Business Administrative Processes and Organizational Models
Administrative Process:
Administrative processes are typically divided into four basic functions:
- Planning: Establishing objectives and designing activities to achieve them.
- Organization: Setting appropriate relationships between company parts and personnel.
- Direction: Managing staff to achieve optimal performance.
- Control: Comparing results with targets set during planning.
Planning Role:
The planning role involves setting goals, creating strategies, defining company policies, and establishing decision criteria to achieve company objectives.
Formal Organization:
A formal organization is an intentional structure where each element is placed in the most suitable location. It requires people to adjust and cooperate to achieve predetermined goals.
Models of Organizational Structure:
A) Hierarchical Linear Model
Based on the principle of command, where all members report to a superior.
Advantages: Simplicity, clear authority, and speed.
Disadvantages: Lack of expertise among managers, excessive concentration of authority, and low subordinate motivation.
B) Functional Model
Characterized by specialists dedicated to specific tasks. Multiple managers may exist hierarchically.
Benefits: Access to specialists and dedicated employees.
Disadvantages: Employees may receive conflicting orders from multiple managers.
C) Line and Staff Model
A central structure supported by advisory departments that assist but lack authority.
Benefits: Specialist advice and clear reporting lines.
Disadvantages: Slow decision-making, potential conflicts, and additional costs.
D) Committee Model
Characterized by cooperation among several people to assume authority and responsibility.
Benefits: Decisions from various perspectives and overall participation.
Disadvantages: Slow decision-making, potential for compromise-based decisions.
E) Matrix Model
Combines organizational variables like roles and projects, linked through authority relationships.
Advantages: Flexible organization while maintaining a habitual structure.
Disadvantages: Requires coordination and may lead to conflicts among directors.
Organization Charts:
Organization charts are graphical representations of a business’s structure, revealing its main features.
Classification by Shape:
- Vertical Charts: Highlight the chain of command, with higher authority at the top.
- Horizontal Charts: Similar to vertical charts, but control panels are on the left and right.
- Radial Charts: Create a visual impact to detect higher management levels.
Classification by Purpose:
- Informational Charts: Provide a global company overview.
- Analytical Charts: Show the entire organizational structure.
Classification by Extension:
- General Charts: Reflect the overall business structure.
- Detailed Charts: Report on a specific department’s organization.
Classification by Content:
- Structural Diagrams: Show company units and their relationships.
- Organizational Plans: Represent people within the organization.
- Functional Flowcharts: Reflect how each unit operates.
Informal Organization:
Informal organization is the set of personal and social relationships that arise spontaneously, not predetermined by management.