ORGANISING

AND
ENTREPRENEURING
JOSLINE LOBO

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ORGANISING :
Organising refers to the “process of creating a structure
for the organisation that will enable its people to work
effectively towards its vision, mission and goals”.

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NATURE OF ORGANISING:
• Division of work :
This is the basis of an organisation. Under this the entire
work of business is divided into many departments. The work of
every department is further sub-divided into sub-works.
• Coordination :
Organisation ensures that the work of all persons depends
on each other’s work even though it happens to be different.
Hence , it helps in establishing coordination.
• Plurality of Persons:
Organisation is a group of many persons who assemble to
fulfil a common purpose .

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NATURE OF ORGANISING :
Common Objectives:
There are various parts of an organization with different
functions to perform but all move in the direction of achieving a
general objective.
• Well-Defined Authority and Responsibility :
Under the organisation a chain is established between
different posts right from the top to the bottom. In other words,
authority is given for the efficient work performance and it also
decides what will be the responsibility of that individual in case
of unsatisfactory work performance.
• Organisation is a structure of Relationship :
Relationship between persons working on different posts
in the organisation is decided.

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NATURE OF ORGANISING:
• Organisation is a machine of management:
Organisation is considered to be a machine of
management. It is that machine in which no part can afford to
be ill-fitting or non-functional.
• Organisation is a universal Process:
It is needed both in business and no-business
organisations where two or more people work jointly.
Therefore organisation has the quality of universality.
• Organisation is a dynamic process:
Organisation is related to people and the knowledge and
experience of the people undergo a change. Thus,
organisation is not a process that can be decided for all times
to come but it undergoes changes according to the needs.

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PRINCIPLES OF ORGANISING

• Unity of Objective: Every part of the organisation and the

organisation as a whole should be geared to the basic
objective determined for the enterprise.
• Efficiency : The organisation should be able to attain the
predetermined goals and objectives at the minimum cost. If it
is does so, it will satisfy the test of efficiency.
• Span of Management : It is widely recognised that a manager
can directly supervise only a limited number of executives.
• Division of work : A good organisation should consist of
departments established to reflect the most efficient
breakdown of enterprise activities.

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PRINCIPLES
• Functional Definition : The duties and the authority
relationships in a good organisation must be properly and
clearly defined, so that there is no confusion or overlapping.
• Scalar Principle ( Chain of Command ) : The chain of
command or the line of authority must be clearly defined for
building sound organisation.
• Exception Principle : A good organisation is so arranged that
only exceptionally complex problems are referred to the
higher levels of management and the routine matters are
dealt with by executives at lower levels. This is called
exception principle.
• Unity of command : In a good organisation, each subordinate
should have one superior command he has to obey.

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PRINCIPLES :
• Unity of Direction : There must be only one plan for a group
of activities directed towards the same end.
• Responsibility : In a good organisation, the superior is
responsible for the activities of his subordinates and the
subordinates must be held responsible to their superiors for
the performance of the tasks assigned to them.
• Authority and Responsibility: These must be co-existing in an
organisation.
• Balance: Some matters may be left to be disposed of by the
subordinates at the lower or the lowest level while some
other must be centralised and a balance between
centralisation and decentralisation should thus be achieved.

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PRINCIPLES :

• Flexibility : The organisation must avoid complicated

procedures, red – tapeism and excessive complication of
control so that it can adapt itself easily and economically to
business and technical changes.
• Continuity : The organisation must be so arranged as to
provide for the continuity of the enterprise.
• Facilitation of Leadership : The organisation structure should
be so devised that there is enough opportunity for the
management to give effective lead to the enterprise.

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SIGNIFICANCE :
The importance of organising are :
• Increases the Efficiency of Management : There is the
maximum utilisation of workers’ ability and productive
capacity of the material resources under good organisation.
• Ensures Optimum Utilisation of Human Efforts : Good
organisation brings harmony in the efforts of the employees
and the working conditions which add to the total
productivity of the enterprise.
• Helps in the Growth of Enterprise : Good organisation
contributes to the growth, diversification and expansion of all
enterprises.

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SIGNIFICANCE
• Places Proportionate Importance to the Various Activities of
the Enterprise : Organisation classifies the entire business
activities into departments. Each department is receiving
attention according to its importance it has in the
achievement of business activities.
• Facilitates Coordination : Functions and activities of the
various departments are welded together to accomplish the
enterprise goals.
• Provides Facilities for Training, Testing and Development of
Managerial Personnel : By placing the persons in different
departments, training can be imparted, as also their abilities
tested.

