OM Flashcards
Is an organization or economic system where goods and services are exchanged for one another or for money.
Business
Four (4) Major Types of Businesses:
Service Business
Merchandising Business
Manufacturing Business
Hybrid Business
A type of business which provides intangible products. These type firms offer professional skills, expertise, advice, and other similar products.
Service Business
e.g., schools, repair shops, hair salons, banks, accounting firms and law firms.
Service Business
refers to businesses which buy product at wholesale price and sell the same at retail price.
Merchandising Business
e.g., grocery stores, convenient stores, distributors and other resellers.
Merchandising Business
refers to businesses which buy productions with the intention of using them as materials in making a new product.
Manufacturing Business
Examples are baked good, shoe manufacturing, grape wine production, cosmetic manufacturing, processed food, canned goods, and others.
Manufacturing Business
refers to companies that may be classified with more than one type of business.
Hybrid Business
A restaurant, for example combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).
Hybrid Business
a business is owned and managed by only one person.
Sole Proprietorship
a business owned by two or more persons who contribute resources into the entity.
Partnership
is a business organization that has a separate legal personality from its owners.
Corporation
is a business organization owned and managed by a group of individuals for their mutual benefits.
Cooperative
is an increase in living conditions, improvement of the citizens’ self-esteem needs and presence of a free and just society.
Economic Development
refers to a change in the composition of the Gross Domestic Product.
Structural Formation
are administrative decisions that are directly related to all issues and activity within a nation’s borders.
Migration of people
is the incidence of disease, rate of illness.
Morbidity
Indicators of Economic Development: (4)
Declining Poverty Rates
Increasing Literacy Rate
Declining Infant Morbidity
Increasing Life Expectancy
Stages of Economic Development According to Gunter: (3)
The Structural Transformation
The Demographic Transition
Migration of people
refers to a change in the composition of GDP. Initially, economic activities and jobs are based in the agricultural sector. In other words, at the final stage of development, we typically have an economy in which people earn their livelihood predominantly from the service sector and still important but diminished industry sector
The Structural Transformation
determined by changes in the fertlity rates (example the number of children per women) and changes in life expectancy. Initially, fertility rates are high, but due to relatively high death rates especially
The Demographic Transition
The main factors leading to the process of urbanization is the _________ __ ___ from rural areas seeking jobs in the emerging urban centers, the transformation of originally semi- urban suburbs into fully urban centers, and differences in population dynamics between rural and urban areas.
Migration of people
It evolves from the goals & strategies created by organization’s top management & they are usually long term in nature.
Corporate Planning
Is concerned in the process of determining the scope of division’s action that will satisfy the consumer’s needs.
Divisional Planning
It is the lowest level of planning which concerns the individual departments of its set of feasible action plans to implement the division plan.
Functional/Unit Planning
Refer to the written description of a set of events suitable to occur in the future that bears on organizations effectiveness
Scenarios
Is a technique usually applied to a group of knowledgeable people with different backgrounds & experiences whose pooled skills & judgment are needed to identify desirable goals & strategies
Nominal Group Technique
Is a computer simulation modeling which is used to assist in the development of long & medium & short range plans.
Simulation Planning Models
Is somehow the blueprint or map to reach certain destination of our wants.
Planning
Is the process of defining an organization’s objectives & how it will achieve them like “what is to be done & when it is to be done”. In an organization, it is not solely done by the top management but by other levels in the organization as well to be prepared of what might arise in the future (David Halt).
Planning
Planning can be done in 2 ways:
Formal Planning
Informal Planning
DIFFERENT TYPES OF PLAN ACCORDING TO ITS DIMENSION: (3)
CORPORATE / STRATEGIC PLANNING
DIVISIONAL / BUSINESS PLANNING
FUNCTIONAL / UNIT PLANNING
It evolves from the goals & strategies created by organization’s top management and they are usually long term in nature. It covers the entire organizational activities. Thus, it sets the foundation of the organization in terms of all plans, policies & strategies.
CORPORATE / STRATEGIC PLANNING
Also referred to as Tactical planning concerns the process of determining the divisional actions that will satisfy the consumer’s need, decide on specific sub-goal within its defined area or responsibility & establish policies & budget to attain these goals.
DIVISIONAL / BUSINESS PLANNING
Commonly called as Operational planning.
FUNCTIONAL / UNIT PLANNING
It is the lowest level of planning. At this level, department managers or first-line supervisors develop a set of feasible action plan & focus on planning for a day-to-day activity to implement the division plans. This uses short-range actions & adheres to planned schedules & budgets.
