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MANAGEMENT AND ORGANIZATION IN BUSINESS, Lecture notes of Economics

"Management and organization in business pertain to the practices and structures that guide how a company is led, its resources are coordinated, and its goals are achieved."

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2021/2022

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CHAPTER 5
MANAGEMENT AND ORGANIZATION IN BUSINESS
UNDERSTANDING ORGANIZATIONAL MANAGEMENT
Management and organization are two key concepts in running a successful business.
Management is related to the process of planning, organizing, directing and controlling
resources in an organization to achieve predetermined goals. Meanwhile, organization
is related to the structure, culture and governance of a company.
The organization will run well if the management used in the organization is
appropriate. This can be called organizational management. Almost all companies need
good organizational management. If management is good, then it is very likely that the
company's goals can be achieved.
Reporting from My Accounting Course, organizational management is management
activities carried out to fulfill company goals, including dealing with existing problems.
Organizational management functions Why is the organizing function considered an
important function in management? Because management forms an organizational
system that makes it easier for management to control and supervise the ongoing
organization. That way, management itself can find out where management deficiencies
lie so that they can be corrected and management goals can be achieved.
UNDERSTANDING MANAGEMENT
The term management has many meanings. The definition of management according to
Daft (2003; 4) is:
"Management is the attainment of organizational goals in an effective
and efficient manner through planning, organizing leading and controlling
organizational resources."
The meaning of the definition of management above is that
management is achieving goals in an effective and efficient manner through planning,
organizing, directing and monitoring resources. Universally, management is defined as
the use of organizational resources to achieve targets and high performance in various
organizational activities.
Management is a process of planning, organizing, mobilizing and monitoring resources
(both people, time, money, etc.) to achieve the goals set by the organization efficiently
and effectively. Management plays an important role in every organization, whether
business, government, or non-profit.
MANAGEMENT FUNCTIONS
Management functions are basic elements that are always present and inherent in the
management process which will be used as a reference by managers in managing an
organization or business in order to achieve planned goals. This is a basic concept in
management theory developed by Henri Fayol at the beginning of the 20th century. The
following is a brief explanation of each management function along with examples of
its implementation:
1. Planning (Planning): Planning is the process of formulating objective organization And
determine steps For achieve it . This covers identification target , determination
strategy , development plans , and allocation source power .
Example : A person
manager planning in a company Possible plan launching product new with set sales
targets , determine budget marketing , and designing timetable production .
2. Organizing (Organizing): Organizing involve arrangement source Power And
structure organization to achieve goals that have been set . This covers distribution
task , determination authority , and creation framework Work organization .
Example
: A person director operational organize team production with determine role And not
quite enough answer each member team as well as define How team the will interact
in chain production .
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CHAPTER 5

MANAGEMENT AND ORGANIZATION IN BUSINESS

UNDERSTANDING ORGANIZATIONAL MANAGEMENT

Management and organization are two key concepts in running a successful business. Management is related to the process of planning, organizing, directing and controlling resources in an organization to achieve predetermined goals. Meanwhile, organization is related to the structure, culture and governance of a company.

The organization will run well if the management used in the organization is appropriate. This can be called organizational management. Almost all companies need good organizational management. If management is good, then it is very likely that the company's goals can be achieved.

Reporting from My Accounting Course, organizational management is management activities carried out to fulfill company goals, including dealing with existing problems. Organizational management functions Why is the organizing function considered an important function in management? Because management forms an organizational system that makes it easier for management to control and supervise the ongoing organization. That way, management itself can find out where management deficiencies lie so that they can be corrected and management goals can be achieved.

UNDERSTANDING MANAGEMENT The term management has many meanings. The definition of management according to

Daft (2003; 4) is:"Management is the attainment of organizational goals in an effective

and efficient manner through planning, organizing leading and controlling

organizational resources." The meaning of the definition of management above is that

management is achieving goals in an effective and efficient manner through planning, organizing, directing and monitoring resources. Universally, management is defined as the use of organizational resources to achieve targets and high performance in various organizational activities.

Management is a process of planning, organizing, mobilizing and monitoring resources (both people, time, money, etc.) to achieve the goals set by the organization efficiently and effectively. Management plays an important role in every organization, whether business, government, or non-profit.

