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
Management Basics
Crisis in Organizations: Stages and Types
Companies face problems all the time, and solve them one way or another. Sometimes one of these problems is difficult-at least at the time it occurs-and it becomes public interest with the help of the press. This problem is then known as a Crisis, where the company is faced with legal, political, financial and governmental impact on its business. The most serious property of crises is the element of surprise. The worst part in their handling is being unprepared. Crisis can come from nowhere at any time; natural disasters, human error, and industrial accidents can all cause crisis. Sometimes the cause of a crisis is management itself; managers may insist that they face no crisis, and they fall into the brink of lying and rejection of its existence. Then, when the time of the deadline comes their answer to why the job is not finished will be: “We faced trouble 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
Important Types of Planning in Management
Planning is highly essential for the successful functioning of any organization, big or small. Planning, in simple terms, involves drawing up a scheduled list of activities required to achieve a particular goal. In a company or even at home, a certain amount of planning helps you finish tasks successfully. But in an organization with a huge workforce and many hierarchical levels, planning is quintessential to meeting the organization’s objectives and targets. Types of Planning in an Organization Strategic Planning Operational Planning Financial Planning Marketing Planning Proactive Planning Strategic Planning Strategic planning is the kind of planning that provides direction for the organization on how to proceed in the long run. The organization makes clear the strategy it intends on pursuing to achieve all of its targets, and allocates resources and takes action accordingly. In order to be able to devise the organization’s strategy, it is necessary that the organization knows 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
Types of Business Ownership – Sole Proprietorship and Partnership
When entrepreneurs establish a business, they must decide on the form of business ownership. There are three basic forms of business ownership: sole proprietorship, partnership, and corporation. The form that is chosen can affect the profitability, risk, and value of the firm. The business ownership decision determines how the earnings of a business are distributed among the owners of the business, the degree of liability of each owner, the degree of control that each owner has in running the business, the potential return of the business, and the risk of the business. These types of decisions are necessary for all business. Sole Proprietorship A business owned by a single owner is referred to as a sole proprietorship. The owner of a sole proprietorship is called a sole proprietor. A sole proprietor may obtain loans from creditors to help finance the firm’s operations, but these loans do not represent ownership. The Continue reading