As you know, Vietnam has been in transitional period of advancing to socialism. In building the material facilities for the socialism, the economic country has been under many fundamental changes for years.
Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 INTRODUCTION As you know, Vietnam has been in transitional period of advancing to socialism In building the material facilities for the socialism, the economic country has been under many fundamental changes for years The th Communist Party Congress of Vietnam reaffirmed its goal of advancing to socialism; carrying out industrialization and modernization In order to have a reasonable, powerful and effective economic structure, the internal factors (other economic factors, types of enterprises) must prove strong and operate well If the enterprises want to operate effectively, it will be important to set up a dynamic and reasonable management apparatus Beside, it requires us to have a high level of knowledge and understand important role of management in each enterprise Nowadays, with the requirements of the new era: while the commodity economy is facing fierce competitions, the enterprises management needs to be strong and dynamic enough to exist and develop Therefore, it is important for the enterprises to establish a management organizational structure This main task must be done not only by businesses but also by the entire society In addition, there are different characteristics in an organization, in every economy and in every type of business So, building a management organizational structure, which must to be different to suit the nature and the production level of each business, is necessary Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 From researching and studying documents on management organizational structure at Minh Hong Limited Company together with the help from the teachers of the English Department and specially Lecturer Tran Quang Nha, I have decided to choose my graduation theme as: “How to gradually perfect management organizational structure at Minh Hong Limited Company” Apart from the introduction and conclusion, the Graduation Assignment consists of three chapters: Chapter1: Theoretical background of management organizational structure Chapter2: Present situation of management organizational structure at Minh Hong Co., Ltd Chapter3: Solutions suggested to perfecting management organizational structure at Minh Hong Co., Ltd Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Chapter 1: THEORETICAL BACKGROUND OF MANAGEMENT ORGANIZATIONAL STRUCTURE I Concepts What is organization? Organization is a basic function of management and corporate governance activities in particular According to broadest sense, organization is a leading factor in the implementation of any activity, range from three to several social communities This is one of the important tools of leadership and management to transform from the objectives into the reality Work organization are understood and implemented by the following two specific meaning: firstly, organize a process that works (example: business activities) Secondly, organize a system of control apparatus (leadership, management) Here, we only mention the second issue, called: organizational management There are many different definitions of organization, it is difficult to identify the most concise and accurate definition Organization is a structure (an apparatus or apparatus system) which is intentionally constructed of the role and function (to be legalized) In which, its members carry out their assigned parts with the organic association in Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 order to achieve common tasks This is an organization definition which is close to the organizational management concept What is organizational structure? An organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim Organizational structure is an organization’s existence form which denotes the arrangement of parts of the organization and their relationships in that order II Enterprise’s management organizational structure Concepts * What is management? The Oxford Dictionary, it is said that “management is the act of running and controlling a business or similar organization” There is a relatively complete definition as follow: management is manager’s purposeful impact to subject who are managing; by a solutions system to change the subject’s state, to bring system to approach the final goal; to serve for human benefits According to Peter Drucker’s view on management, a well-known American business professor and consultant, he suggested that the work of the manager must be done such as: planning (setting objectives), organizing, integrating (motivating and communicating), measuring, and developing people * Enterprise’s management organizational structure is a combination of parts which constitutes the management apparatus and the relationships between those parts Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Requirements for the Enterprise’s management organizational structure The rationality of a company which is expressed in these following requirements: * Optimality: Must be ensured between the stages and level of management which are setting a reasonable, dynamic relationship and serve business’ benefits * Flexibility: Must be ensured for adaptability to any situation occurring in the system as well as outside the system * Stability: This requirement seems to conflict with the flexibility, but it is important Because, sustainability of organizational structures to ensure effective management and administration in normal situations When arbitrary changes happened many times, it will cause negative consequence * Reliability: All enterprise’s activities of administrating, coordinating and inspecting require accurate and timely information Management organizational structure must ensure reliable information * Economicalness: Management organizational structure for the lowest costs but the highest efficiency during construction and use process Meaning of management organizational structure Management organizational structure is a form of division of labor in the fields of management, concerning the operation process and administration system Management organizational structure not only reflects the production structure, but also positive effects of the development of production Organizational structure allows us to organize and use reasonably the resources It also allows us to determine the primary relationship among Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 specific tasks, responsibilities and powers associated with these individual who are concerning If an organizational structure wants to survive, it must be consistent with business’s economic, technique characteristics, business environment and be flexible to adapt to changes in Enterprise’s