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
Principles of Management
Difference Between Tall and Flat Organizational Structure
The concept of organization is born when two or more people work together in order to achieve a common goal. Purpose of an organisation is to create responsibilities and positions by which an organisation can carry out the work. Organisation may be formed in different sizes. All people working in the same organisation have their own functions, attitudes and techniques to apply for achieving their common goal. In order to manage and control the resources, an organisation needs to be structured. Organization structure is formal system that makes the organisation to run smoothly and helps to focus the common goals and objectives. It gives a clear idea about the chain of command that need to be prioritized when a problem arise. It also defines what people are responsible in the organisation for different reasons. A solid structure provides the framework to deliver on business strategy. The structure of an organisation Continue reading
Differences Between Managers and Leaders
Quite often leading and managing are considered as synonymous terms. Both require several qualities or traits and both are processes involving interpersonal relations. Both involve setting goals and mobilizing resources. They are complementary qualities inexorably linked to each other, and any attempt to extricate one from the other is impossible. What is the difference between management and leadership? It is a question that has been asked more than once and also answered in different ways. “There is a profound difference between management and leadership, and both are important. To manage means to bring about, to accomplish, to have charge of or responsibility for, to conduct. Leading is influencing, guiding in a direction, course, action, opinion. The distinction is crucial” — Quote from “On Becoming a Leader” by Warren Bennis Some people think of the words Manager and Leader and think they are the same. The two are related, but the Continue reading
Organization Structure and Management Control
Four different types of organization structures have been identified for managing the tasks of the organization. These are (i) a centralized functional structure, (ii) a decentralized divisional structure, (ii) a hybrid (matrix) structure, and (iv) network/coupling structure. An important aspect in the design of management control systems is that it should be linked with responsibility centers. Because of this intimate linkage between the control system and the organization structure, it becomes important to know about key control considerations in the choice of an organization structure. Important parameters on the basis of which choice of the structure can be decided are (i) efficiency and effectiveness, (ii) economies of scale, (iii) problems of coordination, (iv) assignment of profit responsibility, (v) conflict and cooperation. Since efficiency is related to level of activity, as the level of activity increases efficiency also increases. Size permits the division of labor and specialization within Continue reading
Organization Structure – Definition, Determinants, Importance and Types
An organization structure is a set of planned relationships between groups of related functions and between physical factors and personnel required for the performance of the functions. The organization structure is generally shown on the organisation chart. It shows authority and responsibility between various positions in the enterprises by showing who reports to whom. Organization structure lays down the pattern of communication and coordination in the enterprises. Though organization structure is very important, it is not an end in itself. According to Peter F. Drucker, “Organisation is not an end itself, but a means to end of business performances and business results. Organization structure is an indispensable means; and the wrong structure will seriously impair business performance and may even destroy it. Organization structure must be designed so as to make possible the attainment of the objectives of the business for five, ten, fifteen years hence.” Organizing Function of Management Continue reading
Systems Approach to Management
Systems approach to management developed after 1950. Many pioneers during as E.L Trist, AK Ria, F.E. Kast, and R.A Johnsm have made significant contributions to this approach. This systems approach looks upon the management as a ‘System’ of as an organized whole make up of sub-systems integrated into a unity or orderly totality. The attention should be given so overall effectiveness of the system rather than effectiveness of any sub-system if isolation. It took where management process school left off in attempting to unify management theory. It emphasizes the inter-relatedness and inter-dependence of all activities within an organisation. It is based on system analysis. It attempts to identify the nature of relationships of various parts of the system. A system is a set of inter-connected elements or component parts to achieve certain goals. An organisation is viewed by the modern authors as an open system. An organisation as a system Continue reading