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This module was all about org standards and why controls are important in an organization. I learned that organizational standards and objectives are important elements in any business plan because they guide decision-making. To create reachable objectives, an organization needs to understand where it is, and where it wants to go.

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Organizational control involves using strategy, tactics, and operational oversight to monitor and improve company processes. I learned the different types of control and why they are important to a company.

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What you'll learn to do: describe the different levels and types of control

In management, there are varying levels of control: strategic (highest level), operational (mid-level), and tactical (low level). Imagine the president of a company decides to build a new company headquarters. He enlists the help of the company's officers to decide on the location, style of architecture, size, etc. (strategic control). The project manager helps develop the project schedule and budget (operational control). The general contractor directs workers, orders materials and equipment for delivery, and establishes rules to ensure site safety (tactical control).

Control can be objective or normative. Objective control involves elements of the company that can be objectively measured, such as call volume, profitability, and inventory efficiency. Normative control means employees learn the values and beliefs of a company and know what's right from observing other employees.

Learning Outcomes

Differentiate between strategic, operational, and tactical controls.

Differentiate between top-down, objective, and normative control.

Strategic Control

Managers want to know if the company is headed in the right direction and if current company trends and changes are keeping them on that right path. To answer this question requires the implementation of strategic control. Strategic control involves monitoring a strategy as it is being implemented, evaluating deviations, and making necessary adjustments.

Strategic control may involve the reassessment of a strategy due to an immediate, unforeseen event. For example, if a company's main product is becoming obsolete, the company must immediately reassess its strategy.

Implementing a strategy often involves a series of activities that occur over a period. Managers can effectively monitor the progress of a strategy at various milestones, or intervals, during the period. During this time, managers may be provided information that helps them determine whether the overall strategy is unfolding as planned.

Strategic control also involves monitoring internal and external events. Multiple sources of information are needed to monitor events. These sources include conversations with customers, articles in trade magazines and journals, activity at trade conferences, and observations of your own or another company's operations. For example, Toyota gives tours of its plants and shares the "Toyota Way" even with competitors.

The errors associated with strategic control are usually major, such as failing to anticipate customers' reaction to a competitor's new product. BlackBerry had a strong position in the business cell phone market and did not quickly see that its business customers were switching to the iPhone. BlackBerry could not recover.

Operational Control

Operational control involves control over intermediate-term operations and processes but not business strategies. Operational control systems ensure that activities are consistent with established plans. Mid-level management uses operational controls for intermediate-term decisions, typically over one to two years. When performance does not meet standards, managers enforce corrective actions, which may include training, discipline, motivation, or termination.

Unlike strategic control, operational control focuses more on internal sources of information and affects smaller units or aspects of the organization, such as production levels or the choice of equipment. Errors in operational control might mean failing to complete projects on time. For example, if salespeople are not trained on time, sales revenue may fall.

Tactical Control

A tactic is a method that meets a specific objective of an overall plan. Tactical control emphasizes the current operations of an organization. Managers determine what the various parts of the organization must do for the organization to be successful in the near future (one year or less).

For example, a marketing strategy for a wholesale bakery might be an e-commerce solution for targeted customers, such as restaurants. Tactical control may involve regularly meeting with the marketing team to review results and would involve creating the steps needed to complete agreed-upon processes. Tactics for the bakery strategy may include the following:

building a list of local restaurants, hotels, and grocery stores

outlining how the bakery website can be used to receive orders

personally visiting local executive chefs for follow-up

monitoring the response to determine whether the sales target is met

Strategic control always comes first, followed by operations, and then tactics. For example, a strategy to be environmentally responsible could lead to an operations decision to seek Leadership in Energy and Environmental Design (LEED) certification. This is a program that awards points toward certification for initiatives in energy efficiency, such as installing timed thermostats, using occupant sensors to control lighting use, and using green cleaning products. The tactical decision is deciding which energy-efficient equipment to purchase. At each level, controls ask if the decisions serve the purpose: actual energy savings, the LEED certification, and acting responsibly for the environment.

Top-Down Controls

Top-down controls are also known as bureaucratic controls. Top-down control means the use of rules, regulations, and formal authority to guide performance. It includes things such as budgets, statistical reports, and performance appraisals to regulate behavior and results. Top-down control is the most common process, where senior executives make decisions and establish policies and procedures that implement the decisions. Lower-level managers may make recommendations for their departments, but they follow the lead of senior managers.

Advantages

With top-down control, employees can spend their time performing their job duties instead of discussing the direction of the company and offering input into the development of new policies. Senior executives save time by not explaining why some ideas are used and not others. Heavily regulated businesses may find this approach to be most beneficial.

Disadvantages

The top-down approach has its drawbacks. The lower levels of a company are in touch with customers and recognize new trends or new competition earlier than senior management. A heavy-handed top-down approach may discourage employees from sharing information or ideas up the chain of command.

Objective and Normative Control

Objective control is based on facts that can be measured and tested. Rather than create a rule that may be ambiguous, objective controls measure observable behavior or output. As an example of a behavioral control, let's say that a store wants employees to be friendly to customers. It could make that a rule as stated, but it may not be clear what that means and is not measurable. To make that goal into an objective control, it might specify, "Smile and greet anyone within 10 feet. Answer customer questions."

Output control is another form of objective control. Some companies, such as Yahoo, have relaxed rules about work hours and focus on output. Because programmers' output can be measured, this has worked well, whether an employee works the traditional 9 a.m. to 5 p.m. or starts at noon and works until 8 p.m.

