THE BUSINESS ORGANIZATION - CONCEPT: It is the process through which it is possible to establish:
- The organizational structure and the Organizational Chart The positions and administrative functions The rules and regulations of the organization The machines, equipment and tools The infrastructure of the workshops and offices The necessary human resources
ELEMENTS OF THE ORGANIZATION
Every company or organization always seeks an objective, be it social, economic or financial; The objective to be achieved must be clear, precise and concise.
OBJECTIVE
It is made up of the set of legal norms that make it possible for the company to function formally.
Example:
-Law of MYPES. Law 28015
- EIRL Law Law 21621
-General Law of Companies. Law 26887
ELEMENTS OF THE ORGANIZATION
Human resource
Economic resource
Financial resource
Material
resource Technological resource Information resources Etc.
MEANS
Constituted by the different administrative bodies and units that have been established in the organization, it constitutes the “Bone body” of the company and must be established according to the needs, size, business, or other special characteristics of the organization.
Set of procedures that must be carried out to execute the operations of the company; A process must be followed for the production of goods, for the sale in the same way, for purchases, etc.
PROCESSES
THE ORGANIC STRUCTURE
-When we speak of organizational structure we refer to the structure of the formal organization and not the informal one. For example the
structure of the Peruvian state
ORGANS OF THE STRUCTURE
Generally for the elaboration of the business structures, the administrative units and the organs are taken into account, being the following:
⚫ Senior Management
Bodies ⚫ Management Bodies
⚫ Line
Bodies
⚫ Advisory Bodies ⚫ Consulting Bodies
⚫ Control
Bodies
⚫ Support Bodies ⚫ Decentralized Bodies
PURPOSES OF THE ORGANIZATION
- Allow the achievement of the primary objectives of the company as efficiently and with minimal effort.
- Eliminate duplication of work.
- Establish communication channels.
- Represent the official structure of the company
ELEMENTS OF THE ORGANIZATION PROCESS
ORGANIZATION PROCESS
1 BASIC STEPS TO ORGANIZE
- Divide the entire workload into tasks that can be carried out, logically and comfortably, by individuals or groups. This is known as the division of labor.
- Combine tasks in a logical and efficient way, the grouping of employees and tasks is often known as the mentalization department.
- Specify who depends on whom in the organization, this linking of departments produces a hierarchy of the organization.
- Establish mechanisms to integrate the activities of the departments into a coherent whole and to monitor the effectiveness of such integration. This process is known as coordination.
Division of labour
- refers to breaking down a complex task into its components, in such a way that people are responsible for a limited series of activities, rather than tasks in general.
- The division of labor creates simplified tasks that can be learned to perform relatively quickly, therefore, comment on the specialization, since each person becomes an expert in a certain job.
Departmentalization: refers to grouping into departments those work activities that are similar or have a logical relationship, for this an organization chart is worked out where the different departments that make up the organization are represented by tables. For example, collaborators can be grouped into purchasing departments, production department, etc.
ORGANIZATION PROCEDURE
-Determination of the general objective -Determination of activities or areas -Establishment of
administrative units
-Development of the organic structure -Structuring of the
organization chart
-Setting of functions and responsibilities
-Preparation of the chart of positions
-Assignment of personnel
IMPORTANCE OF THE ORGANIZATION
- The organization promotes collaboration and negotiation between individuals in a group and thus improves the effectiveness and efficiency of communications in the company, - The organizing function creates defined areas of authority and responsibility in a company, thus improving the development of all the activities that are needed to achieve the proposed objectives and goals.
- It is a means that establishes the best way to achieve the objectives.
- Provides the methods so that activities can be performed efficiently, with the minimum of effort.
- Avoid slowness and inefficiency.
- Reduce or eliminate duplication of efforts, by defining roles and responsibilities.
