In such a competitive environment, the organizations have to continuously provide quality products, better services and need to bring innovation to stay in the business and generate profits. To conduct such activities, efficient and empowered employees are essential. In the past, the authority was not delegated to the employees and it centered on the managers who were responsible for making all the decisions in the interest of the organizations. This had limited the creativity to show up since the employees were not able to express or share their ideas. Empowerment in the recent years has been considered as the most important factor that contributes to the success of the organization. The creative energy and potentials of employees benefits the shareholders, suppliers and customers as well. Empowerment means delegation of decision making authority when there is a need to take action which is important for both the managers and employees. Following Continue reading
Management Concepts
The Impact of Demographic Characteristics and Cultural Diversity on Behaviour within a Group
Groups can become a high performance team by following organizational goals and strategic planning, while demographic characteristics and cultural diversity can influence a team in many ways. Cultural diversity and demographic characteristics can help achieve goals and people should be aware how they can contribute to reaching goals in an organization. This article will discuss the impact of demographic characteristics and cultural diversity on behavior within a group, and how individuality will sometimes contribute to detract from high-performance in teams. Numerous attempts have been made by several organizations in order to gain competitive edge over their competitors through management concepts and practices. In order to respond to globalization, majority of organizations are turning to modern, more productive ways of conducting business, such as effective organizational structures, greater support from technology, and more team orientated environments. Indeed, a team is where combined employees apply their skills and abilities together in order Continue reading
Decentralization of Authority
By decentralization of authority we mean dispersal of decision-making authority at various levels in the organization. In a centralized set-up, decision-making authority is concentrated at the top-level of the management, whereas in the decentralized set-up, many important decisions are made at the lower level also. The most significant feature of decentralization of authority is that most of the decisions made at the lower level do not need approval of the seniors. This means greater freedom is given in decision-making to lower level managers and supervisors in the organization. Factors Determining the Degree of Decentralization Importance and significance of the decision: One of the important factors determining the degree of decentralization of authority is costliness of the decision. Normally, decisions which are costly in terms of money value involved or in terms of factors like goodwill and image of the establishment, employee morale or motivation tend to be centralized at the Continue reading
The Impact of Bureaucratic Structure in Organizations
A bureaucracy is a form of organisation based on logic, order, and the legitimate use of formal authority. Bureaucracies are meant to be orderly, fair, and highly efficient. Max Weber, a German theorist, was the first person to introduce many of the concepts of bureaucracy. During the 18th and 19th century period many employees worked only for themselves and in a workplace environment that was primarily focused on getting the job done in whichever way possible unconcerned with efficiency. Weber’s idea was to use regulation by rules, policies, supervision, reward systems and other mechanisms to make sure that the behavior and standards of the employees are always met and making the contemporary workplace more organized. The six key principles of bureaucracy that Weber identified were; division of work, hierarchy, promotions, record-keeping, business as a separate legal entity and rules and regulations. Many businesses today have benefited from Weber’s work. Division Continue reading
Difference Between Authority and Power
Authority and Power Authority may be defined as the right to guide and direct the actions of others and to secure from them responses which are appropriate to the attainment of the goals of the organization. According to Barnard, ”Authority is the character of communication(order) in a formal organization by virtue of which it is accepted by a contributor to, or member of the organization as generating the action he contributes, that is, as governing or determining what he does or is not to do so far as the organization is concerned.” Power refers to the ability or capacity to influence the behavior or attitudes of other individuals. A manager’s power may be considered as his ability to cause subordinates to do what the manager wishes them to do. Power is an important means to enforce obedience to the rules, regulations and decisions of the organization. Power may be Continue reading
Advantages and Disadvantages of Organizational Change
Organizational change is an essential part of today’s globalized work life. In modern’s economy, teams and organisations face rapid change like never before. Globalization has not only boosted the markets and opportunities for more development and profit, it also provides opportunities for organisational members to process. However, in general, change processes make demands on both employees and management, regardless of the content of the change process. Facing of the tide of globalization, one of the dominant disputes that human resource professional’s face is what method to improve organizational competitive advantage in the hastily changing environment. Organisational change come about multiple reasons, it is undertaken to ameliorate the accomplishment of that particular organization or a portion of the organization, for instance, a process or team. For organisations to be able to prosper, it is essential for them to go through an important alteration at different sections during their growth. Significant organizational Continue reading