Tag: Theories

Total Quality Management (TQM) Theory Essay
Total Quality Management (TQM) Theory, Meaning, Essay; It is an essential tool that makes an improvement reaction to firms and companies. It is a technique of managing future outcomes, and it does consist of more features than just ensuring product and service quality; as it is a technique of running people and business processes to guarantee customer satisfaction in every phase. TQM, helps organizations to do the right thing at the right time from its first attempt. Therefore, we will be introducing the principle of TQM and how it reacts with organizations along with different pros and cons that could affect using of this vital technique.

Here is the article to explain, Total Quality Management (TQM) Theory Essay!

Many authors have discussed TQM Standards. Samuel K. M. Ho in the article ‘Is the ISO 9000 Series for Total Quality Management?’ wrote that the philosophy of Total Quality Management is that of promoting continuous improvement in an organization and focuses primarily on total satisfaction for both the internal and external customers, within a management environment that seeks continuous improvement of all systems and processes. He added that the philosophy is based on an intense desire to achieve victory.

Achieving victory is a challenge for today’s companies. Competition is intense and senior managers and CEOs thrive to achieve a sustainable competitive advantage over their competitors. “Though some people see TQM as something necessary to reach competitiveness and emphasize the relation between TQM and success (eg U/s GAO, 1991; Becker, 1993; Ghobadian and Gallear, 1996), others claim TQM to be merely a management fad and point out that many companies have failed to implement TQM (eg Binney, 1992; Harari, 1993; Hachman and Wageman, 1995)” (Ulrika Hellsten and Bengt Klefsjo) As Hellsten and Klefsjo mentioned in their article there are different opinions of TQM.

TQM standards;

The goal of this assignment is to analyze the different views of TQM and identify whether TQM standards do help companies promote quality. It also analyzes whether TQM standards vote for the satisfaction of both the internal and external customers as said by Samuel K. M. Ho, or else they are diminishing the real scope of quality by constraining innovation and creativity in today’s businesses. Studies by different authors both for and against TQM will analyze to understand whether TQM standards improve or lessen the quality of products and services.

It is important to add that various authors discussing TQM mentioned that there exist different descriptions of TQM and also (Boon O K, Atumugam V, Hwa T S (2005) said that surprisingly, a limited amount of rigorous research has existed done towards identifying the effects of soft TQM practices on employees’ work-related attitudes”. To start with it is vital to understand what exists meant by TQM and its purpose.

What is Total Quality Management (TQM)?

TQM is a customer-focused approach program that focuses on customer satisfaction by delivering the best quality product at the lowest possible price. It is an organizational strategy that involves everybody for contribution. The main aspect is the prevention of defects, by working on a target of zero defects. Moreover, TQM is methodical as it depends on the information gained and it is a continuous improvement process. Throughout the years before, TQM has reached to be an important and outstanding for firm’s process capabilities improvement to lead to a fit and maintain competitive advantages.

Definition of Total Quality Management;

“To define quality one has to first consider who the customer is, and subsequently consider what the requirements of each different customer group are at any one time.”

The Total Quality Management book of Leicester says that it is important to remember that when the level of quality the customer expects to perceive by him as existing exceeded by the level of quality he has received, then an opinion of “good quality” formed. Vice versa the level of quality is said to be poor when the customer’s expectations of the level of quality he should receive exceed the level of quality the customer perceives he has received. Therefore for companies to succeed it is important to understand the level of quality that the customer is expecting.

Various definitions have stood identified by different authors such as;
- “Fitness for purpose”
- “Conformance to requirements”
- “Zero Defects”
Though the above phrases of quality all have different meanings, in general, they all have common characteristics such as; the aim of satisfying the customer, providing the best quality at the lowest possible price, and also should be a companywide strategy. A definition that gathers the meaning of TQM has existed defined in a website of Lean Manufacturing Concepts.

“TQM is a process and philosophy of achieving best possible outcomes from the inputs, by using them effectively and efficiently to deliver the best value for the customer, while achieving long term objectives of the organization”.

This sounds like an appropriate definition of TQM since it emphasizes the value received by the customer and in return, the organization attains its objectives.

Definition of Quality;

Quality in manufacturing defines as a measure of excellence or defects free that exists taken by the adherence to measurable and provable standards to reach the consistency of a specific output that will satisfy a certain customer. Also, Total Quality Management is one of the techniques used to achieve a specific standard to serve customer requirements. A frequent quality description is delighting the customer by fully achieving their desire and expectations; this could include performance, delivery of item, reliability, cost-effectiveness, and appearance.

Therefore, the company needs to know what are these desires and expectations, as well as identify them, understand, and measure their ability to meet them. Quality commences with a detailed market investigation to determine the actual requirements of a certain product and the customer’s need. The main role of quality in organizations is the cooperation of everyone, as it is compulsory to achieve a total quality organization.

History of TQM;

In the present world, we hear a lot about quality control and management, which even did not exist in the eighteenth and nineteenth centuries. However, there were some quality control actions taken by individuals at a small level. Quality control and management developed and evolved during the entire twentieth century. In the early 1900s Fredrick W. Taylor presented the quality concepts, he exists known as the “father of scientific management”. In 1913, JC Penney became one of the first people to introduce the fundamentals of total quality management by bringing up ideas like “customer satisfaction”, “quality”, “value”, “training” and “rewards for performance” to the managerial bases for the business.

The history of TQM starts through Elton Mayo’s Hawthorne experiments from 1927 to 1932. The Hawthorne experiments showed that the worker’s involvement in the decision-making process enhanced the production. In the 1930s the Western Electric Company considered lighting levels, workday lengths, and rest period length in the Hawthorne plant to maximize productivity. And the researchers found that as the lights were brighter, workers’ productivity increased and vice versa. This change of the behavior of the employees exists called the Hawthorne effect.

More to know;

In the 1940s US was in World War II. World War II pushed standardization, quality control, and manufacturing practices to a higher level. The idea of TQM grew very slowly in the USA even though many TQM aspects existed developed in the USA in the 1950s. Quality stood implemented in the American and European industries only in the 1980s because there was no preparedness of the business and governmental organizations to take adequate steps concerning the findings of technical and statistical work. The decision-making structures at that period were not ideal to solve the quality control problems. In the 1960s, the idea of “Zero-defects” gained favor. Philip Crosby, who was the founder of the “Zero defects” idea concentrated on employee motivation and awareness.

In Japan, the quality before the 1940s existed limited to inspection quality. The post-war era saw dramatic progress in the Japanese quality and that happened over a small period. Quality control existed introduced to Japan by a few American experts. In the 1950s Edward Deming imparted statistical methods and Dr. Juran imparted quality management methods to the Japanese. Edward Deming knows as the “father of modern quality”. It was in the 1950s when Armand Feigenbaum wrote Total Quality Control.

This was the first work that initiated Total Quality Management theories. The Japanese realized the need and benefits of quality management. A proper effort stood initiated in 1956. In 1962 the Japanese had innovated the concept of quality control. In 1968 they had developed their version of TQM and presented it as Company-Wide Quality Control (CWQC) and the most key features of TQM in Japan stood achieved between 1950-1965. After reading the history of TQM, also you’ll know the total quality management theory below are;

Theory of Total Quality Management (TQM);

Total Quality Management (TQM) is a quality improvement body of methodologies that exist customer-based and service-oriented. TQM was first developed in Japan and then spread in popularity. However, while TQM may refer to a set of customer-based practices that intend to improve quality and promote process improvement, there are several different theories of total quality management at work guiding TQM practices.

Deming’s Theory;

Deming’s theory of Total Quality Management rests upon fourteen points of management he identified, the system of profound knowledge, and the Stewart Cycle (Plan-Do-Check-Act). He knows for his ratio – Quality is equal to the result of work efforts over the total costs. If a company is to focus on costs, the problem is that costs rise while quality deteriorates. Deming’s system of profound knowledge consists of the following four points:
- System Appreciation – an understanding of the way that the company’s processes and systems work
- Variation Knowledge – an understanding of the variation occurring and the causes of the variation
- Knowledge Theory – the understanding of what can know
- Psychology Knowledge – the understanding of human nature
By being aware of the different types of knowledge associated with an organization, then quality can broach as a topic. Quality involves tweaking processes using knowledge.