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SIGNIFICANCE
• Prevents Growth of Intrigues and Corruption : Unsound
organisation becomes a breeding ground of intrigues and
corruption.
• Consolidates Growth and Expansion : Organising practices
have encouraged the business enterprises to expand their size
to an ever- increasing level.
• Stimulates Creativity : Sound organisation stimulates
independent ,creative thinking and initiative by providing
well-defined areas of work with broad latitude of the
development of new and improved ways of doing things.
• Adoption of New Technology : The effectiveness of an
enterprise is measured by the reaction of staff members to
the adopting of a new technology.

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ENTREPRENEURING:

An Entrepreneur is an individual who, rather than working as

an employee, runs a small business and assumes all the risk and
reward of a given business venture, idea, or good or service
offered for sale. This process is called as Entrepreneuring.

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NATURE OF ENTREPRENEURING:
• Determination to succeed:
Entrepreneurs are determined towards achieving success as
growing their venture. They set a clear picture to achieve their desired
target and stay focussed, irrespective of hurdles in their way to success
• Independence:
Entrepreneurs are independent persons who like to be “ decision
makers “ rather than being “decision implementers ”. They prefer to
initiate with their own effort. They feel comfortable with profits or
even losses arising out of their own decisions.
• Risk-Taking :
Entrepreneurs never step back while taking a chance of risk.
They make a sincere and honest attempt to ensure that even eventual
result is favourable instead of leaving the things on fate.

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• Ability to Control :
In case of dealing with the post – establishment issues of
any venture, entrepreneurs do not depend on their destiny. They
have the ability to alter the socio-economic setting of their
enterprise , in order to control their impacts.
• Perseverance:
This is the most demanded quality in entrepreneurs. Once
they commit a goal, they put their best efforts to accomplish it.
They look after all the concerned issues related to the venue by
their self.
• Flexibility:
Entrepreneurs show flexibility in their decisions. The
merits and demerits of each entrepreneurial decision are
analysed by ideal entrepreneurs and required changes are
applied in accordance with prevailing conditions.

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• Analytical ability of Mind :
Personal preferences are not entertained by entrepreneurs .
They prefer to analyse the given environmental conditions and
proceed as per the situation. Generally, they think logically instead of
getting involved emotionally.
• Confronting Uncertainty:
Optimistic approach enables an entrepreneur to deal with
uncertainties. They treat every uncertain condition as an opportunity
to them. They are known to complete the given work even under odd
conditions.
• Stress Takers :
They have the ability to face all the difficult situations and take
corrective actions against them. Along with performing for extended
hours , entrepreneurs resolve variety of complications. They deal with
both psychological and physical stress in operating their enterprises.

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• Innovative and creative:
They think unique and better to become successful and
different from the crowd. They generate new thoughts and ideas
to develop new products and services, or new suppliers in order
to establish a new market or redesign the organisation.
• Ability to Mobilise Resources:
An entrepreneur possesses the ability to exploit all its
maximum. It is important for an entrepreneur to make available
the required resources and mobilise them efficiently.
• Leadership :
It means to organise a group of people to achieve a
common goal through proper communication. Leadership
qualities found in an entrepreneur include team work, shared
target, huge admires, accurate guidance and responsiveness
towards co-workers.

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SCOPE OF ENTREPRENEURING
Following are the scope of entrepreneurs :
• Entrepreneurship in Large Organisations : There is a variety
of stimulating and profit-making entrepreneurial
opportunity in large organisations as product or service
innovation. Another significant opportunity for
Entrepreneurship in large organisations may be during the
process of turnaround which involves re-designing and
structural changes within the organisation or a business
unit.
• Private Equity Financing _ Venture Capital and Leveraged
Buyouts :
Venture capital is a financial capital provided to start-up
companies for their growth and survival till the company
comes up with an initial public equity.
Leverage- Buyout is the process of acquiring the whole
company, by capitalising bearable equity.
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SCOPE OF ENTREPRENEURING
• Social Entrepreneurship : It is an effort to utilise
Entrepreneurial business methodologies to provide
appropriate solutions to social issues, in both profit
and non-profit economic sectors. This is an attempt to
enhance social benefits in different fields like
education, health, environment, workforce
development and international development.
• E-Commerce Entrepreneurship : E-Commerce
Entrepreneurs are persons who start their business via
Internet by applying some innovative techniques. The
development and executon of E-Commerce
Entrepreneurship helps to create new market for
internet users.

