The document discusses the process by which an entrepreneur establishes an organization to solve problems in society. It describes how an entrepreneur begins with an idea to address a societal issue and attracts like-minded individuals to help realize the solution. As more people join, specialized teams or functions are formed to handle different aspects of the growing business, such as marketing, research and development, production, and human resources. The organization expands based on need to better achieve its goal of serving society through the work of all employees.

1. Observation Made By: Kranthi
Observation Date: Ongoing
Concept made by: Kranthi
Document made by: Kranthi
Document prepared date: 18SEP13
Entrepreneur
Organization
Problems in the society
Solution
Group of people
Functions
Employees
Solutions to the
Problems in the society
The distance between
Entrepreneur and
Employees shall be as
less as possible i.e.
thoughts of
entrepreneur shall be
realised by employees
and those shall be
clearly known to them.
The distance between
Entrepreneur and
Society/ Customers shall
be as less as possible
i.e. problems of
customers shall be
understood and right
solution shall be given.

2. i.e.
By observing the problems in the society, someone (may not everyone) will
get a thought to solve/ improve.
That thought. If realized gives a solution.
If the solution is liked by many, it gives raise to an entrepreneur.
If the entrepreneur is passionate to continue finding solutions, he needs
support. Support of people, money, time.
“Out of interdependency raises the need of another persons.”
So people with similar thoughts will join.

3. How it moves from Problem – Solution!
May not everyone observe…
May not everyone who observe, identifies…
May not everyone who identifies, will think of a solution…
May not every one who think of solution, will have knowledge
to realize..
May not everyone who has knowledge has enough time or
money or courage to realize..
It takes time, knowledge, courage, passion, money
to give a solution for the identified problem.

4. • As one by one joins the team... It becomes tough to handle the team alone i.e. by
one person.
• So he/she selects the best person from the team whom he/ she can be in touch
with directly and asks him to handle the group.
• As the team size increases, the need of another person who can handle the group
rises... And so on. That’s how with raise in business requirements, functional
areas will be formed i.e. teams will be named as functions. With further raise,
each function will have different teams.
• As the no. of people/ human resources increase, the need to take care of human
related issues will raise.
Single Entrepreneur to Group of Employees of functional departments....

5. Actually the expansion of the team is nothing but expansion of the mind, heart,
limbs of the entrepreneur (MD).
Because all the team that he accept to join with him is with a purpose that, as he can
not or not able to handle all the works to be done, inspite of him he has appointed
another group.
What is expansion of team?

6. • Marketing is like the legs, eyes, ears i.e. to move to different places of
this world, observe, listen; and mouth i.e. to communicate on the
products/ solutions we develop.
• R&D is like brain to think of a solution, hands to realize the thought
When the entrepreneur focuses on finding solutions....

7. • Marketing is like the legs, eyes, ears i.e. to move to different places of
this world, observe, listen; and mouth i.e. to communicate on the
products/ solutions we develop.
• Production is like hands to replicate the products developed based on the
customer requirements.
When the entrepreneur focuses on Business Development....

8. • HR is like extended heart of the entrepreneur/ MD.
– While selecting a person
– While training a person
– While parting from the person.
– While communicating with the person
As MD can not find enough time to handle those issues which he shall handle
with heart/ emotionally, those are to be handled by another team who is
called extended heart of MD, which is HR Team.
When the entrepreneur focuses communicating with ones own team....
HR is like extended heart of the entrepreneur/ MD.

9. • Quality is like the breath, which shall be in the
conscious and subconscious thoughts of every employee
of his team.
When the entrepreneur focuses improvement in the existing systems....

10. • And once the solution is identified, individual cannot be able to make it in lot i.e. as per the numbers needed
for the people.
• So he needs the help of manufacturing team, where that team makes multiple copies of the idea/ solution he
has made. (Just like Xerox).
• Multiple ideas may be developed, where he needs the support engineers like him where technical support can
be obtained to realize the thought quickly. So R&D will be formed.
• As the team increases, space for organizing the people and infrastructure is needed, and to handle people and
communication among them support of a team like HR is needed to maintain cordial atmosphere.
• When the products are selling good and they can be sold in international market also, need of an international
certification like ISO may arise, which gives raise to concept of testing and QC/QA.
• After selling the solution, if there is any problem, someone shall resolve the problems at customer site. So
another group which we call as customer support may be needed.
Why organization gives jobs? Cntd.

11. Why organization gives jobs? Cntd.
• This is how based on the need, the teams will be added in the
organization.
• Where CEO has objective to serve society and improve living conditions of
people using all the engineers in his team.
• A team is like human body. Brain is the objective we shall achieve and
departments are like the other parts of the body working towards
achieving the goal.
Organization has a need to search for people for jobs to support their
objectives.

12. Dependence, Independence, Interdependence

13. Thankyou 
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