Crosby’s Theory;

Philip Crosby is another person credited with starting the TQM movement. He made the point, much like Deming; that if you spend money on quality, also it is money that exists well spent. Crosby based on four absolutes of quality management and his list of fourteen steps to quality improvement.

Joseph Juran’s Theory;

Joseph Juran is responsible for what has become known as the “Quality Trilogy”. The quality trilogy is made up of quality planning, quality improvement, and quality control. If a quality improvement project is to be successful; then all quality improvement actions must be carefully planned out and controlled. Juran believed there were ten steps to quality improvement.

The EFQM Framework;

The European Foundation for Quality Management (EFQM) Model is based upon nine criteria for quality management. There are five enablers (criteria covering the basics of what a company does) and four results (criteria covering what a company achieves). The result is a model that refrains from prescribing any one methodology, but rather recognizes the diversity in quality management methodologies.

Ishikawa’s Theory;

Creator of the last theory, Dr. Kaoru Isikawa is often known for his namesake diagram, but he also developed a theory of how companies should handle their quality improvement projects. Ishikawa takes a look at quality from a human standpoint. Also, He points out that there are seven basic tools for quality improvement.

What Should I do About the Competing Theories?

These are a few of the many different TQM theories, and we haven’t even covered Six Sigma here. When learning about total quality methods, it is important to remember that these are guidelines. What is important is that you and your company practice consistent steps towards improving quality in your organization and processes. Use the tools that have been shown to work and make a commitment. Committed leadership means committed employees.

Total Quality Management (TQM) Theory Essay; Image by knowledgetrain from Pixabay.
February 26, 2022
Supply Chain Models Comparison Theories Assignments Essay

Comparison of Supply Chain Models and Theories in Assignments Essay; Introduction – The notion of “supply chain management” was first used by consultants in the 1980s; however, other scholars would argue that supply chain management arose from the logistical processes, costing methods, transportation, and physical distribution. The term supply chain management is a relatively new phenomenon but has become one of the most crucial components for a business’s success.

Here is the article to explain, What is the Comparison of Supply Chain Models and Theories Assignments Essay?

Author Croom et al, 2000, categorized the subject area of supply chain management into six categories; Strategic Management, Relationships and Partnerships, Logistics, Best practices, Marketing, and Organisational Behaviour. Argued that scholars have approached supply chain management from a restrictive functional view; and operationally integrated linkages (between buyers and suppliers) to end-to-end management of; for example, information and material flow, quality, and design.

Supply chain management has been referring to using terms such as “distribution channels”, “network sourcing”, “supply pipeline management”, “value chain management”, and “value stream management”. Many scholars even today would dispute over just; what supply chain management is and with various conceptual models with many different supply chain frameworks; often this poses the question as to which is the most optimal one for a company.

Supply chain models and theories came into full force when the Japanese car company Toyota revealed their “lean manufacturing”, processes to the world. As a result of their lean concept which focuses on the reduction of waste within the manufacturing environment, automotive companies around the world have aimed to perfect; their manufacturing processes, and many companies, like Nissan, aim to maximize the efficiency and effectiveness of their processes.

As with many industries, the automotive industry, especially in the modern era, relies heavily on suppliers in their manufacturing processes, long gone the days of Henry Ford’s mass production days where most cars were made in-house. As a result of economies of scale, labor costs, production costs, technical know-how, and globalization, many car companies now consider outsourcing for many components of their manufacturing process; thus making supply chain management a vital component of their business. For this paper, one can argue the “efficient” supply chain model is the driving model behind the Nissan – Renault- Mitsubishi alliance and manufacturing of the Qashqai car.

The Efficient Supply Chain Model;

The “efficient” supply chain model one could argue is the driving model behind the Renault-Nissan and Mitsubishi alliance. The efficient supply chain model outlines how managers should focus on maximizing end-to-end efficiency including high rates of asset utilization in a bid to lower costs. As to how effective this model is and how closely these companies follow; this model is under scrutiny by academics and will be critically evaluated in this paper.

Reflection to the Case Study;

The logic behind the conclusion that this case study is an example of an efficient, although failed, supply chain model will outline in this report. One of the main factors of this case study that can lead one to draw this conclusion is the agreement; which all three automotive companies aim to meet that is: “each company acts in the financial interest of the other; while maintaining an individual brand, identities, and independent corporate cultures”.

Example;

Unlike Toyota which adopted a Lean manufacturing process, this case study had a completely different aim and set of parameters. This case involved three leading car companies working together to develop a new car, the Qashqai. The Toyota Model works well and lean generally is a lot easier to manage; where it is one OEM and the suppliers of the OEM are all focused on that OEM. Toyota installed Lean thinking in its company culture, heritage, and suppliers; which all work together and prove to be very effective.

Toyota’s lean concept focuses on eliminating waste throughout the organization and supply network. The elimination of waste design to reduce costs and save time. Cost and Time are crucial elements. In this case study, cost-sharing is the crucial element not cost elimination; this is the major difference between the two conceptional models. One model eliminates waste and reduces cost, the other aims to utilize assets throughout the end-to-end supply chain; and share costs in a way to reduce the cost for each company.

Details;

According to the Industrial Marketing and Purchasing (IMP) Group; “organizational efficiency defines as an internal standard of performance”. Supply chain efficiency is related to whether a company’s processes are harnessing resources in the best way possible; whether those resources are financial, human, technological, or physical. However, the definition of efficiency does not include customer satisfaction. There may be a very efficient supply chain that minimizes costs for materials and packaging; but as in the case of the Qashqai car model, faulty components existed installed into the car; which means that more than 25,000 cars existed recalled due to a brake fault problem.

Objective;

The objective of the alliance was to create a product that meant; that customers would pay less for fuel as this car would use “cutting edge technology” to be fuel-efficient. By using lighter and more innovative components, the car should “reduce fuel consumption by 20%”. Coming back to the point made in the previous paragraph; whilst aiming to achieve this objective, the development lead time from 20.75 months was to reduce to just 10.50 months; and reducing costs from 10 billion euros to 4 billion euros.

Achieve;

To achieve this at the time of “launching the Qashqai, they relied on the adoption and adaptation of other organizations’ best practices. This is another reason why one could conclude that the supply chain conceptional model used by the alliance was the “efficient supply chain model”. The companies aimed to utilize the assets of each company, i.e. best practices, to develop this cutting-edge technology.

In addition, it can conclude from the actions and strategies from the alliance that efficiency in terms of the supply chain model; does not always mean it is effective as stated previously the reduction in development time and the cost was an internal strategy using internal standards; which didn’t benefit the end-user as the car was faulty.

The Customer-Driven Supply Chain Model;

A customer-driven supply chain is a concept that aims to enhance the efficiency of operations in business by synchronizing activities; such as planning, production, and deliveries to appropriately react to customer requirements. The objective outlined in the case study which is what the alliance was aiming to achieve was reducing fuel consumption, increasing comfort and drivability, and increasing the degree of smoothness when traveling to and from destinations. This is very similar to the lean process model used by Toyota such as synchronization of activities; however, this model doesn’t place a strong emphasis on waste elimination where lean does; this model places the customer requirements as higher regard and in the case study.

This is apparent where the use of company best practices and innovative new designs are being utilized to react to customer requirements for the need to fuel reduction and improve the driving experience. This conceptional model also differs from the efficient model which places a stronger emphasis on internal processes; and, in this case, study: “reducing lead time and costs” not necessarily paying as much attention to creating a product that meets requirements and safety checks.

Reflection to the Case Study;

The customer-driven supply chain model relies on the company’s ability to identify the customer needs and how to deal with these needs effectively. For the automotive industry, there are many requirements to meet. The reliability of manufacturer, design, function, and cost are purchasing decisions that a customer will use to decide on which car/ product to buy. A customer is more likely to put cost and function as their core concern.

It can say that the NMUK alliance tried to respond to this by manufacturing a car that met both the cost and functional aspects. By manufacturing a car that would reduce fuel consumption by 20% by using lightweight materials; and by manufacturing a car that felt and drove much more comfortably for even greater distances. This is the general theme that was picked up and used as a focal point when establishing the alliance. Customers are more likely to place cost and functionality as primal categories in their decision-making process.

