Organisational structures. Aim of the organisation - OSCAR. O – objective S – specialization C – coordination A – authority R – responsibility What does organising mean? deciding, WHO WILL DO tasks that must be performed and
WHO WILL BE RESPONSIBLE for seeing, that tasks were done properly.
= diagram that shows how work is divided and where the authority lies
The aim of organisation is:
To define and effectively use planned activities of people to achieve objectives and other needs of the company.
Form of coordinating of activities to achieve objectives of organisations is organisational structure.
Divisions develop a business-level strategy to compete.
A division has marketing, finance, and other functions.
Functional managers report to divisional managers who then report to corporate management.
= two boss employee
Enterprise has got less organisation levels with more subordinates. There is more decentralised management with higher requirements for independence, self-reliance and higher quality of labour.
The enterprise has got more organisation levels with less subordinated departments.
Generally there is a centralized management.
What is outsourcing?
The enterprise dispose of all activities, which it can buy in expected quality, but cheaper from external suppliers. (outsourcing).
Hole structures keep the activities with the highest value added, as research, construction, design, technology, marketing, production, sale, but other activities and services rent from some other firm.
The enterprises are connected together and participate on individual stages – preproduction, production and after production stage.
From outside they figure as independent, but the product can be made only with the cooperation.
Flexible variante of network organisatin. It does not have a fixed structure, it changes according to objective and activity. It is a free organisation of firms for limited time on some purpose for realisation of specific purchuase order. Virtual enterprise works, deliver, even if it does not exist as independent.
It is a form of firm cooperation (consorcium), when firms enter to the alliance to combine their limited possibilities and connected their research, production, sale or other potenctial.
Simulation of market situation and business conditions inside the firm. Firm is divided in SBU = Strategic Business Units with high autonomy. There is „firm in the firm“. SBU behaves as independent, sovereign firms with defined customers, competitors, mission, objectives, plans and have self-management, resources. They are responsible for their business results (profit, loss) but they are also limited with central management and its strategy.
PROCESS – system connection of activities. Example – material orders.
ACTION – system connection of individual activities.
Example – material orders.
ACTIVITY – basic element of business process, which is possible to clasify from the point of view of costs, which are spent for this activity. Example – discharge of pallets with material by the fort-lift track