international diploma in administrative management unit 2: administrative systems and process...

International Diploma in Administrative ManagementUnit 2: Administrative Systems and Process

Welcome to Presentation

The main aims of this unit

• To introduce the key systems and processes.

• To introduce the role of system thinking.

• To provide a useful foundation for further studies (Advanced Diploma) and

• To raise awareness of the general value of systems and processes.

Learning Outcomes

• To understand the different types of organisations, background, nature and the purpose of administrative process.

• To realize the efficient and effective performance of an organisation and its administrative operations.

• To understand the importance of role, functions and procedures in meeting customer requirements and

• To know the role and purpose of different types of administrative systems in an organisation.

Contents

Section 1: The Organisation in Context

Section 2: Professional Administrative and System

Section 3: Administrative Procedures and

Section 4: Principal Administrative Functions


This section covers the following key areas:

1.1 The role of organisations in the business environment.

1.2 Organisational mission, aims and objectives.

1.3 Types of organisation.

1.4 New models of work organisation.

1.5 Organisational structure and culture.


1.1 The role of organisations in the business environment.

Organisation:

A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals (Robbins, 2003).

Organisations enable objectives to be achieved that could not be achieved by the efforts of individuals on their own ( Mullins, 2007:75).


Organisation: Organisation is a social constructs created by groups in

society to achieve specific purposes by means of planned and co-ordinated activities. These activities involve using human resources to act in association with other inanimate resources in order to achieve the aims of the organisation ( Farnham & Horton cited by Mullins, 2007, p.75)


Business organisations have become a key element of virtually every society within the global economy. Organisations exist in an environment that is basically composed of;

Competitors Suppliers and Customers


Business Environment also influenced by other factors that can be grouped as Political, Economic, Social and Technological ( PEST)

1. Political: (Legislation, e.g. On taxation and employee low)

2. Economic: ( Inflation, interest rates, and consumer expenditure and disposable income).

3. Social: (Change in life style, attitude to work and demographic changes)

4. Technological: (Rapid change in technology, customer’s threshold expectations)

Section 1: The Organisation in ContextPEST Analysis for example (Online training company X)

Political Economical Social Technological

Due to the current recession many companies have cancelled further trainings in order to cut cost. Training companies will suffer; as less money will be spent on staff development

The weakening of the pound made British businesses interesting to foreign investors’

The aging workforce has created the need to develop a strategy where new staff can gain knowledge in order to bridge the gap of knowledge due to early retiring employees

Rapidly changing technology has made it harder for X to compete. Changing technology caused an acceleration of customer’s threshold expectations. For companies this means to find, either ways to meet changes in technologies or ways to bridge those threshold expectations.


Therefore, the role of business organisation within the environment is very significant. Buchanan and Huczynski (1985) have defined organisations as ‘social arrangements for controlled achievement of collective goals’. The two key ideas implied in these statements are;

• The need to achieve or carry out tasks.

• The social aspect to any organisation.


Common factors in the organisations: Despite the differences, there are at least three common

factors in any organisation:

• People (make up organized)

• Structure (relationship, responsibility and information flows)

• Objectives (objectives are statements of what the business is seeking to achieve)

And for an organisation to survive the fourth factor

• Management ( the process of bringing together everything that happens in the organisation)

Common factors in organisation

Interactions and efforts of PEOPLE in order to achieve OBJECTIVE channelled and co-ordinated through STRUCTURE directed and controlled via MANAGEMENT

School

Firm of accountants

Prison

Nationalised industry

Airport

Motor car manufacturer

University

HotelLeisure centre

GovernmentBank

Local authority

Retail shop

Hospital

Quality work

Source: Mullins, L.J. (2007) Management and Organisational Behavior, 8th edn, p.76


1.1.2 Functions and processFunctions:

Functions reflect the key areas of the organisation and make it possible to diverse chains of command and allocate appropriate resources.

• A marketing department.

• A personnel department.

• A finance department.

Process:A process is a course of action or method of operation. • To define how to actions are to be carried out.

• Usually articulate in the form of written down procedure.


1.2 Organizational mission, aims and objectives.1.2.1 Planning:

Planning encompasses defining the organisations’ objectives or goals, establishing overall strategy for those goals, and developing a comprehensive hierarchy of plans to integrate and co-ordinate activities ( Robbins, 2001:80)

A plan for each day’s work:– What is to be done, and why do it?– When is it to be done, and how will it be done?– Who is to do the job?– Where should it be done?

16

Planninghas 4

elements:

Objectives Actions

ResourcesImplementation


17


A task can not be accomplished if the

manager is not aware of:

How isit to bedone

Whathas to

be done

When isit to bedone

Why Is Planning Important?


