LOGO THE ORGANIZATION AS AN OBJECT OF MANAGEMENT. THE EXTERNAL ENVIRONMENT OF THE ORGANIZATION

LOGO

THE ORGANIZATION AS AN OBJECT OF MANAGEMENT. THE EXTERNAL

ENVIRONMENT OF THE ORGANIZATION

LOGO Definition of organization

Basically, an organization in its simplest form (and not necessarily a legal entity, e.g., corporation or LLC) is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from one person to tens of thousands.


The concept of "organization" is a particular group of several essential requirements:

Experience in at least two people who consider themselves as part of the group;

Experience of at least one goal (the desired end result), which take a total of all members of a group;

Experience in team members who intentionally work together to achieve meaningful for all purposes.



Organizations include the following features:

Under way and the goal of education: formal and informal organization

The number of goals: simple and complex organization

Largest: large, medium and small organizations.

For legal status: individuals or legal entities.

LOGO Definition of organization Formal Organization - This is one which refers to a structure of well

defined jobs each bearing a measure of authority and responsibility. It is a conscious determination by which people accomplish goals by adhering to the norms laid down by the structure. This kind of organization is an arbitrary set up in which each person is responsible for his performance. Formal organization has a formal set up to achieve pre- determined goals.

Informal Organization - It refers to a network of personal and social relationships which spontaneously originates within the formal set up. Informal organizations develop relationships which are built on likes, dislikes, feelings and emotions. Therefore, the network of social groups based on friendships can be called as informal organizations. There is no conscious effort made to have informal organization. It emerges from the formal organization and it is not based on any rules and regulations as in case of formal organization.

LOGO Organization as a social formation At the present stage, all organizations are considered as open

systems, ie, internal elements which interact not only among themselves but also with the environment.

The open system has certain properties, namely: · Integrity (the change of one component requires the change of others); · Monocratic rule; · Perspective (development in the direction of improvement); · Independence (possible separation subsystems); · Specialization (ability to perform a specific list of works); · Converting incoming items on weekends; · Centralization (one part is dominant); · Growth (attraction to the extension, increase); · Cyclical development; · Equilibrium; · Unpredictability of possible violations.

LOGO Organization as a social formation

There are common features of such organizations:

· Establishing missions and goals; · Experience in resources; · Dependence on the external environment; · Horizontal division of labor; · Vertical division of labor; · Need of management; · Experience in formal and informal groups; · Implementation of certain activities.

LOGOOrganization as a social formationThe success of any organization depends on the following

conditions: Profitability; Capitalization; Survival; Entrepreneurial initiative; Of communications; Effectiveness (efficiency); Productivity; Capacity for creating a culture; Capacity for practical implementation; Capacity for self-development; Ability to effectively use the investment; Capacity for self-management system.

LOGO Life-cycle of organization

LOGO Life-cycle of organization

Organizations go through different life-cycles just like people do. For example, people go through infancy, child-hood and early-teenage phases that are characterized by lots of rapid growth. People in these phases often do whatever it takes just to stay alive, for example, eating, seeking shelter and sleeping. Often, these people tend to make impulsive, highly reactive decisions based on whatever is going on around them at the moment. Start-up organizations are like this, too. Often, founders of the organization or program and its various members have to do whatever is necessary just to stay in business. Leaders make highly reactive, seat-of-the-pants decisions. They fear taking the time to slow down and do planning.

LOGO Life-cycle of organizationBirth Youth Midlife Maturity

Size small medium large very large

Bureaucratic nonbureaucratic prebureaucratic bureaucratic very bureaucratic

Division of labor overlapping tasks some departments many departments extensive, with small jobs and many descriptions

Centralization one-person rule two leaders rule two department heads

top-management heavy

Formalization no written rules few rules policy and procedures manuals

extensive

Administrative intensity

secretary, no professional staff

increasing clerical and maintenance

increasing professional and staff support

large-- multiple departments

Internal systems nonexistent crude budget and information system

control systems in place; budget, performance, reports, etc..

extensive -- planning, financial, and personnel added

LOGO Team of organization


A team is a group of individuals, all working together for a common purpose. The individuals comprising a team ideally should have common goals, common

objectives and more or less think on the same lines. Individuals who are not compatible with each other can never form a team. They should have similar if not the same interests, thought processes, attitude,

perception and likings.


