Core Business Functions and Decision-Making Strategies

Understanding the Business Entity

A company is an entity whose primary purpose is to obtain benefits through the sale of goods and services on the market.

1. Functions in the Organization

Management involves four core functions:

• Planning: Setting goals and defining the path to achieve them through a Strategic Plan, including:
  • Resources
  • Actions
  • People
  • Control
• Organizational Function: The implementation of the established plan.
• Leadership Function: Overseeing employee work and influencing performance by:
  • Leading towards goals
  • Motivating staff
  • Understanding problems
  • Transmitting the business plan
  • Providing instructions
• Control Function: Monitoring progress and implementing corrective measures when deviations occur.

Departmental Structure

A department consists of functional units within a company, specialized in one or more specific tasks:

• Production Department
• Commercial Department (Purchasing and Sales)
• Finance Department
• Human Resources Department

Decision-Making Processes

Decision-making occurs when one or more individuals choose between two or more alternatives to solve a problem.

• Types: Individual or Group
• Levels: Strategic, Tactical, or Operational
• Methods: Scheduled (repetitive) or Non-schedulable

The Decision-Making Process

1. Analysis of the situation
2. Planning and assessment of alternatives
3. Decision and execution
4. Monitoring and evaluation

Group Decision-Making

Advantages: Access to more and better information, increased solutions, diverse opinions, creativity, and motivation.

Disadvantages: Time-consuming, diluted individual responsibility, conformism, self-censorship, and inequality.

Group Problem-Solving Techniques

• Brainstorming: Develops creativity and generates spontaneous ideas visible to all participants.
• Philips 6/6: Dividing a group into subgroups of 6 people to discuss a topic for 6 minutes.
• Six Thinking Hats: Utilizes 6 different perspectives represented by colors:
  • White: Facts and objectives
  • Black: Pessimistic thinking
  • Yellow: Optimistic thinking
  • Red: Emotions and feelings
  • Green: Creative thinking
  • Blue: Organization and coordination
• Nominal Group: Combines individual work with group collaboration.