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Functions 2. Nature Management Administration is an is a decision- executing making function function. Influence The The management administration decisions are is influenced by influenced by public opinion, the values, govt. Practically, there is no difference between management and administration.
Every manager is concerned with both — administrative management function and operative management function as shown in the figure.
For many people, this is their first step into a management career. Managers may direct workers directly or they may direct several supervisors who direct the workers. It is more important for the manager to know how to manage the workers than to know how to do their work well.
An Accounting Manager supervises the Accounting function. An Operations Manager is responsible for the operations of the company. The Manager of Design Engineering supervises engineers and support staff engaged in design of a product or service. A Night Manager is responsible for the activities that take place at night. There are many management functions in business and, therefore, many manager titles. Regardless of title, the manager is responsible for planning, directing, monitoring and controlling the people and their work.
Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories: Technical: This skill requires the ability to use a special proficiency or expertise to perform particular tasks.
Managers acquire these skills initially through formal education and then further develop them through training and job experience. Technical skills are most important at lower levels of management. Human: This skill demonstrates the ability to work well in cooperation with others. A manager with good human skills has a high degree of self-awareness and a capacity to understand or empathize with the feelings of others.
Conceptual: This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others. The higher the management level, the more important conceptual skills become. Although all three categories contain skills essential for managers, their relative importance tends to vary by level of managerial responsibility. Following are some of the skills and personal characteristics that a manager should acquire through observation, formal training or on the job: Leadership — ability to influence others to perform tasks Self-objectivity — ability to evaluate yourself realistically Analytic thinking — ability to interpret and explain patterns in information Behavioral flexibility — ability to modify personal behavior to react objectively rather than subjectively to accomplish organizational goals Oral communication — ability to express ideas clearly in words Written communication — ability to express ideas clearly in writing Personal impact — ability to create a good impression and instill confidence Resistance to stress — ability to perform under stressful conditions Tolerance for uncertainty — ability to perform in ambiguous situations 1.
Say, for example, that the organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales. Organizing: After a plan is in place, a manager needs to organize his team and materials according to the plan. Assigning work and granting authority are two important elements of organizing.
Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. A manager in a large organization often works with the company's human resources department to accomplish this goal.
Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees.
Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area's plans remain on track. All managers at all levels of every organization perform these functions, but the amount of time a manager spends on each one depends on both the level of management and the specific organization. Not only is a manager a team leader, but he or she is also a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one.
And these are just a few of a manager's roles. In addition managers' schedules are usually jam-packed. Whether they're busy with employee meetings, unexpected problems, or strategy sessions, managers often find little spare time on their calendars. In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager fills.
These roles fall into three categories: Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making. Disseminator Forward information to organization members via memos, reports, and phone calls. Spokesperson Transmit information to outsiders via reports, memos, and speeches. Interpersonal Figurehead Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents.
Leader Direct and motivate subordinates; counsel and communicate with subordinates. Liaison Maintain information links both inside and outside organization via mail, phone calls, and meetings. Decisional Entrepreneur Initiate improvement projects; identify new ideas and delegate idea responsibility to others. Disturbance Take corrective action handler during disputes or crises; resolve conflicts among subordinates; adapt to environments.
Resource Decide who gets resources; allocator prepare budgets; set schedules and determine priorities. Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets.
It has to be done through and with the people in formally organized groups. Some of its features are: it integrates human, physical and financial resources, it is goal-oriented, it is a continuous process, it is all pervasive and finally it is a group activity. There are six functions of management viz. All these functions are unique in themselves and they assist in smooth functioning of an organization. Administration means setting of major objectives, and broad programmes and projects.
Whereas, management involves conceiving, initiating and bringing together the various elements; together towards meeting organization pre-determined goals. A Manager is the person responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary.
Managers need to acquire technical, human and conceptual skills. Manager has to perform all the functions of management. This is the first step into a management career. Justify vi Who is called a manager? What skills does he need to be successful? Discuss the System contingency approaches to management.
