Product Functional Organizations Product functional organization establishes each product or group of related products as an autonomous unit in the framework of the organization. In product functional organization structure, each product has a separate identity although it functions under the control of the Chief Coordinating Executive. Each product department has several functions broadly divided into finance, marketing, personnel and production, which are also coordinated with the chiefs of the respective functions. The main advantage of product functional organization is qualitative production under the supervision of expert personnel to produce a particular product. For instance, a company may be producing modular kitchens, healthcare products, consumer electronics, computers, etc., which are managed by the respective engineering expert in the areas of their product. Overall control and supervision by higher executives is essential for the maximum utilization of existing resources without incurring wastage. It means rationalization is exercised with Continue reading
Management Principles
Major Schools of Management Thought
Business in today’s world has become an extremely competitive force changing continuously at a rapid rate. Working in the 21st century requires dealing with a dynamic environment with people that have diverse needs. Every business organisation needs to be managed, and hence there is a need for managers. Even years back there was a diverse need for management of organisations. There have been people who have tried to study management so as to make the most efficient and effective use of their resources. There have been scientific methods, and similarly there have been methods based on people’s behavior. Organisations nowadays use these methods in their business management. Harold Koontz and Heinz Weihrich refer to management as the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Management has been referred to as an art and a science, some people even call Continue reading
Concept of Flattening Organization Structures
Organizational structures refer to the way in which an organization is designed, including how tasks are divided, how authority is distributed, and how information flows. Traditional hierarchical structures have long been the norm in many organizations, but in recent years there has been a growing trend towards “flattening” organizational structures. Flattening refers to the process of reducing the number of hierarchical levels in an organization and distributing decision-making power more widely. In this article, we will explore the benefits and challenges of flattening organizational structures and provide some guidance on how to implement this approach effectively. Benefits of Flattening Organizational Structures Increased agility and responsiveness – Flattening an organization can make it more agile and better able to respond to changes in the marketplace. In a traditional hierarchical structure, decision-making is often slow and cumbersome, as decisions need to be passed up the chain of command for approval. Flattening the Continue reading
Important Characteristics of Management
An analysis of the various definitions of management indicates that management has certain characteristics. The following are the salient characteristics of management. 1. Management aims at reaping rich results in economic terms: Manager’s primary task is to secure the productive performance through planning, direction and control. It is expected of the management to bring into being the desired results. Rational utilisation of available resources to maximise the profit is the economic function of a manager. Professional manager can prove his administrative talent only by economising the resources and enhancing profit. According to Kimball – “management is the art of applying the economic principles that underlie the control of men and materials in the enterprise under consideration”. 2. Management also implies skill and experience in getting things done through people: Management involves doing the job through people. The economic function of earning profitable return cannot be performed without enlisting co-operation and Continue reading
Guidance in Management
The Concept of Guidance Guidance in management can be defined as: – “The act or process of guiding” or “The one who shows the way by leading, directing, or advising. “ or “The one who serves as a model for others, as in a course of conduct.” Good manager guide their employees to continually learn new skills and work toward organizational goals, while being sensitive to their needs. This kind of guidance gives employees a vested interest in their organization, which will affect the quality of their work. The good manager is a leader, not an order giver. When a manager tells an employee what he want done, instead of giving an order, the manager give their employees the freedom to come up with their best way of getting that task done. It may not always be the best way, and the manager may have to do some monitoring and Continue reading
Criticism of Scientific Management Theory (Taylorism)
Frederick Winslow Taylor was one of the first theorists to consider management and process improvement as a scientific problem and, as such, is widely considered the father of scientific management. He proposed that a business’s economic efficiency could be improved by simplifying and optimizing work processes, which would, in turn, increase productivity. Taylorism, as a philosophy, was the product of a series of experiments and observations, such as time-motion studies, designed to determine the most effective and efficient way to complete a task. Its fundamental and inter-related principles can be summarized as follows: Using scientific method to challenge habitual working practices and to determine the most efficient way to perform specific work tasks; Matching workers’ capability and motivation to the task requirements and supervising them according to the established rules and procedures; Establishing fair performance levels and develop a pay system that rewards, and therefore encourages, over-achievement; and Appropriate division Continue reading