IE 31 - Challenges to Industrial Organization and Management

• Coordination

  • is the control of different elements into an integrated and synchronized operation. It aids an organization to perform better to achieve their goals
  • by uniting the efforts or ideas of each individual involved.
• Coordination (Lyndall Urwich, Luther Gulick)

  • coordination is a principle of organization
  • POSDCORB
• Steps in Administration Process (Coordination Incorporated)

  • Planning
  • Organizing
  • Staffing
  • Directing
  • Coordinating
  • Reporting
  • Budgeting
• Planning

  • coordination tells what to include in a good plan and how to execute it.
• Organizing

  • Coordination is a part of it since it takes the first lead.
• Staffing

  Coordination is also needed here for it specifies who will be a staff and the rational placement.
• Directing

  • Coordination gives clear focus in this function since it involves the decision making part for execution as the leader of the enterprise instructed.
• Coordinating

  • keeping every activity in the organization run interrelated.
• Reporting

  • coordination plays a big part since it makes it realistic.
• Budgeting

  • coordination in this is needed for good appraisal
• Points to Show how Importance Coordination in Orgs

  • Size of the Organization (business size increase, employees increase; coordination must still be upheld)
  • Functional differentiation (if entities are not well-integrated; hindrances in achieving goal)
  • Specialization (if well-integrated, even specialized tasks can consider the total work done)
  • Interdependence of different process (increase units, higher need for coordination)
• Elements of Effective Coordination (Sequence)

  1. Effective Communication
  2. Understanding of interrelationships
  3. Good Humans Relations
  4. Good Relations (Key in achieving coordination)
• Internal coordination

  • coordination that occurs inside the organization
• Executives

  • handles internal factors since they are the ones who establish the policies
• Finding what each individual wants and getting what each likes similarly is one step towards overcoming internal coordination problems
• Internal Coordination

  • main goal is to bring all factors together as perfect as possible, to weld them into a smooth- working, efficient organization of the enterprise as a whole.
• Practice to Build Teamwork

  • Periodic meetings of department and division heads
  • Meetings of special personnel
  • Meetings of parent and subsidiary companies
• Supplementary Device to Improve Coordination in Meeting

  • Weekly Management Newsletter (report giving informal / confidential news to special group)
  • Regular Progress Reports
  • Appointment of special committees (promote better relationship between people)
  • Regular luncheon meeting and bull sessions (while eating)
• Integrating manager

  • position made solely for the purpose of maintaining the coordination between several departments.
  • product manager, project manager, program manager, or branch manager.
• Communication

  • is defined as process by which information is exchanged between individuals through a common system of symbols, signs or behaviour.
• Communication Cycle

  • message
  • message source
  • medium
  • message receiver
  • feedback
  • noise
• Three Types of Feedback

  • Informational (provides information; when asking questions)
  • Corrective (challenging or correcting message)
  • Reinforcing (receiver acknowledges clear receipt of the intended message)
• Interpersonal communication

  • is a type of communication that is primarily between two individuals. It is important because it helps to influence, express, inform, and reinforce formal structure.
  • encoding is the first step
• 3 Types of Interpersonal Communication

  • Oral (exchange of spoken words)
  • Written (use of print or ink materials)
  • Non verbal ( no use of any words and language)
• Organizational Communication

  • communication among groups or individuals
• 3 directions of Organizational Communications

  • Upward (used by the subordinates to inform their superiors)
  • Downward (used by managers to direct subordinates)
  • Horizontal (used in coordinating activities; members on same level)
• Member's Role in Communication

  • Gatekeeper (control the messages flowing thru channel)
  • Liaison (interpersonally connects two/more cliques)
  • Opinion Leader (informally influence other individual attitudes)
  • Cosmopolitan (has a relatively high degree of communication with the system's environment)
• External Coordination

  • deals with problems from outside the factory doors.
• Goals of External Coordination

  • Keep the company in line w/ industrial group and national economy
  • Fit the enterprise in the environment and nation
  • Bring the enterprise with the national economy
  • Understanding & response to external factors
• Outside Factors affecting Orgs Economic Progress

  • Labor Organization
  • Industrial Class
  • Economy
  • Government Operations
  • Demand
  • Responsibility to consumer
• Industrial World

  • immediate environment of an enterprise.
  • unit composed of the consumers, suppliers, and competitors which directly affects the goals and the degree of goal attainment in an enterprise.
• The industrial enterprise cannot function without coordinating its activities with the industrial world
• National Economy

  • defined as the economy of a nation as a whole that is an economic unit and is usually held to have a unique existence greater than the sum of the individual units within it.
  • agriculture, mining, manufacture, finance, trade, government, construction, and support.
• Geographical World

  • refers to the physical setting of the enterprise – local, regional, international, national and state.
  • Problems: local taxation, ordinance, safety of population, housing of community improvements, local charities
• World of Thought, Ideas, and Resources

  • This sphere tackles the practical aspects, which directly affect the individual enterprises, and abstract aspects, which seem to lie beyond practical affairs.
  • These aspects may be in the field of labor, science, technology, economics, politics, social, religion and resources
• Coordinating Channels

  • assists enterprises in handling their coordination problems
• 3 Networks of Coordinating Channels

  • Trade Associations
  • Regional and Special-Interest Groups
  • National Business Service, and Technical Organizations
• Trade Associations

  • a voluntary non-profit organization of business competitors established to look after the common interest of all member firms in an industry or particular branch of an industry.
  • does not buy, sell, nor produce products, but they focus on public relations
• Regional Associations

  • are those groups that operate in a particular area or region that aid in solving problems by group action.
• Special-interest group

  • is a community with an interest in advancing a specific area of knowledge, learning or technology where members cooperate to affect or to produce solutions within their particular field, and may communicate, meet, and organize conferences.