Professional Documents
Culture Documents
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"The simplest definition of business is you solve a customer's problem and create
sustainable profits over time. Anyone with vision should understand the problem they're
solving. The problem with business today is that people think the meaning is about building a
monument to you. The meaning of business is having an impact on people's lives."
My definition is close:
A business' purpose is to attract and keep customers. It¶s one basic function is to reliably
solve customer problems...
The etymology of "business" relates to the state of being busy either as an individual
or society as a whole, doing commercially viable and profitable work. The term "business"
has at least three usages, depending on the scope ² the singular usage (above) to mean a
particular company or corporation, the generalized usage to refer to a particular market
sector, such as "the music business" and compound forms such as agribusiness, or the
broadest meaning to include all activity by the community of suppliers of goods and services.
However, the exact definition of business, like much else in the philosophy of business, is a
matter of debate and complexity of meanings.
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Management is generally defined as the art and science of getting things done through
others. This definition emphasizes that a manager plans and guides the work of other people.
Some (cynical) individuals think that this means managers don¶t have any work to do
themselves. As managers have an awful lot of work to do. Management is the art and science
of getting things done through others, generally by organizing and directing their activities on
the job. A manager is therefore someone who defines, plans, guides, assists, and assesses the
work of others, usually people for whom the manager is responsible in an organization.
³The efficient and effective operation of a business, and study of this subject, is called
management´.
1. The group of individuals who make decisions about how a business is run.
in all business areas and organizational activities are the acts of
getting people together to accomplish desired goals and objectives efficiently and effectively.
Management comprises planning, organizing, staffing, leading or directing, and controlling
an organization (a group of one or more people or entities) or effort for the purpose of
accomplishing a goal. Resourcing encompasses the deployment and manipulation of human
resources, financial resources, technological resources, and natural resources.
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Management can also refer to the person or people who perform the act(s) of management.
: Deciding what needs to happen in the future (today, next week, next
month, next year, over the next 5 years, etc.) and generating plans for action.
: (Implementation) making optimum use of the resources required to
enable the successful carrying out of plans.
a : Job analyzing, recruitment, and hiring individuals for appropriate jobs.
: Determining what needs to be done in a situation and getting
people to do it.
: Checking progress against plans.
: Motivation is also a kind of basic function of management, because
without motivation, employees cannot work effectively. If motivation doesn't takes
place in an organization, then employees may not contribute to the other functions
(which are usually set by top level management).
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The word is derived from the Middle English word administracioun, which is in turn
derived from the French administration, itself derived from the Latin administratio ² a
compounding of ad ("to") and ministratio ("give service").
can serve as the title of the general manager or company secretary
who reports to a corporate board of directors. This title is archaic, but, in many enterprises,
this function, together with its associated Finance, Personnel and management information
systems services, is what is intended when the term "the administration" is used.
As business has become more complex, so too has the oversight of companies: their
management, their growth strategies, their personnel issues, their taxes and the role that taxes
play in corporate economic strategy. Advertising has grown to include multiple media outlets
and an assortment of targeted interest groups: new customers, repeat customers, stockholders,
investors and new geographic markets. Marketing has become the term of choice for this
entire strategically placed product exposure.
Defining business administration then means defining oversight roles for the
assortment of internal specialties that every business of any size has come to include. Perhaps
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the best way to define business administration is to look at the types of courses offered in
MBA curriculums and the specialties, or "majors," that one can opt for in an MBA program.
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Management and administration may seem the same, but there are differences
between the two. Administration has to do with the setting up of objectives and crucial
policies of every organization. What is understood by management, however, is the act or
function of putting into practice the policies and plans decided upon by the administration.
2) It also follows that administration makes the important decisions of an enterprise in its
entirety, whereas management makes the decisions within the confines of the framework,
which is set up by the administration.
3) Administration is the top level, whereas management is a middle level activity. If one were
to decide the status, or position of administration, one would find that it consists of owners
who invest the capital, and receive profits from an organization. Management consists of a
group of managerial persons, who leverage their specialist skills to fulfill the objectives of an
organization.
5) In administration, the planning and organizing of functions are the key factors, whereas, so
far as management is concerned, it involves motivating and controlling functions. When it
comes to the type of abilities required by an administrator, one needs administrative qualities,
rather than technical qualities. In management, technical abilities and human relation
management abilities are crucial.
