easier it is for personnel to understand superior -subordinate
relationships and the better the co-operation of personnel in ensuring the
business functions properly. <o:p></o:p></span></div>
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<br /></div>
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<b><i><span style="font-size: 12.0pt; line-height: 107%;">The Principle of
flexibility</span></i></b><i><span style="font-size: 12.0pt; line-height: 107%;"><o:p></o:p></span></i></div>
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<span style="font-size: 12.0pt; line-height: 107%;">In designing the structure of the organization, management
must make sure there are in-built mechanisms which can allow the firm to be
flexible and agile. This would make it easier for the company to adapt when
changes occur in the external and internal business environment of the firm. <o:p></o:p></span></div>
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<b>ALSO READ:</b><br />
<a href="http://www.virtualkollage.com/2017/12/levels-of-management-decision.html" target="_blank">The steps involved in organizing</a><br />
<a href="http://www.virtualkollage.com/2017/12/levels-of-management-decision.html" target="_blank">The levels of management decision</a><br />
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The outcome of exercising the managerial function of organizing

OUTCOME OF EXERCISING THE MANAGERIAL FUNCTION OF ORGANIZING Defining Organizing Organizing is both a process and function of manag...

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Posted by Chester Morton / Monday, 11 December 2017 / No comments

Explaining organizing and the steps involved in organizing

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<b><span style="font-size: 12.0pt; line-height: 106%;">ORGANIZING AND THE STEPS INVOLVED<o:p></o:p></span></b></div>
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<b><span style="font-size: 12.0pt; line-height: 106%;"><i>Definition of Organizing</i> <o:p></o:p></span></b></div>
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<span style="font-size: 12pt; line-height: 16.96px;">Organizing is both a process and function of management. It aims to determine and define which role each individual in the organization will play towards the attainment of the firm’s objective. In doing so, the organizing function of management establishes authority- responsibility relationships among employees; and makes provision for co-ordination in the company so that the firm is able to function as a unit. Here are some definitions offered by renowned authors.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 16.96px;">According to Koontz and O ‘Donnell, “Organizing is the establishment of authority relationships with provisions for co-ordination between them, both vertically and horizontally in the enterprise structure”.<o:p></o:p></span></div>
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<span style="font-size: 12pt; line-height: 16.96px;">In the view of Louis A. Allen. “Organizing is the process of identifying and grouping the work to be performed, defining and delegating the responsibility and authority and establishing a pattern of relationship for the purpose of enabling people work most effectively to accomplish the objective”.<o:p></o:p></span></div>
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<b><span style="border: 1pt none; color: #424142; font-size: 14pt; padding: 0in;">STEPS INVOLVED IN ORGANIZING</span></b><b><span style="border: 1pt none; color: #424142; font-size: 12pt; padding: 0in;"><o:p></o:p></span></b><br />
<b><span style="border: 1pt none; color: #424142; font-size: 14pt; padding: 0in;">Introduction</span></b></div>
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<span style="border: 1pt none; color: #424142; font-size: 12pt; padding: 0in;">A manager who is trying to organize will typically follow the following steps.</span><span style="color: #424142; font-size: 12pt;"><o:p></o:p></span></div>
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<b><span style="border: 1pt none windowtext; font-size: 12pt; padding: 0in;">Step 1. Determining the total volume of work which the firm must do</span></b><b><span style="font-size: 12pt;"><o:p></o:p></span></b></div>
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<span style="color: #424142; font-size: 12pt;">The first step in organizing is when management must identify the total work load or activities which must be performed for the business to achieve its objectives.  At this stage the manager estimates the work necessary to get the business to where it aims to be in terms of its corporate goal. This step must precede all the steps because it is only by knowing what work must be done that one is able to decide who/how many/ for how long to employ someone to get it done.<o:p></o:p></span></div>