Normative controls govern behavior through accepted patterns of action rather than written policies and procedures. Normative control uses values and beliefs called norms, which are established standards. For example, within a team, informal rules make team members aware of their responsibilities. The ways in which team members interact are developed over time. Team members come to an informal agreement as to how responsibilities will be divided, often based on the perceived strengths of each team member. These unwritten rules are normative controls and can powerfully influence behavior.

Normative control reflects the organization's culture, the shared values among the members of the organization. Every organization has norms of behavior that workers need to learn. One company may expect employees to take the initiative to solve problems. Another may require a manager's approval before employees discuss changes outside the department. Some topics may be off-base, while others are freely discussed. Companies will have a mix of controls-top-down, objective, and normative.

Check Your Understanding

Answer the question(s) below to see how well you understand the topics covered in the previous section. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times.

Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.

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In management, there are varying levels of control: strategic (highest level), operational (mid-level), and tactical (low level). Imagine the president of a company decides to build a new company headquarters. He enlists the help of the company's officers to decide on the location, style of architecture, size, etc. (strategic control).

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This module taught me that there are distinct differences between a manager and a leader. A leader is a coach who motivates followers towards a common goal. A manager is more dependent on authority to get others to follow.

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This module also taught me effective ways to motivate a team. And tools to use for motivation, such as incentive pay or reward programs.

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Motivation is not just a buzzword; it's key to an organisation's success. A motivated team has a hugely positive impact on productivity, retention and overall wellbeing. When employee motivation drops, your revenue and output are likely to follow. Despite its importance for business, however, only 21% of employees are reported to feel motivated and engaged at work.

Whereas in the past employee motivation was widely considered the responsibility of HR, it is now expected to be maintained by managers and is a key part of your role as a leader within your organisation. But how can you achieve this successfully?

In this article, we will expand on the importance of motivation in any organisation and explain the role that a manager plays in motivating their team. We will also provide actionable tips and advice for effectively motivating your employees.

What is the Importance of Motivation in an Organisation?

Employee motivation refers to the level of commitment, energy and innovation that a company's staff maintain at work. Prior to the COVID-19 pandemic, workplace motivation and engagement were rising globally, but progress has now stalled. In fact, Europe is now recorded to have the lowest percentage of engaged and motivated employees in the world - at just 14%. Therefore, those in a managerial or leadership role urgently need to work to increase employee motivation.

Employees that are not motivated have little enthusiasm for their role. They are more easily distracted by non-work-related activities, work at a slower pace, avoid tasks or are happy to let others take on more work. This potentially holds the wider organisation back from meeting targets and producing high-quality work. In these circumstances, workplace stress often rises due to tasks not being effectively distributed.

In contrast, maintaining a motivated and engaged workforce has a multitude of impressive benefits, including:
Increased Productivity
One of the main advantages of a motivated workforce is an increase in productivity, which in turn leads to better revenue outcomes. Highly motivated workforces have been found to achieve a 17% increase in productivity as they are far more likely to focus on their core tasks and complete these efficiently and effectively. This provides them with more time to work on their additional responsibilities or professional development.
Lower Levels of Absenteeism
Motivated team members are also less likely to have repeat absences from work as they're engaged with their role and therefore willing to commit time to completing their assigned workload. Workplaces with motivated and engaged employees are shown to reduce absenteeism by up to 41%.
Increased Staff Retention
As well as displaying lower levels of absenteeism from work, motivated employees are likely to stay with an organisation for longer - rather than searching for new opportunities. A motivated employee is far more likely to be satisfied with their role and therefore have less desire to look for something, or somewhere, better. Not only does a high turnover of staff cause disturbance within the business, it's also reported to cost employers 33% of an employee's annual salary due to hiring replacements, and is therefore something worth avoiding.
Great Company Culture
Employee motivation is an important factor in creating a strong company culture, as well as driving collaboration. When an employee feels a connection to the work they do and are committed to their role and the company, their enthusiasm and work ethic is likely to have a positive impact on other employees. The result of this is a stronger, more connected team, who communicate and collaborate to produce high-quality, innovative products and services.

Why are Managers Vital for Motivating Employees?

Managers play a crucial role in encouraging motivation within their team. In a recent study, it was found that a manager or team leader alone accounts for 70% of variance in team engagement and motivation.

Where a paycheck may once have been enough to keep staff engaged and motivated, employees are now increasingly reported to desire far more from their working life than just a means to pay the bills. In a recent study, when asked about motivating factors at work, the majority of employees cited a good work-life balance. Having no career progression was the highest factor in reducing motivation.

Therefore, employers shouldn't assume that their staff are simply thankful for having a job; employees want to learn, progress and be challenged. As a result, it is vital for managers to display strong coaching and mentoring skills to ensure their team finds purpose and meaning, as well as opportunities to develop in their area of work. If a manager fails to set a good example when it comes to positive attitudes and working methods, other employees will soon follow suit and the quality of work the team produces will suffer as a result.

There are a number of attributes that make a manager effective at motivating their team. These include:

Excellent communication skills.

Consistency and reliability.

Showing appreciation and encouragement.

Decisiveness.

Empathy.

Adaptability and flexibility.

Conflict resolution.

How to Motivate Your Team to Improve Performance

Having to keep your team motivated might feel like a big responsibility to uphold, but there's no need to worry. There are a number of things you can do as a manager to increase and maintain motivation within your team, and therefore improve overall performance.

