There is no perfect sphere of control. Many variables within the organization itself and in the external environment can influence it. Moreover, neither the scope of control nor the relative height of the organization's structure is a function of the size of the organization. For example, the Roman Catholic Church and the Syrah retail company, although vastly different in purpose and scope, are known for their broad scope of control and structure with few
The modern imperialism of the US oil monopolies inside the country is not limited to expansion in the seizure of resources and the extraction of oil and gas; now, the coal and even uranium industries are increasingly included in the sphere of control of the oil monopolies. So, it became known that already in 1968 in the coal industry.
Using the values of controlled operating profit given above, and assuming that all other values are within the control of the unit managers, the adjusted COSE and RI can be obtained.
In practice, the main benefits of using standard costs have been in the areas of cost control and profit planning. This, of course, has survived to this day. Today, however, when all the data on cost rates are combined in computer files, there are many other associated benefits. The target cost data file can be used in conjunction with forecasting physical production volumes for the year and beyond to identify potential production capacity and human resources. Capacity problems can be predicted and identified by shop floor and by type of equipment. The shortage (or surplus) of the labor force is established in quantitative terms and by the level of qualifications.
The sphere of control reflects how an individual looks at the source of the factors that determine his actions. If a person believes that his behavior depends on himself, then in this case he is characterized by the presence of an internal sphere of control (introverts). If he believes that everything depends on chance, external circumstances, the actions of other people, then he is considered to have an external sphere of control (extroverts). Introverts have better control over their actions, are more results oriented, more active, more satisfied with their work. They like an informal management style, they like to influence others, but they do not like to influence themselves, they like to take leadership positions. Extroverts, on the other hand, prefer formal structures, preferring to work under directive guidance. If they occupy leading positions, then they widely use methods of force.
Analysis and generalization of the practice of working with organizations, identified methods of tax evasion, development of proposals for improving the legal framework and organizing the work of tax authorities in the field of control over the production and circulation of ethyl alcohol, alcoholic, alcohol-containing and tobacco products.
When carrying out law enforcement activities to implement the assigned competence in the field of control over compliance with legislation governing the circulation of alcoholic and alcohol-containing products, the tax authorities should take into account the general provisions of the procedure for licensing the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products. According to the current legislation, legal entities and individuals registered in accordance with the established procedure can engage in activities specified in the law only on the basis of a license - a special permit (right) to carry out this type of activity, subject to mandatory compliance with licensing requirements and conditions.
Powers in the field of control over cash circulation
Let me give you a final example of those issues that expand the sphere of control. Most people do not know when to ask the question how, and when the question is whether I can. We all understand how important it is to be able to make quick decisions. But most people find it difficult. Why Because they are already pondering what to do. How - good question but not when you have to make a decision. Let's go back one more time to my departure to California. Imagine that even at home I would start asking myself how everything would turn out there if I left. Do you think, in that case, I would have decided to move
Should the corporation be organized as a vertical structure with many levels of management, each of which has a narrow sphere of control (i.e., a small number of accountable employees), or as a horizontal one - with fewer levels of management, each of which has a wide sphere of control, in order to give greater freedom of action for subordinates
Determination of the parameters to be assessed, in other words, the areas of control.
In the current century, the centralized system of banking business has come to be regarded not only as a familiar phenomenon, but even as one of the prerequisites for achieving the highest stages of economic development. Belief in the desirability of central banks has become universal. V Lately revealed the desire to strengthen the spheres of control through the establishment of international banking institutions, as well as through international cooperation between the already existing central banks of different states. However, there is no systematic study of the reasons for the supposed superiority of the centralized banking system over its alternatives.
State and non-state types of control, despite the similarity of methods, differ significantly in their ultimate goals. the main objective state control - to maximize the flow of resources to the treasury and minimize state management costs, and non-state (mainly intrafirm) - on the contrary, to minimize their allocations c. benefit of the state and others, costs in order to increase the rate of return on invested capital. At the same time, both areas of control are limited by the legal framework of the laws in force.
One of the main problems in the field of control over the use of municipal
Sphere of control 2. The level of interrelation of individual departments 3. The level of uncertainty of the tasks being solved 4. The level of complexity of the tasks being solved Wide Narrow -
The number of employees reporting to one manager is an area of control. If a fairly large number of employees are subordinate to one manager, then this forms a so-called flat management structure. If few employees are subordinate to one manager, then a multi-level structure usually arises.
The structure issues will be discussed in detail in the hotel chapter (Chapter 5). When considering internal variables, we will restrict ourselves to two concepts related to the management (change) of the structure of the specialized division of labor and the sphere of control.