FUNCTIONAL / UNIT PLANNING
TIME FRAME OR LENGTH OF THE PLANNING HORIZON (3)
Long Range
Medium / Intermediate Range
Short Range
Deals with decisions for broad technological & competitive aspects of the organization which might extend up to fifteen years.
Long Range
Deals with plans that are more detailed compare to long range since the time span shorter & concerns the specific & basic functions of the organization. – This is between two to five (2-5) years.
Medium/Intermediate Range
Is an extension of long range planning & usually extends to about one (1) year & includes more specific plans with respect to plant location, work methods, inventory & controls employee training & the like.
Short Range
There are different planning elements that are involved in the planning process, which depends upon the activity involved. (4)
Strategies
Policies
Procedures
Rules
Involve choices of particular actions by the organization to achieve stated goals.
Strategies
Limit the behavior or organizational members towards achieving the goals.
Policies
They are guidelines of the organization that are useful in decision making.
Policies
Are narrower in terms of application in the organization. It only tends to involve departmental activities such as hiring procedures & payment procedures.
Procedures
Are the thinnest element; these are usually orders with what is appropriate or not in terms of behavior of members in organizations.
Rules
These are strict advices for employees with specific functions like rules on wearing uniform in the workplace, rules on deadline, etc.
Rules
REPETITIVE PLANS
can be characterized by the degrees of sameness with which they are used by the organization: (2)
Standing Plans
Single-use Plans
Are those developed by the organization to direct activities that will occur frequently overtime.
Standing Plans
Deal with ill-structured or non-repetitive problems to fit a specific situation & may not be used any more when goal has been achieved.
Single-use Plans
refers to the concentration of a given plan in an organization. It clarifies the function of a particular area where there is more attention needed.
Focus
PLANNING TOOLS & TECHNIQUES (3)
SCENARIOS
NOMINAL GROUP TECHNIQUE
SIMULATION PLANNING MODELS
Are intended to raise awareness in managers & to prevent surprises.
Scenarios
Alternate _________ serve to broaden the outlook of managers to the external forces that shape the future of the organization & sensitize them their vulnerabilities & the opportunities that lie within other possible futures.
Scenarios
It is a technique that is particularly useful for planning task or elements that require a high degree of innovation, idea generation, & creativity.
Nominal Group Technique
The technique is usually applied to a group of knowledgeable people with different backgrounds & experiences whose pooled skills & judgment are needed to identify desirable goals & strategies.
Nominal Group Technique
Refer to computer simulation modeling by which planners construct sophisticated models of an organization showing desired, reality based characteristics. With the aid of computer, managers can test certain hypothesis on a wide range of decision at a much lower cost & with greater speed.
Simulation Planning Models
Computer simulation in planning is a quantitative modeling techniques developed to test alternatives courses of action based on historical facts & managerial assumptions. With the continuing knowledge & sophistication of computer usage, simulation models in planning activities will become one of the dominant techniques in the future
Simulation Planning Models
It is a group of people who work together for a common good.
Organization
It is a collection of people who work together and coordinate their actions to achieve a wide variety of goals.
Organization
It is born when people begin to cooperate and combine together to fulfil their requirements.
Organization
It fulfills a greater variety of our social and personal needs and affects our lives.
Organization
TYPES OF ORGANIZATIONAL STRUCTURES (4)
- Flat Organizational Structure
- Functional Organizational Structure
- Divisional Organizational Structure
- Matrix Organizational Structure
has an organizational structure with few or no levels of middle management between staff and executives.
Flat Organizational Structure
is a type of organizational structure that uses the principle of specialization based on function or role.
Functional Organizational Structure
The structure of these groups each organizational function into a division. Each division contains all the necessary resources and functions within it.
Divisional Organizational Structure
It is the unwillingness to share information or knowledge between employees or across different departments within a company. It usually begins with competition among senior managers. Successful firms encourage and facilitate a free flow of information.
Silo mentality
is an organizational structure in which each individual reports to more than one supervisor.
Matrix Organizational Structure
Advantages of Line Organization Structure:
- Simple to work
- Economical and effective. It also allows quick decisions and efficient coordination.
- Conforms to the scalar principle of organization. Further, it promotes the unity of command.
- In a line organization, the responsibility for the performance of tasks is fixed upon definite individuals. Therefore, there is accountability of delegated tasks.
- There is excellent discipline in a line organization due to unified control and undivided loyalties.
- The overall cost of running the organization is low due to the non-involvement of staff personnel.
- It is a stable form of organization.