10 Tips for Motivating Employees
Offer Recognition
Employees can naturally feel unappreciated and burnt out if they're not recognised or rewarded for their hard work. Giving frequent recognition where it's due will not only help employees to feel valued - it will encourage them to keep working hard so that they can continue to be rewarded for their efforts.
Set Ambitious but Achievable Targets
As previously mentioned,employees don't want to feel as though they're at a standstill in their career. It's important for them to feel challenged so that they can continually progress. Therefore, a good manager must be able to set ambitious, individualised targets.

On the other hand, however, it's important that these targets don't become unachievable. If an employee has to work extra hours to complete their workload and achieve targets, this will have a negative impact on their motivation. Have frequent conversations with individual team members to evaluate their targets. Ensure they agree with the level of challenge being provided.
Organise Team Building Activities
Strengthening your team is vital in maintaining motivation and morale. If employees feel as though they're connected to and valued within their team, they won't want to let them down. Instead, they'll have more motivation to play their part in achieving shared goals. Team building activities are an excellent way to increase trust and confidence within teams, as well as improving your overall company culture.
Create Development Opportunities
A good manager understands that every member of their team has career goals they want to work towards, and it's therefore important to upskill your staff and provide opportunities for them to enhance their skills. It's been found that only 29% of employees are 'very satisfied' with their available career advancement opportunities, and 41% marked those opportunities as 'very important' when it comes to motivation. As a result, ensure your team members have an up-to-date and actionable Personal Development Plan to help them progress towards their personal goals.

Encouraging your employees to take personal development courses that interest them can be highly beneficial in increasing motivation. Here are our top three recommendations:
Maintain Effective Communication
Doyour team members feel as though they can talk openly to you? It's important for a manager to be approachable. They should encourage employees to communicate any issues they have, so that they can receive the help and support they need. Listen actively to employees and keep them up to date with company matters. This will help them to feel valued and involved. Active listening will also help to dispel any anxieties which could negatively impact motivation levels.
Support Wellbeing
An employee's wellbeing is intrinsically linked to their motivation and ability to perform at work, and can be the make or break of your business's long-term success. Therefore, it's vital for managers to be aware of their employees' wellbeing. They should work to maintain and enhance positive wellbeing across the business. Consider creating a health and wellbeing programme within your workplace to help staff positively manage or overcome wellbeing challenges.
Reward Creativity
Allow your employees to voice their ideas and try to action their feedback. This will lift your employees to become innovators, rather than those who simply tick boxes. Employees will undoubtedly be more motivated and invested in working on something they inspired, and this motivation will carry through to their other work.
Review Salaries Frequently
Although it's been shown that money is not the main reason employees feel motivated at work, it does play a part and therefore can't be ignored. Your team will find it harder to stay motivated if they have any financial worries or are concerned they're not being paid fairly for what they do. Ensure you review individual salaries regularly in line with living expenses and the changing responsibilities of your team members. This will help to give your employees confidence when discussing fair pay and their value within the company.
Promote Work-Life Balance
With work-life balance reported to be the factor that motivates employees the most, it's vital to ensure your staff aren't struggling to juggle the two. Consider offering programs like flexible schedules, remote working and increased annual leave days. This will allow your team to be more efficient with their time and therefore do more of what matters to them.
Lead with Vision
Everyone wants to feel as though they're working towards a bigger goal and a cause that matters. Make sure your employees always understand what the company's goals are, its next steps and what success will look like. Knowing the destination plays an essential role in providing motivation for the journey.
Having a motivated team is vital to a company's overall success, and must therefore be actively maintained. As a manager, your actions have a big impact on your team's motivation levels, and it's your responsibility to ensure employees remain motivated. Implementing day-to-day strategies to increase employee motivation will have a vastly positive impact on your team's overall performance, as well as that of the wider company.
Further Resources:

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How to Motivate a Team | 10 Tips for Motivating Employees

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Motivation is not just a buzzword; it's key to an organisation's success. A motivated team has a hugely positive impact on productivity, retention and overall wellbeing. When employee motivation drops, your revenue and output are likely to follow. Despite its importance for business, however, only 21% of employees are reported to feel motivated and engaged at work.

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This module taught me that there are many functions of HR. In general HR is the department responsible for managing all matters related to employees, who collectively represent one of the most valuable resources in any businesses or organization.

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Learning Objectives

1. Explain the role of HRM in organizations.

2. Define and discuss some of the major HRM activities.

Every organization, large or small, uses a variety of to make the business work. Capital includes cash, valuables, or goods used to generate income for a business. For example, a retail store uses registers and inventory, while a consulting firm may have proprietary software or buildings. No matter the industry, all companies have one thing in common: they must have people to make their capital work for them. This will be our focus throughout the text: generation of revenue through the use of people's skills and abilities.

What Is HRM?

Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. As a field, HRM has undergone many changes over the last twenty years, giving it an even more important role in today's organizations. In the past, HRM meant processing payroll, sending birthday gifts to employees, arranging company outings, and making sure forms were filled out correctly-in other words, more of an administrative role rather than a strategic role crucial to the success of the organization. Jack Welch, former CEO of General Electric and management guru, sums up the new role of HRM: "Get out of the parties and birthdays and enrollment forms.... Remember, HR is important in good times, HR is defined in hard times" (Frasch, et. al., 2010).

It's necessary to point out here, at the very beginning of this text, that every manager has some role relating to human resource management. Just because we do not have the title of HR manager doesn't mean we won't perform all or at least some of the HRM tasks. For example, most managers deal with compensation, motivation, and retention of employees-making these aspects not only part of HRM but also part of management. As a result, this book is equally important to someone who wants to be an HR manager and to someone who will manage a business.