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SCOPE OF ENTREPRENEURING
• Small Business Manager : This is one of the many scope of
Entrepreneurs. Small business manager are also entrpreneurs, since
they manage and monitor all area of their business from inventory
management, to marketing of goods and staffing of resources. The
managers also have the authority to develop and apply different
creative and new ideas for the betterment of the business. So they
should have comprehensive knowledge of accounting, book
keeping, sales and marketing as they need to manage each of these
departments.

• Business Consultant : With the changing business environment, all

business need to think differently than usual. Business consultants
are the individuals who help the business leaders and managers to
generate and apply new ideas for achieving goals of the business.
These business consultants have the quality of entrepreneurship to
deal with different organisational issues.

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TYPES OF ENTREPRENEUR
The types of entrepreneurs can be classified on different
grounds, which are as follows:
1. According to Functional Characteristics :
• Innovative Entrepreneur : These entrepreneurs have the
ability to think newer, better and more economical ideas of
business organisation and management. They are the
business leaders and contributors to the economic
development of a country.
• Imitative or Adoptive Entrepreneur: These entrepreneurs
are people who follow the path shown by innovative
entrepreneurs. They imitate innovative entrepreneurs
because the environment in which they operate is such that it
does not permit them to have creative and innovative ideas
on their own.

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TYPES OF ENTREPRENEUR
• Fabian Entrepreneur :Fabian entrepreneurs are those
individuals who do not show initiative in visualising and
implementing new ideas and innovations wait for some
development which would motivate them to initiate unless
there is an imminent threat to their very existence.
• Drone Entrereneur : Drone entrepreneurs are those
individuals who are satisfied with the existing mode and
speed of business activity and show no inclination in gaining
market leadership. In other words, drone entrepreneurs are
die-hard conservatives and even ready to suffer the loss of
business.

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TYPES OF ENTREPRENEUR
2. According to the Types of Business:
• Business Entrepreneur : These are the individuals who dream about a
completely different product or service and try to convert that notion into
reality by establishing a business enterprise.
• Trading Entrepreneur : They do not manufacture but purchase the
product from the manufacturer and sell it to customers through retailers
or directly.
• Industrial Entrepreneur : These are manufacturers or producers who
analyse the market demands and needs of the of the consumers and
produce goods and services to satisfy these needs.
• Corporate Entrepreneur : These are who have the capabilities to organise
and manage a corporate enterprise.
• Agricultural Entrepreneur : They are skilled and experienced to manage all
related activities of agriculture such as acquiring land, crops cultivation,
arranging fertilisers, technologies used etc.
• Retail Entrepreneur : These directly sell all kinds products to the
consumers or retail buyers.
• Service Entrepreneur : They are belonging to the service sector .They are
engaged in delivering all types of services to the customers.

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TYPES OF ENTREPRENEUR

3. According to Technology Used :

• Technical Entrepreneur : They are similar to craftsman. They
possess craftsmanship ability to create new and improved
products in all technical aspects .they apply all innovative
abilities for production of goods and services.
• Non- Technical Entrepreneur : They are not related with the
technical activities of production. They concentrate on
designing marketing strategies for the effective distribution
and promotion to boost up the sale of the product or services.
• Professional Entrepreneur :These are people who start-up
business enterprises but do not run or manage the business.
They sell their enterprise and proceed with establishment of
another such business enterprise.

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TYPES OF ENTREPRENEUR

4. According to Growth :
• Growth Entrepreneur : They certainly choose the business
enterprise with high growth prospects. This enables entrepreneurs
to sustain and expand their business in future.
• Super- Growth Entrepreneur : They have experienced extensive
growth in the business are known as Super- Growth Entrepreneurs.
High rate of profitability, capital gearing and liquidity of funds
determine the growth and status of enterprise.
5. According to Area :
• Urban Entrepreneur : They belong to urban areas and establish
their business in the same location to avail the location advantages.
• Rural Entrepreneur : They are usually involved trading or
agricultural activities. They belong to rural areas and establish their
business in the same location.