Understand the contribution of F. Taylor, Henri Fayol and Elton Mayo to the development of management. Elaborate the various management functions. We occupy but one point in this stream. The purpose Within the field of management, eight schools of thought have contributed significantly to the development of management. The following table brings together the theories of management and the issues that they address. Although these schools or theoretical approaches developed historical sequence, later ideas have not replaced earlier ones.
Instead, each new school has tended to complement or coexist with previous ones. At the same time, each school has continued to evolve, and some have even merged with others. In the United States especially, skilled labor was in short supply at the beginning of the twentieth century. The only way to expand productivity was to raise the efficiency of workers.
Therefore, Frederick W. Taylor, Henry L. Gantt, and Frank and Lillian Gilbert devised the body of principles known as scientific management theory.
F W Taylor is considered to be the father of scientific management. Together with Taylor they revolutionized management thinking. Scientific management is the name given to the principles and practices that grew out of their work of Taylor and his followers and that are characterized by concern for efficiency and systematization in management. Workers should be scientifically selected and trained to do the work. There should be co-operation between management and workers.
And There should be division of labour between managers and workers. He emphasized the psychology of the worker and the importance of morale in production. Grant devised a wage payment system and developed a chart in system of control for scheduling production operation which became the basis for modern scheduling techniques like CPM and PERT. Frank and Lillian Gilbert concentrated on time-and-motion study to develop more efficient ways of performing repetitive tasks.
Time-and-motion study and piece-rate incentives are two major managerial practices developed and widely in use today. During the same period, classical organization theory complimented scientific management by providing a framework for the structuring the organization. The leading proponents of classical organization theory were Henri Fayol a French engineer , Lyndall Urwick a British company manager , and Max Weber a German sociologist.
The Classic organizational theory has been derived from organizational structures and procedures during the industrial revolution which emphasis the Economic rationale for the factory system and believed that all formal organizations are force multipliers. It main features: Organizations exist to accomplish production-related and economic goals. Production is maximized through specialization and division of labor.
People and organizations act in accordance with rational economic principles. The Classic organizational theory is followed by Neoclassical Organization Theory and the Modern Structural Organization Theory which talked about the important source of the power and politics, organizational culture, systems theory, specialization and division of labor.
Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity. The theorists who contributed to this school viewed employees as individuals, resources, and assets to be developed and worked with — not as machines, as in the past. Several individuals and experiments contributed to this theory.
The Elton Mayo and Roethlisberger Hawthorne experiment in Chicago from to concludes that human relations and the social needs of workers are crucial aspects of business management. Abraham Maslow, developed one of the most widely recognized need theories, a theory of motivation based upon a consideration of human needs. His theory of human needs had three assumptions: Human needs are never completely satisfied.
Human behavior is purposeful and is motivated by the need for satisfaction. Needs can be classified according to a hierarchical structure of importance, from the lowest to highest. The Two Factor theory of Douglas McGregor that, the Theory X manager has a negative view of employees and assumes that they are lazy, untrustworthy, and incapable of assuming responsibility.
On the other hand, the Theory Y manager assumes that employees are not only trustworthy and capable of assuming responsibility, but also have high levels of motivation. After the war, their ideas were applied to industrial problems which were previously unsuccessfully solved by conventional means. The contribution of the quantitative school was greatest in the areas of planning and control. The management science school places greater weight on the overall planning and decision-making process.
It relies heavily on the use of computers and mathematical models in planning; It is focused on the evaluation of effectiveness of models like the techniques of the use of models in managerial decision making: the return on investment analysis for example. In essence, by using computers and quantitative analysis techniques, the management science school has made it possible to consider the effect of a number of variables in organizations which may otherwise have been overlooked.
It must be emphasized that statistical evidence alone may not be sufficient to solve various management problems. The more comprehensive techniques of the behavioral school or the administrative management approach may still be needed to complement. Especially the behavioral school has the ability to look at the welfare of staff and can identify the reasons behind certain behavior.
The contingency approach believes that it is impossible to select one way of managing that works best in all situations like promoted by Taylor. Their approach is to identify the conditions of a task scientific management school , managerial job administrative management school and person human relations school as parts of a complete management situation and attempt to integrate them all into a solution which is most appropriate for a specific circumstance.
