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
Management Concepts
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
Different Types of Stakeholders in Business
Stakeholder is a person who has something to gain or lose through the outcomes of a planning process, program or project. Stakeholder Analysis is a technique used to identify and assess the influence and importance of key people, groups of people, or organizations that may significantly impact the success of your activity or project. Stakeholder Management is essentially stakeholder relationship management as it is the relationship and not the actual stakeholder groups that are managed. Stakeholders can be divided into inside stakeholders and outside stakeholders. Inside stakeholders are people who are nearby to an organization and have the strongest or most direct claim on organizational resources: shareholders, executive employees, and non executive employees. Shareholders are the owners of the organization, and, as such, their claim on organizational resources is often careful to the claims of other inside stakeholders. The shareholders’ donation to the organization is to spend money in it Continue reading
Knowledge Management Systems: Costs and Benefits
Knowledge Management Systems (KMS) like any other information systems have its benefits as well as costs, weighing the benefits in relationship with the costs will probably provide a basis for deciding whether to invest in it or not. Costs of Knowledge Management Systems Although knowledge management system is beneficial and important to the organisation, it also involves some cost. These costs vary quite a bit, depending on the size of the organisation, the current level of infrastructure and the scope of knowledge management initiative. Also, the cost depends on whether or not there is an existing infrastructure. The first step in determining the return on investment for a knowledge management project is to deter mine the costs. On the surface, this may seem deceptively simple, but there are costs involved in a knowledge management project that may not be readily obvious to the manager who is not experienced in estimating Continue reading