6) Administration usually handles the business aspects, such as finance . It may be defined as
a system of efficiently organizing people and resources, so as to make them successfully
pursue and achieve common goals and objectives. Administration is perhaps both an art and a
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7) Management is really a subset of administration, which has to do with the technical and
mundane facets of an organization¶s operation. It is different from executive or strategic
work. Management deals with the employees. Administration is above management, and
exercises control over the finance and licensing of an organization.
Therefore, we can see that these two terms are distinct from one another, each with their own
set of functions. Both these functions are crucial, in their own ways, to the growth of an
organization.
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1. Management is the act or function of putting into practice the policies and plans decided
upon by the administration.
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Agricultur is the production of food and goods through farming. Agriculture was the
key development that led to the rise of human civilization; with the husbandry of
domesticated animals and plants (i.e. crops) creating food surpluses that enabled the
development of more densely populated and stratified societies. The study of agriculture is
known as agricultural science. Agriculture is also observed in certain species of ant and
termite.
Mining is the extraction of valuable minerals or other geological materials from the
earth, usually from an ore body, vein or (coal) seam. Materials recovered by mining include
base metals , iron , uranium , coal, diamonds, limestone¶s , oil shale , rock salt and potash .
Any material that cannot be grown through agriculture processes, or created in a laboratory or
factory, is usually mined. Mining in a wider sense comprises extraction of any non renewable
resource (e.g., petroleum, natural gas, or even water).Mining of stone and metal has been
done since prospecting for times. Modern mining processes involve e bodies, analysis of the
Profit potential of a proposed mine, extraction of the desired materials and finally reclamation
of the land to prepare it for other uses once the mine is closed.
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Finance is the science of funds management. The general areas of finance are business
finance, personal finance, and public finance. Finance includes savings money and often
includes lending money. The field of finance deals with the concepts of time, money, and risk
and how they are interrelated. It also deals with how money is spent and budgeted.One aspect
of finance is through individuals and business organizations, which deposit money in a bank.
The bank then lends the money out to other individuals or corporations for investment, and
charges interest on the loans.
Loans have become increasingly packaged for resale, meaning that investers buy the
loan (debt) from a bank or directly from a corporation. Bonds are debt instruments sold to
investors for organizations such as companies, governments or charities. The investor can
then hold the debt and collect the interest or sell the debt on a secondary market. Banks are
the main facilitators of funding through the provision of credit, although private equity,
mutual funds, hedge funds, and other organizations have become important as they invest in
various forms of debt. Financial assets, known as investments, are financially managed with
careful attention to financial risk management to control financial risk.
Although many of the legal principles governing intellectual property have evolved
over centuries, it was not until the 19th century that the term á
began to be
used, and not until the late 20th century that it became commonplace in the United States.
The British Statute tee 1710 is now seen as the origin of copyright and patent law
respectively.
Manufacturing is the use of machines, tools and labor to make things for use or sale.
The term may refer to a range of human activity, from handicraft to high tech, but is most
commonly applied to industrial production, in which raw materials are transformed into
finished goods on a large scale. Such finished goods may be used for manufacturing other,
more complex products, such as aircraft, automobiles, or sold to Wholesalers, who in turn sell
them to retailers, who then sell them to end users ± the ³consumers´. Manufacturing takes
turns under all types of economic system. In a free market economy, manufacturing is usually
directed toward the mass production of products for sale to consumer at a profit.
Modern manufacturing includes all intermediate processes required for the production
and integration of a product's components. Some industries, such as semiconductors and steel
manufacturers use the term fabrication instead.
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Real estate is a legal term (in some jurisdictions, such as the United Kingdom,
Canada, Australia , USA and Bahamas ) that encompasses land along with improvements to
the land, such as buildings, fences, wells and other site improvements that are fixed in
location²immovable. Real estate law is the body of regulations and legal codes which
pertain to such matters under a particular jurisdiction and include things such as commercial
and residential real property transactions. Real estate is often considered synonymous with
real property (sometimes called realty), in contrast with personal property (sometimes called
chattel or personality under chattel law or personal property law).
However, in some situations the term "real estate" refers to the land and fixtures together, as
distinguished from "real property", referring to ownership of land and appurtenances,
including anything of a permanent nature such as structures, trees, minerals, and the interest,
benefits, and inherent rights thereof. Real property is typically considered to be Immovable
property. The terms real estate and real property are used primarily in common law, while
civil law jurisdictions refer instead to immovable property.
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Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department stores, boutique, or by mail, in small or individual lots for direct consumption by
the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may
be individuals or businesses. In commerce, a "retailer" buys goods or products in large
quantities from manufacturers or Importers, either directly or through a wholesaler, and then
sells smaller quantities to the end-user. Retail establishments are often called shops or stores.
Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy. The term "retailer" is also
applied where a service provider services the needs of a large number of individuals, such as
a public utility, like electric power.
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Transport or transportation is the movement of people and goods from one location to
another. Mode of transportation includes air rail, road, water, cable, pipeline, and space. The
field can be divided into infrastructure, vehicles, and operations. Transport infrastructure
consists of the fixed installations necessary for transport, and may be roads , railways,
airways, waterways, canals, pipelines and terminals such as airports, rail stations, bus
stations, warehouses, trucking terminals, refueling depots (including fueling docks andfuel
stations), and seaports. Terminals may be used both for interchange of passengers andcargo
and for maintenance. Vehicles traveling on these networks may include automobiles,
bicycles, buses, trains, trucks, people, helicopters, and aircrafts. Operations deal with the way
the vehicles are operated, and the procedures set for this purpose ni cluding financing,
legalities and policies. In the transport industry, operations and ownership of infrastructure
can be either public or private, depending on the country and mode.
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In the social sciences, organizations are the object of analysis for a number of disciplines,
such as sociology, economics, political science, psychology, management, and organizational
communication. In more specific contexts, particularly for sociologists, the term "institution"
may be preferred. The broader analysis of organizations is commonly referred to as
organizational studies, organizational behavior or organization analysis. A number of
different theories and perspectives exist, some of which are compatible,
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In this first sense, organization is treated as a dynamic process
and a managerial activity which is essential for planning the utilization of company's
resources, plant and equipment materials, money and people to accomplish the various
objectives.
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In the third sense, organisation is very often viewed
as a group of persons contributing their efforts towards certain goals. Organization begins
when people combine their efforts for some common purpose. It is a universal truth that an
individual is unable ability and resources. Barnard has defined O
' rganization' as an
identifiable group of people contributing their efforts towards the attainment of goals.
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In the fourth sense, the organization is viewed as system.
System concepts recognize that organizations are made up of components each of which has
unique properties, capabilities and mutual relationship. The constituent elements of a system
are linked together in such complex ways that actions taken by one producer have far
reaching effect on others.
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Different authors have defined organization in different ways. The main definitions
of organization are as follows:
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Born with the enterprise are its long-life objectives of
profitable manufacturing and selling its products. Other objectives must be
established by the administration from time to time to aid and support this main
objective.
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After the objective is selected, the
management has to identify total task involved and its break-up closely related
component activities that are to be performed by and individual or division or a
department.
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When activities have been grouped according to similarities
and common purposes, they should be organized by a particular department. Within
the department, the functional duties should be allotted to particular individuals.
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The authority and responsibility should be
well defined and should correspond to each other. A close relationship between
authority and responsibility should be established.
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After assigning the duties and delegations of
authority, the establishment of relationship is done. It involves deciding who will act
under whom, who will be his subordinates, what will be his span of control and what
will be his status in the organization. Besides these formal relationships, some
informal organizations should also be developed.
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Organization is an important and the
only tool to achieve enterprise goals set b administration and explained by management.
Sound organization increases efficiency, avoids delay and duplication of work, increases
managerial efficiency, increases promptness, and motivates employees to perform their
responsibility.
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Good organization is helpful to the growth,
expansion and diversifications of the enterprise.
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A sound and well-conceived organization structure is the source
of creative thinking and initiation of new ideas.
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Organization is a vital tool in the hands of the
management for achieving set objectives of the business enterprise.
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Usually corruption exists in those enterprises which lack sound
organization. Sound organization prevents corruption by raising the morale of employees.
They are motivated to work with greater efficiency, honesty and devotion.
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Different jobs and positions are welded together by
structural relationship of the organization. The organizational process exerts its due and
balanced emphasis on the co-ordination of various activities.
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Over lapping and duplication of
work exists when the work distribution is not clearly identified and the work is performed in
a haphazard and disorganized way. Since a good organization demands that the duties be
clearly assigned amongst workers, such overlapping and duplication is totally eliminated.
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5)
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The most important element of any human organization
is the promotion of satisfaction of workers. Man works in a group or in an
organization and hence the success or failure of any organization depends on as to
how much the organization is in a position to provide satisfaction to individuals or
group working under him.
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Another important characteristic of an ideal
organization is as to how far it is successful in making fullest and economical
utilization of the available manpower.
7)
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Another important of an ideal
organization is that there exists the necessary provision for development and
expansion so that it is possible to expand and develop any organisation according to
needs and requirements and necessary changes an alternatives may be made.