Contingency refers to the immediate contingent or touching circumstances. The manager has to systematically try to identify which technique or approach will be the best solution for a problem which exists in a particular circumstance or context.
An example of this is the never ending problem of increasing productivity. The different experts would offer the following solutions: Behavioral scientist: create a climate which is psychologically motivating; Classical management approach: create a new incentive scheme; Contingency approach: both ideas are viable and it depends on the possible fit of each solution with the goals, structure and resources of the organization.
The contingency approach may consider, for policy reasons, that an incentive scheme was not relevant. The complexity of each situation should be noted and decisions made in each individual circumstances. It should be realized that the contingency approach is not really new because Taylor already emphasized the importance of choosing the general type of management best suited to a particular case. Henri Fayol, in turn, also found that there is nothing rigid or absolute in management affairs.
Similar ideas were expressed in the s, by Mary Parker Follett who was greatly interested in social work and was a genius for relating individual experience to general principles. She noted that these requirements were constantly changing and needed continuous efforts to maintain effective working relationships.
The contingency approach seeks to apply to real life situations ideas drawn from various schools of management thought. They claim that no one approach is universally applicable and different problems and situations require different approaches. Managers must try to find the approach that is the best for them in a certain given situation, so they can achieve their goals. It is important to note that the contingency approach stresses the need for managers to examine the relationship between the internal and external environment of an organization.
Critics of the contingency approach have blamed it to lack theoretical foundation and are basically intuitive. Managers today are advised to analyze a situation and use ideas from the various schools of thought to find an appropriate combination of management techniques to meet the needs of the situation. After the depression of , Taylor became an industrial apprentice patternmaker, gaining shop-floor experience at a pump-manufacturing company.
Taylor is regarded as the father of scientific management, In Peter Drucker's description; Frederick W. Taylor was the first man in recorded history who deemed work deserving of systematic observation and study. On Taylor's 'scientific management' rests, above all, the tremendous surge of affluence in the last seventy-five years which has lifted the working masses in the developed countries well above any level recorded before, even for the well-to-do.
Taylor believed that the industrial management of his day was amateurish, that management could be formulated as an academic discipline, and that the best results would come from the partnership between a trained and qualified management and a cooperative and innovative workforce. Each side needed the other, and there was no need for trade unions. Taylor's scientific management consisted of four principles: 1.
Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. Scientifically select, train, and develop each employee rather than passively leaving them to train themselves. Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task" Montgomery Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.
Taylor had very precise ideas about how to introduce his system. It is only through enforced standardization of methods, enforced adoption of the best implements and working conditions, and enforced cooperation that faster work can be assured. And the duty of enforcing the adoption of standards and enforcing this cooperation rests with management alone. Taylor thought that by analyzing work, the "One Best Way" to do it would be found. He is most remembered for developing the time and motion study.
Taylor's system was widely adopted in the United States and the world until its demise in the 's as organized labor pushed for a minimum wage based on hourly pay, as opposed to Taylor's contention that pay ought to be based on performance. In practice "Taylorism" too often fell short of collaboration between labor and management and, frequently, was a mask for business exploitation of workers.
The enduring and unquestionable contribution of Frederick Taylor is that management is firmly established as something done by trained, professional practitioners and is elevated as the subject of legitimate scholarship. He lectured at the University of Queensland from to before moving to the University of Pennsylvania, but spent most of his career at Harvard Business School - , where he was professor of industrial research.
Mayo is known as the founder of the Human Relations Movement, and is known for his research including the Hawthorne Studies, and his book The Human Problems of an Industrialized Civilization However it was not Mayo who conducted the practical experiments but his employees Roethlisberger and Dickinson. This enabled him to make certain deductions about how managers should behave. He carried out a number of investigations to look at ways of improving productivity, for example changing lighting conditions in the workplace.
What he found however was that work satisfaction depended to a large extent on the informal social pattern of the work group. Where norms of cooperation and higher output were established because of a feeling of importance, physical conditions or financial incentives had little motivational value. People will form work groups and this can be used by management to benefit the organization. He concluded that people's work performance is dependent on both social issues and job content.
He suggested a tension between workers' 'logic of sentiment' and managers' 'logic of cost and efficiency' which could lead to conflict within organizations.
