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Since the beginning of business in general, enterprising businessmen and women have always aimed for a better performance

than their competitors. This means: doing things better and faster than the others to deliver a product or service.

An example of a change in technology is the improvement of an existing system. The assembly line system shown here has rapidly grown to become more automated through the years

But why? "There is at least one point in the history of any company when you have to change dramatically to rise to the next level of performance. Miss that moment and you start to decline."
Andy Grove, Intel

Change in technology is more than just making more profits


it is constantly maintaining a rise in the

quality of your company.

not only through in house management but also through keeping up with the times.

"It is not the strongest of the species that survives, nor the most intelligent, but the ones most responsive to change. - Charles Darwin

Technology

erodes boundaries Physical and digital worlds are converging.


Consumers expect uniform service whether they are in the physical world or

if they are in the digital world.

The convergence of the business and personal use of technology is also fueling this trend.

The Next Generation Technology is just a tool and wont by itself change the world. The next generation has grown up in a world where use of technology in both their personal and professional lives is inherently understood.

this almost transparent use of technology will be

one of the major sources of change social networking, automation, identity and intelligence would not be disruptors but rather an ingrained part of society and business as usual.

Rise of the Machines Interconnected machines with the ability to harvest and exploit data will generate entirely new infrastructures of orchestrated and efficient systems.

Intelligence derived from these systems can

be exploited to:

enable transforming efficiency gains open up new modes of operation across both the physical and virtual world.

In 2013, mobile devices passed PCs to be the most common Web access tools. By 2015, over 80% of handsets in the markets will be smart phones.

There are three different methods of handling the conversion or production process - Job, Batch and Flow The various methods of production are not associated with a particular volume of production. (Not exclusive)
several methods may be used at different

stages of the overall production process.

complete task is handled by a single worker or group of workers.


Jobs can be small-scale/low technology as well as

Low technology jobs:

complex/high technology.

organisation is extremely simple with the required skills and

High technology jobs:

equipment easily obtainable. Enables customer's specific requirements to be included, often as the job progresses. Examples include: hairdressers; tailoring
Involve much greater complexity present greater management challenge. The important ingredient in high-technology job

production is project management, or project control. Examples: film production; large construction projects

work for any task is divided into parts or operations.


Each operation is completed through the

whole batch before the next operation is performed. Possible to achieve specialisation of labour. Capital expenditure can also be kept lower.

This method aims to:


Concentrate skills (specialisation) Achieve high equipment utilisation

Most commonly used method for organising manufacture. Example: the production of electronic instruments. Not without their problems:

There is a high probability of poor work flow, Batch methods often result in the build up of

significant "work in progress" or stocks (i.e. completed batches waiting for their turn to be worked on in the next operation).

Similar to batch methods - except that the problem of rest/idle production/batch queuing is eliminated. "method of production organisation where the task is worked on continuously or where the processing of material is continuous and progressive,"

The aims of flow methods are: Improved work & material flow Reduced need for labour skills Added value / completed work faster

In order that flow methods can work well, several requirements must be met:
(1) There must be substantially constant demand (2) The product and/or production tasks must be

standardised (3) Materials used in production must be to specification and delivered on time (4) Each operation in the production flow must be carefully defined - and recorded in detail (5) The output from each stage of the flow must conform to quality standards

The achievement of a successful production flow line requires considerable planning, particularly in ensuring that the correct production materials are delivered on time and that operations in the flow are of equal duration. Common examples where flow methods are used are the manufacture of motor cars, chocolates and televisions.

The differentiated product The differentiated product enjoys a distinction from other similar products/brands in the market. The differential claimed may be real, with a real distinction on ingredient, quality, utility, or service, or it may be psychological brought about through subtle sales appeals.

The customised product - Customer specific requirements are taken into account while developing the product. Commonly practised in the industrial product marketing, where the manufacturer and the user are in direct contact and the product gets customised to the requirements of the customer.

The augmented product The augmented product is the result of voluntary improvements brought about by the manufacturer in order to enhance the value of the product, which are neither suggested by the customer nor expected by them. The marketer on his own augments the product, by adding an extra facility or an extra feature to the product.

The potential product The potential product is tomorrows product carrying with it all the improvements and finesse possible under the given technological, economic and competitive condition. There are no limits to the potential product. Only the technological and economic resources of the firm set the limit.

Tells you the character of an organization and the values it believes in. Therefore, when you do business with an organization or getting into a new job in an organization, it is always a great idea to get to know and understand their organizational structure.

Bureaucratic structures maintain strict hierarchies when it comes to people management.

Pre-bureaucratic structures

There are three types of bureaucratic structures:

Bureaucratic structures

lacks the standards. Usually observed in small scale, start-up companies. Structure is centralized and there is only one key decision maker. The communication is done in one-on-one conversations. This type of structures is quite helpful for small organizations due to the fact that the founder has the full control over all the decisions and operations.

Post-bureaucratic Structures

Have a certain degree of standardization. When the organizations grow complex and large, bureaucratic structures are required for management. These structures are quite suitable for tall organizations. The organizations that follow post-bureaucratic structures still inherit the strict hierarchies, but open to more modern ideas and methodologies. They follow techniques such as total quality management (TQM), culture management, etc.

Functional Structure Divided into segments based on the functions when managing.

successful in large organization that produces high volumes of products at low costs. The low cost can be achieved by such companies due to the efficiencies within functional groups. Disadvantage from an organizational perspective if the communication between the functional groups is not effective.

Allows the organization to enhance the efficiencies of these functional groups. Example: Software engineers will only staff the entire software development department. This way, management of this functional group becomes easy and effective.

In this case, organization may find it difficult to achieve some organizational objectives at the end.

Divisional Structure

Divide the functional areas of the organization to divisions. Each division is equipped with its own resources in order to

function independently. Divisions can be defined based on the geographical basis, products/services basis, or any other measurement.

As an example, take a company such as General Electrics. It can have microwave division, turbine division, etc., and these divisions have their own marketing teams, finance teams, etc. In that sense, each division can be considered as a microcompany with the main organization.

Matrix Structure Organization places the employees based on the function and the product.
Gives the best of the both worlds of functional and

In this type of an organization, the company uses teams to complete tasks. The teams are formed based on the functions they belong to (ex: software engineers) and product they are involved in (ex: Project A). This way, there are many teams in this organization such as software engineers of project A, software engineers of project B, quality engineers of project A, etc.

divisional structures.