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.