Achieve;

To achieve this NMUK’s corporate suite strategy was to; “systematically reduce development lead time from 20.75 months to 10.50 months, reducing costs from 10 billion euros to 4 billion euros”. By setting this strategy NMUK was aiming to reduce the costs drastically; which potentially could pass on to the end customers. Therefore, achieving one of the major purchasing decisions that customers base their decisions on, cost. Secondly, the other strategy NMUK used to meet the customer’s second decision-making aspect functionality, NMUK designed the Qashqai using “cutting edge and innovative lightweight components and materials”.

These two objectives can argue to act as the primary focus which all other decisions were based around. The idea of reducing cost while increasing functionality. NMUK adapted and adopted the best practices of its partner companies whilst on one hand from; the previous post this was considered an efficient conceptional framework. On the other hand, one can argue this was based around the customer-driven supply chain model. NMUK sourced tier-one suppliers that could achieve further cost savings of 10%, thus reducing the overall cost even more. It can be argued that NMUK’s procurement decisions were based around; this concept of delivering better materials which had the positive effect of cost minimization.

Decision;

Another decision NMUK made which could interpret as a customer-driven supply chain models and theories concept was the use of offshoring and outsourcing. Offshoring and Outsourcing are inevitable, some scholars would argue. In this case study, NMUK outsourced the materials and even the technology in a bid to increase and maximize its functionality and reduce cost. However, this created a drastic consequence for NMUK; which will discuss later in the report where a detailed analysis of the supply chain decisions will evaluate.

To conclude the point, these strategies although driven by customer decisions of cost reduction and improved functionality; led to what many scholars argue as a tremendous hindrance for the effectiveness of this supply chain and overall performance. UK’s decision to outsource as much as “45% of complicated modular components” led to lower production control, lower quality checks, and increased risk and delays.

Conclusion;

In conclusion, as discussed in the previous post two supply chain models and theories could draw from; this case study one is the efficient supply chain model, the other is the customer-driven supply chain model. Possibly, others could argue that this is an example of a learning supply chain models and theories; however, evidence from the case study suggests that the alliance group, although targeted to reduce lead time from 20.75 months to 10.50 months; and reduce costs from 10 billion euros to 4 billion euros; they did not adopt a kaizen or waste management strategy when transforming their process.

Kaizen “refers to continuous accumulations of small betterment activities rather; than innovative improvement” and will refer to in the supply chain operational process post. Therefore, in this paper, this supply chain model is disregarded as evidence shows from Toyota’s manufacturing process; this incident wouldn’t have happened. In a lean process system, all possibilities of waste would target and eliminate. The continuous improvement would occur, whereas Nissan decided to innovate rapidly and outsource unproven technology.

Suggestion;

Furthermore, as suggested in the previous theories this case study demonstrates two supply chain models; and one could argue that these models intertwine with one another, meaning there is no one such sole model on which Nissan was based. On one hand, Nissan and the alliance were attempting to meet customer demands for innovative products at a lower cost and enhance functional ability. On the other hand, they attempted to achieve this through an efficient supply chain model; where they attempted to utilize assets from each company and adopt a cost-sharing platform to reduce costs for each company.

This could say to be an example of an efficient supply chain model. Therefore, an analysis of this case study suggests that; this supply chain model was a combination of a customer-driven and efficient supply chain model. As proven in the case study, this may not be the most effective model; as it is often difficult to meet one criterion whilst achieving another.

Supply Chain Models Comparison Theories Assignments Essay; Image by Mohamed Hassan from Pixabay.

References; Comparison of Supply Chain Models. Retrieved from https://www.ukessays.com/assignments/comparison-of-supply-chain-models-2021.php?vref=1

December 23, 2021
4 Analysis of Leadership Theories Models Management Essay

4 Analysis of Leadership Theories and Models on Management Essay; This article journal is related to the analysis of Leadership Theories. In this post, four theories will discuss; there is leader-member exchange theory (LMX), path-goal theory, transactional-transformational theory, and the full-range leadership theory (FRLT).

Here is the article to explain, the 4 Analysis of Leadership Theories and Models on Management Essay!

Before we started to discuss the analysis of Leadership Theories and Models; the writer felt that is often difficult to separate leadership theories and models. He also informed that the reason for this study of “theory” and “model” will use interchangeably except; there is a very clear difference between them.

Firstly, the journal discusses the leader-member exchange theory. Leader-Member Exchange Theory also called LMX or Vertical Dyad Linkage Theory; describes how leaders in groups maintain their position through a series of tacit exchange agreements with their members. A leader’s approach stands addressed by the theories to the business environment and the follower’s perception of a leader’s performance. The direct relationship between a leader and a follower and the theoretical context for their interactions is the dyadic relationship. So that, there is 3 quality of the leader-follower interaction that stood determined by the LMX; such as locus of control, need for power, and self-esteem.

Theories and Models part 01;

A size of how a person knows his control over his life and environment is the locus of control. A person feels a sense of control over his life and activities calls has a high internal locus of control. This type of person also positively correlated with job satisfaction. The need for power is that employees who understand that need by asking for feedback on performance; compete more visibility jobs and leadership opportunities at their work and career. Another is self-esteem, employees have a sense of their value to the company; which typically manifests as more job satisfaction and more emotional resilience.

Besides that, the path-goal theory of leadership existed developed to describe the way that leaders encourage; and support their followers in achieving the goals; they have been set by making the path that they should take clear and easy. Path-goal theory describes a leader’s activity in leading followers within the context of the organization’s environment in a highly structured environment followers do not need a good deal of guidance to perform their works. Unless in an unstructured environment they may need more.

Theories and Models part 02;

Another is the core of the transactional-transformational theory revolves around the alignment of personal and organizational goals; which the theory states benefits both the leader and the follower. The transactional-transformational theory comprises four transformational components, the four I’s such as idealized influence, intellectual stimulation, individualized consideration, and inspirational motivation, and three transactional components such as contingent reward, passive management by exception, and active management by exception.

Lastly is the full-range leadership theory (FRLT). An extension of transformational leadership theory to nine dimensions of leader behavior calls FRLT. The emotional part of leadership isolate by idealized influence and is a view of the follower’s emotional engagement with the leader. According to the writer, the full-range leadership theory is also closely associated with the multifactor leadership questionnaire.

Theories and Models part 03;

From this journal, the measure of the success of a theory is based on several reasons; that is all the theories are considered in a business environment where success link to measurable business criteria. Success has much meaning, but here will mean that there is a good fit between the leader’s behavior and the theory. The writer especially remembers this does not necessarily mean that a theories’ success implies a leader’s success; because some of the measures will be negatively related to leader performance.

Each of the theories under consideration has explained modes of leader behavior, considering both the leader’s effect on followers and the interaction between leader and follower. A leader-member exchange scale assesses the degree to which leaders and followers have mutual respect for one another’s capabilities, feel a deepening sense of mutual trust, and have a strong sense of obligation to one another. Another way to analyze is the dimensions of measurement for LMX focus on the follower and his/her job satisfaction and feeling of control.

Theories and Models part 04;

Transformational leadership defines as a leadership approach that creates valuable; and positive change in the followers with the end goal of developing followers into leaders. A transformational leader focuses on “transforming” others to help each other, to look out for each other, to be encouraging and harmonious, and to look out for the organization as a whole. With this leadership, the leader enhances the motivation, morale, and performance of his followers through a variety of mechanisms. These include connecting the follower’s sense of identity and self to the mission and the collective identity of the organization; being a role model for followers that inspires them; challenging followers to take greater ownership for their work, and understanding the strengths and weaknesses of followers; so the leader can align followers with tasks that optimize their performance.

An example, Sagie and Koslowski (1994) state that employees involved in tactical decision making, participation in decisions making, feel more empowered and involve in the company in future pay and assignment. A person who is practicing active management by exception calls a transactional leader; who can use a path-goal and leader-member exchange. The factor for this is the outcome, the transactional leader sees as the total output of the exchange; and, the transformational leader sees as a stage in the growth of the follower. In an action to motive a follower, the transactional leader appeals to both the follower’s intellect and emotions. He will use the best approach at his disposal to move followers forward in achieving his vision.

Theories and Models part 05;

In addition, a leader has a full toolkit of capabilities to control his relationship with subordinates given by the full-range leadership theory. According to this journal, the full-range leadership theory can explain most leadership activity simply; and leadership-member exchange theory directly addresses the varying relationship between leaders and their subordinates in a context. But since this happens at a higher level, the leadership-member exchange does not address the dissemination of vision. Besides, the ability of a leader to direct the activities of subordinates had been addressed by the path-goal theory.

