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Operation control tools

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To be a successful operations manager, you need to be equipped with the right tools to ensure a business can operate optimally through optimal operations management.

In this short video Lerisa Roberts, Head Tutor for the UCT Operations Management online short course, explains what tools are at your disposal in the field of operations management.

Operations management tools are vital to good performance as an operations manager. Every organisation has different needs, and every situation varies from one instance to another, so a wealth of different tools is required in order to run your operations management as smoothly as possible.

A wealth of different tools is required in order to run your operations management as smoothly as... Click To Tweet

Two such examples of those different situations are:

Focusing on improvement in operations management

Tools such as Six Sigma or DMAIC (Define, Measure, Analyze, Improve, and Control) are used to overhaul and improve operations within an entire organisation. These are often implemented by operations managers to eliminate errors and defects, reduce cost, and save time in order to make a company, and its operations management, as efficient as possible.

Focusing on streamlining supply chains in operations management

Shipping Status tools, Order Processing tools, Warehouse Management tools and Demand Forecast tools are just some examples of the various tools that could be used to better manage a supply chain. The great variety of tools within supply chain management alone is evidence of the fact that there is no shortlist of tools that every operations manager needs to be familiar with.

You'll uncover a host of similar tools and techniques if you commit yourself to online operations management courses.

Make sure you're ready to identify and use the correct operations management tools for any situation

Study the UCT Operations Management online short course today
FIND OUT MORE
Transcription It really isn't as straightforward as that, operations management is an incredibly broad field, with an equally broad range of tools at your disposal. There are tools focused on improvement, such as 'Six Sigma' for example, and tools more focused on streamlining supply chains. It really depends on the specific organisation and the task at hand.

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What Are Common Operations Management Tools? | FAQs

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To be a successful operations manager, you need to be equipped with the right tools to ensure a business can operate optimally through optimal operations management. In this short video Lerisa Roberts, Head Tutor for the UCT Operations Management online short course, explains what tools are at your disposal in the field of operations management.

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productivity

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Information Maintenance

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Controlling

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Essays, Research Papers and Articles on Business Management

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Some of the essential steps of controlling process as studied under Business Management are : 1. Setting Performance Standards 2. Measurement of Actual Performance 3. Comparing Actual Performance with Standards 4. Analysing Deviations 5. Taking Corrective Action.
Controlling Process consists of following systematic steps:
1. Setting Performance Standards:

The first step in the process of controlling is concerned with setting performance standards. These standards are the basis for measuring the actual performance.

Thus, standards act as a lighthouse that warns & guides the ships at sea. Standards are the benchmarks towards which efforts of entire organisation are directed. These standards can be expressed both in quantitative and qualitative terms.
Examples of Quantitative Standards:
(a) Revenue to be earned.

(b) Units to be produced and sold.

(c) Cost to be incurred.

(d) Time to be spent in performing a task.

(e) Amount of inventories to be maintained etc.
Examples of Qualitative Standards:
(a) Improving motivation level of employees.

(b) Improving labour relations.

(c) Improving quality of products.

(d) Improving goodwill etc.

In order to facilitate easy comparison of actual performance with the standards, a manager should try to set these standards in quantitative terms as far as possible. However, in case of qualitative standards, effort should be made to define these standards in such a way that comparison becomes easily understandable.

For example, for improving customer satisfaction in a restaurant having self service, standard can be set in terms of time taken to get a table, place the order and collect the order. Moreover, the standards set should be flexible enough so that necessary changes can be made according to varying situations.

2. Measurement of Actual Performance:

Once the standards have been determined, the next step is to measure the actual performance. The various techniques for measuring are sample checking, performance reports, personal observation etc. However, in order to facilitate easy comparison, the performance should be measured on same basis that the standards have.
Following are some of the ways for measuring performance:
(a) Superior prepares a report regarding the performance of an employee.

(b) Various ratios like gross profit ratio, debtor turnover ratio, return on investment, current ratio etc. are calculated at periodic intervals to measure company's performance.

(c) Progress made in areas like marketing can be measured by considering the number of units, increase in market share etc.

(d) In small organisations, each unit produced can be checked personally to ensure the quality standards.

(e) In large organisation, the technique of sample checking is used. Under this technique, some pieces are checked at random for quality specifications.

3. Comparing Actual Performance with Standards:

This step involves comparing the actual performance with standards laid down in order to find the deviations. For example, performance of a salesman in terms of unit sold in a week can be easily measured against the standard output for the week.

4. Analysing Deviations:

Some deviations are possible in all the activities. However, the deviation in the important areas of business needs to be corrected more urgently as compared to deviation in insignificant areas. Management should use critical point control and management by exception in such areas.
(a) Critical Point Control:
Since it is neither easy nor economical to check each and every activity in an organisation, the control should focus on Key Result Areas (KRAs) which act as the critical points. The KRAs are very essential for the success of an organisation. Therefore, the entire organisation has to suffer if anything goes wrong at these points. For example, in a manufacturing organisation, an increase of 7% in labour cost is more troublesome than an 18% increase in stationary expenses.
(b) Management by Exception:
Management by exception or control by exception is an important principle of management control. According to this principle, an attempt to control everything results in controlling nothing. Thus only the important deviations which exceed the prescribed limit should be brought to the notice of management. Thus, if plans provide for 3% increase in labour cost, deviations beyond 3% alone should be brought to the notice of the management.
Advantages of Critical Point Control and Management by Exception are as follows:
(i) Since managers deal only with important deviations, it results in saving time and efforts.

(ii) It helps in identifying important deviations which need timely action to keep the organisation at the correct path.

(iii) By handing over the routine problems to the subordinates, management by exception facilitates delegation of authority and helps in increasing morale of employees.

(iv) It ensures better utilization of managerial expertise by focusing managerial attention only on important areas.

After identifying the deviations, various causes for these deviations are analyzed. The main causes can be structural drawbacks, shortage of resources, environmental factors beyond organisational control, unrealistic standards, defective process etc. Exact cause or causes of deviation must be identified correctly in order to take effective corrective measures.

5. Taking Corrective Action:

The last step in the process of controlling involves taking corrective action. If the deviations are within acceptable limits, no corrective measure is required. However, if the deviations exceed acceptable limits, they should be immediately brought to the notice of the management for taking corrective measures, especially in the important areas.
Following are some of the examples of corrective action:

Causes of Deviation Corrective action to be taken

(i) Obsolete Machinery

Technological Upgradation of machinery

(ii) Defective Process manufacturing process.

Change the specification standards for the

(iii) Defective Material used.

Change the quality standards for material

(iv) Defective physical conditions of work.

Improvement in physical conditions of work.

(v) Defective machinery.

Repair the existing machine or purchase new machine if it cannot be repaired.

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Controlling Process in Business Management (5 Steps)

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Some of the essential steps of controlling process as studied under Business Management are : 1. Setting Performance Standards 2. Measurement of Actual Performance 3. Comparing Actual Performance with Standards 4. Analysing Deviations 5. Taking Corrective Action. Controlling Process consists of following systematic steps: 1.

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Behavior modification

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Use of motivational tools directly impacts work culture.

Digital Vision./Digital Vision/Getty Images

A rudimentary definition of behavior modification is encouraging others to behave the way you want, while discouraging the kind of behavior you don't want. The workplace is the ideal setting to examine behavior modification because it occurs in practically all workplace interactions, whether employee-employee relationships, manager-employee relationships or employer-employee relationships. Behavior modification in the workplace is ideal for it produces more satisfied workers and increases employers' profitability.

Corrective Action

Most companies have some form of disciplinary review process. Whether it's referred to as a progressive discipline policy, employee coaching or constructive feedback, the desired outcomes are the same: fewer employee issues and better job performance. Workplace policies constitute the first step in behavior modification. Most employee handbooks contain a description of the company's disciplinary policy and a set of guidelines, rules and policies to which the company expects employees to adhere. The consequences of behavior that runs afoul of company policy is explained in the handbook as well as in corrective action that supervisors carry out when they observe poor workplace behavior or poor job performance. Although too many workplace disciplinary policies perpetuate an adult-child relationship where an adult-adult relationship should exist instead, the end result is that discipline in the workplace modifies employee behavior.

