A highly useful learning concept which is valid for a wide range of situation is the organizational learning curve, a diagrammatic presentation of the amount learned in relation to time. A typical learning curve will show on the Y-axis the amount learnt and the X-axis the passage of time. Characteristics of the Organizational Learning Curve Certain characteristics are common to all learning curves. One such feature is the initial spurt. At the beginning, it is natural that the rate of learning exhibits spurt. Usually, the graph levels off at some stage, indicating that maximum performance has been achieved. Apparently at the beginning of the learning process, the subject is highly motivated and seems to exhibit a significant surge of effort. Many experienced trainers exploit this initial spurt by selecting the most important items to be communicated and presenting them as a package to the students at the beginning of the Continue reading
Principles of Management
The Impact of Organizational Culture on Business Strategy
Organizational culture is an essential aspect to a company that can influence the strategy of the organization. Organizational culture can define as one organization share their own traditions, values, policies and attitudes during their daily operation. Organizational culture is a basement of company strategy. Company can achieve their business goal very easily if they put organizational culture into their business vision and mission; make sure the culture can match with company strategy, in this way company culture can push their business keep going. Each of organization has their unique culture which the company can benefit from it. The culture can give a large effect to employees, even the company’s customers. As long as staffs know about the culture of company, they know the core business of the organizational hence the strategies they make will surround the organizational culture and that will not deviate their organizational goal. On the other hand, Continue reading
Multidivisional Organizational Structure
In Multidivisional Organizational Structure, each business unit is placed in a self-contained division and supplied with all support functions. Thus each part essentially operates separately from the other parts of the company. The office of corporate headquarters is created to control and oversee the divisions. Headquarters also provides corporate support functions, such as finance and R&D. Divisional managers have operating responsibility; corporate managers have strategic responsibility. Each division is treated as a profit center and can adopt the structure and control systems that best serve its strategy. A multidivisional structure has several advantages. Enhanced corporate financial control is one advantage of the multidivisional structure. The profitability of the different divisions is very clear, allowing the corporate staff to readily determine the best resource allocation scheme. Enhanced strategic control is another benefit, because corporate staffs are freed from operating responsibilities, and can concentrate on corporate strategy. The structure overcomes limits to Continue reading
Management Control Process
Controlling function of management can be defined as comparison of actual performance with the planned performance. If there is any difference or deviation then finding the reasons for such difference and taking corrective measures or action to stop those reasons so that future thee is match between actual and planned performance. The meaning of controlling makes it clear that controlling function is undertaken for right and timely implementation of plans. Steps Involved in the Management Control Process Management control process is the continuous and ongoing dynamic process of monitoring performance and taking action to ensure desired results. 1. Setting Up of (target) Standards Standards mean target or the yardstick against which the actual performance is measured. The standards must be achievable, high or very high standards which cannot be achieved are of no use. Standards must be set up keeping in mind the resources of the organization and as far Continue reading
Factors that Contribute to Successful Organizations
An organization is said to be effective when it achieves the expected output as by the management. An effective organization earns profit for investors, offers satisfactory service to clients and has a potential for growth and development. Organizations are able to survive chaotic times due to their adaptability to change. The management which provides good leadership experiences employee retention and the workers are more productive than one with a demoralized workforce. An organization has to facilitate training and continuous learning for employees, the organization has contingency methods of operation that is different situations are handled by the different appropriate ways. An organization has to engage the input of its employees in the decision making. The employees being a valuable asset should be motivated for maximum input. Many studies observe that managers should take cognizance of the different values and beliefs held by employees. There should be no discrimination on gender, Continue reading
Nature and Importance of Managerial Principles by Henri Fayol
Henri Fayol was one of the most influential contributors to modern concepts of management. Fayol has been described as the father of modern operational management theory. Like Socrates, Fayol suggested that management is a universal human activity that applies equally well to the family as it does to the corporation. Fayol’s career began as a mining engineer. He then moved into research geology and in 1888 joined, Comambault as Director. Comambault was in difficulty but Fayol turned the operation round. On retirement he published his work – a comprehensive theory of administration – described and classified administrative management roles and processes then became recognized and referenced by others in the growing discourse about management. He is frequently seen as a key, early contributor to a classical or administrative management school of thought. His theorizing about administration was built on personal observation and experience of what worked well in terms of Continue reading