INSTRUMENTS OF THE ORGANIZATION
- Bylaws
- Organization and functions regulations - Organization and functions
manual
- The organization chart
- Procedures manual
-
Job classifier - Internal work regulations -
Personnel assignment table
- Other regulations
- Unique Procurement
Regulations
- Tender Regulations - Regulations of Contracts
- Loan
Regulations - Security Regulations
- Other Manuals -
Written Communications
Manual - Goods Catalog
Manual - Policies Manual.
STATUTE
- It is the first administrative regulatory document, the same that gives rise to its constitution and legal operation of the company: It contains the basic rules, regarding its constitution, associative and business organization as well as the management system.
- The Statute must be registered in the Public Registries by means of a public deed, issued by a Notary Public.
CONTENT
Chapter l. Background and Constitution
Chapter II. Of Nature: Denomination, Object,
Responsibility. Duration and Address
Chapter III. Economic system. Capital Stock, Status of contributions and / or shares
Chapter IV. Administrative Regime. Of the organs of the company
Chapter V. Of the Balance and Distribution of Profits Chapter VI. Of the Liquidation and Dissolution of the Company Chapter VIl. Transitory dispositions.
REGULATION OF ORGANIZATION AND FUNCTIONS
-It is an organizational technical document, which aims to give legal formality to the structure, both of the associative and business part and, in this way, facilitate the understanding of the role of the company and the responsibility of those who lead it and those who carry out tasks. This regulation is derived from the statutes and is a function of the type of activities of the company and the way in which it develops its activity
ORGANIZATION AND FUNCTIONS MANUAL
- They are operational normative documents that detail the structure, functions, coordination relationships and tasks of the different organic units of an institution; It also establishes the positions and requirements to be filled by people within the organic structure.
OBJECTIVES OF THE ORGANIZATION AND FUNCTIONS MANUAL
- Indicate the basic functions of each organic unit.
- Determine the location and the specific tasks that the positions will fulfill, within the institution.
- Specifies the internal and external hierarchical and functional interrelationships of the unit.
- Provides information to officials and workers about their functions, location within the general structure of the company.
- Serves as a basic instrument for the rationalization of administrative procedures, in accordance with the Law of Administrative Simplification
BUSINESS ORGANIZATION
- General Manager
- He is empowered to make decisions about the company, regarding contracts, costs, financial aspects and the general operation of the company in the future.
- In particular, it is in charge of:
- Legally representing the organization.
- Compliance with the legislation, statutes and agreements made.
- Regularization of the inventories of goods consigned in the inventories.
- Make immediate decisions in the administrative function of the company.
- Sign and authorize to pay workers when the case requires it.
- Meet monthly with managers.
BUSINESS ORGANIZATION
- Head of the Accounting Area
- Its primary mission is to prepare the daily costs of production and direct labor.
- The chief accountant is in charge of:
- Planning, organizing, directing and controlling the proper functioning of the accounting system.
- Prepare the necessary data for the planning and control of the company.
- Settle and record wages and salaries, discounts, deductions and adjustments; in accordance with current legal provisions.
- Head of the Production Area
- He is directly responsible for production, being in charge of the quality control area.
- Specifically, the production manager has the task of:
- Controlling the programming of productive activities.
- Reduce the cost of production to the minimum possible.
- Make and foster optimal relationships.
- Head of the Sales Area
- He is in charge of establishing the marketing policy of the final product (cash or credit), the areas where the product will enter, in what percentages of the final production.
- In addition to these functions, the sales manager has the following objectives:
- The rapid recovery of credit (if any), and maintenance of the necessary liquidity for the production process.
- Train sellers and guide them in safety, product rotation and immediate payment.
- Head of the Purchasing Area
- He is in charge of buying what is necessary according to the demand for the product and production requirements
- At the same time, the Head of Purchasing has the following fundamental tasks:
- Ensuring speed of delivery, product quality and safety in transport.
- Identification of specific suppliers, in such a way that they are converted into safe customers and obtain future benefits, such as discounts, timely supply, etc.
