FRONT OFFICE OPERATIONS

What is an Organization?
Meaning of an Organization: – An organization is an entity such as a company or an
association that consists of one or more people and has a specific purpose. The word is
derived from the Greek word organ, meaning instrument or instrument, musical instrument
and organ. An organization is a group of people who work together, like a neighbourhood
association, a charity, a union, or a corporation. Organization is also the act of forming or
establishing something (like an organization). Let’s go through the five common types of
organization and reasons why you might consider each of them.

What are the types of organization?

Types of Organization
1. Line Structure Organization
2. Line and Staff Organization,
3. Functional Structure Organization,
4. Matrix Structure Organization
5. Project Structure Organization.

1. Line Structure Organization

Meaning of Line Structure Organization: – Line structure organization is the simplest and
oldest form of organization structure. It is called as a scalar type of military or divisional
or organization. Under this system, authority flows directly and vertically downward from
the top of the managerial hierarchy to different levels of managers and subordinates, and
down to the operative level of workers. It is also known as the chain of command or scalar
principle.
Advantages of Line Structure Organization: –

 Simple to understand and simple to operate;

 Communication is fast and easy;
 Feedback can be acted upon faster;
 Responsibility is fixed and unified at each level and authority and accountability are
clear-cut, hence each individual knows to whom he is responsible and who is or in
truth responsible to him;
 Since it is especially useful when the company is small in size, it provides for greater
control and discipline in the organization.
 It is a stable form of organization.

Disadvantages of Line Structure Organization: –

 It is a rigid and inflexible form of organization;

 Line authority has a tendency to become dictatorial;
 It overloads the executive with suppressive activities so that long-range planning and
policy making are often neglected;
 A line organization can suffer from a lack of specialization. This is because each
department manager is concerned only with the activities of his own department.
 Different departments may be more interested in their interests rather than overall
organizational interests and welfare;
 This is likely to encourage nepotism;
 It might stop progress and prevent the unit to work effectively.
 It does not provide any means by which a good worker can be rewarded and a bad one
can be punished.
 2. Line and Staff Organization
Meaning of Line and Staff Organization: – Line and staff organization, in management,
approach authorities (For example: – managers) establish goals and instructions that are
then met by employees and other workers. A line and staff organizational structure attempts
to present a large and complex enterprise in a more flexible way without sacrificing
managerial authority. Staff groups support those who are engaged in the central productive
activity of the enterprise. They back up their work. Staff groups help the organisation in
analysing, researching, counselling, monitoring, and in evaluating activities.

Advantages of Line and Staff Organization: –

 Line officers can mainly focus on the task as planning and checking is done by the
employees. Specialization provides expert advice and proficiency in management.
 Since the organization includes line and staff functions, decisions can be made easily.
 Staff officers provide complete factual data to line officers covering activity within
and without their units. This will help to create more coordination.
 It provides ample opportunities for the advancement of workers.
 Staff services provide a training ground for various positions.
 This arrangement is flexible for newcomers in that employees can be forced to make
early adjustments to the line arrangement.
 Staff experts are ideologically oriented to look forward and have time to undertake
program and strategic planning and analyze the potential impacts of future potential
events.

Disadvantages of Line and Staff Organization: –

  Confusion and conflict may arise between the line and the staff. Because the
allocation of authority and responsibility is not clear and the lower level members
may be confused with various line orders and staff advice.
 The staff usually advises the lines, but the line makes decisions and tasks. So
employees often feel powerless.
 Too much reliance on staff officers may not be beneficial to the business as line
officers may have to lose a lot about their decisions and duplication.
 Since staff specialists demand high pay, it is expensive.
 Employees are unable to carry out its plan or recommendations due to lack of
authority. So they sometimes become ineffective, this will make them careless and
indifferent to their jobs.
 As the line is performed, with advice provided by employees, if things go right, the
employee takes credit and if things go wrong, the line gets the blame for it.

3. Functional Structure Organization

Meaning of Functional Structure Organization: – Functional Structure Organization is
one of the most common structures of organization. They are grouped based on their specific
skills and knowledge. Under this structure, the employees are divided into groups by the
organization according to a particular or group of tasks. Where functional structures operate
well in stable environments, where business strategies have little inclination for change or
mobility, the level of bureaucracy makes it difficult for organizations to react quickly to
market changes.
Advantages of Functional Structure Organization: –

 The executive or the team leader has the knowledge and experience of that particular
field. For example, the person heading the IT department will have the education and
skill necessary to shoulder this responsibility and successfully run his team.
 Because the employee has expertise in that particular field, the work is more efficient
and precise. There are fewer mistakes. This also helps with the motivation of the
employees of the company.
 Since all team members come from similar backgrounds it allows them to share ideas
and come up with solutions. There is a sharing of knowledge, which is always
beneficial.
 The employees also having a clear idea of the hierarchy of the firm. They need not
report or answer to several managers.
 Also, the employees feel secure in their work. They see that their work and efforts is
not going unnoticed. This sense of security helps them perform better.

Disadvantages of Functional Structure Organization: –

 The work can be quite one dimensional. After a while, the employees may start
feeling monotony or boredom. The lack of new challenges can make them
unenthusiastic for the job at hand.
  In this structure, the manager must take care of the appraisal system. If the correct
approach is not taken then conflicts may arise between the employees
regarding promotions or appraisals.
 Also, this form of organization requires a high degree of specialization which is
difficult to establish
 If there is a necessary change of personnel it can disrupt the whole system and its
balance. Also, it is quite a rigid structure, not leaving a lot of scope for adaptation.
 In Functional Organizational Structure, the employees never gain any knowledge or
skills outside their own department. This can cause difficulties in inter-
departmental communication.

