One of the pre-requisites for effective implementation of Management by Objectives (MBO) is a clear thinking at the corporate level translated into long-term plans. Many organizations have over the years, implemented MBO and improved their operations and performance. Effective implementation of MBO requires a good reporting system. This is necessary for taking timely remedial action in case of deficiency is noticed in any area. As organization grows in size, this reporting system becomes complex and time consuming. It may not be possible for top management to directly supervise each and every activity at lower interested in critical activities rather than every activity. Thus, as a bye product of MBO, large organizations introduced what is called Management By Exception (MBE). In this management technique, higher levels of management will concentrate only on exceptional situations, i.e., critical areas. Both MBO and MBE are scientific forms of management. However, they can be successful Continue reading
Management Basics
Management Planning and Control
The essence of the management process is decision-making. Decision making is an unavoidable and continuous management activity. It may be directed towards some specific objectives, or it may result as a reaction of environmental factors as they occur. The decision-making process should be both efficient and effective. It would be effective when management’s objectives are achieved. It is said to be efficient when objectives are realized with the minimum use of resources. The process of decision-making involves two basic management functions of planning and control. Planning Function of Management The decision-making process starts with planning. Planning is a statement of what should be done, how it should be done and when it should be done. It is the design of a desired future state of an entity and of the effective ways of bringing it about. Its basic purpose is to provide guidelines for making decisions. Continue reading
Difference Between Tall and Flat Organizational Structure
The concept of organization is born when two or more people work together in order to achieve a common goal. Purpose of an organisation is to create responsibilities and positions by which an organisation can carry out the work. Organisation may be formed in different sizes. All people working in the same organisation have their own functions, attitudes and techniques to apply for achieving their common goal. In order to manage and control the resources, an organisation needs to be structured. Organization structure is formal system that makes the organisation to run smoothly and helps to focus the common goals and objectives. It gives a clear idea about the chain of command that need to be prioritized when a problem arise. It also defines what people are responsible in the organisation for different reasons. A solid structure provides the framework to deliver on business strategy. The structure of an organisation Continue reading
The Meaning and Essence of Leadership
Leadership is a process of influencing the behavior of other people to work willingly towards the achievement of organisational goals. It involves existence of a leader and followers. So leadership is an exercise to influence the behavior of the followers towards attainment/achievement of specified goals. Here the person who guides or directs his followers is known as leader. Leadership is a process of influence: Leadership is a process whose important ingredient is the influence exercised by the leader on goup members. A person is said to have an influence over others when they are willing to carry out his wishes and accept his advice, guidance and direction. Successful leaders are able to influence the behavior, attitudes and beliefs of their followers. Leadership is the function of stimulation: Leadership is the function of motivating people to strive willingly to attain organisational objectives. Leaders are considered successful when they are able to Continue reading
Differences Between Managers and Leaders
Quite often leading and managing are considered as synonymous terms. Both require several qualities or traits and both are processes involving interpersonal relations. Both involve setting goals and mobilizing resources. They are complementary qualities inexorably linked to each other, and any attempt to extricate one from the other is impossible. What is the difference between management and leadership? It is a question that has been asked more than once and also answered in different ways. “There is a profound difference between management and leadership, and both are important. To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading is influencing, guiding in a direction, course, action, opinion. The distinction is crucial” — Quote from “On Becoming a Leader” by Warren Bennis Some people think of the words Manager and Leader and think they are the same. The two are related, but the Continue reading
Concept of Performance Standards in Management
Standards of Performance A standard is a criterion against which performance and results of the individuals is measured or judged. Standard should be based on scientific analysis and should not be subjective in nature. It should possess the following characteristics: Standard should be capable of achievement with reasonable amount of effort and time. Standards should concentrate at results and not the procedures. Standards should not be rigid hey should be capable of being changed whenever the need arises. As far as possible standard should be expressed in quantitative terms and should be based on the result of were measurement carried with the help of time and motion studies. Standards should be consistent with the overall organization objectives. Types of Standards of Performance Standards may be expressed in physical terms or monetary terms. Physical standards are generally, applied at the operative levels where the quantity and quality of production is to Continue reading