Economists and philosophers have developed many theories that explain how organizations are managed and how they function. Managers look upon these theories when they are managing the organization. The theories have impacts on the organization in which they are applied. The impacts could either be positive or negative depending on how it is applied and the form and nature of organization in which it is applied. In fact, each theory has its strengths as well as shortcomings. It is, therefore, the duty of the managers to choose the theory that best fits their organization and that which contributes to organizational success. Among the theorists who have contributed to the theories that have had significant impacts on organizations is Henry Ford. Henry Ford is one of the most celebrated industrialists of all times. He is the one who founded the famous motor company known as Ford Motor Company, named after him. Continue reading
Management Principles
Should Management and Leadership Be Separated?
Achieving business victory calls for diverse individuals to handle diverse functions for organisational operations to be handled as planned. While some roles are easy to define, others may at times have confusing boundaries due to their vague nature. An example of a case where such confusion may arise is differentiating between a leader and a manager. Management and leadership have an imperative function in getting things done. However, both of them have varying aspects with respect to the role they play and their impact. This claim does not imply that one cannot play both roles simultaneously. It is possible for one to be a leader and a manager at the same time performing both roles. However, it is worth noting that being a great leader does not necessarily imply that such a person makes a phenomenal leader and vice versa. For this reason, it is paramount for people to get a clear Continue reading
Comparison Between Leadership and Management
The concepts of leadership and management are an essential discussion in business. Each company or organization maintains people who are in charge and the approach they choose to take strongly depends on personality as well as education and training. The field of leadership research has offered competent theories to outline the dynamics of being in a position of power. As industry players expand and become more complex, company executives need to acquire critical skills and balance leadership styles with management approaches. Leadership is necessary for any organization to achieve its mission and vision. It is a process when an individual influences peers to work towards and achieve common objectives or outcomes. The concept of leadership can be developed into a focused, dynamic, and cooperative performance system. Interaction through dialogue and discussion can lead to influence and changes in organizational structure, operational procedures, key performance indicators, and the feedback process. Essentially, Continue reading
3 Important Roles of Organizational Hierarchy
Hierarchy refers to a system of organization that respects the chain of command whereby each agency is under supervision of a higher office. In many organizations, a group of managers is always above other employees in terms of knowledge and experience and is placed at the top while others follow based on their experience and the understanding of the organizational functions. Hierarchy is mostly present in government and other governmental institutions whereby each unit has its own powers, authority, and levels of management. Based on the chain of command, an individual communicates or reports to the immediate supervisor or the authority above him. Hierarchy was adopted mainly because it allows information flow given the fact that a junior officer cannot surpass the authority above him or her to report to the senior manager, unless it is necessary. Hierarchy plays an important role in any organization because it benefits the company Continue reading
Organizational Chart – Meaning, Definition, Features, Types, Advantages and Limitations
Organizational structure of a company can be shown in a chart. Such chart indicates how different departments are interlinked on the basis of authority and responsibility. It is a simple diagrammatic method of describing an Organizational structure. It indicates how the departments are linked together on the basis of authority and responsibility. Such organizational chart provides information of the organizational structure at a glance. Organizational chart is like a blue print of a building. It indicates the number and types of departments, superior-subordinate relationship, chain of command and communication. According to George Terry, organizational chart is “a diagrammatical form which shows important aspects of an organization, including the major functions and their respective relationships, the channels of supervision and the relative authority of each employee who is in-charge of each respective function”. Features of Organizational Chart The definition noted above indicates the following features of Organizational charts: Organizational chart is a Continue reading
Span of Management -Meaning and Factors Determining
An organization is characterized by the presence of a number of levels and departments. But more the levels are created, more will be the administrative cost due to additional staff required and more will be the difficulties to be encountered in communication and controlling. If this is so, why create departments and levels? Answer to this question is provided by the principle of span of management. This is basically the problem of deciding the number of subordinates to report directly to each manager. The principle states that there is a limit to the number of subordinates that each manager can effectively supervise. The term “span of management” is often referred to as span of control, span of supervisions, span of responsibility or span of authority. But the term “span of management” should preferably be used since span is one of management and not merely or control which is just important Continue reading