The sphere of control is the number of employees subordinate to one manager. If a fairly large number of people are subordinate to one leader, then they talk about a wide area of control, which leads to the formation of a flat management structure. If the sphere of control is narrow, then we can talk about a multi-level structure. There is no ideal sphere of control, since many variables of the organization itself and in the external environment can influence its magnitude.
Explain the role of the specialized division of labor and the scope of control (sphere of control) in defining and changing the structure of the organization.
No liability can arise from failure to comply with any of the provisions of this Contract if this failure was due to reasons beyond the control of the non-performing Party, such as natural disasters, extreme weather conditions, fires, wars, strikes, military actions, civil unrest, intervention by the authorities, an embargo (hereinafter referred to as force majeure), but not limited to them, for a period starting from the moment the non-performing Party was declared force majeure and ending when the force majeure ends or would end if the non-performing Party took action which she could actually take to get out of force majeure. Force majeure automatically extends the deadline for fulfilling obligations under this Contract. If force majeure lasts more than 6 (six) months, then either Party may terminate this Contract in respect of the Equipment and / or Goods that have not been delivered at the moment.
Clearly, the marketing communications manager's sphere of control must extend far beyond the firm's advertising budget. Its task is to make sure that both the company as a whole and all its employees instill in target consumers a sense of confidence in the quality of the goods, high class of service and profitable prices of the enterprise1.
As early as the early twentieth century, the most astute corporate executives, like General Motors' Alfred Sloan Jr. and colleagues at Procter & Gamble, DuPont, and Sire, realized that the traditional functional structure no longer met their needs. When analyzing the size to which these organizations had grown or planned to grow in the near future, it became obvious that further use of the functional diagram of the organization would lead to serious problems. If a huge firm tries to squeeze all its activities into three or four main departments, then in order to reduce the sphere of control of each manager to an acceptable scale, each such department must be divided into hundreds of divisions. In turn, this leads to the fact that the chain of commands becomes incredibly long and uncontrollable. In addition, many of these large firms have expanded their operations to large geographic regions, making it very difficult for a single leader in a functional area (such as marketing) to control all of these activities. The situation was complicated by the increased diversification of the activities of a number of firms. In previous centuries, even very large firms such as the Austind Company did business in only one or two areas. Modern firms very often conduct operations in completely different areas of activity. This is especially true for conglomerates such as Gulf & Western, ATT, Lytton Industries.
The sphere of control and management of the departmental RMS NID of the Ministry of Education of the Russian Federation should include the results obtained by subordinate universities and scientific organizations in the course of scientific, scientific and technical, scientific and methodological and innovative activities at all stages of the innovation cycle. The result of management at the ministry level is the optimization of the allocation of allocated resources, first of all, budgetary funds allocated to support fundamental and exploratory research, applied and experimental research, experimental design and technological work (OECD) and innovative developments from all existing in the Ministry of Education of Russia science in the context of articles of the current budget classification. Obviously, the task of optimizing the resource support of the NID should be solved for specific projects, taking into account additional extra-budgetary funds and resources attracted by universities or other project executors. The stages of the innovation cycle and possible sources of their financing at the university are presented in enlarged form in Fig. 1. Here are the main functions of the RMS NID, implemented for each project at the university level. At each stage, it is necessary to formulate and record the received re-
Russian legislation, like the legislation of most states, provides for special rules governing cash circulation. These rules are established with the aim of protecting the rights of consumers of goods and services, the fiscal interests of the state, and ensuring financial (including tax) discipline. Therefore, judicial practice fairly considers legal relations in the field of control over transactions with cash real capital, lies outside the sphere of control of the central or any other banks. Against this view, he cites the following argument (94) “By creating additional credit for entrepreneurs, bankers (as explained in Chapter 13, part 1) forcefully collect real values from the public, which increases the flow of real capital at the disposal of entrepreneurs and causes a fall in the real rate of interest on both long-term and short-term loans In a word, it is true that the bank price in the money market is mechanically linked to the real rate of interest on long-term loans, but it is not true that this real rate is determined by conditions that lie entirely outside the control of bankers ".
If we get used to, having solved one problem, immediately challenge another, more difficult, our sphere of control expands rapidly. I believe that this refers to the very nature of man and to his predestination. We feel best when we set foot on new ground, give all our strength to achieve success and achieve our goal. A boat in the harbor is safer than at sea, but it wasn't built for that. While we all have a need for security, the need for adventure and variety is just as strong. We are growing at a time when we decide on the unknown and set ourselves new requirements. The people who have the largest area of control are almost constantly outside their comfort zone. They are GKyHHo, if one crisis is not replaced by another. As an athlete,
Imagine Willy Wintzig1 and Richard Riesig2 work in a department of a large concern. If Willie is only interested in his department, his sphere of control is apparently not very large. Meanwhile, Richard Risig is thinking about the direction of the concern, attracting new and strengthening old ties with existing customers, and marketing. To have more influence, he maintains contacts with other departments. He doesn't feel satisfied until he visits the headquarters of the firm. He knows what competition is. So the sphere of influence of Mr. Rizig is gradually increasing.