Positive Reinforcement

The practice of positive reinforcement in the workplace -- also called the "carrot principle" -- is a form of behavior modification that rewards employees for strong job performance, embracing the workplace philosophy and, essentially, creating a more profitable and successful business. Employers who practice this form of behavior modification generally reward employees with monetary and non-monetary recognition. Positive reinforcement supported by non-monetary employee recognition in the form of job promotions or plum assignments is one of the most effective forms of motivation, according to management consultant and professor Frederick W. Herzberg. Herzberg's two-factor theory concerning workplace hygiene-motivation factors is actually a form of behavior modification. Employee recognition begets motivation which, in turn, is a form of positive reinforcement.

Expectancy Theory

Expectancy theory in the workplace is yet another form of behavior modification, albeit a complex form. According to Yale professor Victor Vroom's expectancy theory, employees engage in certain behavior because it produces a desirable outcome for employees, based on the three components of expectancy theory: "expectancy, instrumentality and valance." For example, an employee may maintain perfect attendance because she expects some form of reward. The instrumentality is that her employer promises that employees with perfect attendance will receive a reward. Valance, the final component, refers to the type of reward the employee receives, such as a gift card, a choice parking space or some other token of appreciation in addition to acknowledgment for her achievement. Nevermind that coming to work every day actually should be an expectation and not the basis for reward, expectancy theory in its truest form underlies behavior modification.

Compensation and Benefits

According to a study of more than 19,000 exit interviews conducted between 1999 and 2003, California's Saratoga Institute discovered that employees don't always cite compensation and benefits as the reasons they resign. They typically leave their jobs because of dissatisfaction that's based on workplace factors such as communication, ineffective leadership and lack of advancement opportunities. Nevertheless, compensation can be an effective form of behavior modification when employers connect performance to compensation in the form of salary and wage increases. Strong performance rewarded with annual raises and year-end bonuses are forms of behavior modification strengthened by an employer's compensation structure.

About the Author

Ruth Mayhew has been writing since the mid-1980s, and she has been an HR subject matter expert since 1995. Her work appears in "The Multi-Generational Workforce in the Health Care Industry," and she has been cited in numerous publications, including journals and textbooks that focus on human resources management practices. She holds a Master of Arts in sociology from the University of Missouri-Kansas City. Ruth resides in the nation's capital, Washington, D.C.

Photo Credits

Digital Vision./Digital Vision/Getty Images

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Advantages in Using Behavior Modification in the Workplace

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A rudimentary definition of behavior modification is encouraging others to behave the way you want, while discouraging the kind of behavior you don't want. The workplace is the ideal setting to examine behavior modification because it occurs in practically all workplace interactions, whether employee-employee ...

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Theories of motivation

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Some of the most important theories of motivation are as follows: 1. Maslow's Need Hierarchy Theory 2. Herzberg's Motivation Hygiene Theory 3. McClelland's Need Theory 4. McGregor's Participation Theory 5. Urwick's Theory Z 6. Argyris's Theory 7. Vroom's Expectancy Theory 8. Porter and Lawler's Expectancy Theory.

From the very beginning, when the human organisations were established, various thinkers have tried to find out the answer to what motivates people to work. Different approaches applied by them have resulted in a number of theories concerning motivation.

These are discussed in brief in that order.

It is probably safe to say that the most well-known theory of motivation is Maslow's need hierarchy theory Maslow's theory is based on the human needs. Drawing chiefly on his clinical experience, he classified all human needs into a hierarchical manner from the lower to the higher order.

In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man. Maslow identified five levels in his need hierarchy as shown in figure 17.2.

These are now discussed one by one:

1. Physiological Needs:

These needs are basic to human life and, hence, include food, clothing, shelter, air, water and necessities of life. These needs relate to the survival and maintenance of human life. They exert tremendous influence on human behaviour. These needs are to be met first at least partly before higher level needs emerge. Once physiological needs are satisfied, they no longer motivate the man.

2. Safety Needs:

After satisfying the physiological needs, the next needs felt are called safety and security needs. These needs find expression in such desires as economic security and protection from physical dangers. Meeting these needs requires more money and, hence, the individual is prompted to work more. Like physiological needs, these become inactive once they are satisfied.

3. Social Needs:

Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness, etc. It is this socialising and belongingness why individuals prefer to work in groups and especially older people go to work.

4. Esteem Needs:

These needs refer to self-esteem and self-respect. They include such needs which indicate self-confidence, achievement, competence, knowledge and independence. The fulfillment of esteem needs leads to self-confidence, strength and capability of being useful in the organisation. However, inability to fulfill these needs results in feeling like inferiority, weakness and helplessness.

5. Self-Actualisation Needs:

This level represents the culmination of all the lower, intermediate, and higher needs of human beings. In other words, the final step under the need hierarchy model is the need for self-actualization. This refers to fulfillment.

The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good at. In effect, self- actualization is the person's motivation to transform perception of self into reality.

According to Maslow, the human needs follow a definite sequence of domination. The second need does not arise until the first is reasonably satisfied, and the third need does not emerge until the first two needs have been reasonably satisfied and it goes on. The other side of the need hierarchy is that human needs are unlimited. However, Maslow's need hierarchy-theory is not without its detractors.

The main criticisms of the theory include the following:

1. The needs may or may not follow a definite hierarchical order. So to say, there may be overlapping in need hierarchy. For example, even if safety need is not satisfied, the social need may emerge.

2. The need priority model may not apply at all times in all places.

3. Researches show that man's behaviour at any time is mostly guided by multiplicity of behaviour. Hence, Maslow's preposition that one need is satisfied at one time is also of doubtful validity.

4. In case of some people, the level of motivation may be permanently lower. For example, a person suffering from chronic unemployment may remain satisfied for the rest of his life if only he/she can get enough food.

Notwithstanding, Maslow's need hierarchy theory has received wide recognition, particularly among practicing managers. This can be attributed to the theory's intuitive logic and easy to understand. One researcher came to the conclusion that theories that are intuitively strong die hard'.

The psychologist Frederick Herzberg extended the work of Maslow and propsed a new motivation theory popularly known as Herzberg's Motivation Hygiene (Two-Factor) Theory. Herzberg conducted a widely reported motivational study on 200 accountants and engineers employed by firms in and around Western Pennsylvania.

He asked these people to describe two important incidents at their jobs:

(1) When did you feel particularly good about your job, and

(2) When did you feel exceptionally bad about your job? He used the critical incident method of obtaining data.

The responses when analysed were found quite interesting and fairly consistent. The replies respondents gave when they felt good about their jobs were significantly different from the replies given when they felt bad. Reported good feelings were generally associated with job satisfaction, whereas bad feeling with job dissatisfaction. Herzberg labelled the job satisfiers motivators, and he called job dissatisfies hygiene or maintenance factors. Taken together, the motivators and hygiene factors have become known as Herzberg's two-factor theory of motivation

Herzberg's motivational and hygiene factors have been shown in the Table 17.1

According to Herzberg, the opposite of satisfaction is not dissatisfaction. The underlying reason, he says, is that removal of dissatisfying characteristics from a job does not necessarily make the job satisfying. He believes in the existence of a dual continuum. The opposite of 'satisfaction' is 'no satisfaction' and the opposite of 'dissatisfaction' is 'no dissatisatisfaction'.

According to Herzberg, today's motivators are tomorrow's hygiene because the latter stop influencing the behaviour of persons when they get them. Accordingly, one's hygiene may be the motivator of another.

However, Herzberg's model is labeled with the following criticism also:

1. People generally tend to take credit themselves when things go well. They blame failure on the external environment.

2. The theory basically explains job satisfaction, not motivation.

3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a person may dislike part of his/ her job, still thinks the job acceptable.

