Understanding Organizations: Environment, Responsibility, and Processes

Proof of December: System Open

As it relates to the environment, there are constant exchanges.

Context

Organizations are open systems that relate to the context and are heavily influenced by it. The context is made up of all those factors that are outside the organization and affect its development.

General Environment

Composed of all those factors that influence the general social environment in which organizations develop their activities. Examples: Cultural factors, technological, educational.

Specific Environment

This is composed of the most important forces in the transformation processes and decision-making of the individual organization. Examples: consumers, suppliers, government agencies.

Social Responsibility

There are two opposing views that define it:

  • Classical View: States that the only social responsibility of management is to obtain the maximum profit possible.
  • Socioeconomic Viewpoint: Maintains that management’s responsibility goes beyond profit-making and includes the protection and improvement of society’s welfare.

The Administration as a Process

Refers to the process of making things active and completed efficiently with and through others. The process represents the primary functions or activities with which the administration is committed.

Administrative Functions

  • Planning: Includes defining goals, establishing strategies, and developing sub-plans to coordinate activities.
  • Organization: Determines what needs to be done, how it will be performed, and who is going to do it.
  • Direction: Divide and motivate all parties involved and resolve conflicts.
  • Control: Monitoring activities to ensure that the agreed plans are compared with the target outcome.

SWOT Analysis

It allows the rapid appreciation of the situation of a company relative to its external environment and an introduction to aspects of the internal environment.

External Environment

Opportunities are those potential actions of actors within the environment that could generate a profit for the company if detected in time and efficiency. Threats are potential actions of the actors who are part of the environment whose effect could be detrimental to the normal performance of the company.

Internal Environment

Strengths are the aspects of the company that give it an advantage because they offer greater benefits with regard to their competence. Weaknesses are those aspects which represent a disadvantage compared with competitors.

Defining Competition

According to Porter, competition is defined as companies that are dedicated to providing a product or service in the same market.

Business Activities

We analyze organizations from knowledge of its dynamic management, which includes its structure and work processes. The structure is the network of roles and rules that link human groups. The planning, management, and control actions are carried out from this organization for achieving the purposes of the organization and is an integrated and interactive process that separate it only makes sense to study properly.

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Elements of Cost of Production

  • Raw Material: The value of physical assets that will be processed in the production process.
  • Workforce: The value of the work of the operators needed to transform raw materials and materials into products.
  • Manufacturing Expenses: Are those with the greatest difficulty in its allocation, includes indirect materials and indirect labor costs themselves.

Cost Classification

  • Fixed: The one that originates whatever the volume of production.
  • Variable: Is one that fluctuates with production; higher production, higher variable costs, and vice versa.

Marketing

A discipline that helps you organize and take decisions on all activities related to the process from developing a new product, to put it into consumer’s hands. Lets keep the employer about the variants of the consumer.

Technology Applied to Production

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