Based on these, the writer feels that transactional-transformational theory is more complete than the prior two theories. The reason for his feeling is it includes their activities, by implication, and expands on the basis for leader actions. Otherwise, this leader also retains the ability to function in a transactional mode in more stable situations. The superior to transactional-transformational theory is full-range leadership theory; which is an attempt to complete them with the addition of components. Humphreys (2001) found that transformational leaders were more likely to grasp the implication of technology adoption than transactional leaders.

Theories and Models part 06;

Leaders can grow in many ways like educational environments, extending their knowledge of leadership and the world around them. A leader can temper his decisions with wisdom although some would contend that philosophy is useless. Leadership theories are relatively recent phenomena that have been advanced by the sudden interest in historical leaders and the desire to identify the characteristics and behaviors that these leaders exhibited. By understanding the characteristics of the leader, their successes and failures, as well as the political and work environment they faced, the modern-day worker can hope to replicate this success. All lie in a multi-dimensional continuum existed considered by the leadership theories that consider the emotional, intellectual, physical, and value structure of leaders and followers.

Charismatic leadership is leadership based on the leader’s ability to communicate and behave in ways that reach followers in a basic, emotional way, to inspire and motivate. It’s difficult to identify the characteristics that make a leader “charismatic”, but they certainly include the ability to communicate on a very powerful emotional level, and probably include some personality traits. Developing “charisma” is difficult, if not impossible for many people, but luckily charismatic leadership is not essential to be an effective leader. Many other characteristics involve leading effectively; and, there is significant evidence to indicate that it simply is not necessary to have this elusive charisma to lead others well.

Theories and Models final part;

Finally, the writer’s conclusion is between these four theories it appears that none of them are counterproductive. He felt that a leader can pursue them in a balanced manner and expect reasonable results. So the full-range leadership theory is the most complete of the theories. The reason is it includes too many activities.

4 Analysis of Leadership Theories and Models on Management Essay; Image by Mohamed Hassan from Pixabay.

References; The Analysis Of Leadership Theories Management Essay. Retrieved from https://www.ukessays.com/essays/management/the-analysis-of-leadership-theories-management-essay.php?vref=1

December 11, 2021
Examples Why a need for Business Forecasting to Business?
Need for Business Forecasting to Business examples the Theories. Business Forecasting is an estimate or prediction of future developments in business such as sales, expenditures, and profits. It refers to the technique of taking a perspective view of things likely to shape the turn of things in the foreseeable future. As the future is always uncertain, there is a need for an organized system of forecasting in a business. Given the wide swings in economic activity and the drastic effects these fluctuations can have on profit margins; it is not surprising that business forecasting has emerged as one of the most important aspects of corporate planning. So, what we the question is: Different Theories explain why a need for Business Forecasting to Business?

The Concept of Financial Management Examples Business Forecasting for Business, in points of Theories and Need.

In this article, we will discuss Business Forecasting for Business; First Theories of Business Forecasting, that we look again at the need for Business Forecasting. So, let’s discuss: The essence of all the previous article on business forecasting is to explain meaning and definition is that business forecasting is a technique to analyze the economic, social, and financial forces affecting the business with the object of predicting future events based on past and present information. Need to study: Importance, Advantages, Limitations of Business Forecasting to Business.

Examples the different theories of Business Forecasting:

The following different theories Examples Business Forecasting needed are:

Historical:

This theory is based on the assumption that history repeats itself. It simply implies that whatever happened in the past under a set of circumstances is likely to happen in the future under the same set of conditions. Thus, a forecaster has to analyze the past data to select such a period whose conditions are similar to the period of forecasting. Further, while predicting for the future, some adjustments may make for the special circumstances which prevail at the time of making the forecasts.

Action and Reaction:

This theory is based on Newton’s ‘Third Law of Motion’, i.e., for every action; there is an equal and opposite reaction. When we apply this law to business, it implies that if there is depression in a particular field of business; there is bound to be a boom in it sooner or later. It reminds us of the business, cycle which has four phases, i.e., prosperity, decline, depression, and prosperity.

This theory regards a certain level of business activity as normal and the forecaster has to estimate the normal level carefully. According to this theory, if the price of the commodity goes beyond the normal level; it must come down also below the normal level because of the increased production and supply of that commodity.

Economic Rhythm:

This theory propounds that the economic phenomena behave rhythmically and cycles of nearly the same intensity and duration tend to recur. According to this theory, the available historical data have to analyze into their components, i.e. trend, seasonal, cyclical, and irregular variations. The secular trend obtains from the historical data project several years into the future on a graph or with the help of mathematical trend equations.

If the phenomena are cyclical in behavior, the trend should adjust for cyclical movements. When the forecast for a year is to be split into months or quarters then the forecaster should adjust the projected figures for seasonal variations also with the help of seasonal indices. It becomes difficult to predict irregular variations and hence, the rhythm method should use along with other methods to avoid inaccuracy in forecasts. However, it must remember that business cycles may not be strictly periodic and the very assumptions of this theory may not be true as history may not repeat.

Sequence Method/Time-Lag Method:

This theory is based on the behavior of different businesses which show similar movements occurring successively but not simultaneously. As such, this method takes into account time lag based on the theory of lead-lag relationship which holds good in most cases. The series that usually change earlier serve as the forecast for other related series. However, the accuracy of forecasts under this method depends upon the accuracy with which time lag estimate.

Cross-Cut Analysis:

In this method of business forecasting, the combined effect of various factors is not studied; but the effect of each factor, that has a bearing on the forecast, is studied independently. This theory is similar to the Analysis of Time Series under the statistical methods.

Modernity:

This approach makes use of mathematical equations for drawing economic models. These models depict the inter-relationships amongst the various factors affecting the economy or business. The expected values for dependent variables then ascertain by putting the values of known variables in the model. This approach is highly mechanical and this can rarely employe in business conditions. Very helpful: Elements, Techniques, and Steps of Business Forecasting.

The Need for Business Forecasting:

Some of Examples the important needs of business forecasting list below:

These are Six need:
- Production Planning.
- Financial Planning.
- Economic Planning.
- Workforce Scheduling.
- Decisions Making, and.
- Controlling Business Cycles.
Now, Explain each one:

Production Planning:

The rate of producing the products must match with the demand which may be fluctuating over the time period in the future. Since its time consuming to change the rate of output of the production processes; so, the production manager needs medium-range demand forecasts to enable them to arrange for the production capacities to meet the monthly demands which are varying.

Financial Planning:

Sales forecasts are a driving force in budgeting. Sales forecasts provide the timing of cash inflows and also provide a basis for budging the requirements of cash outflows for purchasing materials, payments to employees and to meet other expenses of power and utilize, etc. Hence forecasting helps finance managers to prepare budgets taking into consideration the cash inflow and cash outflows.

Economic Planning:

Forecasting helps in the study of macroeconomic variables like population, total income, employment, savings, investment, general price-level, public revenue, public expenditure, the balance of trade, the balance of payments, and a host of other macro aspects at national or regional levels. The forecasts of these variables are generally for a long period of time ranging between one year to ten or twenty years ahead. Much would depend on the perspective of planning, longer the perspective longer would be period of forecasting. Such forecasts often call projections. These are helpful not only for planning and public policymaking; but, they also include likely economic environment and aid formulation of business policies as well.

Workforce Scheduling:

The forecast of monthly demand may further break down to weekly demands and the workforce may have to adjust to meet these weekly demands. Hence, forecasts need to enable managers to get in tune with the workforce changes to meet the weekly production demands.

Decisions Making:

The goal of the forecaster is to provide information for decision-making. The purpose is to reduce the range of uncertainty about the future. Businessmen make forecasts to make profits. In business, the forecast has to be done at every stage. A businessman may dislike statistics or statistical theories of forecasting, but he can not do without making forecasts. Business plans of production, sales, and investment require predictions regarding the demand for the product; the price at which the product can be soled, and the availability of inputs.

The forecast for demand is the most crucial. The operating budgets of various departments of a company have to be based upon the expected sales. Efficient production schedules, minimization of operating cost, and investment in fixed assets are when accurate forecasts recording sales and availability of inputs are available.

Controlling Business Cycles:

It is commonly believed that business cycles are always very harmful in their effects. Abrupt rise and fall in the price level injurious not only to businessmen but to all types of persons, industries, trade, agriculture. All suffer from the painful effects of depression. The Trade cycle increases the risk of business; creates unemployment; induces speculation and discourages capital formation.