Human Resource Recall

Have you ever had to work with a human resource department at your job? What was the interaction like? What was the department's role in that specific organization?

The Role of HRM

Keep in mind that many functions of HRM are also tasks other department managers perform, which is what makes this information important, despite the career path taken. Most experts agree on seven main roles that HRM plays in organizations. These are described in the following sections.

Staffing

You need people to perform tasks and get work done in the organization. Even with the most sophisticated machines, humans are still needed. Because of this, one of the major tasks in HRM is staffing. involves the entire hiring process from posting a job to negotiating a salary package. Within the staffing function, there are four main steps:

1. Development of a staffing plan. This plan allows HRM to see how many people they should hire based on revenue expectations.

2. Development of policies to encourage multiculturalism at work. Multiculturalism in the workplace is becoming more and more important, as we have many more people from a variety of backgrounds in the workforce.

3. Recruitment. This involves finding people to fill the open positions.

4. Selection. In this stage, people will be interviewed and selected, and a proper compensation package will be negotiated. This step is followed by training, retention, and motivation.

Development of Workplace Policies

Every organization has policies to ensure fairness and continuity within the organization. One of the jobs of HRM is to develop the verbiage surrounding these policies. In the development of policies, HRM, management, and executives are involved in the process. For example, the HRM professional will likely recognize the need for a policy or a change of policy, seek opinions on the policy, write the policy, and then communicate that policy to employees. It is key to note here that HR departments do not and cannot work alone. Everything they do needs to involve all other departments in the organization. Some examples of workplace policies might be the following:

Discipline process policy

Vacation time policy

Dress code

Ethics policy

Internet usage policy

These topics are addressed further in Chapter 6 "Compensation and Benefits", Chapter 7 "Retention and Motivation", Chapter 8 "Training and Development", and Chapter 9 "Successful Employee Communication".

Compensation and Benefits Administration

HRM professionals need to determine that compensation is fair, meets industry standards, and is high enough to entice people to work for the organization. Compensation includes anything the employee receives for his or her work. In addition, HRM professionals need to make sure the pay is comparable to what other people performing similar jobs are being paid. This involves setting up pay systems that take into consideration the number of years with the organization, years of experience, education, and similar aspects. Examples of employee compensation include the following:

Pay

Health benefits

401(k) (retirement plans)

Stock purchase plans

Vacation time

Sick leave

Bonuses

Tuition reimbursement

Since this is not an exhaustive list, compensation is discussed further in Chapter 6 "Compensation and Benefits".

Retention

involves keeping and motivating employees to stay with the organization. Compensation is a major factor in employee retention, but there are other factors as well. Ninety percent of employees leave a company for the following reasons:

1. Issues around the job they are performing

2. Challenges with their manager

3. Poor fit with organizational culture

4. Poor workplace environment

Despite this, 90 percent of managers think employees leave as a result of pay (Rivenbark, 2010). As a result, managers often try to change their compensation packages to keep people from leaving, when compensation isn't the reason they are leaving at all. Chapter 7 "Retention and Motivation" and Chapter 11 "Employee Assessment" discuss some strategies to retain the best employees based on these four factors.

Training and Development

Once we have spent the time to hire new employees, we want to make sure they not only are trained to do the job but also continue to grow and develop new skills in their job. This results in higher productivity for the organization. Training is also a key component in employee motivation. Employees who feel they are developing their skills tend to be happier in their jobs, which results in increased employee retention. Examples of training programs might include the following:

Job skills training, such as how to run a particular computer program

Training on communication

Team-building activities

Policy and legal training, such as sexual harassment training and ethics training

We address each of these types of training and more in detail in Chapter 8 "Training and Development".

Dealing with Laws Affecting Employment

Human resource people must be aware of all the laws that affect the workplace. An HRM professional might work with some of these laws:

Discrimination laws

Health-care requirements

Compensation requirements such as the minimum wage

Worker safety laws

Labor laws

The legal environment of HRM is always changing, so HRM must always be aware of changes taking place and then communicate those changes to the entire management organization. Rather than presenting a chapter focused on HRM laws, we will address these laws in each relevant chapter.

Worker Protection

Safety is a major consideration in all organizations. Oftentimes new laws are created with the goal of setting federal or state standards to ensure worker safety. Unions and union contracts can also impact the requirements for worker safety in a workplace. It is up to the human resource manager to be aware of worker protection requirements and ensure the workplace is meeting both federal and union standards. Worker protection issues might include the following:

Chemical hazards

Heating and ventilation requirements

Use of "no fragrance" zones

Protection of private employee information

We take a closer look at these issues in Chapter 12 "Working with Labor Unions" and Chapter 13 "Safety and Health at Work".

Communication

Besides these major roles, good communication skills and excellent management skills are key to successful human resource management as well as general management. We discuss these issues in Chapter 9 "Successful Employee Communication".

