Emotional Intelligence was first described by Daniel Goleman, PhD, in the Harvard Business Review. Dr. Goleman has described many important scientific discoveries about emotions and human behavior in his book, “Emotional Intelligence.” The book organizes the information into a description of how emotion drives behavior, and describes intelligent ways of managing both. According to Goleman, people who know and monitor their own feelings and recognize and deal with the feelings of others, have advantages in all areas of life, but those who cannot get a control over their emotional lives battle constantly and this prevent them to produce continued work and clear thoughts. He has identified a set of competencies that differentiate individuals with Emotional Intelligence. Goleman’s Model: Four Components of Emotional Intelligence Emotional Intelligence consists of two kinds of abilities. The vertical axis describes awareness vs. behavior. “What You See” (left column) is the ability to recognize and understand Continue reading
Modern Management Approaches
What is a Lean Supply Chain?
A supply chain is a network of facilities, functions and activities that are involved in fulfilling customer demand. Supply chain is the network of organisations that are involved through the upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hand of the ultimate customer. The coordination within the entire chain is therefore very important. The supply chain covers activities on the business process, procurement, production, inventory carrying, storage, handling and distribution within an organisation. Supply Chain Management is therefore, the integration of key business processes across the supply chain for the purpose of adding value for customers and stakeholders. The size of the business determines the extent of Supply Chain Management it will get itself involved in. Companies invest heavily in Supply Chain Management to give their customers value for their money since supply chain management is Continue reading
Economic Value Added (EVA) – Definition, Calculation and Implementation
Economic Value Added (EVA) is a value based financial performance measure, an investment decision tool and it is also a performance measure reflecting the absolute amount of shareholder value created. It is computed as the product of the “excess return” made on an investment or investments and the capital invested in that investment or investments. “Economic Value Added (EVA) is the net operating profit minus an appropriate charge for the opportunity cost of all capital invested in an enterprise or project. It is an estimate of true economic profit, or amount by which earnings exceed or fall short of the required minimum rate of return investors could get by investing in other securities of comparable risk.” Economic Value Added (EVA) is a variation of residual income with adjustments to how one calculates income and capital. Stern Stewart & Co., a consulting firm based in New York, introduced the concept on Continue reading
Concept of Organizational Climate
Organizations are social systems. Organizations combine science and people, technology and humanity. It is not possible for every organization to have the same type of technology and people and so the organizations differ in their characteristics and internal environment. The internal environment of an organization may be called the organizational climate. Organizational climate, a guide for dealing with people serves as a major influence on motivation and productivity of individuals and total work force. Organizational climate may be noted as the ‘personality’ of an organization as conceived by its employees. The organizational climate usually has a major influence on motivation, productivity and job satisfaction. The organizational climate is the major motivating factor responsible for satisfaction and dissatisfaction of employees in an organization and affects the quantum of employees’ turnover and satisfaction. It refers to the entire social system of a working group. Campbell defines organizational climate as a “set of Continue reading
Risk Management in Business
Kaplan and Garrick (1981, p. 12) provide a simple equation for risk, which is “risk = uncertainty + damage”. They believe that it is irrelevant as to what context risk exists in, and that the same equation can always be used to identify and manage risk. However, risk can still be categorized differently depending on what facet of the organization it is affecting. Before a risk management strategy can be decided upon, the risk event must first be identified. An organization should conduct three steps before deciding on the best risk management strategy to use. As risk management can use a substantial amount of resources, clarification and direction should be decided upon before conducting risk management. The three factors are; Identification of the risk: The organization should first review all of the possible risk sources. Furthermore, they could use a risk assessment tool to identify the risk event that may Continue reading
Blue Ocean Strategy – Summary and Examples
Strategy involves standing out from the competition and making choices that give the company a unique and valuable position by offering distinctive products and services. Competitive advantage and profitability can be achieved simultaneously by approaches that create consistent internal synergies and combine a company’s operational activities efficiently. Strategies are formed at various levels of the organization. However, a typical organizational structure incorporates strategies at 3 specific levels: corporate, business and functional. Corporate strategy defines a company’s holistic growth and management direction pertaining to its various businesses, products and services. Business strategies, on the other hand, are established at the divisional levels and typically focus on enhancing the strategic business unit’s competitive position in its industry. Functional strategies aim to maximize resource productivity and are typically set by functional departments within each SBU to improve competencies and performance. The profitability of a company depends on three primary factors which include the Continue reading