8)
In order to achieve the objectives of the enterprise,
there must be close coordination and cooperation in the activities of everybody
working in the organization. Further, there should also be active coordination and
cooperation amongst the various departments an sub-departments. It will also assist in
elimination the evil of red tapism.
9) ,
There must be unity of command. No one in any organization
should report to more than one line supervisor, and everybody must know to whom he
reports and who reports to him. No subordinate should get orders from more than one
supervisor; otherwise it will lead to confusion, chaos and conflict.
10)* a
An ideal organization must possess effective
system of communication. The inter-communication system should be clear and
easier and there should be no ambiguity at and level.
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An ideal organization is that in which the workers possess high morale.
They work with full capacity, energy, enthusiasm, devotion and sincerity.
12) .
The last but not the least important characteristic of an ideal organization
is that it should be flexible so that necessary changes an modifications in the the size
of the organization as well as technology could be easily and conveniently effected.
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a
The main function is divided into sub-functions and entrusted to the different
departmental heads. The result is the establishment of departments like Purchase, Sales,
Production, Accounts, Publicity and Public relations. The departments can be further
classified just as production department into (1) Planning (2) Designing, (3) Operations, (4)
Production Control and (5) Repairs and Maintenance. The division of the work is based upon
the fact that specialization is keynote of efficient organization.
The second step is to group similar or related jobs into larger units, called departments,
divisions or sections. Grouping process is called departmentation. The department may be
based upon functions such as manufacturing, marketing and financing etc. Department may
also be based on products, such as textiles, cosmetic, stationery etc. These departments may
have different sections as per requirement. Grouping jobs or Departmentation aims at
achieving coordination and facilitates unity of efforts. The departments are linked together on
the basis of interdependence. The divided task is assigned to specific individual or group of
individuals who are supposed to be the most qualified and specialized persons for the task.
The work to be performed by every individual is clearly defined and made known to him.
Everyone must know what he is required to do in order to avoid any misunderstanding,
duplication or overlapping in the work.
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Assigning of duties to individuals must coincide with the appropriate and relevant
authorities. Every employee must know, what the authorities granted to him and for what and
to whom he will be responsible, liable and accountable.
Those who are made responsible for specific tasks are given due authority. Both
responsibility and authority go hand in hand together. Reasonable powers are delegated to
heads and supervisory staff to enable them to do their work with ease and efficiency.
*
Business activity is a team work or the group activity, so the efforts of every employee
must be co-ordinate effectively to achieve the common objectives of the enterprise.
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Static Organizations have fixed practices, fixed size. Like static equations, these
organizations have no variables. Time doesn't change them significantly. They persist until
some new organization occupies their niche.
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Dynamic Organizations have Fixed practices, variable size. Like dynamic equations,
these organizations vary in size over time, even though their underlying practices don't
change much. They go through a single life cycle, each growing rapidly as it occupies its
niche, and then declining as its competitors implement better practices that steal away its
clients.
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Variable practices, variable size. Like complex adaptive systems, these organizations
vary their practices, seeking the constant improvement that launches life cycle after life cycle,
creating new products, services, and processes that hold on to clients generation after
generation.
They will soon motivate employees to climb adaptation curves by using ISOPs to
fairly share the wealth that each innovation creates. ISOPs ensure that the innovator, the
predecessors, and each shareholder in the corporation benefits.
They will displace dynamic and static organizations in economic competition, so that
within a generation, most people will have learned to expect continual improvement in their
life experience. The fact that their ancestors once worked at the same job in the same way for
an entire lifetime will seem almost as incredible as the fact that people used to stay at jobs
they didn't thoroughly enjoy.
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& should be structured according to the needs of the owners and
potentially liability that the business could incur. The different types of business ownership
are:
1) Limited Partnerships
2) A Corporation
5) Nonprofit Corporations
6) Cooperatives
7) Private Corporation:
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Limited partnerships are costly and complicated to set up and run, and are not
recommended for the average small business owner. Limited partnerships are usually created
by one person or company, the "general partner," who will solicit investments from others--
who will be the limited partners.
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The general partner controls the limited partnership's day-to-day operations and is
personally liable for business debts (unless the general partner is a corporation or an LLC).