Awareness of External Factors

In addition to managing internal factors, the HR manager needs to consider the outside forces at play that may affect the organization. Outside forces, or external factors , are those things the company has no direct control over; however, they may be things that could positively or negatively impact human resources. External factors might include the following:

1. Globalization and offshoring

2. Changes to employment law

3. Health-care costs

4. Employee expectations

5. Diversity of the workforce

6. Changing demographics of the workforce

7. A more highly educated workforce

8. Layoffs and downsizing

9. Technology used, such as HR databases

10. Increased use of social networking to distribute information to employees

For example, the recent trend in flexible work schedules (allowing employees to set their own schedules) and telecommuting (allowing employees to work from home or a remote location for a specified period of time, such as one day per week) are external factors that have affected HR. HRM has to be aware of these outside issues, so they can develop policies that meet not only the needs of the company but also the needs of the individuals. Another example is the Patient Protection and Affordable Care Act, signed into law in 2010. Compliance with this bill has huge implications for HR. For example, a company with more than fifty employees must provide health-care coverage or pay a penalty. Currently, it is estimated that 60 percent of employers offer health-care insurance to their employees (Cappelli, 2010). Because health-care insurance will be mandatory, cost concerns as well as using health benefits as a recruitment strategy are big external challenges. Any manager operating without considering outside forces will likely alienate employees, resulting in unmotivated, unhappy workers. Not understanding the external factors can also mean breaking the law, which has a concerning set of implications as well.

One way managers can be aware of the outside forces is to attend conferences and read various articles on the web. For example, the website of the Society for Human Resource Management, SHRM Online ¹, not only has job postings in the field but discusses many contemporary human resource issues that may help the manager make better decisions when it comes to people management. In Section 1.3 "Today's HRM Challenges", we go into more depth about some recent external issues that are affecting human resource management roles. In Section 1.1.2 "The Role of HRM", we discuss some of the skills needed to be successful in HRM.

¹Society for Human Resource Management, accessed August 18, 2011, http://www.shrm.org/Pages/default.aspx.

References

Cappelli, P., "HR Implications of Healthcare Reform," Human Resource Executive Online, March 29, 2010, accessed August 18, 2011, http://www.hreonline.com/HRE/story.jsp?storyId=379096509.

Frasch, K. B., David Shadovitz, and Jared Shelly, "There's No Whining in HR," Human Resource Executive Online, June 30, 2009, accessed September 24, 2010, http://www.hreonline.com/HRE/story.jsp?storyId=227738167.

Rivenbark, L., "The 7 Hidden Reasons Why Employees Leave," HR Magazine, May 2005, accessed October 10, 2010, http://findarticles.com/p/articles/mi_m3495/is_5_50/ai_n13721406.

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Explain the role of HRM in organizations. Define and discuss some of the major HRM activities. Every organization, large or small, uses a variety of to make the business work. Capital includes cash, valuables, or goods used to generate income for a business.

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I learned that in order to be an effective communicator not only must you be able to speak clear and concise, but you must also be an active listener. Receiving verbal and non-verbal cues from your audience is important to relaying your message.

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This module taught me the common elements of an organization. Which are 4 key elements: common purpose, coordinated effort, division of labor, and hierarchy of authority.

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I learned that a lot of analysis goes into planning for an organization. An organization must take a look internally and also externally to make decisions.

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I learned it is important to make SMART goals and also use planning tools such as SWOT analysis to help the organization reach those goals.

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A SMART goal is used to help guide goal setting. SMART is an acronym that stands for Specific, Measurable, Achievable, Realistic, and Timely. Goals are part

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This module taught me some of the pro and cons of going global, in which, I never taught about. For example, keeping a standard across each location and what it takes to achieve this standard.

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A global company is a firm that has a substantial portion of its productive or distributive apparatus in countries outside of where its home base is located. Therefore, the global firm is not only inseparable from globalization, but is the dominant actor and catalyst for globalization. Globalized firms become governments in themselves as they spread their assets and productive capacity worldwide. They become beholden to no one but themselves.

One of the central arguments in favor of globalization and the global firm is efficiency. Firms go global to reach new markets, take advantage of cheaper labor and to be near sources of raw materials. This means that global firms have easier access to those things that make a firm competitive. Their production is made cheaper and their ability to reach many new consumers is radically enhanced. This leads to cheaper prices at home, increased competitiveness and, as a result, more domestic hiring.

As far as the developing world is concerned, globalization, so the argument goes, has been a godsend. Multinational corporations (MNCs) pay better than domestic firms, teach new skills, inject needed money and information into the economic system and pay local taxes. Regardless of the effect of globalization on the industrialized world, the developing world benefits from MNCs. Workers in the developing world learn to work on advanced equipment and learn successful business plans and models. This only increases the productivity and ability of third world workers and, as a result, these developing economies benefit.

If a Korean firm moves much of its production to Thailand or Indonesia, this means that hundreds, if not thousands, of Koreans have lost their jobs. There is no guarantee that this loss will be made up, and skilled workers now must find jobs in the service sector or retail in order to continue to pay bills. Even worse, firms can wring concessions out of domestic labor because the threat of overseas investment and outsourcing can control all dissent. Pay cuts, the weakening of unions and the lack of any bargaining power or leverage becomes the lot of domestic labor.

There is no lack of challenges to the common argument that MNCs improve the lot of local--that is, foreign--labor. MNCs dominate local governments who need the MNCs more than vice versa. Local governments lower taxes and wages to attract needed investment. Only the small minority of educated labor benefits from this investment. Local governments are hamstrung in their dealings with MNCs since the firm can always cancel their deals and move production elsewhere. The result is that the local economy becomes distorted and dependent on the MNC. A small local oligarchy connected with sources of global capital and credit benefit disproportionately and a new, alienated and a-national class develops, which is psychologically and materially dependent on the MNC. Dependency leads to distortion as this oligarchy controls the financial health of the local economy and government. Democracy is destroyed and inequality institutionalized.

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Pros & Cons of Global Companies | Bizfluent

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A global company is a firm that has a substantial portion of its productive or distributive apparatus in countries outside of where its home base is located. Therefore, the global firm is not only inseparable from globalization, but is the dominant actor and catalyst for globalization. Globalized fi…

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In this module, I learned that being a global business has its benefits, however, it comes with many obstacles - such as political, economic and cultural.

