Management Basics

3 Common Types of Organizational Structure

Organizational structure is the internal, formal framework of a business that shows the way in which management is linked together and how the authority is transmitted.  It is basically a framework used to describe the hierarchy in an organisation. Every business needs to have their own organizational structure as it helps in identifying the job at each level of an individual followed by its functions and it also assists in obtaining their own goals for development. There is a need for every type of organisation to have their own structure specially when it comes to large enterprises as it becomes difficult activities of the various departments and functions.… Read the rest

Abey Francis

Six Elements of Organizational Structure

An organizational structure is a diagram displaying the hierarchical arrangement of lines of authority, roles and duties within an organisation and how they relate to one another. A structure is dependent upon the objectives and strategy of which the organization is focussed on.

There are six basic elements of an organizational structure:

  1. Specialisation
  2. Departmentalisation
  3. Chain of Command
  4. Span of control
  5. Centralisation and Decentralisation
  6. Formalisation

Work specialization gives employees specific duties and roles they are expected to perform within the company, factoring in their qualifications and skills. Having descriptions of duties for staff members helps the organisation to fully meet the workforce needs and to ensure there are no unnecessary duplications within roles.… Read the rest

Abey Francis

Morale – Definition, Characteristics and Significance

Morale is the term usually applied to armed forces during wartime and to sports and athletic teams. It refers to team spirit and co-operation of people for a common purpose. Its importance has been realized by the management only in recent years. It is felt by the management that if the morale of the employees is high, production would be higher and vice-versa.

Meaning and Definitions of Morale

Morale represents the attitudes of individuals and groups in an organisation towards their work environment. Morale is an indicator of the attitude of employees towards their jobs, superiors and their organisational environment. It is a collection of the employees’ attitude, feelings and sentiments.… Read the rest

Abey Francis

Characteristics of Successful Teams

A team can be said to be a group of people working together to achieve a goal. It can also be seen “as a limited number of people who have shared objectives at work and who co-operate, on a permanent or temporary basis, to achieve those objectives in a way that allows each individual to make a distinctive contribution”.

In order team to be effective, it should have certain characteristics, listed below

  • Sponsor: In order to have effective liaison with the quality council, there should be a sponsor. Preferably the sponsor is a member of the quality council, thereby providing organizational support.
… Read the rest
Abey Francis

Business expansion and it’s forms

Expansion

Growth is always essential for the existence of a business concern. A concern is bound to die if it does not try to expand its activities. There may be a number of reasons which are responsible for the expansion of business concern. Predominant reasons for expansion are economic but there may be some other reasons too. Following are the reasons for expansion.

1.     Existence: The existence of the concern depends upon its ability to expand. In a competitive world only the fittest survives. The firm need to control its costs and improve its efficiency so that it may be achieved if the activities of the firm are expansion is essential for the existence of the firm otherwise it may result into failure and may be out of business.… Read the rest

Abey Francis

Delegation of Authority – Concept, Features, Advantages and Barriers

The process of assignment of specific work to individuals within the organization and giving them the right to perform those works is delegation. Delegation of authority is one of the most significant concepts in management practice, which affects managerial functions. Management is the art of getting things done through others and delegation means to get the results through the subordinates. The expansion of business volume and diversification of line of business makes it impracticable to handle all the business by a single manager. Therefore, the concept of delegation of some managerial authority to subordinates comes into practice in present day business organizations.… Read the rest

Abey Francis