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Management's role is to guide organizations toward goal accomplishments.

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Apple's Core Value...Apple believe that with passion people can change the world for the better. People that are crazy enough to change the world actually do!

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Best marketing strategy ever! Steve Jobs Think different / Crazy ones speech (with real subtitles)

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Everyone who is a great leader isn’t necessarily a great manager. And great managers aren’t necessarily great leaders. Which are you?

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Management involves far more than just telling others what to do.  The major functions that a manager completes can be categorized into four different functions known as planning, organizing, leading, and controlling.

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Familiarize yourself with the law, they are there to protect you. Simply put, ethics involves learning what is right or wrong, and then doing the right thing . It's important for organizations to know what's right and what's wrong in a workplace.

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It's clear that managers should perform all legal social responsibilities because it's the right thing to do. Building a positive relation with employees and their communities can lead to a great profit.
Can you see right from wrong?

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Why Workplace Diversity Is So Important, And Why It's So Hard To Achieve

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Why Workplace Diversity Is So Important, And Why It's So Hard To Achieve

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A strong corporate culture that invests in diversity and inclusion is one of the greatest

competitive advantages a company can maintain. True leaders must boldly lead their organizations in all areas of business while at the same time be open to learning from their top management, employees, and peers to keep ahead of new ideas.
What is the diversity like in your workplace?

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Post written by

Meir Shemla

Meir Shemla is an Associate Professor in the Department of Organisation and Personnel Management at RSM More about Meir Shemla

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Is there still anyone out there who doesn't think that workplace diversity is a good thing?

Diversity gives you access to a greater range of talent, not just the talent that belongs to a particular world-view or ethnicity or some other restricting definition. It helps provide insight into the needs and motivations of all of your client or customer base, rather than just a small part of it. And, potentially, as McKinsey & Co and a host of other highly credible researchers have shown, it makes your organization more effective, more successful, more profitable.

However, actually achieving it in practice has turned out to be far more difficult than anticipated.

Our research at RSM suggests that, despite a genuine will on the part of most major organizations to implement productive diversity strategies, few, if any, have to date come up with something that really works.

So what is going wrong and how can it be put right?

Firstly, it seems that too many organizations make the fundamental error of failing to align their diversity practices with their organizational goals. And in such situations, no matter how much good will there is towards the concept of diversity, the harsh realities of running the business on a day-to-day basis, of keeping customers satisfied, of selling and delivering the product or service will keep undermining it. And secondly, there is often a mismatch between how organizations design diversity policies and how they implement them. Or to put it another way, what looks good on paper too often falls apart in practice.

However, while our investigations produced these rather dispiriting findings, they also helped us to identify four clear steps towards making workplace diversity a reality:

Clearly identify what you are trying to achieve. - And simply saying 'workplace diversity' isn't good enough because the devil is, of course, in the detail. Too many diversity initiatives simply miss their intended target. For example, many organizations aim to realize the performance potential of diverse teams, by then implement diversity policies primarily designed to impact the representation of certain social groups in leadership positions. Only by understanding what the ultimate goal is can you have a chance of reaching it.

Don't 'copy and paste.' - Every organization is unique, so every diversity initiative needs to be too. Simply borrowing one from somewhere else is unlikely to work. Which is perhaps why, for example, efforts to duplicate Norway's approach to boardroom diversity in other places have largely proven unsuccessful, mainly because those other places don't have the Norwegian history nor the Norwegian social infrastructure and gender norms behind them. Every program needs to take into account the specific culture and context of its host organization if it is going to do the required job.

Good design is important but good implementation is vital. - There is a long-standing maxim in the military that no plan survives contact with the enemy. And in the corporate few diversity initiatives survive contact with operational management. Simply handing over even the best designed program to individuals who may not have the tools, the capability or perhaps the motivation to implement it is likely to be a recipe for disaster.

Win 'hearts and minds.' - Successful initiatives answer the basic question, "Why should I do this?" If individuals within the organization cannot see the benefits of a program (or even worse if they identify disadvantages) then it will ultimately fail.

Of course it's a cliché to say that nothing worth achieving comes easily. But it's also true. And the benefits of true workplace diversity are so obviously attractive that the challenges inherent in it simply have to be addressed. And we hope that the four steps outlined above will, at least in part, help to do that.

We are one of Europe's top 10 research-based business schools, providing ground-breaking research and education furthering excellence in all aspects of management. We ar...

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Why Workplace Diversity Is So Important, And Why It's So Hard To Achieve

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Managing diversity in organizations is one of the defining issues of our time. Most institutions try to promote the creation of a diverse, creative workforce, but unfortunately, even after several decades of work, how this is created is still very unclear. A more scientific approach is needed.

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Always be well-armed to make decisions. Implement your decision-making with good choices. Check your final decision to make sure it supports your objective.
Sometimes, managers make poor decisions and consequences effects the workforce,
Are you a manager with good decision-making skills?

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An international alliance involving many different countries. Global organizations allows companies to do business all over the world. It helps the economy by creating jobs and establishing relationships,

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Quality is more than just having a good brand. Quality is having management that can build a quality team to produce a quality product.

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When people use the word "Quality," it's usually as a synonym for "good." Many brands tout their products as "high quality" or "superior quality" in just this way without really defining what the characteristics of "Quality" are, and we're more likely to see it in marketing material than in integral business process or policy documents.

Our purpose here is to:

explore the principles and the concept of Quality,

define who is responsible for Quality, and

examine the concept of the Cost of Quality and how it can impact any organization.

Readers who are just beginning to think about the idea of Quality and the way it can improve business processes will benefit from this introductory examination.

What is Quality? Quality is about much more than describing a product or service as "good." Quality Management professionals see Quality as the following:

Satisfying a set of explicitly or implicitly defined inherent characteristics.

1. Providing products or service features that customers need. These features lead to customer satisfaction and exceeding customer expectations, which, in turn, lead to increased revenue for the producer. Ensuring Quality by adding features that customers want while ensuring consistency and reliability with every iteration has a cost, but the cost of not embracing Quality is much higher, including lost market share, missed opportunities, brand damage, and recalls due to design and manufacturing flaws.

2. Designing features that are free from deficiencies and errors. Products or services that are deficient and don't work as they should require rework or, if they make it to the marketplace, lead to costly recalls and customer dissatisfaction, all of which costs an organization money, time, and brand integrity. Defects found at later stages of product development are far more costly than if they had been found earlier.i

3. Ensuring ongoing continuous improvement (CI) to address the root causes of defects that are inherent in processes, tools, and designs and that have a significant impact. By addressing the root causes through CI rather than the symptoms, organizations can reduce the Cost of Quality, increase efficiency, sustain a Culture of Quality, minimize rework activities on the shop floor and in the back office, reduce scrap, and ultimately have fewer recall events. Revenue and overall market share then increase as a result of improved product quality, higher levels of customer satisfaction, and increased market share. According to the Center for Economic and Business Research, every $1 invested in Quality produces $16 in cost reduction and a $3 increase in profit.ii

Those who work in Quality often refer to the Quality Management System (QMS). The QMS is not a machine or an application, but is the underlying Quality process architecture on which the organization sits. The term "QMS" includes all the people, processes, stakeholders, and technologies that are involved in an organization's Culture of Quality, as well as the key business objectives that make up its goals.