4. This theory neglects situational variable to motivate an individual.

Because of its ubiquitous nature, salary commonly shows up as a motivator as well as hygine.

Regardless of criticism, Herzberg's 'two-factor motivation theory' has been widely read and a few managers seem untaminar with his recommendations. The main use of his recommendations lies in planning and controlling of employees work.

Another well-known need-based theory of motivation, as opposed to hierarchy of needs of satisfaction-dissatisfaction, is the theory developed by McClelland and his associates'. McClelland developed his theory based on Henry Murray's developed long list of motives and manifest needs used in his early studies of personality. McClelland's need-theory is closely associated with learning theory, because he believed that needs are learned or acquired by the kinds of events people experienced in their environment and culture.

He found that people who acquire a particular need behave differently from those who do not have. His theory focuses on Murray's three needs; achievement, power and affiliation. In the literature, these three needs are abbreviated "n Ach", "n Pow", and "n Aff" respectively'.

They are defined as follows:

Need for Achievement:

This is the drive to excel, to achieve in relation to a set of standard, and to strive to succeed. In other words, need for achievement is a behaviour directed toward competition with a standard of excellence. McClelland found that people with a high need for achievement perform better than those with a moderate or low need for achievement, and noted regional / national differences in achievement motivation.

Through his research, McClelland identified the following three characteristics of high-need achievers:

1. High-need achievers have a strong desire to assume personal responsibility for performing a task for finding a solution to a problem.

2. High-need achievers tend to set moderately difficult goals and take calculated risks.

3. High-need achievers have a strong desire for performance feedback.

Need for Power:

The need for power is concerned with making an impact on others, the desire to influence others, the urge to change people, and the desire to make a difference in life. People with a high need for power are people who like to be in control of people and events. This results in ultimate satisfaction to man.

People who have a high need for power are characterized by:

1. A desire to influence and direct somebody else.

2. A desire to exercise control over others.

3. A concern for maintaining leader-follower relations.

Need for Affiliation:

The need for affiliation is defined as a desire to establish and maintain friendly and warm relations with other people'. The need for affiliation, in many ways, is similar to Maslow's social needs.

The people with high need for affiliation have these characteristics:

1. They have a strong desire for acceptance and approval from others.

2. They tend to conform to the wishes of those people whose friendship and companionship they value.

3. They value the feelings of others.

Figure 17.2 is a summary chart of the three need theories of motivation just discussed. The chart shows the parallel relationship between the needs in each of the theories. Maslow refers to higher- lower order needs, whereas Herzberg refers to motivation and hygiene factors.

Douglas McGregor formulated two distinct views of human being based on participation of workers. The first basically negative, labeled Theory X, and the other basically positive, labled Theory Y.

Theory X is based on the following assumptions:

1. People are by nature indolent. That is, they like to work as little as possible.

2. People lack ambition, dislike responsibility, and prefer to be directed by others.

3. People are inherently self-centered and indifferent to organisational needs and goals.

4. People are generally gullible and not very sharp and bright.

On the contrary, Theory Y assumes that:

1. People are not by nature passive or resistant to organisational goals.

2. They want to assume responsibility.

3. They want their organisation to succeed.

4. People are capable of directing their own behaviour.

5. They have need for achievement.

What McGregor tried to dramatise through his theory X and Y is to outline the extremes to draw the fencing within which the organisational man is usually seen to behave. The fact remains that no organisational man would actually belong either to theory X or theory Y. In reality, he/she shares the traits of both. What actually happens is that man swings from one set or properties to the other with changes in his mood and motives in changing .environment.

Much after the propositions of theories X and Y by McGregor, the three theorists Urwick, Rangnekar, and Ouchi-propounded the third theory lebeled as Z theory.

The two propositions in Urwicks's theory are that:

(i) Each individual should know the organisational goals precisely and the amount of contribution through his efforts towards these goals.

(ii) Each individual should also know that the relation of organisational goals is going to satisfy his/her needs positively.

In Urwick's view, the above two make people ready to behave positively to accomplish both organisational and individual goals.

However, Ouchi's Theory Z has attracted the lot of attention of management practitioners as well as researchers. It must be noted that Z does not stand for anything, is merely the last alphabet in the English Language.

Theory Z is based on the following four postulates:

1. Strong Bond between Organisation and Employees

2. Employee Participation and Involvement

3. No Formal Organisation Structure

4. Human Resource Development

Ouchi's Theory Z represents the adoption of Japanese management practices (group decision making, social cohesion, job security, holistic concern for employees, etc.)by the American companies. In India, Maruti-Suzuki, Hero-Honda, etc., apply the postulates of theory Z.

Argyris has developed his motivation theory based on proposition how management practices affect the individual behaviour and growth In his view, the seven changes taking place in an individual personality make him/her a mature one. In other words, personality of individual develops

Argyris views that immaturity exists in individuals mainly because of organisational setting and management practices such as task specialisation, chain of command, unity of direction, and span of management. In order to make individuals grow mature, he proposes gradual shift from the existing pyramidal organisation structure to humanistic system; from existing management system to the more flexible and participative management.

He states that such situation will satisfy not only their physiological and safety needs, but also will motivate them to make ready to make more use of their physiological and safety needs. But also will motivate them to make ready to make more use of their potential in accomplishing organisational goals.

One of the most widely accepted explanations of motivation is offered by Victor Vroom in his Expectancy Theory" It is a cognitive process theory of motivation. The theory is founded on the basic notions that people will be motivated to exert a high level of effort when they believe there are relationships between the effort they put forth, the performance they achieve, and the outcomes/ rewards they receive.

The relationships between notions of effort, performance, and reward are depicted in Figure 17.3

Thus, the key constructs in the expectancy theory of motivation are:

1. Valence:

Valence, according to Vroom, means the value or strength one places on a particular outcome or reward.

2. Expectancy:

It relates efforts to performance.

3. Instrumentality:

By instrumentality, Vroom means, the belief that performance is related to rewards.

Thus, Vroom's motivation can also be expressed in the form of an equation as follows: Motivation = Valence x Expectancy x Instrumentality

Being the model multiplicative in nature, all the three variables must have high positive values to imply motivated performance choice. If any one of the variables approaches to zero level, the possibility of the so motivated performance also touches zero level.

However, Vroom's expectancy theory has its critics. The important ones are:

1. Critics like Porter and Lawler lebeled it as a theory of cognitive hedonism which proposes that individual cognitively chooses the course of action that leads to the greatest degree of pleasure or the smallest degree of pain.

2. The assumption that people are rational and calculating makes the theory idealistic.

3. The expectancy theory does not describe individual and situational differences.

But the valence or value people place on various rewards varies. For example, one employee prefers salary to benefits, whereas another person prefers to just the reverse. The valence for the same reward varies from situation to situation.

In spite of all these critics, the greatest point in me expectancy theory is that it explains why significant segment of workforce exerts low levels of efforts in carrying out job responsibilities.

In fact, Porter and Lawler's theory is an improvement over Vroom's expectancy theory. They posit that motivation does not equal satisfaction or performance. The model suggested by them encounters some of the simplistic traditional assumptions made about the positive relationship between satisfaction and performance. They proposed a multi-variate model to explain the complex relationship that exists between satisfaction and performance.

What is the main point in Porter and Lawler's model is that effort or motivation does not lead directly to performance. It is intact, mediated by abilities and traits and by role perceptions. Ultimately, performance leads to satisfaction,. The same is depicted in the following Fig 17.4.

There are three main elements in this model. Let us briefly discuss these one by one.

Effort:

Effort refers to the amount of energy an employee exerts on a given task. How much effort an employee will put in a task is determined by two factors-

(i) Value of reward and

(ii) Perception of effort-reward probability.

Performance:

One's effort leads to his/her performance. Both may be equal or may not be. However the amount of performance is determined by the amount of labour and the ability and role perception of the employee. Thus, if an employee possesses less ability and/or makes wrong role perception, his/her performance may be low in spite of his putting in great efforts.

