Week 2 introduction of organisation

Management can be defined as a skill of controlling about a business in order to making a decision. To be a successful business people, it is essential to have a good structure of internal company. This week we have done the power point in terms of organizational design and structure.

First of all, we have four people each group to do the power point. Thus, we have chosen the company is called ‘’China National Offshore Oil Corp (CNOOC)’’. This company is the largest producer of offshore crude and natural gas in China. Therefore, we share out the work and cooperate together. I found some information of this company’s structure. And then we submitted onto the Internet while we finished.

Secondly, we have had a lecture for business management. This lecture talked about why structure is so important. Organizational structure is significantly important for decision making such as communication with the labor. It will eventually due to cost change. Most companies either have a tall or flat organizational structure. We can also call span of control and chain of command. In order to gain more profit, it needs to have a good communication to make sure the labor understand what the manager say. The reason is that the top management needs to transfer several managers while the labor receive the message. This means it likely to have mistake. Therefore, it will affect the cost of production, as the top manager may not satisfy what the labor do. On the other hand, a flat organizational structure has a benefit of communication, because it would directly receive the message from the top manager instead of middle manager or so on.

Organization can be centralization or decentralization. Centralized organizational structure can be defined as is concentrated decision-making authority at the top, and only a few people are responsible for creating the organization's policies. These few people are the once that make all the crucial decision. Centralized organizations also tend to have greater efficiency and profitability since they may reduce regulatory costs. They like knowing where they stand in the company. In a decentralized organization, it can be defined as delegate authority to all levels of management and organization. The benefit to a decentralized organizational structure is more flexible.

To sum up, a successful business people at least to have a great management and organization structure. Therefore, it can be achieve the minimum spending and the infinite profit.

Week 1 Introduction of organisation

From the beginning of the week, we have learnt the introduction of organization. The organization can be defined as management of a business that needs to be able to make decisions and resolve issues in order to be both effective and beneficial. This is not only based on good teamwork, but also need to have potential businessmen who are willing to bear the risks.

Organizations work with one another which have its advantages and disadvantages, such as sharing ideas and risk factors, leading to a higher chance of gaining profit. However, there may be more argument between partners during the project.

 In order to be successful, a businessman needs to have a favorable interpersonal relationship. For example, a friend of mine is very intelligent but has extremely bad attitude. Therefore nobody wants to cooperate with him.

It is necessary for organization to have achievable objectives, for example expanding the business. This can be achieved by selling more goods and services to increase profit.

Moreover, excellent communication between manager and employee is essential for a well structured organization. This can be indicated by two different types of structure shown below.

Here are two organizations: Long chain of command and wide span of control. Each company establishes its own hierarchy or structure, so it’s easier to receive messages from the manager. Thus, it will lead to fewer mistakes.

Manager ought to consider the individual’s characteristic in its workforce, as some people have regional and culture difference leading to business barriers. On the other hand, they also need to analyse their individual degree or major to understand their character. Otherwise, it is not only losing the profit but also damage the reputation of the company.

In terms of Business Forms, there are several types of business such as Sole Trader, Partnerships, Private Limited Company, Public Limited Company, Social Enterprise and Charity. A type of liability that does not exceed the amount invested in a partnership or limited liability company and so on.  But unlimited liability is not included a maximum amount and responsibility to bear the amount of investment each owner has personally made such as sole trader. 

To sum up, I have learnt a lot of knowledge in terms of organization and business forms. It tells us the importance of an organization and the consequence of our decision.