Organizational Structure and Design Concepts
Structure of a Company
Organizational design concept. Divides in 2- formal organizational structure: established by management in a planned manner. Informal organizational structure: unplanned relationships, spontaneously. Organizational design: process through which managers evaluate, create, and modify the formal organizational structure to carry out necessary activities to achieve objectives. Formal structure reflected in an organization chart. Organizational structure is not static, adapts to contingency factors: environment, corporate and business strategy, technological system, size, and organizational identity. Basic decisions. Differentiation of activities work in simpler tasks. Divides in 2: horizontal differentiation: departments. Vertical differentiation: separation of the tasks of execution from the tasks of preparation and control. Integration of activities: achieve coordination of the different organizational units. 3 types of communication: formal structure mechanism; create organs, non-structural mechanisms: not create organs. Informal mechanism: mutual adaptation. Tools to use: Liaison positions: 1 worker coordinates 2 units without authority. Integrative manager: authority coordinates units. Working group: created to solve a problem. Standing committee: same but forever. Departmentalization criteria. By functions: according to the basic functions. By purpose: by products, geographical area. Organizational models. Primary structure: by departmentalization 4 groups: simple structure non-departmental. Functional structure: depart by functions. Divisional structure: depart by purpose. Matrix structure mix. Secondary structure: relationship with other units. Bureaucratic structures: established procedures. Organic Structures: low formalization.
Hygiene Herzberg
Hygiene factor: context and conditions that surround workers in a good state. Motivation factors: achievements, recognition, labor independence, responsibility. Functions of HRM. Capturing function: recruitment, selection, socialization. Motivation function: remuneration policy-base salary, extra hours, salary supplements, incentives. Individual incentive policy: related to the work of 1 person. Policy of group incentives: group work remunerated. Development of functions: training it can be general or specific.
Objectives of the Production Function
5 aspects. 1. Costs: cost reduction, better use of existing resources, making investment in technology to get efficiency. 2. Delivery compliance: speed of deliveries, deliveries on date. 3. Improvement of the quality. 4. Increased flexibility: adapt to changes. 5. Customer service: satisfy needs. Productivity indices: total productivity index: relates to the volume of production in a given period with the set of all the factors used to obtain this volume production. Partial productivity index: relates the volume of production with a single factor, labor.
Strategic Marketing
Try to detect the current and future needs of the consumer. This involves obtaining info- analysis of the situation. Definition of marketing objectives. Formulation of marketing strategies types of strategies- market segmentation, strategy of massive marketing, deciding segments, differentiated marketing strategy, concentrated market strategy. Operational marketing: consist of designing and executing a marketing mix plan that is suitable for the achievement of the objectives and positioning strategies. Variables: Product: brand of manufacturers, distributor, or private labels. Stages of product: stage of introduction, growth stage, maturity stage, decline stage. Commercial distribution: Direct channels, indirect channels. Exclusive distribution- intermediaries, selective distribution- distributors reduced. Intensive distribution- manufacture place product everywhere. Price- Pricing methods 1. Cost-based methods P=Vc+(Fc/Q)+BM (benefit margin). Demand-based method. Method based on competition. Price strategies: selective pricing, penetration strategy, price strategy by product lines, discrimination of prices, psychological prices.
Financial Function
Objective: profitability of investments exceeds the cost of the resources used to finance them to the greatest extent possible. Depending on the time the assets remain we have fixed assets: +1 year current assets: -1 year. Liability shows the result of financing decisions or the composition of the financial sources used to finance the assets- permanent resources and short-term debts. Financing can be: internal self-financing or external. Evaluation of investment projects: initial disbursement-A/Temporary horizon-T/cash inflows-Ct/Payments-Pt/Different bt collections and payments-Qt=Ct-Pt/Interest rate-K. Net present value: project defined as the sum of the updated values of all the cash flows associated with the realization of that investment. Internal rate of return: rate that makes the value the net present value of the investment is equal to 0.