ITEE ITEE-1 | Page 23

Reference Business objective A “business objective” is a medium- or long-term goal that is set in order to fulfill the corporate philosophy or corporate objective. Reference Management resources for business management Management resources within the context of business management refer to people (human resources), materials (assets), money (finances) and information (information management). 3 Business management “Business management” involves coordinating and integrating management resources (people, materials, money, and information) in order to fulfill the objectives of the corporation. It is important to maximize the use of resources that are available to the corporation and produce results. To achieve this, corporations set business objectives and manage them using a “PDCA (Plan, Do, Check, Act)” cycle. “PDCA” is a fundamental approach for business management that involves the execution of a four-step cycle of “Plan, Do, Check, Act” to continuously improve product quality and work. Repeated execution of PDCA refines and enhances business management. Plan Determine what to improve and how. Act Do Implement measures to improve results from “Check.” Execute activities according to “Plan.” Check Evaluate results from “Do.” 4 Reference Formal organization A “formal organization” is a collective entity that is clearly defined by an organizational purpose or company rules. Formal organizations include companies and institutions. Reference Informal organization An “informal organization” is a collective entity that is not clearly defined by organizational rules or regulations, although it has an overall purpose. 17 Organizational structure of a corporation A “corporation” is an organizational entity that engages in economic activities such as production, sales, and provision of services typically for the purpose of making profit. In the narrow sense, it refers to a private corporation such as a “stock company” or “limited liability company.” In the wider sense, it also includes public corporations in which the government has a stake. An “organization” is a collective entity that has been assembled and integrated into a system to achieve a common purpose. (1)Structure of a corporation A corporation is an organization that is structured according to task in order to conduct operations efficiently. There are various forms of organizations including functional organizations, divisional system organizations, matrix organizations, and project organizations.