Managerial Functions and Interdependence

Managerial Functions

• Understanding a company involves analyzing its structure, organization, functioning, and operations.
• Companies are organized by individuals, structured by objectives and purposes, and have tasks and activities to achieve goals.
• Different organizations (companies, NGOs, public organizations, etc.) all have common aspects, including the individuals within them, their specific objectives, and their structural design.

Interdependence Between Functions in a Company

• A company is defined as an organization with a set of objectives or goals that it aims to achieve using a series of tasks.
• These objectives are achieved through the division of tasks into manageable activities.
• Similar activities are grouped into functions, and these functions are then coordinated.
• Taylorism, exemplified by Ford's approach, highlights the standardization of tasks into activities and functions.
• Activities, functions, and the company itself are interdependent; their coordination is crucial. This coordination is often facilitated by Information Systems (IS).
• A crucial element is the connection, or "glue," between different functions within a company.

The Company as a System

• Examining the company's interconnected elements provides a holistic understanding.
• Elements include stakeholders, resources, and functions, interacting dynamically.
• The company operates within its environment and its actions are influenced by this environment.
• Five key points to consider when examining companies as a system include differentiated but interrelated elements, systemic boundaries, inflows/outflows, a defined goal, and control processes.
• Examining a company as a system reveals the relationships between these elements.

Interaction and Interdependence Between Functions

• Companies are composed of interconnected functions (e.g., production, finance, HR, marketing).
• Processes exist between these different functions and can be modeled (e.g., using Porter's value chain).
• The value chain illustrates the interconnected activities required for transforming inputs into outputs, with supporting activities like procurement and human resources enabling these.
• Information systems (IS) play a crucial role in coordinating the activities within and across these functional departments.

Information Systems

• Information systems (IS) are vital tools in modern companies, encompassing all methods and means used for collecting, processing, storing, and disseminating information.
• IS features include complexity, integration across various areas, and their consistent evolution through computerization.
• IS support various functions within a company, from commercial functions (understanding customers) to financial and accounting functions, HRM functions, and manufacturing functions.
• IS are crucial for decision-making by providing data for analysis and supporting the management process.
• These systems improve efficiency and productivity by coordinating activities.

Monitoring the Company Through Information Systems

• Information systems are necessary for company management as they provide vital insights into the company's internal operations.
• IS facilitate interaction with the outside world and other systems, including customers, suppliers, and competitors.
• They are considered as essential and strategic pivots.