Quality is both a perspective and an approach to increasing customer satisfaction, reducing cycle time and costs, and eliminating errors and rework using a set of defined tools such as Root Cause Analysis, Pareto Analysis, etc. The International Organization for Standardization (ISO) defines "Quality" as "the degree to which a set of inherent characteristics fulfills a requirement," and "requirement" as "a need or expectation that is stated, generally implied or obligatory." Examples of requirements include:

Customer specifications such as reliability, availability, accuracy, and delivery dates.

Value for goods and services purchased such as ROI and productivity gains.

Various ISO standards relating to Quality including ISO 9001, IATF 16949, and ISO 13485.

Statutory requirements such as the Food Safety Modernization Act, FDA code of federal regulations, Canadian Standards Association, Underwriters Laboratories, EU directives, and the Occupational Health & Safety Act.

Various industry requirements.

Quality is not a program or a discipline. It doesn't end when you have achieved a particular goal. Quality needs to live in the organization as the Culture of Quality in which every person experiences and understands the need for dedication to its values. Quality is a continuous race to improvement with no finish line.

At a more general level, Quality is about doing the right thing for your customers, your employees, your stakeholders, your business, and the environment in which we all operate. From the level of the individual employee all the way up to the level of our planet, Quality is about maximizing productivity and delighting customers while protecting our people and our resources from the harm that results from shoddy processes and careless oversight. Quality is an approach that should be the goal of every organization from business and manufacturing to healthcare, government, and not-for-profits.

Quality specialists use the term Total Quality Management (TQM) to describe the implementation of the fundamental principles of Quality at all levels of an organization. While TQM has traditionally suggested wide adoption of process tools and analytical methods, the definition has expanded to consider the wider cultural principles of the entire organization. Culture of Quality is the extension of TQM to include both explicit efforts by people to improve Quality and the underlying beliefs, philosophies, and behaviors on which those efforts rest. A successful Culture of Quality is one in which the core Quality values of the organization, such as a focus on responding to the needs of the customer and on the need for data-based decision-making, and the basic assumptions of workers regarding the nature of human relationships and their place in the world, such as the value of collaborative relationships among people with common goals and the importance of developing long-term personal connections, are closely integrated with one another. iii Commitments to core values are relatively easy to measure, since they are overtly expressed and understood at all levels of the organization. Basic assumptions often resist explicit analysis, even to the people who hold them, which can make engagement at this level difficult.

When an organization adopts a Culture of Quality, the success of its implementation can depend on whether core principles and underlying assumptions already reflect Quality or can be effectively modified to embrace Quality through dedicated change management. The further away an organization's culture is from adhering to the principles of a Culture of Quality, the more difficult and failure-prone the implementation is likely to be, particularly if a commitment to core values clashes with underlying assumptions. iv

What are the typical attributes of an organization with an integrated Culture of Quality? v In exemplary cultures, leadership demonstrates its commitment to Quality by providing the necessary support to Quality initiatives and communicating about Quality values in clear and unambiguous language. Employees encourage sharing ideas and cross-functional work, while feeling that leadership trusts them to be pro-active and to apply their Quality and problem-solving skills according to their best judgement.vi A Culture of Quality is therefore only possible when leadership and workers share an aligned and comprehensive understanding of not only the core values and processes they use and espouse, but their fundamentally basic assumptions of the nature of work and human relationships on which those core values rest.

The People Responsible for Quality

W. Edwards Deming, one of the founders of the Quality movement in the United States, said that "Quality is everyone's responsibility." Most people have interpreted this as meaning that Quality is something that should be ubiquitous in an organization. In other words, Quality should be sewn into the very fabric of an organization's identity, not simply the responsibility of an isolated and siloed "Quality Department." Yet we should consider what author and Quality expert Rafael Aguayo tells us was Deming's in-person conclusion to his famous injunction:

"Quality is everyone's responsibility, but top management have more leverage in their decisions than anyone else."

The initiative for Quality must come from the top.vii While responsibility for implementation and execution will lie with a Quality leader in a dedicated Quality department with support from their counterparts in operations, engineering, sales, marketing, and IT, the desire to implement Quality standards throughout an organization must come from the leadership team. They must walk the talk for a Quality program to be successful. While there is certainly value in instilling the concept of Quality in every member of an organization, without direct and explicit initiative and methods for implementing those ideas, another way of saying "Quality is everyone's responsibility" is "Quality is no one's responsibility in particular." Everyone should strive for Quality, but defining how to do that in very specific terms is something that can come only from the initiative of organizational leadership and be entrusted to specific cross-functional stakeholders for implementation. This is further reinforced in the latest ISO 9001:2015 standard, which shifts responsibility and accountability from a Quality "designate" back to the leadership team where it belongs.

A Short History of Quality

The concept of Quality Management has its origins in the work of statistician Walter Shewhart, who was conducting research on the analysis of industrial processes while working at Bell Laboratories in the early 20th century.viii Shewhart realized manufacturing processes produced data that he could measure and analyze to determine their conformity to ideal standards of stability and control, and he could apply remedies that would bring any deviations back into line. This revolutionary approach highlighted the advantage of process-centered applications of Quality over older product-centered approaches. This concept is now referred to as statistical quality control (SQC) and is the backbone of the initial exploration of Quality in manufacturing.

In the 1940s, the Second World War prompted the American government to implement Quality standards based on SQC for military vendors.ix This improved Quality in the short term, but most civilian manufacturers failed to incorporate process improvement throughout their organizations. After the war, engineers W. Edwards Deming and Joseph M. Juran worked as consultants in Japan as Japanese industry worked to recover from the war and transform their economy to focus on civilian production of goods and services. Deming and Juran worked with Japanese manufacturers to create the concept of Total Quality, in which Quality extends beyond the manufacturing process to all organizational processes and instills the values of Quality in every worker.x As a result of this Total Quality transformation, Japan became a manufacturing powerhouse, vastly increasing its market share at the expense of American manufacturers who had yet to recognize the value of Total Quality.

In the 1980s, American manufacturers and legislators began to recognize the crises of poor Quality in American manufacturing. The American response, built on Deming's and Juran's work in Japan, was Total Quality Management (TQM). The first ISO 9000 standard for Quality appeared in 1987, and it continues to be the globally recognized standard for Quality accreditation across many industries.

Since 2000, ISO 9000 has evolved to meet the needs of a changing marketplace. Globalization and emerging technologies have expanded both the scope of Quality and the tools used to meet Quality standards. New approaches, such as Six Sigma developed by Motorola, have achieved remarkable levels of productivity and variation reduction to produce goods and services that are free from defects. Quality is now seen as an approach that can be applied to any organization, including services, government, healthcare, education, and even nascent technology like Bitcoin and Blockchain.

