Organizational Issues in Marketing And Sales

ORGANIZATIONAL

2020 ISSUES IN

MARKETING AND

SALES

Organizations

An organization is a consciously coordinated social entity, with a relatively identifiable boundary,

which functions on a relatively continuous basis to achieve a common goal or a set of goals.

Organizations have an impact on all aspects of human experience. Everyone experiences organizations

in a number of different ways, we are involved and in organizations in almost all aspects of

our lives.

Organizations are goal-oriented social entities, which are inextricably linked to their environment, but

have nominal boundaries and employ deliberately designed and coordinated activities and approaches

to achieve their goals.

1) Social entities. Organizations always engage people, and are characterized by their

members and the relationships and interactions between them.

2) Goal/goal orientation. Organizations are created and used to achieve goals.

3) Nominal limit still linked to the environment. Formal organizations typically have

identifiable boundaries that distinguish them. They often appear flexible as they require

continuous exchanges with environments. Not only do they derive their members

from the environment, but also all the tangible resources (people, materials, energy) and

intangibles (information, legitimacy) they need to pursue their goals.

4) Deliberately designed and coordinated activities and approaches.

When we talk about organizations as real we reify them, which is treating as real what is merely a

concept or abstract idea.

Although many aspects are real (behaviors, logo, name, interactions between individuals, the

organization is not. We often anthropomorphized organizations as well, which means that we treat

them as real actors with human characteristics and abilities assuming that they act, learn, compete,

make decisions, and so on.

Organizations exist because they allow us to do things we couldn't do without them. They are

used to coordinate and direct the activities of their members. Nowadays, we are noticing

increasingly complex links and interactions between organizations within and between many areas,

localities, countries and regions, a process also discussed as part of the phenomenon of globalization.

Organizations exist only if they can contribute to more effective and efficient value

creation.

• Effectiveness:doing the right things, achieving organizational goals.

• Efficiency : Do things right and get as many outputs from the least inputs

• Rational Decision-Making describes logical and consistent choices while maximizing value.

When applied to organizations, management refers to actions and processes aimed at achieving

particular goals. "I'm not going to go resources

ORGANIZATIONAL STRUCTURE AND ORGANIZATIONAL DESIGN

Organizing means creating the structure of an organization, which is the formal arrangement of

processes within an organization. When managers develop or modify the structure, they are engaged in

organizational design, it is a process that involves decisions on six key elements:

1) Specialization of work. The degree to which an organization's tasks are divided into separate

processes. The whole work is not done by an individual, but, instead, is divided into steps,

and each step is completed by a different person. Individual employees specialize in being

part of an activity rather than the whole activity. When labor specialization was

implemented, employee productivity increased. Most managers today consider the

specialization of work as an important organizational mechanism, but do not

as a source of ever-increasing productivity. They recognize the economies it provides in some

types of work, but they also recognize the problems it creates when it is taken to extremes.

2) Departmentalization. Each organization has its own specific way of classifying and grouping

work activities.

- In the case of functional departmentalization, the groups are divided according to

the functions performed,

- In the case of product departmentization are divided by product line, in this

approach, every large product area is placed under the authority of a manager who is

responsible for everything that has to do with that product line.

- if group jobs are created based on territory or geography.

- Process department by product or customer flow.

- Customer departmentalization cliente groups jobs based on clients who have

common needs or problems that can be better met by having specialists for each.

Large organizations often combine most or all of these forms of departmentalization. Two popular

trends in departmentalization are the increasing use of customer department, to

monitor customer needs and respond to changes in those needs, and cross-

functional teams, groups of individuals who are experts in various specialties and working

together.

3) Chain of command. Continuous line of authority that extends from the higher levels of

organisation to the lowest levels and clarifies who reports to whom.

• The authority refers to the rights inherent in a managerial position to tell people what

to do and expect them to do so. The organization's leaders are granted a degree of

authority to fulfil their responsibilities and

• employees assume an obligation to perform any assigned tasks. This obligation is

known as responsibility. Finally,

• the unity of the command principle di comando helps to preserve the concept of a

continuous line of authority. It states that a person should report to only one

manager.

4) Extending the control. The control range corresponds to the number of

subordinati che directly to a particular manager or supervisor. How many

employees a menager can manage efficiently and effectively. The audit interval

determines the number of levels and managers in an organization. Many factors

affect it:

• skills and skills of the manager and employees, as well as the characteristics of

the work done. The more training and experience

that employees have, the less direct the supervision they will need.

