posted by admin on Feb 3
Management is a interlinked system as such. As a whole the whole of the company is linked into one single entity. Hence a good form of a management system is needed for the effective payday advance functioning. Even if one such system like finance fails it is the whole firm which gets affected. Hence a good feedback from the customers must take into effect. A good communication at the overall level must take place. This increases the overall productivity. Every department of the management must synchronise for the effect productivity increase and a ethical management should take place. Such should be the management system at all levels of the firm.
posted by admin on Jan 12
Joint sector means participation by the government and private industry in sharing the capital and general management of the firm is set up. Joint sector aims at achieving the task of social justice through efficient use of resources. The government invests the capital and private party looks after the efficient working of the management of the industry. In India, large number of firms comes up under this concept. Examples are: Cochin, Refineries, Madras Refineries, Madras Fertilizers and Indian Oil.
In regard to individual ventures functioning under the joint sector principle, the participation has not generally been an equal footing and it has been ensured that the government would be the senior partner. In Indian Oil Corporation, the share participation is 50:50. In most of the enterprises, the share capital is usually in the ratio of 51:49 and in all the cases the government holds 51% of the shares.
posted by admin on Jan 11
Sole proprietorship is the simplest form of business organizations. As the name implies, such type of business is owned by one man. It is “one person in business on his own”. The legal requirements for starting such a business are minimal but the owner is fully responsible for any debts incurred in running the business.
In such a business, the owner supplies all the capital needed to run the organization. The owner produces only with the help of his own land, capital and labor. Hence, the owner alone enjoys the profits and suffers the losses in his business. Therefore hi is the supreme authority to decide into different matters concerning to his business. Overall control in single hand helps in making quick decisions, efficient administration and working. In such an organization, owner alone is responsible for all the liabilities.
Payment dues for loans, insurance premium and salaries of employees are called as liabilities of business and owners are responsible for all the liabilities. Hence, creditors can collect the money even from his personal property. This type of organization is more suitable when the capital required is less and the risk required is not too heavy.
posted by admin on Jan 10
Planning is the most basic of all managerial functions. Planning is the process by which a manger looks into the future. Planning is done by managers at all levels of organization. The organizational plan results from the planning process details the goals to be achieved. The pattern of decisions managers take to reach these goals is the organizations strategy.
Perception and creative thinking are essential for a good planner. Planning bridges the gap between present and future. Planning includes setting objectives, making policies and procedures, preparing strategies and programmes. Planning is the primary management function and it is the predecessor of all other management functions. Its function determines how effective and efficient organization is and determines the strategy of the organization.
Planning is today’s projection for tomorrow’s activity. It is the process of thinking before doing. A plan is a document consisting of an objective and an action statement. Planning and controlling are inseparable in the management. Controlling without any plan is meaningless.
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.
posted by admin on Oct 26
Co operative societies are democratic form of business organizations, for the betterment of the general public. Co operative society is a voluntary association of individuals who supply capital to run the business and share profits and losses.
The purpose of co operative societies is to distribute products of daily use at a rate lower than that of the market. In this organization, shareholders are the consumers or producers. This type of organization has limited liability. It can be formed with a minimum of ten members. Co operative society is defines as the voluntary association of individuals with limited membership and collectively owned fund, considering of wage earners and small producers, united on a democratic basis for the establishment of enterprises under joint management for the purpose of improving their business economy.
In cooperative societies, the members are industrials workers, daily wage laborers, and small in dependent producers, agriculturalists and consumers. The main of co operative society is to promote self help.
posted by admin on Oct 20
Limited financial resources and heavy burden of risk involved in the previous forms of organizations lead to the formation of joint stock companies. Joint stock companies have limited liability. Joint Stock Company is the voluntary association of individuals to start and run the business. In this type of organization, capital amount required to start the business can be collected from a large number of people. Capital is divided into large number of transferable shares of different values.
The capital is raised by selling shares of different values. People who purchase the shares are called as “shareholders” and the managing body known as “board of directors” is elected by these shareholders. The board of director is responsible for policy making, important financial and technical decision making and efficient working of an enterprise. In this form organization, the liability of the shareholders is limited to the extent of the number of shares held by them. They are free from the responsibility of the company beyond the value of shares. Because of this advantage, all section of people is encouraged to contribute for the company. These shares are transferrable.
posted by admin on Sep 22
The invention in the eighteenth century initiated a change which is known as industrial revolution. Production moved from cottages to factories where centralized production was carried out. Industrial revolution started in United Kingdom and it had changed the entire behavior of civilized world.
Machineries were used instead of human power. Industrial revolution necessitated the growth of large scale organizations and use of new tools and processes. Charles Babbage is the pioneer of digital computer. His book “On the Economy of Machinery and Manufacturers” became so popular within three months of its publication in 1832. Though he was a manufacturer of machineries, he contributed more to the development of management thought. Factory system necessitated the need for talented and trained managers. The concepts division of labor and specialization were introduced. Managers had to increase the efficiency of worker work mix.