Their effects are not confined to one country only. Business forecasting reduces the risk associated with business cycles. Prior knowledge of a phase of a trade cycle with its intensity and expected period of happening may help businessmen, industrialists, and economists to plan accordingly to reduce the harmful effects of trade cycle statistics is thus needed to control the business cycles.

Different Theories explain why a need for Business Forecasting to Business? Image credit from #Pixabay.
June 18, 2021
Personal Selling; Introduction, Meaning, Definition, and Theory
Personal Selling defines as a hand-to-hand exchange of goods and money or Face-to-face selling in which a seller attempts to persuade a buyer to make a purchase. In the competitive marketplace, the product must be communicated across to the customers. Traditionally, advertising is a tool for communication. However, as the competition has increased, the process of communication has also become more and more complex.

Here are explain Personal Selling; Introduction, Meaning, Definition, and Theory.

Personal selling is one of the forms of promotion or marketing communications used by organizations to communicate with the marketplace and drive purchases of their products. Along with advertising, public relations, and sales promotion – personal selling makes up the promotions mix or marketing communications mix of a company. What is the importance and process of Decision-Making?

#Meaning:

Meaning of Personal selling; Personal selling or salesmanship are synonymous terms; with the only difference being that the former term is of recent origin, while the latter term has been traditionally in usage, in the commercial world. Since a salesman, in persuading a prospect to buy a certain product, follows a personal approach; salesmanship, in the present-day times is often popularly called personal selling.

It is the most traditional method, devised by manufacturers, for the promotion of the sales of their products. Before the development of the advertising technique, it used to be the only method used by manufacturers for the promotion of sales. It is, in fact, the forerunner of advertising and other sales promotion devices.

#Definition:

Personal selling can define as; direct person-to-person communication between sellers and potential customers, to persuade potential customers to purchase products.

According to Philips and Duncan,

“Salesmanship is the art of presenting an offering so that the prospect appreciates the need for it and a mutually satisfactory sale follows.”

They often occur face-to-face, however, they can also take place through telephone conversations, online video conferencing, or online text communication. Also, Personal selling is an effective way to promote and sell high-priced and/or complex products.

This is because the person-to-person approach allows for a detailed explanation of products and any individual questions or concerns the customer has can be immediately addressed.

Personal selling; Introduction, Meaning, Definition, and Theory. Russia cotton Candy Hands #Pixabay.

#Introduction, How to Sale?

Introduction to Personal selling; The marketers of today cannot rely on only advertising the marketing communication mix comprises 5 modes of communication as explained herein;
- Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
- Sales promotion: A variety of short-term incentives to encourage the trial or purchase of a product or service.
- Public relations and publicity: A variety of programs designed to promote or protect a company’s image or its products.
- Personal selling: Face-to-face interaction with one or more prospective purchasers to make presentations, answer questions, and procure orders.
- Direct marketing: Use of mail, telephone, fax, e-mail or internet to communicate directly with or solicit & a direct response from specific customers and prospects.
The present article deals with personal selling as one of the modes for selling. The topic falls within the scope of both marketing communication and sales management. It is the most effective tool, especially in the later stages of the buying process. It is very useful in building buyer preference, convictions, and action.

Distinctive qualities:

Personal selling has three distinctive qualities;
1. Personal confrontations: They involve an immediate and interactive relationship between two or more persons each party can observe the other’s reactions at close hand.
2. Cultivation: It permits all kinds of relationships to spring up, ranging from matter-of-fact selling relationships to deep personal friendships. Also, Sales representatives usually have the customer’s best interests at heart.
3. Response: It makes the buyer feel under some obligation for having listened to the sales talk.
Theory of Personal selling:

Personal selling is more of an art. Often effective salespersons have an instinct. Yet, it is realizing that proper training can enhance the skills of good salesmen. In present times, it is becoming more and more customer-oriented because no more do are have a buyer’s market.

Theory of Personal selling – List

Three major aspects of personal selling are;
1. Professionalism.
2. Negotiations, and.
3. Relationship marketing.
Now, explain each;

Professionalism:

The belief that good sales are born is giving way to a professional approach to sales activity. As well as, the sales managers realize the importance of training the sales force and spend huge sums of money each year for the same. We find the market flooded with training aids comprising books, video and audio cassettes, CDs, and many more.

Also, The aim of sharpening the skills of a salesman is to make him more and more effective. All sales training approaches try to convert a salesperson from a passive order taker into an order setter. An order taker is passive and stands dominated by the situation. In order Getter molds the situation in his favor and takes charge to achieve his objectives. What is the IT Professionalism in Information Technology Essay? Also, The modern professional approach to salesmanship stands customer-oriented.

The act of selling stands projected as aimed at solving the problems of the customers. Such an approach is satisfying the customers more thereby making sales activity more and more effective. Furthermore, the sales personnel are trained to understand the situation and they formulate their reaction because no single approach works in all situations.

Negotiation:

Negotiation skills are one of the most important skills of a salesman. Likewise, The two parties need to reach an agreement on price and other terms of sales. A good salesman wins the order without making deep .concessions that will hurt his profitability.

Also, he must not unduly extract the customer because such an approach will be detrimental in the long run. This process of exchange by way of negotiation is more of an art. Learned by a salesman over time. The professional approach to negotiation identifies the zone of agreement between the seller’s surplus and the buyer’s surplus.

Such an understanding helps in reaching the agreement point where both parties feel satisfied. Negotiation involves communication that is Focused and planning. Also, A good salesman understands his customer well and then formulates a negotiation strategy.

Relationship marketing:

As the salesman becomes close to the customers, the Transactional nature of the selling approach gives way to the relationship approach. Furthermore, the Transactional approach is deal to deal approach centered on short-term gains. Also, The relationship approach is long-term and establishes a relationship between the buyer and the seller.

Both understand each other and support each other. Sales managers have to realize that it is far easier to get sales from an old customer as compared to getting the same from a new customer. So, it is important to retain existing customers. As well as, Personal selling is the most effective method of building relationships.

No other means can establish relationships as effectively as personal selling does. So modern salesmen work with a long-term perspective, establishing close customer associations. Such a practice is most evident in banking, airlines, insurance, and investment industries.
July 28, 2019
Guide to Theories in Human Resource Management

Human resource management theorists or theories, principles, and techniques for people management in competitive organizations draw from theories found in different disciplines. Guide to Theories in HRM Study with PDF, PDF Reader, and Free Download. Indeed, it is impractical to present all the disciplines and relevant theoretical aspects. That has shaped the understanding of human resource management today. Therefore, it is believed that it is only important to give the reader a cursory view of some relevant theories underpinning human resource management, and whoever may be interested in knowing more about the genesis and developments of a specific theory may do so by taking extra homework. Also learn, MIS, Guide to theorists or theories in Human Resource Management.

Learn and Study, Guide to theorists or theories in Human Resource Management.

Organization life cycle theory:

Cameron & Whetton (1981) advanced organization life cycle theory which characterizes organizational development from formation, growth, maturity, decline, and death. According to the theory, the driving force in all these stages is the nature of the workforce. Also, at the maturity stage, the organization cannot continue to grow or survive if there is no organizational structure. That supports human resource creativity, innovation, teamwork, and high performance, which will withstand pressure from competitors.

Role behavior theory:

Role behavior theory aims to explain and predict the behavior of individuals and teams in organizations. Which, in turn, informs managers about decision-making. And what steps they take on people management as well as the expected consequences. Some of the key ideas focus on the need to improve the working environment including the resources to stimulate new behavior in employees for them to cope with new demands, it includes the use of rewards to induce and promote positive work behavior, and punishments to control negative behavior.

Resource dependency theory:

One of the challenges faced by managers during the economic recession in the 1970s is how organizations can best acquire scarce resources and effectively utilize them to remain competitive in the market. Also, the ability to utilize one’s resources including (financial, technological, and labor). And acquiring more from the external environment was one of the areas of concern in many organizations.

The more organizations were able to harness resources, the more competitive they became. Therefore, resources were seen as the essence of organizational power (Emerson 1962). However, overdependence on external resources appeared to be risky due to uncertainties that cannot be controlled by the organization. Concerning useful labor, the emphasis shifted to seeing employees as scarce resources that should acquire effectively, utilize, develop and retain.

