Key Business Concepts: Communication, Motivation, Structure, Planning

Communication in the Company

Communication within a company can be categorized as vertical or horizontal.

Vertical Internal Communication

This occurs between employees and top managers. Upward communication aims to ensure managers are aware of the problems faced by workers.

Horizontal Communication

This type of communication arises between people who are at the same hierarchical level.

Motivation at Work

Motivation is a key factor in the workplace.

Money and Motivation

Money primarily serves to meet basic consumption needs (food, clothing, housing, etc.).

Future Expectations

When workers have the potential to improve and advance in their workplace, they are generally more motivated.

Recognition of Work

Recognizing the effort made by each person in their workplace is important for motivation.

Collaborative Working

Being assigned responsible tasks can contribute to motivation.

Maslow's Hierarchy of Needs

Maslow's theory represents human needs in a pyramid:

1. Physiological Needs: These are basic needs like food, water, and shelter.
2. Security Needs: Once physiological needs are satisfied, security needs become important.
3. Social Needs: Also known as belonging or status needs, these involve love, affection, and feeling accepted by a group or community. In a company context, this means feeling considered, respected, and integrated.
4. Self-Actualization: This is the need to achieve one's full potential or a personal goal, such as becoming a boss or director.

Formal Organization

Formal organization is defined as the intentional structure where the company places each element in the right position.

Organizational Structure

This refers to how tasks are divided and coordinated.

Division of Departments

Departments can be divided by function, geographic area, product, or process.

Understanding Organizational Charts

An organizational chart is a graphic representation of the corporate organizational structure in a synthetic and simplified form, illustrating its main features.

Organizational charts must:

• Differentiate the different elements and levels of authority and position.
• Be easy to understand.
• Be simple.

They can be structured in different ways:

• Downward: Highlights the chain of command; higher authority is more elevated, subordinates below.
• Across (or Horizontal): Higher authority is to the left, subordinates to the right, highlighting roles in the chain of command.
• Radial: Creates a visual impact, emphasizing higher management levels at the center.

Types of Organizational Charts

Organizational charts can be classified:

• According to Purpose: Informative (provides global information) or Analytical (provides more details).
• According to Length: General (shows all departments) or Detailed (shows a particular department).
• According to Content: Structural, Functional, or Staff.

Planning Fundamentals

Planning involves setting goals, developing strategies to achieve them, establishing company policies, and setting decision criteria, always aiming to achieve the company's objectives.

Classification of Plans

Plans can be classified by nature and characteristics.

Goals and Objectives

Goals: These are the fundamental aims pursued by the company.

Objectives: When setting objectives, keep in mind:

• Objectives must be realistic.
• Priorities must be set among various goals and subgoals.
• Objectives should be attainable with minimal unintended consequences and cost.

Objectives must be communicated to all involved subordinates.

Policies, Procedures, and Rules

Policies: These are basic principles that guide specific decisions and set certain performance limits.

Procedures: These are the steps to follow to perform an action.

Rules: These indicate what is permitted and what is not.

Budgets

Budgets are quantified plans. They are the numerical expression of a written plan.

Planning Timeframes

Plans can be classified by their temporal scope:

Long-Term Plans

Typically cover more than five years.

Medium-Term Plans

Typically cover more than one year and less than five years.

Short-Term Plans

Typically have their limit at the end of a fiscal year (one year).

Departmental Plans

Departmental plans affect more than one department.

The Planning Process Steps

The planning process typically involves these steps:

1. Analysis of the situation.
2. Set the goals.
3. Identify different paths that lead the company towards its objectives.
4. Evaluation of the alternatives.
5. Choose from one of the alternatives.
6. Control and identification of deviations.

Defining the Organization Function

Organization is defined as the function that aims to design a structure where all tasks performed by each person are defined, along with their responsibility and authority. Organization aims to order the relationships that arise between various tasks and operational areas of the company.