Tag: Meaning

Meaning!

What is Meaning? What is meant by a word, text, concept, or action? Implies or explicit significance. Important or worthwhile quality; purpose. A definition of any word or thing. For example, What is a Life? The condition that distinguishes animals and plants from inorganic matter, including the capacity for growth, reproduction, functional activity, and continual change preceding death.

The Word, A single distinct meaningful element of speech or writing, use with others (or sometimes alone) to form a sentence and typically show with a space on either side when written or printed. Mean information is that which informs, it is the answer to a question of some kind. It is thus related to data and knowledge, as data represents values attributed to parameters, and knowledge signifies an understanding of real things or abstract concepts.

  • Concepts of Management

    Concepts of Management:

    The term management has been interpreted in several ways; some of which are given below:

    Management as an Activity:

    Management is an activity just like playing, studying, teaching etc. As an activity, management has been defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group.

    The activities of management are:

    • Interpersonal activities
    • Decisional activities
    • Informative activities

    Management as a Process:

    Management is considered a process because it involves a series of interrelated functions. It consists of getting the objectives of an organization and taking steps to achieve objectives. The management process includes planning, organizing, staffing, directing and controlling functions.

    Management as a process has the following implications:

    (i) Social Process: Management involves interactions among people. Goals can be achieved only when relations between people are productive. The human factor is the most important part of the management.

    (ii) Integrated Process: Management brings human, physical and financial resources together to put into the effort. Management also integrates human efforts so as to maintain harmony among them.

    (iii) Continuous Process: Management involves continuous identifying and solving problems. It is repeated every now and then till the goal is achieved.

    (iv) Interactive process: Managerial functions are contained within each other. For example, when a manager prepares plans, he is also laying down standards for control.

    Management as an Economic Resource:

    Like land, labor, and capital, management is an important factor of production. Management occupies the central place among productive factors as it combines and coordinates all other resources.

    Management as a Team:

    As a group of persons, management consists of all those who have the responsibility for guiding and coordinating the efforts of other persons. These persons are called as managers who operate at different levels of authority (top, middle, operating). Some of these managers have the ownership stake in their firms while others have become managers by virtue of their training and experience. Civil servants and defense personnel who manage public sector undertakings are also part of the management team. As group managers have become an elite class in society occupying positions with enormous power and prestige.

    Management as an Academic Discipline:

    Management has emerged as a specialized branch of knowledge. It comprises principles and practices for effective management of organizations. Management has become as a very popular field of study as is evident from the great rush for admission into institutes of
    management. Management offers a very rewarding and challenging career.

    Management as a Group:

    Management means the group of persons occupying managerial positions. It refers to all those individuals who perform managerial functions. All the managers, e.g., chief executive (managing director), departmental heads, supervisors and so on are collectively known as
    management.

    For example, when one remarks that the management of Reliance Industries Ltd. is good, he is referring to the persons who are managing the company. There are several types of managers which are listed as under.

    1. Family managers who have become managers by virtue of their being owners or relatives of the owners of a company.
    2. Professional managers who have been appointed on account of their degree or diploma in management.
    3. Civil Servants who manage public sector undertakings.

    Managers have become a very powerful and respected group in modern society. This is because the senior managers of companies take decisions that affect the lives of a large number of people. For example, if the managers of Reliance Industries Limited decide to expand production it will create the job for thousands of people. Managers also help to improve the social life of the public and the economic progress of the country. Senior managers also enjoy a high standard of living in society. They have, therefore, become an elite group in the society.

    Question & Answers:

    • Write Concepts of Management?
    • Write Basic Concepts of Management?
    • What is Concepts of Management?
    • What is Process in Management?

  • Many Definitions of Management

    Definitions of Management:

    It is very difficult to give a precise definition of the term ‘management’. Different scholars from different disciplines view and interpret management from their own angles. The economists consider management as a resource like land, labor, capital and organization. The bureaucrats look upon it as a system of authority to achieve business goals. The sociologists consider managers as a part of the class elite in the society.

    The definitions by some of the leading management thinkers and practitioners are given below:

    (i) Management consists in guiding human and physical resources into dynamic, hard-hitting organization unit that attains its objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering the service. —Lawrence A. Appley.

    (ii) Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated objectives. —Henry L. Sisk.

    (iii) Management is principally the task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective. —James L. Lundy.

    (iv) Management is the art and science of organizing and directing human efforts applied to control the forces and utilize the materials of nature for the benefit of man. —American Society of Mechanical Engineers.

    (v) Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. —Harold Koontz and Cyrill O’Donnell.

    (vi) Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. —F.W. Taylor.

    (vii) To manage is to forecast and to plan, to organize to command, to coordinate and to control. —Henry Fayol.

    (viii) Management is the function of executive leadership anywhere. —Ralph C. Davis.

    (ix) Management is concerned with seeing that the job gets done; its tasks all center on planning and guiding the operations that are going on in the enterprise. —E.F.L. Breach.