Satisfaction:

Performance leads to satisfaction. The level of satisfaction depends upon the amount of rewards one achieves. If the amount of actual rewards meet or exceed perceived equitable rewards, the employee will feel satisfied. On the country, if actual rewards fall short of perceived ones, he/she will be dissatisfied.

Rewards may be of two kinds-intrinsic and extrinsic rewards. Examples of intrinsic rewards are such as sense of accomplishment and self-actualisation. As regards extrinsic rewards, these may include working conditions and status. A fair degree of research support that, the intrinsic rewards are much more likely to produce attitudes about satisfaction that are related to performance.

There is no denying of the fact that the motivation model proposed by Porter and Lawler is quite complex than other models of motivation. In fact motivation itself is not a simple cause-effect relationship rather it is a complex phenomenon Porter and Lawler have attempted to measure variables such as the values of possible rewards, the perception of effort-rewards probabilities and role perceptions in deriving satisfaction.

They recommended that the managers should carefully reassess their reward system and structure. The effort-performance-reward-satisfaction should be made integral to the entire system of managing men in organisation.

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Motivation Theories: Top 8 Theories of Motivation - Explained!

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ADVERTISEMENTS: Some of the most important theories of motivation are as follows: 1. Maslow's Need Hierarchy Theory 2. Herzberg's Motivation Hygiene Theory 3. McClelland's Need Theory 4. McGregor's Participation Theory 5. Urwick's Theory Z 6. Argyris's Theory 7. Vroom's Expectancy Theory 8. Porter and Lawler's Expectancy Theory.

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The difference between a boss and a leader

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Leadership approaches

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Read in 4 minutes

What's your definition of leadership?

Does it have something to do with leadership traits or characteristics? Can our potential for leadership be developed? Or is leadership an innate skill?

To help you decide ... here are 4 different approaches to leadership.

But first, why ask such questions?
The clearer we are about what leadership means, the more likely we are to improve our own leadership skills.

Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realise your own leadership potential. - Warren Bennis

4 Different Approaches to Leadership

So, let's make a brief journey through 4 different approaches to leadership.

In Leadership: A Very Short Introduction* Keith Grint introduces a four definitions of leadership:

Whilst other commentators use different definitions, I think these approached to leadership, although not universal, do cover most perspectives.

Bear in mind that each definition need not be mutually exclusive.

1. Leadership as Position

Position-based leadership assumes it is where people operate that makes them leaders.

This view usually takes the form of authority in a formal hierarchy. For instance, the general or CEO. This definition implies that the character of the leader is less important than their position.

Do people follow or do as they're told?

Chef doesn't mean that you're the best cook, it simply means boss. - Tom Colicchi

2. Leadership as Person

This definition of leadership emphasises the importance of the person's character.

Person-based - or character-based - leadership says it is who you are that makes you a leader.

But what does this mean?

That great leaders are heroic or charismatic? Do people follow because there is an emotional relationship between leader and follower?

The capacity and will to rally men and women to a common purpose together with the character that inspires confidence and trust. - Field Marshal Montgomery

3. Leadership as Result

With this definition of leadership we look at the results of leadership.

Results-based leadership focuses on what leaders do.

The dilemma here is this: Is success the result of something leaders do or is it the successful organisation that propels the leader forward?

Leadership is the capacity to translate vision into reality. - Warren Bennis

It seems that results-based leadership can embody many definitions of leadership: Leadership as change, leadership as influence and so on.

4. Leadership as Process

The process-based definition of leadership considers the relationship between leader and practice. It is what leaders do that matters.

Leadership is the process of influencing the activities of an individual or a group in efforts toward goal achievement in a given situation. - Paul Hersey and Ken Blanchard

My Definition of Leadership

I have come to a conclusion that leadership cannot be given a single definition.

The function of leadership is to produce more leaders, not more followers. - Ralph Nadar

Moreover, it is clear that anyone can develop leadership ability. Indeed I believe the following combinations define leadership.

What you have to be - mindset - is a characteristic attitude that determines how we interpret and respond to situations. In essence, the essential leadership qualities or traits.

Leaders think. They think because they are leaders. They are leaders because they think. - Paul Parker

What you need to do - performance - is about results accomplished by groups.

What you need to know - knowledge - is about creating confidence in others. Our technical and professional knowledge is an essential part of our development as a leader.

Authority flows from the one who knows. - Proverb

How you develop yourself - growth - is the process of personal leadership discovery and development.

Without continual growth and progress, such words as improvement, achievement, and success have no meaning. - Benjamin Franklin

How you develop others - service - is to lead by serving. An approach to leadership that promotes a self-leadership environment where everyone is empowered and working toward the good of the whole. This means growing leaders at all levels of the organisation.

Leaders in all realms and activities of life knew that the power they had come to hold existed because they were responsible to serve the many, thus power was position of service. - Vanna Bonta

How to lead others - wisdom - is the quality of having experience, knowledge, and good judgement. Wisdom is at the very core of what we mean by leadership.

Wisdom is the power that enables us to use our knowledge for the benefit of ourselves and others. - Thomas J. Watson

*Affiliate link.

What is your personal definition of leadership?

Creative Commons image courtesy Dimitra Tzanos.

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4 Different Approaches to Leadership - A Definition of Leadership

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Read in 4 minutes What's your definition of leadership? Does it have something to do with leadership traits or characteristics? Can our potential for leadership be developed? Or is leadership an innate skill? To help you decide ... here are 4 different approaches to leadership. But first, why ask such questions?

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level 5 hierarchy

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5 stages of team development

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10 commandments of being a good listener

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World's Largest Collection of Essays! Published by Experts

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There are certain well-accepted essentials for good listening. More specifically, there are Ten Commandments, credit for which is given to an anonymous writer. These ten commandments of listening are as follows:

1. Stop talking

2. Put the speaker at ease

3. Show you want to listen

4. Remove distractions

5. Empathize with the speaker

6. Be patient

7. Hold your temper

8. Refrain from argumentation and criticism

9. Ask questions and elicit more

10. Stop talking again

Let us discuss each one of these commandments in some detail.

1. Stop Talking:

The first commandment of good listening is to stop talking. One cannot be talking and listening attentively, at the same time. The speaker cannot speak and get the message across if the listener continues to talk. Stop talking and start listening.

2. Put the Speaker at Ease:

The speaker can really organize his thoughts and convey them meaningfully only when put at ease. The listener does so through several positive signals such as sitting down, turning to the speaker and observing.

3. Show You Want to Listen:

This calls for a positive attitude on the part of the listener. The listener should indicate preparedness. The listener should make it clear that the listener is attentive and is keen to receive the message the communicator wants to convey. This may be done by appropriate body movement, right posture or by keeping the pen and pad ready.

4. Remove Distractions:

Communication between the sender and receiver cannot progress if there are distractions. The receiver of the communication should show interest in listening, just as the speaker is interested in speaking. The listener has to remove distractions, if any, such as shut the door, switch off the cell phone and remove objects, if any, placed between the speaker and the listener so that body movements can be observed.

5. Empathize with the Speaker:

An important requirement for effective listening is that the listener should show empathy or proper understanding. The speaker may not be perfect and may have shortcomings. As a listener one should learn to put oneself in the speaker's shoes.

6. Be Patient:

T his is an important attribute of good listening. A listener should not only be attentive, but also patient. One should wait for the speaker to complete the talk. The listener should refrain from making frequent interruptions, should avoid making derogatory remarks, cynical comments and distracting gestures. Every speaker has a train of thought, and gestures of impatience on the part of the listener may disturb the delivery of the speech.

7. Hold Your Temper:

Good listening also calls for the right temperament. The listener may not appreciate what the communicator is conveying or the listener may decide that the speaker is factually incorrect. That does not give the listener a right to instant reaction.

8. Refrain from Argument and Criticism:

This is not an uncommon happening. Occasions are many when the listener picks up an argument with the speaker. The listener tries to challenge the speaker and criticize the person. Any such argument or criticism would be detrimental to the flow of communication.