Limited partners have minimal control over daily business decisions or operations and, in
return, they are not personally liable for business debts or claims. Consult a limited
partnership expert if you're interested in creating this type of business
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The most significant benefit to forming a corporation is that it limits the owners'
personal liability for business dents and any court judgments against the business. A
corporation is an independent legal and tax entity. This sets it apart from other types of
businesses. The owners do not use their personal tax returns to pay tax on corporate profits
because the corporation itself pays these taxes. Any money drawn from the corporation in the
form of salaries, bonuses, etc is paid by the owners in their personal income tax returns.
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Limited Liability Corporations provide their owners just that, limited personal
liability for business debts and claims. However, LLCs resemble partnerships when it comes
to taxes. The owners of an LLC pay taxes on their shares of the business income on their
personal tax returns. This type of organization is good for business owners who either Could
be sued by customers run the risk of piling up a lot of debt have substantial personal assets
they want to protect.
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Before you can decide on an ownership structure for your business, you must learn at
least a little bit about how each structure works. Here's a brief rundown of the most common
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forms of doing business: For many new businesses, the best initial ownership structure is
either a sole proprietorship or -- if more than one owner is involved -- a partnership.
A sole proprietorship is a one-person business that is not registered with the state as a
limited liability company (LLC) or corporation. You don't have to do anything special or file
any papers to set up a sole proprietorship. You create one just by going into business for
yourself. Legally, a sole proprietorship is inseparable from its owner. The business and the
owner are one and the same. This means the owner of the business reports business income
and losses on her personal tax return and is personally liable for any business-related
obligations, such as debts or court judgments.
Similarly, a partnership is simply a business owned by two or more people that hasn't
filed papers to become a corporation or a limited liability company (LLC). No paperwork
needs to be filed to form a partnership. The arrangement begins as soon as you start a
business with another person. As in a sole proprietorship, the partnership's owners pay taxes
on their shares of the business income on their personal tax returns and they are each
personally liable for the entire amount of any business debts and claims.
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Some people dream of forming a business of true equals. an organization owned and
operated democratically by its members. These grassroots business organizers often refer to
their businesses as a "group," "collective" or "co-op" but these are usually informal rather
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than legal labels. For example, a consumer co-op could be formed to run a food store, a
bookstore or any other retail business. Or a workers' co-op could be created to manufacture
and sell arts and crafts.
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A business that is a legal entity created by the state whose assets and liabilities are
separate from its owners. While there are also public corporations. Who stock (and
ownership) is traded on a public stock exchange. Most small businesses are (or at least start
as) private corporations. A private corporation is owned by a small group of people who are
typically involved in managing the business. Forming a corporation requires developing a
legal document called the "Articles of Incorporation" and submitting them to the state in
which the corporation wishes to reside. Advantages of a corporation include limited liability.
An owner (stockholder) can only lose up to the amount s/he invested; unlimited lifespan. a
corporation is charted to last forever unless its articles of incorporation state otherwise; great
sources of funding; and ease of transfer of ownership. Disadvantages include double taxation.
The corporation, as a legal entity, must pay taxes, and then shareholders also pay taxes on
any dividends received.
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1
Corporate vision is a short, succinct, and statement of what the organization
intends to become and to achieve at some point in the future, often stated in competitive
terms. Vision refers to the category of intentions that are broad, all-inclusive and forward-
thinking. It is the image that a business must have of its goals before it sets out to reach
them. It describes aspirations for the future, without specifying the means that will be used to
achieve those desired ends.
Warren Bennis, a noted writer on , says: "To choose a direction, an
executive must have developed a mental image of the possible and desirable future state of
the organization. This image, which we call a vision, may be as vague as a dream or as
precise as a goal or a mission statement."
a ± Safety serves as a barometer of our company¶s overall success and is a specific
measure of our operating excellence.
ë ± Trust is the mutual respect for and confidence in people. Trust recognizes the
importance of individuals and appreciates their diverse opinions. Trust compels us to share
information and encourage new ideas. It requires an open, honest, forthright manner.
± Self-confident people take initiative, handle the unexpected, stand behind
their convictions and support the efforts of others. They take bold, innovative, creative
actions, capitalize on opportunities, make sound decisions quickly, andmobilize the best
resources for rapid action.
± Being accountable means every employee assumes ownership and
responsibility for his or her own work, regardless of the job they perform. Being
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accountable means making decisions and holding oneself responsible for the consequences
of those choices.
2 3# ± Doing what¶s right is being honest, ethical, and having personal and
professional integrity. It means consistently treating all people fairly, delivering on promises,
and taking personal responsibility for your actions.