    (x) Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources. —George R. Terry.

    (xi) Management is guiding human and physical resources into dynamic organizational units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering services. —American Management Association.

    (xii) Management is a multi-purpose organ that manages a business and manages Managers and manages Workers and work. —Peter Drucker.

    Question & Answers:

    • Write Definitions of Management?
    • Write Definitions of Management by Writer?
    • Write Basic Definitions of Management?
    • What is Definitions of Management?

    Note: Every Definition wrote by the different writer!

  • What is Risk Management?

    What is Risk Management?

    Risk Management: What is Risk? A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is called organization Risk. In other words, Risk is defined as an emergency situation which disturbs the employees as well as leads to instability in the organization. Risk affects an individual, group, organization or society on the whole.

    Know and Understand the Risk Management.

    Definition of Risk management: The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks. An organization may use risk assumption, risk avoidance, risk retention, risk transfer, or any other strategy (or a combination of strategies) in proper management of future events.

    Characteristics of Risk:

    • The risk is a sequence of sudden disturbing events harming the organization.
    • Risk generally arises on short notice.
    • Risk triggers a feeling of fear and threat amongst individuals.

    Risk can arise in an organization due to any of the following reasons:

    • Technological failure and Breakdown of machines lead to Risk. Problems in the internet, corruption in the software, errors in passwords all result in Risk.
    • Risk arises when employees do not agree with each other and fight amongst themselves. Risk arises as a result of the boycott, strikes for indefinite periods, disputes and so on.
    • Violence, thefts, and terrorism at the workplace result in organization Risk.
    • Neglecting minor issues, in the beginning, can lead to major Risk and a situation of uncertainty at the workplace. The management must have complete control of its employees and should not adopt a casual attitude at work.
    • Illegal behaviors such as accepting bribes, frauds, data or information tampering all lead to organization Risk.
    • Risk arises when the organization fails to pay its creditors and declares itself a bankrupt organization.

    The art of dealing with sudden and unexpected events which disturb the employees, an organization as well as external clients refer to Risk Management.

    The process of handling unexpected and sudden changes in organizational culture is called Risk management.

    Need for Risk Management:

    • Risk Management prepares individuals to face unexpected developments and adverse conditions in the organization with courage and determination.
    • Employees adjust well to the sudden changes in the organization.
    • Employees can understand and analyze the causes of Risk and cope with it in the best possible way.
    • Risk Management helps the managers to devise strategies to come out of uncertain conditions and also decide on the future course of action.
    • Risk Management helps the managers to feel the early signs of Risk, warn the employees against the aftermaths and take necessary precautions for the same.
    What is Risk Management
    What is Risk Management? #Pixabay.

    Essential Featured of Risk Management:

    • Risk Management includes activities and processes which help the managers as well as employees to analyze and understand events which might lead to Risk and uncertainty in the organization.
    • Risk Management enables managers and employees to respond effectively to changes in the organizational culture.
    • It consists of effective coordination amongst the departments to overcome emergency situations.
    • Employees at the time of Risk must communicate effectively with each other and try their level best to overcome tough times. Points to keep in mind during Risk
    • Don’t panic or spread rumors around. Be patient.
    • At the time of Risk, the management should be in regular touch with the employees, external clients, stakeholders as well as media.
    • Avoid being too rigid. One should adapt well to changes and new situations.

    Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals.

    Risks can come from various sources including uncertainty in financial markets, threats from project failures (at any phase in design, development, production, or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. There are two types of events i.e. negative events can be classified as risks while positive events are classified as opportunities.

    Several risk management standards have been developed including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards. Methods, definitions, and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety.

  • Types of Business

    Types of Business:

    There are three major types of businesses:

    1. Service Business

    A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products.

    Examples of service businesses are schools, repair shops, hair salons, banks, accounting firms, and law firms.

    1. Merchandising Business

    This type of business buys products at wholesale price and sells the same at retail price. They are known as “buy and sell” businesses. They make the profit by selling the products at prices higher than their purchase costs.

    A merchandising business sells a product without changing its form. Examples are grocery stores, convenience stores, distributors, and other resellers.

    1. Manufacturing Business

    Unlike a merchandising business, a manufacturing business buys products with the intention of using them as materials in making a new product. Thus, there is a transformation of the products purchased.

    A manufacturing business combines raw materials, labor, and factory overhead in its production process. The manufactured goods will then be sold to customers.

    Hybrid Business

    Hybrid businesses are companies that may be classified in more than one type of business. A restaurant, for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).

    Nonetheless, these companies may be classified according to their major business interest. In that case, restaurants are more of the service type – they provide dining services.

    Forms Types of Business Organization:

    These are the basic forms of business ownership:

    1. Sole Proprietorship

    A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership.

    The owner faces unlimited liability; meaning, the creditors of the business may go after the personal assets of the owner if the business cannot pay them.

    The sole proprietorship form is usually adopted by small business entities.

    1. Partnership

    A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits of the business among themselves.

