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    FY BBA -3

    ROLL NO: 356


  • 8/7/2019 mundra ank




    Basic s of organisation:

    Organisation basically means a group of peopl e trying to acco mplish a common objective for the organisation.

    To elaborat e the de finition furth er ther e ar e some views points that what thing s go in an organisation.


    Organisation is syst em of structur es and functions 2.

    Organisation is structur e in action over time.

    3. It is a proc essing syst em4.

    It is a structur es of sub- groups that means depart ments 5.

    It is a cultural pro duct.

    The proc ess of organisation may well be de scri bed as the manag erial function of organising. To organis e is to har monis e, co-or dinat e or arrang e in a logical and or derly mann er. The manag erial function of organising consists in making a rational division of works into group of activiti es.

    Its importanc e


    It faciliti es administration 2.

    It mak es gro wth and diversification possi ble.


    It provi des opti mum use of technological improv eme nts. 4.

    It simulat es independent, cr eative thinking and inc entiv e through well defin ed ar eas of work.

    Some of the typ es

    The military

    Functional organisation

    Line and staff syst em

    Authority and r esponsi bility

    It is also divi ded in thr ee parts: -

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    Organization des ign

    Organization: Organization r ef ers to the structur e of r elationships among positions and jobs which is built up for the r ealization of the organization goals. This structur e clarifi es theauthority and r esponsi bility vested in each position of the organization and mak es the co-or dination of all the activiti es undertak en for the acco mplish me nt of the organizational goals easy.

    An organizational structur e shoul d be de sign ed to clarify who is to do what tasks and w ho is

    r esponsi ble for what r esults , to r emove obstacl es to perfor manc e caus ed b y confusion andunc ertainty of assign ment, and to furnish decision making and comm unication networks r eflecting and supporting enterpris e objectives.

    The comm on f eatur es of all organizational structur es ar e:


    Division of labor. 2.

    Co-or dination.


    Acco mplish ment of the objectives. 4.

    Authority and r esponsi bility structur e.

    The person having the high est authority to tak e de cision in an organisation to impleme nt to decide to exe cut e how any organisation will work depends upon the top level manag eme nt. They ar e the one w ho decides policy; they ar e person r esponsi ble for theorganisation. These inclu de top boar d of dir ectors and general manag ers. They hav e day to day r esponsi biliti es of han dling the em ploy ee san d e veryon e. Over the top manag eme nt ther e ar e f ew people only.

    The top manag eme nt need s to hav e to do mor e of mind w ork they dont hav e technical things to be d one. They hav e to for m the policy in such a fashion so that nothing is illegal. If anything is illegal or not allowed b y the government so these top authority s ar equestiona ble. They ar e the person to set company s prosp ectus and to follo w each and

    every proc edur e that a company r equir es to start. From stak e holders to investors everyon e is accounta ble by these people.

    Hierarchy of managementH ierarchy basically means the manag eme nt the group of arrang eme nt of diff er ent pro ducts

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    Organizations can be structur ed using a hierarchy. In an organizational hierarchy , ther e is a singl e person or group with the m ost power and authority , and each subsequent level r epr esents a lesser authority. Most organizations ar e structur ed in this mann er , inclu ding governments , compani es, militia and organiz ed r eligions. The units or persons within an organization ar e for med hierarchically in an organizational chart.

    Organi s ational s tructur e an d chart .

    An organizational chart of a company usually shows the manag ers and sub-w ork ers who

    mak e up an organization. It also shows the r elationships betwee n the organization's staff membe rs which can be seen easily in the chart.

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    The structur e of an organisation which defines it s working accor ding to diff er ent typ es of structur e in an organisation. The typ es ar e as follo ws:-



    Matri x


    Employ ees within the functional divisions of an organization tend to perfor m a specializ edset of tasks , for instanc e the e ngin eering depart ment would be staff ed only with engin eers. This leads to high er effici encies within that group. However it coul d also lead to a lack of comm unication betwee n the functional groups within an organization , making the

  • 8/7/2019 mundra ank


  • 8/7/2019 mundra ank




    applicants might need to go through several depart ments namely vali dation , licensing and tr easury , be for e r eceiving the drivers license.


    P lant location Plant location r ef ers to the choic e of r egion and the selection of a particular site

    for setting up a busin ess or factory. But the choic e is made only aft er consi dering cost andbenefits of diff er ent alt ernativ e sites. It is a strat egic decision that cannot be chang ed onc etak en. If at all chang ed only at consi derable loss , the location shoul d be selected as per its own r equir eme nts and circu mstanc es. Each indivi dual plant is a cas e in itself. Busin ess man shoul d try to mak e an att empt for opti mum or ideal location. An ideal location is one wher e the cost of the pro duct is k ept to mini mum, w ith a Larg e mark et shar e, the least risk and the maximum social gain. It is the plac e of Ma ximum net advantag e or which gives lowest unit cost of pro duction and

    Distri bution. For achi eving this objectiv e, small-scal e e ntr epr eneur can mak e useof location analysis for this purpos e.

    P ro d uct p ortfolio

    The busin ess portfolio is the coll ection of busin esses and pro ducts that mak e up the company. The be st busin ess portfolio is one that fits the company's str engths and helps exploit the m ost attractiv e opportuniti es.

    The company must:

    (1) A nalys e its curr ent busin ess portfolio and de cide w hich busin ess es shoul d r eceive m or e or less investment, and

    (2) De velop gro wth strat egies for adding new pro ducts and b usin esses to the portfolio , w hilst at the same time de ciding when pro ducts and busin esses shoul d no long er be r etain ed.

    Eg: car eer portfolio , pat ent and pro duct as well

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    Q uality control

    Quality Control is the most important insp ection control of all in cas es wher e, de spit estatistical quality control techni ques or quality improv eme nts impleme nted, sal es decr ease.

    If the original specification does not r eflect the corr ect quality r equir eme nts , quality cannot be insp ected or manufactur ed into the pro duct.

    A quality control is very important for any fir m. It wills not insur ed that the good s will be

    pro duced w ith right time b ut the right quality is also very important. This is done with thehelp of insp ection. It is compar ed w ith the quality which is bee n set for the company. To mini mise the r eduction the quality may be check ed at every stag e of the pro duction.

    The basic r equir eme nts that ar e r equiring for the quality control ar e as follo ws:-


    Complete info. About the pro duct which was made pr eviously. 2.

    Up to date info about the raw m aterials that ar e to be used.

    3. Kno wledge of work is taking plac e. 4.

    Data about the power the working of speed, and f eeds of the e ntir e various machin e. 5.

    The best combination that has to be used w hile working.


    Car eful instructions to everyon e hav e to be given how the w ork has to be d one in a fir m. The two major techni ques ar e1.

    Control chart


    Accepting sa mpling

    Control chart It depicts the actual measur eme nts of all or some of the parts that ar e to bemanufactur ed, and it s most important means is of quality control. Each charts sho wtwo line w hich hav e ther e tol eranc e limits. Acceptanc e of sa mples It is a post -mort em that the q uality of the pro duct that has bee n pro duced. It is basedon principl e of selecting any ran dom alternativ e w hich has to work. Generally a

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    Mark eting decisions generally fall into the follo wing four controlla ble categori es:






    Place (d istri bution )



    The Mark eting Mix

    Product Decisions

    The ter m " pro duct " r ef ers to tangi ble, physical produ