Your business guide

 The difference between traditional organizations and contemporary organizations The organizational structure should help the staffs work efficiently, effectively, should build formal relationship between employees, should be useful to divide tasks between employees, to group them according to the tasks assigned . A manager making changes in the structure, developing the structure is the process of organizational designing. Traditional organizational designs, contemporary organizational designs are the two common organizational designing.  A manager selects the structure that best suits the organization considering the six key factors: Work specialization Departmentalization  Chain of command Span of control Centralization  Formation . Traditional organizational designs Traditional organizations and contemporary organizations can be differentiated by the factors of focus, flexibility, the style in which tasks are completed, authority of decision making, and by the ...

  Bases of power  Power is the capability of impacting the conduct of others . Leaders use the power as a tool to get works done, to accomplish goals . Powers can be obtained by a person’s position in an association, by individual’s admirable personality, qualities, interests, social class, and nationality . The bases of power can be divided into 2 categories such as: Positional power  Personal power   1.Positional power  Positional power includes the powers a person holds by being in a respectable position in an organization . P ositional power includes powers such as:                                                                  i.  Legitimate power- Legitimate power is the power obtained by holding a position in an org...

  Bounded rationality Making rational decisions is the process of choosing the best alternative that gives the maximum value. A rational decision maker would understand all the alternatives available, the steps that should be followed to attain the goal.  Bounded rationality is the decision-making approach which says that individuals have limited cognitive ability, resource, and time to make a restricted amount of information on which they try to make rational choices in a complexed organizational environment . Bounded rationality is one of the tools which Herbert A. Simon used to explain the administrative model of decision making. This model portrays how managers face complexed, non-programmed situations by making spontaneous decisions, it also helps to understand human and natural limits on rational decisions of a manager. Bounded rationality is explained as the logical way of describing how rational decisions are made by managers as rational decisions are made with less...

 Charismatic leadership Charismatic leadership is one of the contemporary theories of leadership . It is the kind of leadership which bring high level of commitment, responsibility in the subordinates.  Charismatic leadership is the process of creating positive impact on the employees through energetic, self-assured leadership . A charismatic leader is a self-motivated highly skilled personality who has the capability of influencing the behavior of the subordinates in a way the employees feel the responsibility, work willingly to achieve the targets assigned by the leader of a group, division, or association . Charisma, charismatic leadership are some of the familiar concepts of studies in the recent times. Charisma is the power a leader should have in order to attract, influence others. A charismatic leader should be self-controlled, motivated, should have strong communication skills, should be sensitive towards the feelings of employees to understand their concerns . A ...

  Types of decision Decision is selecting the best alternative between at least two accessible other options. Decision making is the process of understanding various available options, ways to solve a particular issue and choosing the most suitable alternative among the other options . A manager holds the power, responsibility to make decisions, to convey them to the subordinates. A decision of a manager requires high implementation cost, it can influence the whole organization, can have a long-term impact on the organization, or a decision of a manager can be influencing only a few individuals of the organization, require small amount of money to implement, can have a short-term impact on the association .      A management decision can be classified into 2 types such as: 1. programmed decision 2. non- programmed decision  1. programmed decision Programmed decisions are made for cyclical natured problems which are structured. These decisions are made by...

  Barriers to effective communication Communication is a process of transmitting, and understanding of information. A communication can be effective only when the receiver understands the exact information that the sender is willing to convey.  An effective communication should increase commitment in managers, and employees, should reduce misunderstanding in the organizational structure, should help them achieve the organizational goals efficiently.  There could be various barriers that obstruct an effective communication. A barrier can arise in any element of the communicational process, they provide the organization an opportunity to become more effective with the communicational process.  Information being filtered, the receiver being emotionally unstable while receiving the information, excessive information, defensiveness, language, and cultural barricades in the working environment, lack of feedbacks from the receiver, physical disabilities, lack of technolog...

  The Delphi method The Delphi method is one of the commonly used group decision making methods in an organization . The Delphi technique is a research-based iterative cycle that gathers individual opinions, helps with identifying a consensus of expert opinion using a set of questionnaires. This method  is also known as a qualitative forecasting method. The Delphi method was introduced by Norman Dalkey in the 1950’s. This was a project sponsored, used by the military of the U.S.A . The classical Delphi method was developed in order to allow participants express their ideas freely, to distil the perspectives of the members, to give participants a chance to explain, changing their view points with regards to the other members point of view, to quantitatively investigate on the gathered information . The questionnaires for this method are designed to understand complications, discover opportunities, solutions, and for predicting the future of the organization. The questionnai...

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...

Skills and roles of a manager It is important that every manager is skilled to handle dynamic situations, to achieve  organizational goals and objectives by using the scarce resources efficiently.  Robert  L. Katz introduced 3 basic abilities a manager should essentially hold. They are: Technical skills Human skills Conceptual skills  1.Technical skills Technical skills are the skills of a  particular field which can be gained through education, and experience.  These abilities will  generally be more significant for the first-line workers as they directly supervise non-managerial  staffs.  2.Human skills  Human skills are the capability of working together with  people, motivating, coaching, and facilitating them.  All managerial levels of the organizational  structure should hold the human skills because all the levels of managers work with people  3.Conceptual skills Conceptual skills  are the skills to make l...

 BUSINESS ENVIRONMENT It is the surrounding of a business which affects, influences the operations of an organization.  A business environment can be classified into 2 types as the Internal environment, External environment. The internal environment The internal environment of an organization is the factors that are within the firm. These components can directly influence the business, is mostly controllable by the enterprise. The internal environment includes owners, managers, staffs, structure, culture, and resources of the organization. These factors of the internal environment create the strengths, and weaknesses of the firm . The external environment External environment consists external factors which are uncontrollable, influences on the operation of an organization. This environment generates opportunities, threats to the enterprise .   External environment can be divided into 2 types as  Micro/ immediate environment  Macro/ general environment....

  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 ...