Core Concepts in Management, Planning, and Organizational Structure

Organizational Fundamentals

The Organization (Org): Social entities with defined objectives. As a system, it is a set of people acting within set limits to produce goods or services.

Work Systems and Management Roles

Work System: Input – Processes – Output.

Morrison's Management Role: Involves evaluating the work of subordinates and creating plans considering technological factors.

Levels of Management and Performance Metrics

• Levels of Management (Gerencia):
  • High Level (Conceptual Skills)
  • Human Skills
  • Technical Skills
• Efficiency: The optimal use of resources.
• Effectiveness: Achieving established goals.

Functions of Management (Henri Fayol)

The functions of management are to plan, organize, lead, coordinate, and control.

Organizational Structure Components (Henry Mintzberg)

• Ideology
• Strategic Apex: Great responsibility.
• Mid Line: Linking the chain of authority.
• Operating Core: Work directly related to the manufacture of the product.
• Technostructure: Designs the workflow using technical analysis to make the work more effective.
• Support Staff

Marketing Strategies and Research

Marketing for Profit Organizations

Marketing involves strategies to attract and retain customers, secure donations, and acquire other resources.

Market Research Techniques

Market research detects the needs and interests of buyers for a company to gain advantage. Techniques include:

• Survey
• Pilot Test
• Focus Group (A meeting of 6 to 10 people led by a moderator to gather answers about a product)

Neuromarketing and Demand Development

Neuromarketing: Uses neuroscience techniques to analyze consumer reaction based on levels of emotion, attention, and memory.

Demand Development: Actions taken to find, preserve, and increase customers.

Key Marketing Concepts

Market Segmentation: Geographic, Demographic, Psychographic, and Behavioral.

The 4 Ps (Marketing Mix): Product strategies, Price, Promotion, and Place.

Business Planning and Core Skills

Essential Business Skills

• Cost Efficiency
• Quality
• Formality
• Flexibility

The Planning Process

A Plan is a set of specific actions proposed for an organization to meet its goals (including policies, procedures, rules, and budgets).

Steps in Planning

1. Declaration of Goal
2. List of Actions
3. Selecting the Best Alternative
4. Schedule to Develop the Chosen Alternative
5. Implementation

Types of Plans

Strategic Plan: A broad and comprehensive plan designed to achieve long-term goals.

Tactical Plan: Emphasizes the operation of a specific part of the company.

Strategy Formulation Methods

Strategy formulation involves:

• Analysis of Critical Questions
• SWOT Analysis
• Business Portfolio Analysis
• Porter's Model for Industry Analysis

Organizational Structure and Processes

Basic Processes in the Business System

Purchase, Transformation, Distribution, and Sales.

Defining Organizational Structure

The structure of an organization is the result of dividing tasks in each job and coordinating them with each other.

Types of Organizational Structures

Functional Structure

The main division is by specialty. Benefits include technical expertise, reduced duplication of functions, and emphasis on acquiring new knowledge.

Product Structure

Structured around specific products, applicable in both manufacturing and service companies. This structure is focused on the customer.

Project Structure

Shows projects similar to one per product. The key difference is that project organizations have a limited life.

Matrix Structure

Combines the characteristics of the functional organization and the organization by projects.

Geographic Structure

Appears when organizations have multiple geographically dispersed units. Important in expansion strategies.

Informal Groups

Informal groups define their own rules of behavior, forms of reward or social sanctions, objectives, scale of values, beliefs, and expectations, and can influence the formal structure.