4. Matrix Structure Organization

Meaning of Matrix Structure Organization: – A matrix organizational structure is a
structure of organization in which some individuals report to more than one supervisor or
leader, which is described as solid line or dotted line reporting. More broadly, it can also
describe the management of cross-functional, cross-business groups and other work models
that do not maintain rigid business units or silos grouped by function and geography. For
example, an employee may have a primary manager they report to as well as one or more
project managers they work under.

Advantages of Matrix Organization: –

 Since there is both vertical and horizontal communication, it increases coordination

and this leads to greater and more effective control over operations.
 As the matrix organization is handling many projects, the available resources will be
fully utilized.
 It focuses organizational resources on specified projects, thus enabling better planning
and control.
 It is highly flexible in following rules, procedures etc. Experience here is the best
guide for setting rules and procedures.
 As any department has to put its efforts towards the completion of any one project,
employees are effectively motivated.
Disadvantages of Matrix Organization: –

 Since, there is more than one supervisor for each worker, this causes confusion and
conflict and reduces effective control.
 There is continuous communication both vertically and horizontally, which increases
paper work and costs.
 It is difficult to achieve downward balance on projects technical and administrative
aspects.

5. Project Structure Organization

Meaning of Project Structure Organization: – A project structure organizational
structure is used to determine the hierarchy and authority of people involved in a specific
project. This organizational structure is temporarily created for specific projects for a
particular period, for the project to achieve the goal of developing a new product, specialize
in various functional departments such as production, engineering, quality control, marketing
research etc. and will be ready to work together. These specialists return to their duties as
soon as the project is completed.

In fact, the project organization is established with the aim of overcoming the major
weakness of functional organization, such as absence of unity of command, delay in decision
making and lack of coordination.

When to use the project structure organization?

 It is a one-time task and is fixed in the context of a single, specific goal.

 It is big in scope It is unfamiliar or lacks precedent.
 It is complex and calls for a high degree of freedom.
 Successful completion of the project has a high stake.
 The result is very important for the organization.
Advantages of Project Structure Organization: –

 It is a notable depiction of the relationship between environment, strategy and

structure.
 The team can focus properly.
 The clustering of activities on the basis of each project initiates new authorization
patterns.
 As experts from different organizations are ready to work together under the project
organization, it helps in coordination.
 This makes for personal control and determination of personal responsibility.

Disadvantages of Project Structure Organization: –

 The uncertainty can be attributed to the diverse background of the professional who is
deputed in the project.
 The project manager finds it difficult to control in the traditional way in order to
motivate and control employees, in the absence of a norm of lines and norms
responsible for communication.
 Project completion may be delayed.
 Effective project management can also be hindered by top management who may not
be fully aware of the problems in the project center.

TYPES OF CUSTOMER
Customers play a significant role in any business. To understand customer behaviour and better
allocate resources to different customers to generate the highest profit, it is necessary to identify
and segment different types of customers. By better understanding the different types of customers,
businesses can be better equipped to develop successful strategies.

Five Main Types of Customers

In the retail industry, customers can be segmented into five main types:

1. Loyal customers: Customers that make up a minority of the customer base but
generate a large portion of sales.
2. Impulse customers: Customers that do not have a specific product in mind and
purchase goods when it seems good at the time.
3. Discount customers: Customers that shop frequently but base buying decisions
primarily on markdowns.
4. Need-based customers: Customers with the intention of buying a specific product.
5. Wandering customers: Customers that are not sure of what they want to buy.

1. Loyal Customers

Loyal customers are the most important segment to appease and should be top-of-mind for
any company. This type of customers generally represents no more than 20% of a company’s
customer base but contributes the majority of sales revenue. Loyal customers, as the name
implies, are loyal and value a product heavily.
In addition, loyal customers are likely to recommend the company’s products to other people.
Therefore, it is important to solicit their input and feedback and involve them in a company’s
decision-making process. Heavy emphasis should be placed on loyal customers if a company
wants to grow.

2. Impulse Customers

Impulse customers are the best customers to upsell to and are the second most attractive
segment (after loyal customers) to focus on. Impulse customers do not have a specific
shopping list in mind and purchase products spontaneously. In addition, impulse customers
are typically receptive to recommendations on products.

Impulse customers are second to loyal customers in the generation of sales revenue. Keeping
these customers in the loop on new product offerings goes a long way in improving a
company’s profitability.

3. Discount Customers

Discount customers play an important role in turning over a company’s inventory. Therefore,
discount customers are a key contributor to a company’s cash flow. This type of customer
seldom purchases products at full price and shops around for the best markdowns.

Discount customers are resilient to upselling, are usually the least loyal segment of
customers, and generally move on when better markdowns are available elsewhere.

4. Need-Based Customers

Need-based customers are driven by a specific need. In other words, they enter the store
quickly, purchase what they need, and leave. These customers buy for a specific need or
occasion and are hard to upsell. It is important to note that need-based customers can be
easily drawn to other businesses.

Therefore, it is important to initiate positive personal interaction with this customer segment
in order to retain them. Converting need-based customers to loyal customers is attainable
with proper positive personal interactions.

5. Wandering Customers

Wandering customers draw the largest amount of traffic to the company while making up the
smallest percentage of sales revenue. They have no specific need or desire in mind and are
attracted by the location of the business more than anything else. These customers enjoy the
social interaction of the shopping experience.

Therefore, spending too much time trying to appease this segment can draw away from the
more profitable segments. Although this segment generates the least amount of sales revenue,
providing insightful information about products to these customers can stimulate interest and
ultimately result in a purchase.
OFFICE ETIQUETTE
What is office etiquette and why is it important? Office etiquette is simply defined as basic manners
in the world of business. It is important because it cuts down on stress and conflict between
coworkers, which ultimately affects the company’s success.