There are four possibilities to expand your control.
It should be emphasized that the indicated spheres of control by the levels of the hierarchy are conditional and are observed in a relatively calm environment. When a threatening situation matures or is created somewhere (for example, the absence of an export oil product at a specific sea transshipment oil depot) generalized consumers can be specified and the attention of any level necessary in this situation is drawn to them.
At the same time this direction FCSM activity does not fully correspond to the actual state of legality in this area. Control is weak, the overwhelming majority of issuers and professional participants are not checked at all. Checks are carried out mainly on the basis of available signals of violations in the activities of issuers and self-regulatory organizations professional participants in the securities market. However, practice shows that it is not uncommon for a violation of the current legislation to occur by agreement of the parties and, accordingly, the FCSM does not receive a signal, as a result of which the violation remains without a response from the supervisory authority.
By controlling, managers in German-speaking countries understand the guiding concept of effective enterprise management and ensuring its long-term existence. Controlling focuses on the analytical functions of the control area in the enterprise. She analyzes the reporting of the enterprise, determines the directions of its development, thus providing
See pages where the term is mentioned Sphere of control
: Management in Organizations (1995) - [A wide sphere of control is if a fairly large number of people are subordinate to one leader, as a result of which this sphere has a flat management structure.
A narrow sphere of control - few people are subordinate to each leader, i.e. multilevel structure.
A task is a prescribed job, a series of jobs, or a part of a job that must be completed in a predetermined manner and within a predetermined time frame. Tasks are assigned not to the employee, but to his position. But they are considered as a necessary contribution to the achievement of the goals of the organization. It is believed that if the task is completed in this way and within the time frame prescribed, the organization will be successful.
Tasks are divided into three categories:
work with people (the task of the master);
work with objects (machines, raw materials, tools);
Work with information (tasks of the corporation treasurer).
Technology. Charles Perrow describes technology as a means of transforming raw materials - whether people, information, or physical materials - into desired products and services. Lewis Davies offers a broad, similar description: "Technology is the combination of skills, equipment, infrastructure, tools, and related technical knowledge necessary to bring about the desired transformations in materials, information or people." Thus, technology is a means of converting materials, raw materials, energy and information into the desired end product.
Challenges and technology are closely related. Completing the task involves using specific technology as a means of transforming material.
People are central to any management model, including a situational approach.
Three aspects of the human variable in a situational management approach:
a) the behavior of individuals;
b) the behavior of people in groups;
c) the nature of the leader's behavior, the functioning of the manager as a leader and its influence on the behavior of individuals and groups.
Abilities are individual qualities of a person that contribute to successful activities, can be inherited (intellectual abilities and some physical data), and are also acquired with experience. Propensity and giftedness are closely related to ability. Abilities are manifested and formed in activity.
Values are shared beliefs, beliefs about what is good or bad, or what is indifferent in life. Acquired through training.
Needs are an internal state of a psychological or physiological feeling that something is inadequate.
Expectations. Based on past experience and assessment of the current situation, people form expectations about the results of their behavior. Consciously or subconsciously, they decide how likely or how unrealistic it is to accomplish something meaningful for them. These expectations have a significant impact on their behavior today.
Perception is the intellectual awareness of stimuli received from sensations. Perception determines whether a person has a need and what his expectations are in a given situation.
Predisposition, giftedness are closely related to ability. A predisposition is a person's existing potential in relation to performing a specific job. Management propensity is very important in identifying candidates for management training.
Attitude, as defined by psychologist Deril Bem, is "what we like and what we don't like, like our dislike or attachment to objects, people, groups, or any perceived aspect of our environment." Relationships shape our biased perceptions of the environment and thereby influence behavior.
Sociotechnical subsystems. External variables strongly affect the organization. And the interconnectedness of internal variables would be more correct to consider as a model of internal socio-technical subsystems of the organization. Internal variables are called sociotechnical subsystems, because have a social component (people) and a technical component (other internal variables).
External environment of the organization
The external environment of an organization includes elements such as customers, competitors, government agencies, suppliers and their technologies, financial institutions and sources labor resources, socio-cultural environment, relevant in relation to the operations of the organization.
Characteristics of the external environment
Factor interconnection: the force with which a change in one factor affects other factors
Complexity: the number and variety of factors that significantly affect the organization
Mobility: the relative rate of change in the environment
Uncertainty: the relative amount of information about the environment and confidence in its relevance
The interconnectedness of environmental factors is the level of force with which a change in one factor affects others. Just as a change in any internal variable can affect others, a change in one environmental factor can cause a change in others.
