Divisional Organizational Structure

1.One of the most common organizational structures is the Divisional Organizational Structure. This Organizational Structure navigates the leadership according to the projects and the products that have been delivered by the company to its customers. It depends on the geographical area, market, service groups and products to divide the management work. For example, McDonald’s follows the divisional organizational based on global hierarchy, performance based divisions and function based groups.

This structure evolved based on the factor that the organizations have been gaining preference in specific zones and regions. There are consequent advantages and disadvantages associated with the organizational structure. These can be listed as below:

Advantages: This organizational structure provides solution to decision-making problems when the process of division level is required to move readily to local conditions, especially when a company is spread over a huge geographical area, market or produces a huge range of different products.

Disadvantages: The only disadvantage that the division organizational structure possesses is the hugeimplementation cost and also has the capability to induce land disputes that are not necessarily important for the organizations.

2.The Functional Organizational Structure or Bureaucratic Organizational Structure is the most common kind of Organizational Structure. It makes divisions in a company based on the speciality of the employees involved with the tasks in the organization. This follows the most commonly seen organizational structure based on the divisions with different divisions for sales, marketing, customer services and others. The organizational structure employs people based on their following expertise and recruits them according to these divisions from the higher authority to the lower authority accordingly.

This organizational structure had its inception in the 20^th Century, since the primary concern of an emerged organization badly needed a management system. However, this organizational structure has its advantages and its disadvantages. The primary advantage of a functional structure is that every individual is dedicated to a single function according to their zone of expertise. This also reduces the confusions regarding respective job roles. However, it can be found that the structure also has its disadvantages as it demands immediate and strong communication to be followed throughout the organizational structure. 

3.The information system that helps in improving the functions by integrating the enterprise business process is termed as Enterprise Information System or EIS. This can be easily put as the integration of complex organizational information systems putting all levels of it into action.

EIS differs from functional systems in various ways. Firstly, EIS deals with the information and complex system of an organization. On the other hand, the functional system deals with the management requirement of the propagation of organizational services. Therefore, it can be said that the EIS is the information oriented system whereas functional system deals with management of an organization.

Functional Organizational Structure

The importance of EIS in an organization deals with the orientation of contexts. There is no way that the perfect importance of the EIS system can be calculated through surveys and quantitative analysis. However, it can be said that the EIS system provides maximum integration of complex information system and makes it simplified.

4.The basic difference between functional business system and process view business system is that the former is mostly based on the organizational orientation depending on the functional lines of marketing, sales and production. Whereas, the latter focuses on the business processes, such as the strategic planning that an organization has adopted depending upon the organizational structure and the current situation the organization is facing. Although, both of these processes help in optimizing the activities of an organization there resides a chief difference between them. This is that optimizing one of the functional units may lead to the destruction of another functional unit, however, optimizing a business process completely works in favour of providing support to the entire organization.

Process view system in an organization is extremely important given the latest business environment. This is because, the world of business and technology is evolving to advancements in the contemporary times and business nowadays is utilizing different strategies to implement the ideas of latest technologies into business. This is the era when process view is mostly needed for implementation in business process to map if the implemented business strategy would be feasible or not. Based on this technique, a business has the potential to thrive or perish altogether.

5.In the perspective of the procurement process of a business, three-way matching means a procedure that processes vendor invoice. This invoice justifies the fact that the payment transaction between a vendor and the organization is accurate and complete. The three-way matching process highlights if any inconsistencies are found in the three most important document of the procurement process, that is, the order receipts or packing slips, the purchase orders, and the invoices. This process is mainly used in business procurement to make sure an organization is not overspending or paying for any item that has not been recorded as a purchase as per the organization. 

The completion of the match is done by comparing the quantities, terms, price per unit and other properties appearing on the invoice of a vendor of the organization to the purchase order information and the quantities that have been actually received by the organization. When the vendor’s invoice undergoes proper validation by the completion of the three-way match, only then it is processed further for the payment.

Enterprise Information System

6.The difference between a Bill of Material or BOM and Product routing is that the former is a unified list regarding the structure of a product that includes raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the exact quantities that are needed for manufacturing the end product as the service, however, Product Routing is a process for a manufactured item that has information that indicates the location of the product, times including the Setup of processes, Cycle of manufacturing, Queueing of items and Moving of the end products that it takes to build the item at each stage of the manufacturing process.