1.2 Organizational mission, aims and objectives.1.2.2 Planning at three-level

1. Tactical planning: • Managing cash flows.

• Ensuring customer services.

• The time scale may be weeks and months rather than of years

2. Strategic planning: To greater understand of the need for information.• Time scales will be longer than tactical level (several years).

3. Visionary planning: The timescale may extend far into the future (five to seven years may be devised)


1.2 Organizational mission, aims and objectives.1.2.3 SWOT Analysis

Strengths:• Motivated and committed staff.• High level of technology skills offered by most staff.

Weaknesses:• High level of borrowing.• No opportunity to extend premises

Opportunities:• Expansion into new markets.

Threats: • Fluctuations in the exchange rate of the local currency.


1.2 Organizational mission, aims and objectives.1.2.4 Aims:

Aims are long-term intentions that provide a focus for setting objectives.

For example-

An aim of an organisation might be to provide the best mobile network service in the world.

Objectives:

Objectives are the ends towards which the activities are aimed. Objective should be shared, measurable, achievable, repeatable and time linked. For example – Company A wants to increase 15% of profit in the next year, it is specified so it is objective.


1.2 Organizational mission, aims and objectives.1.2.5

Values: Values are the ethical principles that guide an organisation’s actions.

Ethics: Ethics are often expressed as a code of conduct developed by the organisation.

• Integrity both personal and corporate.

• Environmental responsibility.

• Social responsibility

Goals: Goals are the desired related outcomes that a person intended to attain. Sometimes the word ‘goal’ is used instead of ‘objective’.


1.2 Organizational mission, aims and objectives.1.2.6 Vision and Mission:

Vision is the long term goal of an organization which is invisible.

Mission is the activities to achieve the goals of the organization. Organisations develop mission or vision statements in the belief that these are able to promote their intention to offer integrity, quality and customer service.


1.3 Types of organisation: When the business organisation is not owned by the state then the organisation can be classified into two-

1. Non-incorporated organisation.

2. Incorporated organisation.

Non-incorporated organisation: This type of organisations are described as sole traders and partnerships.

Sole traders:• The simplest form of organisation.• Single person owner.• Self-employed business.• No need for records to be kept other than for the purposes of taxation.


1.3 Types of organisation:

Partnerships:

• At least two people.

• A legal binding agreement.

• They do not have to publish any financial information.

• They have to provide information for taxation purposes.

• Unlimited liability.


1.3 Types of organisation: Incorporated organisation: Incorporate organisations are described as

either private limited company or public limited company.

Private Limited Company:• Share holders with limited liability.• Shares may not be offered to general public.• Private companies limited by shares are required to have the suffix

"Limited" (often written "Ltd" or "Ltd.")


1.3 Types of organisation:Public Limited Company:

• Shares can offer to general public.• All public limited companies' names end in "p.l.c“• A public limited company is called so since all shares are open to the public in general. Holding company:

An organisation that exists only to hold or own other companies is known as a holding company. It usually refers to a company which does not produce goods or services itself, rather its only purpose is owning shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies.


1.3 Other Types of organisation:Agency organisations:• It is important in the context of limited companies.

• It identifies the agents who are able to act on the company’s behalf.

• The directors of limited company are the agents empowered to act for the organisation. For example, the directors are able to enter into contracts with other bodies.

Not-for-profit organisation:

• Volunteer organisation (club, medical centre)

• Profit making is not their business.

• Exempt from tax.


1.3 Other Types of organisation:Formal organisation:

A formal organisation has been defined by Schien cited by Mullins, 2007:77

‘the planned co-ordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through division of labour and function, and through a hierarchy of authority and responsibility ’.

So, formal organisation is :• Deliberately planned and created.• Concerned with the co-ordination of activities.• Hierarchically structured with stated objectives and • Based on certain principles.


1.3 Other Types of organisation:Basic components of an organisation:

Top Management

Operational Core

Organisational support

Operationalsupport

Middle Management


1.4 New models of work organisation1.4.1 Shamrock organisation:

Shamrock Organization is an organizational structure where a core of essential executives and workers are supported by outside contractors and part-time help. The shamrock leaf shape is a symbolic representation of an organization with three types of workforce, having a main body and connected lobes that together form a whole. The term was invented by Irish academic and management author/philosopher Charles Handy.

Handy (Mullins, 2007) used the term of shamrock to describe a business with three types of worker.

• A permanently highly valued and skilled core (life time employment)• A contractual fringe (outsourced)• A flexible labour force ( hired and fired)


1.4 New models of work organisation1.4.2 Networked organisation:

The new approach by organisations that has become more common is that of networking, which includes informal and formal relationships.

In networked organisation people are independent and work together for a common purpose; it has multiple leaders, lots of voluntary links and interacting levels.

