Breakeven analysis is a simple calculation, yet it's valuable to managers because it points out the relationship between revenues, costs, and profits. To compute breakeven point (BE), a manager needs to know the unit price of the product being sold (P), the variable cost per unit (VC), and total fixed costs (TFC). An organization breaks even when its total revenue is just enough to equal its total costs. But total cost has two parts: fixed and variable. Fixed costs are expenses that do not change regardless of volume. Examples include insurance premiums, rent, and property taxes. Variable costs change in proportion to output and include raw materials, labor costs, and energy costs.
The breakeven point can be computed graphically or by using the following formula:
This formula tells us that
(1) total revenue will equal total costs when we sell enough units at a price that covers all variable unit costs and
(2) the difference between price and variable costs, when multiplied by the number of units sold, equals the fixed costs.

Formula

Break even= total fixed cost / Price- Variable cost
Total fix cost divided by price minus variable cost

Divides work to be done into specific jobs and departments
Assigns tasks and responsibilities associated with individual jobs
Coordinates diverse organizational tasks
Clusters jobs into units
Establishes relationships among individuals, groups, and departments
Establishes formal lines of authority
Allocates and deploys organizational resources

work specialization to describe the degree to which tasks in an organization are divided into separate jobs. The essence of work specialization is that an entire job is not done by one individual but instead is broken down into steps, and each step is completed by a different person. Individual employees specialize in doing part of an activity rather than the entire activity.

Centralization describes the degree to which decision making is concentrated at a single point in the organization. If top managers make the organization's key decisions with little or no input from below, then the organization is centralized. In contrast, the more that lower-level employees provide input or actually make decisions, the more decentralization there is.

A job specification:
states the minimum qualifications that a person must possess to perform a given job successfully. It identifies the knowledge, skills, and attitudes needed to do the job effectively. Both the job description and specification are important documents when managers begin recruiting and selecting.

On the other hand, if HR planning shows a surplus of employees, management may want to reduce the organization's workforce through decruitment.

Selection is an exercise in prediction. It seeks to predict which applicants will be successful if hired. Successful in this case means performing well on the criteria the organization uses to evaluate employees. In filling a sales position, for example, the selection process should be able to predict which applicants will generate a high volume of sales; for a position as a network administrator, it should predict which applicants will be able to effectively install, debug, and manage the organization's computer network.

Legitimate power and authority are the same. Legitimate power represents the power a leader has as a result of his or her position in the organization. People in positions of authority are also likely to have reward and coercive power, but legitimate power is broader than the power to coerce and reward. Because of their legitimate power, when school principals, bank presidents, or army captains ask for something to be done, teachers, tellers, and lieutenants listen and usually comply.

Coercive power is the power that rests on the leader's ability to punish or control. Followers react to this power out of fear of the negative results that might occur if they do not comply. As a manager, you typically have some coercive power, such as being able to suspend or demote employees or to assign them work they find unpleasant or undesirable.
Reward power is the power to give positive benefits or rewards. These rewards can be anything that another person values. In an organizational context, that might include money, favorable performance appraisals, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories.

Expert power is influence that's based on expertise, special skills, or knowledge. As jobs have become more specialized, managers have become increasingly dependent on staff "experts" to achieve the organization's goals. If an employee has skills, knowledge, or expertise critical to the operation of a work group, that person's expert power is enhanced. For instance, in many organizations, individuals who have good computer skills and are seen as "experts" when computer problems arise have the ability to influence because of their knowledge and skills

We can use two very different metaphors to describe the change process. One metaphor envisions the organization as a large ship crossing a calm sea. The ship's captain and crew know exactly where they're going because they've made the trip many times before. Change comes in the form of an occasional storm, a brief distraction in an otherwise calm and predictable trip. In the other metaphor, the organization is seen as a small raft navigating a raging river with uninterrupted white-water rapids. Aboard the raft are half a dozen people who have never worked together before, who are totally unfamiliar with the river, who are unsure of their eventual destination, and who, as if things weren't bad enough, are traveling at night. In the white-water rapids metaphor, change is a natural state, and managing change is a continual process. These two metaphors present very different approaches to understanding and responding to change.