The complexity of the external environment is understood as the number of factors to which the organization is obliged to respond, as well as the level of variance of each factor.
The fluidity of the environment is the speed with which changes occur in the organization's environment. Many researchers point out that the environment of modern organizations is changing at an accelerating rate.
Uncertainty of the external environment is a function of the amount of information that an organization (or a person) has about a specific factor, as well as a function of confidence in this information. If there is little information or there are doubts about its accuracy, the environment becomes more uncertain than in a situation where there is adequate information and there are reasons to consider it highly reliable.
Wednesday direct impact includes factors that directly affect the operations of the organization and are directly affected by the operations of the organization.
Suppliers. Organization is a mechanism for converting inputs to outputs. The main types of inputs are materials, equipment, capital, labor. The relationship between an organization and a network of suppliers providing inputs for specified resources is one of the clearest examples of the direct impact of the environment on an organization's operations and performance.
Consumers. The very survival and justification of the existence of an organization depends on its ability to find a consumer of the results of its activities and satisfy his needs. The business value of consumers is clear. It is no coincidence that they say: "The consumer is the king of the market."
Competitors are an external factor, the influence of which cannot be disputed. The management of each company understands that if the needs of consumers are not met as effectively as competitors are doing, the company will not stay afloat for long.
Laws and government bodies... Each organization has a specific legal status, being a sole proprietor, a company, a corporation, etc., and this is what determines how an organization can conduct its business and what taxes it must pay. The state of legislation is often characterized not only by its complexity, but also by fluidity, and sometimes even by uncertainty.
Organizations are required to comply not only with federal and state laws, but also with the requirements of the authorities state regulation... These bodies ensure the enforcement of laws in their respective areas of their competence, as well as introduce their own requirements, often also having the force of law.
The indirect impact environment is the factors that do not directly affect the operations of the organization, but still affect them indirectly. The indirect environment is usually more complex than the direct environment.
Technology is both an intrinsic variable and an extrinsic factor of great importance. Technological innovations affect the efficiency with which products can be manufactured and sold; the rate of obsolescence of the product; how you can collect, store and distribute information; what kind of services and new products consumers expect from the organization.
The state of the economy affects the cost of all inputs and the ability of consumers to buy certain goods and services; can greatly affect the organization's ability to obtain capital for its needs.
Sociocultural factors. Any organization operates in at least one cultural environment. Therefore, socio-cultural factors, among which attitudes, life values and traditions prevail, affect the organization.
Political factors. Certain aspects of the political environment are of particular importance to leaders. One of them is the sentiment of the administration, legislatures and courts in relation to business. Another element of the political environment is special interest groups and lobbyists.
32. Organizational structure of the organization's management. Types of organizational structures.
The organizational structure of management is a set of elements, links, levels of management and their interconnection and subordination, which serve to achieve the set goals. The basic principles affecting the org. structure:
1) Division of labor (specialization) - in accordance with this principle, all employees perform the work in which they are more qualified.
2) Hierarchy (director (deputy director (shop manager (foreman (worker)), this chain describes the relationship of rights and responsibilities, uniting managers and subordinates with ties that cover the entire organization.
3) Unity of management - each employee of the organization is responsible to one boss,
4) communication channels - reflects functional connections. Orders, orders go from top to bottom, and the rest of the infa is the other way around.
5) Structural division - it is difficult to manage a large team if it is not divided into small groups.
6) Hierarchical levels - org scheme. org structure shows the levels of management, existing additions in it in the chain of command and reporting relationship.
Any organization has an internal and external environment.
Internal variables are situational factors within an organization.
The main variables within the organization itself that require management attention are goals, structure, objectives, technology and people.
Goals- specific end states or desired result that the group seeks to achieve by working together. Different organizations have different goals. For example, in order to make a profit, a “business” must formulate goals in areas such as market share, new product development, quality of service, leadership training and selection, and social responsibility. Non-profit organizations having a variety of goals, they pay more attention to social responsibility.
The objectives of the divisions should make a concrete contribution to the objectives of the organization as a whole, and not conflict with the goals of other divisions.
Structure is an internal variable.
The structure of an organization is a logical relationship between levels of management and functional areas, built in such a form that allows you to most effectively achieve the goals of the organization.
There are two main concepts of structure:
- Specialized division of labor
- Sphere of control
Specialized division of labor
In most modern organizations, the division of labor does not mean a random distribution among the available people. Characteristic feature is a specialized division of labor - the assignment of this work to specialists, i.e. for those who are able to perform it best of all from the point of view of the organization as a whole.
In all but the smallest organizations, there is a horizontal division of labor along specialized lines. If an organization is large enough, professionals are usually grouped together within a functional area.
