Techniques for Enhancing Organizational Effectiveness

1 Managing for Productivity

In an organization the manager faces seven challenges like competitive advantage, diversity, globalization, information technology, ethical standards, sustainability, and his or her own happiness and life goals. The manager needs to make decisions about planning, organizing, leading and controlling which can increase the productivity of the organization. For the success of an organization, productivity is very important and management can increase the productivity through intelligent usage of information technology, ERP and control system.

2 Control: When Managers Monitor Performance

Management uses control system for six reasons which are adapting to change and uncertainty, discovering irregularities and errors; reducing costs, increasing productivity, or adding value; detecting opportunities; dealing with complexity; and decentralizing decision making and facilitating teamwork. The process of control system follows four steps which are setting standards, measuring performance, comparing results with standards and taking corrective actions.

3 Levels & Areas of Control

The management of an organization needs to be vigilant while implementation of types and steps of control, about the level of the operations and about the style of control philosophy they have to follow. There are different levels of control in relation to the management level which are strategic control, tactical control and operational control. The management make use of six areas for resources which include physical area like buildings, human resource, informational resource, financial analysis, structural area and cultural area.

4 The Balanced Scorecard, Strategy Maps, & Measurement Management

Management uses a balanced scorecard for establishing of standards by using financial measures, customer satisfaction, organizational processes, by innovation and improvement. The strategy map can be explained as a visual presentation of the balanced scorecard which helps the staff to have a clear picture of the organization targets and their part in achieving the organizational goals. In measurement management several criteria are used for evaluation of organization’s success and it includes measuring financial performance, operational performance, evaluating about customer’s satisfaction, measuring employee’s performance, evaluating innovation/change and community/ environment. The success of an organization is dependent on foue mechanism which an organization has to follow, which include involvement of top management in defining strategy, clear communication, focus on the objectives and promotion of healthy work environment like team work. The management faces four kinds of barriers in effective control which are unclear objectives, relying on informal communication styles, staff resistance to change/innovation and organization’s setting wrong standards about performance.

5 Some Financial Tools for Control

The management has the following tools in controlling the organizational resources which are budgets, financial statements, ratios and audits. Budget is an activity of planning and it put the activities to be performed in form of monetary figures. Financial statements help to chart down the activities completed in a given period of time in form of monetary figure. Ratios help to assess the overall performance of the organizations and helps in predicting a trend which the organization might have to face in future. There are two kinds of audits, internal and external. Both involve review of organizations performance critically and from an independent source perspective.

6 Total Quality Management (TQM)

Edward Deming is considered to be a respected source who contributed a lot of work on the improvement of quality in organization by being democratic, more responsive and less wasteful. He also presented a set of principles for management to follow for making an organization successful like focusing on customer satisfaction, improving organizations systems, perspectives and quality by using PDCA or plan-do-check-act cycle. The TQM focuses on the improvement of overall organization systems and it follows two principles, people orientation and improvement orientation. The techniques used by TQM are employees’ participation, benchmarking, out sourcing, reduced cycle time and statistical process control.

7 Managing Control Effectively

For a management to effectively implement controls four key principle are to be followed and be aware from the five barriers. The key principle to follow are keeping the control system strategic and result oriented; timely, accurate and objective; realistic, positive, encouraging self control and comprehendible; and flexible. The barriers to overcome in having effective controls are excessive control, not encouraging employee participation, overemphasis on means instead of ends; overemphasis on paperwork; and focusing on only single approach.

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