Team membersThe team members must complement each other.

All team members should help each other and work in unison. Personal interests must take a back seat and all of them must deliver their level best to achieve the team objective. Team members must not argue among themselves or underestimate the other member.

Organizations have a sales team, administration team, human resources team operation team and so on. All the members of the sales team would work together to achieve the sales target and generate revenues for the organization.


Team SizeThe team size depends on the complexity of the

task to be accomplished. Ideally a team should consist of 7-10 members. Too many members also lead to confusions and misunderstandings.

It is not always that we require a team. Teams should be formed when the task is a little complicated. A single brain can sometimes not take all critical decisions alone, thus a team is formed where the team members contribute equally making the task easy. A team can actually create wonders if all the team members work in unison.

LOGO Types of Teams Permanent teams- These teams perform on a permanent basis and are not dissolved once the task is

accomplished. Let us understand the concept with an example. Temporary teams - Unlike permanent teams, temporary teams loose their importance, once the task is

accomplished. Such teams are usually formed for a shorter duration either to assist the permanent team or work when the members of the permanent team are busy in some other project.

Task Force - Such teams are formed for a special purpose of working on any specific project or finding a solution to a very critical problem.

Committee - Committees are generally formed to work on a particular assignment either permanently or on a temporary basis. Individuals with common interests, more or less from the same background, attitude come together on a common platform to form a committee and work on any matter.

Organization/Work Force - Such groups are formed in organizations where team members work together under the expert guidance of leader. A leader or a supervisor is generally appointed among the members itself and he along with his team works hard to achieve a common goal. The leader all through must stand by his team and extract the best out of each team member. He must not underestimate any of his team members and take his team along to avoid conflicts.

Self Managed Teams - Self Managed Teams consist of individuals who work together again for a common purpose but without the supervision of any leader. Here as the name suggests every individual is accountable for his individual performance. The team members of self managed teams must respect each other and should never loose focus on their target. No leader is appointed and the team members have to take their own responsibility. Individuals take the initiative on their own and are their own guides and mentors.

Virtual Teams - Virtual teams consist of individuals who are separated by distances and connected through computer. Here individuals communicate with each other online through internet. Sam at Los Angeles can form a team with Mandy at Mexico and Sara at Denver all working for a common objective but the communication is totally digital through internet. Such teams are helpful when employees need to connect with each other and are located at different places. Individuals supporting any community in social networking sites such as facebook or orkut also form a virtual team as all the members are from different locations but support a common community. They all have a common objective -to support and promote their community.

LOGO THE INTERNAL ENVIRONMENT

The organization is an open system closely connected with the external world. Simultaneously it is a

complex multifunctional organism, which has the internal environment and consists of multiple

interdependent parts. The internal components (or variables) of the organization are situational

factors hardly organization. They are: - purposes; - tasks; - structure; - technologies; - staff (people).



To earn enterprises must formulate purposes in the following areas:

- market share; - development and sale of products; - quality of services; - training and selection of managers; - social responsibility.


The tasks are divided into three categories:

- work with people:- work with subjects (raw materials,

feedstocks, technical equipment, instruments, etc.);

- work with information.


Bureaucracy is organizational form, which is characterized by roles, hierarchy and offices or roles.

The key features of bureaucracy are as follows:a. A continuous organization of functions bound by

rules. b. Specified spheres of competence. c. A hierarchical arrangement of offices, d. Appointments made on grounds of technical

competence. e. Separation of officials from the ownership, f. Offices exist in their own right. g. Rules and decisions

are set down.


The grouping of jobs into departments is a second major activity required in organizing. Departmentalization means grouping of related jobs to form an administrative unit—department, area, or center. Because the jobs in any department are similar, for many purposes of the organization, each department can be considered to be a single piece of the organization. Departmentalization assists in the coordination of the jobs of an organization, and coordinating departments is easier than coordinating each job separately.

LOGO THE INTERNAL ENVIRONMENT Functional departmentalization is often employed in smaller

companies. It is well suited to organizations that offer a limited number of goods. It has several advantages for these types of organizations. First, be-functional departmentalization groups closely related activities and employees, it permits effective economies of scale. It allows workers with the related knowledge and skills to work together on the same type of work issues. Marketing specialists, for example, work together to develop promotion campaigns for each of the small number of products of the company. Second, functional departmentalization promotes the development of specialized skills and expertise in workers because they deal with the same issues over time. Third, managers have an easier time coordinating and planning because all the jobs that report to them are similar in content. Finally, this type of departmentalization is often intuitively simple to the persons involved in the organization in terms of their learning the lines of communication and authority.

