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ORGANIZATION AND DIRECTION OF SMALL AND MEDIUM ENTERPRISES - Coggle Diagram
ORGANIZATION AND DIRECTION OF SMALL AND MEDIUM ENTERPRISES
UNIT 1: ORGANIZATION OF ELEMENTS
STRATEGIC DISTRIBUTION
Distribution channels are fully active economic areas, through which the manufacturer places its products or services in the hands of the final consumer.
The distribution channel represents an interactive system that involves all its components: manufacturer, intermediary and consumer.
Channel Examples:
Long: hospitality, neighborhood shops.
Shorts: furniture, department stores, department stores, cars.
Direct: banks, insurance, industrial.
Doubles: master franchises, exclusive importers.
Some functions of the distribution channels:
They participate in the financing of the products.
They contribute to reducing costs in the products because they facilitate storage, transport.
They intervene in the setting of prices, advising the most appropriate.
They become an asset item for the manufacturer.
They collaborate in the image of the company.
They actively participate in promotional activities.
They centralize basic marketing decisions.
ALTERNATIVE COMMUNICATION CHANNELS
Communication is vital within a company and we must find a way for our subordinates to understand the instructions that we are giving them so that they carry out their functions in a logical and correct way.
Lack of good communication leads to problems such as:
Rework, this refers to when it is not well defined what are the functions of a person within the organization and they usually give separate indications to subordinates causing employees to get confused and then do not know what work to do first.
Employees who do not fulfill their functions due to a bad indication from their boss.
Bad communication channels, this is that the appropriate channels are not used to communicate with the employees to give the orders and they simply do the work that they assume they understood, without being precisely what was ordered.
The most used means of communication are: Telefax, Internet, Memorandum, Report Hopa.
WORK LINE OR CELL
It is necessary to define the members of the project.
Being a capitalist partner: Hire managers and employees to do the business and the promoter only participates economically.
The promoters of the project only: Most logical case. One or more people decide to go on a business adventure. It would be the case of working partners.
The promoters of the project plus external aid: The promoters have the idea but lack the funds to carry it out.
AUTHORITY CHANNELS
Companies must have well-defined functions that each employee will carry out from the beginning.
ORGANIGRAMS: are organizational systems that are represented intuitively and objectively. They are also called organizational charts or graphs".
Organizational charts function:
The division of functions.
The formal channels of communication.
The linear or staff nature of the department.
The lines of authority and responsibility.
The hierarchical levels.
The heads of each group of employees, workers, etc.
The existing relationships between the various positions in the company and in each department or section.
TYPES OF ORGANIGRAMS:
MIXED ORGANIZATION CHART
It is a mixture of vertical, horizontal and circular organization charts into one.
STAIRCASE ORGANIZATION CHART
Indicate the different hierarchical levels with different indentations on the left margin, using lines that indicate said margins.
CIRCULAR ORGANIZATION CHART
Formed by a central box that corresponds to the highest authority in the company, around which concentric circles are drawn, each of which constitutes a level of organization.
Vertical Organization Chart
Each post subordinate to another is represented by tables at a lower level, linked to that by lines that represent the communication of responsibility and authority.
UNIT 2: SYSTEMS ORGANIZATION
WORK PLANS
It is a document that identifies, describes and analyzes a business opportunity, examines its technical, economic and financial viability, and develops all the procedures and strategies necessary to convert the aforementioned business opportunity into a specific business project.
The plan should be:
Marketing plan
For a market study.
Production plan
Useful for you and to request financing.
Human Resources
Financial plan
EVALUATION SYSTEM
It is important to have control of the staff with whom you start your company.
Responsibility for Performance Evaluation
Factors affecting the performance of the position
Performance in the Position
Perception that rewards depend on performance
Individual capacity
Individual Effort
Perception about the role played
Rewards Value
Evaluation Models
The work team can evaluate the performance of each of its members.
The personnel management body is a common alternative in more conservative organizations.
Evaluation committee is appointed to evaluate the performance of employees.
360o evaluator. It's a recent innovation in performance appraisal.
CONTINGENCY SYSTEM
We can define Contingency System as an uncertain situation in which scenarios and objectives are decided.
The directive and technical actions are defined.
Possible response systems are structured in order to better respond to an emergency.
It is important to consider contingency systems as a planning process from which an emergency plan is derived.
EXECUTION SYSTEM
Strong and Weak Points of the Project
Technical factors that are considered in the project
Localization
Project Engineering
Personnel Needs
Administrative-Legal Study
Previous studies
Preparation of a Financial Plan
Investments in Working Capital
Financing
Necessary investments
Interim financial statements
Choose an idea that appears to be viable
Determine the Profitability of the Project
Justify it
Develop the idea in a schematic way
Collect enough information to verify the feasibility of the idea
The possibilities of the environment
Economic environment
Socio cultural environment
Technological environment
Legal political environment
It is determined in the way in which we are going to start our company once we have defined objectives.
Determine the market opportunity
Competence
Opportunities
Risks and threats
UNIT 4: DIRECTION OF OBJECTIVES
Competition to receive opinions.
