Organizations, by definition, are entities with boundaries. External boundaries separate a company from its suppliers and customers and define its geographic reach. Internal boundaries separate the departments between each other, management from employees. Such lines of differentiation have been necessary. Different departments in the organization work towards the common goal the overall success of the business. However, companies that thrive within the new environment of global competition, rapidly changing technologies, and shifting markets are characterized by not having many boundaries. The new model of success is defined as “boundaryless organization”, a term created by Jack Welch during his term as CEO of GE. A boundaryless organization is a contemporary approach in organizational design. In a boundaryless organization, the boundaries that divide employees such as hierarchy, job function, and geography as well as those that distance companies from suppliers and customers are broken down. A boundaryless organization seeks to remove vertical, Continue reading
Management Basics
Concept of Power in Management
Power in Management Power is easy to feel but difficult to define. It is the potential ability of a person or group to influence another person or group. It is the ability to get things done the way one wants them to be done.Both formal and informal groups and individuals may have power; it does not need an official position or the backing of an institution to have power. Influence can take many forms. One person has influenced another if the second person’s opinions, behavior or perspectives have changed as a result of their interaction. Power is a factor at all levels of most organizations. It can be a factor in almost any organizational decision. Power and Authority Sometimes power and authority is used synonymously because of their objective of influencing the behavior of others. However, there is difference between the two. Power does not have any legal sanctity while Continue reading
What is Research and Development (R&D)?
For a new business initiative it is essential to recognize the development stages through which the enterprise is likely to pass, and prepare for the issues and challenges which will be faced. For a business unit within a corporate it is important to recognize that the same development process applies — often with the same challenges! However, these challenges are sometimes eased by the protection of an established corporate parent able to soften the impact of negative cash flow and poor profitability at the relevant stages. Creativity becomes the responsibility of Research and Development (R&D), which is staffed by specialists in visualizing and realizing marginal or major product changes. Ever since companies such as Dupont and Bell Labs first took, and successfully traveled along, this road, setting up a separate R&D group has been a popular way to enhance value at the concept stage. There are many ways of distinguishing Continue reading
Organizational Architecture
By organizational architecture, we mean the entire organization, including organizational structure, control systems and incentives, processes, organizational culture and people. In this case, there are three conditions to be fulfilled by an organization to make the organization profitable. First, various elements of the organization shall be parallel to each other. Second, organizational strategy should always be consistent with the organizational structure, and finally, strategies and organizational structure must be consistent with the competitive conditions prevailing in the firm’s market that are the strategy, architecture and competitive environment. As noted above, the organizational architecture is the totality of the organization itself which consists of various components. The components are the structure, control systems and incentives, processes, organizational culture and people. The organizational structure is a formal organizational structure used to manage a firm. Control system is the system used to measure the performance of managers and units while the incentives Continue reading
Analysis of Problems in Management Case Studies
The case can be analysed from different points of view. Usually there are four parties involved in the case, viz., the proprietor or top management, the middle management departmental heads, the employees or workers and finally the society in general (it includes consumers, distributors, investors, potential employees and those who are directly or indirectly affected by the organization), which is mostly disguised. While analysing and suggesting solutions, the student should try to look at the case from these different points of view and try to pin point violation of rules, regulations, code of conduct or precedents in vogue. The solution to be suggested must be in the larger interests of safeguarding the provisions of laws, code of conduct, rules and regulations to restore the normal positron. The solution should be in the interests of the organization, the weaker sections of the organization and society in general. While analyzing the case, Continue reading
Leadership vs. Management: Understanding the Differences
The difference between leader and manager can be summarized this way: “When you are a leader, you work from the heart. As a manager, you work from the head.” Although it is probably more complex than that, the point to remember is the difference between what you do as a leader and what you do as a manager-and the constant need to be able to do both. Furthermore, the head and heart need to be partners, not independent operators. A manager focuses attention on efficiency, effectiveness, and making sure the right things happen at the right time. For instance: You are in a manager role when you set performance objectives with staff, prepare budgets, review cash flow projections, develop action plans, and evaluate programs or fund raising strategies or any other aspect of the company. Managing may also include doing hundreds of other tasks that require focused and logical attention Continue reading