    In general partnerships, all partners have unlimited liability. In limited partnerships, creditors cannot go after the personal assets of the limited partners.

    1. Corporation

    A corporation is a business organization that has a separate legal personality from its owners. Ownership in a stock corporation is represented by shares of stock.

    The owners (stockholders) enjoy limited liability but have limited involvement in the company’s operations. The board of directors, an elected group of the stockholders, controls the activities of the corporation.

    In addition to those basic forms of business ownership, these are some other types of organizations that are common today:

    Limited Liability Company:

    Limited liability companies (LLCs) in the USA, are hybrid forms of business that have characteristics of both a corporation and a partnership. An LLC is not incorporated; hence, it is not considered a corporation.

    Nonetheless, the owners enjoy limited liability like in a corporation. An LLC may elect to be taxed as a sole proprietorship, a partnership, or a corporation.

    Cooperative:

    A cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or unincorporated.

    Some examples of cooperatives are water and electricity (utility) cooperatives, cooperative banking, credit unions, and housing cooperatives; This is simple types of business read and understanding, around world many many types of business run.

  • What is a Business? Introduction, Meaning, and Definition

    What is a Business? Introduction, Meaning, and Definition

    A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Businesses as a form of economic activity are prevalent in capitalist economies, where most of them are privately own and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be social non-profit enterprises or state-owned public enterprises charged by governments with specific social and economic objectives.

    What is a Business? Introduction, Meaning, and Definition.

    Businesses owned by multiple individuals may form an incorporated company or jointly organized as a partnership. Countries have different laws that may ascribe different rights to various business entities.

    An organization or economic system where goods and services are exchanging for one another or money. Every enterprise requires some form of investment and enough customers to whom its output can sale consistently to make a profit. Businesses can privately own, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while mom-and-pop catering businesses a private enterprise.

    An enterprise is an organization or enterprising entity engaged in commercial, industrial or professional activities. A company transacts enterprise activities through the production of a good, offering of a service or retailing of already manufactured products. An enterprise can be a for-profit entity or a nonprofit organization that operates to fulfill a charitable mission.

    Nature:

    The term business comes from busyness or the state of being busy—any ac­tivity a man is busy about. Businesses an economic activity with the object of earning an income i.e. profit and thereby accumulate wealth. The eco­nomic activity must be regular and continuous.

    It involves:

    • Production of goods to sell them at a profit or
    • Merely purchase of goods to resell at a profit.

    The real object of any enterprise, as pointed by Peter Drucker is to create a customer and to ensure repeat sale which is possi­ble only when the customer can get due service and satisfaction in the market place where the exchange takes place in monetary terms.

    Concept:

    The following concept below are;

    History of Concept:

    In the old days, the enterprise was conceiving merely in terms of busi­ness. The enterprise of business is business. In those days the sole and exclusive objective of busi­ness was the maximization of profit at any cost.

    The business began merely as an institution for the pur­pose of making money. So long as man-made money and kept himself out of jail he was considering successful.

    He felt no particular obligation and acknowledge no responsibility to the community. As he was the owner of the enterprise he thought he has the perfect right to do with it what he, please.

    Modern Concept:

    The modern busi­ness enterprise is a social and economic institu­tion. It does not live in a vacuum. Enterprise by it­self is not an end but a means to achieve an end – i.e., public welfare. Urwick has rightly pointed out that profit can no longer be the main objective of a business than eating is the main objective of living.

    According to Peter Drucker, the objective of the business is to create a customer.

    The first business of every business is to se­cure customers. The customer is the master and to serve him well is the only purpose of business. An enterprise cannot survive without customers. Mod­ern business aims at a profit through service.

    What is a Business Introduction Meaning and Definition
    What is a Business? Introduction, Meaning, and Definition #Pixabay.

    Basic Definitions:

    • A person’s regular occupation, profession, or trade, an activity that someone engages in a person’s concern, work that has to finish or matters that have to attend to.
    • Commercial activity, trade considered in terms of its volume or profitability, a commercial house or firm.
    • A situation or series of events, typically a scandalous or discreditable one, a difficult matter. Action on stage other than dialogue. A very enjoyable or popular person or thing.

    Definition of Business:

    According to well-known professors William Pride, Robert Hughes, and Jack Kapoor, business is,

    “The organized effort of individuals to produce and sell, for a profit, the goods, and services that satisfy society’s needs.”

    A business, then, is an organization which seeks to make a profit through individuals working toward common goals. The goals of the business will vary based on the type of business and the business strategy being uses. Regardless of the preferred strategy, businesses must provide a service, product, or good. That meets a need of society in some way.

  • Management in Types of Manager

    Management in Types of Manager:

    Even with all the efforts, employees may put forth to salvage a once positive work environment, at the core of every toxic working environment is the toxic boss, manager, or supervisor. All roads go back to the manager. And if the manager isn’t willing to change, then it’s a safe bet that nothing will.

