Quality of Decisions and Organizational Performance...

Quality of Decisions and Organizational Performance Quality of decisions made is very important for the smooth functioning of an organization. It is a known fact that decision making is not just about selecting the right choices or compromises. Unless a decision has degenerated into work, it is not a decision. It is at best a good intention. Decisions made become effective only after they are implemented. Organizational management is required to make a large number of decisions on a continuous basis. These decisions are required to be made for the smooth running of the organization. The performance of the organization is greatly influenced by these decisions. Hence, making decisions is a matter of a huge responsibility for the management not only against the organization itself, but against their employees and other stakeholders, as well. The decision making process can be explained as a proposal considered by the management in the context of the organization and its strategic position. Alternatives, risks and potential outcomes are considered and then a decision is reached. There can also be a post audit and a feedback loop. The decision making process of the management is subject to human error as the management personnel have personalities, prejudices and a self-interest bias. Importantly, they have different attitudes to and appetites for risk. The decisions of the management are influenced by the decision making environment which consists of a unity of management’s experience, beliefs and perceptions on one side, and decision support tools and techniques on the other side. For determining the effectiveness of the decision made, the performance of the organization is normally measured on the basis of eight performance parameters. These performance parameters include (i) profitability, (ii) organizational effectiveness, (iii) continuous improvement, (iv) productivity of the processes, (v) quality of...

Standards and their importance for the Organizations...

Standards and their importance for the Organizations The modern and globalized world cannot exist without standards which are sup­porting cooperation, trade, health, safety, and economic growth etc. In fact, standards exist in almost all aspects of modern life. They range from standards in information and communication technology which ensure the interoperability of diverse components to standards for the quality of products or services, and underlie areas ranging from the harmonization of international accounting systems to the governance of the social and environmental performance of the organizations. Stand­ards have a huge influence on everyday life. They play a key role in an environment where an organization is to be at its best for achieving success. They are open access documents with no charge or license fee for their use, apart from the cost of its purchase. The development of standardization as an engineering activity was pioneered by Eli Whitney, who in 1793 invented the cotton gin, a machine for separating cotton fibres from their seeds. Whitney later introduced the production of interchangeable components for the manufacture of guns. Standardization of screw threads by Sir Joseph Whitworth dates back to 1841. Other instances of early standardization can be found in the dawning age of the railway industry, as the establishment of a standard width between the two rails on the railway track, the manufacture of railway couplings, air brakes and the signaling system called for increasing levels of standardized work. But major impetus to the development of standards came around the turn of the 20th century, when a large number of national standardization organizations were founded, including organizations that are nowadays known as the British Standards Institution (BSI) and the American National Standards Institute (ANSI). Their purpose was to create sets of rules for the design...

Technology Upgradation Management in Re-rolling Mills...

Technology Upgradation Management in Re-rolling Mills Re-rolling mills in small and medium enterprise (SME) sector play an important role in meeting the demand of the finished steel in the country. These mills are crucial to the national steel economy since they are making available a large amount of finished steel in the market.  The technology adoption level of these mills is rather low and many of these mills operate with technologies which are 50 years to 60 years old. These mills operate at low level of productivities and high level of energy consumptions. The operations of these mills are mostly manual and most of the mill parameters as well as the quality of the product depend largely on the skill of the operators. Mill owners have the complete control over the management of the mill. The re-rolling mills are presently facing many problems and challenges. These include (i) shortage of skilled workers, (ii) shrinking market because of increasing competition, (iii) higher operating costs, (iv) low productivities, and (v) high energy consumption etc. The mill owners are presently not serious to solve the problems, since they are able to run the mills for at least a shift. The mill owners’ attitude towards finding solutions to the challenges being faced indicates that they are not aware of what is stored for them in the near future. The mill owners are not realizing that ignoring the major issues at this stage, can lead them, after certain period, to such a situation which will be out of their control. With the capacity expansions being implemented by integrated steel plants in India, the availability of finished steel is improving and the competition is becoming tougher as each day is passing by. The finished steel available from the integrated steel...

Management of Re-rolling mills in SME sector...

Management of Re-rolling mills in SME sector Re-rolling mills in SME sector play a very important role towards the steel economy of the country. There are around 1800 re-rolling mills in small and medium enterprise (SME) sector in India. The rolling capacities of these mills are mostly in the range of 8,000 tons per year to 80,000 tons per year. These mills are crucial to the national economy since they are not only making available a large amount of finished steel in the market but many of these mills are also converting a substantial amount of steel scrap into finished steel thus serving the overall cause of steel recycling. Since the conversion of steel scrap is taking place without its melting in these re-rolling mills, it is helping towards the cause of the conservation of raw materials and energy as well as saving the generation of green-house gases. The technology adoption level of these mills is rather low and many of these mills operate with technologies which are 50 years to 60 years old. Most of these re-rolling mills do not have practices to keep systematic data in different areas of their functioning. These mills operate at low level of productivities and high level of energy consumptions. They have some special problems and challenges. Re-rolling mills in SME sector practically do not have even simple control systems. They work with a low degree of standardization. The work force is having high experience in limited area. There is increased focus on the experience of the people and there is practically no effort to enhance the knowledge of the work force. The approach to all the issues is informal leading to decisions which does not often bring improvements in the working of the mills. Re-rolling mills...

Cost Benefit Analysis...

Cost Benefit Analysis Cost benefit analysis (CBA) is a tool which is used for the determination of the worth of a project, programme or policy. Its principles and practice are well established and widely used. Organizational management normally uses this tool to appraise a project before taking an investment decision. The decision to conduct a CBA for the project alternatives and the manner in which it is to be conducted is usually taken since it helps the management in making judgments and appraising available options. CBA is a systematic approach for the estimation of the strengths and weaknesses of alternatives and is used to determine options which provide the best approach to achieve benefits from the project. It is the comparison of costs and benefits of the project to decide whether it can be undertaken. In CBA both the tangible and intangible costs as well as tangible and intangible benefits are considered. CBA is a term that refers both to (i) a formal discipline used to help appraise, or assess, the case for a project, which itself is a process known as project appraisal, and (ii) an informal approach to making decisions. Under both definitions the process involves, whether explicitly or implicitly, weighing the total expected costs against the total expected benefits of the project or its alternatives in order to choose the best option. The idea of this economic accounting originated with Jules Dupuit, a French engineer whose 1848 article is still worth reading. The British economist, Alfred Marshall, formulated some of the formal concepts which are at the foundation of CBA. But the practical development of CBA came in 1936 when the regulatory act required US Corps of Engineers to take up only those projects for the improvement of the waterway system...