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<b><span style="border: 1pt none windowtext; font-size: 12pt; padding: 0in;">Step 2 Creating a Departmentation (Grouping and Sub-Grouping of Activities)</span></b><b><span style="font-size: 12pt;"><o:p></o:p></span></b></div>
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<span style="color: #424142; font-size: 12pt;">After determining the total activities needed to be done to get the firm to its targets, organizing must be able to categorize the work into groups or simply putting those activities that are related into same groups. Another way to categorize the total work is to put those activities that can be easily performed together into the same group. Classifying work which are similar or related into same groups or subgroups will directly lead to the creation of departments in the firm. If we compare running a  business to putting up a building, then the creation of various department can be likened to creating rooms; each for serving a special purpose or housing a special activities, records or functions.<o:p></o:p></span></div>
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<b><span style="border: 1pt none windowtext; font-size: 12pt; padding: 0in;"> Step 3 Delegating of Authority</span></b><b><span style="font-size: 12pt;"><o:p></o:p></span></b></div>
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<span style="color: #424142; font-size: 12pt;">Next to creating departments or classifying the business activities into groups is the process of entrusting responsibility of overseeing each department into the appropriate hands; (a distinct manager) who must be charged with the duty to ensure that the department functions as required.  Creating the role of managership in this way involves what we call delegation of authority to each departmental head who must carry out specifically assigned role. <o:p></o:p></span></div>
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<b><span style="border: 1pt none windowtext; font-size: 12pt; padding: 0in;">Step 4 Dividing the Work Load within each Department</span></b><b><span style="font-size: 12pt;"><o:p></o:p></span></b></div>
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<span style="color: #424142; font-size: 12pt;">It is not often possible for a single individual to perform the entire work assigned to one department. As a result, work load within the various departments must be divided in such a way that each person or group of persons executes only one part of activities under the department. This division of work-assignment within department results is what is termed a human organization within the enterprise.<o:p></o:p></span></div>
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<b><span style="border: 1pt none windowtext; font-size: 12pt; padding: 0in;">Step 5 Providing Physical Facilities for Employees within each Departmental (Setting-Up-Material Organization)</span></b><b><span style="font-size: 12pt;"><o:p></o:p></span></b></div>
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<span style="color: #424142; font-size: 12pt;">Every one working in the firm would need some basic material facilities; raw material, technology, machines or tools regardless of the department one must work in; or the capacity in which one must work. These inputs are vital for work assigned to be done properly. Making facilities available to workers within the company will result in what is called <i>material organization</i> also sometimes known as <i>physical-technical organization</i>. <o:p></o:p></span></div>
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<b><span style="border: 1pt none windowtext; font-size: 12pt; padding: 0in;">Step 6 Defining Authority-Responsibility Relationships</span></b><b><span style="font-size: 12pt;"><o:p></o:p></span></b></div>
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<span style="color: #424142; font-size: 12pt;">Following the creation of departments, organizing materials and assigned roles to people within the firm, the organizing function must now go a step further to define who should be responsible for who. In other words, who is a subordinate and who is the superior. The process of defining responsibility or authority relationship between personnel throughout the organization ensures that the question of who answers to who is clarified. <o:p></o:p></span><br />
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<span style="color: #424142; font-size: 12pt;"><b>ALSO READ:</b></span><br />
<span style="color: #424142; font-size: 12pt;"><a href="http://www.virtualkollage.com/2017/12/levels-of-management-decision.html" target="_blank">The levels of management decision</a></span></div>
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Explaining organizing and the steps involved in organizing

ORGANIZING AND THE STEPS INVOLVED Definition of Organizing Organizing is both a process and function of management. It aims to...

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Posted by Chester Morton / Thursday, 7 December 2017 / No comments

