ASSIGNMENT # 5

FALL SEMESTER (2006)

TOTAL MARKS 10
MARKS OBTAINED /10

INSTRUCTIONS

1. You are allowed to consult the online material in preparation of this assignment.
2. Do not copy and paste. Copy and pasted material from any source will be
awarded zero marks.
3. Please use a 12-point font in Times New Roman.
4. Assignments will be graded on content (missing important information/details),
and grammar (writing style, misspelled words, subject/verb agreement, awkward
phrases, sentence/paragraph length, coherence, word choice.
5. Late assignments will not be accepted.
6. Plagiarism will never be tolerated. Plagiarism is the use of direct quotations
without identifying them as such or the summarizing or paraphrasing of other
quotations. If you do not specifically identify the source of ideas other than your
own, you are plagiarizing.
QUESTION

The new venture will require major organizational structural changes to turn that venture
in to a successful large organization. Please describe those changes in your own words.

SOLUTION
In first phase of the venture the organization is to be handled by a single person but as the
time passes and the organization starts expanding the new structural changes are required.
Authorities are to be granted to some other persons in the hierarchy of the organization

Generally, the design of the initial organization will be simple. In fact the entrepreneur
may find that he or she performs all functions of the organization alone. This is common
problem and significant reason for many failures. The entrepreneur may think that he or
she can handle everything and is unwilling to give up responsibility to others or even
include others in the management team. In most cases the entrepreneur will find it
difficult to make new venture successful and to turn that business from start up to a well
managed and growing organization. Regardless of whether there are one or more
individuals involved in the startup, as the work load increases, the organizational
structure will need to expand to include additional employees.

For many new ventures, predominantly part time employees may be hired. Organization
has to define some rules and major activities which are important to operate organization
effectively.
The entrepreneur will define new organizational structure, planning, measurement and
evaluation schemes, rewards systems, selection criteria and training programs. Means as
the organization starts growing, new rules and procedures are to be defined to make it
successful.