# data[].attributes.body
This indeed article did a great job of breaking down four basic functions of management and then elaborating on each one they decided that planning, organizing leading and controlling where the four basic functions of management. they elaborated on each one by bringing in different types of planning (strategic planning, tactical planning and operational planning) as well as different ways of leading, for example, directing, coaching, supporting and delegating. lastly, they had a frequently asked question section which I thought was really insightful and different than any other article I’ve ever read.

# data[].attributes.attachment_link.readable_text
You may take on a managerial role and need to familiarize yourself with management fundamentals. The functions of management are consistent regardless of the type of business or organization a manager works for. All managers perform the four basic functions of planning, organizing, leading and controlling, though some will spend more time on some functions than others depending on their managerial role in an organization.

In this article, we will look at the basic functions of management and their importance in achieving organizational objectives.

Looking to Hire? Post a Job on Indeed.com.

What are the four basic functions of management?

A century ago, French industrialist Henri Fayol originally identified five elements as the basic functions of management, but today, there are now four generally accepted functions of management: planning, organizing, leading and controlling. These functions work together in the creation, execution and realization of organizational goals. The four functions of management can be considered a process where each function builds on the previous function. To be successful, management needs to follow the four functions of management in the proper order.

Managers first need to develop a plan, then organize their resources and delegate responsibilities to employees according to the plan, then lead others to efficiently carry out the plan, and finally evaluate the plan's effectiveness as it is being executed and make any necessary adjustments.

Planning

In the planning stage, managers establish organizational goals and create a course of action to achieve them. During the planning phase, management makes strategic decisions to set a direction for the organization. Managers can brainstorm different alternatives to achieve the objective before choosing the best course of action. While planning, managers typically conduct in-depth analysis of the organization's current state of affairs, taking into consideration its vision and mission and evaluating what resources are available to meet organizational objectives.

While planning, managers usually evaluate internal and external factors that may affect the execution of the plan, such as economic growth, customers and competitors. They also establish a realistic timeline for achieving the goal or goals based on the organization's available finances, personnel and resources. Managers may have to take additional steps, such as seeking approval from other departments, executives or their board of directors before proceeding with the plan.

There are several approaches to planning:

Strategic planning: This type of planning is often carried out by an organization's top management and usually creates goals for the entire organization. It analyzes threats to the organization, evaluates the organization's strengths and weaknesses and creates a plan of how the organization can best compete in its environment. Strategic planning usually has a long timeframe of three years or more.

Tactical planning: Tactical planning is the shorter-term planning of an objective that will take a year or less to achieve. It is usually carried out by an organization's middle management. Tactical planning is usually aimed at a specific area or department of the organization such as its facilities, production, finance, marketing or personnel.

Operational planning: Operational planning is the process of using tactical planning to achieve strategic planning and goals. Operational planning creates a timeframe for putting a portion of the strategic goal into practice operationally.

Organizing

The purpose of organizing is to distribute the resources and delegate tasks to personnel to achieve the goals established in the planning stage. Managers may need to work with other departments of the organization, such as finance and human resources, to organize the budget and staffing. During the organizing stage, managers strive to create a work environment conducive to productivity. Managers typically take employees' motivation and aptitude into account to match employees with roles and tasks that best fit their abilities.

When assigning team member roles, managers should explain and ensure that employees understand their individual duties. To help employees feel engaged and productive, managers should ensure that employees are assigned an appropriate amount of work and an appropriate amount of time to complete their work.

Here are some examples of the organizing function:

If the company's brand manager works part-time and the organization's goal is to launch a new advertising campaign for a product, the brand manager may not take on the significant responsibility of managing the campaign besides their regular duties. The company may hire an advertising agency to help with the promotion of the product.

If a company's sales in a geographic area have grown exponentially, management may plan to split the territory in two and need to divide the current team working in the territory and hire additional staff members as needed.

Leading

Leading consists of motivating employees and influencing their behavior to achieve organizational objectives. Leading focuses on managing people, such as individual employees, teams and groups rather than tasks. Though managers may direct team members by giving orders and directing to their team, managers who are successful leaders usually connect with their employees by using interpersonal skills to encourage, inspire and motivate team members to perform to the best of their abilities.

Managers can foster a positive working environment by identifying moments when employees need encouragement or direction and using positive reinforcement to give praise when employees have done their jobs well.

Managers usually incorporate different leadership styles and change their management style to adapt to different situations. Examples of situational leadership styles include:

Directing: The manager leads by deciding with little input from the employee. This is an effective leadership style for new employees who need a lot of initial direction and training.

Coaching: The manager is more receptive to input from employees. They may pitch their ideas to employees to work cooperatively and build trust with team members. This style of leadership is effective for individuals who need managerial support to further develop their skills.

Supporting: The manager decides with team members but focuses more on building relationships within the team. This style of leadership is effective for employees who have fully developed skills but are sometimes inconsistent in their performance.

Delegating: The leader provides a minimum of guidance to employees and is more concerned with the vision of the project than day-to-day operations. This style of leadership is effective with employees able to work and perform tasks on their own with little guidance. The leader can focus more on high-level goals than on tasks.

Related: 15 Leadership Qualities That Make a Great Leader

Controlling

Controlling is the process of evaluating the execution of the plan and making adjustments to ensure that the organizational goal is achieved. During the controlling stage, managers perform tasks such as training employees as necessary and managing deadlines. Managers monitor employees and evaluate the quality of their work. They can conduct performance appraisals and give employees feedback, providing positive remarks on what they are doing well and suggestions for improvement. They may also offer pay raise incentives to high-performing employees.

Managers may need to make adjustments such as:

Budget adjustments

Managers monitor the budget and resources to ensure that they are using the resources available and not going over budget. For example, a manager may notice that she is going over budget on a project but be unsure what is causing the project to go over budget. In this situation, she will need to identify whether there is a general problem with overspending or whether one department, in particular, is going over budget. Once the manager identifies the source of the overspending, she must take action to curb overall spending and make cuts as necessary to balance the budget.

Staffing adjustments

Managers may need to make challenging decisions such as whether to reassign an employee who produces a low-quality work to a different task or dismiss them from a project. They may also need to add additional team members to meet an organizational goal if they conclude that the team is understaffed. If this is the case, they may also need to consult with organization executives to secure more funding.

# data[].attributes.attachment_link.title
What Are the 4 Basic Functions of Management?

# data[].attributes.attachment_link.description
You may take on a managerial role and need to familiarize yourself with management fundamentals. The functions of management are consistent regardless of the type of business or organization a manager works for. All managers perform the four basic functions of planning, organizing, leading and controlling, though some will spend more time on some functions than others depending on their managerial role in an organization.

# data[].attributes.body
I picked this photo as a good visual aid for those who may not love an article-based guide. I love how it highlighted in bigger words each of the skills and then went on to give a description of what each one means.

# data[].attributes.body
this article identifies ethical issues that led to Congress passing the Sarbanes-Oxley Act

# data[].attributes.body
Corporate social responsibility (CSR) refers to actions that businesses take or refrain from taking based on the impact of those actions on the external environment and community. this article analyzes corporate social responsibility, ethics, and diversity within the context of actual organizations

# data[].attributes.attachment_link.description
Business should be a force for good. That’s why we’re proud to be a Certified B Corp™ and commit 1/3 of profits for grassroots good. As a Certified B Corp™, we meet the highest standards of social and environmental performance, transparency, and accountability.

# data[].attributes.body
this article identifies key global organizations and trade agreements

# data[].attributes.attachment_link.readable_text
Last updated 1 month ago. Our resources are updated regularly but please keep in mind that links, programs, policies, and contact information do change.
International Organizations like the United Nations, World Trade Organization, and International Monetary Fund are frequently in the news, shaping global events and policies that affect countries worldwide, including the United States.

But what exactly are they, how did they come to be, and why should they matter to Americans? This guide aims to make these complex entities more accessible and useful, helping you understand their role in the world and their impact on your life.

Understanding International Organizations: The Global Rule-Makers and Problem-Solvers

What Are International Organizations and Why Do They Matter?

At its core, an international organization can be defined as "an association or union of nations established or recognized by them for the purpose of realizing a common end." More broadly, they are bodies that promote voluntary cooperation and coordination between or among their members.

The primary purpose of these organizations isn't born from a philosophical desire for world government, but rather from practical necessity. As nations and peoples interact more frequently and intensely through trade, travel, and communication, the need for rules, regulations, and cooperative mechanisms becomes essential. IOs aim to regulate these interactions, facilitate cooperation on shared challenges-from climate change to pandemics-and provide platforms for political initiatives and coalition building.

Their impact on the global order is profound. International organizations are crucial for creating norms, developing policies, and delivering programs across a vast spectrum of global issues. These include conflict management, human rights, sustainable development, humanitarian crises, migration, and international trade. In essence, they hold the keys to a smarter and more responsive global order.

For Americans, understanding IOs is vital. These organizations influence global stability, economic prosperity, and human welfare, all of which directly and indirectly affect American lives, businesses, and the foreign policy conducted by the U.S. government.

While often criticized for perceived inefficiencies or infringements on national sovereignty, the historical development of IOs underscores their emergence from practical necessity. As global interconnectedness intensifies, the requirement for frameworks to manage shared challenges and regulate interactions-tasks beyond the capacity of any single nation-also grows.

A Brief History: How IOs Evolved to Shape Our World

The idea of international cooperation through formal bodies is not new. Early concepts for international representative bodies, respect for international law, arbitration, and even international police forces to ensure peace have been conceptualized by thinkers since the 16th century.

The 19th century witnessed significant developments that propelled the formation of IOs.

Following the Napoleonic wars, the "Concert of Europe" emerged as an informal system of consultation among Great European powers. This system, through international conferences, accustomed governments to high-level multilateral discussions before conflicts erupted.

The Industrial Revolution brought about technical and scientific advancements that increased interactions between states, necessitating cooperation. Early IOs often arose from these practical, functional needs. Examples include the Central Commission for the Navigation on the Rhine (1815), the Danube Commission (1856), the International Telegraph Union (1865, now the International Telecommunication Union or ITU), the International Bureau of Weights and Measures (1875), and the Universal Postal Union (1878).

The latter half of the 19th century also saw the rise of international pacifist movements and a growing interest in arbitration as a means to prevent war. The Hague Conferences of 1899 and 1907 were key milestones in attempting to establish international mechanisms for peaceful dispute settlement.

It's also critical to acknowledge the colonial influence on the development of modern IOs. Their origins are intertwined with colonialism, initially serving as tools to coordinate imperial activities and manage inter-imperial conflict, before later expanding globally.

The devastation of World War I provided a stark lesson on the need for a more robust international organization dedicated to maintaining peace. This led to the establishment of the League of Nations in 1920. The League was the first major attempt at a comprehensive IO designed not just for technical cooperation but explicitly for preventing war. U.S. President Woodrow Wilson was a principal architect of the League; however, the United States ultimately never joined, a decision that significantly weakened the organization's potential and foreshadowed its eventual failure to prevent World War II.

The devastation of World War II and the shortcomings of the League spurred the creation of the United Nations in 1945. This marked a new era of multilateralism, with the UN at its center, accompanied by the establishment of other key IOs like the Bretton Woods institutions - the International Monetary Fund and the World Bank. The post-WWII order was significantly shaped by the United States, which made a strategic decision to embed its influence within this expanding framework of institutions and international law.

Types of International Organizations: From Governmental Pacts to Citizen Action

International organizations come in various forms, but a primary distinction is made between Intergovernmental Organizations (IGOs) and Non-Governmental Organizations (NGOs).
Intergovernmental Organizations (IGOs)
These are the most commonly recognized type of IO. An IGO is formed when two or more governments sign a multilateral treaty to form such a body and agree to finance its operations.

Their members are primarily sovereign states. Prominent examples include the United Nations, the World Trade Organization, the International Monetary Fund, and the World Health Organization.

For instance, the World Bank, an IGO, provides access to its research via its Open Knowledge Repository and global development data through its World Development Indicators. Northwestern University Library also offers a list of IGOs with websites.
Non-Governmental Organizations (NGOs)
NGOs are defined as private, self-governing, not-for-profit organizations that are often dedicated to the service and protection of those sectors of society that tend to be unserved or underserved by governments.

They operate independently of direct government control. Their work typically focuses on humanitarian aid, human rights advocacy, environmental protection, or development initiatives.

Examples include organizations like Doctors Without Borders, Amnesty International, and the World Wildlife Fund. Resources for finding NGOs include the Associations Directory by the American Society of Association Executives and the World Association of Non-Governmental Organizations, which offers a searchable directory. Duke University Libraries also maintains an NGO List.

The Union of International Associations further distinguishes International Non-Governmental Organizations (INGOs) as a specific category.
Supranational Organizations
This is a special type of IGO where member states voluntarily surrender power in specific areas to the higher organization.

Decisions made by a supranational organization are binding on its member states, indicating a deeper level of integration and a partial pooling of sovereignty. The European Union is the most prominent example, although the degree of supranational authority varies across different policy areas within the EU.
Other Classifications
Early scholar Pitman B. Potter also distinguished between bilateral organizations (involving two nations) and multilateral organizations (involving multiple nations), as well as customary organizations (based on established practices) versus conventional organizations (established by formal treaties). Some classifications also consider multinational enterprises (MNEs) as a third main type of "international organization," distinct from IGOs and NGOs, due to their significant cross-border operations and influence.

