Group Dynamics Any effective group has three core activities: 1. Accomplishing its goals  2. Maintaining itself internally 3. Developing and changing in ways that improves its effectiveness. Let us now try to understand the various dimensions of an effective group that facilitate the above mentioned three core elements to function properly which provide a sense of direction to the productive group. a) Group goals: Must be clearly understood. Be relevant to the needs of the group members. Highlight the positive inter dependence of members.  Evoke from every member a high level of commitment to their accomplishment. b) Communication: Must communicate their ideas and feelings accurately and clearly.  Effective two way communication is mandatory for interaction c) Participation and Leadership: All should participate and all should be listened to. Share responsibilities that eases the burden. Increases the cohesiveness of the group. d) Appropriate decision making procedure: Balance between time and member resources. Flexible decision making to suit the needs of the situation. e) Power and Influence:  · Should be equal · Based on expertise, ability and access to information and not on authority · Coalitions must be formed between group members on the basis of mutual influence and interdependence. f) Conflicts: · Are to be encouraged as they promote involvement in the group’s work, improve quality and creativity in decision making. · Minority opinions should be accepted and used g) Group Cohesion: · Needs to be high · Level of acceptance, support, and trust among the members decide how cohesive the group is h) Problem Solving: · Problems should be resolved with minimal energy and permanently · Existence of problems must be found out quickly and solutions should improve the effectiveness of group behavior  i) Inter-personal effectiveness: · Needs to be high · It is a measure of how all the consequences of your behavior match your intention. ⇓ Picture Courtesy: 6 WAYS TO DEVELOP A WINNING TEAM CULTURE  Group Cohesiveness: This is defined as the average resultant force acting on members to remain in a group. The characteristics or criteria that determine group cohesiveness are as follows: 1. Degree of dependency on the group: The greater the number of individual needs are satisfied, the greater the cohesiveness. 2. Size: If the size of the group interaction is low, it results in low cohesiveness. If the size of the group is small, the members tend to have free and more interaction, leading to high level of cohesiveness and vice versa. 3. Homogeneity: Where the interests and background of the group is similar, you find greater cohesiveness. 4. Outside pressure: Outside pressure minimizes internal conflicts leading to high cohesiveness. You find people responding with greater cohesiveness during times of natural disaster and calamities. 5. Competition: Competition between the members of the same group or intra group competition reduces cohesiveness but competition members of different groups or inter-group competition increases cohesiveness. Group Cohesiveness can be encouraged by the following ways: · Make the group smaller · Encourage agreement with group goals · Increase the time members spend together · Stimulate competition with other groups · Give rewards to groups rather than to a single member · Physically, isolate the group.  ...

Centralization and De-Centralization Concepts CENTRALIZATION: The term “centralization” has several meanings: Centralization of Performance: Say, if the operations of a company is restricted to a single geographical location, it characterizes centralization of performance. Departmental Centralization: Specialized activities are carried out by a single department, say, maintenance of a whole plant, staff recruitment by HR department etc., Centralization as an aspect of management: This implies restricted delegation and exclusivity of decision-making by the top management. According to Allen, “Centralization is the systematic and consistent reservation of authority at central point in an organization.” According to Weihrich and Koontz, “Centralization (as an aspect of management) is the tendency to restrict delegation of decision-making. What are the special circumstances that force the managers to reserve authority and centralize decision making powers? 1.       To facilitate personal leadership 2.       To provide for integration 3.       To handle emergencies 4.       To utilize resources effectively and instantaneously. DECENTRALISATION: It is the tendency to disperse decision making authority in a structured and organized manner. It can be viewed as a philosophy rather than a principle where-in “discretion” plays a major role in deciding which decisions to push down into the organization structure and which to hold near the top. Capital expenditure, Investment analysis and major policy decisions have to be dealt with, by the top management. It is the systematic effort to delegate to the lowest levels of authority except that which can be exercised at central points. TYPES OF DECENTRALIZATION: Three approaches to the concept are: 1.       PROFIT CENTRES 2.       COST EXPENSE CENTRES 3.       INVESTMENT CENTRES Profit Centre: Here the organization is split into divisions on a “product basis” and is given full authority to handle its own scheduled operations, right from placing orders to negotiating the sale of its finished products. Cost Expense Centre: Whenever it is easy to determine the cost of operations, cost centres are established. Cost centres run on “budgets” which acts as a control tool to run the units within the specified budgetary limits. Investment Centre: Useful in the case of big multi-product enterprises where product performance is measured by decentralizing the investment aspect. Each strategic business unit is responsible for the acquisition, use and disposition of fixed resources. Advantages of Decentralization: Managers and executives are relieved form excessive work pressure Even low level employees are involved in decision making thus bringing the decision making process closer to the scene of action. It facilitates product-diversification Creates an opportunity for learning Ensures effective control When a big organization is divided into relatively smaller units, it becomes flexible and also effects close control. Disadvantages of Decentralization:  ·         Conflict arises between people belonging to different levels of the organization ·         Rising cost ·         Lack of co-ordination between production and marketing departments ·         No defined leadership Contingency Factors in Decentralizing: 1.       Organizational goals 2.       Organizational size 3.       Geographical dispersion 4.       Technical complexity of tasks 5.       Time frame of discussions and decisions 6.       Subordinates’ take on issues 7.       Planning and control procedures 8.       Environmental factors 9.       Knowledge and experience of managers Effective Decentralization can be accomplished by ·         Establishing appropriate centralization ·         Developing efficient managers ·         Proper provision for communication and co-ordination ·         Establishing adequate controls Top management must be willing to delegate authority towards decision making; Middle management must be willing to accept responsibility that is being delegated. Only then effective decentralization is...

