Span of management directly affects the number of levels in the organization. Span of management is of two types; Wider span of management and Narrow span of management.  Wider span of management leads to flat organization whereas narrow span of management result in tall organization structure. The principle of span of management does not by itself resolve the conflict between the advantages to tall organization and that of a flat one. Narrow spans lead to many levels in the organization and thus required a larger number of managers. This, in turn, leads to larger expenses in the form of executive remuneration. Expenses are further increased on account of additional clerical and office staff needed as a result of there being large number of managers. The process of control also gets complicated when there are narrow spans and too many levels in the organization structure. Another serious problem in having too many levels in the organization is posed by the practice that communication must flow through proper channels only. The more the levels in the organization through which the communication must passes, the greater will be the danger of its being misunderstood, misinterpreted ...

Traditional organisation theorists developed certain principles of organization structure. These principles are intended for universal application to all enterprises. The most important of these organization structure principles can be listed under the following heads: 1. Division of labour or Specialization The classicists viewed specialization as the basis of efficiency. A group of individuals can secure better results by having division of work. F.W. taylor applied by breaking down jobs into single repetitive tasks performed on specialized tools. At higher levels, however, grouping jobs into manageable units and their co-ordination can pose serious problems. The principle of specializations has been challenged by the behavioralists and others. Fatigue, monotony and boredom are the inevitable outcomes of division of labor. While specializations cause great function interdependency among operatives, it also depersonalizes their activities so that individuals find little meaning in the work. Moreover, functional interdependency among work activities causes strains and tensions. Specialization leaves to a different type of problems at the executive level. It tends to segment the ...

Motivation can be defined as stimulating, inspiring and inducing the employees to perform to their best capacity. Motivation is a psychological term which means it cannot be forced on employees. It comes automatically from inside the employees as it is the willingness to do the work. Process of Motivation Unsatisfied need. Motivation process begins when there is an unsatisfied need in a human being. Tension. The presence of unsatisfied need gives him tension. Drive. This tension creates an urge of drive in the human being an he starts looking for various alternatives to satisfy the drive. Search Behavior. After searching for alternatives the human being starts behaving according to chosen option. Satisfied need. After behaving in a particular manner for a long time then he evaluates that whether the need is satisfied or not. Reduction of tension. After fulfilling the need the human being gets satisfied and his tension gets reduced. For example, if an employee develops a need to earn more, this need will make him restless and he will start thinking how to satisfy his need. To satisfy his need he may think of working hard in organization and get promotion so he ...

The Ohio studies led to two dimensions of leadership behavior-concern for tasks and concern for relations. Almost in the same style, the Michigan University studies made the distinction between job-centered and production- centered leaders. Blake and Mouton rated these concepts in a framework called the Managerial Grid. They interpreted the concepts in a broad way. Blake and Mouton have used "Concern for Production" and "Concern for People'" in their Managerial Grid on horizontal and vertical axes respectively. Managers may be concerned for their people and they also must also have some concern for the work to be done. The question is, how much attention do they pay to one or the other? This is a model defined by Blake and Mouton in the early 1960s.It included Impoverished management Authority-compliance Country Club management Middle of the road management Team management Leadership Grid The Managerial Grid was the original name; the modifications were made by Robert R Blake and Anne Adams McCanse. After the modifications it was named as Leadership Grid. 1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude) In this style, managers ...

There are various methods of classification of management control in Multinational Enterprises (MNEs). By levels of control here it is meant whether the parent / corporate level managers or subsidiary/country-level managers are involved. The former might be called higher level and the later lower level control. Depending on the sphere of focus we have two types of control called Strategic control and Operational control. In the MNE’s context, strategic control is the responsibility of parent and operational control is the preserve of the subsidiary. Another way puts ‘management control, tactical control and transactional control’ as the 3 levels of control respectively carried out by the corporate top management, collectively by corporate & subsidiary management and subsidiary management in the case of MNEs. Of course, whether an MNE’s structure is ethno-centric, geo-centric, multi-domestic/poly-centric or region-centric is another factor that influences the exact distribution of responsibility. The forward looking information is provided by strategic control systems. It is ‘external response’ oriented. It gives managers timely ‘quantitative and qualitative’ ...

Control means, “Some sort of systematic effort to compare current performance to a predetermined plan of objective, presumably in order to take any remedial action required”. This is a very general definition of the term. However, as a management function, it has been defined as “the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of the organization’s goals”. Controlling is tool for achieving organizational goals and activities. Control is management’s planning, implementation, evaluation, and correction of performance to ensure that the organization meets its objectives in the short, medium and long terms. According to Henry Fayol, ‘Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring’. According to EFL Breach, ‘Control is checking current performance against predetermined standards contained in the plans, with a view to ...