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ORGANIZING MANAGEMENT FOR BUSINESS EXPANSION
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Organizing an efficient management can turn a one-man business into a large scale business. Without an organization, there are distinct and rigid limitations on how far one man can go in his business. It always takes employees to grow. The difference between a local store grossing $1,000 a week and a super-market grossing $8,000 a week is often attributed to their organization. The merchant who personally unpacks shipments, stacks goods on shelves, wraps packages and acts as cashier has that much less time per day for waiting on customers. But one manager, plus an organization, can handle thousands of transactions daily. Hiring help is only part of an efficient business. They must be welded into a unified firm.
PREPARE JOB DESCRIPTIONS Having employees is not the same as having an organization. The first step in converting a relatively unorganized group of employees into a real organization is to discover what they are currently doing. The next step is to define and align their duties and responsibilities by making a job description of each employee function. When these descriptions have been written down and examined, you can assign duties on a more efficient, more logical and more equitable basis. DELEGATE AUTHORITY After redefining job functions, authority sufficient to discharge the duties should be delegated. Assigning responsibilities without delegating the powers which go with them is unfair and impractical. The supervisor who has no right to hire, fire or discipline does not have authority in keeping with his responsibility. When defining jobs and delegating authority, avoid or eliminate overlapping. A delegation is effective only if it is clear-cut and if its scope and definition are known to others in the organization. Limiting authority is as important as giving it. An executive should know how far he can go without trespassing on another's territory. Businessmen often make two errors in this field: (1) they prefer to imply rather than state authority; (2) they do not respect the boundaries they themselves have laid down. They "cut across channels" and sometimes so hurt an organization by causing resignations, frustrations, and resentment on the part of executives so treated.
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