Innovation in nowadays is the most important competitive advantage for a company. The future of many businesses depends on their ability to innovate, to be ahead of their competitors. Organisations have to go through a process of practice, mistakes and to bring together different knowledge, skills and ideas to manage innovation process to success. The word innovation comes from the Latin word “innovare”, which means “to make something new”. Innovation is a deceptive thing. People usually relate it to a development of a new or better product or process, but it is only one part of process called innovation. Innovation is a process, which has to be established in the company for continued enhancement. In reality, a view of innovation as a single action can never make the company to succeed in the long run. There are two different types of innovation; radical and incremental. Incremental innovation consists of small Continue reading
Management Concepts
3 Important Roles of Organizational Hierarchy
Hierarchy refers to a system of organization that respects the chain of command whereby each agency is under supervision of a higher office. In many organizations, a group of managers is always above other employees in terms of knowledge and experience and is placed at the top while others follow based on their experience and the understanding of the organizational functions. Hierarchy is mostly present in government and other governmental institutions whereby each unit has its own powers, authority, and levels of management. Based on the chain of command, an individual communicates or reports to the immediate supervisor or the authority above him. Hierarchy was adopted mainly because it allows information flow given the fact that a junior officer cannot surpass the authority above him or her to report to the senior manager, unless it is necessary. Hierarchy plays an important role in any organization because it benefits the company Continue reading
Unemployment – Meaning, Causes and Effects
The economists describe unemployment as a condition of jobless within an economy. Unemployment is lack of utilization of resources and it eats up the production of the economy. It can be concluded that unemployment is inversely related to productivity of the economy. Unemployment generally defined as the number of persons (It is the percentage of labor force depends on the population of the country) who are willing to work for the current wage rates in society but not employed currently. Unemployment reduces the long run growth potential of the economy. When the situation arises where there are more other resources for the production and no man power leads to wastage of economic resources and lost output of goods and services and this has a great impact on government expenditure directly. High unemployment causes less consumption of goods and services and less tax payments results in higher government borrowing requirements. The Continue reading
Perception – Meaning, Definition, Process and Influencing Factors
Meaning and Definition of Perception Perception can be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. Perception is not just what one sees with eyes. It is a much more complex process by which an individual selectively absorbs or assimilates the stimuli in the environment, cognitively organizes the perceived information in a specific fashion and then interprets the information to make an assessment about what people select, organize, and interpret or attach meaning to events happening in the environment. Since perception is subjective process, different people may perceive the same environment differently based on what particular aspects of the situation they choose. For example, some employees may perceive the work place as great if it has favorable working conditions, good pay. Others may perceive it as great if it has challenging assignments and opportunity to grow. Managers Continue reading
Importance of Planning in Management
One of the first and most important functions of management is planning. Planning consists of the process of evaluating the goals of an organization and creating a plan to meet these goals. Both Koontz and O’Donnell state that “planning is deciding in advance on what to do, when and how it will be done, and who will be doing it”. Therefore, planning is the foundation of the management role, and plays a critical part to the success of an organization by determining the means and the methods in order to achieve the objective. A key element and starting point of this process should include the development of a Mission and Vision Statement to which aids in the way an organization functions. The mission statement is the explanation of the organization’s existence, while the vision statement is the motivator in which defines the purpose and direction of the organization for not Continue reading
Delegation of Authority – Concept, Features, Advantages and Barriers
The process of assignment of specific work to individuals within the organization and giving them the right to perform those works is delegation. Delegation of authority is one of the most significant concepts in management practice, which affects managerial functions. Management is the art of getting things done through others and delegation means to get the results through the subordinates. The expansion of business volume and diversification of line of business makes it impracticable to handle all the business by a single manager. Therefore, the concept of delegation of some managerial authority to subordinates comes into practice in present day business organizations. Here, the manager delegates some of his authority to his subordinates. This helps in developing a feeling of dedication to the work among the subordinates. The top level management plays only the role of a supervisor and visits them to provide guidance, suggestions and instructions. It minimizes the Continue reading