ADAPTING ORGANIZATIONS TO TODAY’S MARKETS

rizalharimagnadi@undip.ac.idIntroduction to Business

2012

Building an Organization from the Bottom Up1

Organize your business, Organizing, or structuring, begins with

determining what work needs to be done and then dividing up the tasks among member, that was called division of labor,

The member might have a special talent, and dividing tasks into smaller jobs is called job specialization

Building an Organization from the Bottom Up2

The process of setting up individual departements to do specialized tasks is called departementalization,

Part of the process would include allocating resources, assigning specific tasks, and establishing procedures for accomplishing the organizational objectives

Right from the start, company’s management have to make some ethical decisions about how they treat the workers

The Development of Organizational Design

Mass production is efficiently producing large quantities of goods

Business production processes and organization become complex,

Economies of scale, a term refers to the fact that companies can reduce their production costs if they can purchase raw materials in bulks

Fayol’s Principles of Organization1

Unity of command, each worker is report to one, and only one, boss

Hierarchy of authority, all workers should know to whom they should report,

Division of labor, functions are to be divided into area of specialization such as production, marketing, and finance,

Subordination of individual interest to the general interest, workers are to think of themselves as a coordinated team

Fayol’s Principles of Organization2

Authority, managers have the right to give orders and the power to enforce obedience,

Degree of centralization, the amount of decision-making power vested in top management should vary by circumstances

Clear communication channels, all workers should be able to reach others in the firm quickly and easily

Fayol’s Principles of Organization3

Order, materials and people should be placed and maintained in the proper location,

Equity, a manager should treat employees and peers with respect and justice

Esprit de corps, a spirit of pride and loyalty should be created among people in the firm

Marketing : Building Customer Relationships

What is Marketing ?

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchange that satisfy individual and organizational objectives

The marketing concept had three parts :(1) customer orientation, (2) service orientation, (3) profit orientation

Customer Relationship Management (CRM)

The process of learning as much as possible about customers and doing everything you can to satisfy them -or even exceed their expectation- with goods and services over time

The Marketing Process With The Four P’s

1. Find opportunities,2. Conduct research,3. Identify a target market,4. Design a product to meet the need based on

research (PRODUCT),5. Do product testing,

The Marketing Process With The Four P’s (cont.)

6. Determining a brand name, design a package, and set a price (PRICE),

7. Select a distribution system (PLACE),8. Design a promotional program

(PROMOTION),9. Build a relationship with customers