The speaker and the listener have their respective roles to play and the listener should not make any verbal attack on the speaker. If there are many listeners or a large audience, any such act will deprive them of the benefit of the speaker's message.

9. Ask Questions and Elicit More:

While negative interventions and interruptions, as cited above, should be avoided, positive interventions by the listener are desirable. The listener should ask appropriate questions at the right opportunity to elicit more information.

In fact, any speaker would welcome this, for it not only provides the feedback, but also provides an opportunity to clarify the message and correct misconceptions, if any. In structured sessions in particular, the speaker provides for a question and answer session for facilitating greater understanding.

By asking the right type of questions, relevant to the speaker's topic, the listener helps himself as well as the other listeners to get those details which are pertinent, but which the speaker missed out or did not cover adequately.

10. Stop Talking Again:

This aspect is so essential to the process of listening that it is repeated again as the tenth commandment. For speaking to progress smoothly, talking should be stopped not only at the beginning, but also throughout the message delivery process. Stop talking and keep listening.

It is evident that these Ten Commandments help the speaker in coming out with the best and making communication very effective. The speaker gets motivated and responds very enthusiastically to such appreciative listeners.

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10 Commandments You Must Follow to become a Good Listener

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There are certain well-accepted essentials for good listening. More specifically, there are Ten Commandments, credit for which is given to an anonymous writer. These ten commandments of listening are as follows: 1. Stop talking 2. Put the speaker at ease ADVERTISEMENTS: 3. Show you want to listen 4. Remove distractions 5.

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Finding the best possible people who can fit within your culture and contribute to your organization is a challenge and an opportunity. Keeping the best people, once you find them, is easy if you do the right things right. The deas provided will help you with successful employee recruitment which is key to your ongoing success as an organization. Without talented employees, you are unable to accomplish your goals.

These specific actions will help you with recruiting and retaining all of the employees and their many talents that you need. These ten practices will serve you well when you recruit employees.

Top 10 Employee Recruitment Tips

Improve Your Candidate Pool When Recruiting Employees

Companies that select new employees from the candidates who walk in their door or those who answer an ad online are missing the best candidates. They're usually working for someone else and they may not even be looking for a new position. You need to find better ways to increase the number of your superior candidates. Here are the steps to take to improve your candidate pool.

Invest time in developing relationships with university placement offices, recruiters, and executive search firms.

Enable current staff members to actively participate in industry professional associations and conferences where they are likely to meet candidates you may successfully woo.

Watch the online job boards for potential candidates who may have resumes online even if they're not currently looking.

Use professional association websites and magazines to advertise for professional staff.

Look for potential employees on LinkedIn and in other social media outlets. This is an important step to take when you seek to improve your candidate pool of women and minorities.

Encourage your employees to refer friends and professional colleagues who they may know online, to your company.

Bring your best prospects from all of these sources into your organization or Zoom call to meet them before you need them for an open role. Having an established relationship helps during employee recruitment.

Hire the Sure Thing When Recruiting Employees

The authors of "The Human Capital Edge," Bruce N. Pfau and Ira T. Kay, are convinced that you should hire a person who has done this "exact job, in this exact industry, in this particular business climate, from a company with a very similar culture."﻿﻿

They believe that "past behavior is the best predictor of future behavior" and suggest that this is the strategy that will enable you to hire winners. They say that you must hire the candidates whom you believe can hit the ground running in your company. You can't afford the time to train an only possibly successful candidate.

Look First at In-House Candidates

Providing promotional and lateral opportunities for current employees positively boosts morale and makes your current staff members feel their talents, capabilities, and accomplishments are appreciated. Always post positions internally and let your employees know whether you are posting the position externally as well. Provide reasonable application due dates.

Give potential candidates an interview. It's a chance for you to know them better. They learn more about the goals and needs of the organization. Sometimes, a good fit is found between your needs and theirs.

Become Known as a Great Employer

Pfau and Kay make a strong case for not just being a great employer but letting people know that you are a great employer. This is how you build your reputation and your company brand. You'll want the best prospects seeking you out because they respect and want to work for your brand.

Google, which frequently tops "Fortune's Best Companies" list, for example, told Axios that Google received 3.3 million job applications in 2019. This was up from 2.8 million applications in 2018, an 18% increase year over year.

Take a look at your employee practices for retention, motivation, accountability, reward, recognition, flexibility in work-life balance, promotion, and involvement. These are your key areas for becoming an employer of choice.

Involve Your Employees in the Hiring Process

You have three opportunities to involve your employees in the hiring process.

Your employees can recommend excellent candidates for your firm.

They can assist you to review the resumes and qualifications of potential candidates.

They can help you interview people to assess their potential "fit" within your company.

Organizations that fail to use employees to assess potential employees are underutilizing one of their most important assets. People who participate in the selection process are committed to helping the new employee succeed. It can't get any better than that for you and the new employee.

Pay Better Than Your Competition

Yes, you do get what you pay for in the job market. Survey your local job market and take a hard look at the compensation people in your industry attract. You want to pay better than average to attract and keep the best candidates. Seems obvious, doesn't it?

It's not. Employers every day talk about how to get employees cheaply. It's a bad practice. Did you hear, "You do get what you pay for in the job market?" Sure, you can luck out and attract a person who has golden handcuffs because they are following their spouse or partner to a new community or need your benefits.

Use Your Benefits to Your Advantage In Recruiting Employees

Keep your benefits above industry standard and add new benefits as you can afford to add them. You also need to educate employees about the cost and value of their benefits so they appreciate how well you are looking out for their needs.

Employees treasure flexibility and the opportunity to balance work with other life responsibilities, interests, and issues. You can't be an employer of choice without a good benefits package that includes standard benefits such as medical insurance, retirement, and dental insurance.

Employees are increasingly looking for cafeteria-style benefits plans in which they can balance their choices with those of a working spouse or partner. Pfau and Kay recommend stock and ownership opportunities for every level of employees in your organization. Consider profit-sharing plans and bonuses that pay the employee for measurable achievements and contributions.

Hire the Smartest Person You Can Find

In their book, "First Break All the Rules: What the World's Greatest Managers Do Differently," Marcus Buckingham and Curt Coffman recommend that great managers hire for talent. They believe that successful managers believe: "People don't change that much. Don't waste time trying to put in what was left out. Try to draw out what was left in. That is hard enough."

If you're looking for someone who will work well with people, you need to hire an individual who has the talent of working well with people. You're unlikely to train missing talents into the person later. You can try, but then, you are not building on the employee's strengths which 80,000 managers, via Gallup's research, highly recommended.

Use Your Website for Recruiting

Your website portrays your vision, mission, values, goals, and products. It is also effective for recruiting employees who experience a resonance with what you state on your site. Your recruitment website should provide insight into the culture and work environment that you offer for employees.

You do want to create an employment section that describes your available positions and contains information about you and why an interested person might want to contact your company. A recruiting website is your opportunity to shine and a highly effective way to attract candidates.

Check References When Recruiting Employees

The purpose of this section is to keep you out of trouble with the candidates you are seeking and selecting and the employees you currently employ. You really need to check references carefully and do background checks.

In the litigious society in which we live (don't even ask what percentage of the world's lawyers reside in the United States), you need to pursue every avenue to assure that the people you hire can do the job, contribute to your growth, and development and have no past transgressions which might endanger your current workforce.

In fact, you might be liable if you failed to do a background check on a person who then attacked another employee in your workplace.

The Bottom Line

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10 Tips for Successful Employee Recruitment

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Finding the best possible people who can fit within your culture and contribute to your organization is a challenge and an opportunity. Keeping the best people, once you find them, is easy if you do the right things right. The deas provided will help you with successful employee recruitment which is key to your ongoing success as an organization.

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Module 4 Types of organizational culture

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Module 4 Types of organizational culture

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From the Competing Values Framework 4 organizational culture types emerged: Clan culture, Adhocracy culture, Market culture and Hierarchy culture.