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This module was probably my favorite. I truly believe an organization cannot survive in today's marketplace without trust, honesty, and a diverse workforce.

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I learned the definition of management and the different aspects of management.

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Describe what management is.

Management is everywhere. Any time people work to achieve a goal, they are engaging in management. At least as far back as the building of pyramids in ancient Egypt or Mesoamerica, people have used principles of management to achieve goals. Today, organizations of all types-social, political, and economic-use management techniques to plan and organize their activities.

Two Aspects of Management

When people talk about management, they may be referring to very different aspects. They may be talking about the people who are the managers, especially those people in strategic positions who make important decisions for the organization, such as the executive officers, president, or general manager. Or, they may be referring to the activities and functions of an organization to achieve organizational goals.

Management As People

The people with the responsibility and authority to determine the overall direction of the organization are often referred to as the management of the organization. Management has the authority to decide what the goals of the organization should be and how those goals will be achieved. Individuals in upper management must be aware of conditions in the organization's environment and have knowledge of the total resources of the organization. They put these two together to determine the most promising path for the organization to pursue.

Let's look at a small-scale illustration. Imagine a family considering their vacation plans. They have a goal: to get away from home and work to spend an enjoyable week or two together. To achieve their goal they must first make a number of related decisions such as these: Where will we go? How will we get there? Where will we stay? What will we do while we are there?

These decisions cannot be made without considering the resources they have available for the trip. Perhaps they have saved money for the trip or they decide to take out a small loan. Maybe they will rent an RV and camping equipment or buy into a timeshare. They might be experienced backpackers or they might enjoy just chilling at the beach. The family's decision makers must plan on how to use their resources-both material resources, such as money and equipment, and intellectual resources, such as knowledge and experience-to create a successful vacation. But deciding what they are going to do is not enough; they need to actually do things to get ready for their trip. They may need to make reservations, schedule time off work, get their car serviced, or buy a new camera and appropriate clothing and gear. Finally, if they have made all the right decisions and all the necessary arrangements, they can go on their trip and have a great time.

Management As Process

As we saw in the earlier example, decision making and planning are required before actions are taken. Defining the goals of the organization, planning the actions to meet the goals, and organizing the resources needed to carry out the actions are all vital functions of management. Planning and organizing ensure that everyone in the organization is working together toward meeting goals.

Organizations, like families, also have goals. In large organizations, the goals are usually formally defined. A corporate goal may be to increase market share by 12 percent in two years or to provide 250 free meals per week to a local shelter. In small organizations or family businesses, the goals may be more general and informal, such as to provide a unique dining experience to patrons or to be able to retire comfortably in five years.

All organizations-businesses, the military, government departments, nonprofit service providers, or public school systems-require management because they all are trying to achieve goals. And although it may seem straightforward, the management process is complex. In most cases, management functions include:

applying and distributing organizational resources effectively

acquiring new resources when necessary

analyzing and adapting to the ever-changing environment in which the organization operates

complying with legal, ethical, and social responsibilities of the community

developing relationships with and among people to execute the strategies and plans

Management Defined

Perhaps the most critical of all the management processes listed earlier is creating the systems and processes that allow people to work effectively toward organizational goals. In fact, many people define management as the art of getting things done through people. Although technology and data are increasingly important in modern organizations, people continue to be a primary focus of management. Putting this all together, we can propose a definition of management: management is the process of planning, organizing, leading, and controlling people in the organization to effectively use resources to meet organizational goals.

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Describe what management is. Management is everywhere. Any time people work to achieve a goal, they are engaging in management. At least as far back as the building of pyramids in ancient Egypt or Mesoamerica, people have used principles of management to achieve goals.

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I learned that in order for any organization to become successful it is important to address issues of inclusion and diversity head-on, and not be afraid to become 'uncomfortable' in order to solve the problems.

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Why are diversity, equity, and inclusion important for your business?

To help business leaders with their efforts to be a more diverse and inclusive workplace, we asked business professionals and executives why they are making changes to be inclusive at work. From nurturing a more positive workplace to generating fresh insights, there are several reasons why investing in intentional Diversity, Equity, and Inclusion (DEI) practices is an imperative move for every business.

Here are 12 benefits that DEI can bring to businesses:

Promote a Shared Experience

Provide Broader Perspectives

Nurture a More Positive Workplace

Understand Customers Better

Add Integrity to the Team

Put Actions Behind Words

Give Opportunities to All

Mirror the Market

Generate Fresh Insights

Gain Global Appeal

Encourage Innovation

Experience Better Retention

Promote a Shared Experience

When we make the case for the importance of DEI, we can do so in two crucial ways: the moral case and the business case. The human or moral case refers to our shared humanity and how when one group suffers we all suffer, and when we invest in the equity of every group, we all benefit. Heather McGhee's latest book, The Sum of Us, makes a strong case for this.

From a business case, if you want a workplace where you attract people who stay, you have to pay attention to diversity and inclusion. PolicyLink has a great resource for illustrating the ROI, dollars saved (and made), with a focus on equity. By investing in diverse people with situational fairness in mind, you can save money by reducing costs on things like mental health and physical health. Investing in education also helps reduce these costs as you can also free all the innovative talent and contribution of people who think and create and consume differently. This creates better aligned choices for people with diverse interests and needs. Your business will attract potential candidates and customers when they see themselves represented among every level of your organization and workforce. A sense of shared power and opportunity translates to better products and services, and happier, more committed staff and colleagues!

