ENTERPRISE MANAGEMENT

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1 POZNAN UNIVERSITY OF TECHNOLOGY ENTERPRISE MANAGEMENT Part 1 Edmund Pawlowski Ph.D. Poznan University of Technology Faculty of Management Engineering Edmund.Pawlowski@put.poznan.pl Poznań

2 Enterprise Management part 1 1. Model of the Corporation Mgmt. System 2. Typical organizational structures of a large enterprise Organizational Unit Taxonomy 2.2. Services and divisions. Functional and Hierarchical Services as a framework of concentration and dispersal of functions within the organizational structure Technical services. Functions and their structural variants. Technical Division. 2.4 Trade services. Functions and their structural variants. Trade Division Finance services. Functions and their structural variants. Typical finance division structures for European and American Models Others services. General Director Division. 3. Organizational structure of SME s. The framework of enterprise downsizing and combining functions and services.

3 Enterprise Management 4. Organizational structures of a very large corporation. International and global corporations Dependence on corporation s size and its organizational structure. Divisional structures. Legal autonomy of division and holding structures Type of holdings and the degree of internal cohesion (operational, strategic and financial holdings) Evolution of the international corporations Organizational structure models of the international corporations. 5. Virtual business as a common feature of small and large enterprises The essence and characteristic of the net structures and external virtual organizations The essence and characteristic of the internal virtual organizations Virtual spiral 6. Functions of Director s Board, Supervisory Council, and General Assemble

4 Enterprise Management. 7. Process Management 7.1. Management Levels 7.2. Strategic Management. Model of strategy planning on three levels: Corporation, SBU, Functional. New model of implementing strategy Balanced Scorecard Model of Tactical and Operational Management. (model of yearly business planning, monthly and daily planning, budgeting, monitoring, monthly and yearly reports and finance statements, business analysis) 8. Corporation Management System Design Methodology of an Enterprise Management System Design 8.2. Methodology of Management System Design for the Holding Structures.

5 Corporation Management System GENERAL ENVIRONMENT OPERATING ENVIRONMENT CORPORATION Management Subsystem Functions / Procesess. Organizational Structure. Domestic International External Conditions Internal Constrains Strategic Management Tactical Management Technology of Information Processes Operational Management Executive subsystem (e.g. production system) Social subsystem 5

6 MANAGEMENT LEVELS of the CORPORATION Level Range Time STRATEGIC Corporation and Subsystems 5 20 years TACTICAL Corporation and Subsystems 1 3 years OPERATIONAL Organizational Units and operations 1 month, week, day, hour 6

7 CORPORATE STRATEGIC PLANNING Level Problems and decisions Strategy Corporation - Mission statement, Vision, - New business, products, markets and what to withdraw from, - Business to take over, to sell - Strategic objectives, - Allocation of resources among SBU 1. Growth 1.1. Independent 1.2. Acquisitions, merges, alliances Vertically - forward - back Horizontally Conglomeration 2. Stabilization 3. Decrease 3.1. Redeployment 3.2. Reduction 3.3. Liquidation SBU Strategic advantage 1. Differentiation 2. Overall cost leadership Functional Functional programmes of the strategy execution 2. Focus on a niche 1. Marketing strategy 2. R & D strategy 3. Technical & production strategy 4. Finance strategy 5. Organizational strategy 7

8 2. A large industrial enterprise. Typical organizational structure Elaborated by : Edmund Pawlowski, Institute of Management Engineering, PUT, Poland

9 2.1. Organizational Unit Taxonomy. Administration Units AU 0 - post, team AU I - section (Sec. Manager) AU - II Department (Dpt. Manager / Sec. Manager) Operational Units OU 0 - Workstation OU I - Production Line, Gang, Team (Manager, Foreman ) OU II - Division (Manager, Officer ) OU III - Division

10 2.2. Services and divisions. Functional and Hierarchical Services as a framework of concentration and dispersal of functions within the organizational structure. Functional service All organizational units involved in execution of particular function e.g. Production Service, Finance Service, HR Service. Functional links among organizational units represent the way of labor division in execution of the function. Hierarchical service The functional links can be covered (partly or fully) with hierarchical links and create hierarchical service Typical example: Production Service Division All organizational units supervised by a Director e.g. Trade Division, Technical Division

11 Typical Functional Subsystems of an Enterprise 00 - Creating and meeting demand for # Strategic Management - 00.# Organisational Development - 00.# Human Resources Development - 00.# Economic Control 01. Marketing and Sales 04. Material Purchasing 02. Product and Process Development 05. Plant & Equipment Developing and Maintenance 03. Production and Service 06. Provision of Tools 07. Quality Control 08. Storage of Resources 09. Transportation of Resources 10. Administration Service

12 TYPICAL FUNCTIONAL DIVISIONS Technical division Research & development division Engineering division Production division Technical service division Trade division Marketing division Sales division Logistic division Purchasing division Transport division Warehouses Finance division (Finance & Administration or Administration div.) General Director division Human Resources division Quality Assurance division Organisational Development & Information systems div. 12

13 Technical Division DT TD TT TN TB TM V-ce Director of Development and Technical Service Product Development Dept Process Development Dept () Tools Dept. Property (Plant and Equipment) Development Dept. Maintenance Dept. TE TS TP Environmental Dept. Occupational Safety Sec. Production Dept. 13

14 Trade Division DM Director of Trade MM MS MP MT Marketing Dept. Sales Dept. Purchasing Dept. Transport Dept. MPm MSm Purchasing Warehouse Sales Warehouse 14

15 Finance Division DF Director of Finance FC Controlling Dept. FB FF FA Bookkeeping Dept. Finance Dept. Administration Service 15

16 Finance Division (The USA typical case) PF V-ce President Finance Treasurer Controller ( Main Accountant) Credit Manager Inventory Manager Director of Capital Budgeting Cost Accounting Financial Accounting Tax Dept. Credit Mgmt. Capital working Mgmt. -Settle up: with contractors and employees -Cash & bank operations -Receivables Mgmt -Payables Mgmt. Capital Investment Mgmt. Bussiness Planning: -Plant & equipment investment -other investment projects Cost accounting Bookkeeping of resources and operations Tax preparation & Tax planning

17 General Director Division DG GENERAL DIRECTOR GS Secretary GL GH GO GI GQ GQc Legal Office Human Resources Dpt. Organisational Development Dpt. Management Information System Dpt. Quality Assurance Manager Quality Control Dpt. 17