Question

Explain the functional sub system of organisational

Answer 1

Answer:

Various Elements that Constitute the Organizational Systems!

Production systems are one of the subsystems of larger organisational system, which has many other subsystems like marketing, finance, personal etc. Each organisational subsystems are independent at the same time they are interdependent. They are independent in the sense that each functional subsystem has its own objectives and goals and at the same time they are functionally related with the other subsystems of the organisation.

The goals and objectives of the subsystems should be supportive and they should help to achieve the goals of the organisation. The conflicts or mismatch between the goals of subsystems will work contrary towards the achievement of organisational goals and results in sub-optimisation of the goals. The typical organisational system, which contains the various subsystems, is shown in fig (1.16).



The organisational system shown has an objective and various elements that constitute the organisational systems are finance, production, marketing and personal subsystem, are:

1. Production:

To manufacture the products of right quality and right quality at predetermined cost at pre-established time. Production department aims to offer the customers which products and or services that satisfy the needs of the customer at the affordable cost, and at the same time enhancing the production efficiency (i.e. productivity).

2. Marketing:

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To create the demand for the company’s products and/or services and satisfy the needs of the customer through company’s products through various activities like market research, marketing planning, sales administration and advertising.

3. Finance:

To plan and allocate the finance to various activities of the organisation and to meet the long term and short term financial requirements of the enterprise. The activities include financial planning, budgets, general and cost accounting etc.

4. Personnel:

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The objective of the personnel function is to match the jobs and skills of the personnel and create a harmonious climate where in each and every individual in the organisation contributes positively towards the achievement of organizational objectives. The functions include – Recruitment, placement, compensation, promotion and training.