Question

In: Operations Management

What are some of the organizational characteristics that influence the budgeting decision? (Give examples of each)

What are some of the organizational characteristics that influence the budgeting decision? (Give examples of each)

Solutions

Expert Solution

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.


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