Audrey D. Jordan, Ph.D., Claremont Lincoln University , Jerry D. Campbell Professor and DEI Specialist

Provide Broader Perspectives

Diversity, equity, and inclusion provide a much broader perspective for problem-solving and developing creative solutions for a competitive advantage and greater success. DEI creates and fosters an open, learning environment for the betterment of your employees, which ultimately produces quality products and services for your customers.

Encourage a More Positive Environment

Dr. Robert Sellers , chief diversity officer at the University of Michigan, breaks down the distinction between diversity, equity, and inclusion in this way: Diversity is where everyone is invited to the party, Equity means that everyone gets to contribute to the playlist, Inclusion means that everyone has the opportunity to dance. When businesses prioritize DEI, it encourages a more innovative, positive environment, which, in turn, creates a more profitable company. And most importantly, it means we all get to dance!

Understand Customers Better

When diversity, equity, and inclusion are made a priority at your business, every facet of your organization can benefit, including your bottom line. We work with a wide range of people, providing insurance to renters, truckers, business owners, and homeowners. We want our company to reflect the kind of diversity that we see in our customers, so they know they are being represented and understood. Teams are 158% more likely to understand target customers when they have at least one member who represents their target's gender, race, age, sexual orientation, or culture.

Add Integrity to the Team

At Lyon Shield Security, our employees are our most valuable asset. We value strength, reliance, and integrity in all that we do. Effective verbal and written communication, the ability to make good decisions under pressure, and the capability to implement specific instructions are valued qualities. Looking for guards and dispatchers that value diversity, equity in inclusion is also a top priority when looking for a candidate. We need employees that are accepting of each other and others. We strive to look for diverse individuals that are willing to do their job and do it well!

Put Actions Behind Words

DEI is the actual walk behind the talk. When it comes to creating change, it is not enough just to talk about it. There must be action behind the words and when businesses focus on DEI they are putting in the work behind their words in the mission, or values of the company. A 2017 study found that businesses that invested in DEI also saw increases in their returns on sales and invested capital, and employees saw that their ideas were put into development. There are tangible results to adding equity and diversity into your business. Don't just speak about it, be about it.

Give Opportunities to All

Businesses need to include diversity, equity, and inclusion because it shows consumers and employees that you are not afraid to give opportunities to all people. Everyone deserves an opportunity to show their work skills, and having DEI in a business gives everyone a chance. Employees want to work for a company that gives opportunities and is inclusive of all people. That is why it is important.

Mirror the Market

Diversity and inclusion are essential to creating an infrastructure that mirrors the market we reside in. Our demographic stems from people of all backgrounds within our great country, and therefore, meeting the image our flags convey with the same inclusive atmosphere at our company provides us a sense of integrity and authenticity, which helps us maintain even better customer relationships. Our employees are veterans and men and women of all backgrounds, and we strive to give voice to their concerns and involve them in decisions when applicable. A solid team dynamic thrives off diversity and the different viewpoints those from various nationalities and genders provide.

Generate Fresh Insights

Just like in modern history, it was in countries like the Netherlands that, through inclusive policies and diversity, managed to get economically and socially ahead of countries that were expelling those who belonged to different religions. So it is in the modern enterprise. Diversity and inclusiveness are more than just about reaching quotas. The upsides are actually scandalously underrated. To have these in your company translates immediately into fresh insights, perspectives, ideas, languages, contacts, and professional cultures. There is really much to gain from diversity, and organizations can be a melting pot for those benefits.

Gain Global Appeal

In the world we all live in today, being a globally appealing company is king. Global appeal means including different groups of people, ways of thinking, and treating all people with respect. A company of any size needs to have this global appeal.

Nurture Innovation

The reasons are endless as to why companies should promote diversity, inclusion, and equity. For one, there are higher prospects for creativity and innovation. When you allow different people with different skills, backgrounds, and outlooks on life to work together, there's no limit to what they will create. And as a leader, you want to encourage those differences to be celebrated and explored. It's what makes companies relatable and global.

Experience Better Retention
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Cultivating an inclusive work environment can actually reduce employee turnover. It's a logical conclusion when you realize that staff who feel valued and that their voice is heard will stay with a company longer than those who don't. Inclusion, diversity, and equity empower your employees to take pride in their work and the company.

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Claremont Lincoln University - Online Master's Degrees for 21st Century Careers

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Why are diversity, equity, and inclusion important for your business? To help business leaders with their efforts to be a more diverse and inclusive workplace, we asked business professionals and executives why they are making changes to be inclusive at work.

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This module also taught me the different levels of management and how each level plays an intricate part of an organization

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I learned that there are many different organizational structures, and they all have their advantages and disadvantages, depending on the type of organization.

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Large or small, every organization should operate with a defined organizational structure. A well thought out and strategic business configuration clarifies reporting relationships and supports good communication - resulting in efficient and effective work process flow.

The board and senior leadership should be the group who determines the type of organizational structure that would best support the internal operations, how work is carried out and the chain-of-command.

Determining the best structure is done by answering the questions:

Senior leadership looks at all functions and determines how they would like work activities to be organized and carried out. This process also identifies natural reporting relationships and chain-of-command. Reporting relationships can be both vertical as well as horizontal.

8 Common Business Organizational Structures

1. Hierarchical Organizational Structure

Organizations that use a traditional hierarchical structure rely on a vertical chain of command as the prime method of organizing employees and their responsibilities. Military, government, and other very large organizations use a hierarchy to determine the level of control employees have over their work as well as their rank relative to others.

