Management Innovation 12 - Organizing for Business

PRESCRIBED LEARNING OUTCOMES

It is expected that students will:

• describe the role of entrepreneurship in the establishment of businesses
• compare various types of legal forms of business with regard to ease of formation, ability to raise capital, division of ownership and control, liability considerations, and continuity
• analyse the formal organizational structures of a range of existing businesses
• describe changes and adjustments that businesses make as they grow and develop, including diversifying, creating subsidiaries and franchises, and expanding internationally

SUGGESTED INSTRUCTIONAL STRATEGIES

• Have students interview the founding owners of various small businesses. For each business, ask them to determine:
  • how the initial idea was developed
  • the stages each owner went through to start up and operate the business
  • the existing stage of organizational structure and management functions involved
  • plans for growth, anticipated organizational changes, and the reasons for these changes
  Have students clarify the difference between entrepreneurial and managerial functions and activities.
• Ask students in groups to identify and compare various legal ownership models in terms of capital formation, management ability, and liability. Then arrange for them to visit various businesses to identify examples of each type of ownership and have the owners justify their choices. Invite students to comment on the appropriateness of each choice made.
• Arrange for students to interview management in at least two organizations with different levels of complexity. In each case, ask them to explore the organizational structure in terms of flow of communications, decision making, and authority. Have students report on the organizational functions and present organizational charts.
• Through discussion, develop a model of an evolving organization, beginning with its inception. Consider the organization's need for more resources (e.g., money, information, people) and the increasing complexity of internal and external relationships. Have students speculate on potential problems with organizational rigidity.

SUGGESTED ASSESSMENT STRATEGIES

• Ask students to identify the differences between entrepreneurial and managerial functions and activities in business. Record evidence that they can identify and distinguish between:
  • management functions related to maintaining the organization, such as planning, organizing, budgeting, and decision making
  • entrepreneurial functions such as identifying opportunities and researching, planning, and implementing strategies to realize opportunities
• When students report their findings on the organizational structures of different organizations, note the extent to which their organizational charts provide details illustrating the roles and relationships of departments or individuals in the organization. As well, check that they recognize how differences in the organizational structure affect:
  • the flow of communication
  • decision-making processes
  • authority relationships
  • the efficiency and effectiveness of the organization in achieving its objectives
• As students discuss the model of an evolving organization, note the extent to which each can identify and describe the effects of organizational rigidity and flexibility in terms of:
  • employee creativity and productivity
  • the organization's ability to meet consumer needs
  • the organization's ability to respond to changes in the marketplace

• Canadian Entrepreneurship and Small Business Management, Third Edition
• Understanding Canadian Business, Second Edition

• Competing in a Global Environment
• Establishing a Business Organization
• Responding to Change

• Fundamentals of Management: Essential Concepts and Applications, Canadian Edition

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