Chapter 2 Synthesis

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SYNTHESIS IN CHAPTER 2

Manuta, Jasper BSHM 4B

A company's organizational structure is a key question for an entrepreneur and a


major factor in the success of the business. Organizational theories can help you
address business issues successfully by highlighting specific organizational problems
and how a suitable structure can deal with them. Organizational theory is the
sociological study of the structures and operations of social organizations, including
companies and bureaucratic institutions. Organizational theory includes the analysis of
the productivity and performance of organizations and the actions of the employees and
groups within them. A business is defined as an organization or enterprising entity
engaged in commercial, industrial, or professional activities. Businesses can be for-
profit entities or non-profit organizations. Business types range from limited liability
companies to sole proprietorships, corporations, and partnerships. Well-defined
terminology can help people across various industries communicate more efficiently.
Good terminology work reduces ambiguity and increases clarity, which makes it an
important factor in quality.

The nature of management is described in its ability to get people to work together
in order to accomplish specific goals and objectives through the use of resources to
achieve efficiency and effectiveness. The basic principle in management is the ability to
guide people through processes within the organization in order to achieve specific
goals. Scholars argue that people are what make an organization and thus it is
impossible to talk about organizations without looking at people. To manage these
people and resources, therefore, requires the ability to plan, control, organize, staff and
lead in order to achieve efficiency. Over the years, a number of theories have been
advanced on how to manage people. Classical theories emphasized that specifically
designed formal structures and a consistent, rigid organizational network of employees
are most important in having an organization running well and achieve its goals. Thus
these theories looked at employees holding specific jobs and being guided on what to
do.

A small-business owner typically juggles everything at first. If everything goes well,


the company will grow and become more demanding. All of its parts must be arranged
in some way to function as a unified whole, but how? Since the Industrial Revolution,
theorists have been identifying and studying elements that influence organizational
effectiveness. Structure, management, employees, work processes, and the business
environment are examples of these. Aside from that, business organization theory
provides ideas on how to best align these organizational elements. Theory can help a
small-business owner improve the operations of his or her company. The author
concludes that organizational theory is complex and demanding as put forward by a
number of scholars. A number of issues come into mind when looking at it.
Management of people, resources, the structure and design of organizations, all these
are part of the organizational theory.

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