Institutional theory:

The word ‘institution’ means different things to different people depending on their Academic and professional orientation (Peters 2000). However, it is a discipline that combines politics, law, psychology, public administration, and economics amongst other things. To explain why certain decisions are made or actions were taken and their impact on the organization. Commons (1931: 648) defines ‘institutions’ as ‘collective action in control, liberation, and expansion of individual action’.

Collective action covers areas such as customs, law, and procedures. The main objective of collective action is less or greater control of the acts of individuals. Which results in either gains or losses in the process of executing joint transactions. Control is about prohibitions of certain acts in such a way that the control of one person or organization leads to the liberty of others and hence better gains.

According to Commons (1931), these institutions establish relationships of rights, duties, no rights, and no duties which influence the behavior of individuals. ‘The major role of institutions in society is to reduce uncertainty by establishing a stable (not necessarily efficient) structure to human interaction.’ Institutions could be formal and have explicit rules, contracts, laws, and rights (institutional arrangements) or informal in the sense of social conventions that are not designed by anybody.

Therefore organizations should set an appropriate institutional framework. That will bind and influence the behavior of employees toward an organizational commitment to excellence. Also, put by Brunsson (1999): ‘the process of standardization of procedures affect behavior’. Employment contracts, performance agreements, and other employment-related instruments should, therefore, see as useful aspects of human resource management.

Transaction cost theory:

Transaction cost theory is based on the economic view of the costs of conducting business transactions. The thesis is that companies will grow if the costs of exchanging resources in the company are cheaper in comparison to competitors. Such costs include bureaucratic employment structures, procedures, and the enforcement of employment contracts. For that matter employment relationships that may lead to high costs of exchange, should minimize.

Comparative advantage theory:

The main architect of comparative advantage theory is the economist David Ricardo. Who talked about the specialization and division of labor among nations and firms. Ricardo postulated that nations should produce goods in which they have a domestic comparative advantage over others. Since then, organizations and nations have focused on strengthening internal capacity to have more advantages relative to competitors and hence to reduce production and distribution costs per unit. Improving internal capacities include having the best human resources that best utilize to produce cheaper and better quality goods and services.

General systems theory:

No organization can survive without interacting with its environment. Organizations get inputs from the external environment, and the process and the outputs are released to the external environment. Which provides feedback to the organization. As well as, Customers who are part of the environment will give feedback by using different means including value judgment on quality, price, style, and fashion.

Therefore organizations see as systems with components and parts that relate and interconnect in such a manner that the failure of a component or part leads to the failure of another. The system approach to understanding organizations considers the human resource department. As a component of the organization’s system that also has other departments such as accounting, engineering, marketing, etc.

For the organization to grow and remain competitive, each department, section, or unit should support each other. One of the organization’s inputs from the environment is human resources. For example, if an organization makes an error with its recruitment strategy. It will hurt the whole organization.

Similarly, if at the input processing stage, human resources do not utilize in the best possible way. The same will reflect in the quality and price of goods and services through feedback mechanisms. This may include the failure to sell goods or services at the expected prices.

Human capital theory:

The human capital theory was initially well developed by Becker (1964) and it has grown in importance worldwide because it focuses on education and training as a source of capital. It is now widely acknowledged that one of the key explanations for the rapid development of Asian countries in the 1970s and 80s is the high investment in human capital.

Human capital theory changes the equation that training and development are ‘costs the organization should try to minimize into training and development as ‘returnable investments’ which should be part of the organizational investment capital. Therefore, human resource training and development decisions and evaluations have to do based on clearly developed capital investment models.

Strategic contingency theory:

There is a growing body of knowledge stipulating that since an organization operates and thrives in a complex environment, managers must adopt specific strategies that will maximize gains and minimize risks from the environment.

In this premise, the theory contends that there is no one best strategy for managing people in organizations. Overall corporate strategy and the feedback from the environment will dictate the optimal strategies, policies, objectives, activities, and tasks in human resource management.

Organizational change theory:

Gareth (2009: 291) defines organizational change as the process by which organizations move from their present state to some desired future state to increase their effectiveness. Organizations change in response to many developments taking place in the internal and external environment. Such as technology, policies, laws, customer tests, fashions, and choices that influence peoples’ attitudes and behavior.

These developments influence different aspects of human resource management and in response, organizations have to change the way organizational structure, job design, recruitment, utilization, development, reward, and retention are managed. The organizational change theory suggests the improvement of organizational change and performance by using diagnostic tools appropriate for the development of an effective change strategy in human resource management.

Organizational learning theory:

Globalization has changed knowledge monopoly. Knowledge generated in one part of the world spreads faster than a decade ago. Today, what matters for organizational competitiveness is the ability to learn from emerging knowledge and adapt the learning to suit the organizational environment faster than others.

Agyris & Schoen (1978) and Senge (1992) have emphasized the importance of total organizational learning whereby individuals and teams muster knowledge related to their work and the environment. And, share with the common vision, models, and strategies for addressing the present and future of the organization.

Therefore, poor organizational learning leads to poor organizational adaptation to the environment and less competitiveness. Which leads inevitably to decline and ultimate collapse.

Comparison:

Schuler (2000) has summarised these theories into a more manageable framework (see Table 1). This framework enables us to compare human resource theories and their main objectives.

Table 1: Human resource management theorists or theories.

Human resource theories

Source: adapted from Schuler (2000).

Theories, as stated earlier and summarized in Table 1, are useful in shaping debates and professional practice in the process of evolution. And, the development of human resource management as a discipline as well as a profession. The usefulness of the conclusions reached from these theories will unfold. As we go through the process of the evolution of human resource management over the past hundred years.

Guide to Theorists or Theories in Human Resource Management

May 19, 2018
Different types Theories of Organization
Here are Different types Theories of Organization

First, remembering What is an Organization? it is very helpful for understanding Theories of Organization “An organized group of people with a particular purpose, such as a business or government department. The action of organizing something, the quality of being systematic and efficient. The way in which the elements of a whole are arranged.”

Organization theory means the study of structure, functioning, and performance of an organization and the behavior of individuals and groups in it. 14 Principles of Management by Henri Fayol.

The Five type theories of Organization are:
1. Classical theory
2. Neo-classical theory
3. Modern theory
4. Motivation theory
5. Decision theory

Now, Explanation of each Theory following are;

Classical Theory

It was found by F.W.Taylor, father of scientiﬁc management.

This theory is base on the following four principles

Division of labor: The production of a commodity is divide into the maximum number of different divisions. The work of each division is look after by different persons. Each person is specialize in a particular work. In other words, the work is assign to a person according to his specialization and the interest he has in the work. The division of labor results in the maximum production or output with minimum expenses incurred and minimum capital employed.

Scalar and functional processes: The scalar process deals with the growth of organization vertically. The functional process deals with the growth of organization horizontally. The scalar principles refer to the existence of the relationship between superior and subordinate. In this way, the superior gives instructions or orders to subordinates of various levels of management and gets back the information from the subordinate regarding the operations carried out at different levels or stages. This information is used for the purpose of taking the decision or remedial action to achieve the main objectives of the business.

The scalar chain means the succession of domination by the superior on the subordinate from the top to the bottom of an organization. The line of authority is base on the principle of unity of command which means that each subordinate does work under one superior only. Reward Strategy with Developing System for Your Organization.

Structure: The organization structure may deﬁne as the prescribe patterns of work-related behavior of workers which result in the accomplishment of organizational objectives. Specialization and coordination are the main issues in the design of an organizational structure.

The span of control: It means an effective supervision of a maximum number of persons by a supervisor.

To summarize, classical theory emphasizes the unity of command and principle of coordination. Most of the manager’s time is wasted in coordination and control of the subordinates. According to Lyndall Urwick, “A superior can supervise a maximum of four members at higher levels and between 8-12 members at lower levels to constitute an ideal span of control.”

Characteristics of classical theory
- It is base on the division of labor.
- It’s base on objectives and tasks of the organization.
- Concerns with the formal organization.
- It’s base on the coordination of efforts.
- Division of labor has to balance by unity of command.
- It ﬁxes a responsibility and accountability for work completion.
- It is centralize.
Neo-classical Theory

It is developed to ﬁll up gaps and deﬁciencies in the classical theory and is concerns with human relations movement. The study of an organization is base on human behavior such as how people behave and why they do so in a particular situation. The main contribution of this theory highlights the importance of the committee management and better communication. Further, this theory emphasizes that the workers should encourage and motivate to evince active participation in the production process. The feelings and sentiments of the workers should be taken into account and respect before any change is introduce in the organization. The classical theory was production oriented while neo-classical theory was people oriented.

