Month: March 2014

Role of Project Coordinator

The project coordinator is a role which project manager has to play in weak matrix or functional organization. In both type of organization, the functional manager has more power therefore, project manager plays limited role of project expeditor or project coordinator. The role of project coordinator is similar to project expeditor the only difference is that he or she has limited power to make decisions and also reports to higher...

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Role of Project Expeditor

The project expeditor is a role which project manager has to play in weak matrix or functional organization. In both type of organization, the functional manager has more power therefore, project manager plays limited role of project expeditor or project coordinator. The project expeditor acts as a communication coordinator who could the internal and external information with the team via different communication channels such as telephonic calls, emails, meetings and etc. The major constraint for project expeditor that he or she couldn’t take or enforce...

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What is Projectized Organizational Structure ?

Projectized organizational structure offers flexibility in the arrangements of resources.In projectized organization, the whole company is organized by projects rather than functional teams or departments. Since this structure promotes the projects work over departmental work thus, project manager has the ownership and authority. The project team member work under the project manager and dedicated for only project related activities. Team members working in projectized environment have “ no home “ which means on completion of one project they will be realized and assigned to another project. The project manager and team members for new project could be the same or different. Advantages of Projectized Organizational Structure • Team members are more focused on project work. • Team members become flexible as most of the time they will be working with different project manager and team members. • Less time consumed in communication as information stays within the project. • Team members reports to project manager. • Project manager has complete ownership and authority over the project and its resources. • The turn around time of resolving issues take less time. • Team members are loyal to project. • Efficient team organization. Disadvantages of Projectized Organizational Structure • Project manager should have domain related knowledge (e.g. Technical Knowledge). • Team members are jack of all and kind of one. • Team members have “no home” • Duplication of roles and...

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What is Functional Organizational Structure?

This is the classical type of organization structure that has been commonly practiced and followed by companies and corporation around the globe. The major reason to implement this structure to combine expertise in the form of functional departments which include but not limit to human resource, research & development, marketing, management, supply chain and others. As the name suggests, in this type of organization power lies with department head/team head. Therefore, project manager has low involvement and authority. The project information remains within the department and if the services of other functional areas are need in that case information flow from one department to another via departmental heads. Team members performs project work along with the departmental work that means high utilization of resources. Advantages of Functional Organization Structure • Team members report to one boss. • Team members have permanent home. • Organize by expertise. • Better utilization of resources. • Team members perform departmental and project work. • Team members are trained according to their domain. Disadvantages of Functional Organization Structure • Team members doesn’t report to project manager. • Team members learning is limited to their domain. • The relationship between departments are very complex. • The project manager has limited or no authority. • Most of the time information remains within the specific department. • Legacy structure. • Low flexibility in process,procedure and policies for...

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Matrix Organization Structure

The matrix organization is a type of arrangement in which the authority power is share among project and functional manager. This type of organization overcome the disadvantage of functional organization by balancing the decision making power between functional and project manager. Types of Matrix Organization Strong Matrix In this type of organization major authority lies with project manager rather than functional manager. It means, project resources will be more focused towards project activities rather than operational activities. Weak Matrix In this type of organization major authority lies with functional manager rather than project manager. Balanced Matrix In weak matrix, power is shared between project manager and functional manager. However, in any of the above case resources allocated on projects are responsible for reporting to two bosses; project manager and functional...

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Customer Centered Company

We can’t deny the fact that we are living in the era of Customers. Many marketer had claimed previously that’s it’s the competitive advantage which has engaged a company to win over its customers. However, within recent time the Amazon, Cisco, sales force.com have come forward to prove this wrong and introduced the concept of customer centered company. In fact, Amazon.com has taken the lead by embarking upon the mission to be the world’s most well known customer centric company, where customers are allowed to buy anything they want online at the lowest prices. A customer centered company is involved in the process of developing a quality product according to the needs/wants of the customers and responds promptly to their complaints and queries. These companies try their best to implement such strategies that addresses the customer’s needs and adapt their functioning and strategies on the current consumers buying patterns. The customer centered companies are able to identify opportunities and introduces new trends in the market in order to keep up the sustainable brand image and profitability. In today’s world, customers can easily acquire and share relevant information about the good and bad encounters with companies. This provides a good incentive for companies to work hard to make customers happy, before and after doing the purchase. Nowadays marketers and all those individuals within the workforce have direct visibility into customers,...