Business Case for Quality Management

Implementing Quality Management and investing in a QMS requires the initiative of executive sponsorship in any organization. Leadership typically doesn't spend money without a strong business case that highlights either the costs of not investing (COPQ) or the market advantage that can be gained by investing. Given the reality that the benefits of Quality Management are difficult to quantify in direct terms and have longer payback periods, executives with no experience in Quality Management often do not see the value of investing in it compared to investments in sales and engineering, where the direct benefits are easier to calculate.

The reality is that the typical catalyst for garnering executive sponsorship for Quality is often a negative compelling event, such as a recall or significant loss of market share.xi While negative compelling events can indeed be powerful catalysts for change and help focus executive attention on Quality Management, it may also come at tremendous cost: lives may be lost, ecosystems may be destroyed, and the organization may suffer significant brand and financial damage as these external failures increase costs by an order of magnitude.

Gaining executive support starts with presenting a strong business case supported by qualitative and quantitative data that tell the story of positive compelling events and financial return such as reduced waste, increased efficiency, and increased customer satisfaction. By making a strong case for proactively investing in Quality, organizations can avoid situations in which they only see value in Quality by responding to negative events that have a destructive and irreversible impact on the organization, the marketplace, and the environment.

Cost of Quality (COQ) is a way of measuring the costs associated with ensuring that a Culture of Quality thrives in an organization, as well as the costs associated with Quality failures. xii There are four types of Quality-related costs:

1. Prevention costs. These planned costs are the result of designing and implementing a QMS and preventing Quality problems from arising. These costs include Quality planning, training, and Quality assurance.

2. Appraisal costs. These costs are the result of measuring the effectiveness of a Quality Management System and apply to both manufacturers and the supply chain. These costs include verification, Quality audits, and supplier assessment.

3. Internal failure costs. These costs arise when the manufacturer discovers Quality failures before products or services are delivered to customers. They include waste from poor processes, excessive scrap, rework to correct errors, and the activity required to diagnose the cause of Quality failures.

4. External failure costs. These are the most expensive costs and are usually apparent only after the products or services have reached the customer. These costs include repairs, warranty claims, returns, and dealing with customer complaints.

The Cost of Poor Quality (COPQ) and its consequences can be difficult for organizations to measure, and it can be a struggle to convince executive stakeholders that Quality improvement projects to mitigate COPQ have real value and are not simply cost centers. The primary consequences of COPQ are the most obvious. Costs associated with process failures inside the organization include:

Excess scrap and waste material created by inefficient manufacturing processes,

Rework on defective or damaged products before they ship to market, and,

Retesting and analyzing processes and procedures to determine point of failure. If poor Quality is not caught before products or services make their way to end customers, the external costs can include those associated with:

Lawsuits,

Recalls,

Warranties,

Complaints,

Returns,

Repairs, and,

Field support.

The traditional Cost of Poor Quality has usually been assumed to be between 4 percent and 5 percent of an organization's annual revenue. xiii In other words, a business with $100 million in annual revenue is throwing away between $4 million and $5 million by failing to mitigate the impact of preventable process failures.

Yet, like an iceberg, the visible surface of the problem masks something far deeper.xiv Hidden costs associated with COPQ can include:

Decreased employee engagement,

Higher employee turnover and attrition,

Employees addressing Quality failures instead of focusing on Quality improvement through innovation,

Overtime costs,

Machine downtime,

Long-term customer dissatisfaction,

Brand damage,

Poor inventory turnover, and,

Decreased customer lifetime value.

When we account for these hidden and long-term costs, COPQ is more like 10 percent to 25 percent of an organization's annual revenue. To put that into perspective again, that would mean a company with $10 million in annual revenue is throwing away $1 million to $2.5 million every year on failures that are predictable and preventable. These costs are often passed on to customers in the form of a higher price tag, which leads to additional customer dissatisfaction and brand damage. Investing in Quality is therefore the most effective way of reducing these staggering costs.

This brief introduction to Quality has provided some background into its history, principles, and value for all organizations. Of course, it's not just an origin story, but also the groundwork for a plan of action to get leadership on board and address the startling figures relating to Cost of Quality. What is your next step? Start looking at your own processes with Quality principles in mind and think about all the ways Total Quality Management can bring positive change to your organization.

Intelex Technologies is a Toronto, Canada-based provider of Environmental, Health & Safety, and Quality (EHSQ) Management and workflow software for organizations of all sizes. The company is a leader in software-as-a-service solutions and serves customers from across a wide range of industries, located around the world. The Intelex platform is a mobile solution and provides integrated tools for front-line EHSQ professionals. We can be found at www.intelex.com.

Click here to download a pdf of this article.

1. Maurice Dawson et al, "Integrating Software Assurance into the Software Development Life Cycle (SDLC)," Journal of information Systems Technology and Planning 3: 49-53 (January 2010), accessed March 12, 2018, https://www.researchgate.net/publication/255965523_Integrating_Software_Assurance_into_the_Software_Development_Life_ Cycle_SDLC.

2. ii. "What's the Return on Investment (ROI) on Quality?," ISO Update, Jan 23, 2017, accessed March 13, 2018, http:// isoupdate.com/resources/whats-roi-quality/.

3. iii. Jaakko Kujala and Paul Lillrank, "Total Quality Management as a Cultural Phenomenon," Quality Management Journal Vol. 11, No. 4 (October 2004): 43-55.

4. iv. Kujala, 46.

5. v. Ashwin Srinivasan and Bryan Kurey, "Creating a Culture of Quality," Harvard Business Review, April 2014, accessed March 12, 2018, https://hbr.org/2014/04/creating-a-culture-of-quality#comment-section.

6. vi. Jonathan Bissell and Carlos Olvera, "The United States Army's Secret to Success: Capitalizing on the Human Dimension to Enhance Its Combat Capabilities," Military Review, November-December 2015: 84, accessed March 12, 2018, http:// www.armyupress.army.mil/Portals/7/military-review/Archives/English/MilitaryReview_20151231_art015.pdf.

7. vii. David C. Crosby, "Who is Responsible for Quality?," Quality Digest, April 20, 2010, accessed March 12, 2018, https:// www.qualitydigest.com/inside/twitter-ed/who-responsible-quality.html.

8. viii. "About Quality History: The Early 20th Century," ASQ, accessed March 12, 2018, http://asq.org/learn-about-quality/ history-of-quality/overview/20th-century.html.

9. ix. "About Quality History: World War II," ASQ, accessed March 12, 2018, http://asq.org/learn-about-quality/ history-of-quality/overview/wwii.html.

10. x. "About Quality History: Total Quality," ASQ, accessed March 12, 2018, http://asq.org/learn-about-quality/ history-of-quality/overview/total-quality.html.

11. xi. Dan Jacob, "Making the Case for Business Quality," Quality Digest, July 12, 2016, accessed March 12, https://www. qualitydigest.com/inside/management-column/071216-making-business-case-quality.html.

12. xii. "Learn About Quality: Cost of Quality (COQ)," ASQ, accessed March 12, 2018, http://asq.org/learn-about-quality/ cost-of-quality/overview/overview.html. xiii. Joseph A. DeFeo, "The Tip of the Iceberg," Quality Progress Vol. 34, No. 5 (May 2001): 31-32, accessed March 13, 2018, http://asq.org/data/subscriptions/qp/2001/0501/qp0501defeo.pdf.