- Make wholesale and retail purchases within a period of no more than 30 days or less than 15, according to the needs of the company
THE ORGANIZATION CHART
- It is the graphic representation of the formal structure that the organization has adopted. It is therefore the representation of the way its parts are arranged and related: in which they are shown:
- to. The main organic units.
- b. The division of functions.
- c. The hierarchical levels,
- d. The lines of authority and responsibility.
- e. The formal channels of communication.
PRESENTATION FORM
GENERAL RECOMMENDATIONS FOR PREPARING ORGANIGRAMS
- In the upper part of the graph, the name of the company and the type of organization chart are written.
- Do not use double lines to represent the audit line.
- The lines of authority or main command must be differentiated from the others with greater thickness
- The year in which the organization chart was approved must be located.
- A rectangle should never be crossed by lines.
- Units of the same hierarchical level must be on the same line.
- In no case should curved lines be used.
EIRL “TOTAL QUALITY” FUNCTIONAL ORGANIZATION CHART
PROCEDURES MANUAL
- It is a specific document aimed at describing in detail the operational actions necessary for the execution of a procedure or service of the company.
- OUTLINE OF A PROCEDURE MANUAL
Presentation
- CHAPTER I General
■ Objectives of the Manual
■ Legal basis
■ Approval
■ Review
- CHAPTER II: General Standards
- CHAPTER III: Description of procedures
In this chapter, all the procedures carried out in the organization are elaborated according to the following guidelines:
■ Title or name of the procedure
■ Unit and / or executing areas
■ Objective or purpose of the procedure
■ Frequency
■ Approximate duration
■ Description of the procedure
02/11/2019 ■ Formats used
CHARGE CLASSIFIER
It is the document that details the functions that correspond to each of the company's workers, with the relationships of authority and organic dependency, coordination, information, authority and / or functional dependency, and others. It also specifies the requirements that a worker must meet to occupy the position, both in terms of training and personal experience and skills.
INTERNAL REGULATIONS
It is the administrative normative document that contains a set of norms, which allows the administration to regulate the Worker-Employer relationship, these norms are subject to the current labor legislation, requiring approval by the Ministry of Labor for their legal implementation.
CONTENT
Presentation
Objective
Purpose
Legal Basis
Scope
Chapter I Admission and Hiring of Personnel
Chapter II Duties and Rights of Workers
Chapter III About the Work Day
Chapter IV Remuneration System
Chapter V Scale of Absences and Sanctions
Chapter VI Permits, Licenses and Absences
Chapter VII Awards and Stimuli
Chapter VIII On Hygiene and Safety
STAFF ALLOCATION TABLE
- It is the technical document that contains the positions with budgetary support assigned by the immediate superior administrative body, and that is ordered according to the hierarchy that it has in the organization chart of the institution or organization.
- The most used types are the "structural" and the "Nominal". The first shows the positions and positions: the second lists the names and surnames of the workers who occupy those positions.
ORGANIZATIONAL DEPARTMENTALIZATION
LINEAR ORGANIZATION
- This type of organization is also known as vertical organization and contains a series of direct relationships between superiors and dependents, based on direct responsibility.
- In this kind of organization, counseling does not work and coordination is only taken by administrative units that are at the same level of authority.
- Advantages:
- There are no conflicts of authority or escapes of responsibility.
- Speed in the fulfillment of orders
- Greater ease in making decisions and in their execution. -It is easier and more useful in small business.
- Disadvantages:
- It leaves the entire organization in a single person, therefore the success or failure of that person will be the success or failure of the organization.
- It does not allow the advice of subordinate personnel.
- The members of the organization become mechanistic.
- It does not promote specialization.
MANAGER
SALES
MANAGER PRODUCTION MANAGER
WORKERS
IN CHARGE OF PURCHASING
PURCHASING ASSISTANT
SELLERS
LINEAR ORGANIZATION SCHEME
FUNCTIONAL ORGANIZATION
- This class of organizations are formed according to the specialty in a certain area of knowledge of each administrative unit, it generally grows horizontally.