Flowing from the findings of these investigations he came to certain conclusions as follows: Work is a group activity. The social world of the adult is primarily patterned about work activity. The need for recognition, security and sense of belonging is more important in determining workers' morale and productivity than the physical conditions under which he works. A complaint is not necessarily an objective recital of facts; it is commonly a symptom manifesting disturbance of an individual's status position.
The worker is a person whose attitudes and effectiveness are conditioned by social demands from both inside and outside the work plant. Informal groups within the work plant exercise strong social controls over the work habits and attitudes of the individual worker. The change from an established society in the home to an adaptive society in the work plant resulting from the use of new techniques tends continually to disrupt the social organization of a work plant and industry generally.
Group collaboration does not occur by accident; it must be planned and developed. He then moved into research geology and in joined Comambault as Director. Comambault was in difficulty but Fayol turned the operation round. On retirement he published his work - a comprehensive theory of administration - described and classified administrative management roles and processes that became recognized and referenced by others in the growing discourse about management.
He is frequently seen as a key, early contributor to a classical or administrative management school of thought. His aspiration for an "administrative science" sought a consistent set of principles that all organizations must apply in order to run properly. Taylor published "The Principles of Scientific Management" in the USA in , and Fayol in examined the nature of management and administration on the basis of his French mining organisation experiences.
Fayol argued that principles existed which all organisations - in order to operate and be administered efficiently - could implement. This type of assertion typifies a "one best way" approach to management thinking.
Fayol's five functions are still relevant to discussion today about management roles and action. Fayol also synthesised 14 principles for organisational design and effective administration as under: 1.
Division of work: Division of work and specialization produces more and better work with the same effort. Authority and responsibility: Authority is the right to give orders and the power to exact obedience. Authority creates responsibility. Discipline: Good discipline requires managers to apply sanctions whenever violations become apparent. Unity of command: An employee should receive orders from only one superior. Unity of direction: Organizational activities must have one central authority and one plan of action.
Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization. Remuneration of personnel: Salaries to employees should be fair and provide satisfaction both to the employee and employer.
Centralization: The objective of centralization is the best utilization of personnel. Scalar chain: A chain of authority exists from the highest organizational authority to the lowest ranks. Order: The right materials and the right employees are necessary for each organizational function and activity.
Equity: equity is a combination of kindliness and justice. Both should be considered when dealing with employees. Stability of tenure of personnel: To attain the maximum productivity of personnel, a stable work force is needed. Initiative: Zeal, energy, and initiative are desired at all levels of the organizational ladder. Esprit de corps: Teamwork is fundamentally important to an organization.
Drucker's most famous text, The Practice of Management, published in , laid out the American corporation like a well-dissected frog in a college laboratory, with chapter headings such as "What is a Business? He was saying that management was not a science or an art.
It was a profession, like medicine or law. It was about getting the very best out of people. As he himself put it: "I wrote The Practice of Management because there was no book on management. I had been working for 10 years consulting and teaching, and there simply was nothing or very little. So I kind of sat down and wrote it, very conscious of the fact that I was laying the foundations of a discipline. When executives were engaged in empire-building, he argued against excess staff and the inefficiencies of numerous "assistants to.
What particularly enraged him was the tendency of corporate managers to reap massive earnings while firing thousands of their workers. He was the first to assert -- in the s -- that workers should be treated as assets, not as liabilities to be eliminated. Fill in the blanks: a. Taylor published in the USA in They are accountable for its use and misuse. Similarly he dwells on the concept of Seven Sins which lays down the ways to lead personnel, social and political lives for an individual.
Therefore it was for His people as a whole, not for a particular individual. God who was all- powerful had no need to store. He created from day to day; hence men also should in theory live from day to day and not stock things. If this truth was imbibed by the people generally, it would become legalized and trusteeship would become a legalized institution.
The rest of my wealth belongs to the community and must be used for the welfare of the community. I want them zamindars to outgrow their greed and sense of possession, and to come down in spite of their wealth to the level of those who earn their bread by labour.
