Executives and Effectiveness...

Executives and Effectiveness It is not generally enough for an executive to be intelligent, to work hard or to be knowledgeable for being effective. Effectiveness is something which is different and distinct. But to be effective, the executive does not need special assistances, aptitude, or training. He is required to do certain and fairly simple things. These simple things consist of a few practices which are not inherited. These things are required to be learned. After learning, these things are to be practiced until they become habits. The executive, who works for becoming an effective executive, always succeeds in doing so. Effectiveness can be learned and for an executive to be effective it is necessary that he learns effectiveness. Effectiveness is what executives always need for their performance at work. Without effectiveness there is no performance, no matter how much intelligence and knowledge goes into the work, no matter how many hours it takes. Yet it is perhaps very surprising that very little attention is paid by executives towards effectiveness. In the present day environment, an executive is expected to spend all of his working life in an organization of some kind. His effectiveness depends increasingly on his ability to be effective in the organization, to be effective as an executive and to have abilities to perform. Perhaps even his ability to survive in the organization increasingly depends on how effective executive he is for the organization. As a matter of fact, effectiveness for an executive is a key requirement for his individual achievements and accomplishments. It is the prime requirement for him to carry out his job efficiently. Since he is expected first of all to get the right things done, which simply means that he is expected to be effective. But usually...

Effective Decisions

Effective Decisions Making a decision is comparable to giving a verdict. It is a choice between different alternatives. It is seldom a choice between wrong and right. It is mostly a choice between ‘almost right’ and ‘perhaps wrong’. It is very often a choice between two courses of action neither of which can be considered more correct than the other. Most of the literature on decision making advises that the decision maker is to find the facts first. But it is also a point that management executives who make effective decisions are aware that one does not start with facts. Instead, they start with opinions. These opinions are, naturally, nothing but untested suppositions and, hence, worthless unless tested against reality. To determine what is a fact, requires first a decision on the criteria of relevance, especially on the suitable measurement. This is the core of the effective decision, and usually it is the most controversial aspect. Further, most of the literature on decision making states that the effective decisions flow from a consensus on the facts. To the contrary, the understanding which underlies the right decision grows out of the clash and conflict of divergent opinions and out of the serious consideration of competing alternatives. To obtain the facts first is impossible. There are no facts unless one has a norm of relevance. Events by themselves are not facts. As an example, the taste or colour of a substance is not a fact in physics, while in cooking the taste is a fact of highest importance, and in painting, the colour matters the most. Physics, cooking, and painting consider different things as relevant and therefore consider different things to be facts. Executive, who is making effective decisions, also knows that people do not start...

Organizational Productivity by Harnessing the Strength...

Organizational Productivity by Harnessing the Strength  Effective organizational management achieves the productivity by harnessing the strengths available in the organization (Fig 1). It is aware that it cannot build on weaknesses. To achieve results, it has to use all types of the available strengths in the organization which include the strengths of the non-executives, the strengths of the executives, and its own strengths. These strengths are the true opportunities. After all, the unique purpose of the organization is to make strength productive. It cannot, of course, overcome the weaknesses with which the organizational employees are generally having with them, but it can always make these weaknesses irrelevant. It is to strive for using the strength of each employee as a building block for the enhancement of the organizational productivity. Fig 1 Organizational productivity by harnessing the strength The major area in which the effective management encounters the challenge of strength is in its function of staffing. The effective management fills positions and promotes people on the basis of what the employee can do. It does not make staffing decisions to minimize the weaknesses of the organization but to maximize the strengths. Such management makes effective appointments since it selects people for their tested abilities and not for the absence of a weakness. It staffs people for their strengths though they may have weaknesses which are to be ignored. The people having narrow but very great strength normally bring success to the organization. If the management tries to place a person or staff the organization to avoid weakness then it ends up at best with mediocrity. The idea that there are ‘well-rounded’ people, people who have only strengths and no weaknesses (whether the term used is the ‘complete man’, ‘mature personality’, ‘well-adjusted personality’, or ‘generalist’)...