The increasing prominence and influence of NGOs and other non-state actors like technology companies and philanthropic foundations in global governance signify an evolution in how international cooperation occurs. It's no longer solely the domain of states; IGOs now operate within a complex ecosystem of diverse actors, impacting their decision-making, resource mobilization, and program implementation.

The Functions of IOs in Global Governance: Setting Norms, Crafting Policies, Delivering Programs

International organizations play a multifaceted role in global governance. Their core functions involve creating norms, developing policies, and delivering programs that address a wide array of international issues.

These areas of influence are diverse and critical to global stability and development, encompassing:

Conflict management and peacebuilding

Human rights protection and promotion

Sustainable development initiatives

Humanitarian crisis response and aid delivery

Management of international migration

Regulation and facilitation of international trade

Beyond these direct actions, IOs also assist governments in establishing a global agenda, mediating political bargaining, providing a forum for political initiatives, and acting as catalysts for the formation of coalition governments. They essentially make it easier for member countries to cooperate and coordinate their efforts on issues that transcend national borders. This function is vital because many global challenges, by their very nature, cannot be effectively addressed by any single nation acting alone.

The landscape of global governance is dynamic. It is no longer exclusively the domain of national governments. Non-governmental organizations, large technology companies, major philanthropic foundations, and influential think tanks have become significant actors. These entities often collaborate with intergovernmental organizations, contributing to a more complex, multi-stakeholder environment where IOs must navigate diverse interests and capabilities to achieve their objectives.

Overview of Key International Organizations

The United Nations: Striving for Peace, Development, and Human Rights

The United Nations stands as the most comprehensive and widely recognized international organization globally. Its work touches nearly every aspect of international relations and human endeavor. Understanding its origins, structure, and multifaceted functions is key to comprehending contemporary global governance.

Origins and Charter: The UN's Founding Vision for a Better World

The historical context of the UN's creation is crucial. It was officially formed in 1945, born from the devastation of World War II and the manifest failures of its predecessor, the League of Nations, to prevent that conflict. The very name "United Nations" was coined by U.S. President Franklin D. Roosevelt and was first formally used in the "Declaration by United Nations" on January 1, 1942. In this declaration, 26 Allied nations pledged to continue their joint fight against the Axis powers, laying the groundwork for a more permanent cooperative body.

The UN Charter serves as the organization's foundational treaty-akin to a global constitution. It was signed on June 26, 1945, in San Francisco at the conclusion of the United Nations Conference on International Organization, and officially came into force on October 24, 1945. This document is more than symbolic; it is an instrument of international law that codifies major principles governing relations between states.

The Preamble to the Charter eloquently expresses the aspirations of its founders. It articulates a collective determination "to save succeeding generations from the scourge of war," "to reaffirm faith in fundamental human rights, in the dignity and worth of the human person, in the equal rights of men and women and of nations large and small," "to establish conditions under which justice and respect for the obligations arising from treaties and other sources of international law can be maintained," and "to promote social progress and better standards of life in larger freedom."

Article 1 of the Charter outlines the UN's primary Purposes:

1. To maintain international peace and security, and to that end: to take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace, and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace.

2. To develop friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, and to take other appropriate measures to strengthen universal peace.

3. To achieve international cooperation in solving international problems of an economic, social, cultural, or humanitarian character, and in promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion.

4. To be a centre for harmonizing the actions of nations in the attainment of these common ends.

Complementing these purposes, Article 2 of the Charter lays down fundamental Principles that guide the actions of the UN and its members. These include the sovereign equality of all its Members, the commitment by Members to fulfill their Charter obligations in good faith, the settlement of international disputes by peaceful means, and the principle that all Members shall refrain from the threat or use of force against the territorial integrity or political independence of any state.

Regarding Membership, the UN is open to all "peace-loving states" that accept the obligations contained in the Charter and, in the judgment of the Organization, are able and willing to carry out these obligations. The process for admission is two-tiered: it requires a recommendation from the Security Council (where the five permanent members have veto power) followed by a two-thirds majority vote in the General Assembly.

How the UN Works: Main Organs and Their Functions

The UN Charter established six principal organs in 1945 to carry out its diverse mandates. With the exception of the International Court of Justice (located in The Hague, Netherlands), five of these organs are based at the UN Headquarters in New York City.
General Assembly (GA)
Composition: The General Assembly is the UN's main deliberative, policymaking, and representative organ. It boasts universal representation, with all 193 Member States participating. Each Member State has one vote, reflecting the principle of sovereign equality.

Functions: The GA provides a unique forum for multilateral discussion on the full spectrum of international issues covered by the Charter. It makes recommendations on global matters, and while these are generally non-binding, they carry significant moral and political weight. Decisions on "important questions"-such as those on peace and security, the admission of new members, and budgetary matters-require a two-thirds majority of the members present and voting. Other questions are decided by a simple majority.
Security Council (SC)
Composition: The Security Council is composed of 15 Members. Five of these are permanent members (P5): China, France, the Russian Federation, the United Kingdom, and the United States. These permanent members hold the power of veto, meaning any one of them can block a substantive resolution. The remaining 10 members are non-permanent, elected by the General Assembly for two-year terms and are chosen to ensure geographical representation.

Functions: The SC has the primary responsibility under the UN Charter for the maintenance of international peace and security. Its decisions are legally binding on all UN Member States. The Council can investigate any dispute or situation which might lead to international friction, recommend methods of adjustment or terms of settlement, call upon parties to settle disputes by peaceful means, and, in some cases, resort to imposing sanctions or even authorize the use of force to maintain or restore international peace and security.
Economic and Social Council (ECOSOC)
Composition: ECOSOC has 54 Member States, elected by the General Assembly for overlapping three-year terms.

Functions: This Council serves as the principal body for coordination, policy review, policy dialogue, and recommendations on economic, social, and environmental issues. It also plays a key role in the implementation of internationally agreed development goals.
International Court of Justice (ICJ)
Composition: The ICJ, also known as the World Court, is composed of 15 judges elected to nine-year terms by the UN General Assembly and the Security Council, voting independently. These judges are chosen for their qualifications in international law, not as representatives of their governments. The Court is located at the Peace Palace in The Hague, Netherlands.

Functions: The ICJ is the principal judicial organ of the United Nations. Its main functions are to settle legal disputes submitted to it by States in accordance with international law (provided the states concerned have accepted its jurisdiction) and to give advisory opinions on legal questions referred to it by duly authorized UN organs and specialized agencies.
Secretariat
Composition: The Secretariat is headed by the Secretary-General, who is appointed by the General Assembly upon the recommendation of the Security Council for a five-year, renewable term. The Secretary-General is the UN's chief administrative officer. The Secretariat comprises tens of thousands of international UN staff members who carry out the diverse day-to-day work of the Organization.

Functions: The Secretariat services the other principal organs of the UN and administers the programmes and policies laid down by them. Its duties are as varied as the problems dealt with by the United Nations and include administering peacekeeping operations, mediating international disputes, surveying economic and social trends, and preparing studies on human rights and sustainable development.
Trusteeship Council
Current Status: The Trusteeship Council was established under Chapter XIII of the UN Charter to provide international supervision for 11 Trust Territories placed under the administration of seven Member States. By 1994, all Trust Territories had attained self-government or independence. Consequently, the Trusteeship Council suspended its operations on November 1, 1994.

Main Organs of the United Nations

The UN Family: Specialized Agencies, Funds, and Programs

Beyond its six principal organs, the United Nations system encompasses a vast network of specialized agencies, funds, and programs, often collectively referred to as the "UN family." These entities, while working in coordination with the UN and sharing its goals, are legally independent intergovernmental organizations. Each has its own constitution, rules, membership, governing bodies, and budget.

Two of the most well-known and impactful entities within the UN family are the World Health Organization (WHO) and the United Nations Children's Fund (UNICEF).
Focus on World Health Organization (WHO)
History & Mandate: Founded in 1948, the WHO is the UN's specialized agency for global health. Its core mission is to connect nations, partners, and people to promote health, keep the world safe, and serve the vulnerable, so everyone, everywhere can attain the highest level of health. The WHO Constitution, also from 1948, firmly roots its work in the fundamental principle of the right to health and well-being for all people.

Key Functions: The WHO leads global efforts to expand universal health coverage, directs and coordinates the world's response to health emergencies (like pandemics), and promotes healthier lives across the lifespan, from pregnancy care through old age. It also plays a crucial role in shaping the health research agenda, setting international norms and standards, articulating evidence-based policy options, and providing technical support to countries.

Structure: The WHO comprises 194 Member States. Its supreme decision-making body is the World Health Assembly, attended annually by delegations from all Member States. The Executive Board implements the Assembly's decisions and policies. WHO's global headquarters is in Geneva, Switzerland, and it operates through six regional offices and over 150 country offices to deliver its programs on the ground.

US Involvement & Policy: The United States has historically been one of the largest financial contributors to the WHO and an active participant in its governance. The U.S. Centers for Disease Control and Prevention (CDC) is a critical partner for the WHO in global health initiatives. However, the U.S. relationship with the WHO has seen shifts in recent years. Current U.S. engagement priorities heavily emphasize pandemic prevention, preparedness, and response, as well as strengthening global health security architecture. The U.S. Agency for International Development (USAID) also frequently collaborates with the WHO on various global health programs.
Focus on UNICEF (United Nations Children's Fund)
History & Mandate: UNICEF was established in the aftermath of World War II, in December 1946, initially to provide emergency relief to children in war-torn Europe. Its mandate, issued by the UN General Assembly, is to advocate for the protection of children's rights, to help meet their basic needs, and to expand their opportunities to reach their full potential. UNICEF's work is guided by the Convention on the Rights of the Child, the most widely ratified human rights treaty in history.

Key Functions: UNICEF works in numerous areas critical to child survival and development. It is the world's largest provider of vaccines and operates a massive humanitarian supply warehouse. Key functions include providing life-saving humanitarian aid in emergencies, promoting education, ensuring access to health and nutrition services, protecting children from violence, exploitation, and abuse, improving access to clean water and sanitation, and addressing the impacts of climate change and disease on children.

Structure: UNICEF works in over 190 countries and territories. It is supported by 33 National Committees, which are independent non-governmental organizations that advocate for children and raise funds. UNICEF USA is one such committee, partnering with American corporations, faith-based organizations, individuals, philanthropic foundations, and government agencies.

US Involvement & Policy: The United States has been integral to UNICEF's growth and global impact since its inception. UNICEF USA is consistently the top National Committee in terms of directing funding towards UNICEF's global work for children. The U.S. government has historically supported UNICEF's key focus areas, such as basic education, clean water initiatives, child immunization programs, and HIV/AIDS prevention efforts. USAID often partners with UNICEF on specific programs, for example, to strengthen social safety nets for vulnerable children and families.
Other Key UN Entities
The UN system includes many other vital specialized agencies and bodies. Some prominent examples include:

Food and Agriculture Organization (FAO): Combats hunger, improves agricultural practices

International Civil Aviation Organization (ICAO): Sets standards for international civil aviation

International Fund for Agricultural Development (IFAD): Eradicates rural poverty, promotes sustainable agriculture

International Labour Organization (ILO): Promotes social justice, decent work, fair labor practices

International Maritime Organization (IMO): Regulates global shipping for safety and environmental sustainability

International Telecommunication Union (ITU): Coordinates global telecommunication networks and services

UN Educational, Scientific and Cultural Organization (UNESCO): Promotes education, science, culture, and communication

UN Industrial Development Organization (UNIDO): Promotes industrial development for poverty reduction

World Food Programme (WFP): Delivers food assistance in emergencies and works to improve nutrition and build resilience

UN High Commissioner for Refugees (UNHCR): Protects refugees, forcibly displaced communities, and stateless people

The sheer breadth of these agencies highlights the UN's evolution from primarily a peace and security organization to one that addresses nearly every facet of human development and international cooperation.

Key Areas of UN Action

The United Nations engages in a wide array of activities aimed at fulfilling the purposes outlined in its Charter. Its work can be broadly categorized into several key areas, each involving multiple UN organs, agencies, funds, and programs.
Maintaining Peace and Security: UN Peacekeeping Operations
UN Peacekeeping is one of the UN's most visible and complex undertakings. It is a flagship activity of the UN Department of Peace Operations designed to help countries navigate the difficult path from conflict to peace.

How it Works: UN peacekeepers-comprising military personnel, police officers, and civilian experts voluntarily contributed by Member States-are deployed to conflict-affected regions. Their mandates, authorized and regularly reviewed by the UN Security Council, are diverse and can include monitoring ceasefires, protecting civilians, disarming and demobilizing combatants, supporting the organization of elections, strengthening the rule of law, promoting human rights, and facilitating humanitarian aid delivery.

Funding: The financing of UN Peacekeeping operations is a collective responsibility of all UN Member States. Each state is legally obligated under Article 17 of the UN Charter to pay its respective share. Expenses are apportioned by the General Assembly based on a complex formula that considers the relative economic wealth of Member States, with the five permanent members of the Security Council required to pay a larger share due to their special responsibility for maintaining international peace and security. The United States is the largest single financial contributor to UN peacekeeping.

Examples of Missions: The UN has deployed numerous peacekeeping operations since its first missions in 1948. Lists of past operations and current operations are available on the UN peacekeeping website.

UNAMSIL (United Nations Mission in Sierra Leone, 1999-2005): This mission is widely regarded as a significant success story. Deployed after a brutal civil war, UNAMSIL disarmed over 75,000 ex-fighters (including child soldiers), assisted in holding presidential and parliamentary elections, helped rebuild the national police force, and supported the restoration of state authority.

