372

23

Bibliography list for students` autonomous work [3, 4, 5, 14].

Checklist questions

1.Draw up the types of structures and characterize them.

2.Write down the condition of coherence of the entire elements of nonoriented structure.

3.Give the definition of structural redundancy.

4.What does the term “structure diameter” mean?

5.Explain the meaning of word combination “element structure rank”.

6.Draw up a hierarchical structure with strong links.

7.Draw up a hierarchical structure with loose links.

8.Give the definition of “orgraph”.

9.What is the sense of strong and loose links?

10.Draw up a matrix structure and characterize it.

11.Give the definition of analogy and demonstrate its application when solving creative problems.

12.What are the basics of modeling process?

13.What does inherent structure complexity define?

14.What does structure complexity define?

15.What does standard – functional approach of designing represent?

24

Lecture 6. TYPES OF ORGANIZATIONS

Not easy work at factories or fields But harder work exists

This work - to live with people.

А. Mezhirov

There are notions of “formal” and “informal” organizations in

management. Formal organization is the institution characterized by:

-strictly regulated and documentary registered mission in external environment, functions, roles and role functions in an organization;

-rationality and impersonality of relationship between the members;

-availability of authority and management;

-organizational and functional structures.

Formal organization is based on public formalization of relationships, status, standards. We can give the examples of an enterprise, a university, a bank here and many other examples of organizations which are officially registered and perform according to formally assigned rules. There are no relationships between individuals there other than official and functional relationships.

Any organization performs in an external environment and this environment can be unpredictable towards this organization.

Classification of organizations is done according to the nature of relationship with external environment, the nature its components relationship, and relationship with an individual. Recently, the new types of organizations are developed to which echnocratic, participative, entrepreneurial and market-oriented organizations are referred.

Any enterprise goes through the following stages of its development: it can become a part of independent enterprises, that can be reorganized into a holding that in its turn can be transformed into a corporation. An enterprise

25

develops into a holding (concern) by consolidation of subsidiaries and formation of conglomerate of enterprises with a unified managerial company. In the course of evolution and improvement of business structure an enterprise develops to the level of modern enterprise (corporation). In such corporation there is a change in scope of organizational activity and the links with other entities become more complicated. Within the country a corporation can be developed to even more complex unit – a corporation of an industryscale.

There are also informal organizations – these are spontaneously gathered group of people that interact regularly to reach the goal. There is much in common between informal organizations and formal ones: goal, hierarchy, leaders, objectives, unwritten rules, called regulation, which are the patterns of behaviour for the members of an organization.

Informal organizations are within the formal organization and that brings to great difficulties of effective management of these organizations as the leader of formal organization has primordially low opinion of the

leaders of informal organizations.

The lecture plan of meaning orgraph is given in table 6.

End of Table 6

Bibliography list for students` autonomous work [3, 4, 5, 14, 30].

Checklist questions

1.Give the definition of formal organization. Give the example.

2.What is the difference between mechanistic and organic types of organizations?

3.On what kind of conditions could a mechanistic type and an organic type be applied?

4.What are the peculiarities of a traditional type of an organization?

5.What are the peculiarities of a divisional type?

27

6.When is a matrix type of organization applied and when is a multidimensional type of an organization applied?

7.What is the difference between a corporate and individualistic type of an organization?

8.What is the sense of echnocratic type of an organization?

9.What is the sense of participative type of an organization?

10.What is the sense of entrepreneurial type of an organization?

11.What are the characteristics of market-oriented organization?

12.Give the definition of the notion “evolution”. Give the example of evolutionary development of an object.

13.Give the definition of a holding. What are the trouble spots of a holding?

14.On what kind of conditions is a holding modified into corporation?

15.Give the definition of an informal organization. Reasons of informal organization emergence. Give the example of an informal organization.

16.What is the difference between formal and informal leaders?

17.On what kind of conditions can informal organizations exist?

Lecture 7. FORMAL ORGANIZATION - ENTERPRISE

Nothing is done on reasonable grounds.

O`Bryan`s law

An enterprise is a formal organization (object) manufacturing goods or services supplied into external environment. It includes the main-line, subsidiary production and subsystems of different kinds, for example planning and control.

Main-line production fulfils the functions closely connected with the transformation of means of production (input values) to finished goods (output results). Subsidiary production fulfils the functions securing the

28

regular work of the main-line production. Subsystem of planning and control processes the values of internal parameters and those ones of external environment of an organization and elaborates solution on how the main-line and subsidiary production should operate.

An efficient organization should meet a number of requirements, and be based on certain principles.

Production management includes the following major elements:

Managing process (parameter).

Measuring technique for a process or parameter.

Comparison of process or parameter value with estimated rate or estimated process capacity.

Adjustment of parameter or process with values exceeded feasible limits.

The lecture plan of meaning orgraph is given in table 7.

End of Table 7

Bibliography list for students` autonomous work [7, 11, 31].

Checklist questions

1.What is goal of production?

2.What is a sense of objectives which ensure the implementation of organizational goal?

3.What is the sense of specialization production principle and standardization production principle?

4.What is the sense of precision production principle and continuity production principle?

5.What is the sense of parallelism production principle and commensurability production principle?

6.What is the sense of reliability production principle?

7.What is the sense of production principle of uninterrupted process?

8.What do “sections” of production define?

30

9.What is the sense of specialization?

10.What is the sense of diversification?

11.Give the definition of competitiveness of production.

12.What is the difference between internal and external competition?

13.Relate the notion ‘system approach” and enterprise capacity.

14.Clarify the role of inventory at an enterprise.

15. Clarify the role of the notion “self-organization”.

16.Explain the difference between static and dynamic models.

17.What is the difference between object of labour and means of labour?

Lecture 8. EXTERNAL ENVIRONMENT

OF AN ORGANIZATION

Two worlds a person has: the one we were created, the other always we create as much as one can able.

N. Zabolotsky

The notion “external” environment denotes both aggregate of active business entities, economic, social and natural conditions and national and international institutional structures and other external conditions and factors surrounding the organization and making influence on different spheres of its activity. An organization cannot alter external effects, so a manager has to take an external environment into account, as an organization being an open system depends on resources supply, power, personnel and consumers as well. A manager has to expose essential factors of external environment and offer some proper means to response to external actions.

Depending on a certain objective external environment can be of aggressive or indifferent character, or occasionally can contribute to its attainment. So, proper assessment of every aspect of external environment contributes to effectiveness and efficiency of organizational activity.

31

There are a lot of points of view on structure of external environment in scientific literature, but the widely spread approach states that there are two levels in an external environment of any organization: the environment of direct influence (micro-environment) and the environment of indirect influence (macro-environment).

The environment of direct influence includes such factors as suppliers of material and technical resources, consumers of goods and services, competitors, laws and public authorities, fiscal and credit institutions, insurance companies.

The environment of indirect influence as a rule does not make a remarkable influence on an organization if to compare with factors of direct influence environment, however, a manager needs to assess its state. The structure of this environment is considerably more complex than the environment of direct structure. The principle factors of the internal influence environment are: economic, legal, social, political ones. Uneven development of these factors in a country generates greater ambiguity of the state of external environment for decision-making. It is well known that system complexity is proportional to the number of its components and to squared relation between them.

The lecture plan of meaning orgraph is given in table 8.