Company Structure: Informal, Management, Charts, Control, and Organization

Informal Organization

The informal organization is the organizational structure not intentionally defined by the company. It is the set of personal and social relations not covered by the company's direction that arise spontaneously. This occurs when people relate outside their designated work groups, forming unofficial groups. In these groups, unofficial information is transmitted in the form of rumors, and sometimes normal operating procedures have more strength than those prescribed. All companies have a formal and an informal organization. Managers, if they are aware of the existence of the informal organization, must try to positively impact the company's results.

Management Function

The management function is to manage the company's people, ensuring that they perform the tasks to achieve the set objectives. We distinguish 3 levels:

• Senior Management: They are responsible for the company. They create long-term plans and are responsible for achieving the overall company objectives.
• Intermediate Level: These managers are responsible for the execution and control of the general planning. They are bosses.
• Management Level: They are the managers responsible for assigning tasks to the workers.

Organizational Charts

Charts are the graphical representation of the company's organizational structure. The requirements for any organizational chart are:

• Must clearly distinguish the various elements of the enterprise.
• Must differentiate the levels of authority.
• Should be easy to understand.
• Should be simple: contain only the essential elements.

Control Function

The control function is to detect deviations from the forecasts with the intention of correcting them. Stages:

1. Establish standards: Define what measures are considered normal.
2. Measure activities: Compare results with standards.
3. Correct deviations: Make a separate planning.

There are different control techniques:

• The Audit: Verifying the comprehensive management planning of the company. Can be:
  • Internal: From within the company as a control mechanism.
  • External: By persons outside the company.
• Budget Control: Controlling that the numerical relationship of the planning (revenue and costs) is met.
• Statistics: Using historical data to analyze a problem and, based on them, make predictions.

Organizing Function

The organizing function is intended to define the structure of tasks that should be performed by each person in the company, their responsibility, and authority. Stages:

1. Determine the hierarchy of controls: Who owns and runs each task.
2. Define the tasks and objectives for each level of command.
3. Define who has to obey whom.
4. Define the communication routes in all directions between departments, with upper and lower positions, and with the outside.

Communication

One of the largest single factors for good organization is communication. Within a company, communication can be:

• Vertical Ascending: From bottom to top, from the employees to the management. Its purpose is to allow management to know the problems of workers firsthand.
• Vertical Descending: From top to bottom, from managers to workers. Its purpose is to inform workers about their duties. This is more common.
• Horizontal: Between people at the same hierarchical level.