MANAGEMENT FUNCTIONS Management functions are basic elements that are always present and inherent in the management process which will be used as a reference by managers in managing an organization or business in order to achieve planned goals. This is a basic concept in management theory developed by Henri Fayol at the beginning of the 20th century. The following is a brief explanation of each management function along with examples of its implementation:

  1. Planning (Planning): Planning is the process of formulating objective organization And determine steps For achieve it. This covers identification target , determination

strategy , development plans , and allocation source power. Example : A person

manager planning in a company Possible plan launching product new with set sales

targets , determine budget marketing , and designing timetable production.

  1. Organizing (Organizing): Organizing involve arrangement source Power And structure organization to achieve goals that have been set. This covers distribution

task , determination authority , and creation framework Work organization. Example

: A person director operational organize team production with determine role And not

quite enough answer each member team as well as define How team the will interact

in chain production.

3. Staffing (Staffing): Staffing involves procurement , development , and processes

maintenance source Power man in organization. This including recruitment , training

, assessment performance , and management personnel. Example : A person HR

managers can planning the recruitment process employee new , do interview selection

, and develop training programs For increase Skills employees.

  1. Direction (Directing): Briefing is the process of giving instruction And guide to employee in carry out task them. This covers communication , delegation , motivation

, and leadership. Example : A person manager project give instruction to his team

about How finish tasks project , deliver bait back , and give motivate the team still

focus on objective project.

  1. Motivation (Motivating): Motivation is business For inspiring And push employees to work with productive And dedicated. This involve introduction incentives ,

recognition , and effort For understand need individual. Example : A person manager

Can provide performance bonuses to employees who achieve monthly targets they or

give award to employees who have contribute in a way special in project.

  1. Implementation (Actuating): Implementation is what stage _ plan And instructions that have been made in function planning implemented. This involve implementation

task , retrieval decision , and solution problem everyday. Example : A person manager

production ensure that machines operate in accordance with standards that have been

set And take action If There is problem production.

7. Supervision (Controlling): Supervision is a monitoring process performance

organization And compare them with standards that have been set. The goal is For

identify deviation And take action corrective If required. Example : A person manager

supervision Possible use report daily production For monitor efficiency production and

, if found problem , take steps repair.

UNDERSTANDING ORGANIZATION

Organizations are social entities that are structured and have certain goals. Organizations can be companies, government agencies, non-profit institutions, or social groups that seek to achieve common goals through coordination and allocation of resources. Organizations have structures, roles and procedures that define how activities and decisions are made within a defined context. By getting to know the organization, it is hoped that:

  1. Creating good relationships between members of the organization.
  2. Each member knows their duties and responsibilities in order to achieve the stated goals.
  3. Specialization in carrying out tasks

ORGANIZATIONAL FUNCTIONS Organizational function refers to the tasks and roles carried out by each section or department in the organization, including:

  1. There is a division of tasks and classification of company activities.
  2. Division of company activity tasks to predetermined groups.
  3. Determine the activities carried out to achieve company goals.

Organizational functions generally include:

  1. Production or Service : Make product or give appropriate service _ with objective

organization. Example : Department production in the factory or department home

service _ sick.

2. Marketing : Promote product or service And sell it to customer or market. Example :

Marketing team designing campaign advertisement.

  1. Finance : Manage finance organization , incl budgeting , accounting , and reporting

finance. Example : Part financial management _ payment wages employees.

  1. Source Power Human (HR ) : Manage power Work organization , incl recruiting ,

training , and management performance. Example : The HR department does it interview

selection.

TYPES OF ORGANIZATIONAL MANAGEMENT STRUCTURES

  1. Functional Structure: Here, the organization is divided based on functions or

departments such as production, marketing, finance, and human resources.Example: A

manufacturing company with separate production, marketing, and finance

departments. Each department is led by a department head who reports to the company's

CEO.

  1. Matrix Structure: This structure combines elements from functional structures and project-based structures. Team members may have two bosses: a functional manager

and a project manager. Example: A technology company with a product development

team that works cross-functionally. Each team member has a functional manager and a

project manager to whom they report.

  1. Product Based Structure: The organization is divided based on different products or product lines. Each product line has a dedicated team responsible for their products.

Example: A company that produces a number of different products. Each product line

has a dedicated team to manage the development, production and marketing of that

product.

  1. Region Based Structure: Here, the organization is divided based on geographical regions. Each region has separate management and operations. Example: Retail companies operating in various cities or countries. Each region has a separate management and operational team to manage the business in that region.

