Managing the agribusiness - Agribusiness Management - page 49

An organizational structure exists in all businesses. It might be argued that even a
one-person agribusiness has an organizational structure, with one person wearing many
organizational hats. Organizing, then, involves formalizing a plan to show the interrelation-
ships of each job and each individual within the organization ( Figure 2.3) . Such an organi-
zational structure clarifi es who reports to whom. It helps clarify who has responsibilities for
specifi c tasks. An organizational structure also helps clarify who has authority for specifi c
decisions. Finally, for new employees, an organizational chart can point to potential career
paths within the company.
An organizational chart shows the formal organizational structure of a company. It
helps capture some important ideas including division of labor, chain of command, bureauc-
racy, and organizational design.

The division of labor is the manner in which jobs are broken into components and then are
assigned to members or groups. The objective is to accomplish more by delegating
specifi c tasks to groups or individual who use specialized equipment and training, as
well as a learning curve effect to successfully and effi ciently accomplish more than can
be done by one alone.
Chain of command is illustrated in organizational structure by the authority - responsibility
relationships or links between managers and those they supervise. This continuum exists
throughout the company. The chain of command should be clear so employees know to
whom they report and are accountable.
Bureaucracy is a word with many negative connotations in today's vernacular. However,
bureaucracy was developed as a highly specialized organization structure in which work
is divided into specifi c categories and carried out by special departments. A strict set of
guidelines determines the course of activities to ensure predictability and reduce risk. A
bureaucracy is a tightly run, unyielding organizational structure. This organizational
structure does work well for some types of businesses. However, given the variability
and unpredictability of the weather and other uncontrollable circumstances, many food
and agribusinesses do not operate under this form of organizational structure, and go to
lengths to take bureaucracy out of their internal processes.

Directing
Directing is guiding the efforts of others toward achieving a common goal. It is accom-
plished by:

• Selecting, allocating, and training personnel

• Staffi ng positions

• Assigning duties and responsibilities

• Establishing the results to be achieved

• Creating the desire for success

• Seeing that the job is done and done properly

Directing involves leading, supervising, motivating, delegating, and evaluating those whom
you manage. Managers are directing when they see to it that the efforts of each individual
are focused on accomplishing the common goals of the organization. Leading is at the very
heart of the management process and is founded on a good organizational plan or structure
that provides for responsibility, authority, and evaluation.