4 ± Quality is the primary determinant of customer satisfaction and loyalty, and it
requires employees to continuously provide internal and external customers with the right
product or service...done right...the first time. In today¶s increasingly competitive business
environment, better quality translates into better value for our customers and, subsequently,
better value for their customers-and this is the very essence of competitive differentiation.
Most businesses have some form of mission statement ,whether they know it or not.
For example, other names for a mission include: founder's philosophy, statement of purpose,
business philosophy. An organization's mission describes its fundemental purpose and overall
philosophy. A mission statement (what we are) is different than a vision statement (what we
want to become).
Mission statement:
A mission statement is an organization's vision translated into written form. It makes
concrete the leader's view of the direction and purpose of the organization. For many
corporate leaders it is a vital element in any attempt to motivate employees and to give them
a sense of priorities.
A mission statement should be a short and concise statement of goals and priorities.
In turn, goals are specific objectives that relate to specific time periods and are stated in
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terms of facts. The primary goal of any business is to increase stakeholder value. The most
important stakeholders are shareholders who own the business, employees who work for the
business and clients or customers who purchase products and/or services from the business.
The mission statement should be a clear and succinct representation of the enterprise¶s
purpose for existence. It should incorporate socially meaningful and measurable criteria
addressing concepts such as the moral/ethical position of the enterprise, public image, the
target market, products/services, the geographic domain and expectations of growth and
profitability.
The intent of the Mission Statement should be the first consideration for any
employee who is evaluating a strategic decision. The statement can rangefrom a very simple
to a very complex set of ideas.
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The Mission Statement should represent the broadest perspective of the enterprise's
mission. You may want to take the approach of being very specific. For instance, a Mission
Statement for a fictitious airline could be worded as follows: Your mission statement is an
opportunity to define your business at the most basic level. It should tell your company story
and ideals in less than 30 seconds: who your company is, what you do, what you stand for,
and why you do it. Do you want to make a profit, or is it enough to just make a living? What
markets are you serving, and what benefits do you offer them? Do you solve a problem for
your customers? What kind of internal work environment do you want for your employees?
All of these issues may be addressed in a mission statement.
Other ways to think about a mission statement as you begin to write one include:
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Your mission statement is about you, your company, and your ideals.
Don¶t ³box´ yourself in.
Keep it short.
Ask for input.
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The major outcome of strategic road-mapping and strategic planning, after gathering
all necessary information, is the setting of goals for the organization based on its vision and
mission statement. A goal is a long-range aim for a specific period. It must be specific and
realistic. Long-range goals set through strategic planning are translated into activities that
will ensure reaching the goal through operational planning.
To promote a profitable and sustainable business activity that meets the customers¶
needs.
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In order to achieve the desired goals, sound and effective organizational structure is
necessary. Organizational structure, as we know is the system of job positions, roles assigned
to these positions and specifying authority, responsibility and task of every positions. The
structure undoubtedly provides basic framework for executive and employees to perform
their task smoothly.
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Jobs should be designed in such a way, that job should have specified and defined task to
be performed. Jobs should be designed in such fashion that every individual could contribute
his maximum worth to the enterprise. The major and related activities of the jobs should also
be specified.
Identical and similar jobs should be grouped together in a department and placed under a
departmental head. Such departmentation will help in building coordination between different
jobs and managers. Departments can be established on different basis. It may have
production, marketing and finance departments, if it is based upon functions.
a
Under span of control, the number of employees and jobs managed by each manager is
specified. The chain of command is also clearly stated. It is specified that who will report
who is the smooth performance of his duties. Effective span of control avoids overlapping,
duplication and confusion in the work.
In order to get the job done properly and smoothly, requisite authorities are granted to the
managers. Authority is the power to command employees and instruct them to do a piece of
work. The authority empowers to know certain facts, to enjoy privileged position and
command respect and obedience from employees. Delegation is no doubt, sharing task with
requisite authority with subordinates. As such the manger multiplies himself through
delegation.
-
They are usually based on traditional domination or charismatic domination in the sense
of Max Weber's tripartite classification of authority.
Bureaucratic structures have a certain degree of standardization. They are better suited for
more complex or larger scale organizations. They usually adopt a tall structure. Then tension
between bureaucratic structures and non-bureaucratic is echoed in Burns and Stalker
distinction between mechanistic and organic structures. It is not the entire thing about
bureaucratic structure. It is very much complex and useful for hierarchical structures
organization, mostly in tall organizations.
