Understanding Company Structure, Departments, and Roles

Organizational Structure

1. Senior Management: People who make strategic decisions and set the overall objectives of the company.

2. Middle Management: Middle management or executive staff. Example: heads of department. Labor: relate the general objectives of the company with specific departments.

3. Operating Base: Technicians and workers.

4. Technostructure: Analysts and experts in management and operation functions, who do not participate in productive work but also design, plan, and prepare the people doing productive work.

5. Support Structure: Staff: personal advice to managers.

Relations in the Formal Organizational Structure

1. Formal: These relationships are defined in advance by management and communicated to other members of the organization.

2. Informal: Relationships that arise spontaneously as a result of the relationships between people within the company.

Organizational Structure Principles of the Company

1. Principle of Authority and Hierarchy: The levels of authority should be arranged hierarchically according to the degree of responsibility.

2. Principle of Management Unit: There must be a unique address.

3. Principle of Command Unit: Each subordinate should have only one direct supervisor.

4. Principle of Delegation: The superior must delegate certain tasks to subordinates.

5. Principle of Decentralization: Delegation of authority for decision-making on an ongoing basis.

6. Principle of Division of Labor and Specialization: Decomposition of tasks of activity between different people.

7. Principle of Departmentalization: The different tasks or functions are grouped into departments, which coordinate the relationships within the company.

8. Principle of Coordination: Among people or departments within the same hierarchical level, there must be some level of coordination.

9. Principle of Motivation and Participation: There must be ways to motivate people who work for the company and encourage their participation.

10. Principle of Communication: The communication system in the company is to operate upstream, downstream, and horizontally.

The Chart

The chart is a graphical representation of the organizational structure of the company.

For an organization to be useful, it must:

1. Adjust to the reality it represents.
2. Be clear, concise, and understandable.
3. Be updated.

Functional Areas of the Company

Department: Group of people with a range of objectives, functions, or common tasks.

Criteria for Departmentalization:

1. According to the production processes: Advantage: specialization by production process.
2. According to the functions: Advantage: specialization by function.
3. According to the customers.
4. According to geographical areas.
5. Depending on the products or services.

Area of Production

Functions:

1. Plays a role in the control technique of all the processes, methods, and technologies that enable the production of goods.

Commercial Area

2. Also called the marketing department, it is responsible for pricing, distribution, and promotion.

Finance Department

3. Provides the company with the necessary funds when needed and at a minimum cost; it also invests surplus funds for maximum profitability.

Human Resources Department

4. It provides the policy direction of human resources for staff to properly relate to the company and are motivated to do their work.

Administrative Area

5. Its main function is to control the documentation.

Interdepartmental Relations

1. Authority Relations: Occur when not all departments have the same level of hierarchy.

2. Functional Relationship/Information Relations: Occurs when a department needs information from another to perform its function.

3. Coordination Relations: To achieve the overall business objectives, departments must coordinate their function.

4. Decision Relations: Sometimes decision-making involves the intervention of several departments.

Department of Human Resources

Management Functions with Staff:

1. Templates
2. Planning
3. Job description
4. Recruitment and selection of staff
5. Welcoming new workers
6. Rating job and pay
7. Performance evaluation

Department of Human Resources

Administrative Functions with Staff:

1. Preparation of payroll
2. Steps to Social Security
3. Steps related to violations and penalties
4. Control of absenteeism
5. Paperwork related to hiring
6. Paperwork related to the termination of employment