    That’s why to impact long-lasting change, managers need to upgrade their style and approach.

    • The Passive Manager

    Also referred to as Parenting Managers or Pleasing Managers, Passive Managers take the concept of developing close relationships with their team and coworkers to a new level. These managers have one ultimate goal: to make people happy. While this is certainly an admirable trait, it can quickly become a barrier to leadership efforts if not managed effectively. Although wholesome and charming, this type of boss is viewed as incompetent, inconsistent, and clueless, often lacking the respect they need from their employees in order to effectively build a championship team. You can spot a Passive Manager by looking at their team and the number of people who should have been fired long ago. Because all Passive Managers want to do is please, they are timid and passive in their approach. These managers will do anything to avoid confrontation and mistake holding people accountable with confrontation and conflict.

    • The Perfect Manager

    Perfect Managers possess some wonderful qualities. These managers are open to change, innovation, and personal growth with the underlying commitment to continually improve and evolve as sales managers, almost to a fault. This wonderful trait often becomes their weakness. In their search for the latest and greatest approach, like Pontificating Managers, Perfect Managers never get to experience the benefit of consistency. This manager is a talking spec sheet. Their emphasis on acquiring more facts, figures, features, and benefits has overshadowed the ability of Perfect Managers to recognize the critical need for soft skills training around the areas of presenting, listening, questioning, prospecting, and the importance of following an organized, strategic selling system. Perfect Managers rely on their vast amount of product knowledge and experience when managing and developing their salespeople. Because of this great imbalance, these managers often fall short on developing their interpersonal skills that would make them more human than machine.

    • The Pitchfork Manager

    People who manage by a pitchfork are doing so with a heavy and often controlling hand: demanding progress, forcing accountability, prodding and pushing for results through the use of threats and fear tactics. This style of tough, ruthless management is painful for people who are put in a position where they are pushed to avoid consequences rather than pulled toward the desired goal.

    • The Pontificating Manager

    These managers will readily admit they don’t follow any particular type of management strategy. Instead, they shoot from the hip, making it up as they go along, often generating sporadic, inconsistent results. As a result, they often find themselves in situations that they are unprepared for. Interestingly, the Pontificating Manager thrives on situations like this. Often adrenaline junkies themselves, these managers are in desperate need of developing the second most essential proficiency of a coach: masterful listening. The Pontificating Manager is the type of manager who can talk to anyone and immediately make people feel comfortable. This character strength becomes a crutch to their leadership style, often blinding them to the need to further systemize their approach. As a matter of fact, the only thing consistent about these managers is their inconsistency.

    • The Presumptuous Manager

    Presumptuous Managers focus more on themselves than anything else. To them, their personal production, recognition, sales quotas, and bonuses take precedence over their people and the value they are responsible for building within each person on their team. Presumptuous Managers often put their personal needs and objectives above the needs of their team. As you can imagine, Presumptuous Managers experience more attrition, turnover, and problems relating to managing a team than any other type of manager. Presumptuous Managers are typically assertive and confident individuals. However, they are typically driven by their ego to look good and outperform the rest of the team. Presumptuous Managers breed unhealthy competition rather than an environment of collaboration.

    • The Problem-Solving Manager

    This boss is task-driven and focused on achieving goals. These problem solvers are constantly putting out fires and leading by chaos. The paradox here is this: It is often the manager who creates the very problems and situations that they work so hard to avoid. Continually providing solutions often results in the lackluster performance that they are working so diligently to eliminate.

    • The Proactive Manager

    The Proactive Manager encompasses all of the good qualities that the other types of managers possess, yet without all of their pitfalls. Here are the characteristics that this ideal manager embodies, as well as the ones for you to be mindful of and develop yourself. The Proactive Manager possesses the

    • Persistence, edge, and genuine authenticity of the Pitchfork Manager
    • Confidence of the Presumptuous Manager
    • Enthusiasm, passion, charm, and presence of the Pontificating Manager
    • Drive to support others and spearhead solutions like the Problem-Solving Manager
    • Desire to serve, respectfulness, sensitivity, nurturing ability, and humanity of the Passive Manager
    • Product and industry knowledge, sales acumen, efficiency, focus, organization, and passion for continued growth just like the Perfect Manager

    The Proactive Manager is the ultimate manager and coach, and a testimonial to the additional skills and coaching competencies that every manager needs to develop in order to build a world-class team.

  • What is an Organization?

    What is an Organization?

    An organization or organisation (see spelling differences) is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.

    The word is derived from the Greek word organon, which means “organ“.

    • An organized group of people with a particular purpose, such as a business or government department.
    • The action of organizing something. And the quality of being systematic and efficient.
    • The way in which the elements of a whole are arranged.

    Basic Definition of Organization:

    • Basically, an organization in its simplest form (and not necessarily a legal entity, e.g., corporation or LLC) is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from one person to tens of thousands.
    • There are several important aspects to consider about the goal of the business organization. These features are explicit (deliberate and recognized) or implicit (operating unrecognized, “behind the scenes”). Ideally, these features are carefully considered and established, usually during the strategic planning process. (Later, we’ll consider dimensions and concepts that are common to organizations).

