Managerial Functions Chapter 1 PDF

**[Managerial functions]** Understand the structure and functioning of a company: - What Is a business ? - How is the company organized? - How is the company structured? - How does the company operate? Develop a method for argumentation **Chapter 1: Interdependence between functions i...

**[Managerial functions]** Understand the structure and functioning of a company: - What Is a business ? - How is the company organized? - How is the company structured? - How does the company operate? Develop a method for argumentation **Chapter 1: Interdependence between functions in the company** We can define a business/company Organization = big Company = public organization, NGO, private organization **Def: Organization (Company)** - 3 commun aspects - Constituted by individuals - Structured (the aims of such a specific module) - Objectives , goals What is a business company? - Business = an objective (or several) to achieve through a series of tasks How to achieve these objectives? - Task division - Grouping tasks regarding similar fields of activity - Grouping fields of activities by functions - Coordination of activities then functions. - Objectives achievement **"Taylorism"** = division of tasks (ex: Ford been the first to implement the standardization/ division of work within the factories). Particularly effective. Tasks -\> Activities -\> Functions -\> Company Functions are **not independent** but interdependent, there is a need for coordination which is mostly provided through the role of **IS.** The "glue" = the connections and relationships between functions **IS** = Information System [Concepts: ] - **Activity =** number of complementary tasks to achieve a goal, result from the division of tasks - **Function =** set of activities (tasks), related to a management field, that are structured and grouped together within an organization - **Information system =** all means and methods that are implemented to collect, process, store, and disseminate information. In charge of coordination between functions. - Specific **cross-disciplinary function** made to facilitate the coordination between all the functions of a company. **Possible various functions who can constitute a company:** multiple combinations -\> interdependencies. - Production and R&D: Development, standardization, cheapest - Purchases and logistics - Commercial/ Marketing: customization, spending money, being special, unique, satisfy the needs of the customers. - HRM - Financial management - Quality management I. ***[The System approach to management ]*** How a company could be understood as a system? **System approach**: introduced in the field of biology (50's biologist's approach) Aim = understand the overall functioning of cells Dynamic perspective, trying to evolve, being sustainable. ***Ex:** the human body* **Global and multidimensional** vision of interacting components from an entity led to the **adaptation to management.** **System =** set of elements with dynamic interactions, organized according to a specific purpose, and operating in an environment that influences them. - **Elements** = stakeholders, resources, activities, functions... - **Dynamic interaction =** evolve over time, you always have to adapt. Deal with the threats or the opportunities. - **According to a purpose** **=** strategic purpose of the company - **Environment outcomes =** open towards the outside, all the elements coming from the outside could have an impact. Understanding a system in its entirety, through the relationships existing between elements, without itemizing them. **5 key points:** - Differentiated but interrelated elements. - System boundaries with its environment - Inflows and outflows - A goal - Control processes for managing the system within its environment and achieving the initial goal. ***2. The business company = a system*** ***2.2 Deconstruction of the company through functions*** **Brain =** decision center -\> Top-management, communication network, information work **The nervous system =** information and communication (internal and external) **Sensory organs =** system for gathering information **Survival =** goal -\> survival **Sweat =** self-control -\> self-regulations or not **Organs (specific interdependent functions)** = part of the human body -\> production, finance, HR, commercial, R&D functions **Skin =** boundaries -\> company/ environment, some connections are going to be effective with the outside. ***2.3 A system interacting with other systems.*** The business company **is a system as all,** such a business company is going to interact with other type of system. **[Ex:]** system of partners (customers, suppliers, banks, competitors, shareholders); cultural values, social, ideological, religious, ecological, demographic systems; overall system (legal framework, technical, standards, economic policies, institutions...). ***3.Interaction and interdependence between functions*** ***3.1 The sequence of functions/process activities*** ***3.2 Porter's value chain model*** Value Chain Analysis EXPLAINED with EXAMPLES \| B2U ***[Ex]***: Ikea [Primary activities]: necessary for the well development of the company **1° Inbound logistics:** Coming into the factories. **2° Operations**: Producing Used the raw materials (inputs) in order to change them into outputs. **3° Outbound logistics:** out to move the stuff to the stores. **4° Marketing & sales:** getting them and selling them. **5° Service:** after-sell services, guarantee... [Support activities: ] **Firm infrastructure** **Human resource management**: recruiting process. **Technology development:** used by any king of department. **Procurement** II. ***[Coordination through information systems ]*** **Rappel: Information systems =** all means and methods (computerized or not) that are implemented in order to collect, process, store, and disseminate (= activities) information in charge or coordination between functions. 1. ***Definition of information systems*** **[IS features/characteristics: ]** - Complex - Global and integrated - Computerized (most of the time): need an interface between the users and the creators. - Permanent in time: evolving, depending on many characteristics. - Provides a lot of benefit to the companies, especially in our days. Constant evolution in those systems. Improving the decision-making process. IS assist managers, human people for the decision-making process (ex: AI). 2. ***Evolution of information system*** Evolution of technology -\> real-time treatment of information, permitted through the benefits from IS to decision systems. **Ex:** QR code, apple watch, apple vision pro... Development and dissemination of communication networks (internet social networks) -\> network interconnection. Connections between distinctive IS systems from partner companies. **Ex**: Carrefour is a supplier of Danone: Co-opetition Development of ERP (Enterprise Resource Planning) Integrated Management systems -\> Tools allowing the company to optimize the management of its products and services. Based on the implementation of an only database. **Ex:** BMW, Porsche 3. ***The role of information systems*** 1. ***Inside the process of decision*** **Before**: IS enhance decision-making **During:** IS propose various options for decision, IS interexchange **After:** IS provide decisions to managers (coordination role), IS monitor execution (means/results). 2. ***Relevance of information systems*** Using databases to improve business performance and decision making. - Very large databases and systems require special capabilities, tools (links towards Big Data) - To analyze large quantities of data - To access data from multiple systems - Three key techniques: - Data warehousing - Data mining - Tools for accessing internal databases through the Web. 4. ***Monitoring the company through IS*** ----------------------------------------------------------------------------------- IS is considered as pivots and necessary interfaces for the company's management. ----------------------------------------------------------------------------------- **Information systems:** - **Commercial IS:** understand the market and attract customers. - **Financial and Accounting IS:** identifying financial needs and capacities, facilitating strategic choices, managing activities. - **HRM IS:** identifying the staff, profiles, and competences of employees. - **Production IS**: supervising the technological evolution, products, quality, managing flows and maintenance. **The system approach to business:** - The company as a system - Deconstruction of system into functions - Interaction between functions -\> cooperation - Interdependence between functions -\> coordination **Information systems:** - Definition of IS - IS features (complex, automated, global, integrated, permanent) - Development of IS/spreading of information in real time