Meaning of Operational Control Operational control or task control is the process of assuring that specific tasks are carried out effectively and efficiently. The focus of operational control is on individual tasks or operations. For instance, it is concerned with scheduling and controlling individual jobs through a shop rather than with measuring the performance of the shop as a whole. It involves control over individual items for inventory rather than the management of inventor as a whole. Operational control is concerned with activities that can be programmed. For instance, if the demand for an item, the cost of storing it, its production cost and production-time, and the loss involved in not filling an order are known, then the optimum inventory level and the optimum procurement schedule can be prepared. Automated plants, production scheduling, inventory control, order processing, payroll accounting, cheque handling, etc are examples of activities that are susceptible to Continue reading
Management Basics
Traditional Management Model vs. Modern Management Model
The world economy increasing becomes globalization, which lead to broad mixture of local, national and global markets and organizations, due to different ethic, values and cultures, even both parties speak same language, there still could lead misunderstanding, therefore today’s managers face more challenges, such as understanding the changing trends in the market, how to maintain beneficial interpersonal relationship with employees and clients, concerning about business ethics and corporate social responsibility surround managerial actions. And the turbulent global environment push managers spend more time crossing borders to conduct business, it is necessary to understand how to communicate effectively with people in different cultures to fulfill the organization’s missions and create values for the stakeholders. Traditional top-bottom management model was successful in the 20th century, however managerial hierarchies and traditional approaches may impose heavy costs on the business that would become administrative burden in future. Moreover, business and environmental changes occurred at Continue reading
Influence of the Scientific Management Theory on Modern Organizational Designs
The contemporary organizational operations center on effective planning techniques, specialized management, the division of labor, formalized interactions between managers and workers, and specializations and innovations, which are designed to achieve specific objectives. These organizational functions and operations are attributable to the concepts of the scientific management model proposed by Fredrick Taylor in the 20th century. As a mechanical engineer, Taylor devised scientific management ideologies that provided effectiveness in the running of industries. During his time, the management of industries comprised multiple anomalies and organizations lacked formal managing systems. Hence, Taylor’s management principles sought to eliminate these irregularities by improving the workers’ productivity in their class of work. Although modern organizational designs exhibit Taylor’s scientific management principles, there have been several criticisms against his propositions. Therefore, the theory of scientific management exhibits numerous weaknesses and strengths despite its influence on modern organizational functions. The Scientific Management Principles Taylor utilized systematic analysis and Continue reading
The Effect of Organizational Structure on Innovation
Organizational structure is the skeleton system based on which an organization functions. Organizational structure deals with the framework which defines the relation between people and positions in the organization. Organization structure is defined as the formal system of task and reporting relationships that controls, coordinates and motivates employees so that they cooperate and work together to achieve an organization’s goals. Several tasks are to be implemented in an organization, for these organizational tasks to be successful, they should be coordinated. Organizational structure supports division of work, categorizing the tasks and supervision in an organization. An effective organizational structure aids the efficient running of an organization. The factors that govern the formulation of an organizational structure are benefits of channelizing the tasks, hurdles due to communication and obstacles due to formatting the authority levels. Organizational structure helps the managers in a firm to describe, distribute and get job done. Organizational structure Continue reading
Steps in Rational Decision Making
Effective decision-making process requires a rational choice of a course of action. There is a need to define the term rational here. Rationality is the ability to follow systematically, logical, thorough approach in decision making. Thus, if a decision is taken after thorough analysis and reasoning and weighing the consequences of various alternatives, such a decision will be called an objective or rational decision. Therefore rationality is the ability to follow a systematic, logical and thorough approach in decision-making process. Gross suggested three dimensions to determine rationality: (i) the extent to which a given action satisfies human interests; (ii) feasibility of means to the given end; (iii) consistency. Steps of decision-making process are given below: Diagnosing and defining the problem: the first step in decision-making is to find out the correct problem. It is not easy to define the problem. It should be seen what is causing the trouble and Continue reading
Organizing Function of Management
According to Haimann, “Organization is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them.” The mentioned definition makes it clear that on the one hand organization is a process to define and classify the functions to be performed for the attainment of the objectives of the organization, and on the other hand, it is an art to establish sweet relationship among different persons. There are two concept are prevalent about organisation. In the other word, there are two meaning of organization: Organizing as process: According to the first concept of organizing, it has been considered as a process. In the other word, organizing is not function that can be performed at a single stroke, but it is a chain of various functions. It includes getting information about objectives, deciding various activities and grouping them, determining important activities, allowing authority and responsibility, Continue reading