UNMIL (United Nations Mission in Liberia, 2003-2018): Established following Liberia's second devastating civil war, UNMIL played a crucial role in monitoring the ceasefire, facilitating two free and fair presidential elections, maintaining security, disarming ex-combatants, and supporting the rebuilding of state institutions and infrastructure.

Effectiveness: Independent studies and U.S. Government Accountability Office assessments have indicated that UN peacekeeping can be an effective tool for reducing the duration of conflict, preventing its recurrence, and protecting civilians. Moreover, UN peacekeeping is often significantly more cost-effective than unilateral military interventions.
Delivering Humanitarian Aid: Responding to Global Crises
The UN system is at the forefront of international efforts to alleviate suffering caused by natural disasters, conflict, and other emergencies.

Key Agencies: The UN Office for the Coordination of Humanitarian Affairs (OCHA) plays a central role by bringing together various humanitarian actors-UN agencies, NGOs, and local partners-to ensure a coherent and effective response to emergencies. Other critical UN entities in humanitarian response include the World Food Programme (WFP), which provides food assistance; the UN High Commissioner for Refugees (UNHCR), which protects and assists refugees and displaced persons; and UNICEF, which focuses on the needs of children in emergencies.

Types of Aid & Funding: Humanitarian aid encompasses a wide range of life-saving support, including food, shelter, clean water and sanitation, medical assistance, and emergency education. The UN manages several humanitarian funds, such as the Central Emergency Response Fund (CERF), which provides rapid funding for sudden-onset crises, and various country-based pooled funds for ongoing emergencies.

Examples of Major Responses:

The Indian Ocean Tsunami (2004) triggered one of the largest humanitarian responses in history. The UN played a vital coordinating role. The United States pledged substantial aid and mobilized significant U.S. military assets for logistical support.

The Haiti Earthquake (2010) prompted a massive international relief effort. The U.S. government launched one of the largest relief operations in its history, with USAID taking the lead in a whole-of-government approach conducted in close coordination with the United Nations.
Upholding International Law and Justice
A core purpose of the UN is "to establish conditions under which justice and respect for the obligations arising from treaties and other sources of international law can be maintained."

The UN Charter as International Law: The Charter itself is a foundational instrument of international law, binding on all Member States. It codifies fundamental principles such as the sovereign equality of States and the prohibition of the use of force in international relations contrary to the Charter's purposes.

Mechanisms for Development and Enforcement: The UN promotes and develops international law through various means:

Courts and Tribunals: The International Court of Justice is the UN's principal judicial organ, settling legal disputes between states that accept its jurisdiction and providing advisory opinions. The UN has also been instrumental in establishing ad hoc international criminal tribunals and UN-assisted courts.

Multilateral Treaties: The UN serves as a forum for negotiating and adopting a vast array of multilateral treaties on diverse subjects. The UN Treaty Database provides information on over 560 major multilateral instruments.

Security Council Actions: The Security Council, through its resolutions, contributes to the enforcement and development of international law.

Promoting Sustainable Development: The Sustainable Development Goals
The UN is a central actor in global efforts to promote sustainable development, recognizing that peace, security, and human rights are intrinsically linked to economic and social progress and environmental protection.

The 17 Sustainable Development Goals: Adopted by all UN Member States in 2015, the SDGs are a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030. The 17 interconnected goals address a wide range of social needs, including education, health, social protection, and job opportunities, while simultaneously tackling climate change and environmental degradation.

UN Support for SDG Achievement: The UN system actively supports countries in their efforts to achieve the SDGs through public awareness campaigns, specific programs for youth engagement, fostering partnerships with governments and civil society, monitoring progress through mechanisms like the High-Level Political Forum on Sustainable Development, and addressing the critical issue of financing for development.
Protecting Human Rights
The promotion and protection of human rights is a foundational principle and a key purpose of the United Nations.

Universal Declaration of Human Rights: Adopted by the General Assembly on December 10, 1948, the UDHR is a milestone document in the history of human rights. Drafted under the leadership of former U.S. First Lady Eleanor Roosevelt, it articulates fundamental civil, political, economic, social, and cultural rights to which all human beings are entitled.

UN Special Procedures: This system consists of independent human rights experts, known as Special Rapporteurs, Independent Experts, or Working Groups, who are appointed by the Human Rights Council to report and advise on specific human rights issues, either thematic or country-specific situations. As of 2024, there were 46 thematic mandates and 14 country-specific mandates.

Other Human Rights Mechanisms: The UN human rights machinery also includes treaty bodies, the Human Rights Council, and the Office of the UN High Commissioner for Human Rights.

The UN's Achievements, Challenges, and Enduring Relevance

Over its nearly eight decades of existence, the United Nations has a complex record of significant accomplishments alongside persistent criticisms and formidable challenges.
Major Achievements
The UN's contributions to global peace, stability, and human welfare are substantial.

A primary achievement cited is its role in preventing another world war among great powers, a core objective stemming from its post-WWII origins.

The adoption of the Universal Declaration of Human Rights in 1948 stands as a landmark achievement, setting a common standard of human rights for all peoples and nations.

The UN pioneered large-scale peacekeeping operations, with the first full-fledged force deployed during the 1956 Suez Crisis, a model that has evolved and been applied in numerous conflicts since.

The establishment of critical humanitarian and development agencies like the World Food Program in 1961 and UNICEF (which received the Nobel Peace Prize in 1965) has saved and improved countless lives.

The UN played a significant role in the process of decolonization, supporting the transition of many nations to independence and statehood.

It continues to be a primary channel for delivering humanitarian aid to millions affected by conflict, disaster, and famine.

The UN spearheads global efforts in promoting sustainable development and coordinating climate action, most notably through the Sustainable Development Goals.
Criticisms and Challenges
Despite its achievements, the UN faces ongoing and significant criticisms:

A major point of critique is its inability to prevent all conflicts or genocides, with examples such as the 1971 Bangladesh genocide, the Srebrenica massacre in 1995, the Darfur crisis, and the prolonged Syrian civil war often cited.

The Security Council's effectiveness is frequently hampered by the veto power of its five permanent members. During the Cold War, this often led to paralysis on critical issues where P5 interests diverged, and similar dynamics persist today.

The UN is often criticized for bureaucracy, lack of coordination among its myriad agencies, operational inefficiency, and, at times, allegations of corruption or misconduct.

A fundamental challenge is that the UN often lacks sufficient authority and resources to fully implement its ambitious mandates and policies effectively.

It can become a "convenient scapegoat" for the failures or inaction of its own Member States, who may task it with intractable problems without providing adequate political or financial support.

The UN has struggled to adapt to certain post-Cold War challenges, such as complex ethnic conflicts and the rise of non-state armed groups.

The safety of UN personnel has become a growing concern, as they are increasingly targeted by non-state actors in conflict zones.

There is a persistent call for reform of the Security Council to make it more representative of the 21st-century world, but this is a politically fraught issue due to the entrenched interests of the P5 and the difficulty of amending the UN Charter.
Current Relevance
Despite these challenges, the United Nations remains an indispensable actor on the global stage.

Many of today's most pressing global issues transcend national boundaries-climate change, pandemics, terrorism, cybercrime, large-scale migration, financial instability-and require multilateral solutions that the UN is uniquely positioned to facilitate.

It provides an essential convening power and a universal platform for diplomacy, dialogue, and norm-setting among its 193 Member States.

The UN continues to be crucial for leading and coordinating international humanitarian responses and is the primary global forum for addressing climate change.

The Sustainable Development Goals offer a globally agreed-upon framework for achieving economic and social progress and environmental sustainability.

The UN continually adapts to address new and emerging challenges, such as those related to artificial intelligence, big data for development, youth engagement, and gender equality.

The World Trade Organization: Regulating Global Commerce

The World Trade Organization stands as the principal international institution dedicated to formulating and enforcing the rules of trade between nations. Its existence and operations have a profound impact on global economic activity, affecting businesses, consumers, and national economies, including that of the United States.

From GATT to WTO: The Evolution of Global Trade Rules

The WTO's origins lie in the General Agreement on Tariffs and Trade (GATT). Concluded in 1947 by 23 countries, including the United States, GATT was initially conceived as a set of multilateral trade agreements aimed at the substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis. It was intended to be a provisional measure pending the establishment of a more comprehensive International Trade Organization, an entity that ultimately never came into being due to a lack of ratification by key countries.

Despite its provisional status, GATT effectively governed international trade for nearly five decades. It operated as a de facto global trade organization, overseeing eight "rounds" of multilateral trade negotiations that progressively lowered tariffs and addressed other trade barriers. A cornerstone principle of GATT was trade without discrimination, primarily embodied in the Most-Favored-Nation clause, which stipulated that any advantage given to one contracting party must be extended to all others.

The eighth and final round of GATT negotiations, the Uruguay Round (1986-1994), was particularly transformative. This ambitious round involved 117 countries and resulted in a landmark agreement that significantly expanded the scope of multilateral trade rules. It achieved substantial reductions in tariffs on industrial goods, made initial strides in addressing agricultural subsidies, and, crucially, brought trade in services and the protection of intellectual property rights under a multilateral framework for the first time.

The most significant outcome of the Uruguay Round was the agreement to establish the World Trade Organization. The WTO officially came into existence on January 1, 1995, superseding GATT but incorporating all of GATT's existing agreements and principles into its framework. The WTO was designed to be a more permanent and robust institution with a stronger dispute settlement mechanism. As of recent data, the WTO comprises 166 member countries, representing the vast majority of global trade.

Core Mission and Principles: Facilitating Smooth, Predictable, and Free Trade

The mission of the World Trade Organization is to serve as the only global international organization dealing with the rules of trade between nations. Its overarching goal is to ensure that trade flows as smoothly, predictably and freely as possible. The WTO agreements, negotiated and ratified by its members, provide the legal ground rules for international commerce.

Several core principles underpin the WTO system:

Non-discrimination: This is a fundamental tenet with two main components:

Most-Favored-Nation Treatment: This principle requires that if a WTO member grants another country a special favor (such as a lower customs duty rate for one of their products), then it has to do the same for all other WTO members. Essentially, every member should be treated as "most-favored." Exceptions to this rule are permitted for regional trade agreements and for special access given to developing countries.

National Treatment: This principle addresses non-tariff barriers to trade. It stipulates that imported goods and locally-produced goods should be treated equally after the foreign goods have entered the market. This means that imported goods should not be subject to higher internal taxes or different regulatory requirements than equivalent domestic products solely because they are imported.

Reciprocity: This principle reflects the idea that trade liberalization should be a two-way street. Countries should make mutual concessions to open their markets, limiting the potential for "free-riding" on the concessions of others and ensuring that negotiated benefits are broadly shared.

Binding and Enforceable Commitments: Tariff concessions and other commitments made by WTO members during negotiations are legally binding and are recorded in "schedules of concessions." A country can only modify these "bindings" after negotiating with its trading partners, which might involve offering compensation for any loss of trade.

Transparency: WTO members are required to publish their trade regulations, establish impartial and transparent procedures for administering those regulations, respond to requests for information from other members, and notify the WTO of changes in their trade policies.

Safety Valves: The WTO agreements recognize that governments may sometimes need to restrict trade. There are provisions allowing for measures to protect public health, animal and plant health, the environment, and national security.

The WTO performs several key functions to achieve its mission:

Administering the complex web of WTO trade agreements

Acting as a forum for ongoing multilateral trade negotiations

Providing a dispute settlement mechanism for resolving trade conflicts between members

Monitoring and reviewing the trade policies of its member countries

Offering technical assistance and training to developing countries

Cooperating with other major international economic institutions

Key WTO Agreements: Shaping International Commerce

The World Trade Organization oversees a comprehensive set of agreements that form the legal basis for international trade. These agreements, negotiated and signed by the vast majority of the world's trading nations, cover trade in goods, services, and intellectual property.

GATT (General Agreement on Tariffs and Trade): Originally signed in 1947, GATT primarily addresses international trade in goods. Its principles and many of its specific provisions were incorporated into the WTO framework in 1995. A key achievement under GATT, continued by the WTO, has been the significant reduction of tariffs on manufactured products worldwide.

GATS (General Agreement on Trade in Services): Recognizing the growing importance of services in the global economy, the GATS was a landmark achievement of the Uruguay Round. It establishes a framework of rules for international trade in services and aims to progressively liberalize this trade. This is particularly important for the U.S., which is a leading global exporter of services.

TRIPS (Agreement on Trade-Related Aspects of Intellectual Property Rights): The TRIPS Agreement sets down minimum standards for the protection of intellectual property rights that WTO members must provide. This includes protection for copyrights, patents, trademarks, industrial designs, geographical indications, and trade secrets. For the U.S., with its highly innovative industries such as pharmaceuticals, software development, and entertainment, the TRIPS Agreement is vital for combating piracy and counterfeiting in international markets.

Agreement on Agriculture: This agreement aims to reform trade in agricultural products and provide the basis for market-oriented policies. It includes commitments to reduce agricultural subsidies, improve market access by converting non-tariff barriers into tariffs, and limit export subsidies.

