Organization and Management

• Efficiency


  The ability to maximize the output with minimum input. It is often referred to as "doing things right", and seeks to limit the wasted which is costly for business
• Effectiveness


  The capacity to attain an intended objective or result. It is often called "doing the right thing". The intention is to meet the desired goal regardless of the amount of input required
• Advantages of cooperative


  • Owned and controlled by members
  • Democratic control (one member, one vote)
  • Limited liability
  • Profit distribution (surplus earnings) to members in the form of dividends
  • Dividends are in proportion to a member's use of cooperative services
  • Highly encouraged by government due to benefits received by a greater number of people
• GENERAL PARTNERSHIP is a form of partnership wherein the partners have unlimited liability for the debts and obligations of the partnership.
• Planning


  The most basic of all managerial functions. Deciding in advance what to do, how to do it, when to do it and who is to do it. Provides the bridge to take us from where we are to where we want to go.
• Plan


  A predetermined course of action that includes searching for possibilities of future problems, using techniques to handle uncertainty, requiring reflective thinking and imagination, based on facts not emotions/wishes, and the other management functions depend on it
• Why do we make plans?

  To develop a clear concept of the organization, to create a desired future, to give the organization direction and focus its activities, to anticipate and respond to changing environments, to examine the organization's strengths and weaknesses, to develop a consensus among the guiding members.
• Types of Plans


  • Functional area plans (marketing, production, financial, HR)
  • Plans with time horizon (short-range, long-range)
  • Plans with varied frequency of use (standing plans - policies, procedures, rules; single-use plans - budgets, programs, projects)
• The Planning Process


  1. Setting organizational/divisional/unit goals

  2. Developing strategies/tactics to reach goals

  3. Determining resources needed

  4. Setting standards
• Important Principles in Planning

  • Primacy of planning
  • Flexibility of planning
  • Contribution to purpose and objectives
  • Pervasiveness of planning
  • Efficiency of plans
• Decision Making


  The process of choosing and selecting the best possible alternatives. Decisions are useless unless acted on or implemented.
• Types of Decisions


  • Programmed decisions (highly structured, repetitive)
  • Non-programmed decisions (unstructured, require developing solutions)
• Basic Decision-Making Process


  1. Identify the problem

  2. Gather information about the problem

  3. Develop alternative solutions

  4. Analyze the alternatives

  5. Select the best alternative

  6. Implement the alternative

  7. Evaluate the decision
• Types of Plans


  • Functional Area Plans
  • Time Horizon Plans
  • Frequency of Use Plans
• Functional Area Plans


  Plans prepared according to the needs of the different functional areas
• Types of Functional Area Plans

  • Marketing Plan
  • Production Plan
  • Financial Plan
  • Human Resource Plan
• Marketing Plan


  A written document or blueprint for implementing and controlling an organization's marketing activities related to a particular marketing strategy
• Production Plan


  A written document that states the quantity of output a company must produce in broad terms and by product family
• Financial Plan


  A document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities
• Human Resource Plan


  A document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company's strategic plan
• Short range Plans


  Plans intended to cover a period of less than one year
• Long Range Plans


  Plans covering a time span of more than one year, mostly undertaken by middle and top management
• Plans with Varied Frequency of Use

  • Standing Plans
  • Single-use Plans
• Standing Plans


  Plans that are used again and again, focusing on managerial situations that recur repeatedly
• Types of Standing Plans

  • Policies
  • Procedures
  • Rules
• Policies


  Broad guidelines used by managers to help make decisions and take actions on specific circumstances
• Procedures


  Plans that describe the exact series of actions to be taken in a given situation
• Rules


  Statements that either require or forbid a certain action
• Single-use Plans


  Plans specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated
• Types of Single-use Plans

  • Budget Plans
  • Program Plans
  • Project Plan
• Budget Plans


  Sets forth the projected expenditures for a certain period and explains where the required funds will come from
• Program Plans


  Designed to coordinate a large set of activities
• Project Plan


  Usually more limited in scope than a program plan and is sometimes prepared to support a program