Networked Organization is an organisation where a management structure in which organizational units are tightly clustered, where there is a joined network of relationships and functions.


1.5 Organizational Structure and Culture1.5.1 Organisational Structure:

1. Entrepreneurial structure:

2. Bureaucratic structure:

3. Matrix structure:

4. Independent structure

5. Hybrid structure


1.5 Organizational Structure and Culture1. Entrepreneurial structure:• To identify business opportunities.

• To take risks willingly.

• Creativity is the main element.

• Quick decision making.

• Involvement of people is few.

• Short term successful.

• More common in small businesses.


1.5 Organizational Structure and Culture2. Bureaucratic structure: The German writer, Max Weber (1864-

1920) was inclined to regard bureaucracy as the ideal form of organisation, because it is impersonal and rational.


2. Bureaucratic structure: A structure with highly routine operating task achieve through

specialisation , very formalise rules and regulation, tasks that are grouped into functional departments, centralised authority, narrow span of control, and decision making that follows the chain of command.

• System and procedure is more clear.

• Decision making is relatively slower.

• Creativity and innovation is less encouraged.


Characteristics of bureaucracy

• Hierarchy.

• Specialisation and training.

• Professional nature of employment.

• Impersonal nature.

• Rationality.

• Uniformity in the performance of tasks.

• Stability.


Benefits of bureaucracy

• Fairly routine tasks.

• It is very efficient

• Adherence to the law safety and security


Problems with bureaucracy

• Slow decision making.

• Uniformity create conformity.

• Slow to change.


3. Matrix Structure Matrix Structure is defined as a type of management system where

professionals with a variety expertise are brought together to work on a projects. They report to a number of managers of different projects. The idea is to share knowledge and personnel to maximize effectiveness.


How to define Matrix Structure

Steps:1. Understand the hierarchy of Matrix Structure. Professionals on a

project report to the project manager who in turn reports to a general manager or vice president. Since professionals can work on several projects under several managers at the same time, it is important to have strong central oversight from the senior managers. This ensures that there is no redundant work or conflicting interests.

2. Take into account the cost benefits of Matrix Structure. Fewer people need to be hired since workers are shared between different projects. Time can be saved as those workers share information as they work on different projects. Theoretically, this results in a better product at a lower cost.


How to define Matrix Structure (Steps)

3. Note that the strength of Matrix Structure lies in the sharing of information. Since professionals work on more than one project at a time, they can keep each other informed about progress in other areas of the company. Supporters of Matrix Structure believe that it makes a company stronger since different departments are not working against each other.

4. Realize that there are critics of Matrix Structure. Since professionals work for multiple managers there can be varying loyalties. If a Matrix Structure gets too big, it can be difficult to manage effectively. In-fighting can occur as managers compete for the time and attention of workers that they share.


How to define Matrix Structure (Steps) 5.

Remember that a Matrix Structure is a constantly changing form of management. As projects are created and dissolved, workers are redistributed among them. Managers are continually hired, reassigned and dismissed as projects require. A Matrix Structure can be temporary, lasting only as long as a project


Matrix Structure


Advantages of Matrix Structure:• The matrix structure allows a better company-wide balance of

resources to achieve goals.

• There is a great deal of flexibility in precisely how the project is organized within the matrix.


Disadvantages of Matrix Structure:• The balance of power between the project and functional areas is very

difficult.

• Problems associated with shutting down projects.


Independent Structure:• Empowerment of employees.

• A more independent stance.

• Employees are given real power to make decisions

However, the disadvantage of the structure is that many people want only to do their job and do not wish for more responsibility


Hybrid Structure:• The term hybrid is used to denote that more than one structure within the

organisation.


1.5.2: Organisational Culture Culture may be stated as being the values, beliefs and norms of the

organisation that are shared by all staff (Mullins, 1994).

• Organizational culture includes values, beliefs, work systems and practices, expectations and limitations on employee behavior.

• Examples of cultural issues in organizations might include dress codes, punctuality, formal (and informal) relationships between supervisors and subordinates, attitudes towards work and management, communication and participation.


Types of culture: Handy identified four types of culture

• Person culture: Individuals have a great deal of autonomy and influence upon them is in the form of personal power.

• Task culture: The key aim is to bring together resources and get the most from those resources (Matrix structure)

• Role culture: Role culture is most frequently found in bureaucracies.

• Power culture: Power culture is heavily dependent on central power sources. This type of culture is often in small and entrepreneurial organisations.

Thank you

for attending the session

international diploma in administrative management unit 2: administrative systems and process...

Documents

role of organisations

organisation farnham

administrative procedures

administrative managementunit

administrative operations

context business organisations

key systems

contextthis section