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Malthusian and Food Crisis Theory

A shot summary of Malthus Food Crisis: Thomas Malthus (1766-1834) published An essay on the Principle of Population which was considered to be the most influential book of its era. Where Matlhus has its central point over the law of diminishing Returns. A law that States that Use of Additional Inputs while other being fixed will eventually decrease the output. Informally speaking what Malthus believed was that the worlds limited amount of land would not be enough to supply food as the population grows in future. He showed that both the Marginal Product and the Average Product will Fall and as a result there will be starvation. What later happened was that there could have been starvation in future if only there were no technological improvement. People would have been using Subsistence living as they had before. But Malthus Statement could NOT be considered true because of factors like : High Yeilding seeds Disease resistant strains of seeds Better Fertilizers Harvesting Equipment And other technological improvement brought about more profitability and opportunities in the agriculture growth. Further more, Green revolution brought great influence over the developing countries to overcome there low Agriculture production problems. Evidentially the world bank data shows a clear increase in productivity yet hunger remains a severe problem such as Shel Region of Africa, because of low productivity of labor that consequently leads to lower total...

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SWOT Analysis of Hyundai Motors

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of Hyundai Motors Company. It was founded by Chung Ju-yung in December,1967. It has been operating in automotive industry and offering Automobiles, Cars, commercial and engines products to its worldwide customers. The financial statement of Hyundai motors shows strong revenue and profit in 2013 and also showing growth in 2014 as well. Background of Hyundai Motors (Tabular) Company Name Hyundai Motors Company. Industry Automotive Industry Founded on December 1967 Founded By Chung Ju-yung Headquartered Seoul, South Korea. Area Served Worldwide Products Automobiles, Cars, commercial and engines. Revenue $ 75.03 Billion (2013) Profit Margin $ 7.6 billion (2013) Workforce 58,000 approx. (2013) Competitors · Bayerische Motoren Werke AG · Chrysler Group LLC, Daimler AG · Ford Motor Company · General Motors Company · Honda Motor Company, · Nissan Motor · Tata Motors, Ltd. · Toyota Motor Corporation · Volkswagen AG and many other automotive companies. Background of Hyundai Motors (Image) Hyundai Logo SWOT Matrix (Tabular) STRENGTHS WEAKNESSES · Strong brand · Growing brand · Largest manufacturing facilities · Serving worldwide · Strong Revenues · Strong profits · Research and development · Product recalls · Shortage of spare parts · Weak sales in Korea · Production losses · Low sales in Japan · Limited car designs OPPORTUNITIES THREATS · Develop fuel efficient cars · Hybrid cars · Provide training to dealers · Boosting fuel...

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Production Function

A production function indicates the highest output Y that a firm can produce for specific combination of input. We have many factors of production used as inputs but for simplicity we will focus only on labor and capital as a factor of production. Keeping this assumption we can write the production function as : Y=F(K,L)  This equation shows that the output Y, relates to the quantities of inputs of Capital K, and Labor L. Additionally it is important to know that Inputs and Outputs are both FLOWS. The Short Run Versus the Long Run SHORT RUN: It takes time for firms to increase their output. Probably because they would require new plants to build or add extra machinery and some other capital  ! And such activities can easily take a year or more to complete. As a result firm do have constraints for many reasons when thinking about increasing their production. Such a constraint in a factor of production that remains fixed or cannot be changed is considered to be the SHORT RUN period of a firm. That unchangeable factor is called the FIXED INPUT. LONG-RUN: It is a period when a firm is able to change all of its factor of production easily. Or the amount of time needed to make all production inputs variable. Now there is no hard and fast rule for distinguishing the short run...

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Production Decisions of a firm

Now we have demand side of the market and the supply side. From the word supply we do understand very easily that we are going to discuss about the or examine the behavior of Producers. We will see how firms can produce efficiently and how their costs change with the change in their input prices and the level of output. This all is a part of Theory of a firm which describes how a firm makes cost minimizing production decision and how the firm’s resulting cost varies with its output. Consider some of the issues or problems faced by the company. For example how much labor should be used by an automobile company? If it wants to increase production , should it hire more labor, construct new plants or both? does it make sense to produce more different product than the existing one ? how these costs effects the level of production or output ? etc. Let us break down the production decision of a firm into three steps : Production Technology Consumer constraints Input Choices Production Technology: The requirement of a practical way in describing the how the INPUTS (land, labour, capital) is transformed into Output (cars, tv, computer etc). Just as the buyers reaches to a certain level of satisfaction by buying different combination of goods, the firm can produce a particular level of output by having...

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