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 Basics
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
7 Key Elements of a Business Plan
The aim of venturing into a business is to make profits. In this case, all elements of a business plan should be aimed at creating a successful entrepreneurial venture. A business plan is a document that indicates a plan on how an investment is to be conducted. It includes among other elements; generation of ideas, financial and market analysis, strategic objectives, cash flows and profits and loss forecasts. Other elements that may be included in the business plan are a balance sheet projections, competitive strategies and scenario analysis. All these elements contained in a business plan give an understanding of the current and future expectations of the business. They identify the business and give a rationale of investing in the said business. In this case, these elements should be comprehensive and a faithful representative of the actual situation of the business venture. If well drawn, the elements of a business Continue reading
Post-Fordism – A Critical Evaluation
It is widely argued that the era of Fordism began with the development of the model T motor car, the world’s first successfully mass-produced car, at Henry Ford’s Piquette Avenue manufacturing plant in Detroit, Michigan. From this, a new age of production developed, changing both the economic and the political landscape of manufacturing globally, and establishing the progression to a new form of capitalism. The key characteristics of Fordism center around the major industrial paradigm of mass production that involves production of standardized goods by unskilled labor through the use of assembly-line techniques. This principle of ‘continuous-flow production’ as a new regime of accumulation inherently involved a rise in mass consumerism, that was encouraged by the supply of relatively cheap products, intelligent advertising and, arguably most importantly, through changes to social conditions of low-skilled employees. This originated from Henry Ford himself, who notoriously raised minimum pay to $5 a day Continue reading
Types of Management Control
Management Control Types There are three major types of management control over behavior in organizations. Each control has its own standards, its own monitoring system and its own system for corrective action when behavior does not meet standards. These three types of management controls are given below: Organizational Controls. The organizational controls refer to the formal rules and standard operating procedures that are communicated throughout the organization. Such controls are concerned with the total organization and may, therefore, be called administrative controls. The direction for organizational controls comes from the plans and purposes of the organization. In business organizations, this direction is often expressed in terms of market share, cost reduction, return on investment etc. These may be translated into specific performance measures such as sales quotation standard costs and budgets. Rewards for meeting standards, vary from a word of praise to salary increase and promotion. Social Controls. Social or 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