Clan Culture

This working environment is a friendly one. People have a lot in common, and it's similar to a large family. The leaders or the executives are seen as mentors or maybe even as father figures. The organization is held together by loyalty and tradition. There is great involvement. The organization emphasizes long-term Human Resource development and bonds colleagues by morals. Success is defined within the framework of addressing the needs of the clients and caring for the people. The organization promotes teamwork, participation, and consensus.

Adhocracy Culture

This is a dynamic and creative working environment. Employees take risks. Leaders are seen as innovators and risk takers. Experiments and innovation are the bonding materials within the organization. Prominence is emphasized. The long-term goal is to grow and create new resources. The availability of new products or services is seen as success. The organization promotes individual initiative and freedom.

Market Culture

This is a results-based organization that emphasizes finishing work and getting things done. People are competitive and focused on goals. Leaders are hard drivers, producers, and rivals at the same time. They are tough and have high expectations. The emphasis on winning keeps the organization together. Reputation and success are the most important. Long-term focus is on rival activities and reaching goals. Market penetration and stock are the definitions of success. Competitive prices and market leadership are important. The organizational style is based on competition.

Hierarchy Culture

This is a formalized and structured work environment. Procedures decide what people do. Leaders are proud of their efficiency-based coordination and organization. Keeping the organization functioning smoothly is most crucial. Formal rules and policy keep the organization together. The long-term goals are stability and results, paired with efficient and smooth execution of tasks. Trustful delivery, smooth planning, and low costs define success. The personnel management has to guarantee work and predictability.

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From the Competing Values Framework 4 organizational culture types emerged: Clan culture, Adhocracy culture, Market culture and Hierarchy culture. Clan Culture This working environment is a friendly one. People have a lot in common, and it's similar to a large family. The leaders or the executives are seen as mentors or maybe even as father figures.

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This is a good take on authority v. power

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Difference Between Authority and Power

The terms Authority and Power have different meanings in management.

Image Credits © x3nomik.

Authority is the right given to a manager to achieve the objectives of the organisation. It is a right to get the things done through others. It is a right to take decisions. It is a right to give orders to the subordinates and to get obedience from them. A manager cannot do his work without authority.

A manager gets his authority from his position or post. He gets his authority from the higher authorities. The lower and middle-level managers get their authority from the top-level managers. The top-level managers get their authority from the shareholders.

Authority always flows downwards. It is delegated from the top to the bottom.

According to Henri Fayol,

"Authority is the right to give orders and power to exact (get) obedience."

Power is a broader concept than authority. Power is the ability of a person or a group to influence the beliefs and actions of other people. It is the ability to influence events. Power can be personal power. A person gets his personal power from his personality or from his expert knowledge. Doctors, Lawyers, Engineers, Programmers, etc. get their power from their expertise and professional knowledge. Power can also be legitimate or official power. This power comes from a higher authority.

In management, authority differs from power in the following ways :-

Authority is the formal right given to a manager to make decisions or to command.

Power is the personal ability to influence others or events.

Authority flows downwards in the organisation. This is because it is delegated by the superiors to the subordinates.

Power can flow in any direction. Even subordinates have power over their superiors, if they can influence their behaviour. So power can flow upwards, downwards or horizontally.

3. Organisational Charts

Authority relationships (superior-subordinate relationships) can be shown in the organisation charts.

Power relationships cannot be shown in organisation charts.

Authority depends on the level of management. Higher the level of management, higher will be the authority and vice-versa.

Power does not depend on the level of management. Power can exist at any level of management. Even a lower-level manager or a worker can have power to influence the behaviour of a top-level manager.

Authority is always official in nature. So it is legitimate.

Power need not be official in nature. So it need not be legitimate.

Authority is given to a position or post. The manager gets the authority only when he holds that position.

Power resides (lives) in the person who uses it.

Related

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difference between authority and power in management

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Difference Between Authority and Power in Management

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The terms Authority and Power have different meanings in management. Image Credits © x3nomik. Authority is the right given to a manager to achieve the objectives of the organisation. It is a right to get the things done through others. It is a right to take decisions.

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Organizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization. This structure is developed to establish how an organization operates and assists an organization in obtaining its goals to allow for future growth. The structure is illustrated using an organizational chart.

Several types of organizational structures are each defined to meet the needs of organizations that operate differently. The types of organizational structure include divisional, functional, geographical and matrix. A divisional structure is suitable for organizations with distinct business units, while a geographical structure provides a hierarchy for organizations that operate at several locations nationally or internationally.

A functional organizational structure is based on each job's duties. A matrix structure, which has two or several supervisors for each job to report to, is the most complicated but may be necessary for large organizations with many locations and functional areas.

Although there are many types of organizational structures developed to meet each organization's needs, all of them provide a hierarchy that reports to a centralized location and group of executives. The highest ranking member of an organizational chart is one or several top executives referred to as the president, chief executive officer or chief operating officer.

When an organizational structure is designed, job descriptions can be developed to not only meet an organizations goals, but allow for organizational and employee growth. Internal equity and employee retention are a key to successful operations. Recruitment is also one of the highest investments for organizations, so ensuring employees have promotional opportunities and job security can assist in reducing recruitment costs.

Organizational structure is also a fundamental core to create salary structures for an organization. Once the structure is established, salary ranges can be created for each job in the organization. In most cases, each job is aligned to a salary grade, and each grade has a specified salary range. This allows an organization to meet its financial goals and ensures salaries are distributed fairly within financial budgets.

If an organization expands, the organizational structure allows room for growth. This can include adding additional layers of management, new divisions, expanding one or several functional areas or appointing additional top executives. When the structure is reorganized for expansion, it provides the foundation to edit salaries and job descriptions quickly and efficiently with minimal disruption to an organization's operations.

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What Is the Meaning of Organizational Structure?

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Organizational structure defines the hierarchy of the organization. It identifies each job, its function and where it reports to in the organization. This structure is developed to establish how an organization operates and assists an organization in obtaining its goals to allow for future growth.

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How true is this? Every single teacher - scratch that - person I've ever shown this to laughs hard and says they can identify with either being or hating one of the people in this picture from the movie, The Hangover.

Yet, schools are still assigning group work, and even moreso now that Project Based Learning is on the rise. With groupwork being an important hinge to making PBL work in our classrooms, what are you doing that ensures that the situation above isn't happening in your classroom?

I'd love to hear your ideas for successful group work and my next post will share some of the ideas that I've been able to gather and practice to pretty decent success my students and I had over a half-decade of experience learning and teaching in a PBL school.

Looking forward to seeing your ideas!

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Every Group Project You Have Ever Done: Hangover Meme

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How true is this? Every single teacher - scratch that - person I've ever shown this to laughs hard and says they can identify with either being or hating one of the people in this picture from the movie, The Hangover.

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Decision-making process - UMass Dartmouth

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Draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through the use of each alternative.

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This is a pretty funny, yet accurate depiction of sales forecasting and planning conversations ive had with management

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Brian Burns - Brutal Truth about Sales Podcast

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FUNNY SALES Video - Forecast Meeting - Do you go through this also? - Funny Sales video

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The company i work for depends a lot on accurate forecast. From my own judgement we use a deductive method

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Essays, Research Papers and Articles on Business Management

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This article throws light upon the top six methods of business forecasting. The methods are: 1. Bottom-up Method 2. Top-down Method 3. Historical Method 4. Deductive Method 5. Joint Opinion Method 6. Scientific Business Forecasting.
Business Forecasting: Method # 1.
Bottom-up Method:
Under this method various departments of an enterprise collect their own information/data and prepare their own forecasts. On the basis of these forecasts, the forecast for the firm as a whole is then undertaken. Thus, the responsibility of successful forecasting lies directly with various departments and people in the organisation.
Top-down Method:
This method is just reverse of the direct or bottom-up method. In this method the forecast for the industry/business as a whole is ascertained first and then the particular forecasts for the various activities of the business are established. The process of forecasting is, thus, indirect and the responsibility for success in forecasting mainly lies with the top levels of management.
Historical Method:
This method refers to the projection of trends on the basis of past events. The historical sequence of events is analysed as a basis for understanding the present situation and forecasting the future trends. The past recurring trends are associated with the corresponding cause and effect phenomenon in the future.
The important advantages of this method include:
(i) The past information or records can be easily obtained; and

(ii) Present information is also not ignored.