-
The term of post bureaucratic is used in two senses in the organizational literature. One
generic and one much more specific. In the generic sense the term post bureaucratic is often
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used to describe a range of ideas developed since the 1980s that specifically contrast
themselves with Weber's ideal type bureaucracy. This may include total quality management,
culture management and matrix management, amongst others. None of these however has left
behind the core tenets of Bureaucracy. Hierarchies still exist, authority is still Weber's
rational, legal type, and the organization is still rule bound. Heckscher, arguing along these
lines, describes them as cleaned up bureaucracies, rather than a fundamental shift away from
bureaucracy.
Gideon Kunda, in his classic study of culture management at 'Tech' argued that³the
essence of bureaucratic control - the formalization, codification and enforcement of rules and
regulations - does not change in principle.....it shifts focus from organizational structure to the
organization's culture´.
Another smaller group of theorists have developed the theory of the Post-Bureaucratic
Organization; provide a detailed discussion which attempts to describe an organization that is
fundamentally not bureaucratic. Charles Heckscher has developed an ideal type, the post-
bureaucratic organization, in which decisions are based on dialogue and consensus rather
than authority and command, the organization is a network rather than a hierarchy, open at
the boundaries (in direct contrast to culture management); there is an emphasis on meta-
decision making rules rather than decision making rules. This sort of horizontal decision
making by consensus model is often used in housing cooperatives, other cooperatives and
when running a non-profit or community organization. It is used in order to encourage
participation and help to empower people who normally experience oppression in groups.
organizations integrate their activities vertically so that products are sold and distributed
quickly and at low cost. For instance, a small business could start making the components it
requires for production of its products instead of procuring it from an external organization.
But not only beneficial for organization but also for employees faiths.
Also called a "product structure", the divisional structure groups each organizational
function into a division. Each division within a divisional structure contains all thenecessary
resources and functions within it. Divisions can be categorized from different points of view.
There can be made a distinction on geographical basis (a US division and an EU division) or
on product/service basis (different products for different customers: households or
companies). Another example, an automobile company with a divisional structure might have
one division for SUVs, another division for subcompact cars, and another division for sedans.
Each division would have its own sales, engineering and marketing departments.
.
The matrix structure groups employees by both function and product. This structure can
combine the best of both separate structures. A matrix organization frequently uses teams of
employees to accomplish work, in order to take advantage of the strengths, as well as make
up for the weaknesses, of functional and decentralized forms. An example would be a
company that produces two products, "product a" and "product b". Using the matrix structure,
this company would organize functions within the company as follows: "product a" sales
department, "product a" customer service department, "product a" accounting, "product b"
sales department, "product b" customer service department, "product b" accounting
department.
2' .
A project manager with only limited authority is assigned
to oversee the cross- functional aspects of the project. The functional managers
maintain control over their resources and project areas.
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.
A project manager is assigned to oversee the project.
Power is shared equally between the project manager and the functional managers.It
brings the best aspects of functional and projectized organizations. However, this is
the most difficult system to maintain as the sharing power is delicate proposition.
a
) .
A project manager is primarily responsible for the project.
Functional managers provide technical expertise and assign resources as needed.
Among these matrixes, there is no best format; implementation success always depends on
organization's purpose and function.
Decentralized reporting
Flat hierarchy
High transient speed
High transparency
Low residual mass
Permanent monitoring
Rapid response
Shared reliability
Matrix hierarchy
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4. Technical / Operations
1. Logistics
2. Procurement
Managing this involves dealing with the optimization and allocation of funds to
various areas either by borrowing or by using those available from internal resources. The
word Optimizing may sound strange but it refers to taking measures that minimize the cost of
financing while simultaneously attempting to maximize the profits out of the employed
finance. Bad debts are poor finance management where rules have not been followed; the
result of this is depressed markets, low production and a cash crisis. It is for this very reason
that finance managers are very careful with finance they agree too and where it is funded
from.
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It is not uncommon to hear finance managers referred to as bean counters as they are
looking at immediate returns and initial costs against the potential at a later stage. Finance
managers are the pessimists whereas sales managers are the optimists who look to the future
and not to the past! Often though, problems occur with small businesses who fail to see the
distinction between a business loan and a personal one.
The main goal of The Department is to provide the internal and external users of financial
statements with relevant, accurate and timely information and to guarantee that the required
financial revision is closely adhered to in order to protect the assets of the company. The
Department takes care of finance flow to ensure that the company operates within its
financial regulations and satisfies various external financial requirements. It also ensures that
the corporate, financial records comply with internal and external audit. If to look through the
activity of The Department, there can be picked out the following main services it renders:
'
Marketing means informing your potential clients about your products or service, and
finding ways to establish and keep a customer base. Your target market is the specific group
of people that consume your product or utilize your service. Advertising refers to the various
media used to convey your message. Printed advertisement, radio air time, television
commercials and the Internet are all part of advertising that conveys your business message to
the public. Promotion refers to the various methods by which you convey your messageto
customers. When you communicate with the public, you're promoting your business. Many
people will join business associations, or set up displays in malls and craft shows for
promotional purposes.