LOGO THE INTERNAL ENVIRONMENT Customer Departmentalization An organization employing customer departmentalization

groups jobs so that the job holders interact with a specific customer group or clientele. Each of departments has a manager, assistant manager, clerk, buyer, inventory clerk, and sales clerks. However, the activities of those positions in any department include only the product appropriate for its group of clients.

An obvious advantage of customer departmentalization is that it puts to organization in closer contact with its customers and should give the firm some advantage in addressing the needs of that particular clientele.


Product DepartmentalizationFirms employing product departmentalization group

jobs or activities around their principal goods and services. Many large organizations that have several different products are similarly organized along product lines. And organizations grow; they often move from a functional to a product orientation for their structure. This is especially true if the firms produce or acquire a variety of products that may have some unique manufacturing, marketing, and distribution needs.


Geographic DepartmentalizationGeographic departmentalization groups jobs

according to physical geography. This departmentalization scheme is often used by firms with international operations requiring a special knowledge or sensitivity to each particular nation or region. Departmentalization by geography can be based on any set of geographic parameters—for instance, area, state, or nation.

LOGO THE EXTERNAL ENVIRONMENT

Factors of direct influence SUPPLIERS Organizations must acquire resources from their environment and convert those resources into

products or services to sell. Suppliers provide these resources. Every business must acquire people (supplied by universities, trade schools and employment services), raw materials (supplied by producers, wholesalers, and distributors), and capital (supplied by banks, investment funds, stockholders, sponsors and other sources). Suppliers are important to an organization for reasons beyond the resources they provide. Suppliers can raise their prices or provide poor quality goods and services.

CUSTOMERS Customers purchase the products or services the organization offers. Without customers, a

company wouldn't survive. There are a final consumers, who buy a goods for own use, and intermediate consumers, who buy raw materials or wholesale products and then sell to final consumers. Intermediate customers actually make more purchases than individual final consumers do. Examples of intermediate customers include hospitals, which buy medicines from wholesalers, and manufacturers' representatives for use them to patients, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products.

COMPETITORSOrganizations must identify their competitors including (1) overseas firms, especially their first, unobtrusive entry into small niches; (2) small domestic firms, especially their entry into tiny, premium markets; (3) big new domestic companies exploring new markets; (4) strong regional competitors; and (5) unusual entries such as TV home shopping and the explosion of retail catalogers.


Factors of the indirect influence Political factor. Government policies both impose strategic constraints and provide opportunities. The

government can affect business opportunities through tax laws, economy, and international trade rulings.

The economy. The international environment is an important contributor to another crucial component of the macro environment: the economy.The economic environment dramatically affects companies' ability to function effectively and influences their strategic choices. Interest and inflation rates affect the availability and cost of capital, the ability to expand, prices, costs, and consumer's demand for products.

Technology. Today a company cannot succeed without incorporating into its strategy the astonishing technologies that exist and continue to evolve. Technological advances create new products, production techniques, and ways of managing and communicating. As technology evolves, new industries, markets, and competitive niches 1 develop. The advent of computers created a huge industry.

Social/cultural factor. Social/cultural environment implies installation, life value and traditions, which influence upon organization. One example of restraint on business action is the standards regarding bribery. In some countries, bribes and kickbacks are common and expected ways of doing business. But for U.S. firms, these are illegal, unethical and oral practices. Social/cultural factors influence on consumption of some products and facilities including medicines. Market factors:

• demographic structure of the population; • incomes of the population and their dynamics; • market conditions; • level of competition in the branch.


CHARACTERISTICS OF THE EXTERNAL ENVIRONMENT:

> interconnection of factors (level of strength, with which change of one factor acts upon others);

> complexity (number of factors, vastly influencing upon activity of the or-ganization);

> mobility (velocity of changes in the environment); > uncertainty (the amount of information on

ambience and level of confidence in this information).

LOGO

THANK YOU FOR ATTENTION!!!

Documents

LOGO THE ORGANIZATION AS AN OBJECT OF MANAGEMENT. THE EXTERNAL ENVIRONMENT OF THE ORGANIZATION