The choice of functional areas determines the basic structure of the organization and, to a large extent, the possibilities for its successful activity. The effectiveness and appropriateness of the ways in which work is divided among people - from top to bottom, down to the very first level of the organization - in many cases determines how productive an organization can be compared to its competitors. Equally important is the way in which the vertical division of labor is carried out.
Vertical division of labor, i.e. the definition of coordination work from the direct execution of tasks is necessary for successful labor work... The deliberate vertical division of labor results in a hierarchy of management levels. The central characteristic of this hierarchy is the formal subordination of individuals at each level. Hierarchy permeates the entire organization, descending to the level of non-management personnel.
Rice. 5.1. Organization structure
Sphere of control is an important aspect organizational structure.
A wide sphere of control is if a fairly large number of people are subordinate to one leader, as a result of which this sphere has a flat management structure.
A narrow sphere of control - few people are subordinate to each leader, i.e. multilevel structure.
Task is a prescribed work, a series of works or a part of a work that must be performed in a predetermined manner and within a predetermined time frame. Tasks are assigned not to the employee, but to his position. But they are considered as a necessary contribution to the achievement of the goals of the organization. It is believed that if the task is completed in this way and within the time frame prescribed, the organization will be successful.
Tasks are divided into three categories:
- work with people (the task of the master);
- work with objects (machines, raw materials, tools);
- work with information (tasks of the corporation treasurer).
Rice. 5.2. Interdependence of positions, structure and goals
Rice. 5.3. Flat organization structure
Technology. Charles Perrow describes technology as a means of transforming raw materials - whether people, information, or physical materials - into desired products and services. Lewis Davies offers a broad, similar description: "Technology is the combination of skills, equipment, infrastructure, tools, and related technical knowledge necessary to bring about the desired transformations in materials, information or people." Thus, technology is a means of converting materials, raw materials, energy and information into the desired end product.
Challenges and technology are closely related. The accomplishment of the task involves the use of a particular technology as a means of transforming the material.
Rice. 5.4. High organizational structure
Rice. 5.5. Interrelation of technology, tasks, structure and goals
People are a central factor in any management model, including a situational approach.
Three aspects of the human variable in a situational management approach:
a) the behavior of individuals;
b) the behavior of people in groups;
c) the nature of the leader's behavior, the functioning of the manager as a leader and its influence on the behavior of individuals and groups.
Rice. 5.6. Factors affecting individual behavior and performance
Capabilities- these are the individual qualities of a person that contribute to successful activities, can be inherited (intellectual abilities and some physical data), and are also acquired with experience. Propensity and giftedness are closely related to ability. Abilities are manifested and formed in activity.
Values- these are common beliefs, beliefs about what is good or bad, or what is indifferent in life. Acquired through training.
Needs- This is an internal state of a psychological or physiological sensation of insufficiency of something.
Expectations... Based on past experience and assessment of the current situation, people form expectations about the results of their behavior. Consciously or subconsciously, they decide how likely or how unrealistic it is to accomplish something meaningful for them. These expectations have a significant impact on their behavior today.
Perception is an intellectual awareness of the stimuli received from sensations. Perception determines whether a person has a need and what his expectations are in a given situation.
Predisposition, giftedness are closely related to ability. Predisposition- This is the existing potential of a person in relation to the performance of any specific work. Management propensity is very important in identifying candidates for management training.
Attitude, according to psychologist Deril Bem, "what we like and what we don't like, like our dislike or attachment to objects, people, groups, or any perceived aspect of our environment." Relationships shape our biased perceptions of the environment and thereby influence behavior.
Rice. 5.7. Interconnectedness of internal variables
Sociotechnical subsystems. External variables strongly affect the organization. And the interconnectedness of internal variables would be more correct to consider as a model of internal socio-technical subsystems of the organization. Internal variables are called sociotechnical subsystems, because have a social component (people) and a technical component (other internal variables).
External environment of the organization
The external environment of the organization includes such elements as customers, competitors, government agencies, suppliers and their technologies, financial institutions and sources of labor resources, socio-cultural environment, relevant in relation to the operations of the organization.
Characteristics of the external environment
- Factor interconnection: the force with which a change in one factor affects other factors
- Complexity: the number and variety of factors that significantly affect the organization
- Mobility: the relative rate of change in the environment
- Uncertainty: the relative amount of information about the environment and confidence in its relevance
Rice. 5.8. Model of the influence of the external environment on the organization
The interconnectedness of environmental factors is the level of force with which a change in one factor affects others. Just as a change in any internal variable can affect others, a change in one environmental factor can cause a change in others.
The complexity of the external environment is understood as the number of factors to which the organization is obliged to respond, as well as the level of variance of each factor.
Mobility of the environment is the speed with which changes occur in the organization's environment. Many researchers point out that the environment of modern organizations is changing at an accelerating rate.
