Working within an Organization - Business Decision Making - ثاني ثانوي

Chapter 6 Decision-Making Processes in Organizations All businesses, government agencies, and organizations have their own unique culture. This typically develops as the business grows over time and is influenced by the organization's leadership and key employees. The organizational system describes the roles different people have within the organization, and how these roles relate to one another. For instance, when working within an organization it will be crucial to understand who you report to, as well as who the problem owners, decision makers, and other stakeholders are. As a member of the organization you must operate within this structure and, if you want to be effective, sell your ideas and solutions to others. To do this you'll need to have a sound understanding of the problem, but also of the causes of the problem. You'll need to understand how best to communicate your ideas and the appropriate chain of command to follow. People who work successfully within the organizational structure earn the respect of others and know how to develop LEARNING OBJECTIVES Once you have completed this chapter, you should be able to: Understand the organizational system 1 2 Learn about working with problem owners and stakeholders 3 Use problem-solving techniques and adapt to new problems 4 5 وزارة التعليم Ministry of Education 2024-1446 Apply root-cause analysis techniques to determine the causes of problems Understand the importance of implementing ethical solutions Business Decision Making S1 S2 S3.indb 155 Decision-Making Processes in Organizations 155 30/06/2023 14:28

156 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 156 ethical solutions. They also negotiate conflicts and contribute to difficult decisions with tact and ease. Working with the organizational culture will help advance your career and make your day-to-day work life run more smoothly. 30/06/2023 14:28

Lesson 1 Chapter 6 www.ien.edu.sa Working within an Organization 1-1 The Organization as a System Every organization has a system for performing tasks, assigning resources, and rewarding accomplishments. Documents such as company handbooks and employee manuals describe parts of the system, such as how to earn vacation time. Organizations are also highly structured, so employees and managers know what their responsibilities are, who they work for, and who works for them. There are several different ways that organizations can be structured, depending on the type of work being done and the organization's unique goals. Usually, an organization will give one or more workers the authority to direct the work of other, more junior employees, or to make important decisions about how the business should be run. These workers are called managers, and they are often organized into a hierarchical structure. Another common factor in an organization is the importance of measuring performance. This could be how well a product is selling, how many people visit the company's Web site or how efficiently an employee does their job. Employee performance is monitored closely (see Figure 6-1): targets are set and rewards (or sometimes punishments-known as disciplinary action) are issued by manag- ers. An employee will also want to think about their own career and the connec- tion between the goals of their organization and their own personal ambitions. Another part of the system is rarely defined in writing. This part is called the tacit culture-the customs, attitudes, and practices that make a company unique. وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 157 DEFINITION Tacit culture: The customs, beliefs, values, and patterns of behavior of the people of a country or organization. 1-2 Characteristics of Organizations Organizations have certain characteristics that help explain how they operate. These aspects may be different from one business to another. When you start a Decision-Making Processes in Organizations 157 30/06/2023 14:28

A manager appraises the performance of an employee. The employee will try to meet KPIs, to benefit the organiza- tion and advance his career. 158 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 158 new job, you will probably notice these differences. It's a good idea to learn how to identify them so you can fit in quickly, be a better employee, and earn rewards that may help to develop your career. FIGURE 6-1: Managers help workers set goals and monitor performance Some organizational characteristics are: 1. Organizational structures When you start a new job, particularly early in your career, you may join at the "bottom" of an organization-this is called an entry-level job. As you gain more experience, there may be opportunities to move up through the company's organizational structure. DEFINITION Organizational structure: The structure of an organization, explaining job classifications, and the reporting relationships among the organization's personnel. An example of an organizational structure is the hierarchical structure (see Figure 6-2). This is the most common structure found in business organizations, where the chain of command goes from the top-for instance, a CEO or company director-down through various levels of authority. In a hierarchical structure, everyone "above" you is your superior, but only the person directly connected to you is your boss (sometimes called a line manager or supervisor). Being connected to someone "below" you means that you, in turn, are their line manager. 30/06/2023 14:28

وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 159 FIGURE 6-2: A hierarchical organizational structure In a horizontal (sometimes called a "flat") organizational structure (see Figure 6-3), there are fewer "layers" of management—or sometimes none at all. In this structure, sometimes found in smaller organizations, workers may take responsibility for one area of the business, or they may share responsibilities for all areas. FIGURE 6-3: A horizontal organizational structure works best in smaller businesses Decision-Making Processes in Organizations 159 30/06/2023 14:28

A functional organizational structure (Figure 6-4) is similar to the hierarchical model, but the chart is organized not just by who is "above" or "below", but who is on which team. For example, you may be a member of the organization's marketing team, meaning you and your immediate colleagues are responsible for the promotion of the business, but are not involved with, for example, the organization's accounts (handled by the accounting team). FIGURE 6-4: A functional structure organizes workers by seniority and the job function 160 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 160 Marketing Accounting aaaa Production Sales Most companies have more than one level of management. Small compa- nies may have two or three levels. Large companies may have five or six management classifications. The levels of management in an organization can be described as a management pyramid. There are more managers at the lower levels and fewer at higher levels. The chief executive or owner who heads the business is at the top of the pyramid. Figure 6-5 illustrates the management pyramid. 30/06/2023 14:28

وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 161 FIGURE 6-5: The management pyramid Executives Middle Managers Supervisors 2. Decision making Managers are responsible for making things happen in business. They are decision makers: they determine what a company will do and how well it will perform. They choose the people and other resources needed to operate a business. Managers must ensure that ideas are turned into products and services. Managers must show strong leadership skills to motivate their workers to achieve a particular goal or objective, which often involves cooperation and collaboration. DEFINITIONS Decision maker: A person within a business, often in management, who is responsible for making key decisions or assigning tasks to employees. Leadership: The ability to influence individuals and groups to cooperatively achieve common goals. 3. Doing your job When you start a new job, you will be given a job description which explains the different tasks you have to carry out. During your induction-your introduction to the workplace, your colleagues, and the rules you need to follow-the relationship between your job and the wider goals of the organization should be explained. Your manager might inform you about your organization's Key Performance Indicators (KPIs). Your manager will also inform you that your performance will be monitored to assess how successful you are at your job-and how Decision-Making Processes in Organizations 161 30/06/2023 14:28

you are contributing to achieving these KPIs—as part of your performance appraisal. Think about how completing tasks to the best of your ability might relate to your own goals: do you want to move "up" in the organization in the future? How will your actions in your current role help you? Often, workers are also asked to perform functions outside of their regular responsibilities. It is important to remain flexible and agile, and you will sometimes be rewarded for your approach. DEFINITIONS Key Performance Indicator (KPI): A measure used to evaluate the success of an organization in achieving its planned objectives. Function: The purpose or objective of a particular job or group of jobs carried out by a team. Agility: The ability and willingness to adapt to what's happening around you and go "above and beyond" to ensure that tasks are completed on time and to a high standard. 4. Job performance and rewards REVIEW QUESTIONS If you perform well on the job, employers usually reward you with pay raises. Other rewards include commissions, bonuses, promotions, and benefits such as better office space or travel to popular destinations. Ask the human resources department how your company formally evaluates employees for instance, by setting and monitoring KPIs, conducting peri- odic appraisals, or analyzing statistics like number of sales. Request a list of the criteria in the evaluation, and then start improving your performance to meet those criteria. 1. An organizational structure where every worker is equal is sometimes described as: 162 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 162 a. equal b. long c. flat d. a pyramid 2. Which of the following is not a way for a company to measure your performance: a. KPIs b. job interview c. appraisal d. statistical data 30/06/2023 14:28