This blog will help you with understanding simple key terms that you will be using in a daily basis in every business.
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CHAIN OF COMMAND This is one of the principles that can be explained through an organizational structure. It shows the unbroken way of authority that flows from the top-level management to the low-level management of an organization. A chain of command should be effective for communicating with the employees. It should give a clear picture to the workers on what decisions they can make on their own, the situations they should follow the commands of their supervisors. The chain of command helps us to understand that every employee should be accountable to their immediate supervisor. This is also used for creating specialized workers as it helps to separate works according to the organizational structure and assigning, commanding the workers to do certain tasks. A good chain of command also improves the responsibilities of workers as it exhibits the order of authority and power of a certain position in the organizational structure.
Hawthorne study The Hawthorne study is a well-defined assessment which is useful for many experiments in sociology. This exploratory and social examinations were led by Elton Mayo during the years of 1924-1932 at Western Electric company’s Hawthorne works in Chicago. The basic purpose of Mayo was to examine how various factors of the working environment such as circumstances of breaks, lighting of the workplace, length of a working day impact on the efficiency of a worker. The Hawthorne experiment drew out that productivity of a worker does not only depend on the financial compensation paid to them, that productivity of staffs depends majorly on the satisfaction of employee. Illustrative experiments, relay assembly test room experiments, mass interview program, bank wiring test room experiments were used to to find out the facts which bring fluctuation in workers productivity. Illustrative experiments: Illustrative experiments are a study which was conducted to find ou...
THE MANAGEMENT BY OBJECTIVES The management by objectives (MBO) cycle is a strategic approach introduced for management to work with their subordinates in a joint effort to magnify the performance of a business organization. This approach was introduced by Peter Drucker in 1954, and then was additionally evolved by numerous theoreticians like Douglas McGregor, George Odiorne, and John Humble. (Thomson, 1998) . MBO is a process or a framework in which subordinates sit together with their managers to engage in defining their objectives, choosing their strategies to achieve them within a set time period, helps to encourage the subordinates, to identify their personal strengths and weaknesses, bring commitment and responsibility in them. Which will impact on staffs effectively working towards achieving the organizational goals and objectives . It is a goal-directed philosophy which helps to estimate the budget of functions of organizations, helps to build ...
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