Презентация на тему Introduction to business. Third/Fourth meeting

of jobs is necessary to ensure that the business

operates as efficiently as possible.
The structure of an organization refers to the way in which its activities are grouped or arranged. It is a hierarchical concept of subordination of entities (employees).
It depend on:
Number and skills of employees
Whether it is in the manufacturing or service sector
Whether it is a local, national or international organization
The type of work with which it is involved
The culture of organisation – reflects creativity, history etc.

shown on an organisation chart. It usually provides us

with the job titles of employees (or sections) and their relationship with each other.
Major issues in chart:
Where is the responsibilty and authority for decision making
Job titles and roles
Lines of authority (who employee is accountable to and who they are responsible for)
The lines of communication

or wrong structure, provided that it reflect the needs

of company and allows to communicate and work effectively and achieve business objectives.
Businesses that are growing quickly are likely to change the organisational structure regularly.
Levels of hierachy – number of layers within an organisation, with each layer representing a level of authority. The more layers, the longer the chain of command. It may lead to communication problems as lines of communication are streched.

the number of subordinates, one job/post holder is responsible

for.
Work load: how much work one employee, department or team have to complete in a given period of time.
Delegation: passing the authority to make specific decisions to somebody further down the organisational hierarchy.

business
Market conditions
Ownership
Customer’s needs
The entrepreneurial culture within company

for firm’s strategic policies
Compensation Committee – nonemployee directors setting

the remuneration package for management
Chief Executive Officer (CEO) – head of management team
Chief Financial Officer (CFO) – responsible for: accounting, raising capital, evaluation of effectiveness of operation and investment.
Chief Operating Officer (COO) – production and often sales.

or projects and involve creation of team that include

required specialists
Entrepreneurial structures – for small business – core team of decision makers is supported by a number of general employees with little or no decision-making power.
Informal

firm (CEO or management board) is responsible both for

the firm’s day-to-day operations and for formulating its business strategy.
Communication relies on the central part.
Often inefficient as problems with bounded rationality – limits in ability to absorb and process information by management.

separate departments, such that responsibility for the day-to-day management

is separated from the formulation of business’s strategic plan.
Medium to large firms
Advantages:
Reduced length of information flows
CEO can concentrate on overall planning
Enhanced level of control – each division may become „mini-firm” competing with other – when introducing properly designed budgeting and controlling procedures

to communicate directly with those lower in the organizational

structure. Middle managers are bypassed.
Problems similar as with U-form:
Communication cost (now lower)
Misinterpretation of information or decisions
Managers may focus on their own departmental goals rather than overall goals of the company.

Parent company holds interest in a number of other

companies or subsidiaries. These subsidiaries can in turn control other companies.
Integrated international enterprise – international company pursues a single business strategy – coordinates activities of various other subsidiaries accross different countries.