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» Personal Loan No Credit Check, Online Economics » Management economics » Topics begins with O » Organization (economics)


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The organization is concerned with allocations and been characterized by rules by structure effect. It developed for differentiation (distinction of tasks in the management economics from the dual problem, with that; Division of labor - > diverging) and integration (co-operation) to be agreed upon had.

The organization term can be used differently:

  • Functionally: Organization as function, thus the creation of rules and structures
  • Instrument valley: Organization as instrument, like rules, structures (hierarchies)
  • Institutionally: Organization as institution, thus as system (like e.g. an enterprise, an authority, an association"…)

Expirations of enterprise and organizational structure

Expirations in the enterprise are steered over the structure (organizational structure), process feedback controls (sequence organisation) and self organization (informale organization).

The organizational structure is based on the differentiation, as task complexes are arranged into major tasks, which consist again of individual tasks, which are transferred by a place in the enterprise. The place is the smallest organizational unit and unites responsibility (obligation and authorization for independent acting), powers (e.g. decision, instruction, obligation powers) and tasks with one another.

The organizational structure decides between centralization and/or decentralization, i.e. it is concerned with the decision in as far tasks of elementary of working premises to be assigned.

The advantages of the centralization are:

  • Simplification of the co-ordination
  • few tuning losses
  • short information paths
  • small achievement expenditure
  • Concentration of responsibility and powers

The advantages of the decentralization are:

  • No dominance of single decisions
  • smaller loss effect
  • smaller load of the places

By the centralization criteria (functional and object-oriented), assumption conditions (simple and/or multiple assumption) and the powers (full authority, partial authority) the organization forms differ.

Organization forms

A line on:

Here each place has only a Vorgesetzen, whereby in each hierarchy level full authority prevails.

Advantages:

  • Clear instruction and formation lines
  • Clear powers and Verantwortungen

Disadvantages:

  • Longer information paths
  • With large enterprises it can come to excessive demands

Staff line organization

Staff organizations can occur with all other organization forms supplementing. Staffs are thereby the other organizational units assigned coworkers, who serve their support. The staffs can be differentiated with respect to generalists and specialists. Generalisti staffs are e.g. assistants of the management. Specialized staffs can e.g. be the legal department or project organization.

Advantages:

  • Use of specialists
  • Discharge of the line organization

Disadvantages:

  • Bad image ("mixing itself everywhere and have no notion")
  • usually no organizational power
  • Conflicts with the line organization

Matrix organization

Here an entwinement thing develops, with which a place two or several organs is subordinated. For example the place could be customer service a country-specific organ and at the same time the marketing management subordinated.

Section organization

A section represents a division, which divides the responsibility on a visible way. Sections can be formed and taken over for example after regions, technology, customer groups or project groups a sole responsibility for profits, losses and production. Exist besides central sites, which stand over the sections, and which common interests of the enterprise secure as well as make various services available for the divisions. (see also: Section structure)

Advantages:

  • Sections represent smaller units and are thus more flexible
  • higher transparency of the business activities
  • improves performance evaluation
  • separate purchase and sales

Disadvantages:

  • high administrative expenditure
  • Diversities of opinion between business and central site

Networks

In the last years the organization form of the loose network attained ever stronger meaning in the theory and practice. This organization form differs from other developments presented here by a frequently less formal structure, i.e. that the participants in the network can keep their legal independence and the interaction can be substantially less strongly legally reglementiert. The participants acting in networks can be both organizations, enterprises and single participants and are frequently conscious or unconscious participants in several from each other independent (social) networks.

Extreme an example of a successful network is the developer municipality of open SOURCE and suitor software, in which the characteristic of the self organization is very clearly pronounced. Each participant in this network enjoys a high degree at individual liberty (decision over which, when and where it is done as well as the affiliation to the network). Hierarchical structures, if necessary, form here on meritokratischer or democratic basis: Linus Torvalds for example does not have any legal requirements on the direction of the project in the Linux Kernelentwicklung (except rights of the use of a name), however by its abilities in technical and social areas as authority is generally recognized.

As reasons for the increasing spreading of this organization form frequently the modern communication media and a stronger motivation of the participants are identified by larger independence and responsibility.

Resuming for this Netzwerktheorie, miniature world phenomenon, scale liberty and self organization.

Representations and documents

Organizational structures can be represented as follows:

  • graphically
  • tabular
  • verbal
  • mathematically

Important documentation possibilities can e.g. be family trees, communication diagrams or Soziogramme. For a clear recognition of functions and for mental task organization job descriptions are necessary, which specify the integration of a place into the organizational structure.

Sequence organisation

The sequence organisation is to record regulations of expirations and orders and analyze processes. One of their major tasks is it to be shortened to procedures be e.g. painted expirations, times reduced or a parallel processing is introduced.

The sequence organisation stands thereby mostly before the problem whether with the manufacturing flow strengthened at continuity or lower expense importance is to be attached. For example several manufacturing plants permit a more flexible reaction and to continuous run, while the fixed costs are accordingly high however. In contrast to it these costs could be reduced, in that one few manufacturing plants used. However the run and downtimes will increase.

Organizational development

In the today's time the TQM system (total quality management) was particularly established, by which a continuing change process is aimed at. In the TQM importance is attached on self organization and concomitantly on self-discipline of the employee.

See also: Business process

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