Other Key Agreements: The WTO framework also includes numerous other important agreements that address specific aspects of trade, such as:

Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement): Deals with food safety and animal and plant health standards

Agreement on Technical Barriers to Trade (TBT Agreement): Aims to ensure that technical regulations, standards, and conformity assessment procedures do not create unnecessary obstacles to trade

Agreement on Subsidies and Countervailing Measures (SCM Agreement): Defines rules for the use of subsidies and the application of countervailing duties to offset injurious subsidization

Anti-Dumping Agreement: Governs the application of anti-dumping measures

Agreement on Import Licensing Procedures: Aims to simplify and make transparent the procedures for obtaining import licenses

Agreement on Government Procurement (GPA): A plurilateral agreement that opens up government procurement markets to foreign competition

Key WTO Agreements and Their Impact on US Interests

How the WTO Functions: Negotiations and Dispute Settlement

The World Trade Organization carries out its mission primarily through two key functions: facilitating trade negotiations among its member governments and providing a mechanism for settling trade disputes.
Trade Negotiations
The WTO serves as the principal international forum where governments negotiate the rules of global trade and make commitments to liberalize their markets. These negotiations can cover a vast range of topics, from reducing tariffs on specific goods to establishing new rules for emerging areas of trade. The WTO offers various platforms for these discussions, including regular committee meetings and larger negotiating rounds, such as the Doha Development Agenda. The organization also provides extensive technical assistance and training programs to help developing countries build their capacity to participate effectively in these complex negotiations.

However, reaching consensus among the WTO's diverse membership is a significant challenge. Differing economic interests, development levels, and political priorities, especially between developed and developing nations, often lead to protracted negotiations and, at times, stalemate. The DDA, launched in 2001 with a focus on addressing the needs of developing countries, ultimately stalled due to deep disagreements on core issues like agricultural subsidies and market access for industrial goods.

In response to these challenges, there has been a growing trend towards plurilateral negotiations-agreements among a subset of WTO members on specific issues, rather than requiring full consensus from all members. Current negotiation topics also reflect the evolving global economy, with increasing focus on "21st-century" issues such as digital trade and e-commerce, the role of state-owned enterprises, climate-related trade policies, and sustainable fisheries subsidies.
Dispute Settlement System
A cornerstone of the WTO is its dispute settlement system, designed to provide a reliable, impartial, and rules-based mechanism for resolving trade conflicts between member governments over the interpretation and application of WTO agreements. The process typically involves several stages:

1. Consultations: The aggrieved member requests formal consultations with the member it believes is violating a trade rule.

2. Panel Establishment and Review: If consultations fail, the complaining party can request the establishment of a dispute settlement panel. These panels, composed of trade experts, examine the evidence and arguments and issue a report with findings and recommendations.

3. Appellate Review (Historically): Panel reports could be appealed to the WTO Appellate Body, a standing body of seven individuals with recognized expertise in law and international trade.

4. Implementation and Enforcement: If a member is found to have violated WTO rules, it is expected to bring its measures into conformity with the agreements. If it fails to do so within a reasonable period, the complaining party may be authorized by the WTO to impose retaliatory trade measures.

Current Status and Challenges of the Dispute Settlement System
The WTO's dispute settlement system, particularly its appellate function, is currently facing a profound crisis. Since December 2019, the Appellate Body has been unable to function because the United States has blocked the appointment of new members to fill vacancies. The U.S. has long-standing concerns about what it views as "judicial overreach" by the Appellate Body, arguing that it has exceeded its mandate by creating new obligations not explicitly agreed to by WTO members and by not adhering to procedural rules.

This paralysis of the appellate stage means that while panels can still hear cases and issue reports, these reports can be appealed "into the void," effectively preventing them from becoming binding WTO rulings if the losing party chooses to appeal. This significantly weakens the WTO's ability to enforce its rules and resolve disputes, which is a core function of the organization.

Major Achievements, Criticisms, and Contemporary Issues

The World Trade Organization, and its predecessor GATT, have had a significant impact on the global economy for over seven decades. This impact includes notable achievements but has also drawn considerable criticism and faces ongoing contemporary challenges.
Major Achievements

Reduction of Trade Barriers: Perhaps the most significant achievement has been the substantial reduction of tariffs and other trade barriers worldwide. Successive negotiating rounds under GATT and the WTO led to dramatically lower tariffs on industrial goods, contributing to an unprecedented expansion of global trade.

Expansion of Global Trade and Economic Growth: By creating a more open and predictable trading environment, the WTO/GATT system has facilitated a massive increase in international trade, which has been a major engine of global economic growth.

Establishment of a Rules-Based System: The WTO provides a comprehensive set of rules governing international commerce, increasing predictability and transparency for businesses and governments.

Dispute Settlement Mechanism: For much of its existence, the WTO's dispute settlement system was considered a major success, providing a relatively effective and impartial way to resolve trade conflicts between nations and enforce agreed-upon rules.

Poverty Reduction: The increased market access and economic growth spurred by more open international trade under the WTO framework have been credited with helping to lift hundreds of millions of people out of poverty.

Criticisms of the WTO
Despite its contributions, the WTO has faced numerous criticisms:

Bias Towards Developed Countries and Corporations: A common critique is that the WTO's rules and negotiations tend to favor the interests of developed countries and large multinational corporations, sometimes at the expense of local development and smaller businesses in developing nations.

Impact on Developing Nations: Some argue that WTO policies fail to adequately protect developing nations and can even be detrimental. The "infant industry argument" suggests that developing countries need temporary trade protection to nurture new industries and diversify their economies, but WTO rules can limit their ability to do so.

Agricultural Trade: A persistent point of contention is the failure to achieve significant reductions in agricultural subsidies and tariffs in major developed economies like the U.S. and the EU. These practices are seen as harming farmers in developing countries who cannot compete with subsidized products.

Environmental and Social Concerns: Critics charge that the WTO's focus on trade liberalization often ignores or undermines environmental protection, labor standards, and cultural diversity.

Slow Pace of Negotiations: Multilateral trade rounds have become notoriously slow and difficult to conclude, with the Doha Round being a prime example.

Dispute Settlement Overreach: The United States, in particular, has criticized the WTO's dispute settlement system for allegedly exceeding its mandate and creating new obligations for members.

Contemporary Issues and Relevance
The WTO is currently navigating a period of significant challenge that questions its ongoing relevance:

Institutional Paralysis and Rising Protectionism: The organization faces institutional paralysis, particularly with the non-functional Appellate Body, stalled multilateral negotiations, and a global rise in protectionist measures that disregard WTO norms.

Adapting to New Trade Domains: The WTO has struggled to develop binding rules for emerging and critical areas of international trade, such as e-commerce, digital taxation, data flows, and climate-related trade policies.

Marginalization of Developing Nations' Interests: Many developing countries feel their interests are increasingly sidelined in WTO negotiations, and that provisions for Special and Differential Treatment, designed to give them policy space, are under threat.

Systemic Challenges from Non-Market Economies: The rise of major economic powers with different economic models, notably China's state-led capitalism, poses a systemic challenge to WTO rules that were largely designed with market economies in mind.

Despite these profound challenges, many observers believe the WTO remains a crucial pillar of global trade governance. It provides a unique multilateral forum for negotiation, a set of established rules that offer predictability, and a bulwark against unchecked protectionism that could lead to economic chaos.

The International Monetary Fund: Guardian of Global Financial Stability

The International Monetary Fund is a central institution in the global financial system. It plays a critical role in promoting international monetary cooperation, ensuring financial stability, and supporting sustainable economic growth among its member countries.

The establishment of the IMF dates back to the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire, in July 1944. It officially came into existence in December 1945 when its first 29 member countries signed its Articles of Agreement. The creation of the IMF, alongside its sister institution, the World Bank, was a direct response to the economic turmoil of the interwar period, particularly the Great Depression and the competitive currency devaluations that exacerbated it. The founders aimed to build a framework for international economic cooperation that would prevent such crises from recurring. The United States played a leading role in the IMF's founding, hosting the Bretton Woods conference and significantly shaping its initial design and principles.

The mandate and objectives of the IMF are multifaceted:

To foster global monetary cooperation

To secure financial stability

To facilitate international trade

To promote high employment and sustainable economic growth

To reduce poverty around the world

Its three critical missions are often summarized as: furthering international monetary cooperation, encouraging the expansion of trade and economic growth, and discouraging policies that would harm prosperity.

Governance and Funding: How the IMF Operates

The IMF is an organization of 191 member countries, making its membership near-global. Its governance structure is designed to reflect this broad membership while also acknowledging the varying economic weights of its members.
Governance Structure

Board of Governors: This is the highest decision-making body of the IMF. Each member country appoints one Governor (typically its Minister of Finance or the Governor of its Central Bank) and one Alternate Governor. The Board of Governors usually meets once a year during the IMF-World Bank Annual Meetings.

International Monetary and Financial Committee (IMFC): Composed of 25 Governors (representing constituencies of member countries), the IMFC advises the Executive Board on the supervision and management of the international monetary and financial system.

Executive Board: This body is responsible for conducting the day-to-day business of the IMF. It consists of 25 Executive Directors. The five member countries with the largest quotas (currently the United States, Japan, China, Germany, and the United Kingdom) appoint their own Executive Director. The remaining Executive Directors are elected by groups of countries.

Managing Director: The Managing Director is the head of the IMF staff and serves as the Chair of the Executive Board. They are appointed by the Executive Board and are assisted by four Deputy Managing Directors.

Voting Power: A member country's voting power in the IMF is primarily determined by its quota (its financial contribution to the Fund). Larger economies generally have larger quotas and, consequently, more votes. Major policy decisions require an 85% supermajority of the total voting power. The United States, as the country with the largest quota (approximately 17.4% of the total), holds effective veto power over these critical decisions.
Funding Sources
The IMF's financial resources come primarily from three sources:

Member Quotas: These are the principal source of IMF funding. When a country joins the IMF, it is assigned a quota, which is broadly based on its relative size and position in the world economy. The IMF currently has about $1 trillion in total loanable resources.

New Arrangements to Borrow (NAB): The NAB is a set of credit arrangements between the IMF and a group of member countries and institutions. It serves as a second line of defense to supplement IMF resources if quotas are insufficient to meet lending needs.

Bilateral Borrowing Agreements (BBAs): These are agreements through which individual member countries or their central banks make resources available to the IMF. BBAs serve as a third line of defense.

The United States is the largest financial contributor to the IMF, with a total commitment of about $183 billion, including quota commitments and funds committed to the NAB.

Core Functions

The IMF fulfills its mandate through three main functions: economic surveillance, financial assistance (lending), and capacity development.
Economic Surveillance: Monitoring the Global Economy
A central responsibility of the IMF is to oversee the international monetary system and monitor the economic and financial policies of its 191 member countries. This surveillance function is intended to promote stability and prevent crises.

Article IV Consultations: The IMF typically conducts regular (usually annual) bilateral discussions with each member country, known as "Article IV consultations." During these consultations, IMF staff engage with government and central bank officials to assess the country's economic and financial conditions, discuss its policy plans, and provide policy recommendations aimed at fostering sustainable growth and stability. The most recent Article IV consultation with the United States, concluded in July 2024, acknowledged the U.S. economy's strong performance but also pointed to the need to address fiscal imbalances, monitor inflation risks, and tackle rising inequality and poverty.

Global Surveillance Reports: In addition to country-specific surveillance, the IMF monitors regional and global economic and financial developments. It publishes flagship multilateral surveillance reports, including:

The World Economic Outlook, which provides detailed analysis and forecasts of global economic trends and prospects

The Global Financial Stability Report, which assesses key risks and vulnerabilities in the global financial system

The Fiscal Monitor, which tracks developments in public finances and provides analysis and advice on fiscal policy issues

Financial Assistance: Lending to Countries in Need
Providing loans and other forms of financial assistance to member countries experiencing actual or potential balance-of-payments problems is a core responsibility of the IMF. These problems occur when a country cannot obtain sufficient financing on affordable terms to meet its net international payments.

Purpose: IMF lending aims to give countries breathing room to implement adjustment policies and reforms that will correct their balance of payments difficulties, restore conditions for sustainable economic growth, and maintain financial stability.

Lending Instruments: The IMF offers a range of lending instruments tailored to different types of balance of payments needs and country circumstances. These can be broadly categorized:

Loans from the General Resources Account (GRA) are provided on non-concessional terms and are available to all member countries. Key GRA facilities include Stand-By Arrangements for short-term needs, the Extended Fund Facility for medium-term needs requiring structural reforms, the Rapid Financing Instrument for urgent needs with limited conditionality, and the Flexible Credit Line for countries with very strong fundamentals.

Loans from the Poverty Reduction and Growth Trust (PRGT) are provided on concessional terms (currently at zero interest rates) to low-income countries. Key PRGT facilities include the Stand-by Credit Facility, the Extended Credit Facility, and the Rapid Credit Facility.

The Resilience and Sustainability Trust (RST) offers longer-term affordable financing to low-income and vulnerable middle-income countries to address challenges like climate change and pandemic preparedness.

Conditionality: IMF financial assistance is typically conditional on the borrowing country implementing specific economic policies and reforms aimed at resolving its balance of payments problems and fostering sustainable growth. This "conditionality" is one of the most controversial aspects of IMF lending, as critics argue it can impose undue hardship and infringe on national sovereignty.

IMF Main Lending Instruments
Capacity Development: Building Stronger Economic Institutions
The IMF provides technical assistance and training to its member countries to help them build effective economic institutions and strengthen their capacity to design and implement sound economic policies.

What it Covers: This support covers a wide range of areas, including fiscal reform (tax administration, public financial management), monetary and exchange rate policies, financial sector stability and supervision, debt management, economic statistics, and legal frameworks related to economic governance.

How it's Delivered: Capacity development is delivered through various channels: IMF staff at headquarters may engage with country officials directly; IMF experts may be stationed in a country as resident advisors; the IMF supports a global network of regional capacity development centers; and it offers extensive classroom-based and online training courses for government officials from member countries.