The labourer has to realize that the wealthy man is less owner of his wealth than the labourer is owner of his own, viz. As for the present owners of wealth, they would have to make their choice between class war and voluntarily converting themselves into trustees of their wealth.
They would be allowed to retain the stewardship of their possessions and to use their talent to increase the wealth, not for their own sakes, but for the sake of the nation and, therefore, without exploitation. The State would regulate the rate of commission which they would get commensurate with the service rendered and its value to society.
Their children would inherit the stewardship only if they proved their fitness for it. It simply meant that everybody should have enough for his or her needs. If a single man demanded as much as a man with wife and four children that would be a violation of economic equality.
Trusteeship provides a means of transforming the present capitalist order of society into an egalitarian one. It gives no quarter to capitalism, but gives the present owning class a chance of reforming itself.
It is based on the faith that human nature is never beyond redemption. It does not recognize any right of private ownership of property except so far as it may be permitted by society for its own welfare. It does not exclude legislative regulation of the ownership and use of wealth. Thus under State-regulated trusteeship, an individual will not be free to hold or use his wealth for selfish satisfaction or in disregard of the interests of society.
Just as it is proposed to fix a decent minimum living wage, even so a limit should be fixed for the maximum income that would be allowed to any person in society. The difference between such minimum and maximum incomes should be reasonable and equitable and variable from time to time so much so that the tendency would be towards obliteration of the difference.
Under the Gandhian economic order the character of production will be determined by social necessity and not by personal whim or greed. The philosophy of Trusteeship believes in inherent goodness of human beings.
It involves the capitalists and landlords in the service of society without any element of coercion. Gandhiji himself believed that their destruction would result in the end of the workers 2. All of them have to do with social and political conditions. There are professionals and businessmen who are able to accumulate wealth without working.
Enjoy benefits from government programs without any financial burden. No risk and no responsibilities. Pleasure without Conscience: The pleasurable activities are devoid of any social responsibility or accountability. We are just self-centered. We are least bothered about the effect of our acts on others.
Knowledge without Character: Building character of students in academics while imparting knowledge is one of the primary tasks of a teacher. As dangerous as a little knowledge is, even more dangerous is much knowledge without a strong, principled character. Inculcating the concept of kindness, fairness, dignity, contribution, honesty and integrity are worth in developing character. Knowledge with strong inbuilt character will create people with conviction and empathy.
Commerce Business without Morality Ethics : If we ignore the moral foundation and allow economic systems to operate without moral foundation and without continued education, we will soon create an amoral, if not immoral, society and business.
Economic and political systems are ultimately based on a moral foundation. Business and ethics should go hand in hand for both to prosper i. Science without Humanity: If science becomes all technique and technology, it quickly degenerates into man against humanity. Technologies come from the paradigms of science. And if there's very little understanding of the higher human purposes that the technology is striving to serve, we become victims of our own technocracy. Religion without Sacrifice: Practicing religion without sacrifice means like reading the holy books for the sake of it but not putting it in practice.
It takes sacrifice to serve the needs of other people - the sacrifice of our own pride and prejudice, among other things. If this happens than it can be called as real worship. Pride and selfishness will destroy the union between man and god, between man and woman, between man and man, between self and self. Humility is the hallmark of inner religion. Politics without Principle: We see politicians spending millions of rupees to create an image, even though it's superficial, lacking substance, in order to get votes and gain office.
And when it works, it leads to a political system operating independently of the natural laws that should govern the society and the country. This leads to a society with distorted values. In the best societies, natural laws and principles govern - that's the Constitution - and even the top people must bow to the principle. No one is above it. It consists of 15 chapters, Shlokas and Sutras. In all probability, this treatise is the first ever book written on Practice of Management.
It is essentially on the art of governance and has an instructional tone. Kautilya wrote this treatise for his swamy the king Chandragupta Maurya and stated in its preface that it has been written as a guide for "those who govern".
As in the present day management, the importance of vision, mission and motivation was captured in Arthashastra. Kautilya's concepts of the objectives of a king seem to be virtually adopted by Peter Drucker in his book, Managing for Results. Kautilya reminds his swamy that his objectives for his rule are: 1. Acquire power; Making present business effective 2. Consolidate what has been acquired; Making present business effective 3.