13. xiv. Suresh Kumar Krishnan, "Increasing the visibility of hidden failure costs," Measuring Business Excellence, Vol. 10, No. 4 (2006): 84, accessed March 12, 2018, https://doi.org/10.1108/13683040610719290.

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What is Quality Management and Why Does it Matter?

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When people use the word “Quality,” it’s usually as a synonym for “good.” Many brands tout their products as “high quality” or “superior quality” in just this way without really defining what the characteristics of “Quality” are, and we’re more likely to see it in marketing material than in integral business process or policy documents.

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Christopher Columbus sailed the seas in 1492 for a New World.  The original purpose of the voyage was not to discover new lands but, they opened up a trade route to the "Indies" that would allow Spanish merchantmen to create global companies with other organizations.
Little know history fact.

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What Makes a Company a Multinational Corporation?

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What Makes a Company a Multinational Corporation?

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Multinational corporations are typically large companies headquartered in one country but, with operations in several countries.

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Multinational corporations have a wide global reach.

Comstock/Comstock/Getty Images

Multinational corporations are typically large companies headquartered in one country but with operations in several countries. The defining trait of a multinational corporation is being incorporated in one country and doing business in several countries. While these are the only criteria a company must meet to properly be considered a multinational corporation, there are other characteristics that these corporations tend to share in common.

Multinational Corporations Have Large Operations

While a business can technically be considered a multinational corporation if it has offices in two countries, most multinational corporations have relatively large operations. They might, for example, have business headquarters in each country or operate large warehouses, factories or offices in several countries. These operations typically require a large staff of workers and managers, as well as contracts with service providers such as attorneys and accountants.

MNC Imports and Exports

Because multinational corporations typically run large operations, they may need lots of supplies, products and materials. Consequently, these businesses tend to import products to serve their businesses as well as export products to other businesses. Multinational corporations also may import products from their own factories stationed in other countries or export products from a factory to a retailer in another country. While even an individual can import or export a product or two, a common characteristic of multinational corporations is the large volume of importing or exporting done by the company. Some small businesses become multinational corporations by expanding their businesses to include imports and exports.

Trading as a Public Corporation

Companies don't have to be traded publicly to become multinational corporations, but many of these corporations do go public. Publicly traded corporations make shares in their businesses available to investors. The investment money helps fund the company, and if the value of shares goes up, investors can share in the profits. This role in the stock exchange gives multinational corporations the ability to affect the economy of an entire nation. Some multinational corporations are traded in several nation's stock markets. Small businesses interested in becoming public corporations don't necessarily need to become huge. Public trading only requires that the company open its shares to a public audience, and many startups greatly expand when they choose to go public.

Partnerships and Affiliates

Since they're doing business across borders, many multinational corporations develop partnerships and affiliations with other businesses, non-governmental organizations and governments. Such affiliations might include the licensing of products or chains to individuals or businesses, partnerships with governments to fulfill local initiatives and affiliations with non-governmental organizations to help raise money for charitable causes.

Competing as a Small Business

Small businesses hoping to become multinational corporations generally need clear business plans as well as the capacity to expand operations, staff and business reach. That said, the internet has opened the world of multinational operations to all businesses. Some small businesses can compete in a global marketplace by selling on websites or connecting remotely to foreign locations. Internet businesses often have lower overhead, particularly if they don't have brick-and-mortar stores.

About the Author

Van Thompson is an attorney and writer. A former martial arts instructor, he holds bachelor's degrees in music and computer science from Westchester University, and a juris doctor from Georgia State University. He is the recipient of numerous writing awards, including a 2009 CALI Legal Writing Award.

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What Makes a Company a Multinational Corporation?

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The defining trait of a multinational corporation is being incorporated in one country, called the home country, but doing business in several countries. These operations typically require a large staff of workers as well as contracts with service providers such as suppliers and accountants.

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Corporations that expand
overseas must learn to adapt to their global environment.

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An important aspect of planning is decision making - that is, choosing the right alternatives for the future course of action.

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Just as each systematic knowledge is based on some important principles, similarly management and managerial functions are also depends upon some principles of planning.

So, management specialists have propagated some principles of planning, Whom may make planning very effective, on being adopted.

Principles of Planning

Following are the principles of planning:

1. Principle of Contribution to Objectives

We know that each institution or enterprise has some predetermined objectives and goals.

According to this principle, every plan and sub-plan should make positive contributions towards achieving the objectives and goals of the institution.

Know More: 12 Importance of Planning in Business (Explained).

2. Principle of Planning Promises

The principle of planning explains that the planning is related to the future and for the future, there are several assumptions.

Hence, while formulating plans, complete, clear and reliable knowledge should be collected and forecasts should be well prepared.

3. Principle of Efficiency

The efficiency of planning depends on the results. This principle tells that the maximum results should be obtained from minimum cost and efforts.

If this does not become possible, or the goals are not efficiently achieved, it may be regarded as the inefficiency of planning. 13 Main Characteristics or Nature of Planning.

4. Principle of Primacy

This principle of planning tells that the targets and the goals are first activity. without planning, neither other functions of Management get proper direction, nor their efficient and effective performance becomes possible.

Hence, planning is that important and primary function of management, on which attention should be paid, on priority.

5. Principle of Flexibility

According to these principles of planning, plans should be flexible. Flexibility means to change according to need.

Flexible plans may be revised, in accordance with the changed requirements and the losses may be averted or minimized.

So, planning should be such which may be changed and revised, according to the circumstances. This principle is used for long-term plannings.

Managerial Economics: Definition, Nature, and Scope (UPDATED)

6. Principle of Navigational Change

This principle of planning puts emphasis on the fact that just as a sailor is attentive towards taking his boat to the destination, by paying regular attention to the speed, direction and balance of the boat, each moment, similarly the managers should go on testing the plants, during course of their implementations and required changes and improvement should be a continuous process.

7. Principle of Commitment

This principle determines the 'Time period' of planning.

According to this principle the planning, the planning should necessarily be at least we for that period, which is required for fulfilling commitments made with its employees, suppliers, debtors, and the consumers, etc.

8. Principle of Pervasiveness

This principle explains the fact that planning is a pervasive activity, which is required at all levels of Management.

Hence, planning should be in accordance with the needs of all levels of Management.

9. Principle of Framework

Policies mean those general principles which govern the functions of the organization for the achievement of its objectives.

This principle of policy determination specifies that the policies of the institution should be unambiguous, simple, sound and justified, to make its planning effective.

Besides, components of planning should also be kept in view.

Get More: Capitalism: Definition, Features, Pros, Cons, Examples.

10. Principle of Timing

This principle of planning Lays emphasis on the point that while determining the objectives for the institution, the time limit for achieving various objectives may also be well determined.

Plans, sub plans, and programmes should also to be prepared for achieving the objectives. Their time limits should also be essentially determined.

11. Principle of Alternative

The success of planning depends upon the correct decision taken.