The trend in recent years has been towards broad extensions of control, which are

consistent with managers' efforts to reduce costs, accelerate decisions made, increase

flexibility, approach customers and empower employees. To ensure that performance

does not suffer due to these broader ranges, organizations are investing heavily in employee

training.

5) Centralisation and decentralisation.

• Centralization describes the degree to which decision-making is concentrated at a single

point in the organization. If top managers make key decisions in your organization with

little to no input from below, your organization is centralized.

Decentralization the more lower-level employees provide input or actually make

decisions, the more decentralization there is. Another term for greater decentralization

is employee empowerment, dei which is increasing employee decision-making

discretion.

An organization is never fully centralized or decentralized. Few organizations could

function effectively if all decisions were made only by a select group of top managers;

nor would they work if all decisions were delegated to employees at the lowest levels. .

Lower-level managers are "closer to action" and generally have a more detailed

understanding of problems and how best to solve them than top managers.

6 Formalization. refers to the degree to which jobs within the organization are standardized and

the extent to which employee behavior is driven by procedures and rules.

- If a job is highly formalized,then the person doing that job has little discretion about

what needs to be done, when and how. In organizations with high formalization, there

are explicit job descriptions, numerous organizational rules, and clearly defined

procedures that cover work processes.

- On the other hand, where formalization is low, working behaviors are relatively

structured and employees have great freedom in the way they do their job.

Control: the ability to coordinate and motivate people to work in the interests of the organization.

Authority: The authority refers to the rights inherent in a managerial position to tell people what to do and

expect them to do so

THE APPROPRIATE STRUCTURE DEPENDS ON THE CONTINGENCY VARIABLES

1) Strategy. The structure of an organisation should make it easier to achieve the objectives.

Because the objectives are influenced by the organization's strategies, it makes sense

that the strategy and structure should be closely linked. Most current strategic frameworks tend

to focus on three dimensions:

• innovation, which reflects the organisation's search for meaningful and unique

innovations; Innovators need the flexibility and free-flowing information of the organic

structure.

• cost minimisation, which reflects the organization's search for tightly controlled costs;

cost minimisers seek efficiency, stability and rigorous controls of the

mechanistic structure

• imitation, which reflects an organization's attempt to minimize risk and minimize profit

opportunities by copying market leaders. The imitators use the structural characteristics

of both: mechanistic control to maintain tight controls and low costs and organic

structure to mimic the innovative directions of the industry.

2) Dimensions. The size of an organization has a significant impact on its structure. Large

organizations tend to have more specialisation, departmentalization, centralization, rules

and regulations than alle small

Organizations.

3) Technology. We can identify three categories, representing three distinct technologies.

• unit production, , described the production of items in units or small batches.

• mass di production, describes the production of large batches. Finally,

• the most complex, process production, included continuous process production.

Organizations adapt their structure to their technology. In general, the more routine is the

technology, the more the structure can be mechanistic.

4) Environmentaluncertainty. Some organizations face relatively stable and simple environments;

others face dynamic and complex environments. uncertainty threatens the effectiveness of an

organization, managers will try to minimize it by changing the structure of the

organization.

• The higher the uncertainty, themore a organization will need the flexibility, offered by

an organic design.

• On the other hand, in stable and simpleenvironments, mechanistic projects tend to

be more effective.

Global competition has accelerated product innovation by competitor, mechanistic

organisations are unable to respond to rapid environmental changes and uncertainty.

Management

Management : We define management as a process that involves planning, organizing,

guiding and controlling resources in order to achieve goals with and through people.

Organizations can be seen as means to achieve goals, while management is the process of

trying to achieve goals.

The management process is influenced by several sets

Individual members of organizations

It reflects differences between individuals such as different personalities and different styles

of thinking, but also differences related to the way they select and use information.

1) Interactions between and between people in organizations.

Leadership and management styles can create very different experiences. The relevant

decisions always apply to other members as well.

2) Formal systems of the organization .

This set of influence reflects the structure of the organization and delle its activities,

which partly determines and is also determined by the technologies used to achieve its

objectives.

3) Social and dynamic systems in organizations.

Reflecting fundamental issues such as culture and the impact shared norms and implicit

social expectations can have on behaviour and cognition in organisations.

➢ Complexity refers to the wide range of people and environmental factors that can have an

impact on the intended activity, operation and outcome of an organization and management

.

➢ Uncertainty is the lack of sufficient information about the nature and likelihood of certain

events that may impact the expected outcome.

