Organization

Principles of efficient organizing:

1. Pr. Of specialization.

2. Pr. Of functional definition.

3. Pr. Of scalar chain.

4. Pr. Of unity of command.

5. Pr. Of supervision

Factors influencing span of control:

1. Managerial abilities.

2. Competence of subordinates.

3. Nature of work.

4. Delegation of authority.

5. Degree of decentralization.

Elements of delegation:

Authority, Responsibility, Accountability.

Principals of delegation:

1. Pr. Of result expected.

2. Pr. Of equity of authority.

3. Pr. Of absolute responsibility.

4. Pr. Of authority level

Organizational culture

Organizational culture – refers to the belief of employees to be the main factor of successful functioning of the company.

Types of Organizational culture:

1. Normative

2. Pragmatic

3. Academic

4. Baseball team

5. Club, 6) Fortress, 7) Process.

Theme 9. Forecasting of foreign economic activity

1.Essence and content of forecasting of fea.

Forecasting – process of making statements about events whose actual outcomes (typically) have not been observed yet.

Forecasting starts with certain assumption based on the management’s experience , knowledge and judgment.

Forecasting is the process of predicting changing conditions and future events that may significantly affect the business of an organization.

Features of forecasting:

1. Forecasting is important to both planning and decision making

2. Forecasting is used in a variety of areas of FEA such as: production planning, budgeting, strategic planning, sales analysis, inventory control, marketing planning , logistics, planning and purchasing among others.

3. Its important to look at forecasting effectiveness. Forecasting techniques are most accurate when the environment is not rapidly changing

Conditions of efficient forecasting

1. Use of simple forecasting techniques

2. Comparison of every forecast with basic situation

3. Use of complex of forecasting methods

4. Understanding of impossibility of turning points in a trend

5. Short length of the forecasts

6. Permanent improvement of forecasting skills

Organization use forecasting methods of production and operation management to implement production strategies.

Forecasting involves using several different methods of estimating to determine possible future outcomes for the business.

Merits of forecasting

An organization uses a variety of forecasting methods to assess possible outcomes for the company. The methods used by individual organization will depend on the data available and the industry in which the organization operates. The primary advantage of forecasting is that it provides the business with valuable information that the business can use to make decisions about the future of the organization. In many cases forecasting uses qualitative data that depends on the judgment of experts.

Demerits of forecasting

It isn’t possible to accurately forecast the future. Because of the qualitative nature of forecasting, a business can come up with different scenarios depending upon the interpretation of the data. For this reason , organization should never rely 100 % on any forecasting method. However, an organization can effectively use forecasting with other tools of analysis to give the organization the best possible information about the future. Making a decision on a bad forecast can result in financial ruin for the organization, so an organization should never base decisions solely on a forecast.

Principle of forecasting:

-forecasts are rarely perfect

-forecasts are more accurate for grouped data than for individual items

- forecast are more accurate for shorter than longer time periods.

Stages of forecasting:

• Find out objectives and main characteristics of the forecast: level of detail, units of analysis and time horizon required;

• Evaluate and analyze appropriate data: identify needed data and whether its available;

• Select and test the forecasting model: cost, ease of use and accuracy;

• Generate the forecast

• Monitor forecast accuracy over time.