Expand what has been acquired; and Identify potential and realize it 4. Enjoy what has been acquired. Making it a different business for a different future On the organizational aspects, Kautilya evolves an elaborate hierarchy under the king. The king appoints Amatya, the Prime Minister, who operates the day-to-day machinery of the State through a council of officials consisting of Mantris, the Ministers, Senapati, the warlord or the Defence Minister, Purohit, the Chief Justice and Yuvaraj, the Heir Apparent or identified successor to the throne Arthashashtra has detailed policies for the society, individual industries, labor and employment, calamities and control of vices.
He observes that the State, as an organization, is a social organization with economic aim. Here again, Peter Drucker and Kautilya go hand in hand as Drucker defines an organization as having 'social dimension and economic objective'. Finally, from the point of view of management of the kingdom, Kautilya's advice to his Swamy is indeed introspective and valid to the corporate world of the 21st century.
Run a diversified economy actively, efficiently, profitably and prudently. Bear in his mind that a king with depleted treasury is a weak king and the easiest target for a takeover. Ensure enactment of prudent policies. Reign only with the help of others. Take proper care in appointing advisors. An ideal Swamy is the one who has the highest qualities of leadership, intellect, energy and personal attributes.
Wealth lies in economic activities. Profitability should not only mean surplus over costs. It should also mean provision of investment for future growth. Diversified economy should consist of productive forests, water reservoirs, mines, productive activities, trade, markets, roads, ports, and storages. Efficient management means setting up of realistic targets and meeting targets without using overzealous methods.
Arthashastra is the evidence of the intellectual capital India possessed in its glorious past. We have the tradition of the past. We need the attitude for resurrecting and recreating the intellectual capital for the future. Indian Management concepts and thoughts can be traced back into the 4th century before Christ. Peter Druker has been influenced by it in shaping his concepts and thoughts.
Briefly explain the evolution of management thoughts along with the theories of management and the problems they address 2. In a nut shell discuss the four management schools that you have studied. What is contingency approach to management? Write a brief note on contingency approach management 5.
Explain the findings of George Elton John Mayo regarding the connection between cooperation and higher output 7. What are the five functions of Fayol 8. Explain the findings of George Elton John Mayo regarding the connection between cooperation and higher output What are the five functions of Fayol Discuss the contribution of Peter Drucker in the modern thoughts of management.
Elaborate on the concepts of Seven Sins as propagated by Gandhi. Know the role of Environment in the performance of business. Discuss the types of environment viz. Explain the concept business ethics its relevance and importance in running business. Remove either value and success becomes impossible.
The term 'business environment implies those external forces, factors and institutions that are beyond the control of individual business organisations and their management and affect the business enterprise.
Business environment influence the functioning of the business system. These forces are customer, creditors, competitors, government, socio- cultural organisations, political parties national and international organisations etc. Specific forces affect individual enterprises directly and immediately in their day-to-day working.
General force shaves impact on all business enterprises and thus may affect an individual firm only indirectly. Similarly, demand for sarees may be fairly high in India whereas it may be almost non-existent in France. Here there are some internal factors which are generally controllable because the company has control over these factors. It can alter or modify such factors as its personnel, physical facilities, and organization and functional means, like marketing, to suit the environment.
The important internal factors which have a bearing on the strategy and other decisions of internal organization are discussed below i Value system: The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and the objectives of the organization, business policies and practices. It is an important factor in achieving the objectives of the organization.
The mission is the medium through which the objectives are achieved. The structure and style of the organization may delay a decision making or some other helps in making quick decisions. The mutual co-ordination among them is an important need for a business. The relationship among the people working in various levels of the organization should be cordial. The human resource in any organization must have characteristics like skills, quality, high morale, commitment towards the work attitude, etc.
The involvement and initiative of the people in an organization at different levels may vary from organization to organization. The organizational culture and overall environment have bearing on them. It helps in raising the finance, making joint ventures, other alliances, expansions and acquisitions, entering sale and purchase contracts, launching new products, etc.
Brand equity also helps the company in same way. The proper working of the assets is indeed for free flow of working of the company.
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