Management of Organizations

‭2.‬‭MANAGEMENT OF ORGANIZATIONS‬ ‭ he concept of management was introduced in the first chapter. In order to set‬ T ‭up an organization's administrative information management system,‬ ‭knowledge is required of how an organization can be managed. This chapter‬ ‭therefore examines the subject of governance in more detail. The following‬ ‭visions in the field of organizational management are discussed:‬ ‭-‬ ‭Rational control;‬ -‭ ‬ ‭Political governance;‬ ‭-‬ ‭Non-rational control.‬ ‭The way in which administrative information is handled depends on the‬ ‭organizational vision used.‬ ‭Introduction‬ ‭ ccording to Bossert's definition, control is “‬‭the‬‭targeted influence of (parts of)‬ A ‭an organization through management processes, often leading to a specific form‬ ‭of management in an organization, supported by a control system. The targeted‬ ‭influence is aimed at realizing the organization's right to exist, which is usually‬ ‭based on economic principles‬‭‟. Naturally, other principles‬‭such as psychological‬ ‭and social also play a role here.‬ ‭ n organization sets up its management using – often implicit – operating systems.‬ A ‭An operating system is “‬‭the coherent set of organizational‬‭measures for the‬ ‭management of the organization‬‭‟. A distinction is‬‭made according to the structure‬ ‭of the organization and method of managing the processes to be managed. The‬ ‭remainder of this chapter will first discuss the structural aspect of the operating‬ ‭system. Then the different ways of thinking about the management process within‬ ‭the different ways of thinking about organizations are discussed.‬ ‭ tructure‬ S ‭The design of the organization therefore results, from the perspective of the‬ ‭management officials, in a number of people or activities that require direct‬ ‭management ('span of control') and a number of organizational levels through which the‬ ‭transfer of will must take place, e.g inden („depth of control‟). A right balance between‬ ‭the available scope of the manager ('depth of control' and 'span of control') and from a‬ ‭coordination perspective the necessary span determines the effectiveness of the control‬ ‭system. Means by which (impending) exceedance can be prevented or overcome‬ ‭include:‬ ‭-‬ ‭Redistribution of tasks;‬ -‭ ‬ ‭-‬ ‭-‬ ‭-‬ ‭Engagement of staff and emergency services or personal staff;‬ ‭Delegation;‬ I‭nvolving sub-leaders (in contrast to previous means, hierarchy-strengthening);‬ ‭Management information provision, whether or not supported by information technology.‬ ‭ nthony and Govindarajan distinguish the following five types of organizational units in the‬ A ‭context of the areas of responsibility:‬ ‭-‬ ‭The standardized cost center‬‭: a standardized cost‬‭c enter can exist when the‬ ‭required amount of input has a known relationship to the (defined and‬ ‭measurable) output. The efficiency of the conversion process is the most‬ i‭mportant assessment criterion of the control process.‬ ‭-‬ ‭The revenue center‬‭: the revenue center itself undertakes‬‭market-oriented‬ ‭activities and is responsible for the sales and distribution of products and/or‬ ‭services. If the revenue center has the ability to determine sales prices in the‬ ‭market itself, then turnover is the most important assessment criterion of the‬ ‭management process. If this is not the case, physical volumes are chosen as a‬ ‭benchmark (sales).‬ ‭-‬ T ‭ he independent cost center‬‭: these are organizational‬‭units that generate products‬ ‭and/or services where there is no clear relationship between the inputs and the outputs‬ ‭(overhead). Assessing the management process is generally measured against the‬ ‭required input and expert output assessment.‬ ‭-‬ ‭The‬ ‭results‬ ‭center‬‭:‬ ‭the‬ ‭r esults‬ ‭c enter‬ ‭is‬ ‭r esponsible‬ ‭for‬ ‭both‬ ‭the‬ ‭c onversion‬ ‭ rocess‬‭and‬‭market-oriented‬‭activities.‬‭The‬‭operating‬‭result‬‭(gross‬‭profit)‬‭is‬‭the‬ p ‭assessment criterion here.‬ ‭-‬ ‭The investment center‬‭: in addition to the results‬‭center, management is‬ ‭responsible for the production resources. The return on these resources is the‬ ‭benchmark to assess management.‬ ‭ epending on the type of organizational unit, performance is measured in different‬ D ‭ways. It is therefore inevitable that the associated administrative information for these‬ ‭centers will look different.‬