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Organizational Culture

Organizational Culture
Defining Organizational Culture Business is an integral part of the society; and it influences other elements of the social system, which in turn affect business. The entire sphere of business activities are influenced by the social structure and culture of a society. The social system is influenced by the way the business functions, innovations, transmission and diffusion of information and new ideas etc. Business activities have greatly influenced social attitudes, values, outlooks, customs and traits. However, it is very difficult and, in some cases, almost impossible to change many elements of the social environment in the short run. Hence, a business may have to anticipate and adapt to these uncontrollable external environments. Socio-cultural environment refers to the influence exercised by certain social factors, which are “beyond the company’s gate“. This includes attitude of people towards: Work Wealth Knowledge Family Marriage Religion Education Ethics and social responsibility of business. Belief System Influencing the Action: Culture is something that is evolved in a society over a long period and it represents the unified belief system of a large group of people. An organization can be distinguished from another by way of its culture, since organizational culture is unique in its perspective and methodology. When people from different social backgrounds are made to work under the same roof, a corporate organization acquires a distinct culture. Culture conveys a sense of identity for the organization. It facilitates the generation of commitment to do something noble than one’s own self-interest. Cultural Differences: As business go international, the need for understanding and appreciating cultural differences across countries is essential. Any move from one country to another will create a certain amount of confusion, disorientation and emotional upheaval. Especially, people form Asian countries that migrate to the west are subjected to what is called a “culture shock”, in terms of attitude, working style, language, way of life, dress codes and negotiating styles. Freshers may adapt to these changes quickly, since they are natural and easy to be trained. The problem arises with individuals who had been working under a totally different cultural setup from that of the new cultural environment; they will have to undergo the process of ‘unlearning‘, which is more like swapping old ideas for new ideas. This change process is what both the employees and the management find challenging; but ultimately what needs to be done has to be done. Culture Shock: Multi national and Trans national companies, which have business establishments in different parts of the world, must be prepared to cope with the culture shock. Since huge investments go into their projects, they have to think and analyze about the cultural and social aspects that have a definite impact on the working of organisations. For example, the work attitude of employees in the west might lay emphasis on services and results, oriented towards self-improvement; while that of the Asian counterparts may be patience and sacrifice rooted in emotions and loyalty. Business can be considered as a large social network serving to satisfy economic and social interests; culture acts as the social glue that helps hold the organization together by providing appropriate standards for the behavior of organization members. Slogans of Some Reputed Organizations in the Industry: Nokia: Connecting people Jet Airways: The joy of flying Reliance Industries: Growth is life Citibank: Your citi never sleeps The above cited examples give you a fair idea about what a particular company stands for. The orientation of these companies, expressed in the form of SLOGANS contributed to the successful conduct of their...
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Human Behavior

Human Behavior
Human Behavior- A Psychodynamic Approach In any organization, utmost importance is given to human resource management. Handling or manipulating other resources like physical, financial or production is at your discretion. When it comes to managing your employees, there you go! You start feeling the pinch. Man is like a “live wire” and if you don’t possess the mastery to understand and utilize the power behind his psyche, then you are at a loss and you are not capable of what is called “the wizard touch”. Maintaining the Employee Morale: The main problem with your subordinates or even with yourself might be boosting up of morale. Always keeping yourself in a cheerful proposition will take you to greater heights, as it helps you to achieve your goals faster. Human strength lies in self belief which is his reserved store of strength, the one which he never utilizes or not allowed to utilize to the fullest extent possible. A bureaucratic or autocratic manager should understand the fact that when human mind is given a chance to explore with full freedom instead of following orders it comes out with the greatest ideas; which may prove fruitful to your organization in a big way. Make Your Work-force Dynamic: If a person wants to become successful in a business venture, he should possess the fire of unfailing enthusiasm and the nerve to face the adversities that come in his way. Life is a game and so is business. You can play the game fearlessly when you are backed up by like minded individuals who will carry on your fire to the next level. So it is important on your part to prepare your subordinates to adapt to the different dimensions of the business atmosphere and make them more dynamic. Human mind has the power to grasp things faster than what we assume it to be. Even average performers can be transformed into star performers when, The work itself is appealing, yielding and useful The work has scope for independent activities The Work defines goals or targets The social atmosphere created by the manager is warm Innovative ideas are welcome Empathy on part of the manager The Power of Relaxation: Another important aspect for the betterment of human psyche is relaxation. A relaxed mind can achieve things hundred times better. People who are always on the run have the feeling that they have not accomplished much. If you keenly observe, only 8 hours of productive work is done every day. In order to accomplish whatever you have in your agenda, you definitely need to relax and plan. The art of resting the mind and the power to dismiss all worries and exhaustion is probably the winning formula. The employer who secures the goodwill of his employees can accomplish more with less effort and exhaustion. Try to bring out the creativity of your subordinates to make the climate of your firm cordial and the attitude...
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The Need of Math in Management