However, the main limitation of this method is that the future trends may deviate drastically from the normal path indicated by the past events. Further, it may not be possible to find trend or develop correlation between cyclic movements of past data and other variables which have bearing upon them.
Deductive Method:
Under this method future trends are based on observation and investigation. In addition to the critical analysis of the past events to draw future inferences, the subjective evaluation and conclusions for deducing discretion, experience and intuition of the forecaster.

This method can be regarded as more dynamic in character as it takes into consideration not only the historical sequence of events but also the latest developments. However, the main drawback of this method is that it relies more on individual judgement and initiative appraisal than on actual record.
Joint Opinion Method:
As the name suggests, this method utilises the collective opinion, judgement and experience of various experts. A committee for business forecasting is formulated to take the joint view of various members. An attempt is made to evolve consensus for predicting future events on the basis of their views.
The main advantages of this method include:
(i) It encourages co-operation and co-ordination and also utilises the services of various experts;

(ii) There is no need of detailed statistical analysis, and

(iii) It is simple and easy to operate.

However, the main disadvantage of this method is the joint responsibility which may ultimately result into no-body's responsibility. The members of the committee may also not take active interest as they know that their judgement may not be finally accepted. This may degenerate the entire forecasting process into a mere guess work.
Scientific Business Forecasting:
Under this method, forecasting is done on scientific lines by making use of various statistical tools, such as, business index or barometer, extrapolation or mathematical projections, regression and econometric models. Past statistical data modified in the light of changed present conditions provides the basic raw material for drawing more accurate conclusions for the future.
The following are some of the most important statistical tools used for business forecasting:
(a) Business Index or Barometer.

(b) Extrapolation or Mathematical Projection.

(c) Regression

(d) Econometric Model.
(a) Business Index or Barometer:
The term 'business index' refers to a series relating to business conditions. It is also known as 'barometer', 'indicator' or 'economic forecaster.' Such a business index number may relate to general conditions of business or to a particular trade or industry or to an individual business.

The index number may measure changes in business activity during the changes of cyclical variations, i.e. boom, decline, depression and recovery. It is called business barometer because it helps in making forecasts for future business conditions.

The indices of production, wages, trade, finance, stocks and shares, etc. are plotted on a graph paper to obtain the curve showing trend of long-period and seasonal movements. The various index numbers relating to different activities of business may be combined into a general or composite index of business activity.'

This general index is an indicator of future conditions of trade and industry in general. However, the behaviour of individual trade or industry might show a different trend from that of general index, As such, the study of general index should be supplemented by separate studies of individual trade or industry.
The following are some of the important series which are considered by businessmen for forecasting:
(i) Index of Wholesale Prices

(ii) Index of Consumer Prices

(iii) Index of Industrial Product

(iv) Gross National Product

(v) Employment

(vi) General Aggregate Consumption

(vii) Volume of Agricultural Production

(viii) Stock Exchange Index.

The different figures may be converted into relatives on a certain base. The weighted average of these relatives may be computed to ascertain the business index called the barometer.

These business barometers guide the businessmen in taking decisions on many problems like expansion of production activity, diversification, undertaking of a new project, exploring new markets, launching as sales campaign rising of funds through issue of shares or debentures etc.

The reports on general business and trade conditions are published by the Chamber of Commerce, industry and some trade associations. Important journals and newspapers also publish index numbers relating to various industries and trades. The Reserve Bank of India also publishes various index numbers and indicators of general economic conditions.

The business barometers are very useful in business forecasting, but sometimes these barometers give misleading conclusions due to inaccurate construction of index numbers or changed conditions. As many factors may prevent history to repeat it, it is necessary to modify the trend revealed by business barometers in the light of specific conditions influencing the judgement.
(b) Extrapolation or Mathematical Projection:
Extrapolation is the process of estimating a value for some future period, based on some assumptions.
The basic assumptions underlying this statistical tool of business forecasting include:
(i) There should not be sudden jumps in figures from one period to another; and

(ii) The conditions in the future will not change materially.
(c) Regression:
The regression equation, y=a+bx, can be used as an instrument to predict the value of y for a given value of x. The regression equation is highly used in physical sciences where the data are related functionally. However, in business forecasting it may be very difficult to establish functional relationships and hence the use of regression equation is also limited.
(d) Econometric Models:
Economic activities describe in terms of mathematical equations are referred to as econometric models. These models show the way of inter-relationships amongst the various aspects of the economy. The econometric models are not very popular because it is not possible for every business to develop his own model of the economy.

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This article throws light upon the top six methods of business forecasting. The methods are: 1. Bottom-up Method 2. Top-down Method 3. Historical Method 4. Deductive Method 5. Joint Opinion Method 6. Scientific Business Forecasting. Business Forecasting: Method # 1. Bottom-up Method: Under this method various departments of an enterprise collect their own information/data and ...

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Adjusting you culture to the culture of global markets is process but not impossible

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We all know that in a foreign culture, one of the most important skills to develop is the ability to translate, to learn to speak the new language - or at least master a few key phrases. You also need to learn to translate your behavior so you don't end up making cultural faux pas. But one of the most critical (and also most underappreciated) aspect of translation, and the one that we both believe gets companies into the most trouble when operating globally, is the translation of corporate systems, processes, and procedures - in other words, the nuts and bolts of how corporations actually do business in today's globalized world.

You've undoubtedly heard of individual people making mistakes with language or cultural rules and rituals when operating abroad, but you may not be as familiar with cultural gaffes at the organizational level, where companies fail, often mightily, to transfer the basics of their business practice into the new cultural logic of a foreign environment and end up suffering the consequences.

For example, in one case we're familiar with, a Fortune 100 company implemented expat packages based on the number of people in the household, which meant a lower-ranking employee who was married with children would receive a larger housing allowance (and nicer home) than a higher-ranking employee who was not married or who did not have children. The logic was based on implicit assumptions about what is "fair" based on American culture for someone who is moving their family. But in hierarchical, high-power-distance markets like Asia - specifically Hong Kong, Taiwan, and Thailand - this policy created unintended conflicts among leaders and sent confusing signals to the rest of the organization regarding who was more powerful and higher-ranking within the organization.

In another case, a U.S.-led multinational attempting to align organizational structure, roles, job descriptions, and compensation packages across global markets mistakenly assumed a "one person, one role" mindset. In large markets, it's common for one person to occupy one job function, but in smaller markets, an individual may have two or even three roles at a time, based on market needs and the amount of work required. Implementing a common structure across all markets meant adding new people and costs in some of the smaller markets, like Costa Rica and Guatemala, and requiring one person to report into multiple people at headquarters. This meant they spent more of their time and focus providing updates to multiple bosses, rather than delivering results locally. By failing to understand the financial realities of smaller markets, as well as what the business in those markets required in terms of structure, and incorporating these dynamics from the beginning of the conversation about converting to a global structure, the actions taken were not useful and did not yield positive results for the organization.

Given the critical importance of these translation efforts - and the propensity for organizations to get it wrong - what can companies do to increase the odds of success?

Make your leaders aware of cultural differences. You'd think that in today's global economy everyone would be attuned to cultural differences - but as we've seen in the examples above, this is not necessarily the case when it comes to underlying processes, procedures, and systems. Just as the way for saying hello or good-bye, or exchanging business cards at a meeting differs by cultural context, so too can these critical underlying processes and procedures. Decision makers at the top of the organization must be aware of these core, underlying cultural differences as the most critical, initial step for building cultural competence and agility at the enterprise level.