It is important to realize that in the market where we are, changes are constant.
We must be aware of the events around us to be prepared for certain changes and that they do not take us by surprise.
A rethinking is based on what we had initially, but that along the way became obsolete or simply expired and we have to rethink a new way of doing it again.
Rethinking is a cyclical activity that will have to be repeated over a period of time, for the effectiveness of the system.
What is sought in this methodology is to ask the why of things:
It provides the information the business needs.
Has bankruptcies
The investment made in it was recovered
The system is working well.
The staff really knows the system
FEEDBACK
It is defined as the method by which the action or effectiveness of a system is maintained through the continuous review of the elements of the process and its results, in order to make the necessary modifications.
Key Contents
A different understanding of the human phenomenon.
Main inconveniences around lawsuits.
How we deliver and receive opinions, criteria, views and judgments.
Competition to receive opinions.
Learn to exchange opinions, criteria, looks and judgments.
Competences to deliver opinions.
Feedback, the foundation of learning.
Who is it for?
Improve performance by accepting the error as legitimate.
Improve the welfare of the group.
Free your team from the pressures that affect them.
Build long-term relationships.
Improve the productivity of the organization.
Open effective spaces of trust and respect among the members of your team.
Identify actions that generate trust and openness.
ROAD CORRECTION
After having gone through all the previous points, we will make the necessary corrections to continue in the market.
What good is it for us to have found errors within the beginning of the company, to have developed work teams, to provide feedback if we simply do not put the correctives to work.
It is not only to find problems and that's it but to put the contingency plan or solve the problems, the fact that you know where you have a fault within your organization.
This does not mean that it will resolve itself, you have to make the decision to put the contingency system to work.
ADOPTION OF INNOVATIONS
Today we find technological advances that are constantly changing, so we must be aware of new advances, to be able to implement them in our company.
Technological advances as equipment must be seen according to the interests and capabilities of the company.
The people in charge of systems within your company are very given to be aware of the latest technological advances and therefore to the company to acquire them.
We must be careful when purchasing them as we can make an unnecessary purchase.
As new technology is acquired, you must make sure that your staff know how to use it and if not give them the proper advice so that they learn to use the new technology acquired by the company.
UNIT 3: MANAGEMENT OF PEOPLE
PRINCIPLES AND VALUES
Managing is the hardest task for those trying to build a major company.
Organizations use different strategies to achieve their objectives but whichever is chosen, the key to success lies in the ability of people to work together effectively, in groups and in teams.
Two aspects that must be taken into account are:
Pay attention to events and people around you.
Treat others as a welcome potential customer.
.It is necessary to generate more values and a new business culture with innovative management styles and personal capacities and abilities
DIRECTION PHILOSOPHY
The management philosophy is nothing more than knowledge of the area where you want to run a business. In other words, having the necessary guidance to start our own business.
In order to carry out a good Management Philosophy plan, we have to take into account our strengths, opportunities, weaknesses, threats to this group of requirements, it is known as SWOT analysis.
SWOT Analysis is a tool that allows to form a picture of the current situation of the company or organization, thus allowing to obtain an accurate diagnosis that allows, based on this, to make decisions in accordance with the objectives and policies formulated.
SWOT is the acronym for Strengths, Weakness, Opportunities and Threats.
Opportunities are those factors that are positive, favorable, exploitable, that must be discovered in the environment in which the company operates, and that allow obtaining competitive advantages.
Threats are those situations that come from the environment and that can even threaten the permanence of the organization.
Strengths are the special capabilities that the company has. It grants a privileged position against the competition. Resources that are controlled, skills and abilities that are possessed, activities that are developed positively.
Weaknesses are factors that cause an unfavorable position in the face of the competition, resources that are lacking, skills that are not possessed, activities that are not developed positively, etc.
SWOT analysis is a very simple and clear concept, but behind its simplicity lie fundamental concepts of the Administration. I will try to scrap the SWOT to expose its fundamental parts.
When doing a SWOT analysis the person must have the ability to distinguish in a system: the relevant from the irrelevant, the external from the internal and the good from the bad.
SWOT will allow us to analyze our company as long as we can answer three questions: What I am analyzing, is it relevant? is it inside or outside of the company? Is it good or bad for my company?
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MOTIVATIONAL STRATEGY
Maslow theory
Maslow or Needs Pyramid
Self realisation
Social
Security
Physiological
Self esteem
Herzberg factor theory
Satisfaction is related to the content of the job:
Conducting interesting work
The achievement
The responsability
Recognition
The promotion
STAFF EXPECTATIONS
In order to overcome their individual limitations, people group together to form organizations oriented towards the achievement of common goals.
Objectives Organizations and Individual Objectives
Individuals
What people want to achieve: salary, social benefits, security and job stability.
Organizational
What the organization aims to achieve: profits, productivity, quality, market share.
Exchange relations between people and organizations
Persons
To serve the needs of the organization, such as: work, skills, commitments, effort and time.
Organization
To meet people's needs such as: salary and training, security, benefits and opportunities.
The participation of the individual
The individual
Personal time and effort.
Costs
The organization
Satisfaction of Needs.
Profits