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
Management Concepts
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
Four Typologies of Organizational Culture
In organizational culture there are many kind of categorization and typologies have been explained by different scholars of culture. Theses typologies give and over view about the different cultures which exist in organizations. Handy (1985) was the person who discussed how different cultures have their existence in different organizations and within the same organization many diverse cultures can coexist. There are very few organizations exist who have a single culture exists in them. Every individual have its own culture within him and have his own specific personality and culture along with organizational culture. Organizational culture and structure of any organization are connected with each other. In organizations A few subcultures and cultures will be well-suited and other will not be suited. Handy talked about four kinds of eminent cultures and each of these cultures had a linked culture. These cultures are explained below in detail. 1. The Power Culture The Continue reading
Organization Structure and Management Control
Four different types of organization structures have been identified for managing the tasks of the organization. These are (i) a centralized functional structure, (ii) a decentralized divisional structure, (ii) a hybrid (matrix) structure, and (iv) network/coupling structure. An important aspect in the design of management control systems is that it should be linked with responsibility centers. Because of this intimate linkage between the control system and the organization structure, it becomes important to know about key control considerations in the choice of an organization structure. Important parameters on the basis of which choice of the structure can be decided are (i) efficiency and effectiveness, (ii) economies of scale, (iii) problems of coordination, (iv) assignment of profit responsibility, (v) conflict and cooperation. Since efficiency is related to level of activity, as the level of activity increases efficiency also increases. Size permits the division of labor and specialization within Continue reading
Organization Structure – Definition, Determinants, Importance and Types
An organization structure is a set of planned relationships between groups of related functions and between physical factors and personnel required for the performance of the functions. The organization structure is generally shown on the organisation chart. It shows authority and responsibility between various positions in the enterprises by showing who reports to whom. Organization structure lays down the pattern of communication and coordination in the enterprises. Though organization structure is very important, it is not an end in itself. According to Peter F. Drucker, “Organisation is not an end itself, but a means to end of business performances and business results. Organization structure is an indispensable means; and the wrong structure will seriously impair business performance and may even destroy it. Organization structure must be designed so as to make possible the attainment of the objectives of the business for five, ten, fifteen years hence.” Organizing Function of Management Continue reading