Hence, before asking decisions, various alternatives should be discovered and necessary information should be gathered about them, and then the best alternative should be selected.

According to this principle, the best, which may contribute towards achieving the determined objectives in decided time, at the lowest cost, be selected.

12. Principle of Limiting Factor

This principle stated that managers should identify the factors having only limited achievements of the desired goals while selecting the best alternatives and suitable solution of critical and objectionable factors should be found.

Know More: Elon Musk's Top 12 Tips for Every Entrepreneur & Student (@elonmusk).

13. Principle of Competitive Strategies

If any competitive institution exists, then the planning activities and techniques of other Institutions should also be kept in view.

By doing so, success in business, among the competition, may be ensured.

14. Principle of Cooperation

This principal emphasis that the success of planning depends upon the cooperation of the whole Organisation.

Hence, in Planning formulation, sufficient cooperation of the executives, managers, and subordinates of various level should be obtained, so that plans may be executed efficiently and unnecessary hurdles may be removed to get desired results.

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14 Principles of Planning - Explained with Examples | Googlesir

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Just as each systematic knowledge is based on some important principles, similarly management and managerial functions are also depends upon some principles of planning. So, management specialists have propagated some principles of planning, Whom may make planning very effective, on being adopted.

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Decision making is a key skill in the workplace, and is particularly important if you want to be an effective leader.
What key skills is your company missing?

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Effective Decision Making | SkillsYouNeed

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Learn about decision-making, and some ideas about how to do it. In particular, learn why it can be difficult and how to overcome these problems.

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Whether you're deciding which person to hire, which supplier to use, or which strategy to pursue, the ability to make a good decision with available information is vital.
Do you plan and are you strategic?

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The Basics of Strategic Planning, Strategic Management and Strategy Execution

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Strategic Planning, Strategic Management, and Strategy Execution basics

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A strong corporation has a human resources team that is organized. They play a major role in an organization help keep the workforce strong.

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The concept of on boarding is one used in the context of business and human resources that refers to the process of orienting new employees in a manner that aids in overall retention. On boarding process creates the communication lines to a successful team.

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Training and development  teams play an important role in their company's human resources department. They plan and administer programs to ensure that employees have the skills and knowledge to compete effectively and meet the organization's business objectives.
Does your Human resources provide great tools to management to help develop great employees?

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It’s easy to underestimate the power of a pat on the back. To help motivate your organization reach their full potential reward and give incentives. An employees' motivation is influenced by his or her manager. Validation can create success!

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Hiring the right employee for the job can be challenge. Culture can be used in many definitions, but your instincts will never stray you.
What is the culture like in your workplace?

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People in many workplaces talk about organizational culture, that mysterious term that characterizes the qualities of a work environment. When employers interview a prospective employee, they often consider whether the candidate is a good cultural fit. Culture is difficult to define, but you generally know when you have found an employee who appears to fit your culture. He just feels right.

Culture is the environment that surrounds you at work all of the time. It is a powerful element that shapes your work enjoyment, your work relationships, and your work processes. However, culture is not something that you can see, except through its physical manifestations in your workplace.

In many ways, culture is like personality. In a person, the personality is made up of the values, beliefs, underlying assumptions, interests, experiences, upbringing, and habits that create a person's behavior.

Culture is made up of such traits shared by a group of people. Culture is the behavior that results when a group arrives at a set of generally unspoken and unwritten rules for working together.

An organization's culture is made up of all of the life experiences each employee brings to the organization. Culture is especially influenced by the organization's founder, executives, and other managerial staff because of their roles in decision making and strategic direction. Still, every employee has an impact on the culture that is developed at work.

Culture can be represented in a group's language, decision making, symbols, stories and legends, and daily work practices.

Something as simple as the objects chosen to grace a desk tells you a lot about how employees view and participate in your organization's culture. Your internet sharing in programs like Skype and Slack, your bulletin board content, the company newsletter, the interaction of employees in meetings, and the way in which people collaborate, speak volumes about your organizational culture.

Central Concepts

Professors Ken Thompson (DePaul University) and Fred Luthans (University of Nebraska) highlight seven characteristics of culture through an interpretive lens.

1. Culture = behavior. Culture describes the behaviors that represent the general operating norms in your environment. Culture is not usually defined as good or bad, although aspects of your culture likely support your progress and success and other aspects impede your progress.
A norm of accountability will help make your organization successful. A norm of spectacular customer service will sell your products and engage your employees. Tolerating poor performance or exhibiting a lack of discipline to maintain established processes and systems will impede your success.

2. Culture is learned. People learn to perform certain behaviors through either the rewards or negative consequences that follow their behavior. When a behavior is rewarded, it is repeated and the association eventually becomes part of the culture. A simple thank you from an executive for work performed in a particular manner molds the culture.

3. Culture is learned through interaction. Employees learn culture by interacting with other employees. Most behaviors and rewards in organizations involve other employees. An applicant experiences a sense of your culture and his or her fit within your culture during the interview process. An initial opinion of your culture can be formed as early as the first phone call from the human resources department. The culture that a new employee experiences and learns can be consciously shaped by managers, executives, and co-workers. Through your conversations with a new employee, you can communicate the elements of the culture you'd like to see continued. If this interaction doesn't take place, the new employee forms his or her own idea of the culture, often in interaction with other new employees. This fails to serve the continuity a consciously created culture requires.

4. Sub-cultures form through rewards. Employees have many different wants and needs. Sometimes employees value rewards that are not associated with the behaviors desired by managers for the overall company. This often is how subcultures are formed, as people get social rewards from coworkers or have their most important needs met in their departments or project teams.

5. People shape the culture. Personalities and experiences of employees create the culture of an organization. For example, if most of the people in an organization are very outgoing, the culture is likely to be open and sociable. If many artifacts depicting a company's history and values are evident throughout the company, people value their history and culture. If doors are open, and few closed-door meetings are held, the culture is unguarded. If negativity about supervision and the company is widespread and complained about by employees, a culture of negativity, that is difficult to overcome, will take hold.

6. Culture is Negotiated. One person cannot create a culture alone. Employees must try to change the direction, the work environment, the way work is performed within the general norms of the workplace. Culture change is a process of giving and taking by all members of an organization. Formalizing strategic direction, systems development, and establishing measurements must be owned by the group responsible for them. Otherwise, employees will not own them.

7. Culture is difficult to change. Culture change requires people to change their behaviors. It often is difficult for people to unlearn their old ways of doing things and to start performing the new behaviors consistently. Persistence, discipline, employee involvement, kindness and understanding, organization development work, and training can assist you to change a culture.

Your work culture often is interpreted differently by diverse employees. Other events in people's lives affect how they act and interact at work too. Although an organization has a common culture, each person may see that culture from a different perspective. Additionally, your employees' individual work experiences, departments, and teams may view the culture differently.

You can mitigate the natural tendency of employees to optimize the components of the culture that serve their needs by teaching the culture you desire. Frequent reinforcement of the desired culture communicates the aspects of your work environment you most want to see repeated and rewarded. If you practice this reinforcement regularly, employees can more easily support the culture you wish to reinforce.

