Various Components Of An Organization

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Material

Material is the items used to produce a product. It is the initial stage of a product.

It is a broad phenomenon as it caters to the holistic approach. 

The responsibility of an organization is to know the requirement of the material at the different stages.

The material can be put to work for a long period. It is necessary to store the material properly to have that perishability.

Companies invest a hefty amount in the purchase of materials. 

Most of the time materially contributes to the necessity of the different processes. Great ambiance in a restaurant is not a necessity, but its absence can affect the user experience.

Demand for the material makes it a costly affair. Management should handle materials properly to avoid the wastage of stocks and money.

When the company is not aggressively investing in materials, it increases the profits.

Time Measurement

Time measurement is the process of measuring the effective time taken by an employee to do the assigned job in favorable working conditions.

Time measurement defines the quantity requirement of the person by applying various techniques.

Organizations determine a standard by studying the output provided by employees in the given working conditions.

These standards are known as work standards or time standards.

Time standards help the organization identify efficient methods to accomplish a similar amount of work in relatively lesser time.

It helps operations by providing the time required.

It helps the production by reducing idle time.

it helps in providing the standards for evaluation of the employees’ performance

Quality

The quality of a product is a prominent selling juncture for any business. Customers need a quality product that can resolve their problems.

Organizations continuously watch quality control at every step of production.

Quality check is an ongoing process from raw material to the final product.

Quality is a tool that could help relieve the customers’ complaints. Quality check helps the organization to have a critical analysis of their mistakes to rectify them for a seamless consumer experience.

Organizations are more and more choosing this path to understand customer needs. An organization wants a healthy product line on display for the customers.

A quality product in the product line will always increase the market share by attracting more customers.

Sales

Sales are one of the most significant aspects of an organization. It helps the organizations to grab more customers. 

Organizations try to maximize their sales number to earn a greater profit. The process does not stop at the sale of the product feedback, and after-sales service is part of the sales too. Good after-sales service can generate healthy word of mouth, which means more sales.

Shipping

Organizations use transportation for easy movement of their products and tools. 

Transportation decisions are dependent on the mode of transportation and the route of transportation. 

If an organization decides to transport its products through the air, it increases responsiveness and costs. On the other hand, if the organization chooses the land route, their cost decreases and the responsiveness of the transportation.

The organization should also evaluate if they have the infrastructure for transportation or if they need to hire these services.

Transportation plays a significant role for every business, and when an organization is operating in two different places, it becomes a crucial part of the business.

Efficient transportation options help the organization bridge the distance between the two establishments of the same organization.

Ordering

Ordering is one of the most significant elements of an organization as an organization can’t meet the whole raw material need internally. Order of required raw material seems to be the most reliable option in such situations. Sometimes, companies get a better deal by purchasing.

Earlier, it was easy to handle orders just by purchasing. Nowadays, it is difficult with the changing conditions and increases in competition. 

Some of the other factors which influence the decision of purchasing department are:

  • Affirmation of sellers’ accreditation 
  • An examination of the quality of material
  • Assessment of various costs related to the raw material 

Purchasing department forms a network of sellers and shares the information with other departments.

The purchasing department is responsible for ordering raw materials and equipment from a reliable source at the appropriate time.

Communication

An organization’s communication channel is one of the most important aspects to look forward to.

It is responsible for the proper execution of the work it has expertise in.

It works on a different set of skills. It analyzes the best-suited combination for the organization.

Organizations work in ever-changing environments, and it is difficult to align them with some rules.

These are widely accepted general roles.

Organizations implement communication channel activities to have uniformity in the communication within the organization.

Miscommunication can create a situation of chaos in the organization as there is no clarity about the reporting authority among the employees.

Specialists work at definitive time-frames as compared with the HR Manager as well as with more consideration because of their expertise in the particular subject matter to manage these channels.