Organizational Management Structure is the basic framework that determines how an organization is organized and operates. Selecting the right structure is critical to achieving organizational goals and maximizing efficiency. Organizations can choose a structure that suits their size, goals and operational environment.

CONSIDERATIONS IN CHOOSING AN ORGANIZATIONAL MANAGEMENT STRUCTURE

  1. Organization Size: Larger organizations tend to have more complex structures. They may need deeper hierarchies and more departments to manage different aspects of their business.
  2. Organizational Goals: The type of business and organizational goals will influence the choice of structure. Organizations focused on product innovation may prefer a matrix structure, while organizations focused on operational efficiency may prefer a functional structure.
  3. External Environment: Changes in the external environment, such as increased competition or changes in technology, can influence decisions about structure. Organizations that need to adapt quickly may choose a more flexible structure.
  4. Organizational Culture: The values, norms, and culture of the organization must also be considered. Some cultures favor collaboration and cross-functional work teams, while others may be more hierarchical.
  5. Human Resources: Availability and skills of staff should also be considered. The structure must be appropriate to the employees' abilities and experience in operating the organization.

ORGANIZATIONAL CHART FORMS Hemy G. Hodges proposed four forms of organizational charts, namely:

  1. Form pyramid , chart This form A pyramid Where all arrangement position pursed to on with amount more positions _ little.
  2. Form Vertical , chart This form arrangement position Where delegation power from on to bottom.
  3. Shape , chart this forming stream authority from shoots leader highest until by department the lowest arranged from left to right or vice versa.
  4. Form Circle , chart This describe position Lowest arranged from outside field circle to direction point middle center circle , where at the point middle is leader highest.

VERTICAL PYRAMID SHAPE

HORIZONTAL FORM CIRCLE SHAPE

Successful implementation of an organizational management structure involves a good understanding of the organization's needs and goals, selection of an appropriate structure, effective communication, employee development, performance measurement, and readiness to adapt to change. With these steps, organizations can achieve the efficiency, effectiveness, and flexibility necessary to succeed in a dynamic business world. A good management structure is the foundation for the long-term success of an organization.

RELATIONSHIP BETWEEN MANAGEMENT AND ORGANIZATION Management and organization are two important aspects of running a successful business. Management involves the process of planning, organizing, directing, and controlling resources to achieve goals, while organization involves corporate structure, culture, and governance. Both work together to achieve goals and ensure good business continuity.

After understanding the basic concepts of management and organization in business, the next step is to implement these strategies and principles in daily practice. Here are some important steps to implement management and organization in business:

  1. Identify Goals and Strategies: a. Determine your company's short-term and long-term goals. b. Create strategies that will help achieve those goals, including marketing, financial, and operational strategies.
  2. Effective Organizing: a. Arrange an organizational structure that is in accordance with the company's goals and strategy. b. Distribute tasks and responsibilities clearly to employees. c. Make sure each employee has a role that suits their skills.

involves tight inventory control and continuous improvement.

  • Their high quality management has created a reputation for reliable, high quality cars

which allows them to adapt production to changing market demands.

  • Toyota's corporate culture is highly process-oriented and continuous improvement, with employees involved in problem identification and solution search. Google (Alphabet Inc.)
  • Google has highly decentralized management and gives autonomy to its employees to drive innovation.
  • They adopted the "20% Time" philosophy, where employees can spend 20% of their time pursuing personal projects that could benefit the company.
  • Google is known for its collaborative and relaxed company culture. This is reflected in an innovative and employee-oriented work environment.
  • Google's organizational structure supports a wide range of initiatives, from search engines to AI projects and hardware development.

Bibliography of this Chapter

  1. Prawirosentono, Suryadi, Introduction to Modern Business, Indonesian Case Study and Qualitative Analysis, 2002, Bumi Aksara, Jakarta
  2. Private, Basu, 2002, Introduction to Modern Business, Yogyakarta, Liberty Publishers
  3. Ricky, Griffin, Ronald, and Ebert, Business, 2002, Sixth Edition Prentice Hall, New Jersey
  4. Sigit, Suhardi, Introduction to Practical Company Economics, 1982, Liberty Publisher Yogyakarta
  5. Alma, Buchari, Introduction to Bismis, 2008, Alphabeta Bandung Publisher
  6. Fuad, M, Introduction to Bismis, 2009, Gramedia Jakarta Publishers
  7. Gitossudarmo, Indriyo, Introduction to Bismis, 1999, BPFE Yogyakarta Publisher