Meaning and Definition of Perception Perception can be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. Perception is not just what one sees with eyes. It is a much more complex process by which an individual selectively absorbs or assimilates the stimuli in the environment, cognitively organizes the perceived information in a specific fashion and then interprets the information to make an assessment about what people select, organize, and interpret or attach meaning to events happening in the environment. Since perception is subjective process, different people may perceive the same environment differently based on what particular aspects of the situation they choose. For example, some employees may perceive the work place as great if it has favorable working conditions, good pay. Others may perceive it as great if it has challenging assignments and opportunity to grow. Managers Continue reading
Management Basics
Shortcuts in Judging Others – Meaning, Types and Applications
Meaning of Shortcuts in Judging Others In perceiving the stimuli in our environment, people are likely to make so many errors and ended up with poor results. Some of those errors are stereotyping, halo effects, selective perception, distortions, attributions, projections etc. Each of these errors is dysfunctional for good decision making and management. Since subjective emotions, judgmental attitudes, and distortion of facts are common in perceiving any situation, we have tried to identify ways in which we can minimize perceptual biases. The need for managers to accurately perceive the environment and how manages can sharpen their perceptual skill are vital in enhancing perceptual skills. People tend to follow a number of shortcut methods when observing others and making judgment of others activities. These techniques are to some extent valuable and allow us to make accurate perceptions rapidly and provide valid data for making predictions. However, they are not foolproof. However, Continue reading
What is Personality? Meaning, Definition, Determinants and Traits
People tend to have a general notion that personality refers to a personal appearance with charming smile, or outlook. But psychologists view the concept as dynamic in nature concerned with growth and development of a person’s whole psychological system. Personality can be defined as the consistent psychological patterns within an individual that affect the way they interact with others and the situations they encounter. Personality is defined as relatively stable and enduring characteristics that determine our thoughts, feelings and behavior. Personality is a complex phenomenon and there are various perspectives of personality construct. One common and simple definition of Personality is: It is the consistent psychological patterns within an individual that affect the way they interact with others and the situations they encounter. Research studies shows that individual’s personality is more or less consistent, lasting, and can remain substantially constant across all the situations and time. But there are individual Continue reading
Importance of Planning in Management
One of the first and most important functions of management is planning. Planning consists of the process of evaluating the goals of an organization and creating a plan to meet these goals. Both Koontz and O’Donnell state that “planning is deciding in advance on what to do, when and how it will be done, and who will be doing it”. Therefore, planning is the foundation of the management role, and plays a critical part to the success of an organization by determining the means and the methods in order to achieve the objective. A key element and starting point of this process should include the development of a Mission and Vision Statement to which aids in the way an organization functions. The mission statement is the explanation of the organization’s existence, while the vision statement is the motivator in which defines the purpose and direction of the organization for not Continue reading
Delegation of Authority – Concept, Features, Advantages and Barriers
The process of assignment of specific work to individuals within the organization and giving them the right to perform those works is delegation. Delegation of authority is one of the most significant concepts in management practice, which affects managerial functions. Management is the art of getting things done through others and delegation means to get the results through the subordinates. The expansion of business volume and diversification of line of business makes it impracticable to handle all the business by a single manager. Therefore, the concept of delegation of some managerial authority to subordinates comes into practice in present day business organizations. Here, the manager delegates some of his authority to his subordinates. This helps in developing a feeling of dedication to the work among the subordinates. The top level management plays only the role of a supervisor and visits them to provide guidance, suggestions and instructions. It minimizes the Continue reading
Transfer Pricing Methods
In a simple terms the term Transfer pricing refers to the prices that related parties charge one another for goods and services passing between them. The most common application of the Transfer pricing rules is the determination of the correct price for sales between subsidiaries of a multinational corporation. These prices can be used to shift profits to tax-favored jurisdictions, If in a transaction between a subsidiary in a high-tax jurisdiction and another in a low-tax jurisdiction, the high-tax subsidiary charges a price below the “true” price, some of the group’s economic profit is shifted to the low-tax subsidiary. Obviously taxpayers would want to engage in this sort of behavior because it can significantly reduce their taxes. If there were no limitations on this behavior, the entire income of multinational corporations would be taxed at the lowest tax rate in the world to zero rate of taxation. Consequently most countries Continue reading