In any field either business, company or an institution they are usually guided by the principles of customer service. These principles help them improve the services and maintain a good relationship with their customers. Here are some of the principles of customer service that are core in any business or company. Through the core services, customer service techniques will govern the organization of the quality of service. The seven principles of customer service include; speed, accuracy, clarity, transparency, accessibility, friendliness and efficiency. Speed: This has been critical to many organizations. Through speed and responsiveness, it will determine the quality of service provided in an institution. As one may know, the ability to respond to the customer need has an impact on both the customer satisfaction and dissatisfaction. For companies to improve on their customer service, they ensure they have good responsiveness. There are various types of responsiveness which include firstContinue reading
Management Concepts
Factors Affecting Organizational Structure in Multinational Companies
The organization structure is an approach that helps and guides in organizing the employees of the organization into a structured and organized pattern for better coordination and communication. The structure in a multinational company defines the architecture of the business competence, functional relationship and management function. It helps in reducing confusion in the business environment and also supports in carrying out the business function smoothly and efficiently. The organization structure is affected by various internal and external factors which are also known as the organizational environment since organization works around these factors and the environment. The organizational environment consists of all those factors that influences the organizational working and thus can also influence the organizational structure since in each country and geographical areas the organizational environment would change. The external organizational environment that would influence the organizational structure is the economic, political and legal, socio-economic, technological and natural factors. AllContinue reading
Standard Costing as a Control Mechanism
Standard costing is technique of cost planning and control, based on scientific analysis of elements of cost in terms of standard input / output norms and standard rates / price per unit of input. The following process is involved in setting and practicing standard cost. Establish standard cost, component-wise, for each output Measure the actual cost, component-wise, for each output Their comparison with the actual costs and the measurement of variances. The location of responsibility for the variances and the corrective action to be taken. The analysis of variances for ascertaining the reasons for the same. Establishment of a Standard Costing System The installation of Standard Costing System in a manufacturing concern involves the following steps: Standardization of Functions: All activities should be standardized and the technical processes of operations should also be susceptible to planning. Establishment of Cost Center Classification of Accounts: The different accounts can be codified andContinue reading
Attributes of Sound Performance Measurement System
Multinational Enterprises need to measure performance of all its organizational participants/elements and subsidiaries. Efficacy of organizational control depends on efficient measurement of performance. A right selection of a range of performance measures which are appropriate to a particular company/context is needed. This selection ought to be made in the light of the company’s strategic intentions which will have been formed to suit the competitive environment in which it operates and the kind of business that it is. There are at least three major attributes expected of any good performance measurement system. These are: Reliability, Validity and Objectivity. Each characteristic is examined in detail. 1. Reliability Reliability of a measurement mechanism refers to the dependability or consistency of the measures provided by it. It refers to “the accuracy of the data in the sense of their stability, repeatability, or precision” There are two ways of looking at dependability. One is comparabilityContinue reading
Evaluation Concept in Management
Definitions of Evaluation in Management Evaluation is the analysis and comparison of actual progress vis-Ã -vis prior plans. Evaluation is oriented toward improving plans for future implementation to ensure improved performance. Evaluation is part of a continuing management process consisting of planning, implementation, and evaluation. Ideally each of these steps follows the other in a continuous cycle until successful completion of the activity. Evaluation involves comparison of actual performance against benchmarks or standards of performance to establish the extent of fulfillment of goals and identify gaps in performance to suggest remedial courses for ensuring that in the end all ends well, that is fulfillment level is 100%. The goals vary depending on the situation, participants and issues. Evaluation is the systematic and objective assessment of the relevance, efficiency, effectiveness, sustainability, and impact of development interventions or programs. Evaluation is the assessment of how well a project/activity achieved its objectives. Evaluation mayContinue reading
Various Aspects of Business Failure
Business failure occurs due to different reasons. While few firms fail within first year or two of life, few others grow, mature and fail much later. The business failure can occur in a number of ways and also from different reasons. Why Business Firms Fail Let us try understand the different reasons why corporate often fail; An imbalance of skills within the top echelon. A chief executive who dominates a firms operations without regard for the inputs of peers. An inactive board of directors. The board of Directors lack of interest in the financial position of the company may lead to insolvency. A deficient finance function within the firm’s management. The absence of responsibility for the chief executive officer. Apart from the above mistakes the firm usually is vulnerable to several mistakes; Management may be negligent in developing effective accounting system. The company may be unresponsive to change. Management mayContinue reading