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    Corporate Organization PDF

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    larraine aguimatang
    The document discusses key aspects of corporate organization and control, including different forms of industrial organization like one-man operations, functional organizations, and conglomerates. It also covers operating policies and management information systems. Operating policies provide guidance for decision-making and define how managers should act in recurring situations. Management information systems integrate information to provide management with regular data needed to efficiently manage the organization."

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    Corporate Organization PDF

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    larraine aguimatang
    83 views25 pages
    The document discusses key aspects of corporate organization and control, including different forms of industrial organization like one-man operations, functional organizations, and conglomerates. It also covers operating policies and management information systems. Operating policies provide guidance for decision-making and define how managers should act in recurring situations. Management information systems integrate information to provide management with regular data needed to efficiently manage the organization."

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    The document discusses key aspects of corporate organization and control, including different forms of industrial organization like one-man operations, functional organizations, and conglomerates. It also covers operating policies and management information systems. Operating policies provide guidance for decision-making and define how managers should act in recurring situations. Management information systems integrate information to provide management with regular data needed to efficiently manage the organization."

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    83 views25 pages

    Corporate Organization PDF

    Uploaded by

    larraine aguimatang
    The document discusses key aspects of corporate organization and control, including different forms of industrial organization like one-man operations, functional organizations, and conglomerates. It also covers operating policies and management information systems. Operating policies provide guidance for decision-making and define how managers should act in recurring situations. Management information systems integrate information to provide management with regular data needed to efficiently manage the organization."

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    Key Aspects of 

    Corporate
    Click to edit MasterOrganization,
    subtitle style

    Operating Policies and


    Gab Arellano
    Liezel Veluz
    Control
    Hanz E. Bollozos
    Organization
    Forms of Industrial
    Organizations
    1. One-man Operation
    2. Father-son or Manager-assistant
    3. Functional Organization
    4. Functional Organization With Central
    Headquarters and Geographical
    Dispersion
    5. Multi-divisional Firm
    6. Conglomerate
    1. One-man Operation
    Has a single manager
    -who may make vague strategies and plans
    -make all decisions on the basis of experience or
    limited knowledge
    -concentrates all responsibility & authority to himself 
    -issues orders to all operating personnel
    -knows all the workers personally
    -information flows directly to him from individual
    workers and vice versa
    Has a very efficient type of management usually of 

    Paternalistic type
    Cannot function well when the number of workers

    exceeds 30 – 40.

    2.Has aManager-assistant
     single manager but with 1 or more assistants
    type -the manager or “boss” retains authority and makes all
    decisions
    -the assistants’ jobs are merely to transmit orders and
    gather information
     This type of organization is still efficient and can grow up to 300 or
    400 employees
    Generally restricted to having operations at 1 location

    It poses a number of dangers:

    -the boss losses direct contact with workers, which could affect
    motivation
    -assistants may vie for popularity or give false report to the boss.
    -usually it doesn’t develop the abilities of the assistants

    3. Functional
    Introduces the concept of delegation of authority

    Organization
    Functional managers (the delegated authority) make

    all operating decisions within their department


     They may participate in the development of strategy
    and plans but strategic decisions remain as
    responsibility of the CEO or GM
    CEO or GM coordinates the work of functional

    managers and resolve conflicts


     This organization permits growth up to several
    thousand employees but is generally limited to firms
    with a small number of closely related products/
    services restricted to one location
    4. Functional
    Organization w/ HQ and
    Geographical Dispersion
     This organization is an extension of the 3rd form but permits
    manufacturing or sales operations in 2 or more locations
    Each geographical manufacturing plant or sales office has its own

    production or sales manager directly responsible to the


    production or sales manager in its central headquarters
    All major strategic plans and decisions are made at the HQ

    Only the routine operating decisions are delegated to the field

    functional managers
    Some very large companies with tens of thousands of employees

    operate efficiently under this form


    However effectiveness begins to lose once product lines of the firm

    become too numerous or varied



    5. Multi-divisional Firm
     This organization has separate divisions for each product line or
    geographical location
     Each division has its own functional organization with its own GM

