Management of an Organization and Management Techniques...

Management of an Organization and Management Techniques Management of an organization is not a simple activity. On the contrary it is quite complex. Both internal and external factors affect the organizational functioning. Further there are several areas and elements which are required to be managed. Sometimes functioning of an area may appear to be in conflict with the functioning of other area. Smooth functioning of the organization depends on how the management of these different areas and elements are conducted. There are specific management techniques for each area and element. There are other techniques which may encompass entire organization. If these techniques are followed, it aids the proper and healthy functioning of the organization. Management of an organization (Fig 1) can be broadly divided into two areas. These areas of management are (i) management of organizational internal elements which have impact on the organizational functioning, and (ii) management of organizational functions where the organization comes in contact with external agencies. Internal organizational elements for management normally include (i) operational management which is the key to the existence of the organization, (ii) financial management for making the organization healthy financially, (iii) human resource management which deals with the management and development of the employees, (iv) management of organizational future which takes care for the future of the organization in the context of fast changing environment, and (v) management of safety, security and welfare which takes care of the employees’ safety, protection of the organizational properties and the external needs of the employees. Organizational functions involving external agencies are (i) sales and purchase functions involving customers and suppliers, (ii) complying with regulations and laws where the organization comes in touch with regulatory authorities and government, (iii) societal functions where the organization comes in touch with society,...

Benchmarking process

Benchmarking process An organization to be successful needs to evaluate its performance in a consistent manner. In order to do so, the organization is to set standards for itself, and measure its processes and performance against recognized leaders in the field or against best practices from other fields, which operate in a similar environment. This process is normally known as benchmarking in management parlance. The objective of benchmarking is to find examples of superior performance and to understand the processes and practices driving that performance. Organization then improves its performance by tailoring and incorporating these best practices into its own operations—not by imitating, but by innovating. Performances which are normally measured are quality, time and cost. During the benchmarking exercise the organization learns the new processes which are superior to the processes being presently followed by them. By implementing these new processes the organization improves its performance. Organizations use benchmarking technique for the following objectives. To improve its performance To understand relative cost position and to identify opportunities for improvement To gain strategic advantage by focusing capabilities critical to building strategic advantage To increase the rate of organizational learning since the benchmarking exercise brings new ideas and facilitates experience sharing The benchmarking process is relatively uncomplicated. Some knowledge and a practical dent is all that is needed to make such a process, a success. Further benchmarking should not be considered as one time exercise. To be effective, it must a continuous process and should become an integral part of an ongoing improvement process with the goal of keeping abreast of ever improving best practice. Types of benchmarking Benchmarking process can be an internal process (comparing performance between different groups or teams within the organization) or an external process (comparing performance with other organizations working in similar environment)....