The Need of Math in Management
Operations Research-Emphasizing the need of Math in Management Business is all about “demand versus supply”. And as is always the case, industries operate in a tight situation, with limited resources and heavy demand, trying to make the ends meet. The production of required quantity with the available resources needs an approach that is quantitative and logical as well. This can be obtained by weighing the odds and choosing the right kind of decision that suits your business plan, be it production, distribution, marketing, selling or any business situation, where there is a need to compare and contrast between alternating decisions, to arrive at an optimal solution. High end mathematical concepts in Operations: Operations research comes into the picture in such situations, wherein, high end mathematical concepts and models are applied to problem situations, to first define the problem and then extract the best possible solution by quantifying the resources available. Quantitative data is then converted into linear equations to maximize the productivity and profit. Profit maximization is generally aimed by most of the firms that operate with limited potential and operations research helps to achieve this through optimal use of the available resources. Application of Scientific Methods: The emphasis is on application of scientific methods, use of quantitative data, goals and objectives and determination of the best means to reach them. Once the data is collected, it is carefully evaluated and the relationship among data is established, which helps in defining the problems and goals. The problem is represented logically to decide the course of action. Say, for example, Linear Programming represents each and every problem situation in the form of a linear equation and tries to allocate resources in an optimal fashion. Alternate decisions are evaluated and the decision that yields the best result in terms of productivity and profit is considered. Measure of Effectiveness: How do you measure profit? The measure of effectiveness will be determining the rate of return on investment, and every possible solution can be weighed against this measure. Theories of probability are also used to predict the success rate of the combinations of variables executed in different ways. But one has to understand that only some variables are controllable and others are not. Say, if the economy experiences inflation or recession, your predictions will undergo a drastic review in purview of the fluctuations in the economy. Similarly availability of labor is always a constraint, either labor is not available or they demand more pay. Simplex Methods: Since voluminous data is involved, computers with multi processors are used to manipulate the data. Mathematical tools like simplex methods, integer programming, graphical methods, transportation and assignment techniques, simulations, game theory and queuing theory can be very well applied to solve complex problem situations with ease. Today’s business world demands more sophistication in terms of technical updations. Evolution of Opeartions Research Techniques: Operations Research dates back to the Second World War period, and the accelerated growth of this discipline in recent years can be attributed to the fact that, researchers have found this useful in solving economic and political problems too. At the same time, critics point out that, application of operations research proves advantageous only to those people who are accustomed to the usage of rapid computing machines and understand the complex mathematical formulae and relationships. Note: Energy: The oil industry was one of the earlier users of operations research techniques to help manage their refinery processes, and operations research technologies are heavily used by all the major oil companies. Manufacturing: Manufacturing organizations continue to use operations research to optimize factory operations. Transportation: Operations researchers execute logistics for air traffic control, trucking, and railroads. Real-time dispatching and delivery truck...
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Power and Balance