Do a cultural inventory. As a company, whenever you undertake any significant, new initiative in a foreign setting, whether it's developing an HR system, investing in a new technology platform, or scaling up operations that involves hiring new workers, make sure you filter what you're doing through the logic of the new cultural system. Have cultural translators, people in your organization familiar with both cultures, work to identify which systems, processes, and procedures can be universally applied, and which need "tweaking," or even more complete reimagining. Some elements may be changeable and some will not be negotiable at all - for example laws around hiring and firing and working after hours, attitudes around conflict of interest in procurement, and accounting practices - but it's critical to recognize and take this into account when doing your cultural inventory.

Use cultural translation as an opportunity to engage and motivate local workers. When, as a company, you inevitably do need to make adjustments in your processes and procedures on a global stage, set frameworks and ground rules and let the locals work within those. By introducing flexibility and choice (within a range), you can simultaneously globalize your business and at the same time engage and motivate local partners. A good example of this comes from a Fortune 100 company based in the US we're familiar with, which realized that their policy of recognizing - and singling out - individuals for outstanding achievement and recognition didn't work well in collectivist, group-oriented societies, where it was far more comfortable to recognize an entire group. Without the flexibility to alter recognition policies, organizations can inadvertently demotivate employees and groups without ever understanding why.

In the end, what's most critical to recognize is that global success is the sum total of local results around the globe. And to achieve these local results, it's essential to be flexible, thoughtful, and creative, especially around adapting organizational systems and processes.

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Adapting Your Organizational Processes to a New Culture

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We all know that in a foreign culture, one of the most important skills to develop is the ability to translate, to learn to speak the new language - or at least master a few key phrases. You also need to learn to translate your behavior so you don't end up making cultural faux pas.

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This video touches base on what was covered in Ch 4

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This is a link to Walmart ask a question email for ethics. I think its cool they give  their employees an opportunity to find more information anonymously

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Ask A Question | Walmart Global Ethics Office

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This article shows how diversity can improve work performance

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In this era of technology and globalisation, many companies are making an effort to succeed in cultural diversity in the workplace.

There are some very positive benefits that can be hard from having a more diverse workforce. Let's discuss eight amazing benefits to individuals and employing companies;

Increased productivity

Improved creativity

Increased profits

Improved employee engagement

Reduced employee turnover

Improved company reputation

Wider range of skills

Improves cultural insights

Before we dive in to the main benefits though, what exactly do we mean when we say diversity?

What is cultural diversity in the workplace?

Cultural diversity in the workplace is when companies are open to hiring employees from all sorts of different backgrounds; regardless of race, religion and culture. When companies recruit and retain a diverse pool of people, it brings about different benefits to the company as well as its employees.

Think of the human race as a whole; we are a very diverse species across the globe, with many different cultures, languages and beliefs. Why then, in this age of globalisation, should we not focus on ensuring our workforces are just as diverse?

"When employees respect each other and get along in the workplace, it's amazing how productivity increases, morale increases and employees are more courteous to customers."

- Maureen Wild

Cultural diversity can improve productivity levels

Do you know that a diverse company can lead to greater productivity? Diversity brings in different talents together, all of them working towards a common goal using different sets of skills.

In their research, The economic value of cultural diversity: evidence from US cities, the Authors conclude that "these findings are consistent with a dominant positive effect of diversity on productivity: a more multicultural urban environment makes US-born citizens more productive."

Companies will also gain from each employee by learning from each other's experiences and applying this new-found knowledge to their work. Employees from all sorts of different backgrounds get to learn from their colleagues' experiences from a different perspective. Thus, they are able to bring fresh ideas to the project by thinking out of their comfort zone.

Remember that a diverse workplace combines employees from different backgrounds, ethnicity and experiences, and together breed a more productive environment.

Cultural diversity can increase creativity

Another benefit of cultural diversity in the workplace is the increase in creativity among teams, and the ability to have a more diverse set of solutions to specific problems.

In this Forbes article, the writers points out "Research on creativity and innovation has been consistent in showing the value of exposing individuals to experiences with multiple perspectives and world views. It is the combination of these various perspectives in novel ways that result in new ideas "popping up."

With so many different and diverse minds coming and working together, many more solutions will arise as every individual brings in their personal way of thinking, operating and solving problems and making decisions. Companies that encourage diversity in the workplace inspire all of their employees to perform to their highest ability.

Cultural diversity can increase profits

Many recent studies have shown that increased cultural diversity in the workplace can lead to greater profits for the organisation.

A 2013 survey undertaken by think tank, Center for Talent Innovation, found that 48 per cent of companies in the US with more diversity at senior management level improved their market share the previous year, while only 33 per cent companies with less diverse management reported similar growth.

48 per cent of companies in the US with more diversity at senior management level improved their market share

This may be in part to global business trends, and the benefits of language diversity.

For example; with the rise of companies dealing their businesses in China, a company that hires employees fluent in Mandarin to increase the company's reputation in Chinese communities. This could result in an increase in sales, and resulting in improved profits.

Cultural diversity can improve employee engagement

What better way to learn about other culture and ethnicity than from colleagues that come from a different background than your own? Forget about researching them online.

Ask and learn them from employees during lunch break or after work drinks. What is the point of having a pool of diverse employees when they do not learn more about each other's lifestyle and culture.

When your employees are sharing their personal experiences when they were in high school or what each or every festive season meant to them, they have built a trusting relationship among their colleagues.

This is great because it increases employee engagement and at times increase employee motivation as well, which is great for the company.

Cultural diversity can reduce employee turnover

A company that embraces cultural diversity in the workplace would immediately entices a wider pool of candidates for its job vacancies. Higher-educated candidates who experienced diversity while at university may feel that a diverse company is more progressive and therefore will want to work there.

The more candidates that applied for a job with a company, the company would generally enjoy a larger pool of candidates; the company is than spoilt for choice.
See also How We Encourage Diversity and Equality in Our Content Marketing
Companies who are recruiting from a diverse pool of candidates only mean a more qualified workplace. When companies recruit from a diverse set of potential employees, they are more likely to hire the best of the best for the industry.

In a constantly increasingly competitive economy where skills and talents are crucial to improving the company, put together the most diverse set of candidates is increasingly necessary to succeed in the market.

Studies also show that job seekers are often drawn to companies with diverse workforces because it is publicly obvious that these companies do not practice employment discrimination.

Cultural diversity reflects positively on reputation

Another benefit of cultural diversity in the workplace is the positive reputation that the company would receive. Companies who recruit and encourage individuals from a wide range of backgrounds generally gain a reputation for being a good employer.

Potential clients often feel more valued and thus give more business to these organisations.

A diverse collection of skills and experiences allows a company to provide service to customers on a global basis because the company is able to relate and understand their clients better, and some even on a personal level.

Cultural diversity encourages wider range of skills

When companies hire a more diverse workforce from all backgrounds, these employees inevitably bring their own specific skills, that can be often just as diverse.

Having a wider range of skills and knowledge available to them, these companies often enjoy a more diverse and adaptable range of products and services that they can offer to their respective markets.

Diversity in cultures means diversity in skills and therefore products and service offerings.

Cultural diversity improves insights and reduces racism

By enjoying a more culturally diverse workforce, it is often found that employees then spend more time in their daily lives with people from cultural backgrounds that they are often never exposed to.

The end result of this is that employees learn new cultural insights and this in turn, reduces negative emotions such as racism, homophobia, sexism and the like.

In Summary

When next planning to hire new employees, consider making an effort to hire a diverse range of people, across gender, age and cultural backgrounds. Your organisation could soon enjoy a wide range of benefits, such as the ones we have mentioned in this article;

Increased productivity

Improved creativity

Increased profits

Improved employee engagement

Reduced employee turnover

Improved company reputation

Wider range of skills

Improves cultural insights

I wish you all the best in increasing the cultural diversity in your team and workforce!

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8 Amazing Benefits of Cultural Diversity in the Workplace

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There are some very positive benefits that can be hard from having a more diverse workforce. Let's discuss eight amazing benefits to individuals and employing companies; Increased productivity Improved creativity Increased profits Improved employee engagement Reduced employee turnover Improved company reputation Wider range of skills Improves cultural insights Before we dive in to the main benefits though, what exactly do we mean when we say diversity?