Handling a business organization can be very complex to some individuals, but the truth is- it really isn’t. It’s quite simple when you think of it. However, we are here to save the day and make your lives easy. Let’s look into what main decisions that has to be made in a business organization in order to be successful.

Plan and organize the organization

Plan and organize the goals, missions, and visions of the business. This will help the business and all its departments and the individuals in the organization to work towards the same one goal. This requires the formalization process of all of the business functions such as business IT support, Human Resource Information System and Business Processing. This is vital in an organization, because this avoid disputes between different functions that are interrelated.

Decide whether labor or capital intensive production line

Labor intensive is the production involved more labor than machines and capital intensive is when the goods and services are produced by machines with little no. of laborers in the production line. The general thinking would be that capital intensive is always the best because it’s productive and efficient. However, the productivity and efficiency of each depends on the industry. If the organization in consideration is in the tertiary sector, such as: restaurant then being capital intensive is impractical. Whereas, it is prominent to be capital intensive if the organization is in the secondary sector such as a car producer.

Maintain good communication in the organization

Good communication is vital in any organization as miscommunication cause the business to lose goal congruence. Especially if the company has branches in different cities or countries, the communication should be maintained. Nowadays there is no hassle to communicate such as travel all the way to a far destination for a meeting, whereas now it’s just a video conferencing call with the directors or managers and the matters are discussed.

Outsource non-core activities of the organization

Outsourcing is when a business activity is carried out by another business. It is not a must, however it is always better to not waste time and resources in non-core activities such as: Shared Services, customer care, etc. so the managers can focus on the core activities and bring up new ideas and innovations to make the business successful.