The term ‘non-profit organization‘ refers to government organizations, educational institutions, religious bodies, foundations, libraries, clubs, Government hospitals, and welfare organizations. These organizations exit to render service rather than to earn profits. Their success is also measured primarily by how well they render the service. For example, the purpose of a library is to provide books and a place for reading and reference. Its performance can, therefore, be measured by how well it renders the service to its readers. Non-profit organizations aim at providing the best possible service with the given resources and the managerial decisions are taken accordingly. The objectives of a non-profit organization are less precise, more diverse, and sometimes contradictory. Distinctive Characteristics of Non-Profit Organisations The main difference between profit and non-profit organizations lies in the purpose for which they exist. In addition following differences are found in the characteristics of these two types of organizations: Profit Measure.Continue reading
Management Basics
Organizing Function of Management
According to Haimann, “Organization is the process of defining and grouping the activities of the enterprise and establishing the authority relationship among them.” The mentioned definition makes it clear that on the one hand organization is a process to define and classify the functions to be performed for the attainment of the objectives of the organization, and on the other hand, it is an art to establish sweet relationship among different persons. There are two concept are prevalent about organisation. In the other word, there are two meaning of organization: Organizing as process: According to the first concept of organizing, it has been considered as a process. In the other word, organizing is not function that can be performed at a single stroke, but it is a chain of various functions. It includes getting information about objectives, deciding various activities and grouping them, determining important activities, allowing authority and responsibility,Continue reading
Case Study Analysis Techniques
A case study is a concise description of a situation which exists or a series of events which have taken place in an organization. This description may be drawn from actual events in a particular organization or it may be a fabricated description which draws its inspiration from several parts of the author’s experience. Whatever its source, this description (perhaps with organization charts and tables of data included) is the scenario which you will be asked to analyze. Often these scenarios describe a number of things which have gone wrong or indicate things left undone which should have been done and sometimes illustrate effective and sometimes ineffective practice and management. Usually you will be given questions to answer or a course of action to comment on or you will be invited to make recommendations which have to be supported by argument and analysis. This method of learning from case studiesContinue reading
Management Planning and Control
The essence of the management process is decision-making. Decision making is an unavoidable and continuous management activity. It may be directed towards some specific objectives, or it may result as a reaction of environmental factors as they occur. The decision-making process should be both efficient and effective. It would be effective when management’s objectives are achieved. It is said to be efficient when objectives are realized with the minimum use of resources. The process of decision-making involves two basic management functions of planning and control. Planning Function of Management The decision-making process starts with planning. Planning is a statement of what should be done, how it should be done and when it should be done. It is the design of a desired future state of an entity and of the effective ways of bringing it about. Its basic purpose is to provide guidelines for making decisions. Continue reading
Forms of Business Organisations
A business organization can be formed with certain properties and specific characteristics. Since business organization is an association of persons, the manner of forming and the objectives of the association decide the form of organization. Individuals form an organization because they are unable to achieve their goals individually. An organization provides opportunities to exploit the existing potential of men and materials. It explores the future possibilities of exploiting human and physical resources. Individuals interested in getting benefits out of the present and potential resources form an association, better known as an organization, to attain the group goals. The dynamics of individuals and the organization are used to gain maximum benefits. They work in a particular manner to obtain the objectives. They can form formal or informal organizations. Formal Organizations A formal organization develops in a well-defined system and has specific properties. It bears definite measures of authority, responsibility, obligationContinue reading
Committee Organizational Structure
A committee organization is an association of people set up to arrive at solutions to common problems. The line people are given opportunities to discuss their problems in the committee. The committee organizational structure is not like line or functional organization, but is similar to staff organization. Its decisions are implemented, whereas staff decisions are not necessarily implemented. It is a formal part of the organizational structure wherein the members are specifically mentioned. For example, the Finance Committee will include all the functional managers, viz. Marketing Manager, Production Manager, Personnel Managers, etc. as members, and the Managing Director as the Chairman. It will decide the financial requirements of each and every department. The decisions taken by the committee are followed by the line people, as the committees are representatives of various functional departments. Committee organizational structure provides integrated ideas of various related people of the company. Participative management inContinue reading