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TYPES OF ENTREPRENEUR
6. According to Gender :
• Men Entrepreneur : The male individuals involved in establishing
and managing entrepreneurial enterprises are called Men
Entrepreneurs.
• Women Entrepreneur: The female individuals involved in
establishing and managing entrepreneurial enterprises are called
women enterprises.
7. According to Level of Motivation :
• Pure Entrepreneur : They are those individuals who are attracted to
establish a business enterprise because they are really interested in
doing so. They choose the path of self-satisfaction.
• Induced Entrepreneur : These are those people who get attracted
to the incentives and assistances provided by the government for
entrepreneurship.

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TYPES OF ENTREPRENEUR
8.According to the Capital Ownership :
• Private Entrepreneur : Private Entrepreneur is a person or a group of
persons, engaged in starting a new venture, arranging the sources of
finance, implementing modern technologies in it and taking risks to gain
profit.
• State Entrepreneur: When the Government or state undertakes any
entrepreneurial project, then they are known as state Entrepreneurs.
• Joint Entrepreneur : When private and state entrepreneurs combine
together to form a business enterprise , then it is called as Joint
Entrepreneurs.
9.According to the Entrepreneurial Activity :
• Novice Entrepreneur : The one who starts his enterprise for the first time
is called a novice Entrepreneur.
• Serial Entrepreneur : The person who starts with one enterprise but in
course of time heads many enterprises producing different products is
called Serial Entrepreneur.
• Portfolio Entrepreneur : They run several entities. They enjoy diversity in
their business and are eager to grab new opportunities.

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FUNCTIONS OF ENTREPRENEURING
• Idea Generation : It is the process of building new ideas, bringing
out the idea into an innovative way, developing the process and
converting the idea into reality.
• Determination of Objectives : The main function of entrepreneur is
to define the objectives of business. They should be laid-down
clearly. They should specify few things in a clean manner : The
business nature and business type.
• Fund Raising : Finance is the life-blood of any business. It is the
function of the entrepreneur to arrange the sources of funds for
business.
• Procurement of Raw Materials : The acquisition of quality raw
materials is also one of the functions of the entrepreneur.
Entrepreneur must recognise and allocate economical and constant
supply of raw materials.
• Procurement of Machinery : The function is to obtain the
machinery and equipment required for the production of goods and
services.

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FUNCTIONS OF ENTREPRENEURING

• Market Research : Market research refers to process of gathering relevant

information about products, customers and target markets. The
information about a product must include demand and supply of a
product, price and size of the target market etc.
• Determination of Ownership : There are mainly four forms of ownership
that is, sole proprietorship, partnership, joint stock company and
cooperative society. The legal title of assets is obtained on the basis of
ownership by the entrepreneurs.
• Recruitment of Manpower : An entrepreneur is responsible for the
manpower planning of the organisation. During the recruitment
procedure, an entrepreneur has to function on following activities :
a ) Manpower forecasting
b ) Outlining of selection process.
c ) Formulating Scheme of compensation.
d ) Defining the rules of training and development.
• Project Implementation : Entrepreneur has to prepare a detailed plan for
execution of the project. It is a time bound process.

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 ENTREPRENEUR Vs. MANAGER
Basics of Difference Entrepreneur
The main motive of an entrepreneur is to start
1. Motive a venture by setting up an enterprise. He
understands the venture for his personal
gratification.
2.Status An entrepreneur is the owner of the
enterprise.
3.Risk-bearing An entrepreneur being the owner of the
enterprise assumes all risks and uncertainty
involved in running the enterprise.
4. Rewards The reward an entrepreneur gets for bearing
risks involved in the enterprise is profit which
is highly uncertain.
An entrepreneur needs to possess qualities
5. Qualification and qualifications like high achievement
motive ,originality in thinking, foresight, risk-
bearing ability.
Entrepreneur himself thinks over what and
6. Innovation how to produce goods to meet the changing
demands of the customers. Hence, he acts as
an innovator also called a ‘change agent’
Manager
The main motive of a manager is to
render his services in an enterprise
already set up by someone else i.e.,
entrepreneur.
A manager is the servant in the
enterprise owned by the
entrepreneur.
A manager as a servant does not bear
any risk involved in the enterprise.
A manager gets salary as reward for
the services rendered by him in the
enterprise. Salary of a manager is
certain and fixed.
A manager needs to possess distinct
qualifications in terms of sound
knowledge in management theory
and practice.
But, what a manager does is simply
to execute the plans prepared by the
entrepreneur.
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THANK YOU

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