Factors of Production


Each business has its own mix of the four factors of production, vis-à-vis, natural resources, labor, capital, and entrepreneurship.

Natural resources refers to everything useful in its natural state as a productive input including agricultural land, building sites, forests, mineral deposits, and so on. Natural resources are basic resources required in any economic system.

Labor is critically important. It refers to everyone who works for a business, from the company president to the production manager, the sales representative, and the assembly line worker.

Capital is defined as the funds necessary to finance the operation of a business. These funds can be provided in the form of investments, profits, or loans. They are used to build factories, buy raw materials, hire workers, and so on.

Entrepreneurship is the taking of risks to set up and run a business. The entrepreneur is the risk taker in private enterprise system. In some situations the entrepreneur actively manages the business; in others this duty is handed over to a salaried manager.

All four factors of production must receive a financial return if they are to be used in a private enterprise system. These payments are in the form of rent, wages, interest, and profit. The specific factor payment received varies among industries, but all factors of production are required in some degree for all businesses.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Human Context of Management


In addition to understanding the ongoing behavioral processes inherent in their own jobs, managers must understand the basic human element of their work. Organizational behavior offers three major perspectives for understanding this context: people as organizations, people as resources, and people as people.

Above all, organizations are people, and without people there would be no organizations. All organizations differ from each other dramatically in size, purpose, and structure, they have one thing in common: people. Thus, if managers are to understand the organizations in which they work, they must first understand the people who make up the organizations.

As resources, people are one of an organization’s most valuable assets. People create the organization, guide and direct its course, and vitalize and revitalize it. People make its decisions, solve its problems, and answer its questions. People are at the core of many of the possible contributors to this trend. To reverse declining productivity, many organizations have taken steps to boost the contribution from their human resources. Some companies have encouraged management and labor to cooperate better; others have increased employee participation in decision-making and problem-solving.

There is another perspective—people as people. People spend a large part of their lives in organizational settings, mostly as employees. They have a right to expect something in return beyond wages and employee benefits. Employees seek satisfaction, and many want the opportunity to grow and develop and to learn new skills. An understanding of organizational behavior can help managers better appreciate these needs and expectations.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Job-Related Attitudes


Attitudes are an important consideration for managers. Employee attitudes may be related to behaviors critical to the organization: dissatisfied employees. Negative attitudes towards the organization can also spur employees to consider forming or joining a labor union. Theory and research on attitudes can help managers understand employee attitudes toward the workplace. In general, employees develop consistent and identifiable sets of attitudes toward job attributes, such as pay, working conditions, and the job’s tasks.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Compliance and Integrity


In the earliest stages, organizational ethics centered on the narrow perspective of ethics—the notion of compliance. Are we following the laws? Are we at risk from litigation? If so, how do we minimize that risk?

Ethics programs matured and ethics officers, most of whom are selected from the managerial ranks with little, if any, special preparation, developed increased sophistication regarding the challenges facing their organizations. Both the ethics officers and their organizations began to embrace personal and corporate values in decision making (value-based decision making) as the logical expansion of the definition of what it means to be ethical. What has emerged is what many ethics officers today characterize as the “best practices” model of the ethics office and of a values-based corporation.

But change continues. What is emerging today is a more holistic definition of what it means to be a “good” corporation. This new, global view will again help to reshape the responsibilities and focus of the ethics officer.

The shift to a global perspective means another broadening of the definition of ethics. “Global Integrity” is the latest descriptor, and it embraces both compliance and ethics. It also adds concern for rule of law, human rights, good governance, labor/child labor concerns, anti-corruption/anti-bribery, concern for the environment, safety, social responsibility, good corporate citizenship, and respect for the whole diverse array of local cultures to the definition. This increases the organization’s obligation to reach beyond traditional company boundaries to consider how decisions would affect the surrounding community. One consequence of this new global definition of the organizational ethics is increased scrutiny by stakeholders, especially advocacy groups and the media.

Corporate ethics officers, especially those in multinational corporations and/or corporations with global suppliers/markets, are being challenged with fundamental questions in this expanded integrity area. Perhaps the most common, and most challenging, is how the corporation will balance the desire for global standards (consistency) against the need for local application of standards.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Contemporary World


By the end of World War 11 in 1945, the Industrial Revolution was complete. The need for war goods required the development of new forms of production and technology, which later were used to produce consumer goods. Inventiveness was at high peak. Synthetic plastics and chemicals replaced natural substances as the basis for many products. Better machinery made it possible to manufacture products to produce precise specifications. (This type of precision is what lead eventually to the Apollo moon shot, which required components that were accurate to several one-hundred thousandths of an inch.)

In the 1970s, widespread use of computers enabled the management to process large quantities of data. Factories could be automated, with computer-controlled machinery carrying out many routine activities that could previously be completed only by time-consuming human labor.

By 1980, more than 80 percent of US 500 largest businesses were multinational, operating facilities in five or more foreign countries. And even for smaller companies and individual consumers, the world has become more like a large neighborhood than a huge, unknowable planet. High-speed computers, orbiting satellites, fluctuating exchange rates, and worldwide scarcities of natural resources bind us together with common needs, concerns, and goals.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Importance of HRM


This is important because some of the personnel mistakes you don’t want to make while managing. They include:

  • Hire the wrong person for the job;
  • Experience high turnover;
  • Find your people not doing their best;
  • Waste time with useless interviews;
  • Have your company taken to court because of discriminatory actions;
  • Have your company cited under occupational safety laws for unsafe practices;
  • Have some employees think their salaries are unfair and inequitable relative to others in the organization;
  • Allow a lack of training to undermine your department’s effectiveness;
  • Commit any unfair labor practices.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.


This is important because some of the personnel mistakes you don’t want to make while managing. They include:

  • Hire the wrong person for the job;
  • Experience high turnover;
  • Find your people not doing their best;
  • Waste time with useless interviews;
  • Have your company taken to court because of discriminatory actions;
  • Have your company cited under occupational safety laws for unsafe practices;
  • Have some employees think their salaries are unfair and inequitable relative to others in the organization;
  • Allow a lack of training to undermine your department’s effectiveness;
  • Commit any unfair labor practices.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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