Levels of management decision

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<b><span style="font-size: 12.0pt; line-height: 107%;">DECISION MAKING</span></b></div>
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<b><span style="font-size: 12.0pt; line-height: 107%;"><i>Definition</i></span></b></div>
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<span style="font-size: 12.0pt; line-height: 107%;">Decision making represents a process of choosing the best
alternative from among many possible options available to the manager of a business unit. A manager at any given moment of making a decision concerning the
business would first of all assess all the different alternative decisions
which the business can take. Each of these alternative decisions will be looked
at in terms of their advantages and disadvantages which are known to the
managers of the business. From this evaluation, a final decision may be arrived
at. Weighing the merits and demerits of each choice or option helps the
managers of the company to make the best decisions. <o:p></o:p></span></div>
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<b><span style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 115%;">LEVELS OF MANAGEMENT DECISION <o:p></o:p></span></b><br />
<span style="font-family: "times new roman" , serif;"><b>Introduction</b></span></div>
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<span style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 115%;">Managers are required to
make decisions at all level as part of their duties in the company. These
decisions are often organizational in nature. At the various levels of
management, the decision would reflect the general direction of the company. Long-term
decisions which affect the firm as a whole would usually be taken by the highest
levels of management. Those decisions affecting the daily operations are left
for bottom level management. However, in a properly functioning firm, all
decisions are expected to relate (directly or indirectly<a href="https://www.blogger.com/null" name="_GoBack"></a>), to the wider management functions, involving: planning,
organizing, leading, staffing and controlling. <o:p></o:p></span></div>
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<b><span style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 115%;">Board or Owner’s Level Management Decision <o:p></o:p></span></b></div>
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<span style="color: #222222; font-family: "inherit" , "serif"; font-size: 12.0pt; line-height: 115%;">Management activities are carried out
in line with the firm’s grand mission (the reason why it is created as a
business) This mission is formulated by the board or the owner of the company.
From this mission, a mission statement is written for both those who work
within the company and its external audiences. It may take several years before
a company succeeds in its mission. From this mission statement, the company
derives its vision. The vision describes an ideal state which the firm seeks to
make happen in reality.  For example, a
catering business could make becoming the first choice catering service for
wedding occasions its vision. Apart from defining a mission and vision, a
firm’s board or owners are also responsible for stating the firm’s core value.
The company’s core value are those standards on which the business will never
compromise.  <o:p></o:p></span></div>
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<b><span style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 115%;">Top Management Level Decisions<o:p></o:p></span></b></div>
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<span style="color: #222222; font-family: "inherit" , "serif"; font-size: 12.0pt; line-height: 115%;">Translating the company’s vision and mission
into real achievements over time is a decision taken at top management level.
Top management makes strategic or long term plan which must guide the decisions
that will help the company accomplish its mission and realize its vision.
Decisions taken at top management level regarding the firm’s strategy will
affect every aspect of the firm’s operation. Top management level decision
considers what the firm intends to achieve in between 1-5 years. It is
therefore top management’s decision to choose the firm’s grand strategy for
bringing the firm’s vision into reality. Often, these decisions involve planning.
Top management also have power to interfere, terminate, or completely revise
the decisions of middle level management. <o:p></o:p></span></div>
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<b><span style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 115%;">Middle Management Decision<o:p></o:p></span></b></div>
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<span style="color: #222222; font-family: "inherit" , "serif"; font-size: 12.0pt; line-height: 115%;">The overall direction which the
company must take is dependent of the decision of middle level management. This
is because middle level management must choose the smaller often short term
objectives which when put together will result in achieving the strategic goal
set by top management. Middle level management therefore formulates tactical or
short term plans; which are more detailed than the grand strategic plan decided
by top management.  Unlike strategic
plans or visions of the firm, which touches on every aspect of the firm;
tactical plans affect only a department or a section of the business such as
production, purchasing or distribution. At this level, objective could mean
some kind of measurable improvement in efficiency or quality. Middle level plans
are often made for a year or less, (a quarter, a month etc).
Middle level managers also monitor operational managers and other managers at
similar level.  <o:p></o:p></span></div>
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<b><span style="font-family: "times new roman" , serif; font-size: 12pt; line-height: 115%;">Operational Level Management Decisions <o:p></o:p></span></b></div>
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<span style="color: #222222; font-family: "inherit" , "serif"; font-size: 12.0pt; line-height: 115%;">Operational level may also be
referred to as first-line management; operational management is directly
responsible for workers. They make daily, weekly or monthly decision in the
firm’s operation with the sole aim of achieving aims proposed by middle
management level. As noted earlier decision at this level is largely
departmental or sectional (inventory, scheduling or budgeting) in its scope. <o:p></o:p></span></div>
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<b style="color: #222222; font-size: 12pt;">ALSO READ:</b><span style="color: #222222; font-size: 12pt;"> </span></div>
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<a href="http://www.virtualkollage.com/2017/11/-the-definition-and-importance-of-definition-making.html" style="font-size: 12pt;" target="_blank">The meaning and definition of decision making</a></div>
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<a href="http://www.virtualkollage.com/2017/11/-steps-in-decision-making-process.html" target="_blank">Steps in the decision making process</a></div>
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Levels of management decision

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Levels of management decision

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