    Definition of Organization:

    A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems they affect and are affected by their environment.

  • Organizational Behavior: What do you know about?

    Organizational Behavior: What do you know about?

    Organizational behavior is a delicate and complex process. The knowledge and information explosion, global competition, total quality, and diversity are some of the bitter realities that the managers are facing today. There are many solutions being offered to deal with these complex challenges. Yet the simple but most profound solution may be found in the words of Sam Walton, the richest person in the world and the founder of Wal-Mart. Sam was once asked the key to successful organizations and management. Sam quickly replied, “People are the key”.

    What do you know about Organizational Behavior?

    The term paradigm comes from the Greek word “Paradigma”, which means ”model, pattern or example”. First introduced over thirty years ago, by the philosophy and science historian Thomas Khun, the term “paradigm” is now used as, a broad model, a framework, a way of thinking, and a scheme for understanding reality. The impact of information technology, total quality, and diversity mentioned earlier has led to a paradigm shift.

    NEW PARADIGM:

    The organizational behavior has a goal to help the managers make a transition to the new paradigm. Some of the new paradigm characteristics include coverage of second-generation information technology and total quality management such as empowerment, re-engineering and benchmarking, and learning organization for managing the diversity of work. The new paradigm sets the stage for the study, understanding, and application of the time-tested micro-variables, dynamics, and macro-variables. One must know why management needs a new perspective to meet the environmental challenges and to shift to a new paradigm.

    A NEW PERSPECTIVE FOR MANAGEMENT:

    Management is generally considered to have three major dimensions—technical, conceptual and human. The technical dimension consists of the manager’s expertise in particular functional areas. They know the requirements of the jobs and have the functional knowledge to get the job done. But the practicing managers ignore the conceptual and human dimensions of their jobs.

    Most managers think that their employees are lazy, and are interested only in money and that if you could make them happy in terms of money, they would be productive. If such assumptions are accepted, the human problems that the management is facing are relatively easy to solve.

    But human behavior at work is much more complicated and diverse. The new perspective assumes that employees are extremely complex and that there is a need for theoretical understanding given by empirical research before applications can be made for managing people effectively.

    MODERN APPROACH TO ORGANIZATIONAL BEHAVIOR:

    The modern approach to organizational behavior is the search for the truth of why people behave the way they do. Organizational behavior is a delicate and complex process. If one aims to manage an organization, it is necessary to understand its operation. The organization is the combination of science and people. While science and technology are predictable, the human behavior in organization is rather unpredictable. This is because it arises from the deep needs and value systems of people.

    HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOR

    The following are below;

    Scientific Management Approach:

    Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century. This theory supported the use of certain steps in scientifically studying each element of a job, selecting and training the best workers for the job arid making sure that the workers follow the prescribed method of doing the job. It provided a scientific rationale for job specialization and mass production. His assumption was that employees are motivated largely by money. To increase the output, Taylor advised managers to pay monetary incentives to efficient workers.

    Yet, his theory was criticized by many employers and workers. Workers objected to the pressure of work as being harder and faster. Critics worried that the methods took the humanity out of labor, reducing workers to machines responding to management incentives. Therefore, Taylor’s view is now considered inadequate and narrow due to the points given by the critics.

    Bureaucratic Approach:

    While scientific management was focusing on the interaction between workers and the task, me researchers were studying how to structure the organization more effectively. Instead of trying to make each worker more efficient, classical organization theory sought the most effective overall organizational structure for workers and managers.

    The theory’s most prominent advocate, Max Weber, proposed a ‘bureaucratic form’ of structure, which he thought would work for all organizations. Weber’s idea! bureaucracy was, logical, rational and efficient. He made the naive assumption that one structure would work best for all organizations.

    Henry Ford, Henry Fayol and Frederick W. Taylor, the early management pioneers, recognized the behavioral side of management. However, they did not emphasize the human dimensions. Although there were varied and complex reasons for the emerging importance of the behavioral approach to management, it is generally recognized that the Hawthorne studies mark the historical roots for the field of organizational behavior.

    Hawthorne Studies:

    Even, as Taylor and Weber brought attention with their rational, logical approaches to more efficient productivity, their views were criticized on the ground that both approaches ignored worker’s humanity.

    The real beginning of applied research in the area of organizational behavior started with Hawthorne Experiments. In 1924, a group of professors began an inquiry into the human aspects of work and working conditions at the Hawthorne plant of Western Electric Company, Chicago. The findings of these studies were given a new name ‘human relations’ the studies brought out a number of findings relevant to understanding human behavior at work. The Human element in the workplace was considerably more important. The workers are influenced by social factors and the behavior of the individual worker is determined by the group.

    Hawthorne studies have been criticized for their research methods and conclusions are drawn. But their impact on the emerging field of organizational behavior was dramatic. They helped usher in a more human-centered approach to work.

