In: Operations Management
What are some of the organizational characteristics that influence the budgeting decision? (Give examples of each)
The organizational structure influences the activities of the
organization and provides the basis on which the procedures and
standards of operational operations are standardized. It determines
who can be involved in the decision-making process and thus their
perspective determines the activities of the organization.
Organizational structure can also be seen as a mirror of a vision
or perspective in which people see their organization and
environment.
Organization is a variant of a group.
An organization can be organized in different ways depending on its
goals. The structure of the organization determines the regime in
which it operates and implements. Organizational structure allows
for the distribution of responsibilities for different functions
and processes of different units, such as branches, departments,
teams, and individuals.
Organizations must be efficient, flexible, creative and attentive
in order to achieve sustainable competitive advantage.
The bureaucracy has many levels of government, from senior
executives to regional managers to departmental managers. Because
there are so many levels, decision-making institutions have to go
through more than just bright organizations. Bureaucrats have
strict and strict procedural policies and restrictions. This type
of structure does not want to adapt or change what they have been
doing since the beginning of the company. An organization chart is
available for each section, and everyone understands who is
responsible and responsible for each situation. Decisions are made
through an organized democratic structure, power is at the top and
information is transmitted from top to bottom. This leads to more
rules and standards for companies whose operational processes are
regulated under strict control. Some of the advantages of
bureaucratic structures for top managers are that they have strong
control over the decisions of the organizational structure. This is
most effective for managers who have a set of rules and procedures.
Strategic decisions are also faster because fewer people have to go
through to pass them on.
The disadvantage of bureaucratic structure is that it can inhibit
innovation and innovation in the organization. This can make it
difficult for companies to adapt to changing market
conditions.
An example could be a company that makes two products, "product a"
and "product b". Using the matrix structure, the company will
organize the following functions within the company: "Product a,
Sales Department", product a"Customer Service Department",
"Accounting" products, "Product b", "Product Sales Department",
Product b 'Customer Service, Accounting Department' Product b
'.
Examples of subdivisions include region (US and European segment), user type (segmentation for companies and one for households) and product categories (segmentation for trucks, one for SUVs and one for cars). . Departments can also have their own departments, such as marketing, sales and engineering.