Majority of retailers use a form that summarizes the basic budgetary information for a given merchandise grouping during a specified period normally for a period of six months. The retailer must select the control unit for which projections will be made, before making sales estimates. The “control unit” is the merchandising grouping that serves as the basic reporting unit for various types of information namely, past, present and future. The retailer has the choice to estimate future sales for an entire store, for a merchandise division or department, or for an individual product-line or item. The most three acceptable control units can be merchandise groups, merchandise classes and merchandise categories of all these three, experts recommend merchandise categories as the basic control unit as it is generally much easier to aggregate the information than it is to disaggregate information, i.e., breaking down merchandise groups into classes and categories. This attempt increases the accuracy in estimating future sales and to get greater degree of control throughout the entire budgetary process.…Read More »
Posts Selected From the Category "Management Concepts"
Businesses that succeed do so by creating and keeping customers. They do this by providing better value for the customer than the competition. Marketing management constantly have to assess which customers they are trying to reach and how they can design products and services that provide better value (“competitive advantage”). The main problem with this process is that the “environment” in which businesses operate is constantly changing. So a business must adapt to reflect changes in the environment and make decisions about how to change the marketing mix in order to succeed. This process of adapting and decision making is known as marketing planning.
Where does marketing planning fit in with the overall strategic planning of a business?
Strategic planning (which you will cover in your studies of “strategy” is concerned about the overall direction of the business. It is concerned with marketing, of course. But it also involves decision-making about production and operations, finance, human resource management and other business issues. The objective of a strategic plan is to set the direction of a business and create its shape so that the products and services it provides meet the overall business objectives.…Read More »
Stimulus Generalization in Organizations
Stimulus generalization refers to how people recognize the same or similar stimuli in different settings. In other words, it is the process by which they can generalize a contingent reinforcement from one setting to another.
Consider the plant manager of a manufacturing company who has a history of effective troubleshooting. Over the years he has been assigned to several plants, each with a serious operating problem. After successfully dealing with the difficulties, he has always received an extended vacation, a bonus and an increase in his base salary. He has learned the basic contingencies or requirements of reinforcement for his job. The stimulus is the assignment, the response is correcting problems and the consequences are several positive reinforcers. When the manager gets his next assignment, he will probably generalize from his past experiences even though he will be in a different plant with different problems and employees he will know what is expected of him and understand what it takes to be rewarded.…Read More »
Power is easy to feel but difficult to define. It is the potential ability of a person or group to influence another person or group. It is the ability to get things done the way one wants them to be done. Both formal and informal groups and individuals may have power; it does not need an official position or the backing of an institution to have power. Influence can take many forms. One person has influenced another if the second person’s opinions, behavior or perspectives have changed as a result of their interaction. Power is a factor at all levels of most organizations. It can be a factor in almost any organizational decision.
Power and Authority
Sometimes power and authority is used synonymously because of their objective of influencing the behavior of others. However, there is difference between the two. Power does not have any legal sanctity while authority has such sanctity. Authority is institutional and is legitimate. Power, on the other hand, is personal and does not have any legitimacy.…Read More »
Power and politics are inextricably interwoven with the fabric of an organization’s life. In any organization, at any given moment, a number of people are seeking to gain and use power to achieve their own ends. This pursuit of power is political behavior. Organizational politics refers to the activities carried out by people to acquire, enhance and use power and other resources to obtain their preferred outcomes in a situation where there is uncertainly or disagreement. One great organizational scholar, Tushman defined politics, ‘as the structure and process of the use of authority and power to affect definition of goals, directions and the other major parameters of the organization. Decisions are not made in rational or formal way but rather through compromise accommodation and bargaining.’
Techniques of Political Behavior
The most commonly used techniques of political behavior are:
- One technique of political behavior is to control the dissemination of critical information to others. The more critical the information and fewer the people who have it, the stronger is political power base of those who possess these information.
Organizational culture is the set of values that states what an organization stands for, how it operates and what it considers important. Edgar H. Schein defines organizational culture as the pattern of basic assumptions that a given group has invented, discovered and developed while learning to cope with its problems of external adaptation and internal integration.
All the above definitions stress acceptable and unacceptable behavior of its members. For instance, one organization might value solidarity and loyalty to organization more than any other value whereas another organization might stress on good relations with customers. Such values are part of organizational culture in spite of not being formally written like rules and regulations of the organization. They do not usually appear in the organizational training Program and in fact, many organizations have difficulty in expressing their cultural values. However, an organization’s values automatically enter every employee’s personal values and actions over a period of time. Organizational culture has a profound influence on individual employees because it is generally an accepted set of values rather than a written set of rules with which employees might not argue.…Read More »