Impact: Effective capacity development helps countries improve their economic management, enhances the quality and implementation of economic policies, and strengthens their resilience to shocks.

Notable IMF Interventions and Achievements

Throughout its history, the IMF has been at the center of responses to numerous global and regional economic crises, and its interventions have had significant impacts.

Crisis Management: The IMF has played a pivotal role as an international crisis manager.

It was central to addressing the Latin American debt crisis in the 1980s

During the Asian financial crisis of 1997-98, the IMF announced large financial packages for affected countries like Thailand, Indonesia, and South Korea, conditioned on structural reforms

In the wake of the Global Financial Crisis of 2008, the IMF provided approximately $500 billion in financing to 90 countries and injected $250 billion into the global financial system through a Special Drawing Rights allocation

The IMF was also a key player in the response to the Eurozone sovereign debt crisis that began around 2010, providing emergency loans to countries like Greece, Ireland, and Portugal

COVID-19 Pandemic Response: The IMF responded with unprecedented speed and scale to the economic fallout from the COVID-19 pandemic. It temporarily increased access limits to its emergency financing facilities, allowing it to quickly approve assistance for over 80 countries. The Fund also provided debt service relief to its poorest member countries and supported the G20's Debt Service Suspension Initiative. Furthermore, a historic general allocation of SDRs equivalent to $650 billion was made in August 2021 to boost global liquidity.

Support for Low-Income Countries: The IMF has established dedicated facilities to provide concessional lending to low-income countries, such as through the Poverty Reduction and Growth Trust. It has also been a key participant in international debt relief initiatives like the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative.

Case Study - Greece: Greece faced a severe sovereign debt crisis starting in 2009 after years of large fiscal deficits and high debt levels, exacerbated by the global recession. To avoid default, Greece received multiple large-scale bailout packages from the IMF and its European partners. These loans were contingent on the implementation of stringent austerity measures, including significant tax increases and deep cuts to pensions and public spending, aimed at achieving substantial fiscal surpluses. The IMF's involvement was controversial, with debates about the severity of the conditions, the sustainability of Greece's debt, and the social impact of austerity.

Impact of IMF Programs: The economic and social impact of IMF programs is a subject of extensive research and ongoing debate. Some studies suggest that IMF loan arrangements, particularly those with extensive structural reforms, can contribute to increased poverty in the short to medium term. Conversely, other research finds that IMF programs, on average, have not significantly worsened poverty or income inequality, and in some instances, may have been associated with reductions in both.

Criticisms and Debates Surrounding IMF Policies

Despite its crucial role in the global financial system, the IMF has been the subject of significant criticism and ongoing debate regarding its policies and their impacts.

Conditionality and Sovereignty: Perhaps the most persistent criticism revolves around the conditions attached to IMF loans, often referred to as "structural adjustment programs." Critics argue that these conditions, which frequently include fiscal austerity, privatization of state-owned enterprises, trade liberalization, and deregulation, can impose severe hardship on the populations of borrowing countries, particularly the poor and vulnerable. These policies are often seen as being imposed from the outside, thereby infringing on the national sovereignty of member states.

Moral Hazard: Another significant concern is the issue of moral hazard. Critics contend that the availability of IMF bailouts may encourage countries (and their creditors) to pursue reckless or unsustainable economic policies, knowing that the IMF will likely step in to prevent a catastrophic default. This "safety net" effect, it is argued, can delay necessary reforms and create a cycle of dependency on IMF assistance.

Dominance of Wealthy Nations and Democratic Deficit: The IMF's governance structure, where voting power is linked to financial contributions (quotas), means that wealthier industrialized nations, particularly the United States, wield significant influence over its policies and decisions. This has led to accusations that the IMF primarily serves the interests of these powerful states and promotes a specific economic ideology, rather than reflecting the diverse needs and perspectives of its full membership.

Effectiveness and Impact on Poverty/Inequality: The actual impact of IMF programs on poverty and inequality is highly debated. While the IMF states its goal is to reduce poverty and promote growth, some studies suggest its structural reform programs can exacerbate poverty and inequality, at least in the short to medium term. Others find no significant negative impact or even positive effects in some cases.

"Mission Creep" and Loss of Focus: More recently, the U.S. Treasury Secretary criticized the IMF for having "strayed from its mandate" by attempting to develop expertise in nearly all global issues, leading to a loss of focus on its core macroeconomic and financial stability mission.

Transparency and Accountability: While the IMF has made efforts to increase transparency, concerns remain about the decision-making processes behind loan programs and conditionality, and the accountability of the institution for the outcomes of its policies.

These criticisms highlight the inherent tension in the IMF's role: it must balance its mandate to ensure global financial stability with the diverse economic realities and sovereign concerns of its member countries.

International Organizations and the United States: A Complex Relationship

The United States has a deeply intertwined and often complex relationship with major international organizations. As a principal architect of the post-World War II global order, the U.S. has historically played a leading role in these institutions, using them as platforms to advance its foreign policy objectives, promote global stability, and address transnational challenges.

Why the US Engages: Benefits of Multilateralism for America

The United States' participation in international organizations and its broader commitment to multilateralism-cooperating with other countries and international institutions in pursuit of common goals-is rooted in a recognition of several key benefits for American interests.

Addressing Global Challenges: Many of today's most pressing issues, such as climate change, pandemics (like COVID-19, addressed by the WHO), terrorism, economic crises, and nuclear proliferation, are inherently transnational. They do not respect national borders and cannot be effectively tackled by any single nation acting alone. IOs provide essential forums and mechanisms for coordinating international responses to these shared threats.

Promoting Peace and Stability: Institutions like the United Nations are designed to promote global peace and stability by providing platforms for diplomacy, conflict resolution, and peacekeeping. A more stable world is generally a safer and more prosperous world for the United States.

Economic Advantages: Participation in economic IOs like the WTO and IMF can offer significant economic benefits. The WTO, for instance, establishes rules for international trade that can open foreign markets to U.S. goods and services, protect American intellectual property, and provide a mechanism for resolving trade disputes. The IMF works to ensure global financial stability, which is crucial
Our articles make government information more accessible. Please consult a qualified professional for financial, legal, or health advice specific to your circumstances.

# data[].attributes.attachment_link.title
Understanding International Organizations: Your Guide to the UN, WTO, IMF, and More

# data[].attributes.attachment_link.description
International Organizations like the United Nations, World Trade Organization, and International Monetary Fund are frequently in the news, shaping global events and policies that affect countries worldwide, including the United States. But what exactly are they, how did they come to be, and why should they matter to Americans?

# data[].attributes.body
this article identifies Evaluate cultural effects in the context of management functions- planning, organizing, leading, and controlling, given a business scenario

# data[].attributes.body
this article defines planning in the context of the management process, including benefits and drawback of planning

# data[].attributes.attachment_link.readable_text
Definition: Planning is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process which lays down an organisation's objectives and develops various courses of action, by which the organisation can achieve those objectives. It chalks out exactly, how to attain a specific goal.

Planning is nothing but thinking before the action takes place. It helps us to take a peep into the future and decide in advance the way to deal with the situations, which we are going to encounter in future. It involves logical thinking and rational decision making.

Characteristics of Planning

1. Managerial function: Planning is a first and foremost managerial function provides the base for other functions of the management, i.e. organising, staffing, directing and controlling, as they are performed within the periphery of the plans made.

2. Goal oriented: It focuses on defining the goals of the organisation, identifying alternative courses of action and deciding the appropriate action plan, which is to be undertaken for reaching the goals.

3. Pervasive: It is pervasive in the sense that it is present in all the segments and is required at all the levels of the organisation. Although the scope of planning varies at different levels and departments.

4. Continuous Process: Plans are made for a specific term, say for a month, quarter, year and so on. Once that period is over, new plans are drawn, considering the organisation's present and future requirements and conditions. Therefore, it is an ongoing process, as the plans are framed, executed and followed by another plan.

5. Intellectual Process: It is a mental exercise at it involves the application of mind, to think, forecast, imagine intelligently and innovate etc.

6. Futuristic: In the process of planning we take a sneak peek of the future. It encompasses looking into the future, to analyse and predict it so that the organisation can face future challenges effectively.

7. Decision making: Decisions are made regarding the choice of alternative courses of action that can be undertaken to reach the goal. The alternative chosen should be best among all, with the least number of the negative and highest number of positive outcomes.

Planning is concerned with setting objectives, targets, and formulating plan to accomplish them. The activity helps managers analyse the present condition to identify the ways of attaining the desired position in future. It is both, the need of the organisation and the responsibility of managers.

Importance of Planning

It helps managers to improve future performance, by establishing objectives and selecting a course of action, for the benefit of the organisation.

It minimises risk and uncertainty, by looking ahead into the future.

It facilitates the coordination of activities. Thus, reduces overlapping among activities and eliminates unproductive work.

It states in advance, what should be done in future, so it provides direction for action.

It uncovers and identifies future opportunities and threats.

It sets out standards for controlling. It compares actual performance with the standard performance and efforts are made to correct the same.

Planning is present in all types of organisations, households, sectors, economies, etc. We need to plan because the future is highly uncertain and no one can predict the future with 100% accuracy, as the conditions can change anytime. Hence, planning is the basic requirement of any organization for the survival, growth and success.

Steps involved in Planning

By planning process, an organisation not only gets the insights of the future, but it also helps the organisation to shape its future. Effective planning involves simplicity of the plan, i.e. the plan should be clearly stated and easy to understand because if the plan is too much complicated it will create chaos among the members of the organisation. Further, the plan should fulfil all the requirements of the organisation.

# data[].attributes.attachment_link.title
What is Planning? definition, characteristics, steps and importance - Business Jargons

# data[].attributes.attachment_link.description
Definition: Planning is the fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process which lays down an organisation's objectives and develops various courses of action, by which the organisation can achieve those objectives.

# data[].attributes.body
this article describes group decision making, including advantages and disadvantages, ways to facilitate, dealing with conflict and making decisions

# data[].attributes.attachment_link.title
Advantages And Disadvantages of Group Decision Making - Management

# data[].attributes.attachment_link.description
Decision making is the process of making decisions that involve deciding on a course of action, acquiring information, and weighing different options.

# data[].attributes.body
this article describes characteristics of organizational structures

# data[].attributes.attachment_link.readable_text
Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.

Centralized vs. Decentralized

Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.

Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.

Hierarchical vs. Circular

A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.

On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next "level," information flows out to the next ring of management.

Vertical vs. Flat

A vertical organizational chart has a clear chain of command with a small group of leaders at the top-or in the center, in the case of a circular structure-and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.

With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.

Benefits of Creating an Organizational Structure

There are many benefits to creating an organizational structure that aligns with the company's operations, goals and objectives. Clearly disseminating this information to employees:

Provides accountability

Clarifies expectations

Documents criteria for promotion

Designates decision-making authority

Creates efficiency

Fosters collaboration

Essential Elements of Clear Organizational Structure

Regardless of the special type of organizational structure you choose, it should have the following components:

Chain of command

Roles and responsibilities

Scope of control

Decision-making authority

Departments or teams within the organization

# data[].attributes.attachment_link.title
7 Organizational Structure Types (With Examples)

# data[].attributes.attachment_link.description
Every company needs an organizational structure-whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the "chain of command" and how info

# data[].attributes.body
this article identifies the efficiencies created by specialization and the division of labor

# data[].attributes.attachment_link.title
Specialization: Maximizing Efficiency: The Role of Specialization in Division of Labor - FasterCapital

# data[].attributes.attachment_link.description
In the realm of productivity and success, the power of focus cannot be overstated. It is the gateway to excellence in any field, acting as the catalyst that transforms potential into reality. When we talk about specialization, focus becomes even more critical; it is the sharpened edge that carves…

# data[].attributes.body
this article describes the functions of Human Resource Management, including the purpose of each

# data[].attributes.attachment_link.readable_text
HR has many important functions in the organization. These include recruitment, performance management, learning and development, and many more. In this article, we will explain the 12 key functions of HRM.

But first, a definition. If we want to understand the functions of Human Resources, we need to understand what Human Resource Management (HRM) is.

According to Storey (1995), HRM is a distinctive approach to employment management that seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural, and personnel techniques.

In this article, we will go over the 12 human resources functions and explain how they help move the organization forward. These functions are:

Let's dive right in.

1. Human resource planning

The first HR function is all about knowing the future needs of the organization. What kind of people does the organization need, and how many? Knowing this will shape recruitment, selection, performance management, learning and development, and all other human resources functions.

Human resources planning is similar to workforce planning. Both focus on where the organization is today and what it needs to be successful in the future.

2. Recruitment and selection

The second HR function involves attracting people to work for the organization and selecting the best candidates.

Attracting people usually starts with an employee brand. Being an attractive employer has plenty of advantages - just as it is the other way around. A good example of the latter is the tobacco industry which struggles to attract talent due to its tainted reputation.

With a strong employer brand and the right sourcing strategies, you're already halfway there. Once candidates apply, the selection process is an HR instrument to pick the best qualified and highest-potential candidates. Technological developments in recruitment have gone very fast and as a result, there are different types of recruitment tools for each part of your recruitment funnel.

3. Performance management

Performance management is essential in ensuring that workers stay productive and engaged. Good performance management involves good leadership, clear goal-setting, and open feedback.

Performance management tools include the (bi)annual performance review, in which the employee is reviewed by his/her manager. It also includes 360-degree feedback tools in which peers, managers, subordinates, and sometimes even customers review the employee's performance. These kinds of tools can be very helpful in providing feedback.