Contributions of neo-classical theory
- A person should the basis of an organization.
- Organization should be view as a total unit.
- Individual goals and organization goals should integrate.
- Communication should move from bottom to top and from top to bottom.
- People should allow to participate in ﬁxing work standards and decision making.
- The employee should given more power, responsibility, authority and control.
- Members usually belong to formal and informal groups and interact with others within each group or sub-group.
- The management should recognize the existence of the informal organization.
- The members of sub-groups are attach with common objectives.
Modern Organization Theory

This theory is compose of the ideas of different approaches to management development. The approach is fully base on empirical research data and has an integrating nature. The approach reﬂects the formal and informal structure of the organization and due weight age is giving to the status and roles of personnel in an organization.

1. The modern theory studies the individuals in aggregates and the movement of individuals in and out of the system.
2. It studies the interaction of individuals with the environment found in the system.
3. It studies the interaction among individuals in the system.

Modern theories include the systems approach, the socio-technical approach, and the contingency or situational approach.

Systems approach: It considers the organization as a system composed of a set of inter-related and thus mutually dependent sub-systems, linking processes and goals.

Socio-technical approach: It considers the organization as composed of a social system, technical system, and its environment. These interact among themselves and it is necessary to balance them appropriately for the effective functioning of the organization.

Contingency or situational approach: It recognizes that organizational systems are inter-relate with their environment and that different environments require different organizational relationships for effective working of the organization.

The following are essentials of modern theory
1. It views the organizations as a whole.
2. It’s base on systems analysis.
3. The ﬁndings of this theory are base on empirical approach.
4. Integrating into nature.
5. Gives importance to inter-disciplinary approach to organizational analysis.
6. Concentrates on both quantitative and behavioral sciences.
7. It’s not a uniﬁed body of knowledge.
Motivation Theory

It is concerned with the study of work motivation of employees of the organization. The works are perform effectively if proper motivation is giving to the employees. The motivation may be in monetary as well as non-monetary terms, the inner talents of any person can identifies after giving adequate motivation to employees.

Decision Theory

This theory was giving by Herbert A. Simon who was award Nobel Prize in the year 1978 for it. He regarded organization as a structure of decision makers. The decisions was taking at all levels of the organization and important policy decisions was taking at higher levels of the organization. Simon suggest that the organizational structure is design through an examination of the points at which decisions must made and the persons from whom information is require if decisions should satisfactory.
December 4, 2017
What are Managerial Skills?

What are Managerial Skills?

Managerial Skills; A skill is an individual’s ability to translate knowledge into action. Hence, it is manifested in an individual’s performance. Skill is not necessarily inborn. It can be developed through practice and through relating learning to one’s own personal experience and background. In order to be able to successfully discharge his roles, a manager should possess three major skills. These are conceptual skill, human relations skill and technical skill. Conceptual skill deals with ideas, technical skill with things and human skill with people. While both conceptual and technical skills are needed for good decision-making, human skill in necessary for a good leader.

The conceptual skill refers to the ability of a manager to take a broad and farsighted view of the organization and its future, his ability to think in abstract, his ability to analyze the forces working in a situation, his creative and innovative ability and his ability to assess the environment and the changes taking place in it. It short, it is his ability to conceptualize the environment, the organization, and his own job, so that he can set appropriate goals for his organization, for himself and for his team. This skill seems to increase in importance as manager moves up to higher positions of responsibility in the organization.

The technical skill is the manager’s understanding of the nature of the job that people under him have to perform. It refers to a person’s knowledge and proficiency in any type of process or technique. In a production department, this would mean an understanding of the technicalities of the process of production. Whereas this type of skill and competence seems to be more important at the lower levels of management, its relative importance as a part of the managerial role diminishes as the manager moves to higher positions. In higher functional positions, such as the position of a marketing manager or production manager, the conceptual component, related to these functional areas becomes more important and the technical component becomes less important.

Human relations skill is the ability to interact effectively with people at all levels. This skill develops in the manager sufficient ability (A) to recognize the feelings and sentiments of others; (B) to judge the possible actions to, and outcomes of various courses of action he may undertake; and (C) to examine his own concepts and values which may enable him to develop more useful attitudes about himself. This type of skill remains consistently important for managers at all levels.

A table gives an idea about the required change in the skill-mix of a manager with the change in his level. At the top level, technical skill becomes least important. That is why people at the top shift with great ease from one industry to another without an apparent fall in their efficiency. Their human and conceptual skills seem to make up for their unfamiliarity with the new job’s technical aspects.

A Table of Skill-Mix of different Management levels and Managerial Skills

Explanation of Managerial Skills

(I) Conceptual skills: Conceptual skills are skills that allow a person to think creatively while also understanding abstract ideas and complicated processes. A person who has conceptual skills will be able to solve problems, formulate processes and understand the relationship between ideas, concepts, patterns and symbols.

Conceptual skills are used frequently in the business world where managers can use their ability to conceptualize to view and visualize the entire company that they work for in order to develop the best plans for the business’s success. Most companies consider conceptual skills to be a requirement for their management staff.

Conceptual Skills

Some people are born with conceptual skills and have an intuitive sense while others must acquire the skill through learning. Other common skills valued with conceptual thinking include critical thinking, implementation thinking, innovative thinking and intuitive thinking.

For those individuals who are not born with an innate sense of these skills, there are ways to develop the skill set. In an individual’s personal life and professional life, these skills can be developed by first taking the time to look around. Observing the way that other people and other businesses implement strategies as well as reading related publications (in the individual’s field or hobby area) can help increase the range of possibilities a person sees. Then, an individual must be willing to change direction and to pursue new goals whenever an opportunity arises that makes sense. If a problem occurs, do not look for the simple and fast fix. Look for a lasting solution instead that is a best-case scenario.

(II) Human Relations Skills: Human Relations Skills is Interpersonal skills, Interpersonal skills are often called “people skills” because they describe a person’s ability to interact with other people in a positive and cooperative manner. Unlike technical skills that people attend school for, interpersonal skills are considered soft skills that are typically developed over time through interactions.

Human Relations Skills or Interpersonal Skills

Having good interpersonal skills is desired in most careers. The best members of a team often have strong skills that help them communicate and problem solve with other people in an organization. There is a long list of interpersonal skills, but among the most important for working in a team or workplace are conflict resolution, communication, problem solving and patience.

(III) Technical Skills: Technical skills are a person’s abilities that contribute directly to the performance of a given job, such as the computer, engineering, language and electrical skills. Someone with excellent abilities in any of these technical areas has the potential to secure a career in a related field.

Technical Skills

A person with technical writing abilities may get a job creating instruction manuals for complex products and equipment. A data expert may get a specialized job in database management or data analysis. A person with crafting abilities may get a job assembling fabrics or other products. Someone with excellent skills in automobile mechanics may get a position in an automobile repair shop.

Other Managerial Skills also Important

Communication Skills: Communication skills are required equally at all three levels of management. A manager must be able to communicate the plans and policies to the workers. Similarly, he must listen and solve the problems of the workers. He must encourage a free-flow of communication in the organization.

Administrative Skills: Administrative skills are required at the top-level management. The top-level managers should know how to make plans and policies. They should also know how to get the work done. They should be able to coordinate different activities of the organization. They should also be able to control the full organization.

Leadership Skills: Leadership skill is the ability to influence human behavior. A manager requires leadership skills to motivate the workers. These skills help the Manager to get the work done through the workers.

Problem Solving Skills: Problem-solving skills are also called as Design skills. A manager should know how to identify a problem. He should also possess an ability to find the best solution for solving any specific problem. This requires intelligence, experience and up-to-date knowledge of the latest developments.

Decision Making Skills: Decision-making skills are required at all levels of management. However, it is required more at the top-level of management. A manager must be able to take quick and correct decisions. He must also be able to implement his decision wisely. The success or failure of a manager depends upon the correctness of his decisions.

February 15, 2017
What are Managerial Roles and His Job?
What are Managerial Roles and His Job?