Basics of Accounting Purpose of Accounting Break Even Analysis Financial Accounting...

Objectives and Functions of HRM Human Resource Management is very challenging because of the dynamic nature of the people and it is not only managing men but involves administering a social system. According to Dale Yoder “Man power management is the function or activity in directing working men and women in maximizing their satisfaction in employment.” George R. Terry says, “Personnel management is concerned with the obtaining and maintaining of a satisfactory and satisfied work force.” OBJECTIVES OF HUMAN RESOURCE MANAGEMENT: 1. Social Objectives:   a) Facing the challenge of unemployment and providing people with maximum employment opportunities is the first and foremost priority of countries like India where there is pressure of population growth. b) The employees must be able to derive maximum satisfaction from the work performed. c) The system should facilitate harmony and co-operative endeavor for one and all. 2. Personal Objectives: Job satisfaction and rewards in the form of pay, promotion and recognition is aimed at, on the part of employees. This can be achieved by providing adequate remuneration, opportunities for advancement, facilities for training and development, job security and proper work. 3. Enterprise Objectives: This can be achieved by selecting the right people for the right job, empowering them through training, development and participation. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT:  1. Planning: Assessment of future man power requirement is done with the help of man power inventory chart followed by the recruitment and selection process. A clean job description is needed to lure people with the right skills for the right position. It is the responsibility of the manager of a firm to lay down specifications of the qualities and skills required by the workers and determining sources from where the workers are to be recruited. Selection is done by means of written test and personal interviews. 2. Organizing: This involves proper designing of organizational structure, the inter relationship between jobs, establishing smooth channels of communication, assignment of authority, responsibility and creating accountability, establishing line and staff relationship etc. 3. Directing: Issuing orders and instructions down the line and motivating the work force to carry out those instructions satisfactorily. Positive motivation in the form of financial and non-financial incentives, a good working environment is essential on the part of the management. 4. Controlling: The motive is to ensure that performance of each worker coincides with the plans or standards. Bench marking, Total quality management and Six sigma are some of the popular concepts of standardization. → Scope and Characteristics of...

“Planning is bringing the future into the present so that you can do something about it now.” – Alan Lakein. Planning is absolutely essential and every minute you spend in planning saves 10 minutes in execution and gives 100 percent return on energy. We compare the advantages of planning against the consequences for your better understanding. Let’s See the Advantages of Planning First Facilitates opportunity analysis and presents an awareness of the external environmentMinimizes cost as it takes into account all the contributing and limiting factorsIncreases efficiencyRefines culture of an organizationProvides a good directionAlso establishes several measures of controlElicits commitment Disadvantages of Planning Time consumingInvolves excessive paper workSome times over emphasizes only the objectivesPlanning may become lop sided as it entirely depends on the mind set and attitude of people concerned with planningPlanning premises may not be fully reliable Steps to Make Planning Effective Every organization should have a separate planning department. A corporate planning department will take care of all the functions of an organization under one heading.Planning must be all pervasive and even the work force at the bottom level should understand the importance of planning and the planning perspective of the management.The goals must be verifiable and clearGive managers adequate tools and the freedom to trial and errorThe long term and short term goals should be combined together to form a inter locked system and must be viewed as one big single network.Goal setting must be practiced – participation by the employees must be made compulsoryA small idea could turn out into a big plan- don’t ignore suggestions from your subordinates and term them “silly.” What is Strategic Planning Strategic planning has a long term perspective and takes into account the extended time horizon.There may not be any immediate impact arising out of strategic planning, but the results can be experienced in the long run.It gives effort on vital areas. When the size of organizations is huge, they are broken down into STRATEGIC BUSINESS UNITS, treating them as individual businesses for ease of operation and decision making.It is a tailor made approach to match the functioning of an organization to the external environment for meeting the changes in the future. So, i is crystal clear that the advantages of planning outweigh the disadvantages and good plans never...