Innovation and Organizational Management...

Innovation and Organizational Management Innovation is normally considered as new idea, creative thought, and new imagination in form of device or method. It is often viewed as the application of better solutions which meet new requirements, unarticulated needs, or existing needs of the market. It is also considered as the process of translating an idea or invention into a good or service which creates value or for which customers are going to pay. It often results when ideas are applied by the organization in order to further satisfy the needs and expectations of the customers. It is crucial to the continuing success of any organization. Hence the need of innovation is essential for the organization to be successful. The organizational management is required to stimulate, direct, and make effective innovation. It is one of the administrative functions of the management. It is the management task of keeping going and of improving what is already known and what is already largely being done. It is normally devoted to the entrepreneurial function of creating effectively and purposefully the new and the different. The neglect of the innovation by the management can have dire consequences. Hence, the management is to stress the need to innovate. It has to organize innovation as a distinct and major task. Innovation is often being seen as a separate job, a job done by the individual by himself, by the inventor. It is also being seen as a predominantly technical job, that of research. In the past, there was not too much scope for innovation, when most of the basic work on management was being done. For contrary to common belief, this was the time of rapid change, either in technology or in society. This was the time when, by and large, technology built...

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...

Planning for Organizational Future...

Planning for Organizational Future Future is always unpredictable (Fig 1), though it is an important aspect for planning for an organization. Future can be described only by two things namely (i) it is not known in the present and only people can make a guess about it, and (ii) it is going to be different than what exists today and from what is expected now. Fig 1 Unpredictable future The above statements are not principally new or particularly unusual. But these statements have far-reaching following implications. If present day actions and commitments are based on the predictions of future events then these are wasted attempts. The best thing which the people can hope to do is to anticipate the future effects of the events which have already permanently taken place. But it does not precisely mean that because the future is going to be different and cannot be predicted, people continue to function in the present way with the comfortable assumption that nothing is going to change. Though it is risky to make the unexpected and unpredicted future, still it is a normal activity. And it is less risky than sailing along on the comfortable assumption that nothing is going to change and also less risky than following a possibility of ‘what must happen’ or ‘what is most probable’. Management is required to accept the need to work systematically on making of the organizational future. But this does not mean that the management can work for the elimination of risks and uncertainties since this is not feasible. The one thing the management can try to do is to find, and occasionally to create, the right risk and to exploit uncertainty. The purpose of the work on making the future is not to decide what...

Task and Work Oriented Organizational Structure...

Task and Work Oriented Organizational Structure The organizational structure for the organizing of the activities and reporting relationships can be organized in five distinct methods (Fig 1). These are (i) structure based on functions, (ii) team organization, (iii) decentralized structure, (iv) simulated decentralization, and (v) systems structure. The first two of them are traditional structures while the remaining three are new ways of organizing the organizational activities. Fig 1 Methods for organizing and reporting relationships for an organization structure Each of the above five structures have been developed to meet specific needs. Hence, one may get an impression that each of them suits certain convenience and does not represent any reasoning. But in reality, each of these structures expresses different type of reasoning. Each takes one general aspect of managerial organization and builds a structure around it. Organization structure is needed to satisfy the minimum requirements with respect to (i) clarity, (ii) economy, (iii) direction of vision, (iv) understanding by the employees of their own task and the common task, (v) decision making, (vi) stability and adaptability, and (vii) maintenance and self-renewal. These are described below and given in Fig 2. Clarity – Clarity means that all the managerial components, and all the employees within the organization, particularly all the executives, need to know where they belong, where they stand, where they have to go for whatever is needed, whether it is information, cooperation, or decision. Clarity is not to be confused with simplicity. Actually, structures which appear simple may lack clarity. And apparently complex structures can have complete clarity. A structure in which the employees do not know without an elaborate organizational manual where they belong, where they have to go, and where they stand creates friction, wastes time, causes disputes and frustration,...

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...