MODULE 8.pptx
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This document discusses three common types of organizational structures: functional, divisional, and matrix. The functional structure groups departments by function, such as marketing, sales, production, and HR. The divisional structure organizes larger companies into divisions based on geography or products. The matrix structure combines functional and divisional approaches, which can create power struggles due to dual management in most areas.
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- 1. (1) Single Proprietor / Owner, one person holds the entire operation as his / her personal property and managing it on his / her own. 3 Options of an Organization (2) Partnership, requires more than one person in the decision-making process, it’s important that potential business partners discuss a wide variety of issues up front and develop legal partnership agreement. 3) Corporation, business owners opt to form corporations to protect themselves against financial and legal liabilities, so they may decide to look for investors.
- 2. 3 OPTIONS OF AN ORGANIZATION (1) Single Proprietor/Owner, one person holds the entire operation as his/her personal property and managing it on his/her own. Advantages: Disadvantages: • Formation • Tax benefits • Decision making • Liability • Taxes • Lack of “Continuity” • Difficulty in Raising Capital
- 3. (2) Partnership, requires more than one person in the decision-making process, it’s important that potential business partners discuss a wide variety of issues up front and develop legal partnership agreement. Advantages: Disadvantages: • Easy & Inexpensive • Shared Financial Commitment • Complementary Skills • Partnership Incentives for Employees • Joint and Individual Liability • Disagreements among partners • Shared Profits
- 4. (3) Corporation- business owners opt to form corporations to protect themselves against financial and legal liabilities, so they may decide to look for investors. Advantages: Disadvantages: • Separate legal personality • Ease of raising funds • Ease of transfer ownership • Credibility • More time and money spent in organizing • More paperwork • Higher Tax • More costly
- 5. Nature and Role of the Firm A. Human Resource Management – this is the entire spectrum of management of people that serves to maximize their performance in order to meet the organization’s objectives. B. Marketing Management – this is the responsible for identifying, anticipating and satisfying consumer requirements profitably. C. Operations Management – this involves overseeing, designing, controlling the process of production and designing business operations in the production of goods and services.
- 6. Manufacturing setting – designs the effective and efficient production process, acquisition of raw materials, numbers of trained workers and proper maintenance of equipment. Service-oriented setting – availability of trained and costumer-oriented personnel, presence and excellence provisions of customer services.
- 7. D. Financial Management – the goal of any finance function is to ensure the set up of effective and efficient internal process designed to achieve business support service, lowest costs and effective control of the environment while being vision-oriented, growth focused, intuitive and risk taking.
- 8. E. Material and Procure Management – it has the responsibility to ensure that it manages the procurement process and the supply base effectively and efficiently. F. Office Management – involves design, implementation, evaluation and maintenance of the process of work within an organization in order to maintain and improve efficiency and productivity. G. Information and Communication Technology Management –includes related form of communication or application that encompasses radio, television, cellular phones, computer and network hardware and software, satellite system, etc.
- 9. There are several variations of organizational structures and there are three common types of it. (1) Functional, a set up wherein each department of the organization is grouped according to its function or purpose. CEO Marketing Department Sales Department Production Department HR Depatment
- 10. (2) Divisional, this is typically used in larger companies or organizations with several branches or outlets that operate in a wide geographic area or that have separate smaller organizations within the umbrella group to cover different types of products or market areas. R1 Company Ilocos Norte Division Ilocos Sur Division La Union Division Pangasinan Division
- 11. (3) Matrix, this is hybrid of the 2 structures: functional and divisional. Disadvantage: this can create power struggles because most areas of the company will have a dual management.