The type of control which would be suitable for a particular firm depends upon the nature and complexities of its operations. A suitable control system has to be designed to suit the specific requirements of a particular firm. Service organizations are those organizations that provide intangible services. Service organizations include hotels, restaurants, and other lodging and eating establishments; barbershops, beauty parlors and other personal service; repair services; motion picture, television and other amusement and recreation services; legal services; and accounting, engineering, research/development, architecture and other professional service organizations. Characteristics of Service Organizations 1. Absence of Inventory: Services cannot be stored. If the services available today are not sold today, the revenue from these services is lost forever. In addition the resources available for sale in many service organizations are essentially fixed in the short run. A key variable in most service organizations therefore is the extent to which current capacity Continue reading
Management Concepts
Impact of Personality Types at Workplace – The Big Five Personality Traits
The unique thought patterns, behaviors and feelings that make an individual different from the other can be termed as Personality. The personality of every individual originates out of genetic heritage as well as his immediate surroundings, and remains constant all through their lives. This results in individual differences. Due to complexity in human nature arising out of the wide variety of experiences in life, the different personality types affect individual relation ships in an organization, and affect the organizational climate. However, though it is assumed that the personality of an individual is more or less constant, it does not happen so. It has been observed that though individual differences occur as a result of various styles of parenting and the amount of attention that one received in childhood grooming, individual successes and failures experienced in life, changes in individual personality do occur in the long run. Individuals are likely to Continue reading
Features of Management By Objectives (MBO)
Management by Objectives (MBO) was first popularized by Peter Drucker in 1954 book ‘The Practice of Management’. Drucker drafted MBOs as an approach to get the management and employees to jointly set goals to achieve known as objectives. The main purpose for setting objectives was to give both the managers and employees a clear understanding of what they were expected to do in the organization in order to achieve the objectives set. The objectives were set during certain time periods which at the end of the period to evaluative performances are carried out to determine the extent to which the set objectives had been achieved. An example of an objective includes attaining a sales or profit target by the end of a financial year. In the modern world of business where gaining competitive over competitors has became one of the main goals by organization, Management by Objective has become one Continue reading
Characteristics of an Effective Leader
Every person has the capability to be a leader. Along with coaching and diagnostic tools, it would be easy to identify obstacles that hold individuals back. There are multiple characteristics and skills needed to be an effective leader. Effective leader characteristics include personal authority, personal qualities and practical approach. Firstly, personal authority means that the leader position only affects and extends downward. With the increase of power, responsibilities increase. Thus, the leader will have the ability to reward and discipline according to individuals’ performance. As well, people who use their former power tend to be less effective. Secondly, personal qualities play an important role in influencing peers as will as superiors to create and maintain relationships inside and outside organizations. These personal traits compose of emotional resiliency, extroversion, learning orientation, collegiality and conscientiousness. Leaders with these traits are characterized by having warmth, assertiveness, imagination and creativity, sensitivity and the ability Continue reading
Major Types of Organizational Structure
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. An organization can be structured in many different ways, depending on their objectives. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions. On the basis of analysis of various design variables, organizational structure can be broadly categorized into four major forms: Functional Structure: In a functional structure, the Continue reading
Management Levels in an Organization
The term level of management refers to a line of demarcation between various managerial positions. The number of levels of management depends upon the size, technology, degree, of diversity and nature of product. There are mainly three levels of management in most of the organization. Top level management Middle level management Lower level management The extent to which managers perform the functions of management – planning, organizing, directing, and controlling – varies by level in the management hierarchy. Each person in the hierarchy is provided with just enough amount of authority and responsibility. Definitely, as we move up the hierarchy the authority and responsibility seems to increase. This hierarchy gives rise to an authority-responsibility relationship between individuals which gives rise to various levels of management, which further introduces superiors and subordinates (due to the difference in authority and responsibility) into the management system. 1. Top Level Management Top level consists of the board Continue reading