Management Development...

Management Development The development of executives in an organization is necessary for its present smooth functioning as well as for its proper functioning in future. The development of the executives takes place along two lines (Fig 1). The first consists of enhancing his knowledge towards technologies and technological skills which are changing very fast in today’s environment. The second consists of developing his managerial abilities so that he can function in higher managerial positions ably and in a responsible manner. Fig 1 Two lines for development of executives In the present day environment it is necessary for every organization to give serious thought to the development of its executives in various management techniques. The performance and the efficiency of the executives are greatly enhanced if they are well versed with the techniques of management. Hence the organizational management is required to give importance to the management development activities. Basic organizational decisions need an increasingly long lead time. Since no one can foresee the future, management cannot make rational and responsible decisions unless it selects, develops, and tests the executives who are to take care of these decisions in future, since these executives are going to become managers in the coming future and are going to run the organization. The executives need to have managerial abilities. They need to have along with the theoretical knowledge, the ability to organize and to lead. They need to know how to make decisions and what the managerial control techniques are. Management development programs develop the executives of today into efficient managers of tomorrow. These programs ensure continuity in the organization, which is a vital aspect for the efficient running of the organization, especially in a large organization where this need is more essential. The organization being a wealth...

Dissecting of the Organization and Management Functions...

Dissecting of the Organization and Management Functions An organization is a corporate enterprise which is created by people and managed by people. Various types of forces act upon it. Economic forces set limits for the management for achievements. They create opportunities for management for the action. But these forces do not by themselves determine the nature of the organization and what it has to do. Management does not adapt the organization to the forces of the market. On the contrary it has to find these forces and has to create them. It requires enormous efforts on the part of the management and a huge time to bring changes in the basic nature of the organization for ensuring its growth and success. In fact, how the management makes decisions determines whether the organization is going to continue to prosper or to decline, to survive or eventually to perish. And this is true for successive managements of the organization. Profit and profitability are crucial for the organization. Profitability is not the purpose of but a limiting factor on the organizational activities. Profit is not the explanation, cause, or rationale of the organizational behaviour and decisions, but the test of their validity. All the persons who occupy the directors’ chairs are to be concerned with profitability. The first test of any organization is not the maximization of profit but the achievement of sufficient profit to cover the risks of economic activity and thus to avoid loss. Further, there is the prevailing belief that there is an inherent contradiction between profit and the organization’s ability to make a social contribution. Actually, an organization can make a social contribution only if it is highly profitable. To put it crudely, a bankrupt organization is not likely to be a good...

Employee Relationship Management...

Employee Relationship Management Employees are the major assets of an organization. They are among the organization’s most important audiences with the potential to be its most effective ambassadors. It is essential that the employees perform together as a collective unit and contribute equally towards the realization of a common goal. Employees share a certain relationship with their colleagues at the workplace. The relationship which the employees can have can be between co-employees, supervisors, managers and higher management. It is important that the employees share a healthy relationship for delivering their best performances. Employees are the focal point of an organization during its journey towards success. If the employees work together and share a good relationship with management then the organization achieves its tasks and objectives much faster. Management of the employee relationship is both important and valuable for the organization in the achievement of the competitive advantage. It is necessary to have a strong relationship between employees as well as between employees and management since it leads to better organizational productivity and performance. Employee relationship management (ERM) is a term which refers to relationship development and management between the organizational management and the employees. There are a lot of different issues in ERM which can affect employee satisfaction and which has a direct result on employees’ productivity and overall corporate culture. ERM refers to managing the relation between the different employees of the organization. The relationship can be between employee and the management as well as between employees at the same level. It is nothing but a technique which brings employees and management together on a common platform and guides them so that the organization achieves the desired targets without fighting with each other. In a layman’s language, ERM is nothing but managing interaction...

Diversification Strategy...

Diversification Strategy A diversification strategy is the strategy that an organization adopts for the development of its business. This strategy involves widening the scope of the organization across different products and market sectors. The strategy is to enter into a new market or industry which the organization is not currently in, whilst also creating a new product for the new market. Diversification strategy is a form of growth strategy which helps the organizational business to grow. It opens up new possibilities for the organization. By adopting this strategy, the organization not only diversifies its products offerings in the target markets but also expands its business horizons. The strategy helps the organization to increase sales volume and revenues while keeping costs to minimum. Diversification is part of the four main growth strategies defined by Igor Ansoff’s Product/Market matrix (Fig 1). The other three strategies in this matrix are market penetration, product development, and market development. Ansoff pointed out that a diversification strategy stands apart from the other three strategies. These other three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires an organization to acquire new skills, new techniques and new facilities. Fig 1 Igor Ansoff’s Product/Market matrix Growth strategies adopted through diversification involve a significant increase in performance objectives beyond past levels of performance. Many organizations pursue one or more types of growth strategies. One of the primary reasons is the view held by many investors that ‘bigger is better’. Growth in sales is often used as a measure of performance based on the assumption that if sales increase, profits will eventually follow. Diversion strategy is associated with higher risks as it requires the organization to take on new experience and...