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...

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...

Employee Morale

Employee Morale Employee morale plays a vital role in the performance of the organization. Morale can be considered as the total satisfaction that the employees of the organization derive from their job, the prevailing atmosphere and the factors that appeal to them. It is a conglomeration of attitudes and feelings that constitute a reserve of physical and mental strength including factors like self-confidence, optimism and a positive mental attitude. Morale is an invisible element which determines the success or failure of the organization. Morale is a way of describing how employees feel about their jobs, management and the organization. These feelings are tied to the behaviours and attitudes which the employees show in their workplace. When employees have good morale, they feel committed to the management and the organization, loyal to their jobs and motivated to be productive. They work harder, produce more, meet deadlines and give it their all. Low morale of the employees takes a toll on employees’ performance and productivity. Employee morale is related to how the employees feel about the organization. It is an important factor in creating a healthy work environment.  Organization which has higher employee morale displays improved productivity, improved performance and creativity, reduced number of days taken for leave, higher attention to details, a safer workplace, and an increased quality of work. In addition to that, the organization has employees who arrive to work on time, communicate better, waste lesser time in gossip, have higher rate of retention, and are more creative. Moreover, employees who work with high morale develop higher rates of job satisfaction, creativeness and innovation, respect for their own job, commitment to the organization, eagerness to satisfy group objectives instead of individual objectives, and desire to improve the organizational performance. On the other hand,...

Workers and their Role in the Organization...

Workers and their Role in the Organization Workers are non- executive employees of the organization. Percent wise, they constitute largest number of employees in the organization. In the pyramid of the organization structure, the workers occupy the bottom most place which is below the supervisor level. Workers are so called since they are those of the organizational employees who physically carry out the work in the organization and who implements the plans made by the organizational management. For doing it, workers work with various tools, equipments, instruments, implements and processes.  The performance of the organization depends on how efficiently the workers perform their work. In nutshell the workers are the back bone of the organization and healthy, well trained, knowledgeable, disciplined, motivated, safe, alert, honest, and hardworking team of workers help the organization to prosper and grow. The traits, which the workers need to personify, include teamwork, integrity, commitment, and work ethic. Fig 1 Place of workers in the organizational structure In different countries, the definition of a worker varies depending upon the culture of the country. However, generally a worker can be defined as a person employed in the organization to carry out manual, unskilled, skilled, technical, operational, clerical, or certain category of supervisory work in lieu of a compensation package. It excludes employees who are employed in the organization in the managerial and supervisory levels. Defining of work is not an easy task as it appears to be. Work is what the workers do to earn a livelihood. Work is best described as sustained activity whose purpose is the accomplishment of goals. Developments at the technological front in the recent past have necessitated rising levels of education of the workers and now greater challenges and skill requirements are expected from them. The...

Managers and their Role in the Organization...

Managers and their Role in the Organization Managers are the life of an organization. They are to ensure that the organization performs to the expectation and achieves its purpose and goals. For doing this, managers are to perform certain roles and duties, which include organizing, controlling, directing, coordinating, and leading. Managers may be the entrepreneurs, sometimes they may not be, but however, at all the times they are to balance the available resources of the organization for the achievement of the organizational goals and objectives. For the managers to carry out these duties, they have to possess certain skills which include inter-personal skill, people skill, conceptual skill, and technical skill etc. A manager is often defined as someone who coordinates and oversees the work of other employees so that the organizational goals can be accomplished. It is not about personal achievement but helping others do their job. Managers may also have additional work duties which are not related to coordinating the work of others. Manager is a job title which is used in organizations to denote an employee who has certain responsibilities to lead some functions or departments and/or employees. He has a level in the organizational structure which integrates functions and departments for implementation of the management decisions and for the achievement of the organizational goals and objectives. He is a person responsible for planning and directing the work of a group of individual employees, monitoring their work, and taking corrective action when necessary. He is normally assigned a particular level in the organizational chart and usually has diverse responsibilities for the employees and the functions. The job description of a manager varies from organization to organization. Usually the manager is responsible for a department and has direct reporting employees for whom he has leadership responsibility. Though manager is a job title,...