Elements of Decision making...

Elements of Decision making One of the important tasks of an executive is the decision making. It generally takes a small fraction of his time. Nevertheless the decision making is a very important aspect of his work since the decisions he makes by virtue of his position, knowledge or experience have significant impact on the entire organization, its performance, and the results. Hence, executives to be effective are to make wise decisions. They are to make the decisions as a systematic process with clearly defined elements and in a distinct sequence of steps. For an effective decision making, the executive is to normally concentrate on those important and strategic decisions which have big impact for the organization. These strategic decisions need to have the highest level of conceptual understanding. The executive is required to find the constants in a situation and is to apply his skill to manipulate a great many variables arising out of the chaotic thinking in order to make an effective decision. He is to know what the decision is all about and what the underlying realities are which the decision is required to satisfy. The executive is to look out for impact rather than the technique. He is to ensure that the decision he makes needs to be sound rather than clever. An executive while making a decision is required to know whether the decision is to be based on principle or it is to be made on the merits of the case and logically. He is to be aware that the trickiest decision is the one which is between the right and the wrong compromise he has to make and he is to be able to judge one from the other. Further, the executive is to be aware that...

Financial planning and its elements...

Financial planning and its elements Financial planning is an implement which allows evaluation of the current financial situation of the organization and predicting of its future financial performance. One of the objectives of the financial planning is to determine funds requirements and capital structure in order to understand the financial soundness of the organization. In addition to it, financial planning process helps the organizational management in framing of the financial policies for the control of the cash flow as well as in ensuring that the organization is employing its financial resources in the most efficient manner. Further, the financial planning demonstrates the direction of the organizational activities and analyses how each action has its influence on the financial stability of the organization. Also, financial planning helps the organizational management to make a decision about investments since it shows different ratios (such as equity ratio, debt ratio etc.). These ratios play an important role in the decision making process. Financial plan consists of four elements. These elements are (i) profit and loss projection, (ii) projected balance sheet, (iii) projected cash flow, and (iv) break-even analysis. These four elements are shown in Fig 1. Fig 1 Four elements of financial plan Profit and loss projection Profit and loss projection presents the plan of revenues and expenses of the organization over the specific accounting period. Profit and loss projection follows the same pattern as the profit and loss statement. Nonetheless, it reflects the data about the future. The presentation of the profit and loss statement differs from organization to organization.  However, the basic structure includes the basic five measures namely (i) gross profit, (ii) operating profit or earnings before interest and tax (EBIT), (iii) operating profit or earnings before interest, tax, depreciation and amortization (EBITDA), (iv) profit...

Marketing, Marketing Plan and its Elements...

Marketing, Marketing Plan and its Elements Marketing refers to the activities of the organization associated with promoting and selling of its products and services. It includes advertising, selling, delivering products to the customers, and market research. In fact, it is everything which the organization does to acquire customers and maintain a relationship with them. An efficient marketing cultivates sound business strategies, allows for successful innovation, increases the effectiveness of promotional strategies, and strengthens the brand image. The main purpose of the marketing is not only to maintain the relationship with existing ones but also to attract new customers. The process of interaction between the marketing men and the customers presents the dialogue between them and assumes the exchange of values. Marketing plan is one of the major and extremely significant of the organizational business planning process since it is the marketing which brings success in the long term, particularly, continuous growth in the earnings of the organization. Marketing plan has an input in defining efficiency in customer satisfaction terms.  It also helps to identify core products/services which meet the needs of the target segments of the organization. For understanding the theory related to the marketing and the marketing plan it is first necessary to understand its elements. These elements are (i) marketing mix, (ii) branding strategy, (iii) competitor and market analysis, (iv) customer decision making process, and (v) sales plan. Marketing mix Marketing mix is a theoretical framework which defines four indicators in arranging the offerings to meet the needs of the customers. These indicators are (i) product, (ii) place, (iii) price, and (iv) promotion. These indicators are also known as 4 Ps. The concept of 4 Ps is considered to be powerful due to the reason that it makes marketing process simpler and allows having...