Uncertainty of the external environment is a function of the amount of information that an organization (or a person) has about a specific factor, as well as a function of confidence in this information. If there is little information or there are doubts about its accuracy, the environment becomes more uncertain than in a situation where there is adequate information and there are reasons to consider it highly reliable.
The direct impact environment includes factors that directly affect the operations of an organization and are directly affected by the operations of the organization.
Rice. 5.9. Direct exposure environment
Suppliers. Organization is a mechanism for converting inputs to outputs. The main types of inputs are materials, equipment, capital, labor. The relationship between an organization and a network of suppliers providing inputs for specified resources is one of the clearest examples of the direct impact of the environment on an organization's operations and performance.
Consumers. The very survival and justification of the existence of an organization depends on its ability to find a consumer of the results of its activities and satisfy his needs. The business value of consumers is clear. It is no coincidence that they say: "The consumer is the king of the market."
Competitors is an external factor, the influence of which cannot be disputed. The management of each company understands that if the needs of consumers are not met as effectively as competitors are doing, the company will not stay afloat for long.
Laws and government agencies. Each organization has a certain legal status, being a sole proprietor, company, corporation, etc., and it is this that determines how the organization can conduct its business and what taxes it must pay. The state of legislation is often characterized not only by its complexity, but also by fluidity, and sometimes even by uncertainty.
Organizations are required to comply not only with federal and state laws, but also with the requirements of government regulatory agencies. These bodies ensure the enforcement of laws in their respective areas of their competence, as well as introduce their own requirements, often also having the force of law.
Indirect impact environment- these are factors that do not directly affect the operations of the organization, but still affect them directly. The indirect environment is usually more complex than the direct environment.
Rice. 5.10. Indirect impact environment
Technology is both an internal variable and an external factor of great importance. Technological innovations affect the efficiency with which products can be manufactured and sold; the rate of obsolescence of the product; how you can collect, store and distribute information; what kind of services and new products consumers expect from the organization.
The state of the economy affects the cost of all inputs and the ability of consumers to buy certain goods and services; can greatly affect the organization's ability to obtain capital for its needs.
Sociocultural factors. Any organization operates in at least one cultural environment. Therefore, socio-cultural factors, among which attitudes, life values and traditions prevail, affect the organization.
Political factors. Certain aspects of the political environment are of particular importance to leaders. One of them is the sentiment of the administration, legislatures and courts in relation to business. Another element of the political environment is special interest groups and lobbyists.
International environment
Development of international business management. International business management extends to areas of activity that are associated with the movement of resources, goods, services and work force across national borders. Movable resources include raw materials, capital, people and technology. If we talk about goods, then these can be finished components, products, semi-finished products. The category of relocatable services includes accounting, legal and banking activities. Specialists are also moving - primarily technical and managers.
Varieties of international business
Export. The easiest way to enter international markets is to export products, i.e. its sale to other countries.
Licensing. An enterprise can sell a license to manufacture its products foreign company or to the government through a royalty agreement.
Joint ventures. Organization joint venture is that two or more companies or states invest in production facilities. The participants are equal partners in the business and profit depending on the share of the shareholding of each in the joint venture.
Direct investment. Strongest commitment international business arises when the management decides to release the products of their company abroad and retain full control over production, marketing, finance and other key functions.
Multinational corporations own and operate businesses in other countries.
International factors
Culture. Culture is understood as the dominant system of values, beliefs, customs and prevailing attitudes shared by all in society. Every society has its own culture, the influence of which affects the style of everyday life.
Economy. Some of the economic factors that can affect doing business abroad include: wages, transportation costs, exchange rate, inflation and bank interest rates, GNP, taxation and general rate economic development... There are other factors related to the international environment, although not of a purely economic nature: population size, levels of literacy and professional training, quality and quantity natural resources, the level of technology development, features of the competition.
Laws and government regulation. Just as organizations depend on domestic laws, so do firms that act on international markets are forced to reckon with many laws and regulations.
Political situation. The domestic market is influenced by political events and decisions, similarly, political factors can affect international business operations.
Experience shows that successful organizations define in advance the purpose of the activity, which should be realized and supported by all members of the company. The mission, policy and goal of the company are defining and contribute to dynamism and a high level of activity, longevity, consumer orientation. If the goal is supported by the whole team, therefore, it is achievable, real.
During the war, the Australian psychologist Franke, having ended up in a German concentration camp (Jew), studied the psychology of survival. He found that it was more successful with a relatively the same conditions prisoners who had a clear goal of survival (to escape, wait for the liberators, etc.) survived. The goals must be realized and real. The success of the organization is ensured by the unity of all employees to achieve the goal; a leader-manager, providing attention to workers and consumers, if necessary, who knows how to take risks; involve everyone in the business; development of human and material potential; investing in people.
