Formal vs. Informal Business Structures
Formal and Informal Organizations
Formal Organization: Sets the direction, brand relationships, hierarchical positions, brand management activities, and communication channels. It operates hierarchically.
Informal Organization: Arises spontaneously, establishing relationships based on friendship, affinity, etc. Activities are voluntary and do not necessarily align with the business’s goals. Friendship groups form based on affinity, and authority may be exercised by individuals other than designated leaders.
Organizational Structures
- Hierarchical Organization: A system based on the authority of the head, where top management sets goals and takes responsibility for them.
- Organization by Objectives: Subdivides overall business objectives for a given period into partial objectives assigned to each department or area. Each unit has sufficient autonomy to achieve them.
- Participatory Management by Objectives: Involves negotiation between management and those responsible for achieving the objectives. The targets are previously accepted by those who have to implement them.
Operating Department of HR
Key roles include:
- Employment
- Personnel management
- Payroll
- HR development
- Labor relations
- Social services
Communication Flows
- Downward Communication: Transmitted from superiors to subordinates to convey rules or orders.
- Ascending Communication: Flows from lower hierarchical levels to superiors.
Purpose of Ascending Communication
To understand the company’s direction, the concerns, aspirations, and difficulties of subordinate staff, and to detect potential abuses by middle management.
Limitations of Ascending Communication
Subordinates’ reluctance to communicate with superiors and the potential for middle managers to filter information.
- Lateral Communication: Occurs between departments and individuals at the same level.
Internal Communication Methods
- Internal Circular: Written communication sent directly from management to multiple individuals.
- Warnings: Written, non-personalized notices placed in a conspicuous location, such as a bulletin board, for all staff to read.
Control Objectives
Measures achieved results, compares them with initial objectives, and takes necessary steps to correct deviations.
Absenteeism
The total number of absences of workers from a given workplace, *including justified absences*.
Employee Record
A chronologically ordered set of documents reflecting each employee’s work history, including training, work performed, functions, etc.
Documents Included in an Employee Record
Job application letter, CV, personal data sheet, results of selection tests, academic transcripts, etc.
Employment Contract
An agreement between two parties where one (the worker) agrees to provide services under the employer’s direction in exchange for a salary.
Contractual Capacity of Minors
- A minor under 17 living with parents, *cannot* sign a contract without parental authorization.
- Between 16 and 17 years, parents must sign unless the minor is emancipated.
- An emancipated minor under 18 *can* enter into a contract.
Parties to an Employment Contract
- Workers: Individuals who voluntarily perform work under the organization and direction of the employer.
- Employers: Natural persons, legal entities, and asset-holding entities.
Restrictions on Night Work
Minors *may not* perform night work.
Essential Elements of an Employment Contract
- Consent: The contract is made by mutual agreement.
- Object: The worker’s activity is remunerated with wages.
- Cause: Paid employment (for civil servants, this refers to a paid position).
Labor Law
A set of rules governing relations between workers and employers.
Activities Excluded from Labor Law
Work performed by public officials, performance of counselor or administrator activities for companies, work done out of friendship, family work, and activities of commission agents.
Basic Rights of Workers
Right to work and free choice of occupation, free association, collective bargaining, adoption of collective action, meeting, strike, and participation in the company.
Special Labor Relations
Senior management staff, domestic servants, professional athletes, artists in public performances, trade representatives, employed lawyers, etc.