Power and Balance
Power and Balance in Corporate Governance Power has the ability to disorient a person’s behavior and attitude. When properly used it leads to height of efficiency, when misused it calls for calamity and disorientation in the entire business firm. It is nothing but the authority that comes with your job which has to be utilized for constructive purpose and at the same time to ascertain that things are “going in the right direction.” Precise use of power leads to a congenial atmosphere in your business arena”. Otherwise in course of time you might have to tackle warfare with your subordinates and the “undercurrent of animosity” might ruin your business success. How it affects Inter-Personal Relationship: When we talk about POWER it usually fits well into the top level management cadre, as managers and senior managers are assigned with huge powers in order to lead the firm in times of crisis as well as maintain the consistency of the nature of the firm. So when there is abuse of power consciously or unconsciously, people create a space between themselves and that particular person who misuses the power. So the result would be a lack of interpersonal relationship between the manager and the employees. Managers generally acquire and use influence that has its impact not only on the behavior of the individuals, but also on the organizational effectiveness as a whole which in turn affects productivity. Use Power as a Constructive Tool: In fact, authoritative behavior is often misunderstood by most of the managers in the business setup; there is a need for the managers to skillfully use their power in order to extract work from their teams as well as to maintain a balance between the extent to which authority must be used and the tolerance level of the employees’ (mind set). So it is more of a psychology which involves much critical analysis on the part of the manager to understand the constructive aspects of his authority and how employees at a lower level will always look up to him for support and guidance and not indifference. Power covers and affects the following important aspects, Discretion Crisis management Dependence of employees Responsibility Leadership Governance Interpersonal relationship Change management Environmental influences Reward systems Collaborative management Success of the firm and so on. In order to maintain his own integrity as well as the organisations’ the manager must be able to appreciate the relevance of power in management just by not looking into the literature but act in accordance with the situation. A detailed analysis of power dynamics makes the manager more effective in dealing with behavior inconsistencies in the organization. Try to be more open in your communication and make your employees feel that “You are always there” to support and guide them. This in turn will make your “Boss to have a second look at you” for a promotional pay. This discussion is from the manager’s perspective and there is more to be discussed and considered from an employee’s...
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Organizational Assessment

Organizational Assessment
Organizational Assessment – Motive and Means Organizational assessment involves creating a picture of “what it is”. The snapshot should provide a clear view of the present position of the company and it should indicate whether there is a need to go for a change process. The data provides a baseline which can be used as a reference point to measure change in the future. Employee opinion surveys and climate surveys form a critical part of this measurement process. The key to an effective assessment is being clear about the goal of the process and being specific about the questions the intended exercise must answer. Cultural assessment: This provides information about core dimensions of organizational culture which includes satisfaction with the work itself, satisfaction with pay and benefits, opportunities for advancement, satisfaction with leadership and supervision, motivation, common values and performance commitment. If the leader proves to be aggressive, committed, value driven, so will be the employees who obviously take after their leader to fulfill his vision. The purpose behind analyzing the culture of an organization is to determine its efficiency level and to generate recommendations for continuous improvement. This exercise should not be a one-time affair as periodical inputs and feedback are excellent ways to align culture with the vision. In this way, management is better able to anticipate and prevent any potential problem, and to assess employee attitudes regularly. Survey administration: Surveys are administered to large groups of employees at one time and it is emphasized to be anonymous to erase any apprehensions in their minds. Open-ended questions allow employees to express their opinions about areas that need improvement and also the problem areas or bottlenecks that hinder their development. Report generation: The statistics collected is summarized and presented for each and every dimension covered in the survey. The report compares the organization’s current culture with previous administrations of the survey. Such open ended discussions bring out the problem areas which the management had not been previously aware of. Feedback to management and employees: The managers discuss the outcome of the survey in order to gain a better understanding of the various issues facing the organization, and decide on a plan to give feedback to their employees. This is a kind of human resource strategy which helps the management to bridge the gap between various levels of the organization and its members. Recommendations to the management: A final report submission by managers of the respective departments along with their recommendations for management’s perusal is the final step in organizational diagnosis and with the approval of “the big boss” action plans are executed that aid in improving the organizational effectiveness. The notion of this entire exercise is to provide insight into the current skill levels of the work force and to design an effective plan for performance improvement based on the assessment of total development needs....
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