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Synergy

Synergy
Synergy in Management Synergy: The interaction of two or more agents or forces so that their combined effect is greater than the sum of their individual effects. Synergy is the latest BUZZ WORD in the corporate business world. Synergy is the sum total of individual resources that which creates an enhanced effect greater than that of the sum total. Shall I simply say “1+1>2”! It is really amazing how much you can accomplish when it doesn’t matter who gets the credit. Teamwork divides the task and doubles the success. Unity is Strength: Synergy unites the people of an organization as a team and it serves like “BLINKERS FOR HORSES” to reach the goal of the firm without any conflicts amongst the team members. It is a managerial science and the role of top management in synergizing the employees plays a vital role in the success of the organization. As the old saying goes “Unity is Strength” and the new world aspires “Sky is the Limit”. By integrating the team members, having a smooth relationship with labor unions and management staff, a firm can achieve its overall objectives and mission in a very short span of time. Cordial Industrial Relation paves the way for the functioning of the firm without a hitch. Developing Systems for all core areas: The top management has to create “SYSTEMS” for all the core areas; Policies, procedures, rules and regulations, norms etc.,shall serve the common purpose of controlling and guiding all the employees of a firm creating a perfect ambience for efficient performance. The general managers should be the pillars of a firm who shoulder the responsibility of implementing these systems in an objective manner and not in a subjective manner. Scope: Synergy also has its scope outside the organization. The managers should be able to connect themselves with customers, banks, trade associations and also the government with ease. The weather of your firm depends on the psychology of your persona and the collective efforts of your team. If you want your firm to be SUCCESSFUL and UNIQUE, you have to POOL ALL YOUR RESOURCES, be it human, physical, financial or intangible. The competitiveness enjoyed by your firm to capture and win the market marks your strength; the limitations or restrictions that mar the growth of your firm can be overcome by the SYNERGISTIC BOOSTER that you administer into the minds of your employees. Integration is the key word that leads to DISTINCTIVE COMPETENCE, a strength that cannot be copied by other organizations which helps you to make your organization more productive and...
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Nature of Organizational Planning

Nature of Organizational Planning
Nature of Organizational Planning What is Planning? “Planning is an intellectual process, the conscious determination of courses of action, and is a continuous process of decision making with built in flexibility.”- Herold Koonz and Weirich Planning is the most basic and primary of all management functions on the premise of which other functions evolve. It would be appropriate to compare planning to the basement or foundation of a building upon which the entire system rests. Planning bridges the gap from where we are to where we want to go. Planning involves selecting the best objectives and deciding on the suitable course of action. When we talk about planning, control is another entity that tags along like inseparable two-sides of a coin. Without planning there is no control and without control planning becomes meaningless. NATURE OF PLANNING: Prime function of management: Planning is the key to all other functions of management like organizing, leading, staffing and controlling. Is a continuous process: Plans need periodic review in the wake of external environment and internal resource potential and thus is a continuous process. Is an intellectual process: What is to be done, when, who and how are the very important questions that loom before a manager before making every decision. He has to use his intellect in order to make the right plans before acting. Is all pervasive: It penetrates right from the top to the bottom level of management, but it is the responsibility of the managers or executives at the top level to make the right moves at the right time. Is flexible: One has to understand that flexibility is restricted when it comes to irretrievable costs already incurred in fixed assets, training, advertising etc. Is goal oriented: Planning starts with setting up of objectives and completely goal oriented.   TYPES OF PLANS: Purpose or Missions: Basic task of an organization. For example, teaching and research can be attributed as the basic function of an educational institution; the purpose of business is to produce, distribute goods and make a surplus. Objectives: These are the goals that have to be accomplished by the organization. Corporate companies chart out their production plan well in advance to meet the requirements on time. For this they break the objectives into short term goals i.e., for a quarter based on the sales forecast. This kind of planning gives clarity and direction for the production team to achieve the goals. Strategies: These are the set of action plans designed in order to achieve the future objectives backed up by long term perspective in the wake of environmental analysis and give direction in which the resources have to be channelized. Policies: These are basically the guideline books that direct the course of the organization’s function as what to do and what not to-do. They see to that the decisions made fall well within certain boundaries in order to ensure fair and equitable treatment to all the employees. HR policies govern all the functions related to pay, promotion and other disciplinary mechanisms related to the work force. Procedures: They are programmes designed to carry out the activities of the organization in a specified manner. The procedures for placing a purchase order, payment collection etc., Programmes: A programme is the sum total of goals, policies, procedures, rules, task etc., For example, new product development may be cited as a major programme while promotional campaign may be cited as  a supporting programme. Budget: No plan is feasible without a budget allocated to it. A budget is a numberised programme and more of a control device. Revenue budgets, expense budgets, production budgets to name a few. Zero base budget: This kind of budget does not take into account the previous year’s performance record or budget but treats every progarmme afresh and starts working from ground up. Each programme is treated as a separate...
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