Many approaches have been utilized to integrate individual and group goals with overall goals of the organization of an enterprise. Management by Objectives (MBO) is basically a process whereby the superior and subordinate managers of an enterprise jointly (i) identify its common goals, (ii) define each individuals major areas of responsibility in terms of results expected of him, and (iii) use these measures as guides for operating the unit (or enterprise) and assessing the contribution of each of its members. The goals are jointly established by the manager and his subordinates and agreed upon in advance. These goals emphasize either output variables or intervening variables, or some combination of both. At the end of the pre-decided time period, the subordinate’s performance is reviewed in relation to preset goals. Both superior and the subordinate participate in this review/evaluation. If, after evaluation it is found that there is some discrepancy between the Continue reading
Principles of Management
Centralization – Meaning, Advantages and Disadvantages
Centralization of Authority In any business organization, concentration of authority and powers in the hands of top management is referred to as centralization, everything which goes to reduce the importance of subordinates role in an organization is known as centralization. In such a type of office organization, the authority and powers of each and every activity lies in the hands of top few, say office manager and his immediate subordinate, and other subordinates play the second and subsequent fiddles. In fact, they are not to play any role. Instead they asked to work and only work according to the dictates of what the boss wants and orders. Centralization of the powers in respect of planning and control in not a new thing in any management. But centralization refers to the reduction of subordinates to a naught. Thus, treatment accorded to them is only that of a machine. Subordinates are asked Continue reading
Organization – Meaning, Definition, Importance and Principles
Meaning of Organization Organization is the foundation upon which the whole structure of management is erected. Organization is associated with developing an outline where the overall work is divided into manageable components in order to facilitate the achievement of objectives or goals. Thus, organization is the structure or mechanism that enables living things to work together. In a static sense, an organization is a structure or machinery manned by group of individuals who are working together towards a common goal. Examples of organization are Corporations, governments, non-government organizations, armed forces, non-profit organizations etc. The term organization has been used in four different senses; Organization as Framework of Relationships: Organization refers to the structure and interactions among various job positions which are created to realize certain objectives. Organization as a process: Organization is viewed as a dynamic process and a managerial activity which is vital for planning the utilization of company’s Continue reading
Functions of Organizational Culture
Organizational culture is the sum of reflects that gradually formed in the production and management practices, agreed and complied with all staff, with the characteristics of the Organization’s mission, vision, purpose, spirit, values and business philosophy, and the ideas in the production and management practices, management system, the behavior of employees with the external image. In essence, organizational culture is a cultural phenomenon among the enterprises, its appearance is inseparable from the development of the theory and practice of modern enterprise, from the management perspective, organizational culture are the application management tools to achieve management objectives, therefore, organizational culture are not only a cultural phenomenon, but also has a connotation as a management tool. First, the organizational culture is led by a sense of enterprise management, the cultural patterns of pursuit and realization in a certain corporate purposes, from a certain sense, the organizational culture is a culture of enterprise Continue reading
Frederick Taylor’s Principles of Scientific Management
Frederick Winslow Taylor well-known as the founder of scientific management was the first to recognize and emphasis the need for adopting a scientific approach to the task of managing an enterprise. He tried to diagnose the causes of low efficiency in industry and came to the conclusion that much of waste and inefficiency is due to the lack of order and system in the methods of management. He found that the management was usually ignorant of the amount of work that could be done by a worker in a day as also the best method of doing the job. As a result, it remained largely at the mercy of the workers who deliberately shirked work. He therefore, suggested that those responsible for management should adopt a scientific approach in their work, and make use of “scientific method” for achieving higher efficiency. The Frederick Taylor’s principles of scientific management consists essentially Continue reading
Leadership and Management – Differences
A manager may be a leader, a manager may not be a leader, but a leader may emerge who is not a manager. This saying shows that roles of manager and leader not to be connected at all. However, for a business to be effective, managers must learn how to become leaders by developing effective leadership skills. A leader means a person that holds a dominant or superior position within its field, and is able to exercise a high degree of control or influence over others. A leader is one who has followers. Followers follow leaders because they are influenced by the leader’s personality and share belief in the leader’s visions, goals and values. Leaders gain personal power through credibility. They can communicate their beliefs to team members, who understand that these beliefs will not alter or vary because of circumstances and will become the rock on which their working Continue reading