Strength or Weakness

Your culture may be strong or weak. When your work culture is strong, most people in the group agree on the culture. When your work culture is weak, people do not agree on the culture. Sometimes a weak organizational culture is the result of many subcultures or the shared values, assumptions, and behaviors of a subset of the organization.

For example, the culture of your company as a whole might be weak and very difficult to characterize because there are so many subcultures. Each department, work cell, or team may have its own culture. Within departments, the staff and managers may each have their own culture.

Positivity and Production

Ideally, organizational culture supports a positive and productive environment. Happy employees are not necessarily productive employees, and productive employees are not necessarily happy employees. It is important to find aspects of the culture that will support each of these qualities for your employees.

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What Is Culture? The Environment You Provide for People at Work

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People in many workplaces talk about organizational culture, that mysterious term that characterizes the qualities of a work environment. When employers interview a prospective employee, they often consider whether the candidate is a good cultural fit. Culture is difficult to define, but you generally know when you have found an employee who appears to fit your culture.

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The most important thing you can do as a leader is build an accountable organization. Why? This ensures that everyone understands what results the organization is wanting to achieve.
Can you achieve as a leader?

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Don't you love that employee who goes above and beyond? She takes responsibility, shows initiative and really owns her projects, processes and problems.

Somewhere along the line, she learned that good things happen when you are accountable. But it's largely up to you, her boss, to be sure she doesn't have a change of heart.

But, you say, accountability is intrinsic! You can't force people to be accountable! True, but we learn from the people around us. When the work environment is designed for accountability, it will flourish. When it's not, you'll get stellar work from a few people - until they stop making the effort or leave for another job.

An accountable workplace won't appear overnight, but the right elements must be in place. Where do you need to invest your time and attention to build an environment of accountability?

1. Clear roles, team leadership and individual ownership. People struggle to be accountable when roles and processes are ambiguous. Removing as much confusion as possible about who is doing what and how they will proceed is an important step. If a team is truly accountable, members will identify gaps, learn new roles and processes, and ultimately build a more capable team.

2. A sense of ownership for team results. How does team accountability work? Focus on team processes. How is the team working toward goals and outcome? Are team members effective? Do they feel 100 percent accountable to improving the process? Each member should have the obligation to seek information, give and receive feedback and point out the need for corrective action at any time.

3. Freedom, support and control to navigate competing priorities. Most problems have multiple right answers, so give people the freedom and control they need to make decisions. The first solutions your teams and direct reports come up with will probably be pretty good. Improve upon them instead of inserting your own. Support is the key - be sure people have the resources, knowledge and assistance they need. With this approach, team members increase their skills, confidence and ownership.

4. It's not about punishment. If your goal in fostering accountability is to know who to punish when revenue targets are not met or budgets are missed, you will only succeed in creating fear. No one will be willing to step up, speak out or try something new. Innovation and risk taking will be lost. Once the rumor mill of an organization circulates a story of someone stepping out and being punished, hundreds, even thousands, of other employees will be skittish about taking initiative to find solutions.

5. It's about improvement. Accountability is the foundation for creating a learning organization. If you want sustainable high-quality processes, you need to be able to see what's working and what isn't - and analyze the cause. To that end, each person needs to honestly say what they knew, what they thought and what they did (or didn't do). One important thing you can do to support a learning atmosphere is to take a systems approach as well as holding individuals accountable. Seek to understand what aspects of the situation have influenced the process, system, culture or circumstances.

6. The expectation of evaluation. In accountable organizations, no one expects to "stay under the radar." In fact, people seek feedback because they know it is intended to improve the process and add to their knowledge. These organizations use multiple forms of feedback and evaluation to assess the health and success of a manager, process or department. Organizations lacking multiple feedback mechanisms only discover shortcomings when it is too late.

7. Integrity counts. People are called out if they don't do what they say they will do. When anyone falls short, they admit it and work to improve. Someone consistently falling short? A sure sign of low commitment and a clue that something is missing in your culture of accountability.
Next week: The accountable leader. Besides creating the right environment for accountability, leaders need to build trust and minimize fear. Henry Browning is a senior faculty member at the Center for Creative Leadership, a top-ranked, global provider of leadership education and research, and author of Accountability: Taking Ownership of Your Responsibility.

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7 Ways to Build Accountable Organizations

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By Henry Browning Don't you love that employee who goes above and beyond? She takes responsibility, shows initiative and really owns her projects, processes and problems. Somewhere along the line, she learned that good things happen when you are accountable. But it's largely up to you, her boss, to be sure she [...]

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Organizations often try to solve these problems by redefining responsibilities—reorganizing what people do and restructuring the way work is done—only to find that changing where people sit in the organization won’t necessarily change how they think and perform.  Making the employee take personal accountability develops responsibility, commitment, ownership, trust, empathy and value. Are you lacking personal accountability?

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Organizations often try to solve these problems by redefining responsibilities -reorganizing what people do and restructuring the way work is done-only to find that changing where people sit in the organization won't necessarily change how they think and perform. What they are lacking is personal accountability-involving a choice to move closer to the success that you or your organization wants. When you step up to greater personal accountability, employees stop blaming each other, salespeople stop blaming the marketplace, companies stop blaming their competitors, and we all stop blaming the economy-you get the picture. Finding convenient reasons to shift responsibility or blame is never effective and never brings better results.

Accountability: The Secret Sauce of Responsibility

Clearly defining responsibility is certainly essential, but encouraging people to go a step further to get personally involved will secure better results every time. That's where taking accountability comes into play. The notion of "taking accountability" naturally sounds more significant than "having responsibility"-you're making the choice to go beyond what you're responsible for, carrying with it an idea of ownership, involvement, and engagement. Earlier we looked at how a responsible team or organization might function. Now, let's look at an accountable team or organization. In a workplace culture where this positive and empowering version of accountability is embraced, you'll find that:

People at all levels take ownership for the strategic results of the organization.

Balls do not get dropped and projects do not slip through the cracks.

People think differently about the job that needs to get done.

People break-down barriers and collaborate to achieve the right results.

Why? Because accountability is a broader concept than responsibility-it's something you do to yourself, not something that someone does to you. It's with this version of accountability that people not only take accountability for the results they need to achieve individually but for results that they are not 100% in control of. Organizations embracing positive accountability have a culture of people that hold themselves accountable for the ultimate results of the organization.

Getting Positive Accountability

It's not hard to see that the prevailing notions of accountability need to be fixed-we need something more positively defined as "a personal choice to rise above one's circumstances and demonstrate the ownership necessary for achieving desired results." When you shift mindsets and thought processes this way, you'll begin to see and feel traction in yourself and in others. Over nearly three decades of working with some of the world's top organizations and leaders, we've observed 16 Accountability Traits that are the essence of "taking accountability." Accountable individuals, teams, and organizations are good at:

1. Obtaining the perspective of others

2. Communicating openly and candidly

3. Asking for and offering feedback

4. Hearing and saying the hard things to see reality

5. Being personally invested

6. Learning from both successes and failures

7. Ensuring my work is aligned with Key Results

8. Acting on the feedback I (we) receive

9. Constantly asking "What else can I (we) do?"

10. Collaborating across functional boundaries

11. Creatively dealing with obstacles

12. Taking the necessary risks

13. Doing the things I (we) say I (we) will do

14. Staying "Above The Line®" by not blaming others

15. Tracking progress with proactive and transparent reporting

16. Building an environment of trust

These traits have proven, over time, as being the mandatory actions that create the process of taking positive accountability. Adopt the right mindset and step up to these traits and you'll quickly realize that accountability is not assigned, not put upon, not, at times, so exactly defined that it creates silos, finger pointing, and the blame game. It is chosen.