Hierarchical structures typically feature multiple layers of management and are therefore prone to bureaucracy and the creation of silos that prevent cross-team collaboration.

An example of hierarchical organizational structures:

Pros:

Easy layout to understand

Communicate reporting relationships

Built-in understanding of future promotion opportunities

Cons:

Ready to build your own organizational chart?

2. Flat or Horizontal Organizational Structure

Companies with flat or horizontal structures often have fewer levels of management or executives over employees. Most people that have worked for a small company such as a startup will have experienced this type of structure. At most, there is one layer of middle managers between an executive(s) and employees, but oftentimes there are no middle managers present at the company.

The advantage of a horizontal structure is that it gives employees more responsibilities which in turn requires them to have more transparency within the greater organization. It also removes the bureaucratic nature of large hierarchical structures, allowing for quick decisions to be made and executed on.

The disadvantage of a flat structure is that it requires multidisciplinary professionals who don't desire to specialize. Middle managers also have a tendency to be stretched thin within this structure as they'll be overseeing many types of professionals and projects.
Recommended Reading: Hierarchical vs. Flat Organizational Structures and Benefits of Each

Employees often receive more responsibilities

Requires employees given more transparency

Allows for quick communication and decision making

Pros:

Cons:

3. Matrix Organizational Structure

A matrix structure provides for reporting levels both horizontally as well as vertically. Employees may be part of a functional group (i.e. engineer) but may serve on a team that supports new product development (i.e. new album). This kind of structure may have members of different groups working together to develop a new product line.

For example, a recording engineer who works for a music publisher, may have engineers who report to him but may also use his expertise and work with teams to develop new music albums.

Pros:

Cons:

4. Functional Organizational Structure

Functional organizational structures are the most common. A structure of this type groups individuals by specific functions performed. Common departments such as human resources, accounting and purchasing are organized by separating each of these areas and managing them independently of the others.

For example, managers of different functional areas all report up to one director or vice president who has responsibility for all of the operational areas.

The advantage of this type of structure is that functions are separated by expertise but the challenges comes in when different functional areas turn into silos that focus only on their area of responsibility and don't support the function of other departments.

An example of functional organizational structures:

Pros:
Ready to build your own functional organizational chart?
Cons:

5. Product Organizational Structure

Another common structure is to be organized by a specific product type. Each product group falls within the reporting structure of an executive and that person oversees everything related to that particular product line.

For example, an executive over Kraft products would be responsible for every product under that label - dressings, meats, sauces, etc.

The advantage of this type of structure is that it organizes products by category but can create completely separate processes from other product lines within the organization.

An example of product organizational structures:

Organizes products by categories

Focus on specific market segments

Allows for specialization

Can encourage healthy competition between departments

Pros:

Other product teams might be cut off from innovations and learning opportunities by other teams at the same company

Can create inefficient/duplicative functions and resources

Can nurture negative rivalries across departments

Ready to build your own product organizational chart?
Cons:

6. Customer Organizational Structure

Certain industries will organize by customer type. This is done in an effort to ensure specific customer expectations are met by a customized service approach.

An example of this would be in healthcare. A patient seen as an outpatient has very different needs than those of patients who spend time in the hospital as inpatients. A customer centered structure creates customized care for those patients.

The advantage of this type of structure is that it specializes in the needs of each customer group but can ignore the needs of different customer types.

An example of customer organizational structures:

Pros:
Ready to build your customer organizational chart?
Cons:

7. Geographic Organizational Structure

For organizations that cover a span of geographic regions, it sometimes makes sense to organize by region. This is done to better support logistical demands and differences in geographic customer needs.

Typically a structure that is organized by geographical regions reports up to a central oversight person. You see this type of structure in companies that go beyond a city or state limit and may have customers all across the country or in multiple states.

An example of geographic organizational structures:

Pros:
Ready to build your geographic organizational chart?
Cons:

8. Network Organizational Structure

Network organizational structures work for businesses that employ freelancers, subcontractors, and vendors dispersed between satellite offices. This type of structure organizes the proper distribution of the company's resources. Employees can visualize workflows, processes, and relationships with on- and off-site coworkers.

The communication inherent in network organizational structures encourages employees to collaborate to complete projects. As there isn't a strict hierarchy, employees are empowered to take initiative and make decisions.

An advantage of the network organizational structure is that it emphasizes open employee communication in the workplace over hierarchy. There isn't a chain of command. It lets employees know each other's project involvement so they can easily collaborate.

An example of network organizational charts

Pros:

Cons:

Start Building Your Organizational Structure With Pingboard

Deliberate time and thought should go into the design of an organization's structure and the build out of an org chart. This is important so employees have a visual of how the organization functions and understands the chain-of-command. Operating within a defined structure, with good communication processes and work-flows, help to ensure efficient management of resources - people, time and money.

Build an org chart today by importing your people data into Pingboard or simply drag and drop people into the org chart. Workforce planning is easy with Pingboard because you can create multiple versions of your org chart and share a private link with colleagues for collaboration. When you are ready to share with your staff give everyone a secure link to the org chart so they can see reporting structures across your organization, and insightful employee profiles of coworkers.

Try us out for free today! If you need any help setting up your account we're always here.

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We make it easy to structure your business and add transparency for all levels of employees. After compiling data from thousands of org charts, we invite you to check out our pre-built org chart templates designed with your industry in mind.

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8 Types of Organizational Structures [+ Downloadable Org Chart Templates] | Pingboard

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Review examples & templates for hierarchical, matrix, functional, product, customer, geographic & network organizational structures.