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
Management Concepts
Principles of Management Control
Management Control Principles The basic principles of management control can be grouped into three categories reflecting their purpose and nature, structure and process. These principles of management control are given below. Principle of Assurance of Objective. The basic purpose of management control is the attainment of objectives does this by detecting failures, in plans. Potential or actual, deviations from plans should be detected enough to permit effective corrective action. Principle of Efficiency of Controls. A management control system should detect and highlight the causes of deviations from plans with minimum possible costs and unwanted consequences. The principle of efficiency is particularly important in control because techniques tend to become costly and burdensome. A manager may become so engrossed in control that he spends more than it is to detect a deviation. Controls which seriously interfere with authority of subordinates or morale of those who execute plans, is inefficient. Principle of Continue reading
Goal-Setting Theory of Motivation
This approach to motivation has been pioneered in the USA by Edwin Locke and his associates in 1960s and refined in 1980s. Goal-setting theory of motivation suggests that managers and subordinates should set goals for an individual on a regular basis, as suggested by Management by Objectives (MBO). These goals should be moderately difficult and very specific and of type that an employee will accept and make a commitment to accomplishing them. Rewards should be tied directly to accomplished goals. When involved in goal-settings, employees see how their effort will lead to performance, rewards and personal satisfaction. Salient features of Goal-setting theory of motivation are as follows: Specific goal fixes the needs of resources and efforts. It increases performance. Difficult goals result higher performance than easy job. Better feedback of results leads to better performances than lack of feedback. Participation of employees in goal has mixed result. Participation of Continue reading
Contingency Approach to Management
The contingency approach to management emerged from the real life experience of managers who found that no single approach worked consistently in every situation. The basic idea of this approach is that number management technique or theory is appropriate in all situations. The main determinants of a contingency are related to the external and internal environment of an organisation. The process, quantitative, behavioral, and systems approaches to management did not integrate the environment. The often assumed that their concepts and techniques have universal applicability. For example the process theorists often assumes that strategic planning applies to all situations; the quantitative experts generally feel that linear programming can be used under all conditions; the behavioral theorist usually advocates participative goal setting for all superior-subordinate pairs; and the system advocates tend to emphasize the need for computerized information flows in all situations. On the other hand practicing managers find out that a Continue reading
The Pros and Cons of Outsourcing
Outsourcing involves assigning some of the business tasks or a department to another business. This is done when a business cannot handle all of its activities internally. They can also do so in search for expertise of a specific task. The businesses that are mostly involved in outsourcing include manufacturing, logistics, customer services, recruitment, web designing, information, content development and technology maintenance among others. The factors that influence decision making on outsourcing includes staff, finances, information characteristics, agreement issues, and vendor issues. Out sourcing involves two businesses which come in to a contractual agreement to exchange services for payment. A business contacts another business to carry out a particular task and in return they pay for the services provided with. Business people do outsource in order to get time to do other significant roles. This saves time and can allow a business person to do other businesses thus increasing his profits. Continue reading
Managing Environmental Uncertainties in Business
Recent years have had a distinctive progressive pace of development, and with such rates of creating innovations, environmental issues have been on the rise. Along with the rapid decrease in ecology quality, many regulations and policies for its preservation are created, which directly affect business enterprises. Therefore, an ability to quickly react to the uprising environmental issues and the potential to solve them with benefits for the company has become a driving factor in the success of corporations. Managers are one of the primary people in enterprises who become affected by environmental uncertainty, as they must be fast to respond to the issues, create new regulations and adjust to current events in no time. When talking about uncertainty, it is hard to collect sufficient information and plan strategies that are undoubtedly effective; therefore, managers face significant challenges while future planning is connected with environmental needs and changes. Each corporation chooses Continue reading