Making the Choice

Working on getting good at the 16 Accountability Traits is just that-work. Where do you begin?

1. Look them over and be honest with yourself on the ones you need to improve.

2. Think about what you can do better and where you can help others.

3. Then, do them!

In time, taking accountability for demonstrating improvement in these 16 areas is going to enhance your life, both personally and professionally. When individuals, teams, and organizations choose greater accountability, you'll see and get more. More ownership. More performance. More innovation. More heart. And better results. In summary, responsibility can be given or received, even assumed, but that doesn't automatically guarantee that personal accountability will be taken. Accountability is a choice. If that choice isn't made, it's possible to have responsibility for something or someone but still lack accountability. So, responsibly choose accountability. As you do, you're sure to discover just what accountability can do for you and those around you.

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Responsibility vs. Accountability - Partners In Leadership

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When a result isn't achieved, that's when most of us start hearing words like "responsibility" and "accountability." While responsibility is appreciated and often used correctly, accountability continues to be misperceived and gets a bad rap-we're here to tell you why it shouldn't.

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Employees have a moral responsibility to look out for their welfare. As well the employer have a moral responsibility to make them aware of their ethical responsibility.
Establish good ethics!

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- Ethical principles apply to all aspects of the employer-employee relationship.

The employer-employee relationship should not be looked at simply in economic terms. It is a

significant human relationship of mutual dependency that has great impact on the people involved. A person's job, like a person's business, are highly valued possessions that pervasively affect the lives of the employees and their families. With stakeholders everywhere, the relationship is laden with moral responsibilities. Though the pressures of self-interest are very powerful and compelling, both workers and bosses should guide their choices by basic ethical principles including honest, candor, respect and caring.

Employers have a moral obligation to look out for the welfare of employees. It is not a question only of fair pay and good working conditions, there should be a real and enduring concern for the well-being of employees. While the welfare of the company and other co-workers must remain the dominant consideration an ethical employer is willing to make decisions and implement policies in a manner that demonstrates a genuine concern, even when there are associated costs which impact profitability. Companies should be loyal to workers as well as shareholders/owners/themselves.

A particularly difficult context that tests an employers morality concerns the termination of single employees or large groups.

Layoffs, plant closings, and other dramatic events of this nature have dramatic psychological and financial impact on the entire workforce and on the reputation of the company. Thus, they should be handled with extraordinary caring and sensitivity in terms of how and when the announcement is made and implemented and what provisions are being made to assist employees who are losing their jobs. The use of new euphemisms such as "down-sizing" or "right-sizing" may make managers feel better about the decision to terminate jobs, but it does not change anything from a moral perspective.

As already discussed, employees are entitled to be treated fairly and with respect, and it is the company's obligation to see that individual managers do not abuse their power or mistreat their subordinates. Kill-the-messenger behavior at any management level is improper, as is any active or passive encouragement of dishonest reporting. Employees should feel free to raise ethical or other issues without fear of retaliation. Employees are entitled to count on the commitments of the employer especially about central matters such as pay, raises, and promotions. Employers who chisel employees, renege on promises, or treat them as if they were simply instrumentalities of the organization's interests rather than ends in and of themselves fail to meet their moral responsibilities.

Employees have obligations as well. Employees also have moral obligations, and they go beyond giving a full day's work for a full day's pay. Loyalty goes both ways. Employees have moral duties to the organization, co-workers, and customers. If an employer were secretly to look for a replacement for an employee by conducting interviews behind the employee's back, most employees would consider that an act of betrayal. "Why didn't you tell me my job was at risk?" "Why didn't you tell me that you were unhappy with my work so I had a chance to improve?" Does the employee owe the employer less? When an employee, without any notice to an employer secretly looks for a new job, often covering up interviewing time with deceptions or lies, is the conduct any less untrustworthy?

When an employer decides to let an employee go, it is generally thought that the employer should give the employee ample notice or severance pay. But what of the ethics of the employee who walks into the boss' office and says, "I have an opportunity I can't turn down and they need me to start this Friday"? Because of the disparity in power, many employees adopt a double standard that gives them more leeway than they afford the employer. One aspect of this attitude draws on the doubtful assertions of necessity. Another is the implicit belief that if an offer is too good to refuse, there is no moral obligation to refuse. It doesn't take much scrutiny to see that these are self-serving rationalizations. The moral obligations of an employee include loyalty, candor, caring and respect. The mismatch in economic strength between the employer and the employee does not change that.

People of character take into account their moral obligations to their employer before they interview for another job. If they know that their departure will jeopardize the organization, co-workers, or customers they should make it clear at the job interview that they are not available until they have provided a reasonable transition. If we are not certain how much hardship departure may cause, the principle of respect suggests that the parties most affected be given an opportunity to participate in a discussion to suggest the least harmful alternative. Because the employee-employer relationship operates in the context of business, there is a tendency to play by different rules dictated by who has the leverage, and principles of expediency - what you can get away with - rather than moral principle.

- Michael Josephson
revised December 17, 2016

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Ethical Responsibilities in the Employer-Employee Relationship - Applying Ethical Principles - Exemplary Business Ethics & Leadership

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Ethical principles apply to all aspects of the employer-employee relationship. The employer-employee relationship should not be looked at simply in economic terms. It is a significant human relationship of mutual dependency that has great impact on the people involved. A person's job, like a person's business, are highly valued possessions that pervasively affect the lives of the employees and ...

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Expecting resistant to change and plan for change shows leadership and management skills. Being open to change shows strategy and a plan.

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Difference between management and leaders

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Difference between management and leaders

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Leaders have their people follow them and managers have people work for them. When I become a manager I will lead by example. Abusing your power only creates a hostile work environment.

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Leadership represents stock worth investing in. Leadership implements diversity.

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Leadership is not a one man show it takes an organization to make the best decision for the company and its workforce. Someone making decisions alone has consequences that affect the company and economy.

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The meaning of controlling function is to ensure that the manager can control their employees. In other words, get them to do what they are supposed to do.

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One of the most essential qualities required in a manager is that he should command the respect of his team. This allows him to direct and control their actions. In fact controlling is one of his more important functions. Let us learn the importance and meaning of controlling function.

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Meaning of Controlling

Controlling is one of the important functions of a manager. In order to seek planned results from the subordinates, a manager needs to exercise effective control over the activities of the subordinates. In other words, the meaning of controlling function can be defined as ensuring that activities in an organization are performed as per the plans. Controlling also ensures that an organization's resources are being used effectively & efficiently for the achievement of predetermined goals.