Performance management is also an instrument to close the gap between the workforce you have today and the one you want to have tomorrow. One of the best ways to build your future workforce is through learning and development (L&D).

4. Learning and development

Enabling employees to develop the skills they need for the future is an essential responsibility for HR. This is also related to the first HR function we listed, in which HR bridges the gap between the workforce today and the workforce needed in the near future.

Traditionally, organizations have a set budget for learning and development. This budget is then distributed among its employees. In some countries, this fee is mandatory. In the UK, for example, companies with an annual pay bill of more than £3 million pay a mandatory rate of 0.5% designated for the professional education of their employees.

In other countries, like Belgium and the Netherlands, L&D falls under the employer's responsibility to take care of its employees. In the third group of countries, like the US, this is almost unregulated territory.

Despite the differences in regulation, almost all employers understand the value of investing in the (future) skills of their employees. It's the responsibility of the HR department to lead these efforts in the right direction.

5. Career planning

The fifth function of Human Resource Management is career planning, guidance, and development for employees, together also referred to as career pathing.

Showing employees how their ambition can align with the future of the company helps to engage and retain them. For the organization, there are the benefits of better succession planning, higher productivity, and a stronger employer brand.

6. Function evaluation

As a business and society changes, so too must an efficient HR function. Function evaluation is a technical aspect of HR. By evaluating the HR function, the department ensures that the company is successful at both a strategic level and with service delivery and support. The company needs to deliver the level of services required, whilst operating strategically.

Practically, function evaluation involves comparing various parts of the overall HR operation. This can include the quality, and availability of workers, job location, working times, the economic situation, job responsibilities, and how much value a job adds to your organization. The idea behind function evaluation is that similar jobs should be rewarded similarly.

There are different ways of internally ranking functions.

Ranking method: a method in which subject matter experts rank functions in terms of how much they contribute to the organization as a whole. Functions are paired and raters have to decide which one is more valuable. This is done with all functions and based on the outcome, a ranking is established.

Classification method: jobs can also be classified in different categories using classification methods. In this case, jobs are categorized and then ranked within these categories to come up with a ranking. Categorizations can include education, experience, the degree of specialized skills needed to do the job, the degree to which these skills are in-demand, and so on.

Points method: jobs are categorized according to the factors the organization believes contribute most to its success. Points are then awarded to each category for every job. These categories can include key competencies, like problem-solving, technical knowledge, communication and influencing skills, innovative capability, business acumen, and so on. These competencies will differ per organization

Personal method: in this method, the job itself is not evaluated but the person doing the job is. Here, employees are rewarded based on their skills and competencies.

Rewarding employees for their work is a function that is impossible to miss. Compensation and benefits are integral to attracting the right kind of candidate for the role, and company. These will vary across different fields, countries, and cultures. In some countries, such as the USA, health insurance is often part of a job offer. However, in countries such as the UK, where a public health system provides most healthcare, to most people, this is not the case. Yet the total rewards framework shows that rewards are more than just money. They can also be relational and psychological outcomes.

Rewards include salary but also growth and career opportunities, status, recognition, a good organizational culture, and a satisfying work-life balance. For example, fantastic colleagues and meaningful work are also rewarding to employees. The monetary reward of the job consists of financial rewards and other (secondary) benefits.

The Employee Value Proposition (EVP) sums up all these aspects. The EVP of your company is distinct from the external image and brand. It is the image a company reflects to its employees. Rewards are thus much more than just financial. Here is a non-exhaustive overview of total rewards:

Functions 1 to 7 all fall within the scope of what's called talent management; they aim to attract, develop, motivate and retain (high-performing) employees.

8. Industrial relations

Another function of HR is maintaining and cultivating relationships with labor unions and other collectives, and their members.

Unionization is still prevalent in Europe, although it is declining overall. In 2018, 92% of employees in Iceland were a member of a union and 67% of employees in Denmark. However, in the UK and Estonia, only 23% and 4% of employees, respectively, were. In the USA trade union membership is low, with 10% of employees being members in 2018. Maintaining good relations with unions will help to spot and resolve potential conflicts quickly and will also be beneficial in more difficult economic times when layoffs or other actions are required.

9. Employee participation and communication

According to Dave Ulrich, one of the key roles of HR is to be a credible activist for the employees. Employees need to be informed and heard on different topics that are relevant to them. Communication relates to spreading information relevant to employees.

Being a People's Advocate is one of five elements of the T-shaped HR professional, a new competency framework we developed for the future of the HR workforce. People Advocacy includes culture building, people practices, workplace champion, and communication expert.

10. Health and safety

HR plays an important role in creating and implementing health and safety regulations. Making these regulations part of the company culture is one of the main functions of HR.

A famous example is oil company Shell where it is forbidden to walk the stairs without holding the railing - also in the company's HQ. This is part of Shell's 'Goal Zero', which stands for zero accidents. Although holding the railing is much more important on an oil platform, safety is such a big part of the company culture that safety roles are applied everywhere.

11. Personal wellbeing

HR has a function in assisting and taking care of employees when they run into personal problems. Personal wellbeing is about supporting employees when things don't go as planned. Problems in the workplace and outside can negatively impact employee performance, engagement, and productivity. This, in turn, harms a company's bottom line.

Good personal well-being led by your HR department must work at the level of one-on-one communication with employees, and communication across teams, and companies. For example, a company may offer an employee assistance program by which anyone with mental health issues, can access counseling. On an organization-wide level, the company could hold a mental health awareness day.

12. Administrative responsibilities

The final function of HR is its administrative responsibility. These include personnel procedures and Human Resource Information Systems.

Personnel procedures involve the handling of promotions, relocations, discipline, performance improvement, illness, regulations, cultural and racial diversity, unwanted intimacies, bullying, and so on.

For each of these situations, policies and procedures need to be developed and followed to successfully comply with the requests, or overcome these challenges.

Human Resource Information Systems (HRIS) store employee data. These systems need to be purchased, implemented and managed so the data can be used for better decision-making.

Over to you

HR is a multi-faceted role that enables companies to get the most out of their workforce. As an HR professional, you need to have a wide-ranging skill set to perform across these core HR functions. Within HR, education cannot end with gaining your core qualification. Society and the workplace are constantly changing and evolving. You too must continuously develop, to lead your workforce confidently through change.

Welcome to the Academy to Innovate HR

Future-proof your career in HR by continuously expanding your skill set with the latest and most relevant HR skills.

Browse courses

Related Posts:

# data[].attributes.attachment_link.title
The 12 Key Functions of Human Resources - AIHR

# data[].attributes.attachment_link.description
HR has many important functions in the organization. These include recruitment, performance management, learning and development, and many more. In this article, we will explain the 12 key functions of HRM. But first, a definition. If we want to understand the functions of Human Resources, we need to understand what Human Resource Management (HRM) is.

# data[].attributes.body
this article identifies the role of communications in management, including the communication-process model, common missteps in communication

# data[].attributes.attachment_link.description
Tejinder Sharma Introduction: The word communication has been derived from the Latin word 'communis ' which means ' which indicates common understanding. It is understood as a process of exchange of ideas, views, facts, feelings etc., between people to create common understanding.

# data[].attributes.body
this article differentiates between leadership and management

# data[].attributes.attachment_link.title
ERROR: The request could not be satisfied

# data[].attributes.body
this article differentiates between intrinsic and extrinsic motivation

# data[].attributes.attachment_link.readable_text
Scholars have described several key differences between intrinsic and extrinsic motivation (Mitchell, 2013):

Intrinsic Motivation

Extrinsic Motivation

Purpose of participation: Enjoyment in the process itself

Purpose of participation: Benefits derived from participating

Emotions experienced: Pleasant (enjoyment, freedom, relaxation)

Emotions experienced: Tension and pressure (social approval is not under direct control)

Rewards: Effective rewards (enjoyment, pleasure)

Rewards: Social or material rewards

More likely to stay with a task long-term

More likely to do a necessary task of little interest

Self-motivation to take on new tasks and innovate

Increases social learning compliance

Self-motivation to take on new tasks

Increases speed of task

Slower behavioral change

Removing rewards results in motivation loss

What is Intrinsic Motivation?

Intrinsic motivation involves the doing of an activity for its inherent satisfaction rather than for any obvious external reward (Oudeyer and Kaplan, 2009).

If we are intrinsically motivated, the reward is the sheer challenge and enjoyment of the task and the satisfaction of seeing it through.

Intrinsic motivation is defined as the doing of an activity for its inherent satisfaction rather than for some separable consequence. When intrinsically motivated, a person is moved to act for the fun or challenge entailed rather than because of external products, pressures, or rewards.

Ryan and Deci (2000, p. 56),

Types of Intrinsic Motivation

Researchers identified several different types of intrinsic motivation. One of the most notable of these frameworks is the "4 C's" - challenge, curiosity, control, and context.

Challenge

White (1959) described the idea of the effectance or mastery motives, which suggests that people seek out challenges and new skills to master solely because of the pleasure of accomplishment.

For example, as White notes, young children may spend great amounts of time learning how to walk and talk without extensive extrinsic reinforcement (Sansone and Harackiewicz, 2000).

Achievement-based motivation aims to achieve a goal for personal development reasons. People with achievement motivation may feel worthy when the feat is achieved.

For example, someone may undertake a multi-day hike up a mountain because of the feeling of accomplishment that reaching the peak gives them.

Curiosity

Berlyn (1960) described curiosity and other forms of motivation involving learning as inherent to people's constant process of getting to know their worlds.

For example, hiding something from a child generally creates a very strong motive for the child to discover what has been hidden (Sansone and Harackiewicz, 2000).

Competence motivation, also called learning motivation, is an intrinsic motivation driven by curiosity and a willingness to develop skills. For example, when a salesperson learns new sales techniques because they want to learn something new and improve their work, they expect an external reward.

Control

The first person to explicitly coin the term intrinsic motivation was Hunt (1961). Hunt focused on the motivational value of having a sense of control.

Following Piaget's observations that even infants seem to undergo a systematic process of experimentation and exploration, Hunt emphasized that people find exercising control over the environment to be inherently motivating.

Context

In the field of educational psychology, Bruner (1961) wrote about the importance of contextualizing learning - showing students the relevance and utility of skills taught in school for solving problems or accomplishing intrinsic goals in the larger world.

What is Extrinsic Motivation?

Extrinsic motivation describes behavior driven by external rewards or punishments. These consequences can be tangible, such as monetary loss or shame, or abstract, such as social respect or shame.

Extrinsic motivation is a construct that pertains whenever an activity is done in order to attain some separable outcome. Extrinsic motivation thus contrasts with intrinsic motivation, which refers to doing an activity simply for the enjoyment of the activity itself, rather than its instrumental value.

Ryan and Deci (2000)

The fundamental difference between intrinsic and extrinsic motivation is that intrinsic motivation comes from within, while extrinsic motivation comes from the outside.

However, the two are not mutually exclusive - for instance, someone working on completing a project may be extrinsically motivated to finish to meet a teammate's deadline but intrinsically motivated because they enjoy the project and want to produce high-quality work (Sennett, 2021).

Therefore, our motivations are often a mix of both intrinsic and extrinsic factors.

Researchers have suggested the importance of high initial interest in deliberately selecting activities that are of high intrinsic interest.

While expected tangible rewards can undermine interest in activities of high initial interest, they can enhance interest in tasks originally of little initial interest (Calder & Staw, 1975; Danner & Lonky, 1981; Loveland and Olley, 1979; Sansone & Harackiewicz, 2000).

Types of Extrinsic Motivation

Reward-Based Motivation: reward-based motivation describes motivation resulting from external rewards, tangible or abstract. For example, an employee may be motivated to meet a sales target because of the promise of a bonus.

Power-Based Motivation: power-based motivation is a form of extrinsic motivation reliant upon the desire to exert control over others. For example, a leader may be motivated to lead and inspire people to overcome challenges.

Fear-Based Motivation: Finally, fear-based motivation describes the desire to avoid an extrinsically negative result. For example, a manager may threaten to fine those who are late to work, or a student may study for a test out of fear of a bad grade.

When to Use Extrinsic Motivation

Intrinsically motivated behaviors are performed because of the sense of personal satisfaction that they
bring, while extrinsically motivated behaviors are performed in order to receive something from others.

Sansone and Harackiewicz suggest that there are three variables that can affect the effect of rewards on later motivation (2000):

Perceptions of Continued Instrumental Value

Receiving extrinsic rewards can convey information about the likelihood of further tangible or socially extrinsic rewards in future related situations. Those who receive a tangible reward for a particular activity or accomplishment in one setting may expect a similar reward for a similar activity or accomplishment in the future.

Receiving a reward, regardless of whether or not it is available in the future, can convey that an individual, group, or institution would be pleased by and is likely to approve of one's engagement in similar tasks in the future.

The promise of continued extrinsic tangible or social rewards can motivate one to engage in a previously rewarded activity, regardless of whether it was of initial intrinsic interest to the person (Sansone and Harackiewicz, 2000).

Perceptions of Personal Competence

Extrinsic rewards can also communicate information about competence, and receiving a reward can enhance someone's perceptions of competence. Thus, increasing someone's perceived competence can lead to increases in intrinsic motivation (Sansone, 1986).

These perceptions are more likely if rewards are based on performance rather than merely engagement or completion (Sansone and Harackiewicz, 2000).

Perceptions of External Control

extrinsic rewards can also convey information about someone's level of personal control or autonomy. Receiving extrinsic rewards can decrease perceptions of autonomy and, thus, subsequent intrinsic motivation.