Law of Unintended Consequences : Deliberate actions or changes in any part of an organization can

often have implications elsewhere or even throughout the system that were not foreseen or

foreseen.

TRADITIONAL ORGANIZATIONS

• Simple structure. A low departmental organization design, large extensions of control,

centralized authority in one person, and little formalization. This property is most commonly

used by small businesses where the owner and manager are the same person. Most

organizations do not remain simple structures. As your organization grows, it typically

reaches a point where it needs to add employees. As the number of employees increases,

the facility tends to become more specialized and formalized.

At this point, a manager might choose to organize around a functional structure or a divisional

structure.

• M-FORM (multi-split)

A term coined by O. Williamson related to the development of business dimensions and a definition of its organizational

structure.

This model provides for a decentralization of the management structure of the company through the establishment of

divisions or groups within the company each of which is responsible for a particular sector (which generally differs from

the others for the market segment it deals with or for the product offered)

Related benefits are:

In addition, there is a need to reduce the burden on the central management of the company, which can thus be more

profitable in dealing with long-term planning and coordination of the various sectors.

Increased involvement of decentralised sectors in business management;

A lower loss of information in the intra-business communication process, as the different steps are reduced from one level

to another;

It is a greater production efficiency as each division can successfully achieve the objectives outlined by the central

governing bodies.

Disadvantages

• redundancies due to multiple divisions

• rejection of economies of scale

• U-FORM (Functional)

A term coined by O. Williamson to indicate that particular form of organization of the company that

provides for a highly centralized management of the same and with controls that extend to all other

business structures (management, production, finance, personnel, etc.). This structure has the drawback

of being inflexible in that all decisions are taken by a single management centre; as the corporate

structure expands, this lack of flexibility results in a dispersion of information and the assumption of

incorrect decisions due to the limited knowledge by the governing bodies of all the complex business

joints.

An organisational structure more suited to large companies involves splitting decision-making across levels

Benefits

• delete resource allocations

• few redundancies

• economies of scale through

specialization

Disadvantages

• no clear responsibility to customers

• the more divisions, the higher the coordination costs

• units closed within functions

• danger of funnel effects

MECHANISTIC AND ORGANIC ORGANIZATION

• A mechanistic organization is rigid and tightly controlled. It is characterized by high

specialization, rigid departmentalization, tight control spaces, high formalization, a limited

information network and low participation in decision-making by lower-level employees.

This organizational design seeks to minimize the impact of different personalities, judgments

and ambiguities because these human traits are seen as inefficient.

• In direct contrast to the mechanistic form of organization, there is organic organization, which

is highly adaptive and flexible. It has division of labor, but the jobs that people do are not

standardized. Employees are highly trained and endowed with different tasks and work

issues, and these organizations often use employee teams. There are minimal formal rules

and little direct supervision.

ORGANIZATIONS AS SYSTEMS

A system is a set of interconnected and

interdependent parts arranged in order to produce a

unified set. Two types of systems:

- Open

- Closed.

The former is unaffected and does not interact with the

environment, the second interacts with the

environment.

Interdependencies:

-Technology

-Task interdependence: Work processes vary

depending on the degree to which they are

related:

Within systems is possible to recognize INTERDEPENDENCIES : work processes vary to the

degree

to which they are related. For example:

Pooled interdependence: there is a litule coordinatetjon, there are rules

Sequentjal interdependence: it implies planning and scheduling

Reciprocal interdependence: it implies MUTUAL ADJUSTMENT

CONTEMPORARY ORGANIZATIONS

Array

An organizational structure that assigns specialists from different functional departments to work

on one or more projects led by project managers.

This vertical dimension "weaves together" functional and product department elements,

creating an array arrangement. Creates a double chain of command. It explicitly violates the classical

organizational principle, the command unit principle.

Employees of a matrix organization have two managers:

➢ the head of the functional department

➢ product or project manager, who share the

authority.

BOUNDARYLESS STRUCTURE

➢ It stimulates the A more advanced type of organizational structure is the structure of the

project. In this case, employees are constantly working on projects. It has no formal

departments to which employees return to the completion of a project. All the work is done by

teams of employees who join a project team because they have the appropriate skills and work

skills, employees "join" the project teams because they bring the skills and skills needed for

that project and one has been completed, move on to the next one. This type of organization

tends to be flexible and fluid.

➢ No boundaries. An organization whose design is not defined or limited to the horizontal,

vertical, or external boundaries imposed by a predefined structure. Most organizations have

realized that they can operate more effectively in tod