- It is called functional because the head of a certain area can work in other related areas, that is, it allows functionality.
ADVANTAGE
- They encourage specialization, allowing greater efficiency
- It allows the coordination of the members of the organization at all levels.
- Decisions are made with a more technical criterion.
- The highest efficiency is obtained from each person.
- Decreases the pressure on a single boss.
DISADVANTAGES
- They do not allow timely and effective control.
-The specialties in more than one area of knowledge and not used rationally can lead to a decrease in effectiveness.
- Duplication of command is very common.
- Difficulty in locating and establishing responsibility.
MANAGER FUNCTIONAL ORGANIZATION SCHEME
LINEAR ORGANIZATION WITH ADVICE
- The two types of organization are combined, taking advantage of the advantages and avoiding the disadvantages inherent to each one.
- Preserves the linear or military organization the authority that is transmitted through a single head. And from the functional, the specialization of each activity in a function.
- It is based on the employment of specialists, posted on their respective sites and considered exclusively on the basis of consultation.
- This type of organization is the most used today.
- Staff
Arises as a result of large organizations and the advancement of technology, having specialists capable of providing expert information and advice to line departments.
- The consultation function does not have the power to give orders but is in charge of advising the members of the line.
- The advisory body can enter the line only for specific tasks and not permanently.
ADVANTAGES AND DISADVANTAGES OF THE MIXED ORGANIZATION
- Advantages:
- It achieves that the expert knowledge influences the way to solve the management problems.
- It makes possible the principle of responsibility and authority, and the Staff specialization.
- Disadvantages:
- It gives confusion if the duties and responsibilities of the consultancy are not well defined.
FLAT ORGANIZATIONS
Hierarchical Organizations and Flat Organizations
- The breadth of control determines whether an organization is flat or hierarchical.
- The hierarchical structure has a narrower breadth and more hierarchical levels.
- The flat structure has a broad general breadth and few hierarchical levels.
STRUCTURE PLAN
ORGANIZATION ORGANIZATION BY COMMITTEES
- Assign various administrative matters to a group of people who meet to discuss and solve the problems entrusted to them; it occurs in combination with another type of organization. There are directive, executive, vigilance, advisory committees, etc.
- Advantages:
- The solutions are more effective.
- The responsibility is shared.
- Allow ideas to be founded.
- Make the most of the experience.
- Disadvantages:
- Decisions are slow.
- It is difficult to dissolve them.
- Managers are released from responsibility.
Matrix Organizations.
- They are used in companies oriented to large-scale projects. The basic idea is to assign the project to a project manager and sustain it in its life cycle. Instead of having a permanent staff at his command, he would request it from the existing staff in the organization to temporarily assign him to his project. Once they do their job, they return to their functional organization.
- Disadvantage:
Authority, prioritization, and resource utilization between functional and project managers are not well defined.
- Advantage:
It is oriented to the final results; professional identification is maintained. Accurately identify the responsibility of each boss
BY FUNCTIONS
- The grouping of activities according to the functions carried out by a company is a very general practice. A company will carry out industrial, commercial or service activities.
- For example, in an industrial company, the fundamental function is that of production, therefore the most important units will correspond to that function (Manufacturing, design, assembly, production control, quality control, etc.)
- In a trading company, the purchasing and sales functions will acquire great importance with respect to the other functions.
DEPARTMENTALIZATION BY FUNCTIONS BY PRODUCTS
The establishment of organizational units by products or product lines is an organizational criterion, which has been gaining great importance in large companies that have a diversified production and based on the different products obtained. This fact is explained because each product requires specialized personnel, facilities and special machinery.
Examples:
In a poultry farm, the fundamental units according to this criterion would be:
Eggs.
Meats.
Incubators
FACTORY BY CUSTOMERS
This type of grouping of activities, places all the emphasis on customers, is used in many kinds of companies, preferably in commercial companies, in terms of purchasing and sales activities. The volume of these operations, the common products that are exchanged allow classifying the following units:
- Wholesalers.