Controlling is a goal-oriented function.

It is a primary function of every manager.

Controlling function of a manager is a pervasive function.

(Source: mastertutorials)

How Controlling Function Helps Managers

Managers at all level of management Top, Middle & Lower - need to perform controlling function to keep a control over activities in their areas. Therefore, controlling is very much important in an educational institution, military, hospital, & a club as in any business organization.

Therefore, controlling function should not be misunderstood as the last function of management. It is a function that brings back the management cycle back to the planning function. Thus, the controlling function act as a tool which helps in finding out that how actual performance deviates from standards and also finds the cause of deviations & attempts which are necessary to take corrective actions based upon the same.

This process helps in the formulation of future plans in the light of the problems that were identified &, thus, helps in better planning in the future periods. So from the meaning of controlling we understand it not only completes management process but also improves planning in the next cycle.

Importance of Controlling

After meaning of controlling, let us see its importance. Control is an indispensable function of management without which the controlling function in an organization cannot be accomplished and the best of plans which can be executed can go away. A good control system helps an organization in the following ways:

1. Accomplishing Organizational Goals

The controlling function is an accomplishment of measures which further makes progress towards the organizational goals & brings to light the deviations, & indicates corrective action. Therefore it helps in guiding the organizational goals which can be achieved by performing controlling function.

2. Judging Accuracy of Standards

A good control system enables management to verify whether the standards set are accurate & objective. The efficient control system also helps in keeping careful and progress check on the changes which helps in taking the major place in the organization & in the environment and also helps to review & revise the standards in light of such changes.

3. Making Efficient use of Resources

Another important function of controlling is that in this, each activity is performed in such manner so an in accordance with predetermined standards & norms so as to ensure that the resources are used in the most effective & efficient manner for the further availability of resources.

4. Improving Employee Motivation

Another important function is that controlling help in accommodating a good control system which ensures that each employee knows well in advance what they expect & what are the standards of performance on the basis of which they will be appraised. Therefore it helps in motivating and increasing their potential so to make them & helps them to give better performance.

5. Ensuring Order & Discipline

Controlling creates an atmosphere of order & discipline in the organization which helps to minimize dishonest behavior on the part of the employees. It keeps a close check on the activities of employees and the company can be able to track and find out the dishonest employees by using computer monitoring as a part of their control system.

6. Facilitating Coordination in Action

The last important function of controlling is that each department & employee is governed by such pre-determined standards and goals which are well versed and coordinated with one another. This ensures that overall organizational objectives are accomplished in an overall manner.

Solved Questions for You

Q1: What do you mean by control?

Ans: Control, or Controlling, is one of the managerial functions just like planning, organizing, staffing and directing. It is an important function because:

it helps to check the errors,

helps in taking the correct actions so that there is a minimum deviation from standards and,

in achieving the stated goals of the organization in the desired manner. According to modern concepts, control is a foreseeing action. Whereas the earlier concept of control was used only when errors were detected.

Q2: How controlling helps in the accomplishment of goals?

Ans. Controlling can be defined as that function of management which helps to seek planned results from the subordinates, managers and at all levels of an organization. The controlling function helps in measuring the progress towards the organizational goals & brings any deviations, & indicates corrective action. Thus, an overall sense, the controlling function helps and guides the organizational goals for achieving long-term goals in future.

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Meaning of Controlling: Controlling Function and Its Importance, Examples

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One of the most essential qualities required in a manager is that he should command the respect of his team. This allows him to direct and control their actions. In fact controlling is one of his more important functions. Let us learn the importance and meaning of controlling function.

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Good leaders ask questions. Timing is everything, never make drastic decisions give yourself time to think about it before making a decision.

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Managerial Decision Making Process - How to Make Good Decisions

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The four-step process of control helps you to ensure that appropriate goals are set, evaluated and modified when there is a discrepancy.

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The Four-Step Process

As manager for an up-and-coming fast-food chain, Burger X, you have worked hard with your company's strategic planning team to set goals and develop business standards. To make sure these standards are upheld, your company uses a control system, which monitors and evaluates the progress toward your goals. The four-step process of control helps you to ensure that appropriate goals are set, evaluated and modified when there is a discrepancy.

Although the managers have already completed the first step, establishing performance standards, you decide to discuss all four steps with your team to help them see the bigger picture. You believe that the control process helps to set clear goals and expectations for the company and its employees.

The four steps are:

1. Establishing Performance Standards

2. Measuring the Actual Performance

3. Comparing Actual Performance to the Standards

4. Taking Corrective Action

You tell your team that having knowledge of the whole process will help them to understand your expectations as their leader.

Establish Performance Standards

You first explain that performance standards are generally created by the management team. Performance standards are the goals or expectations for how the company should operate. The standards can be physically measurable, or they can be personality or human-based standards.

Physical Standards

Typically, physical standards are more definite. They can be easily measured and proven with numbers and data. Because Burger X is a fast-food business, the physical standards might include:

Of course, the physical standards will vary depending on the type of company you work for, but in general, they should be specific standards that you can easily measure and track progress for.

Personality or Human Standards

You ask your team to describe what they think personality standards are. Mary, a team leader, asks if that is related to customer service.

You explain that, to some extent, the personality standards are related to customer service. These standards also include less measurable things such as behaviors, morals, and work ethic.

You emphasize the importance of having team spirit and treating staff and customers with the utmost of respect. Thus, these standards are important to customer service, but they are also important to the happiness of staff.

Measure the Actual Performance

Now, all of that was just setting the standards. Once you know what your standards are, you have to measure how you are doing; measuring means obtaining quantitative amounts.

Imagine that we have a company standard that food-ticket times should never go above ten minutes. At the end of each day, we can pull the average ticket time reports and determine how well we are doing.

We may also want to measure labor cost or food waste. Regardless, each measure will give us an idea of how the company is performing.

Compare Actual Performance to the Standard

You have looked at the actual performance and now you want to compare the performance to the standard by determining whether the measure is reaching your goal.

Back to the ticket time example. If we find that all ticket times are within the ten-minute limit, then we are good to go. Things are operating as they should be.

On the other hand, if we find that 20 percent of tickets are taking more than 10 minutes, then there may be a problem. The same idea can be applied to labor hours or sales. If you are allowed and scheduling 400 labor hours per week, but are consistently spending 450 labor hours, there may be a problem. If you are anticipating $10,000 a day in sales but only making $8,000 a day, you may need to see why your sales have reduced.

What is Causing the Problem?

Now that you have identified that there is a discrepancy between the measured performance and the standards, you will want to know why.

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control system: the four-step process - video & lesson transcript | study.com

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Control System: The Four-Step Process - Video & Lesson Transcript | Study.com

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As manager for an up-and-coming fast-food chain, Burger X, you have worked hard with your company's strategic planning team to set goals and develop business standards. To make sure these standards are upheld, your company uses a control system, which monitors and evaluates the progress toward your goals.

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Planning helps a business identify its goals. Preparing for the future allows business leaders to consider the impact they would like the company to have and to find a way to get there.
Do you have goals?