An organization is a group of people who work together with coordinated efforts to achieve certain objectives or goals. Organizational goals and objectives are of various categories, and it is this variation of the goals and objectives which classify organizations into three main categories, namely profit-making, service-based, and social responsibility based organizations. Organizational culture refers to shared beliefs, values, norms, and practices which characterize an organization. Norms are informal rules which are institutionalized by organizations. The norms govern the conduct of employees and constitute what is permitted and prohibited in different organizations. One of the important aspects of organizational culture is teamwork. Organizations encourage employees to work in groups instead of working independently. Teamwork makes organizations benefit from the synergy found in groups. Working in groups gives employees an opportunity to exercise their creativity, innovativeness, skills, and talents. It also enables the group members to learn from the strengths of each Continue reading
Management Basics
Financial System – Meaning, Functions and Services
A financial system is a network of financial institutions, financial markets, financial instruments and financial services to facilitate the transfer of funds. The system consists of savers, intermediaries, instruments and the ultimate user of funds. The level of economic growth largely depends upon and is facilitated by the state of financial system prevailing in the economy. Efficient financial system and sustainable economic growth are corollary. The financial system mobilizes the savings and channelizes them into the productive activity and thus influences the pace of economic development. Economic growth is hampered for want of effective financial system. Broadly speaking, financial system deals with three inter-related and interdependent variables, i.e., money, credit and finance. The financial system provides channels to transfer funds from individual and groups who have saved money to individuals and group who want to borrow money. Saver (refer to the lender) are suppliers of funds to borrowers in return Continue reading
Three Major Organizational Management Paradigms
The social understanding of organizations in the economic system has been evolving with time. Several theories have been put forward in an attempt to explain the role of organizations in society, their effect on the socio-economic and political systems as well as the relationship between society and the organizations. Models of organization theory have been elaborated with the paradigm of organizational management being developed over the years. The inclusion of technology in the management of organizations has been a key in the development of new theories and postulates on how organizations are managed and their relationship with the environment as well as society in general. Three major paradigms of perception on organizations have been elaborated below; rational, natural, and open paradigms. The rational system is the most dominant perspective embraced by most real-world managers and practitioners. The rational system is characterized by two structural features that set it apart from Continue reading
14 Tips on How to Build Effective Teams
When building a team, you need to make sure individuals are aware of their job role and responsibilities and if so, who’s taking leadership and who’s accountable for each task. There needs to be clear lines of responsibility and authority. Individuals must be aware of what task needs to be achieved, when and how they are going to accomplish this. Team members should have the required skills to be able to carry out tasks and duties effectively. To build a team you need to gain each individual trust and loyalty, making them feel part of the team so that individuals do not feel fearful of people in leadership roles. The leader should clarify the purpose and set clear goals where team members work towards common goals which are clearly communicated and agreed. There are many techniques to help build a team such as valuable ideas, which means when working in Continue reading
Charles Handy’s Model of Organizational Culture
Organizational culture influences the behavior of organisations but as it is intangible it is difficult to define and understand. Organisational culture introduces unspoken rituals and tacit rules and addresses the actions, values, and behaviors, which, in combination, contribute to the overall philosophy and environment of the organisation. It shapes the way in which employees behave and make decisions and is formed over time as a result of the experiences and values of the organisation and the way in which it reacts to internal and external circumstances. A key role of organizational culture is to differentiate the organisation from others and provide a sense of identity for its members. Cultures do not have to be logical or consistent, in fact they seldom are and can appear quite haphazard and chaotic to the outsider. A strong culture is one that is internally consistent, is widely shared, and makes it clear what it Continue reading
Planning Function of Management – Definition and Features
Planning is the process of deciding in advance what is to be done, who is to do it, how it is to be done and when it is to be done. It is the process of determining a course of action, so as to achieve the desired results. It helps to bridge the gap from where we are, to where we want to go. It makes it possible for things to occur which would not otherwise happen. Planning is a higher order mental process requiring the use of intellectual faculties, imagination, and foresight and sound judgment. Accounting to Koontz, O’Donnell and Weihrich, “planning is an intellectually demanding process; it requires the conscious determination of courses of action and the basing of decisions on purpose, knowledge and considered estimates. Planning is a process, which involves anticipation of future course of events and deciding the best course of action. It is a Continue reading