CO2: IMPLEMENT STRATEGY WITH MONITORING AND CONTROL TOPIC: LO4: ILLUSTRATE ORGANIZATIONAL STRUCTURE AND SYSTEMS LO5: MANAGE VARIOUS ASSETS EFFECTIVELY AND EFFICIENTLY LO6: MONITOR ORGANIZATIONAL PERFORMANCE AND CONTROL LO4: Illustrate Organizational Structure and System WHAT IS AN ORGANIZATIONAL SYSTEMS? What is an Organizational Systems? The starting point of any organizational design is a realistic COMPANY STRUCTURE that is based on well-thought out strategy. WHAT IS AN ORGANIZATIONAL STRUCTURE? What is an Organizational Structure? Organizational structure refers to the system or mode by which a group of individuals can achieve its desire goals. TYPES OF ORGANIZATIONAL STRUCTURE 01 TYPES OF ORGANIZATIONAL STRUCTURE Functional organizational structures Structuring an organization effectively requires that the management should know the goals of the organization, the skills of its people, the needs and goals of its subordinates, the available resources, and the time, cost, and environmental constraints that are existing. 02 TYPES OF ORGANIZATIONAL STRUCTURE Territorial Organizational Structure As an organization begins to serve its customers who are spread over a growing geographical area, a territorial structure becomes a viable design. In this system, the target market is divided into geographical units according to certain criteria. 02 TYPES OF ORGANIZATIONAL STRUCTURE Territorial Organizational Structure 1. 2. 3. 4. Personnel familiar with the history of customers in the area, their culture, their preferences, expectations, and habits of living can cultivate the local markets. The company and its sales force can respond quickly to changes in the competitive environment. There is closer contact between managers familiar with the territory and their subordinates. Because management is familiar with the local conditions, it can make quicker strategic decisions. 03 TYPES OF ORGANIZATIONAL STRUCTURE Product Organizational Structure Traditionally, organizational divisions follow a product structure. In some companies, the sub businesses are assigned to product group managers, each of them are given key operating and staff functions. 04 TYPES OF ORGANIZATIONAL STRUCTURE SBU Organizational Structure This division structure the issues of whether any marketing functions should be performed at the corporate staff level. Some companies maintain a minimum marketing services structure at the corporate level. ORGANIZATIONAL COMPONENTS Organizational Components An organization is an entity composed of people that it structured and managed in such a way that it is able to achieve its set goals and objectives. ORGANIZATIONAL COMPONENTS MANAGEMENT Management refers to the administrative supervision of an organization. It includes leadership, the organization’s visionmission, goals, and objectives to attain organizational success. ORGANIZATIONAL COMPONENTS LEADERSHIP Is foremost in the management of any business. A good leader, regardless of whether he owns or works for the organization, is someone who inspires his employees and stretches them to their optimum productivity. ORGANIZATIONAL COMPONENTS EMPLOYEES Aside from the management, employees constitute a significant part of the organizational melieu. They are the very people who work, support, and earn profits for the organization. ORGANIZATIONAL COMPONENTS EMPLOYEES Management expects employees to experience and graduate through three levels of relationships. 1. EMPLOYEE SATISFACTION – it is an emotional state where employee experiences a feeling of content in the workplace. 2. EMPLOYEE INVOLVEMENT – satisfied with his/her work conditions, an employee may graduate to a higher level of organizational relationship called employee involvement. 3. EMPLOYEE COMMITMENT – this degree of employee relationship is further heightened when the employee reaches the highest level that is employee commitment. ORGANIZATIONAL COMPONENTS FACILITIES AND EQUIPMENT Another important component of the organizational environment is the facilities and equipment. ORGANIZATIONAL COMPONENTS FINANCIAL RESOURCES The financial resources of an organization determine the direction the organization will take and affect its capability to realize its set business goals and objectives ORGANIZATIONAL COMPONENTS ORGANIZATIONAL POLICIES The organizational milieu includes company policies, which are the lifeblood of an organization.