In any organization, the focus is based on yielding high profits. The key to this lies in the leader, who in turn inspires the staff. Leadership in an organization is usually classified into different categories based on the style the leader uses. Different leadership styles are used to attain desired goals, but the secret to an organization that is effective in achieving its goals lies in the use of transformational leadership. A leader usually uses power and influence to exercise authority. In transformational leadership, however, the idea is to emphasize influence to manage the teams and bring them aboard to understand the leader’s vision. Transformational leadership can be defined as implementing new ideas through adopting a more flexible and universal method of influencing and continually ameliorating those around them. This type of leadership calls for the leader and the staff to improve one another’s motivation levels. Motivational leaders bravely work towards making Continue reading
Management Concepts
Risk Matrix Approach to Risk Analysis
A risk matrix is defined as a table that is divided into several categories of probability, likelihood, or frequency for its rows, and multiple categories of severity, impact, or consequences for its columns. The constituents of risk ordinarily attest themselves as a hazard; which refers to the likely origin of a harmful outcome and harms; which are the ensuing damages to the environment. It incorporates generally accepted ratings of risk, urgency and priority, with every row-column pair. This is represented by distinct cells which are separately colored, using red, green and yellow colors. Each distinct cell has a different risk rating, for instance, cells colored in red will indicate risks that require an urgent attention, whereas those that are colored in green will indicate those risks that do not require to be dealt with urgently. The yellow colored cells indicate those risks that fall in between the ratings of very urgent and Continue reading
Benefits and Drawbacks of Scientific Management Theory
Management has changed from traditional methods to more modern forms of leadership. The change has been brought by the need to change and to try to make the organizations work better. Different approaches to organizational design can affect the company’s work differently, so the management style should be chosen individually for each case, depending on the organization’s goals. One of the options is scientific management, based on applying scientific theories and principles to design work in organizations. Since the early 20th century, scientific management has been at the forefront of organizational design. The design development was spearheaded by Frederick W. Taylor, who aimed to boost workplace productivity using scientific techniques. Scientific management has substantially influenced work design in contemporary companies, with its virtues and flaws under everyday discussion. The prediction of scientific management is based on the notion that efficiency in the workplace may be increased via scientific methodologies and Continue reading
SMART Goal Setting: Definition and Components
In the pursuit of personal and professional success, individuals often set goals to guide their efforts. However, not all goals are created equal. The concept of SMART goals, which stands for Specific, Measurable, Achievable, Relevant, and Time-bound, offers a structured approach to goal setting that enhances the likelihood of success. Originating from the business management domain, the SMART framework has been adopted across various fields, including education, healthcare, and personal development. By promoting clarity and accountability, SMART goals enable individuals and organizations to systematically track progress and make necessary adjustments. SMART goal-setting was first introduced by Dr. Edwin Locke in the 1960s. According to Locke, setting goals that fit into the SMART criteria provided motivation and empowerment to people, which was crucial to ensure that the goals are achieved. Today, SMART criteria are applied to the goal-setting process in many organizations, regardless of their size and area of business. The Continue reading
Business Failure – Concepts and Prevention Methods
Most of the times, businesses fail to achieve the set objectives. Such a scenario comes about perhaps because the business does not implement the right strategies or offers customers a product that is not in demand. In addition, a business may fail because it is not located in a suitable environment. However, no matter what the causes of business failure are, many people tend to embrace different ideas on how failure is good for a business. This has been adopted by many people such that even organizations are adopting strategies that advocate for failure in business with the belief that failure is a step to the achievement of any set goals and objectives. The assertion that failure and fast failure is a good thing has received different opinions. Several people argue that failure in a business is a good thing while others are for the belief that failure is bad Continue reading
What is Feasibility Analysis in Business? Explained
Preliminary forecasting and research are an integral part of any competent business strategy. One of the most multipurpose types of provisional study that covers all layers of the upcoming business project activities is a feasibility analysis. Feasibility analysis is the process of confirming that a strategy, plan or design is possible and makes sense. Novice entrepreneurs and experienced business people begin the practical implementation of their business ideas, primarily with this specific assessment technique. Nature and Objectives of the Feasibility Analysis First of all, the feasibility analysis is a method of evaluative research. Studying various aspects of the future business project from the financial to the legal component, the specialist determines the degree of the feasibility of the practical implementation of an entrepreneurial idea. A feasibility analysis evaluates the project’s potential for success; therefore, perceived objectivity is an essential factor in the credibility of the study for the potential investors Continue reading