- Retailers
- Retailers
- The companies that provide services, classify the functions according to the branch of activity:
- Farmers.
- Ranchers.
- Industrial.
- Hardware store.
- Constructions, etc.
DEPARTMENTALIZATION BY CUSTOMERS MANAGER
BY TERRITORY OF ACTION
- It is also called territorial or regional departmentalization or geographic location. It requires the differentiation and grouping of activities according to the location where the work will be carried out or the market area that the company will serve.
- Territorial departmentalization is generally used in companies that cover large geographic areas and whose markets are extensive, establish organizational units that allow efficient and coordinated action within a radius of action.
- Geographically dispersed Large Companies
- Applies, generally to the
Production and Sales functions but not to Finance
BY PROCESS OR TEAM
This criterion is based on certain processes that include a set of operations and that must be carried out in a specific place and with specialized equipment. It is frequently used in industrial companies. For example production of canned fruits, The most frequent activities are:
- Gathering.
- Washed.
- Chopped up.
- Prepared
- Packed
- Labeling
- Packed
- Stored.
ADMINISTRATION AND BUSINESS MANAGEMENT COMPANY
The company is a society made up of people, who organize themselves to achieve objectives, aimed at producing services that will satisfy the needs of an intellectual consumer market, expecting a social and economic profit margin. The company in a more exact sense, we define it as a legal, economic and social organization of people, who put their capital and effort, in order to produce an educational service and therefore obtain results whether they are economic or social.
BUSINESS MANAGEMENT
ADMINISTRATIVE PROCESS
STRATEGIC ANALYSIS
• Diagnose the scenario, identify the most probable international and national political, economic and social scenarios, analyze the business agents exogenous to the company (suppliers, clients, government, competition, creditors, etc.), classify the companies, classify the entrepreneurs, etc.
ORGANIZATIONAL MANAGEMENT
• Planning, anticipating the future work of the company and setting the Strategy and the goals or objectives to be met by the company; organize, determine the functions and structure necessary to achieve the objective, establishing authority and assigning responsibility to the people who will be in charge of these functions; directing, consists of making others act to meet the objectives and control, verify what has been done with the proposed objectives.
MARKETING MANAGEMENT
• Detect, capture, ensure, maintain and increase a portion of the market or segment in which to commercialize the good or service produced.
SALES PROMOTION
ADVERTISING
PERSONAL SALE
PUBLIC RELATIONS
MANAGEMENT OF INFORMATION AND COMMUNICATION TECHNOLOGIES
• Apply intra and extra company information and communication systems to all areas of the company, to contribute to optimal decision making in conjunction with the use of the Internet.
FINANCIAL MANAGEMENT
Obtain money and credit at the lowest possible cost, as well as assign, control and evaluate the use of the financial resources of the company, to achieve the maximum performance of these limited resources of the company, keeping an adequate accounting record
HUMAN RESOURCES MANAGEMENT
• It seeks to use the workforce in the most efficient way possible, taking care of the process of obtaining, maintaining and developing personnel. It also seeks integration through motivation, leadership, teamwork, in conjunction with communication and negotiation techniques.
OPERATIONS AND LOGISTICS MANAGEMENT
Supply the goods and services that will meet the needs of consumers, transforming a set of raw materials, labor, energy, supplies, information, etc. in final products duly distributed. Analyze the technological level of production processes from artisanal to automation
FAILURE AND BUSINESS SUCCESS FACTORS
- There are many reasons why a company fails. But this last word is simply understood another, terrible for any manager, and even more so, for anyone who calls himself an entrepreneur: bankruptcy
- Annually, there are thousands of companies that know what it is to close their doors for having reached their situation of economic insolvency. Others, despite not reaching total failure, live in permanent anxiety.
–To know more exactly about this problem we ask ourselves why companies that seemed to be a success, from one moment to another suddenly begin to go downhill)
FAILURE FACTORS
THE REASONS FOR A FAILURE FAILURE
DUE TO LACK OF VISION.
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