7.The manual or paper-based process has several issues associated along it and these problem shall be enlisted below:

Lack of storage:Any kind of paperwork takes up a huge amount of space. In any kind of business process, the inflow of data every following day increases in an exponential manner and handling these in limited amount of paper is impossible. The more information is stored, the more paperwork will follow.

Prone to damage: There is no guarantee of a natural disaster, be it rain, storm or fire. Paper is easily damaged by these kinds of interventions or extreme weather events. It may also be possible that an entire onsite data is completely erased by any natural disaster. It is also prone to regular wear and tear. It may also be possible that a document in a workplace be spoiled with the spilling of drinkables over it.

Cost of Supply: This is quite natural that paper-based management process will bring about these kinds of trouble. The more piles of paperwork accumulates within a business process, it would require more and more supply costs. More of these amenities would bring about use of different sets of printers, office supplies, stationeries and others.

Bad Environment Credentials: It is not to be forgotten than too much use of paper affects the environment in a harmful manner. Paper-based system would thus induce too much use of paper that is actually harmful to the environment and therefore would require a much more environment-friendly system. 

Problems in editing: Making required changes in hard copies of paper-based documents is a lot of task as it will firstly need to be considered that the initial paper needs to photocopied as an evidence as the edits made on a paper is permanent and would completely destroy the credentials mentioned in the paper before.

Made to Order vs. Made to Stock

Difficulty in collaborations: Collaborations on paper-based documents are absolutely impossible since for this all the concerned people must have a copy of the papers required for the collaborations and any modifications implemented on the paper documents would be nearly impossible to comply with on a manual basis.

Enterprise system, on the other hand, provides a wholesome support in managing all of the required systems of a business process in a single database as a software system, thus eradicating all the troubles bore by paper-based business process technique.

8.Made to Order or MTO is a business strategy that gives the allowance to consumer to typically purchase a product customized as per the specifications. On the other hand, there has been a traditional approach in business processes that allows the manufacturing of product to keep in stock even without being ordered and only comes out of the inventory when a customer shows interest in buying them, which is termed as the Made to Stock or MTS.

The primary advantage of the MTO business process is that no excess raw materials are wasted while product manufacturing. However, the drawback in this process is due to the prolonged time taken for a single product to be manufactured.

The main advantage of the MTS process is that it produces bulk amount of products in a single unit time but also has a drawback of falling prey to no demand of product. For this drawback, it may even be possible that the products in the inventory may not be sold to customers altogether, therefore, wasting the products and production costs.

9.Globalization is the process where international integration occurs as a result of cultural aspects,continuous interchange of ideas, world views,products and others. The process of globalization has been caused as a result of the advancement in infrastructure sector,transport sector, and telecommunication sector. Ever since the invention of the internet, it has directed to the massive international integration, which has helped in promoting trade and various political interests. The development of global financial systems such as PayPal, Bitcoin, Visa and others have accelerated economic integration among several countries in the world. The sustained enlargement in mobile telephony has also made convenience available in the globalization process as they have allowed global routing of voice and data. 

10.It can be said that a product has several views. This would indicate the fact that from the viewpoint of a product, while an order is placed, data for that product will be transferred to the procurement process. Further in the procurement process, the system would verify the availability of product in master data and the production process as well to verify from the same source. This is mostly done to check with the vendor of the product. Finally, atthe fulfilment process the system will verify if the product belongs to the same source of the master data. Therefore, by saying that a product has several views, it could be put forwards that the product history has been viewed severally before making a purchase.

Globalization

11.Transactional data in an organization is the element supporting the operations in an organization that in still going on. These are generally the automation systems that the business processes automate primarily. For example, these can be the sales order, service orders and order management processes.

On the other hand, Master data in an organization is usually considered to be the element supporting the core business process. Mostly, it is the organizational units used by several functional groups. It is typically stored in diverse data systems across an association. For example, Master data includes the data about employees, products, customers, and other details.

12.There are four general material types in an ERP system. They can be explained in details as follows:

Raw materials (ROH): In general, these are the materials that are acquired from a vendor. However, these are not sold to the customers at the end of the business process.

Semi-finished goods (HALB): They are typically are the products obtained from the raw materials. These are generally used to produce refined goods.

Trading goods (HAWA): These trading goods are purchased from a vendor. However, dissimilar to raw materials, these goods are in the end resold to an end customer. There is no additional processing found of the material before reselling the product.

Finished goods (FERT): The finished good is created from other materials such as raw and semifinished goods by the production process. 

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