ORGANIZING According to Henry Fayol, “to organize a business is to provide it with everything useful or its functioning i.e. Raw material, tools, capital and personnel’s”.

ORGANIZING ORGANIZING It is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization. Decisions made about the structure of an organization are generally referred to as organizational design decisions.

Job profiles need to be identified according to the needs of the various departments within a company. The accounts department will need a cashier, just as the assembly line will require the services of supervisors and workers, both skilled and unskilled. Even before this is done, the activities themselves must be clear, accounting of pay-in slips or the steps involved in the production, all this must be ready at hand for the managers to refer to and accordingly make appointments. ORGANIZING AS A PROCESS INVOLVES: IDENTIFICATION OF ACTIVITIES The second step is to organize these varied jobs into manageable units. A good example is classifying the workers in charge of welding under a separate supervisor, or setting up a team of software engineers under a team leader. This aspect of organizing deals with the division of labor in the organization. ORGANIZING ACTIVITIES

The next step is to specify the range and breadth of the powers given to various managers and supervisors working in different departments. This is necessary for the division of responsibility and effective reporting. ORGANIZING AS A PROCESS INVOLVES: DELEGATION OF AUTHORITY Only classifying and assigning responsibility is not enough, a manager must make sure the different departments co-ordinate among themselves and recognize the powers and duties assigned to each one of them. This is vital as the smooth functioning of the whole organizational structure depends upon people learning to work together. BALANCING AUTHORITY AND RESPONSIBILITY

CONTROLLING

CONTROLLING CONTROLLING Controlling involves ensuring that performance does not deviate from standards. Controlling is a function of every manager both at lower and upper level since all have responsibility for the execution of plans.

These are criteria for performance used by managers to measure performance since managers cannot usually watch everything being done within an organization CONTROLLING CONSISTS OF THREE STEPS, WHICH INCLUDE: ESTABLISH STANDARDS This should be on a forward looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. This is through detection of probable departures from standards MEASURE PERFORMACE

Standards should reflect the various positions in an organization structure. Managers may correct deviations by redrawing their plans or by modifying their goals. They may also correct by exercising their organizing function through reassignment or clarification of duties. They may correct also by additional staffing, better selection and training of subordinate or by firing staff.-Standards set may be physical like labor hours per unit produced, may be cost standards like cost per unit produced or revenue standards like sales per customer. For control to be effective there must be real time feedback. Standards should reflect the various positions in an organization structure. Managers may correct deviations by redrawing their plans or by modifying their goals. They may also correct by exercising their organizing function through reassignment or clarification of duties. They may correct also by additional staffing, better selection and training of subordinate or by firing staff.-Standards set may be physical like labor hours per unit produced, may be cost standards like cost per unit produced or revenue standards like sales per customer. For control to be effective there must be real time feedback. IN CONTROLLING WE MUST: CORRECT DEVIATIONS

What is Quality? Performance: -A product that “performs better” than others at same function Reliability: -A product that needs frequent repair has “poor quality” Durability: -A product that has longer expected service life Aesthetics: -A product that is better looking” or “more appealing”

Definitions Quality is inversely proportional to variability Quality improvement is the reduction in variability of products/services.

PROBLEMS QUALITY CONTROL CUSTOMER SERVICE DEFECTS FAULT FLAWSZERO DEFECTS ROUTINE CHECKS MONITORING INSPECTION MINIMUM STANDARD QUESTIONNAIRE WARRANTY AFTER SALES GOODWILL PAYMENT CONSUMER SATISFACTION COMPENSATION

An organization may use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged. Sometimes success is defined in terms of making progress toward strategic goals, but often success is simply the repeated, periodic achievement of some level of operational goal (e.g. zero defects, 10/10 customer satisfaction, etc.). KPI (Key Performance Indicator)

Categorization of indicators Quantitative indicators that can be presented with a number. Qualitative indicators that can't be presented as a number. Leading indicators that can predict the outcome of a process Lagging indicators that present the success or failure post hoc

KPI (Key Performance Indicator) Categorization of indicators Input indicators that measure the amount of resources consumed during the generation of the outcome Process indicators that represent the efficiency or the productivity of the process Output indicators that reflect the outcome or results of the process activities Practical indicators that interface with existing company processes.

KPI (Key Performance Indicator) Categorization of indicators Directional indicators specifying whether or not an organization is getting better. Actionable indicators are sufficiently in an organization's control to affect change. Financial indicators used in performance measurement and when looking at an operating index.

KPI (Key Performance Indicator) Identifying indicators of organization Having a pre-defined business process (BP). Having requirements for the BPs. Having a quantitative/qualitative measurement of the results and comparison with set goals. Investigating variances and tweaking processes or resources to achieve short-term goals.

KPI (Key Performance Indicator) SMART Criteria M – MEASURABLE to really get a value of the KPI S – SPECIFIC purpose for the business A - defined norms have to be ACHIEVABLE R - RELEVANT to the success of the organization T - finally it must be TIME phased, which means the value or outcomes are shown for a predefined and relevant period.

KPI (Key Performance Indicator) Marketing Some examples are: New customers acquisition. Demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections, and pending numbers Status of existing customers Customer attrition Turnover (i.e., revenue) generated by segments of the customer population Outstanding balances held by segments of customers and terms of payment Collection of bad debts within customer relationships Profitability of customers by demographic segments and segmentation of customers by profitability

JIT (Just in Time) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. noting or pertaining to a method of inventory control that keeps inventories low by scheduling needed goods and equipment to arrive a short time before a production run begins.