    APPROACHES TO ORGANIZATIONAL BEHAVIOR:

    There are mainly four approaches to organizational behavior. They are:

    • Human resources approach.
    • Contingency approach.
    • Productivity approach, and.
    • Systems approach.

    Human Resources Approach:

    The human resources approach is concerned with the growth and development of people towards higher levels of competency, creativity, and fulfillment because people are the central resource in any organization. This approach helps employees become better in terms of work and responsibility and then it tries to create a climate in which they can contribute to the best of their improved abilities. This approach is also known as ‘supportive approach’ because the manager’s primary role changes from the control of employees to provide active support for their growth and performance.

    A Contingency Approach:

    A contingency approach to organizational behavior implies that different situations require different behavioral practices for effectiveness instead of following a traditional approach for all situations. Each situation must be analyzed carefully to determine the significant variables that exist in order to establish more effective practices. The strength of this approach is that it encourages an analysis of each situation prior to action. Thus, it helps to use all the current knowledge about people in the organization in the most appropriate manner.

    Productivity Approach:

    Productivity is a ratio that compares units of output with units of input. It is often measured in terms of economic inputs and outputs. Productivity is considered to improve if more outputs can be produced from the same amount of inputs. But besides economic inputs and outputs, human and social inputs and outputs also arc important.

    Systems Approach:

    A system is an interrelated part of an organization or a society that interacts with everyone related to that organization or society and functions as a whole. Within the organization ‘people’ employ ‘technology’ in performing the ‘task’ that they are responsible for, while the ‘structure’ of the organization serves as a basis for coordinating all their different activities.

    The systems view emphasizes the interdependence of each of these elements within the organization if the organization as a whole is to function effectively. The other key aspect of the systems view of the organization is its emphasis on the interaction between the organization and its broader environment, which consists of social, economic, cultural and political environment within which they operate.

    Organizations are dependent upon their surrounding environment in two main ways:

    • First, the organization requires ‘inputs’ from the environment in the form of raw material, people, money, ideas and so on. The organization itself can be thought of as performing certain ‘transformation’ processes, on its inputs in order to create outputs in the form of products or services.
    • Secondly, the organization depends on the environment such as public to accept its output. The systems view of the organization thus emphasizes the key interdependencies that organizations must manage. Within themselves, the organizations must trade off the interdependencies among people, tasks, technology, and structure in order to perform their transformation processes effectively and efficiently. Organizations must also recognize their interdependence with the broader environments within which they exist.

    CONTEMPORARY ORGANIZATIONAL BEHAVIOR:

    A Separate Field of Study; Organizational behavior can be treated as a distinct field of study. It is yet to become a science. Now efforts are being made to synthesize principles, concepts, and processes in this field of study.

    Interdisciplinary Approach:

    Organizational behavior is basically an interdisciplinary approach. It draws heavily from other disciplines like psychology, sociology, and anthropology. Besides, it also takes relevant things from economics, political science, law, and history. Organizational behavior integrates the relevant contents of these disciplines to make them applicable to organizational analysis. e.g. it addresses issues, which may be relevant to the case, such as the following:

    • What facilitates accurate perception and attribution?
    • What influences individual, group and organizational learning and the development of individual attitudes toward. work?
    • How do individual differences in personality, personal development, and career development affect an individual’s behaviors and attitudes?
    • What motivates people to work, and how. do the organizational reward system influence worker’s behavior and attitudes?
    • How can conflict (between groups or between a manager and subordinates) be resolved or managed?
    • What contributes to effective decision-making?
    • What are the constituents of effective communication?
    • How do managers build effective teams?
    • How can power be secured and used productively?
    • What are the characteristics of effective communication?
    • What factors contribute to effective negotiations?
    • How can jobs and organizations be effectively designed?
    • How can managers help workers deal effectively with change?

    An Applied Science:

    The basic objective of organizational behavior is to make the application of various researches to solve organizational problems, particularly related to the human behavioral aspect.

    Normative and Value Centered:

    Organizational behavior is a normative science. A normative science prescribes how the various findings of researches can be applied to get organizational results, which are acceptable to society. Thus, what is acceptable by society or individuals engaged in an organization is a matter of values of the society and people concerned.

    Humanistic and Optimistic:

    Organizational behavior focuses on the attention of people from a humanistic point of view. It is based on the belief that the needs and motivation of people are of high’ concern. Further, there is optimism about the innate potential of man to be independent, creative, predictive and capable of contributing positively to the objectives of the organization.

    Oriented towards Organizational Objectives:

    Organizational behavior is oriented towards organizational objectives. In fact, organizational behavior tries to integrate both individual and organizational objectives so that both are achieved simultaneously.

    A Total System Approach:

    An individual’s behavior can be analyzed keeping in view his psychological framework, interpersonal-orientation, group influence, and social and cultural factors; Thus, individual’s nature is quite complex and organizational behavior by applying systems approach tries to find solutions for this complexity.

