KEY ASPECTS OF CORPORATE

ORGANIZATION, OPERATING
POLICIES AND CONTROL
ORGANIZATION
Organization
can be grouped into one of six major categories

• One-man Operation- most organization start this

way. This single manager may formulative vague
strategies and plans, make all decisions on the basis
of experience and limited first-hand knowledge, and
issue orders to all operating personnel
• Father-son or Manager Assistant- either one more
assistant, are used to multiply the efforts of the “ the
boss”, who retains all authority and responsibility and
makes all the decisions.
• Functional Organizations- favors significant
growth in many direction for its introduces the
concept of delegation of authority and
sanctions the use of professional management.
• Functional Organization, but with a Central
Headquarters and Geographical Dispersion
- this type of organization is an extention of
the third form just described but permits
manufacturing or sales operations in two or
more locations
• Multi- divisional firm- this type permits the firm
to cope with disparate product lines because it has
separate divisions for each product line and/or for
each geographical location
• Conglomerate- where the central headquarters
only maintains financial control over a number of
wholly- owned companies. This is a typical form
of organization where each unit has a different
product line and marketing system
 OPERATING POLICIES
• acts as a lubricant for the effective, efficient,
and smooth operation of the organization
• take from the form of statement which tell
managers how they should act in specific
frequently- recurring situations.
• POLICY: a verbal, written or implies guide
setting up boundaries and directions within
managerial decisions should take place. Hence, a
policy is a guide to decision-making
:a guide to decision-making
• RULE: a prescribed course of action which must
be followed
: a guide to individual action
• PROCEDURE: a series of related tasks that make
up the chronological sequence and the established
way of performing the work to be done.
: a guide of action
 Two basis sets of Operating Policies
• GENERAL POLICIES
- applicable at all levels and in all parts
of the organization
• SET OF FUNCTIONAL POLICIES
- developed for each functional area of
management. It would cover marketing,
distribution, purchasing, finance, etc.
 Managerial Control Of Operations
STEPS:
1. Standard of performance is established
2. Actual performance is measured in relation to
the standards
3. Performance information is channeled to the
person responsible for controlling that operation
4. Where discrepancies between standards and
performance occur, corrective action is initiated
 THE PROCESS OF MANAGERIAL
CONTROL
FOUR STEPS IN THE CONTROL PROCESS
1. The setting of standard or Performance,
present no great difficulty if management has
developed an operational plan
2. The measurement of Performance, may be
done at different levels, depending upon the
company’s organization and the activity being
monitored.
3. An information system must be
established
4. Prompt, Corrective Action
MANAGEMENT INFORMATION
SYSTEM