UNDERSTANDING ORGANISATIONS
Overview of key terms Course Reader IOB1-4 | 2022-2023 | v1.1 November 2022
Technical interest
key term definition
cost price the costs of your product
investments investments needed to put the process into operation, represent 10-20% of the MC
you’d only know the investment level when you know more about details
labour the physical work that goes into the product
machine and assembly machine en in elkaar zetten
manufacturing costs the cost of making one additional unit of a product
in its most basic form, the equation reads something like this:
MC = Cmc + Cma + Clab + Cqp + Cinv
materials and components is the cost of all machine and assembly operations, again per product – excluding
component cost costs of components, if you order more you’ll end up paying less.
It also matters where you order (country)
material cost cost of materials, price per kilo will vary with the amount that you buy
production volume (series size) or alter- natively, series size, and is expressed either as units/year (or some other
simply as the total number of units, as we did just now in our example. It is usually
the symbol N, from “number”.
scale als we in schaal groter of kleiner gaan (bv kosten worden lager als de schaal grote
machine cost costs for machines, commonly expressed as a cost in €/hour. The bigger a machin
expensive. “Size” refers to the maximum clamping force that the machine can prov
find the clamping force required for the product)
labour costs same two dependencies go for labour cost =
- running an injection moulding machines requires human oversight
- assembly and configuration are hard to automate so very influential on cos
labour costs are independent of N, because it is the same kind of work regardless
products. However, this is not quite correct since the scale does normally come on
location where the product is made (wages are much lower abroad)
quality control to ascertain that it works as intended
packaging suitable box + someone who does the putting
sales all costs which are needed to manufacture and publish and market (everything!!) y
return on investment rendement
revenue money you get as a result of the direct sale of goods and/or services
authority system those in the subordinate role see the issuing of directives by those in the superordi
legitimate
charismatic a form of exercising authority based on the personal qualities of the leader (how th
different from ordinary people)
rational-legal a form of exercising authority based on bureaucracy, to achieve goals (Weber: dom
three pure types three types of organizational types of leaders
traditional a form of exercising authority based on tradition (mostly based on someone who h
role rather than expertise)
goals rational-legal system designed to achieve specific goals
performance rational-legal system designed with a certain function to perform and every part co
attainment (verwerf) of max. performance
bureaucracy well-designed machine with a certain function to perfor and every part of the mach
the attainment of the max. performance
efficiency all possible factors that make a process efficient (Weber: bureaucracy is most effic
its organizational form)
ends results
means ‘middelen’ used
rationality of the organization organization that is able to calculate the consequences of its actions (because of th
depersonalization)
Scientific management (Ford) production can be increased by studying the process whereafter it can me improve
corporate strategy entails conceptual framework and a tool box to top managers, scholars, consultant
strategic management (refreshed name of strategic planning) appears as an enlarged conceptual and tec
which deals with deliberately strategy implementation
strategic planning the framework is a systemic approach to prepare organizations to be more proactiv
anticipate events and to avoid bad surprises
long-term performances and deliberate strategies are necessary to achieve long-term performances and targets
targets
matrix products × markets the concepts of synergy and competencies profile
Overview of key terms Course Reader IOB1-4 | 2022-2023 | v1.1 November 2022
Technical interest
key term definition
cost price the costs of your product
investments investments needed to put the process into operation, represent 10-20% of the MC
you’d only know the investment level when you know more about details
labour the physical work that goes into the product
machine and assembly machine en in elkaar zetten
manufacturing costs the cost of making one additional unit of a product
in its most basic form, the equation reads something like this:
MC = Cmc + Cma + Clab + Cqp + Cinv
materials and components is the cost of all machine and assembly operations, again per product – excluding
component cost costs of components, if you order more you’ll end up paying less.
It also matters where you order (country)
material cost cost of materials, price per kilo will vary with the amount that you buy
production volume (series size) or alter- natively, series size, and is expressed either as units/year (or some other
simply as the total number of units, as we did just now in our example. It is usually
the symbol N, from “number”.
scale als we in schaal groter of kleiner gaan (bv kosten worden lager als de schaal grote
machine cost costs for machines, commonly expressed as a cost in €/hour. The bigger a machin
expensive. “Size” refers to the maximum clamping force that the machine can prov
find the clamping force required for the product)
labour costs same two dependencies go for labour cost =
- running an injection moulding machines requires human oversight
- assembly and configuration are hard to automate so very influential on cos
labour costs are independent of N, because it is the same kind of work regardless
products. However, this is not quite correct since the scale does normally come on
location where the product is made (wages are much lower abroad)
quality control to ascertain that it works as intended
packaging suitable box + someone who does the putting
sales all costs which are needed to manufacture and publish and market (everything!!) y
return on investment rendement
revenue money you get as a result of the direct sale of goods and/or services
authority system those in the subordinate role see the issuing of directives by those in the superordi
legitimate
charismatic a form of exercising authority based on the personal qualities of the leader (how th
different from ordinary people)
rational-legal a form of exercising authority based on bureaucracy, to achieve goals (Weber: dom
three pure types three types of organizational types of leaders
traditional a form of exercising authority based on tradition (mostly based on someone who h
role rather than expertise)
goals rational-legal system designed to achieve specific goals
performance rational-legal system designed with a certain function to perform and every part co
attainment (verwerf) of max. performance
bureaucracy well-designed machine with a certain function to perfor and every part of the mach
the attainment of the max. performance
efficiency all possible factors that make a process efficient (Weber: bureaucracy is most effic
its organizational form)
ends results
means ‘middelen’ used
rationality of the organization organization that is able to calculate the consequences of its actions (because of th
depersonalization)
Scientific management (Ford) production can be increased by studying the process whereafter it can me improve
corporate strategy entails conceptual framework and a tool box to top managers, scholars, consultant
strategic management (refreshed name of strategic planning) appears as an enlarged conceptual and tec
which deals with deliberately strategy implementation
strategic planning the framework is a systemic approach to prepare organizations to be more proactiv
anticipate events and to avoid bad surprises
long-term performances and deliberate strategies are necessary to achieve long-term performances and targets
targets
matrix products × markets the concepts of synergy and competencies profile