Subsequently, people may be less likely to engage in similar tasks when they do not expect tangible or social extrinsic rewards (Sansone and Harackiewicz, 2000).

Empirical Research

Psychologists have posited two types of motivation theories: dualistic and multifaceted. While dualistic theories divide motivation into two types, intrinsic and extrinsic, multifaceted theories recognize a number of genetically distinct motives, such as hunger, curiosity, positive self-regard, fear, sex, and power (Reiss, 2004).

For the first half of the 20th century, psychologists focused primarily on instrumental learning and extrinsic motivation. Typically, psychologists who conducted such studies attempted to link the receipt of an arbitrary reinforcer to the performance of an arbitrary response.

For example, Thorndike's early studies of problem-solving in cats (2017) and Skinner's work on elementary learning in rats and pigeons (2019) involved rats, cats, or pigeons being taught to press a bar, nudge a panel, or peck keys in order to obtain food, water, or relief from pain.

These researchers were able to teach animals to perform complex sequences of actions (Sansone and Harackiewicz, 2000).

However, in the latter half of the 20th century, psychologists posited a number of challenges to this model of extrinsic motivation.

Particularly, theorists sought to champion forms of "intrinsic motivation" - motivations seemingly intrinsic to many activities regardless of rewards (Sansone and Harackiewicz, 2000).

Shortly after psychologists differentiated between intrinsic and extrinsic motivation, they created various hypotheses about the relationships between these two types of motivation.

Summary of Research Findings

1. Noncontingent external rewards are less likely to produce detrimental effects and more likely to produce positive effects on later intrinsic motivation than rewards contingent on task engagement, completion, or performance.

2. Expectation and receipt of an extrinsic reward for engaging in an activity was sufficient to
produce decreased intrinsic interest in the activity (Lepper & Greene, 1975).

3. Intangible extrinsic rewards (such as verbal feedback) are less likely to produce adverse effects than tangible rewards.

4. Rewards providing evidence of someone's competence have more positive effects on intrinsic motivation than rewards that do not provide information about competence.

5. Researchers have also suggested the importance of high initial interest in deliberately selecting activities that are of high intrinsic interest to participants in the original experiments; while expected tangible rewards can undermine interest in activities of high initial interest, they can enhance interest in tasks originally of little initial interest (Calder and Staw, 1975; Danner and Lonky, 1981; Loveland and Olley, 1979; Sansone and Harackiewicz, 2000).

The effects of extrinsic rewards on children's intrinsic motivation

In the early 1970s, three laboratories found that offering extrinsic rewards for something of intrinsic interest to someone actually undermined subsequent intrinsic interest in those activities (Deci, 1971; Kruglanski, Friedman, and Zeevi, 1971; Lepper, Greene, and Nisbett, 1973; Sansone and Harackiewicz, 2000).

In Deci's 1971 experiment, researchers offered undergraduate students $1 for each three-dimensional manipulative puzzle that they solved correctly.

While doing this, Deci observed the amount of time that students spent working with the same activity when the experimenter left the laboratory, meaning that there was no longer a monetary reward for completing the activity.

While students who did not receive payment dependent upon whether or not they solved the puzzles continued to work on the same puzzles after the researchers left, students in the extrinsic incentive condition spent less time with the puzzles, as they no longer held an incentive value.

According to Deci and Ryan's (1985) self-determination theory, extrinsic incentives can undermine intrinsic interest. For example, consider a boy who loves to play football for the sake of playing football who is then offered money for winning.

According to self-determination theory, extrinsic incentives - such as money and winning - undermine the boy's intrinsic enjoyment of football. In the future, according to this theory, the boy will be less likely to play football in the absence of an extrinsic reward (Reiss, 2012).

Intrinsic and extrinsic motivation as distinct constructs

Generally, early experimental research suggests that intrinsic and extrinsic motivation are opposed (Deci, 1971; Kruglanski, Friedman, and Zeevi, 1971; Lepper, Greene, and Nissbett, 1973).

Deci (1971) examined the effect of verbal rewards for performance on the puzzle task. After solving the puzzle task, researchers gave students the feedback that their time to the solution was "much better than average" than their peers.

The receipt of these verbal rewards increased later intrinsic motivation (Sansone and Harackiewicz, 2000).
Another study supporting that extrinsic and intrinsic motivation are opposed was conducted by Kruglanski et al. (1971), who offered half of a sample of Israeli high school students an extrinsic incentive for participating in a series of experiments in the laboratory.

Those given an extrinsic incentive for participating in the tasks described themselves as less interested in the activities, and their performance on the tasks themselves suffered.

For example, they showed less creativity in listing unusual uses for everyday objects, lower recall of the activities they had just undertaken, and were less likely to show significant Zeigarnik effects (a higher recall of uncompleted or interrupted tasks) (Sansone and Harackiewicz 2000).

The last of the initial experiments to show extrinsic and intrinsic motivation's opposition was conducted by Lepper et al. (1973). In these experiments, Lepper et al. selected children on the basis of their high levels of intrinsic interest in drawing pictures with markers in preschool classrooms.

The researchers then asked the children to do the same activity under one of three conditions: the expected award condition, where children were shown a reward and asked if they would like to work on the activity in order to win one of the rewards; the unexpected-award condition, where children received the reward and feedback at the end of the session; and the no-award condition, where children received verbal feedback but no tangible reward.

Again, upon observing the children later, the researchers found that only those in the expected-reward condition lost interest in drawing with the markers (Sansone and Harackiewicz, 2000). These findings shaped Deci and Ryan's (1985) self-determination theory.

Despite an early line of research arguing that intrinsic and extrinsic motivation are mutually exclusive, more recent findings, such as those of Lepper et al. (1997), have found that intrinsic and extrinsic motivation are not necessarily in negative correlation with each other.

For example, Lepper et al. 's studies of extrinsic and intrinsic motivation in students found that there was a significant positive correlation between curiosity and interest (intrinsic motivators) and attempting to please the teacher or receive a good grade (extrinsic motivators).

This persisted when the studies were replicated in larger populations of students (Sansone and Harackiewicz, 2000).

Intrinsic and extrinsic motivation as a continuum

Ryan and Deci (2000) stressed the notion that extrinsic and intrinsic motivators can combine in the self-determination continuum.

According to the self-determination continuum, people can be motivated - where their psychological needs of autonomy, competence, and relatedness are not met, intrinsically motivated (where all of these needs are met), or somewhere in between.

Ryan and Deci describe the last case as extrinsic motivation in the form of external regulation, introjected regulation, identified regulation, or integrated regulation (2000).

How Do Intrinsic Motivation and Extrinsic Motivation Influence Learning?

Western thinkers ranging from Willliam Blake to Charles Dickens and Mark Twain have traditionally portrayed schools as a source of drudgery, ennui, and misery (Sansone and Harackiewicz, 2000), and educational scholars have acknowledged the lack of motivation students seemingly display in American classrooms (e.g., Bruner, 1962; Silberman, 1970).

In the face of the poor performance of American students in cross-national comparisons of academic accomplishment (e.g., Stevenson, Chen, and Lee, 1993; Stevenson and Stigler, 1994), developmental decrease in motivation in American schools had been of theoretical interest.

One set of explanations for the decline in children's intrinsic motivation is the role of social control in the American classroom (Winnett and Winkler, 1971).

Some authors have noted that social control can increase as children progress through school (Condry, 1978). In particular, Eccles et al. note that as early adolescents develop a thirst for increased autonomy and personal growth, schools seem to increase their focus on discipline, provide fewer opportunities for decision-making, and assign less cognitively challenging coursework (1993).

In educational settings, students are more likely to experience intrinsic motivation to learn when they feel a sense of belonging and respect in the classroom. This internalization can be enhanced if the evaluative aspects of the classroom are de-emphasized and if students feel that they exercise some control over the learning environment.

Furthermore, providing students with activities that are challenging yet doable, along with a rationale for engaging in various learning activities, can enhance intrinsic motivation for those tasks (Niemiec & Ryan, 2009).

References

Berlyn, S. (1960). Counselor or Clerk? The School Counselor, 7 (4), 84-86.

Bruner, J. S. (1961). The act of discovery. Harvard educational review.

Bruner, J. S. (1962). The conditions of creativity. Paper presented at the Contemporary Approaches to Creative Thinking, 1958, University of Colorado, CO, US; This paper was presented at the aforementioned symposium.

Calder, B. J., & Staw, B. M. (1975). Self-perception of intrinsic and extrinsic motivation. Journal of Personality and Social Psychology, 31 (4), 599.

Condry, J. (1978). The role of incentives in socialization. The hidden costs of reward: new perspectives on the psychology of human motivation, 179-192.

Condry, J., & Chambers, J. (1978). Intrinsic motivation and the process of learning. The hidden costs of reward, 61-84.

Cordova, D. I., & Lepper, M. R. (1996). Intrinsic motivation and the process of learning: Beneficial effects of contextualization, personalization, and choice. Journal of Educational Psychology, 88 (4), 715.

Danner, F. W., & Lonky, E. (1981). A cognitive-developmental approach to the effects of rewards on intrinsic motivation. Child Development, 1043-1052.

Deci, E. L. (1971). Effects of externally mediated rewards on intrinsic motivation. Journal of Personality and Social Psychology, 18 (1), 105.

Deci, E. L., & Ryan, R. M. (1985). The general causality orientations scale: Self-determination in personality. Journal of Research in Personality, 19 (2), 109-134.

Eccles, J., Wigfield, A., Harold, R. D., & Blumenfeld, P. (1993). Age and gender differences in children's self‐and task perceptions during elementary school. Child development, 64(3), 830-847.

Hunt, J. M. (1961). Intelligence and experience.

Kruglanski, A. W., Friedman, I., & Zeevi, G. (1971). The effects of extrinsic incentive on some qualitative aspects of task performance 1. Journal of Personality, 39 (4), 606-617.

Lepper, M. R., Greene, D., & Nisbett, R. E. (1973). Undermining children's intrinsic interest with extrinsic reward: A test of the" overjustification" hypothesis. Journal of Personality and Social Psychology, 28 (1), 129.

Loveland, K. K., & Olley, J. G. (1979). The effect of external reward on interest and quality of task performance in children of high and low intrinsic motivation. Child Development, 1207-1210.

Mitchell, S. E. (2013). Self-determination theory and Oklahoma equestrians: A motivation study: Oklahoma State University.

Niemiec, C. P., & Ryan, R. M. (2009). Autonomy, competence, and relatedness in the classroom: Applying self-determination theory to educational practice. Theory and research in Education, 7 (2), 133-144.

Oudeyer, P.-Y., & Kaplan, F. (2009). What is intrinsic motivation? A typology of computational approaches. Frontiers in Neurorobotics, 1, 6.

Reiss, S. (2004). Multifaceted nature of intrinsic motivation: The theory of 16 basic desires. Review of General Psychology, 8 (3), 179-193.

Reiss, S. (2012). Intrinsic and extrinsic motivation. Teaching of Psychology, 39( 2), 152-156.

Ryan, R. M., & Deci, E. L. (2000). Intrinsic and extrinsic motivations: Classic definitions and new directions. Contemporary Educational Psychology, 25 (1), 54-67.

Sansone, C., & Harackiewicz, J. M. (2000). Intrinsic and extrinsic motivation: The search for optimal motivation and performance: Elsevier.
Sennett, P. (2021). Understanding intrinsic and extrinsic motivation.

Silberman, C. E. (1970). Crisis in the classroom: The remaking of American education.

Skinner, B. F. (2019). The behavior of organisms: An experimental analysis: BF Skinner Foundation.

Stevenson, H., & Stigler, J. W. (1994). Learning gap: Why our schools are failing and what we can learn from Japanese and Chinese educ: Simon and Schuster.

Stevenson, H. W., Chen, C., & Lee, S.-Y. (1993). Mathematics achievement of Chinese, Japanese, and American children: Ten years later. Science, 53-58.

Thorndike, L., & Bruce, D. (2017). Animal intelligence: Experimental studies: Routledge.

White, R. W. (1959). Motivation reconsidered: the concept of competence. Psychological Review, 66 (5), 297.

Winett, R. A., & Winkler, R. C. (1972). Current behavior modification in the classroom: Be still, be quiet, be docile. Journal of Applied Behavior Analysis, 5 (4), 499-504.

Further Reading

# data[].attributes.attachment_link.title
Extrinsic vs. Intrinsic Motivation: What's the Difference?

# data[].attributes.attachment_link.description
Scholars have described several key differences between intrinsic and extrinsic motivation (Mitchell, 2013):

# data[].attributes.body
this article defines productivity in the context of management and control, including the importance of assessing and managing productivity in the control process

# data[].attributes.attachment_link.readable_text
As the world adapts to new normal in living and working, improving productivity is the biggest challenge organizations are facing worldwide. The hybrid work model and an ever-evolving company tech stack have made it hard for employers to manage employee productivity during the pandemic. Productivity Management can help individuals and teams improve productivity. In this article we will discuss Productivity Management, why it is important, and effective tips to help you create a successful productivity management system.

Your journey to becoming a PMP certified is easy with Simplilearn's PMP Certification. Get started by enrolling now.

As the world adapts to new normal in living and working, improving productivity is the biggest challenge organizations face worldwide. The hybrid work model and an ever-evolving company tech stack are making it harder for employers to maintain employee productivity. This is where productivity management comes in.

In this blog, we will talk about the basics of productivity management, why it is important, and practical tips to help you create a successful productivity management system.

What Is Productivity Management?

