Today’s business environment faces many problems such as exploitation of resources, fraud, unfair trade practices etc. The basic reasons behind these problems are lack of integrity, ethics and core values in business. Integrity, ethics and core values helps to protect the interest of all stake holders, increase the goodwill of the company, earn more profit and minimize the regulations. So integrity, ethics and core values are essential for the survival of a company. So every organisation should have these qualities. This will bring many advantages to the organisations and will help to increase the trust of society and government in the company. Integrity Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one’s actions. Integrity can be regarded as the opposite of hypocrisy, in that it regards internal consistency as a Continue reading
Management Concepts
Attributes of Sound Performance Measurement System
Multinational Enterprises need to measure performance of all its organizational participants/elements and subsidiaries. Efficacy of organizational control depends on efficient measurement of performance. A right selection of a range of performance measures which are appropriate to a particular company/context is needed. This selection ought to be made in the light of the company’s strategic intentions which will have been formed to suit the competitive environment in which it operates and the kind of business that it is. There are at least three major attributes expected of any good performance measurement system. These are: Reliability, Validity and Objectivity. Each characteristic is examined in detail. 1. Reliability Reliability of a measurement mechanism refers to the dependability or consistency of the measures provided by it. It refers to “the accuracy of the data in the sense of their stability, repeatability, or precision” There are two ways of looking at dependability. One is comparability Continue reading
Leader’s Role in Being a Catalyst for Organization Change
It takes considerable amount of effort and time to set up an organization and get into particular mode of operation. In order to sustain and continuously climb up the ladder of growth, companies need to be lean, flexible and ready to change constantly to implement new processes, introduce or close down particular product lines, incorporate faster technologies, make strategic shifts and decisions thus stimulating creativity, learning, diversity and growth. While the change is inevitable and its need being clearly understood, resistance and adverse affects are also likely to emerge. The important factor in execution of a successful change is that it should be properly planned/ focused along with a high degree of commitment Leadership. A Leader for any organization can be identified as a Spark plug who, because of high energy, good communication and motivational skills, and a can-do attitude, helps realizing important objectives. The leader is the catalyst that Continue reading
The Application of Power in Organizations
Personal power is power that resides with an individual, regardless of his or her position in the organization. Someone usually exercise personal power through rational persuasion or by playing of followers identifications with him or her. An individual with personal power often can inspire greater loyalty and dedication in followers than someone who has only position power. The stronger influence from the fact that the followers are acting more from choice than from necessity and thus will respond more readily to request and appeals. Of course the influence of a leader who relies only on personal power is limited, because followers may freely decided not to accept his or her directives or orders. The distinctions between formal and informal leaders are also related to position and personal power. A formal leader will have, at minimum, position power. And an informal leader will similarly have some degree of personal power. Just Continue reading
Process of Team Building
Team building attempts to improve effectiveness of the team by having team members to concentrate on: Setting goals and priorities for the team. Analyzing how team’s goals and priorities are linked to those of the organization. Analyzing how the work is performed. Analyzing how the team is working, and Analyzing the relationships among the members who are performing the job. The process of team building is a collection of steps which lead to a specific change in the approach among people, to make effective teams. Various steps of team building process are not one-shot action, rather, they are repetitive and cyclical. 1. Problem Sensing There are a number of ways in which problems of a team can be obtained. Often the team itself defines which aspects of team building it wishes to work on. This problem can better be identified in terms of what is hindering group effectiveness. At this Continue reading
Knowledge Management Systems: Conditions for Success
Certain factors or concerns also need to be considered in order to make this firm’s investment in Knowledge Management Systems (KMS) worthwhile. There is need for a major transformation in organisational culture to create desire to share, (give and receive). When there is organisational culture barrier, people tend to hoard their knowledge. One of the reasons why employees don’t share knowledge is the belief that knowledge is power and that hoarding it guarantees job security. Employees also tend to believe that there is no credit for knowledge sharing or won’t be able to own it anymore if they share. There might also not be time for knowledge sharing or afraid of making mistakes or being reprimanded. Some employees also do not know how to share knowledge or do not realize that their knowledge is valuable to the organisation. In order to solve these problems, employees need to be educated on Continue reading