Management performs the functions of planning, organizing, staffing, directing and controlling for the accomplishment of organizational goals. Any person who performs these functions is a manager. The first line manager or supervisor or foreman is also a manager because he performs these functions. The difference between the functions of top, middle and lowest level management is that of degree. For instance, top management concentrates more on long-range planning and organization, middle-level management concentrates more on coordination and control and lowest level management concentrates more on direction function to get the things done from the workers.

Every manager is concerned with ideas, things, and people. Management is a creative process for integrating the use of resources to accomplish certain goals. In this process, ideas, things, and people are vital inputs which are to be transformed into output consistent with the goals.

Management of ideas implies the use of conceptual skills. It has three connotations. First, it refers to the need for the practical philosophy of management to regard management as a distinct and scientific process. Second, management of ideas refers to the planning phase of the management process. Lastly, management of ideas refers to distinction and innovation. Creativity refers to a generation of new ideas, and innovation refers to transforming ideas into viable relations and utilities. A manager must be imaginative to plan ahead and to create new Ideas.

Management of things (non-human resources) deal with the design of production system, and acquisition, allocation, and conversion of physical resources to achieve certain goals. Management of people is concerned with procurement, development, maintenance and integration of human resources in the organization. Every manager has to direct his subordinates to put the organizational plans into practice.

The greater part of every manager’s time is spent in communicating and dealing with people. His efforts are directed towards obtaining information and evaluating progress towards objectives set by him and then taking corrective action. Thus, a manager’s job primarily consists of management of people. Though it is his duty to handle all the productive resources, but the human factor is more important. A manager cannot convert the raw materials into finished products himself; he has to take the help of others to do this. The greatest problem before any manager is how to manage the personnel to get the best possible results. The manager in the present age has to deal efficiently with the people who are to contribute to the achievement of organizational goals.

Peter F. Drucker has advocated that the managerial approach to handling workers and work should be pragmatic and dynamic. Every job should be designed as an integrated set of operations. The workers should be given a sufficient measure of freedom to organize and control their work environment. It is the duty of every manager to educate, train and develop people below him so that they may use their potentialities and abilities to perform the work allotted to them. He has also to help them in satisfying their needs and working under him, he must provide them with the proper environment. A manager must create a climate which brings in and maintains satisfaction and discipline among the people. This will increase organizational effectiveness.

Recently, it has been questioned whether planning, organizing, directing and controlling provides an adequate description of the management process. After an intensive observation of what five top executives actually did during the course of a few days at work, Henry Mintzberg concluded that these labels do not adequately capture the reality of what managers do. He suggested instead that the manager should be regarded as playing some ten different roles, in no particular order.

Role Performed by Managers

What is Role Performed by Managers? Mostly manager has used three types roles on company or business: 1) Interpersonal Roles as used by heart, 2) Informational Roles also used by talking, and 3) Decisional Roles is mostly used by the brain. Following roles are explained here;

Managerial Role is three types of company or business; 1) Interpersonal Roles as used by heart, 2) Informational Roles also used by talking, and 3) Decisional Roles is mostly used by the brain.
1. Interpersonal Roles
Figurehead: In this role, every manager has to perform some duties of a ceremonial nature, such as greeting the touring dignitaries, attending the wedding of an employee, taking an important customer to lunch and so on.

Leader: As a leader, every manager must motivate and encourage his employees. He must also try to reconcile their individual needs with the goals of the organization.

Liaison: In this role of liaison, every manager must cultivate contacts outside his vertical chain of command to collect information useful for his organization.
1. Informational Roles
Monitor: As the monitor, the manager has to perpetually scan his environment for information, interrogate his liaison contacts and his subordinates, and receive unsolicited information, much of it as result of the network of personal contacts he has developed.

Disseminator: In the role of a disseminator, the manager passes some of his privileged information directly to his subordinates who would otherwise have no access to it.

Spokesman: In this role, the manager informs and satisfies various groups and people who influence his organization. Thus, he advises shareholders about financial performance, assures consumer groups that the organization is fulfilling its social responsibilities and satisfies the government that the origination is abiding by the law.
1. Decisional Roles
Entrepreneur: In this role, the manager constantly looks out for new ideas and seeks to improve his unit by adapting it to changing conditions in the environment.

Disturbance Handler: In this role, the manager has to work like a firefighter. He must seek solutions to various unanticipated problems – a strike may loom large a major customer may go bankrupt; a supplier may renege on his contract, and so on.

Resource Allocator: In this role, the manager must divide work and delegate authority among his subordinates. He must decide who will get what.

Negotiator: The manager has to spend considerable time in negotiations. Thus, the chairman of a company may negotiate with the union leaders a new strike issue, the foreman may negotiate with the workers a grievance problem, and so on.

In addition, managers in any organization work with each other to establish the organization’s long-range goals and to plan how to achieve them. They also work together to provide one another with the accurate information needed to perform tasks. Thus, managers act as channels of communication with the organization.
February 15, 2017
What are Levels of Management?

What are Levels of Management?

An enterprise may have different levels of management. Levels of management refer to a line of demarcation between various managerial positions in an enterprise. The levels of management depend upon its size, technical facilities, and the range of production. We generally come across two broad levels of management, viz. (I) administrative management (i.e., the upper level of management) and (II) operating management (i.e., the lower level of management). Administrative management is concerned with “thinking” functions such as laying down policy, planning and setting up of standards. Operative management is concerned with the “doing” function such as an implementation of policies and directing the operations to attain the objectives of the enterprise.

But in actual practice, it is difficult to draw any clear-cut demarcation between thinking function and doing function. Because the basic/fundamental managerial functions are performed by all managers irrespective of their levels or, ranks. For instance, wage and salary director of a company may assist in fixing wages and salary structure as a member of the Board of Directors, but as head of wages and salary department, his job is to see that the decisions are implemented.

The real significance of levels is that they explain authority relationships in an organization.

Considering the hierarchy of authority and responsibility, one can identify three levels of management namely

(I) Top management of a company consists of owners/shareholders, Board of Directors, its Chairman, Managing Director, or the Chief Executive, or the General Manager or Executive Committee having key officers.

(II) Middle management of a company consists of heads of functional departments viz. Purchase Manager, Production Manager, Marketing Manager, Financial controller, etc. and Divisional and Sectional Officers working under these Functional Heads.

(III) Lower level or operative management of a company consists of Superintendents, Foremen, Supervisors, etc.

1) Top management: Top management is the ultimate source of authority and it lays down goals, policies and plans for the enterprise. It devotes more time on planning and coordinating functions. It is accountable to the owners of the business of the overall management. It is also described as the policy making group responsible for the overall direction and success of all company activities.

The important functions of top management include:

(A) To establish the objectives or goals of the enterprise.

(B) To make policies and frame plans to attain the objectives laid.

(C) To set up an organizational framework to conduct the operations as per plans.

(D) To assemble the resources of money, men, materials, machines and methods to put the plans into action.

(E) To exercise effective control of the operations.

(F) To provide overall leadership to the enterprise.

2) Middle management: The job of middle management is to implement the policies and plans framed by the top management. It serves as an essential link between the top management and the lower level or operative management. They are responsible for the top management for the functioning of their departments. They devote more time on the organization and motivation functions of management. They provide the guidance and the structure for a purposeful enterprise. Without them, the top management’s plans and ambitious expectations will not be fruitfully realized.

The following are the main functions of middle management:

(A) To interpret the policies chalked out by top management.

(B) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies.

(C) To recruit and select suitable operative and supervisory staff.

(D) To assign activities, duties, and responsibilities for timely implementation of the plans.

(E) To compile all the instructions and issue them to supervisor under their control.

(F) To motivate personnel to attain higher productivity and to reward them properly.

(G) To cooperate with the other departments for ensuring a smooth functioning of the entire organization.

(H) To collect reports and information on performance in their departments.

(I) To report to top management.

(J) To make suitable recommendations to the top management for the better execution of plans and policies.

3) Lower or operative management: It is placed at the bottom of the hierarchy of management, and actual operations are the responsibility of this level of management. It consists of foreman, supervisors, sales officers, accounts officers and so on. They are in direct touch with the rank and file or workers. Their authority and responsibility are limited. They pass on the instructions of the middle management to workers.

They interpret and divide the plans of the management into short-range operating plans. They are also involved in the process of decision-making. They have to get the work done through the workers. They a lot various jobs to the workers, evaluate their performance and report to the middle-level management. They are more concerned with direction and control functions of management. They devote more time in the supervision of the workers.

February 14, 2017