  • What is the Process of Investment? Explains

    What is the Process of Investment? Explains

    The process of Investment: An organized view of the investment process involves analyzing the basic nature of investment decisions and organizing the activities in the decision process. This process creates a strong yet flexible framework for our investment professionals to work together, sharing ideas and challenging each other’s views. It is constantly evolving and we continue to invest in the resources required to ensure it remains robust. Investment managers participate in our Investment process, from company visits and internal discussions to analyzing external broker research and assessing investment themes. The process informs their decisions but your requirements remain paramount. So, the question is – What is the Process of Investment? Explains.

    The Concept is to Explain the Process of Investment.

    The investment process governs by the two important facets of investment they are the risk and return. Therefore, we first consider these two basic parameters that are of critical importance to all investors and the trade-off that exists between expected return and risk.

    Given the foundation for making investment decisions the trade-off between expected return and risk- we next consider the decision process in investments as it is typically practiced today. Although numerous separate decisions must be made, for organizational purposes, this decision process has traditionally been divided into a two-step process: security analysis and portfolio management. Security analysis involves the valuation of securities, whereas portfolio management involves the management of an investor’s investment selections as a portfolio (package of assets), with its unique characteristics.

    Security Analysis:

    Traditional investment analysis, when applied to securities, emphasizes the projection of prices and dividends. That is, the potential price of a firm’s common stock and the future dividend stream are forecasted, then discounted back to the present. This intrinsic value is then compared with the security’s current market price. If the current market price is below the intrinsic value, a purchase recommendation, and if vice versa is the case sale recommend.

    Although modern security analysis is deeply rooted in the fundamental concepts just outlined, the emphasis has shifted. The more modern approach to common stock analysis emphasizes return and risk estimates rather than mere price and dividend estimates.

    Portfolio Management:

    Portfolios are combinations of assets. In this text, portfolios consist of collections of securities. Traditional portfolio planning emphasizes the character and the risk-bearing capacity of the investor. For example, a young, aggressive, single adult would advise buying stocks in newer, dynamic, rapidly growing firms. A retired widow would advise purchasing stocks and bonds in old-line, established, stable firms, such as utilities.

    Modern portfolio theory suggests that the traditional approach to portfolio analysis, selection, and management may yield less than optimum results. Hence a more scientific approach needs, based on estimates of risk and return of the portfolio and the attitudes of the investor toward a risk-return trade-off stemming from the analysis of the individual securities.

    Characteristics of Investment:

    The characteristics of investment can understand in terms of as:-

    • Return,
    • Risk,
    • Safety,
    • Liquidity etc. 

    Now, explain;

    Return:

    All investments characterize by the expectation of a return. Investments are made with the primary objective of driving return. The expectation of a return may be from income (yield) as well as through capital appreciation. Capital appreciation is the difference between the sale price and the purchase price. The expectation of return from an investment depends on the nature of the investment, maturity period, market demand and so on.

    Risk:

    The risk is inherent in any investment, the risk may relate to the loss of capital, delay in repayment of capital, nonpayment of return or variability of returns. The risk of an investment is determined by the investments, maturity period, repayment capacity, nature of return commitment and so on.

    Risk and expected return of investment are related. Theoretically, the higher the risk, the higher the expected return. The higher return is compensation expected by investors for their willingness to bear a higher risk.

    Safety:

    The safety of investment identifies with the certainty of the return of capital without loss of time or money. Safety is another feature that an investor desires from investments. Also, Every investor expects to get back the initial capital on maturity without loss and delay.

    Liquidity:

    An investment that is easily scalable without loss of money or time says to be liquid. A well-developed secondary market for security increases the liquidity of the investment. An investor tends to prefer maximization of expected return, minimization of risk, the safety of funds and liquidity of the investment.

    Investment categories:

    Investment generally involves a commitment of funds in two types of assets:

    • Real assets
    • Financial assets
    Real assets:

    Real assets are tangible material things like building, automobiles, land, gold, etc.

    Financial assets:

    Financial assets are a piece of paper representing an indirect claim to real assets held by someone else. These pieces of paper represent debt or equity commitment in the form of IOUs or stock certificates. Also, investments in financial assets consist of – Securities (i.e. security forms of) investment Non-securities investment.

    The term ‘securities’ used in the broadest sense, consists of those papers which quote and are transferable.

    Under section 2 (h) of the Securities Contract (Regulation) Act, 1956 (SCRA) ‘securities’ include:

    Shares., scrip’s, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or another body corporate. Government securities. Such other instruments may declare by the central Government as securities, and, iv) Rights of interests in securities.

    Therefore, in the above context, security forms of investments include Equity shares, preference shares, debentures, government bonds, Units of UTI and other Mutual Funds, and equity shares and bonds of Public Sector Undertakings (PSUs). Non-security forms of investments include all those investments, which are not quoted in any stock market and are not freely marketable. viz., bank deposits, corporate deposits, post office deposits, National Savings and other small savings certificates and schemes, provident funds, and insurance policies.