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''
The Marketing office works to raise the awareness of the company and its prominence in
the industry and market. The global aim of the department is promoting the product/service
and increasing recognition of the company through researches and branding effo
rts. The
department's strengths should all be in proper understanding of consumer behavior and
efficient decision-making process. Typically, the major tasks of the marketing department are
as follows:
Human resources is a term used to describe the individuals who comprise the
workforce of an organization, although it is also applied in labor economics to, for example,
business sectors or even whole nations. Human resources is also the name of the function
within an organization charged with the overall responsibility for implementing strategies and
policies relating to the management of individuals (i.e. the human resources).
This function title is often abbreviated to the initials 'HR'. The origins of the function arose in
organizations that introduced 'welfare management' practices and also in those that adopted
the principles of 'scientific management'. From these terms emerged a largely administrative
management activity, co-
a range of worker related processes and becoming
known, in time as the 'personnel function'. Human resources progressively became the more
usual name for this function, in the first instance in the United States as well as multinational
corporations, reflecting the adoption of a more quantitative as well as strategic approach to
workforce management, demanded by corporate management and the greater competitiveness
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for limited and highly skilled workers. The general purpose of Human Resource department
is to establish proper staffing policy and implement it on practice.
*
³Entrepreneurship is the act of being an entrepreneur, which is a French word meaning "one who
undertakes an endeavor". Entrepreneurs assemble resources including innovations, finance and
business acumen in an effort to transform innovations into economic goods.´As an experienced
entrepreneur, you are most likely aware that there are daily duties involved with ensuring your
business is successful. Accounting: Includes budgets, payroll, financial planning, bill payments,
and credit management.
Administration: Includes sorting and/or reading mail and email, filing, answering inquiries,
invoicing, bookkeeping, and purchasing.
Computer: Includes such things as keeping your website up to date, virus scanning, contact
management, data entry, upgrading software and learning new software.
Correspondence: Includes writing advertisements, letters, press releases and articles.
Human Resources: Including interviewing, hiring, firing, training, motivating and conflict-
resolution.
Sales: Includes marketing, finding customers, client retention, promotions, advertising and
special events.
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a2ë
A SWOT analysis must first start with defining a desired end state or objective. A
SWOT analysis may be incorporated into the strategic planning model. Strategic Planning,
has been the subject of much research.[
First, the decision makers have to determine whether the objective is attainable, given
the SWOTs. If the objective is NOT attainable a different objective must be selected and the
process repeated. The SWOT analysis is often used in academia to highlight and identify
strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas
for development.
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Why SWOT?
It helps you carve a sustainable niche in your market by taking the best advantage of
your resources, talents, capabilities and opportunities. SWOT builds alignment. SWOT is a
ground up approach allowing everyone in the exercises to have a voice thus, increasing buy-
in and resulting in a higher level of execution. In general, Strengths and Weaknesses are
internal to your organization while Opportunities and Threats often relate to external factors.
SWOT Benefits.
What makes SWOT particularly powerful is that it helps you uncover opportunities that
you are well- placed to exploit. And by understanding the weaknesses of your business, you
can manage and eliminate threats that could affect you negatively. Using the SWOT
framework to assess your strengths and that of your competitors¶, you can analyze the
competitive landscape and develop a strategy that helps you differentiate yourself from your
competitors, so that you can compete successfully in your market.
SWOT Categories.
SWOT Results. :
SWOT essentially tells you what is good and bad about a business or a particular
proposition. If it's a business, and the aim is to improve it, then work on translating: strengths
(maintain, build and leverage) ,opportunities (prioritize and optimize) , weaknesses (remedy
or exit) , threats (counter) into actions (each within one of the six categories) that can be
agreed and owned by a team or number of teams.
Origins of SWOT.
SWOT analysis came from the research conducted at Stanford research Institute from 1960-
1970. The background to SWOT stemmed from the need to find out why corporate planning
failed. The research was funded by the fortune 500 companies tofind out what could be done
about this failure. The Research Team was Marion Dosher, Dr Otis Benepe, Albert
Humphrey, Robert Stewart, and Birger Lie.