The number of persons reporting to one leader represents the area of control. Sphere of control is an important aspect of an organizational structure. If a large number of people report to one leader, then there is a wide sphere of control, which results in a flat management structure. If a small number of employees are subordinate to each manager, i.e. when the sphere is control
For narrow, then in this case we can talk about a multi-level structure. Therefore, large organizations with flat structures have fewer levels of management than organizations of comparable size with multi-level structures.
The regular reproduction of activities such as assigning tasks, directing and coordinating the actions of employees forms the structure of the organization, and potential opportunity their various combinations explains the differences in organizational structures.
Structure is not something given once and for all. It is constantly evolving. When it comes to organizational structures, we mean the distribution and coordination of labor processes. The structure of an organization is a set of methods for dividing the labor process into specific work tasks and coordinating their implementation (5, p. 526).
The concept of an organizational structure includes not only tasks performed within it, but also activities coordinated by employees outside the organization. Many of the work traditionally performed by the organization itself is now being outsourced to specialized firms, which implies close collaboration between independent firms and the transformation of traditional organizational boundaries. AAAAAAAAAAAAAAAAAAAAAAAAAAA
After choosing a strategy and developing a subsequent plan, management should conduct a thorough review of the organization's structure to determine if it contributes to the achievement of corporate goals. Strategy defines the structure. When implementing or changing strategy, management should always consider its relationship to structure and combine organizational structure formation and planning. The structure is based on strategy and should be as effective as possible in terms of the overall situation.
The organization is believed to exist in external environment, which shapes its strategy, technology, scale and level of innovation. These situational factors, in turn, determine the required structure, that is, the structure that the organization must adopt to support production activities.
Proponents of the situational approach assume that the structure of successful organizations is consistent with the adopted strategy and the external environment in which they operate. Effective management organization involves the formulation of an adequate strategy, as well as the development of structures that contribute to its implementation by stimulating innovation, corresponding to the conditions of the external environment. The main emphasis is on determinism (form is determined by the external environment) or functionalism (form contributes to the effectiveness of the organization). Organizational forms evolve gradually as managers become aware of the inefficiency of functioning mechanisms. They are modified to suit various aspects of the desired structure.
Supporters of the situational approach believe that managers have the right to choose, but limited by the need to adapt the structure to external conditions, which determines the acceptable results of the organization's activities (5, p. 600-602).
The decision to choose the structure of the organization as a whole is almost always made by senior management. The leaders of the lower and middle management only help him by providing necessary information, and in larger organizations - and offering the structure of subordinate units, corresponding general structure organization selected by senior management.
In a broad sense, the task is to choose the structure that best meets the goals and objectives of the organization, as well as the internal and external factors... The "best" structure is the one that best allows the organization to effectively interact with the external environment, efficiently and expediently distribute and direct the efforts of its employees and, thus, meet the needs of customers and achieve their goals with high efficiency (2, p. 331).
There is no definite answer to the question of which method is best for building the structure of the organization. The best organizational structure will be one that is appropriate for the size, dynamism, complexity, and people of the organization.
One of the major mistakes too many firms make is that they simply impose a new strategy on the existing structure of the firm. It should not be. The structure depends on the strategy, and the stage of formation of the structure in the planning process may represent the most important stage in the successful implementation of the strategic plan (2, p. 303).
Objective factors and conditions for determining the diversity of organizational structures:
The size of the enterprise (small, medium, large);
Specialization in the production of one type of product or a wide range of products in various industries;
The nature of the products (type of production);
The scope of the enterprise (organization for the local, national or foreign market);
The scale of foreign activities and the forms of its implementation;
type of monopoly association (concern, financial group, holding).
In addition to the listed factors influencing the choice of a limited structure, one can note the dynamism of the external environment, technology, attitude to the organization of managers and employees.
The dynamism of the external environment is a very strong factor in determining which organizational structure an organization should choose. If the external environment is stable, then the organization can successfully apply mechanistic organizational structures.
In the case of a dynamic external environment, the organizational structure should be organic.
The impact of technology on the organizational structure is manifested in the following:
1) the structure is tied to the technology used in the organization. The number of structural units and their mutual arrangement strongly depend on the technology used in the organization;
2) the organizational structure should be built in such a way that it allows for technological upgrades.
Organizational structure largely depends on how managers relate to its choice, what type of structure they prefer and how willing they are to introduce non-traditional forms of building organizations.
Signs of an optimal structure:
Few levels of leadership;
Small subdivisions or autonomous groups with highly qualified personnel;
Targeted work for consumers;
Foreseeing changes or quickly reacting to them;
High productivity and low costs - high efficiency.
