posted by admin on Nov 26
Polices is a statement and predetermined guideline that provides direction for decision making and taking action. Policies may be based upon a thorough analysis of objectives and it should be consistent with the company’s mission and philosophy.
Polices serve as ready guides for solving numerous problems, and for making many routine day to day decisions. This helps managers to improve the efficiency of operations. If policies are clearly understand and adhered to by all, there will be fewer problems and fewer complaints to start with. Organizational policies may be formulated for all types of situations and functions. There may be sales policies, production policies, accounting policies etc.
Short policies tend to predict issues and avoid repeated analysis and give a unified structure to the organization. Major policies cover the entire organization and are formulated by top level managers. Policies lay down the broad scope and limits with in which managers are allowed to commit the organization to specific decision. However, policies neither offer ready made decisions nor specify how exactly managers should make decisions and handle events. They only indicate the broad consideration to be kept in mind while making decisions.
posted by admin on Nov 19
Strategic planning is a made by top management which includes chief executive officer, president, vice president, general manager, and division heads. Policies and strategies are adopted to achieve overall objective of the organization. It is a long range planning and covers a time period of up to ten years. It deals with the total assessment of organizations capabilities, its strength and weakness and an objective evaluation of dynamic environment. The strategic planning also determines the direction of the company in achieving the goals.
Tactical planning determines the objective of divisions with available resources. It covers a time period of 1 to 2 years and is contemplated by middle management who involves functional managers and product line managers. It involves the task of achieving the top management’s strategic plans. Middle management has to determine the most efficient and effective mix of human, finance and material factors. They refine the broad strategic plans into more workable plans.
posted by admin on Nov 3
It is otherwise known as state ownership. Public sector organization is a serious competitor to joint stock companies. This type of organization is suitable for modern industries because of facilities like electricity; transport and capital are available in government. The private limited companies gave rise to exploitation of labor and of customers. These are the main reasons for the origination of public sector organizations.
Either state government or central government establishes or nationalizes some industries to reduce the monopoly power possessed by some companies. The main aim is to prevent economic unbalance in the country. Railways and telegraph are completely owned by government. Industries such as ship building, airlines and fertilizer manufacturing are owned by government as well as joint stock companies. In joint stock companies, employees try to achieve maximum benefit for the organizations. Joint Stock Company does not allow bad workmanship, inefficiency or indiscipline. The above accepts cannot be expected in public sector organizations.