Tuckman’s Team-Building Model

Forming – Storming – Norming – Performing is a model of team development, first proposed by Bruce Tuckman in 1965, who maintained that these phases are all necessary and inevitable in order for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver results. He added a fifth stage, Adjourning, in the 1970s. The Forming Storming Norming Performing theory is an elegant and helpful explanation of team development and behavior. Tuckman’s team-building model explains that as the team develops maturity and ability, relationships establish, and the leader changes leadership style. Beginning with a directing style, moving through coaching, then participating, finishing delegating and almost detached.  According to Tuckman, all of the phases are necessary and inevitable. In order for the team to grow they most face up to challenges, problems, find solutions to problems, planning as a team, and Continue reading

Objectives of Management Control Systems

Control is an important function of management. Without control, a manager cannot “do a complete job of managing”. All other management functions are the preparatory steps for getting the work done and controlling is concerned with making sure that there is proper execution of these functions. Control is necessary whenever a manager assigns duties and delegates authority to a subordinate. He must exercise control over the actions of his subordinates so that he can ensure that the delegated authority is being used properly. Objectives of Management Control A sound control system is needed for the following purposes: 1. To measure progress. Under the planning process the fundamental goals and objectives of the organization are established. The control process is necessary to measure progress towards these goals. According to Henry Fayol, “Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and the principles established.” Continue reading

Forms and Types of Business Entities

Business can be defined as an organization that provide goods and services to others, who want to do or need them, when people think of business careers, they have to think of job in large wealthy corporation, there are wide verity of career areas in business line. Business Entity is an organization that possesses a separate existence for tax purposes. Some types of business entities include corporations and foreign corporations, business trusts, limited liability companies, and limited partnerships The two basic types of business entities are sole proprietorship and partnerships. Sole Proprietorship Sole proprietorship type of business entity which legally has no separate existence from its owner. Limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. Also debts of the business are debts of the owner in the case of sole proprietorship type of business. A sole proprietorship essentially refers to a Continue reading

Product and Process based Functional Organizations

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

Differences Between Profit and Non-Profit Organization

An  organization  is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. It is a business which has a primary goal of making profit and a proposed goal such as helping the environment. A  non-profit organization  is an  organization  which does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals.  Examples of NPOs include charities (i.e.  charitable organizations),  trade unions, and public  arts  organizations. Most governments and government agencies meet this definition, but in most countries they are considered a separate type of organization and not counted as NPOs. They are in most countries exempt from  income  and  property taxation. Differences between Profit and Non-profit Organization Ownership is the quantitative difference between for- and not-for-profit organizations. For-profit organizations can be privately owned and may re-distribute taxable wealth to  employees  and Continue reading

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