6.6 Designing the Organisation

The blueprint of the preliminary organization will be straightforward.

		The entrepreneur may perhaps execute all of the jobs single-handedly.
		He or she from time to time is reluctant to offer duties to others.
		The entrepreneur may perhaps have complexities making the changeover from a start-up to a rising well-managed business that upholds its accomplishments over a lengthy episode of time.
		As the work load amplifies the organizational composition will require expanding to comprise added workers with distinct skills and functions.
		Effectual interviewing and appointing actions will need to be put into operation.
		Part-time recruits may be hired to lift commitment and loyalty issues for numerous fresh business enterprises,

The organization ought to classify the key actions mandatory to function efficiently

The design of the organization will point out to recruits what is expected of them in five areas:

Organizational structure, which defines members’ jobs and the relationship these jobs have to one another.

6.6 Designing the Organisation

			Planning, measurement, and evaluation schemes, which reflect the goals and objectives of the venture.
			Rewards, in the form of bonuses, promotion, and praise.
			Selection criteria, the set of guidelines for selecting individuals for each position.
			Training, on or off the job.

The organization’s design can be simple or complex

There are two stages of development in an organization

		Stage 1: The new venture is operated by one person, the entrepreneur, with no need for submanagers.
		Stage 2: As the business expands, the organization may be described as Stage 2.

			Submanagers are hired to coordinate, organize, and control aspects of the business.
			Measurement, evaluation, rewards, selection, and training become necessary.

A third stage may exist when the firm achieves a much larger size and a third level of managers is added.

6.6 Designing the Organisation

As the organization evolves, the manager’s decision roles become more critical

		The primary concern of the manager is to adapt to changes in the environment and seek new ideas.
		When a new idea is found, the manager must initiate development him- or herself or delegate the responsibility.
		The manager will also need to respond to unexpected pressures, referred to as “putting out fires.”
		Another role is that of allocator of resources, delegating budgets and responsibility.
		The final role is that of negotiator, as the entrepreneur can be the only person with the appropriate authority.