     Central HQ management maintains temporary responsibility for the

    delineation of the goals of individual division


     Division managers are responsible for developing their own strategies

    and long-range plans subject to approval of HQ


     Its division’s strategies and long-range plan should be in line with the

    total corporate commitment and objectives


     HQ allocates resources among the divisions and seeks coordination

    between the divisions


     ROI is the overriding criterion for expectation from each division

     HQ can exercise to reduce or eliminate divisions with declining

    performance
     Many multinational firms have “divisions” which are separate

    corporations themselves


    6. Conglomerate
     This organization has central HQ that only maintains
    financial control over a number of wholly-owned
    companies.
    Each subsidiary has different product line and marketing

    system
    Each subsidiary acts independently in setting its goals and

    in developing its plans and strategies


    Each subsidiary controls its own funds and makes its own

    investments
    HQ management’s major role is selecting the CEO of each

    subsidiary and requiring a certain return on capital or


    achievement of some corporate goal


    Organizational Structure
    Companies may fall into a variety of degrees and
    combinations from among the given 6 forms of 
    organizational structure
    Each grows naturally out of the preceding one as the firm

    becomes larger and more complicated leading to


    changes in the organizational structure
    Reorganization sometimes is needed in an organization

    and there is a need to change its organizational structure


    Organizational charts is usually required to effectively plan

    and analyze alternative organizations


    Operating Policies
    Two Types of 
    Business Policies
    Ø Major Business Policy
    - deals with the fundamental nature of the company, which
    set the general directions in which the firm is expected to
    move
    Ø Operating Policies
    - guides to decision-making for effective, efficient, and 
    smooth operation of the organization
    - provide a value system and personality to an organization
    Operating Policies
     Provide a value system and personality to an
    organization
     Take the form of statement which tell
    managers how they should act in specific
    frequently-recurring situations
     They are usually confused with rules and
    procedures
    It has been the trend for well-managed firms

    to put their policies down in writing


    Some advantages in writing
    down
     policies
    Greatly promotes delegation of authority
     There will be less delays in obtaining decisions
    Promotes consistency and reduce arbitrary bases

    of decisions
    Supports continuity

    Increases the ability of the different levels of 

    management to cooperate with each other


    Reduces misunderstanding among the different

    levels of management thus improving morale



    Some precautions about
    written
     policies
    Highly confidential company policies should be
    protected from being exposed to competitors or
    other threats
     There should be a periodic review of all the policies
    because their effectivity could remain long after
    they have become obsolete
    Avoid writing policies that might permit insufficient

    discretion to decision-makers making them


    inflexible


    Managerial Control
    of Operations
    Managerial Control of 
    Operations 4 Step
    1. Standard of performance is established
    Process:
    2. Actual performance is measured in relation
    to the standards
    3. Performance information is channeled to the
    person responsible for controlling that
    operation
    4. Where discrepancies between standards and
    performance occur, corrective action is
    initiated
    Managerial Control of 
    Operations 4 Step
    Process:
    Establish standards of performance

    Measure actual performance vs.


    standards

    Performance information is channeled


    to the person responsible for control
    Maintain status
    of that operation
    quo

    Determine need for corrective actions Change the


    deviation

    Change
    standards
    Management
    Information Systems
    What is M.I.S.?
    M.I.S. is an integrated information system, which is
    used to provide management with needed
    information on a regular basis . It is needed to
    manage an organization efficiently and effectively.
    It is distinct from other information systems in that

    they are used to analyze operational activities in the


    organization
    Originally, M.I.S. doesn’t necessarily mean it must be

    computerized, but nowadays M.I.S. and computers


    are identified with each other. Depending on the
    technology acquired, a small business organization
    today can set-up an automated or semi-automated
    M.I.S. with just a single affordable PC
    Why Buying a PC Makes Business
    Se ns e Tod ay
    About 30 years ago, before
    the advent of the PC,
    computers were very
    expensive and it was very rare
    even for large corporations in
    developing countries, to justify
    the installation of a
    computerized M.I.S. That era
    was ruled by IBM and their
    mainframe computers. These
    computers would often take
    up whole rooms and require
    teams to run them.
    Why Buying a PC Makes Business
    Se ns e Tod ay
    With the proliferation of the PC
    in the market, it began to
    compete with mainframes and
    mini-computers and accelerated
    the process of decentralizing
    computing power from large data
    centers to smaller offices. At first,
    there were still few SMEs who can
    afford to buy PCs for their
    business but the price of the PC
    continued to go down. Then came
    also powerful applications and
    rapid-application-development
    software that made computerized
    M.I.S. an ever more affordable
    alternative.
    Why Buying a PC Makes Business
    Se ns e Tod ay

     Today, as the complexity of the technology


    continue to increase and the costs
    decreased, we find technologies such as
    interconnecting wireless networks, high
    speed mobile cell phones, and the popular
    internet, already at the fingertips of many
    small business entrepreneurs.
    Some examples of what a single PC can do
    for a small business:
    do automatic calculations
    store data

    using the lowly spreadsheet can


    prepare a simple payroll, GL etc.
    keep track of expenses

    prepare communications

    provide owner with many financial analysis tools

    download from the internet free business applications

    reduce manpower and other functions that help the


    business operation effective and efficient


    Thank 
     You.

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