Productivity management is an organizational setup or framework that helps individuals and teams improve productivity. Productivity measures how efficiently an organization or its employees convert inputs, like labor and capital, into outputs, like goods or services. Managers use goals, incentives, development, and communication strategies to enhance employee performance and help them increase their productivity.

This productivity maximizes the business' gains either directly - through improved productivity and quality - or indirectly - by retaining the best talents, upskilling them, and providing additional responsibilities.

Well-managed teams come out with increased productivity. On the other hand, poor productivity management can be one of the biggest reasons for lackluster employee performance and engagement.

How Does Management Affect Productivity?

Studies show that good management can significantly boost productivity, increase market value and growth, as well as the ability to withstand adverse situations like a recession. The action of managers and the enterprise can decisively influence the realization of productivity of the business.

Managers play a vital role in improving and maintaining productivity levels in their teams. A Gallup study points out that as much as 70% of the variance in employee engagement can be attributed to management. A good manager will have a clear understanding of the skill levels of each team member, their strengths and weaknesses, and work with them to ensure the best output from each of them. Managers also consider teams. Stress levels and mental well-being and extends support when needed.

Importance of Productivity in the Workplace

Highly productive employees help a company achieve its goals. Productivity boosts morale and creates a company culture of excellence, resulting in an improved workplace environment.

When a company is highly productive and successful, incentives like pay hikes, bonuses, medical insurance, etc., are made available to the employees. It motivates employees and advances their careers as the company flourishes.

For every company, productivity in the workplace is an essential aspect that the top management must understand in order to enjoy success.

Productivity Working From Home (WFH)

Studies by Upwork show that productivity in WFH is higher than in working from an office. On average, employees who work from home save 10 minutes less on non-productive tasks and are nearly 47% more productive than those working in the office. Plus, they are more consistent, work for more hours, and manage to get more done. With the world discovering alternate ways of remote working, productivity can actually be better working from home.

Benefits of Increased Productivity

Following are the benefits that can be derived from increased productivity:

1. Effective utilization of resources results in increased production volume and lesser cost of production.

2. Reduced time-to-market, better quality assured

3. Less overhead costs

4. More profits to stakeholders

5. Higher per capita income generated

6. Helps achieve overall growth and prosperity of the business

How Can You Manage Your Team's Productivity in the Workplace?

It's never easy leading a team in the workplace. However, if handled tactfully, you can make your team accomplish significant goals and take their productivity to a whole new level.

As a leader, you need to give your teammates enough opportunity to grow, make mistakes and learn. Encourage them to work in unison towards a common goal.

Practical Tips for Improving Team Productivity

Let's discuss how to empower your teams to be more productive:

Give Ownership to Team Members

Let your team members make their own decisions and make them accountable for their work. This instills a sense of responsibility in employees regarding work, making them aware that their decisions can affect the performance of the entire team. Your trust can help build your team members' self-esteem.

Make Proper Communication

One of the key factors that improve team productivity is effective communication must prevail in a team. Communication helps team members understand their responsibilities and reduces the chances of confusion within the team, which can affect overall productivity.

Identify the Strengths and Weaknesses of Your Team

As a manager, you have to know the knowledge, skillsets, and talents of teammates to allocate tasks accordingly. Making each member use their strengths will improve workplace productivity significantly.

Use Project Management Tools

Numerous project management software are available that play an essential role in boosting teamwork and productivity. Selecting the right project management tool can help effective work management and increase collaboration between teammates.

Reward Your Employees

Employees work best when their efforts are appreciated and they are given incentives. Implement incentive programs in the form of cash, free vouchers, lunch-outs, paid holidays, etc., to keep your employees motivated.

Give Constructive Feedback

Introduce performance review and constructive feedback process in the team. There's no way employee efficiency will improve if the employees do not know they are being inefficient in the first place. Hence, constructive feedback is essential to improve team productivity.

How to Create a Successful Productivity Management System

Many managers find difficulty defining job responsibilities, leaving employees with vague ideas about what's expected of them and how to be most productive. To get an accurate measure of your team's efforts, you need to look at various factors in addition to time and effort.

Consider focusing on the following:

Quality

Whether your employees produce tangible or intangible assets, align their work with performance metrics so that there's a distinct way to assess their work quality.

Impact on the Organization

Some projects might not have any particular metrics; however, they produce intangible results that positively impact your company. These impacts can be an improvement in employee engagement, helping other employees work better, and improving public awareness of your company.

Insights Gained

Often, the failure of a project can yield unexpected insights that your team can utilize to make rectifications in their approach as they move ahead. These kinds of failures should be considered productive in helping your team reach its goal of producing innovative work.

Types of Errors Made

Mistakes can deter progress. However, instead of being judgmental, you should assess whether the teammate made mistakes out of being careless or dealing with a complex task where they could not clearly figure out what was the right thing to do. Reprimand your employee if it is the former, especially if the mistake's repeated. But, if not, discuss the decision-making process with your team and help them come up with ideas to avoid similar situations in the future.

How Independently They Worked

Everyone's time in the organization is valuable. If an employee keeps on asking questions and seeking detailed feedback before making any constructive effort to solve their problems themselves that can negatively affect others productivity.

Consider each of these factors and other relevant ones to create a performance evaluation sheet of your teammates where you can assign a point value to each factor. Assign weights to each factor depending on its priority level. Find each employee's productivity score by applying the weight of the point for each metric; this will reflect your company objectives.

Choose the Right Program

Level up your project management skills with Simplilearn's comprehensive courses. Gain practical knowledge, industry insights, and globally recognized certifications. Take charge of your career and achieve project success with Simplilearn!

Program Name

Geo

All Geos

All Geos

All Geos

University

PMI

Simplilearn

University of Massachusetts Amherst

Course Duration

90 Days of Flexible Access to Online Classes

36 Months

6 Months

Coding experience reqd

No

No

No

Skills you wll learn

8+ PM skills including Work Breakdown Structure, Gantt Charts, Resource Allocation, Leadership and more.

6 courses including Project Management, Agile Scrum Master, Implementing a PMO, and More

9+ skills including
Project Management, Quality Management, Agile Management, Design Thinking and More.

Additional Benefits

Experiential learning through case studies
Global Teaching Assistance
35PDUs

Learn by working on real-world problems
24x7 Learning support from mentors

Earn 60+ PDU's
3 year course access

Cost

$$

$$$$

$$$$

Explore Program Explore Program Explore Program

Conclusion

Productivity management can be your key to driving business success and result-driven goals. When done well, it can bring incredible benefits to your organization. Understanding productivity is an integral part of project management. Learn how you can easily improve your company's productivity with Simplilearn's PGP in Project Management. This program will help you boost your career to the next level by understanding the key principles of project management, productivity management, and how you can help your company become more efficient.

What Is Productivity Management?

Productivity management is an organizational setup or framework that helps individuals and teams improve productivity. Productivity measures how efficiently an organization or its employees convert inputs, like labor and capital, into outputs, like goods or services. Managers use goals, incentives, development, and communication strategies to enhance employee performance and help them increase their productivity.

This productivity maximizes the business' gains either directly - through improved productivity and quality - or indirectly - by retaining the best talents, upskilling them, and providing additional responsibilities.

Well-managed teams come out with increased productivity. On the other hand, poor productivity management can be one of the biggest reasons for lackluster employee performance and engagement.

How Does Management Affect Productivity?

Studies show that good management can significantly boost productivity, increase market value and growth, as well as the ability to withstand adverse situations like a recession. The action of managers and the enterprise can decisively influence the realization of productivity of the business.

Managers play a vital role in improving and maintaining productivity levels in their teams. A Gallup study points out that as much as 70% of the variance in employee engagement can be attributed to management. A good manager will have a clear understanding of the skill levels of each team member, their strengths and weaknesses, and work with them to ensure the best output from each of them. Managers also consider teams. Stress levels and mental well-being and extends support when needed.

Importance of Productivity in the Workplace

Highly productive employees help a company achieve its goals. Productivity boosts morale and creates a company culture of excellence, resulting in an improved workplace environment.

When a company is highly productive and successful, incentives like pay hikes, bonuses, medical insurance, etc., are made available to the employees. It motivates employees and advances their careers as the company flourishes.

For every company, productivity in the workplace is an essential aspect that the top management must understand in order to enjoy success.

Productivity Working From Home (WFH)

Studies by Upwork show that productivity in WFH is higher than in working from an office. On average, employees who work from home save 10 minutes less on non-productive tasks and are nearly 47% more productive than those working in the office. Plus, they are more consistent, work for more hours, and manage to get more done. With the world discovering alternate ways of remote working, productivity can actually be better working from home.

Benefits of Increased Productivity

Following are the benefits that can be derived from increased productivity:

1. Effective utilization of resources results in increased production volume and lesser cost of production.

2. Reduced time-to-market, better quality assured

3. Less overhead costs

4. More profits to stakeholders

5. Higher per capita income generated

6. Helps achieve overall growth and prosperity of the business

How Can You Manage Your Team's Productivity in the Workplace?

It's never easy leading a team in the workplace. However, if handled tactfully, you can make your team accomplish significant goals and take their productivity to a whole new level.

As a leader, you need to give your teammates enough opportunity to grow, make mistakes and learn. Encourage them to work in unison towards a common goal.

Practical Tips for Improving Team Productivity

Let's discuss how to empower your teams to be more productive:

Give Ownership to Team Members

Let your team members make their own decisions and make them accountable for their work. This instills a sense of responsibility in employees regarding work, making them aware that their decisions can affect the performance of the entire team. Your trust can help build your team members' self-esteem.

Make Proper Communication

One of the key factors that improve team productivity is effective communication must prevail in a team. Communication helps team members understand their responsibilities and reduces the chances of confusion within the team, which can affect overall productivity.

Identify the Strengths and Weaknesses of Your Team

As a manager, you have to know the knowledge, skillsets, and talents of teammates to allocate tasks accordingly. Making each member use their strengths will improve workplace productivity significantly.

Use Project Management Tools

Numerous project management software are available that play an essential role in boosting teamwork and productivity. Selecting the right project management tool can help effective work management and increase collaboration between teammates.

Reward Your Employees

Employees work best when their efforts are appreciated and they are given incentives. Implement incentive programs in the form of cash, free vouchers, lunch-outs, paid holidays, etc., to keep your employees motivated.

Give Constructive Feedback

Introduce performance review and constructive feedback process in the team. There's no way employee efficiency will improve if the employees do not know they are being inefficient in the first place. Hence, constructive feedback is essential to improve team productivity.

How to Create a Successful Productivity Management System

Many managers find difficulty defining job responsibilities, leaving employees with vague ideas about what's expected of them and how to be most productive. To get an accurate measure of your team's efforts, you need to look at various factors in addition to time and effort.

Consider focusing on the following:

Quality

Whether your employees produce tangible or intangible assets, align their work with performance metrics so that there's a distinct way to assess their work quality.

Impact on the Organization

Some projects might not have any particular metrics; however, they produce intangible results that positively impact your company. These impacts can be an improvement in employee engagement, helping other employees work better, and improving public awareness of your company.

Insights Gained

Often, the failure of a project can yield unexpected insights that your team can utilize to make rectifications in their approach as they move ahead. These kinds of failures should be considered productive in helping your team reach its goal of producing innovative work.

Types of Errors Made

Mistakes can deter progress. However, instead of being judgmental, you should assess whether the teammate made mistakes out of being careless or dealing with a complex task where they could not clearly figure out what was the right thing to do. Reprimand your employee if it is the former, especially if the mistake's repeated. But, if not, discuss the decision-making process with your team and help them come up with ideas to avoid similar situations in the future.

How Independently They Worked

Everyone's time in the organization is valuable. If an employee keeps on asking questions and seeking detailed feedback before making any constructive effort to solve their problems themselves that can negatively affect others productivity.

Consider each of these factors and other relevant ones to create a performance evaluation sheet of your teammates where you can assign a point value to each factor. Assign weights to each factor depending on its priority level. Find each employee's productivity score by applying the weight of the point for each metric; this will reflect your company objectives.

Choose the Right Program

Level up your project management skills with Simplilearn's comprehensive courses. Gain practical knowledge, industry insights, and globally recognized certifications. Take charge of your career and achieve project success with Simplilearn!

University

PMI

Simplilearn

University of Massachusetts Amherst

Course Duration

90 Days of Flexible Access to Online Classes

36 Months

6 Months

Skills you wll learn

8+ PM skills including Work Breakdown Structure, Gantt Charts, Resource Allocation, Leadership and more.

6 courses including Project Management, Agile Scrum Master, Implementing a PMO, and More

9+ skills including
Project Management, Quality Management, Agile Management, Design Thinking and More.

Additional Benefits

Experiential learning through case studies
Global Teaching Assistance
35PDUs

Learn by working on real-world problems
24x7 Learning support from mentors

Earn 60+ PDU's
3 year course access

Conclusion

Productivity management can be your key to driving business success and result-driven goals. When done well, it can bring incredible benefits to your organization. Understanding productivity is an integral part of project management. Learn how you can easily improve your company's productivity with Simplilearn's PGP in Project Management. This program will help you boost your career to the next level by understanding the key principles of project management, productivity management, and how you can help your company become more efficient.

# data[].attributes.attachment_link.title
What Is Productivity Management and Why Is It Important in 2023? | Simplilearn

# data[].attributes.attachment_link.description
In this blog, we will talk about the basics of productivity management, why it is important, and practical tips to help you create a successful productivity management system.

# data[].attributes.body
this article identifies varying levels of control utilized by organizations, including strategic, tactical, and operational strategy