production and business process A bulky, less flexible structure will make negative impacts to the entire enterprise’s business results And, it must be replaced by the more comprehensive and flexible apparatus III Types of management organizational structure Along with the development of production that formed many types of management organizational structure, each one has different characteristics, advantages and disadvantages and it is applied in specific, certain conditions Online structure * Basic contents of the online structure are a ladder, which has many stairs In which, Superior controls (determine, command, directly check) juniors and juniors must submit superior’s ideas This is a mandatory controlsubmission relationship * Advantages and disadvantages: - This is a simple and clear structure for the united command This structure’s advantages are clear responsibility, and to maintain discipline and inspection Leaders must take full responsibility for the junior’s activities, so can maintain the one-superior-in-charge regime - It also has some disadvantages When business applies this type of structure, Enterprise’s parts will have the distance and lack coordination It makes difficulty to motivate staff’s creativity and attract professionals Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Functional structure * The growth will require horizontally expanding In which, each level of management must perform management function at each state with more complicated levels So, managers need to have good knowledge, understand the situation and make the right decisions Junior not only takes the leadership of a department function, but also takes the leadership of the business owners and other parts * Advantages and disadvantages: - With relatively complex operation, the functional structure is more effectively than the online structure Director himself doesn’t analyze all issues, monitor every company’s situation But, it belongs to functional department’s tasks (experts and staff who has specialized knowledge of economic, technical, understanding of current institution related to business activities and have experience of situations) - However, functional structure makes management apparatus cumbersomely, bureaucracy prone director and unclear information It makes staff lack a comprehensive vision and coordination in order to accomplish common goals Incorporate online-function structure * Incorporate online-function structure is commonly applied in medium and large business This is the combination of two types of relations: controlsubmission relationship and coordination-collaboration relationship * Advantages and disadvantages: - This type of structure has exploited the advantages of the online structure and the functional structure Before, Company’s director makes a decision on issues (which relate to the company’s mission); he is staffed by the Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 functional department It helps Director to clearly hold the company’s situation Because, all of units in the company are guided directly by the board of directors, the company’s production and business are united - But, this structure has revealed many weaknesses There are many functional parts; they usually have to hold many meetings and it makes everybody to feel tired, stressful, waste of time In addition, it also causes the internal conflicts company because of the inconsistent opinion It doesn’t make staff It makes the department unable to promote innovations and technical improvements and combine different departments Diagram 1: Incorporate online-function structure in a product production enterprise Director Vice Director Function Staff Vice Director Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Department Department Production Team Divisional structure * This is a kind of new structure which was consistent with the development of modern economy It often applies for large corporate combinations to adapt to threats and opportunities outside The company’s management apparatus is structured according to product, market and customer * Advantages: - Allowing the company to have flexible adaptations in the work to meet to the needs of these operating groups outside the central and realize the changes around the area of operation - Creating linkages with depth through specialization in the hierarchy of management systems - Focusing on the success or failure of the products, services, customer or market specific - Creating distinct business units; in which it allows this division to compete with the others * Disadvantages: - Uneven development between branches can cause difficulties in the sharing of common resources - Solving common problems could be coincidence between branches - Slow development of product quality and services compared to competitors Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 - Although there is priority from the strength and resources of the entire company, but it is difficult to deal with the challenge of the whole company - Not creating a common basis in training of high level and management experienced staff - Having disperse tendency easily (excessive flexibility, weakening the unified management effectiveness) Matrix structure * Type of structure is combined by the functional structure and dividing sections by product, market This structure has become increasingly popular in construction projects, aircraft manufacturing or software computer; in which, the developing coordination and diverse professional activities are required to unable resources easily to switch to other projects * Advantages: - Combining the advantages of the functional structure and divisional structure - Emphasizing on technical and market for organizations which are operating in complex environments - Creating management staff that has capability to adapt to the technical field, marketing and personnel * Disadvantages: - Very expensive because of many managements - Each stage under the direction of the two centers Unified concentrated operation’s effect is limited - Powers and responsibilities of managers may overlap Create easily problems and gaps in the department’s efforts, inconsistently Website: http://www.docs.vn Email : lienhe@docs.vn Tel : 0918.775.368 ... of management organizational structure Chapter2: Present situation of management organizational structure at Minh Hong Co., Ltd Chapter3: Solutions suggested to perfecting management organizational. .. order to help them to meet with the increase of consumer price II Real situation of management organizational structure at Minh Hong Co., Ltd Management organizational structure at Minh Hong Co.,... choose my graduation theme as: ? ?How to gradually perfect management organizational structure at Minh Hong Limited Company? ?? Apart from the introduction and conclusion, the Graduation Assignment