Organizational structure, a popular phenomenon in the dynamic business world, can be defined as the manner in which a company allocates its management responsibilities and how different activities are coordinated within the firm. The structure of an organization will always influence its success. A well-devised strategic and operational framework is more likely to enable the company to attain its objectives easily than a roughly sketched one. Small enterprises generally start without a formal organogram but gradually add hierarchical corporate entries with departments, executives, and other subordinate minions as the business expands, thus realizing improved performance. On the contrary, the absence of such a setting in a business implicates operational inefficiencies that may eventually push it out of the market as a result of competition. High Rate of Turnover – Employee turnover, often known as staff renewal rate, is a problem in which employees quit their jobs frequently and in large Continue reading
Management Concepts
Causes of Resistance to Organizational Change
The main reasons for resistance to change are both individual and organization. The research document of individual and organizational behavior has found that organization groups and individuals resist change. Resistance to change provides a degree of stability and predictability to behavior, as it does not allow immediate change. If there was no resistance to change the organization will take on characteristics of chaotic randomness. Read: Reactions to Organization Change There may be reasons for resistance to change for analytical purpose, lets us categories the causes into the following. Individual Resistance. Group Resistance. Organizational Resistance. 1. Individual Resistance Individual arise due to differing perceptions, personalities and needs. Some of these reasons appear to be rational and emotional. These reasons are listed below, a). Economic Factors The economic reasons for the resistance to change may be the following: In organization when the development or change on technology takes place, employee resists the Continue reading
Role of Leadership and Culture in Promoting Innovation and Creativity
Organizational culture is a very important factor that affects the innovation and the creativity of an organization. Google for example, wouldn’t be so successful in technological innovation without its excellent organizational culture that gives the opportunity to its employees to work hard and innovate. Leadership has also a strong effect on the organizational culture of a company. A good leader must encourage, motivate and inspire his employees to be more creative and innovative. When Steve Jobs left from Apple, the organizational culture of the company was no longer the same and Apple failed to maintain its great success. Leadership and The Example of Apple Leadership is defined as a persons ability to anticipate, envision, maintain flexibility, think strategically and work with others to initiate changes that will create a viable future for the organization. The role of an organizational leader is to define the organizational goals, formulate plans and organize Continue reading
Culture as a Normative Control Tool in Organizations
Proponents of corporate culture as an informal control mechanism regard culture as a management tool that can be manipulated though the actions of top management. Culture is a management tool; however, there is a counter-view that corporate culture is a rather complex construct. People argue that culture should be regarded as something that an organization ‘is’, not as something that an organization ‘has’; it is not an independent variable, nor can it be created, discovered, or destroyed by the whims of management. Despite the academic debate surrounding corporate culture as a construct, for practicing managers, caught up with the need to control and recognizing the flaws in the more formal and bureaucratic mechanisms, the lure of cultural control as a management tool is highly seductive. Significance of Cultural and Normative Forms of Control From the last few years, organisations have become interested in organisational control and employees’ self-hood. This control Continue reading
Leading Versus Managing – A Comparison
In this era of globalization for today’s workplace, people always like to say that “A manager may be a leader; a manager may not be a leader, but a leader may emerge who is not a manager.” So what its means of this phrase? It means that a leader and a manager could be different. For example, an outstanding leader may have superior management skills, but not all managers could possess true leadership skills. In short, it is possible for the role of manager and leader not to be connected at all. This phrase is important to prove that having both talented managers and dedicated leaders make the business success. Why? Let’s see the difference between managers and leaders as following. Manager and Leader – Definitions By definition, a manager is an individual who is given a position and the power within an organization. In normal circumstance, he is normally Continue reading
Various Aspects of Business Failure
Business failure occurs due to different reasons. While few firms fail within first year or two of life, few others grow, mature and fail much later. The business failure can occur in a number of ways and also from different reasons. Why Business Firms Fail Let us try understand the different reasons why corporate often fail; An imbalance of skills within the top echelon. A chief executive who dominates a firms operations without regard for the inputs of peers. An inactive board of directors. The board of Directors lack of interest in the financial position of the company may lead to insolvency. A deficient finance function within the firm’s management. The absence of responsibility for the chief executive officer. Apart from the above mistakes the firm usually is vulnerable to several mistakes; Management may be negligent in developing effective accounting system. The company may be unresponsive to change. Management may Continue reading