Since the purpose of the organizational structure is to ensure the achievement of the organization's objectives, the design of the structure should be based on strategic plans organization and variables of the external environment in which it carries out its operations. The structure of the organization must be such as to ensure the implementation of its strategy. Since the strategy and the external environment change over time, appropriate changes are needed in organizational structures, the use of new organizational forms structures. It is necessary to widely use the principles and methods of designing the organizational structure of management based on systems approach... The consistency of the approach to the formation of the structure is manifested in the following: not to lose sight of any of the management tasks, without the solution of which the implementation of goals will be incomplete; to identify and interconnect in relation to these tasks the entire system of functions, rights and responsibilities along the vertical of management; to investigate and organizationally formalize all connections and relationships along the horizontal management; to provide a limited combination of vertical and horizontal control, meaning finding the optimal ratio of centralization and decentralization in management for these conditions (2, p. 272-295).
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Integration is an opportunity for coordinated actions of many people
The need for coordination, which always exists, becomes truly urgent when work is clearly divided both horizontally and vertically, as is the case in large modern organizations... If management does not create formal coordination mechanisms, people will not be able to do the work together. Without appropriate formal coordination, different levels, functional areas and individuals can easily focus on their own interests, rather than on the interests of the organization as a whole.
That. we can say that the process of integration is a process of achieving unity of efforts of all subsystems of the organization for the implementation of its tasks and goals.
Unity of effort does not give organizational units the ability to pull it in different directions, diffuse its strengths and capabilities and achieve the overall goals of the organization.
In order to integrate the organization effectively enough, senior management must constantly keep in mind the overall goals of the organization and just as constantly remind employees to focus their efforts on precisely the common goals. It is not enough that every department and every employee of the organization will work effectively on its own. Management must view the organization as an open system.
The pattern of the integration process is that the more integrated the firm, the more successful it is.
Methods for achieving effective integration. For integrated organizations operating in a sustainable environment and using technology mass production, methods related to the development and establishment of rules and procedures, hierarchical management structures are suitable. Organizations operating in a more volatile environment and using a variety of technological processes and technology for the release of individual products, it is often considered more correct to carry out integration through the establishment of individual relationships, organizing the work of various committees and holding interdepartmental meetings.
If integration implies the unity of efforts and goals, then the process of differentiation, on the contrary, implies the distribution of these efforts and goals within the organization between its various components.
Differentiation should be maximized within the framework of such organizations whose activities are based on creativity (for example, some research institute),
The regularity of the differentiation process lies in the fact that the more complex the organization's environment, the greater the differentiation.
Concentration of production and consolidation of the company contributes to the differentiation of functions between different levels of the management system.
So, for example, the functions of long-term planning, technical re-equipment should be solved centrally at the upper levels of the control system, and the issues of operational management at its lower levels.
Differentiation of problems solved centrally and decentralized is reflected in the structure of the management apparatus. So, the differentiation of the development of planned indicators at one time led to the expansion of the economic services of the enterprise.
The specialized division of labor is directly related to the processes of integration and differentiation.
In order for an organization to achieve its goals, tasks must be coordinated through a vertical division of labor. Vertical layout is shown in the figure.
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The top-level manager manages the activities of middle and lower-level managers, that is, in a formal sense, he has more power and status. Vertical differentiation is associated with the hierarchy of the organization in depth. The more steps there are between the highest level and operational workers, the more complex the organization is. The vertical structure is composed of levels of power, arranged in a hierarchical order. Power is distributed among the positions and the leaders in these positions. The figure also shows the position of workers in a vertical structure. The goal is seen as a guideline for the flow of connections and power.
Horizontal differentiation reflects the degree of division of labor between individual units. The more various areas in the organization that require specialized knowledge and skills, the more horizontally complex it is. Horizontal specialization aims at differentiating functions and covers: defining work and defining the relationship between different kinds works that can be performed by one or many different persons. The horizontal division of labor means that the top-level manager has direct control over three managers: the middle-level manager (production), the middle-level manager (accounting), and the middle-level manager (marketing). In turn, RSUs (middle-level managers) have direct control over the respective RNUs (managers lower level), and those are directly above a certain number of performers. This can be viewed as functionalization (this is the variety of tasks that must be performed in order to achieve the goals of the organization), as a result of which certain specialized units are formed.
Drawing... Diagram of the horizontal division of labor.
Sphere of control.
The number of persons subordinate to one manager constitutes the sphere of control. Sphere of control is an important aspect of an organizational structure. If a fairly large number of people are subordinate to one leader, then we are talking about a wide area of control, which results in a flat management structure. If the sphere of control is narrow, i.e. few people are subordinate to each leader, we can talk about a multi-level structure. In general, large, flat organizations have fewer levels of management than organizations of comparable size with tiered structures. There is no perfect sphere of control. Many variables within the organization itself and in the external environment can influence it. Moreover, neither the scope of control nor the relative "height" of an organization's structure is a function of the size of the organization.