    Another popular investment in physical assets such as Gold, Silver, Diamonds, Real estate, Antiques, etc. Indian investors have always considered the physical assets to be very attractive investments. Also, there are a large number of investment avenues for savers in India.

    Some of them are marketable and liquid, while others are non-marketable, Some of them are highly risky while some others are almost risking less. The investor has to choose proper avenues from among them, depending on his specific need, risk preference, and return expectation. Learning is best things, How to Earn a Profit process of investment?

    Investment avenues can be broadly categorized under the following heads:

    1. Corporate securities: Equity shares, Preference shares, Debentures/Bonds, GDRs /ADRs, Warrants, and Derivatives.
    2. Deposits in banks and non-banking companies.
    3. Post office deposits and certificates.
    4. Life insurance policies.
    5. Provident fund schemes.
    6. Government and semi-government securities.
    7. Mutual fund schemes, and.
    8. Real assets

    Thank You for Reading Process of Investment, keep share to others!!!!!

    What is the Process of Investment Explains
    What is the Process of Investment? Explains, Image credit from #Pixabay.

  • What is the Concept of Management Notes?

    What is the Concept of Management Notes?

    Concept of Management Notes; To satisfy his/her wants, a person has to perform numerous activities. An individual alone cannot perform all the necessary activities. Therefore, human beings join or cooperate in the form of groups and organizations. Also, Every organization is a group of people seeking to attain some common objectives. A central organ or agency is required to coordinate the activities and efforts of various individuals working together in an organization so that they can work collectively as a team, such an organ is called management. So, the question is – What is Management and Concept of Management?

    What is Management and Concept of Management Notes?

    What is Management: The term “Management” conveys different meanings depending upon the context in which it is useful. Also, Some of the important notes concepts of Management:

    Now, explain; Some information Concept of Management, what they are:

    Management as an Economic Resource:

    Like land, labor, capital, and entrepreneurship, management is a vital factor in production. Also, It is management that coordinates various factors of production.

    Management as a Team:

    As a team or a group of persons, management consists of all those individuals who guide; and, Also, direct the efforts of other individuals to achieve specified objectives.

    Management as an Academic Discipline:

    It has become a very popular subject of study as is evident from the great rush for admissions into institutes; and, Also, universities imparting education and training in management.

    Management as a Process:

    Defining the aims or objectives of the organization, bringing together men, money, materials, machinery and other factors of production.

    Management as a Human Process:

    Effective motivation and democratic managerial leadership are the keys to sound management, management by participation, management by objectives or results; and, Also, management by delegation help get things done through others.

    Related Types of Question:-

    A) What is Management?, B) What is the Concept of Management?, C) What is the Meaning of Management?, and, Also, D) What do you mean about Management?

    Types of Management:

    The following types below are;

    Top-Level Management:

    The top-level managers include boards of directors, presidents, vice-presidents, CEOs, general managers, and senior managers, etc. Also, Upper-level managers are responsible for controlling and overseeing the entire organization.

    Rather than direct the day-to-day activities of the firm, they develop goals, strategic plans, and company policies; as well as make decisions about the direction of the business.

    Middle-Level Management: 

    Most organizations have three management levels: first-level, middle-level, and top-level managers. Also, These managers are classified according to a hierarchy of authority and perform different tasks. In many organizations, the number of managers at each level gives the organization a pyramid structure.

    Middle management is the intermediate leadership level of a hierarchical organization, being subordinate to the senior management but above the lowest levels of operational staff. For example, operational supervisors may be considered middle management; they may also be categorized as non-management staff, depending upon the policy of the particular organization.

    Front-line Management:

    Most organizations have three management levels: first-level, middle-level, and top-level managers. Also, These managers are classified according to a hierarchy of authority and perform different tasks. Front-line managers belong to the first level of management. Front-line managers are managers who are responsible for a work-group to a higher level of management.

    They are normally in the lower layers of the management hierarchy, and the employees who report to them do not themselves have any managerial or supervisory responsibility. Also, Front-line management is the level of management that oversees a company’s primary production activities.

    Front-line managers provide critical value to a company’s success because they must motivate employees who perform essential production duties. They also must generate efficient productivity and control to minimize costs. Front-line managers are most often involved in operations (as opposed to marketing, accounting, finance, etc.).

    Functional vs. General Management: 

    Functional management and general management represent two differing responsibilities sets with an organization. Also, Functional managers are most common in larger organizations with many moving parts; where different business functions are led by managers within those respective fields (i.e. marketing, finance, etc.).

    General management is more common in smaller, more versatile, environments where the general manager can actively engage in every facet of the business.

    Management in Different Types of Business: For-Profit, Non-Profit, and Mutual-Benefit. All Things about Management, Concept of management, and Types of Management.

    What is Management and Concept of Management
    What is Management and Concept of Management Notes? Image credit from #Pixabay.