Doughnut Structure


Although most organization charts are constructed in the shape of a pyramid, extending downward from the board of directors or president, some firms have doughnut structure—an organization chart made up of concentric circles that represent top management, staff personnel, and functional areas and that reflect a more flexible structure—people see themselves working in a circle as if around one table. One of the positions is designated chief executive officer, because somebody has to make all those tactical decisions that enable an organization to keep working. The doughnut design is made up of concentric circles, in which the center ring consists of top management. The second ring is composed of important staff personnel, such as legal, personnel, research and development, and electronic data processing, whose services are used by all departments. The third ring consists of managers of functional areas, while remaining rings comprise department and other supervisory managers

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.

Organization Structure


Any group possessing common goals is an organization. But business organizations can be classified according to the nature of their internal authority relationships. Although there are five forms of organization structure, four forms are common: line, line and staff, committee, and matrix. The line structure is the oldest form and is frequently used today in smaller organizations. The functional form uses specialist managers entirely responsible for their own fields within the operation. The line and staff form uses specialists to assist line officers. This is commonly used in medium and large size firm. The fourth and fifth types, committees and the matrix organizations exist in many firms but only ready as the sole types. They are typically used as a sub-organizational form within a line and staff structure.

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 Chief Executive Officer


The chief executive officer (CEO) is the person ultimately responsible for setting organizational strategy and policy. Even though the CEO reports to the chair of the board (who has the most legal authority), in a real sense the CEO is the most powerful person in the corporation because he or she controls the allocation of resources. The board of directors gives the CEO the power to set the organization’s strategy and use its resources to create value. Often the same person is both chief executive officer and chair of the board. A person who occupies both positions wields considerable power and directly links the board to corporate management.

How does a CEO actually affect the way an organization operates? A CEO can influence organizational effectiveness and decision making in five principal ways:

  1. The CEO is responsible foe setting the organization’s goals and designing its structure.
  2. The CEO selects key executives to occupy the topmost levels of the managerial hierarchy.
  3.  The CEO determines top management’s rewards and incentives.
  4. The CEO controls the allocation of scarce resources such as money and decision making power among the organization’s functional areas or business divisions.
  5. The CEO’s actions and reputation have a major impact on inside and outside stakeholders’ views of the organization and affect the organization’s ability to attract resources from its environment.

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 Consequences of a Bad Boss


The leading cause of stress is the bad boss. In most organizations everyone in the company expect the chief executive officer has a boss, or has the potential to become a boss, even if that means you are instructing an apprentice or a student who is at the company for a short time on a work orientation program.

In terms of making our own choices in response to stress, even the very lowest person on the work ladder is still a boss—a boss of his or her own department. Thus, what a lot of people complain of having a bad boss, the corollary is that most of us are bad bosses—if not of others, then at least of ourselves.

The damage that a bad boss does is sometimes far more widespread than is seen at the time. With the ultimate control, as well as, knowledge of the bigger picture, the boss escapes the highest levels of stress at work, but can still be a powerful stress carrier. In just the same way that a child who is humiliated by a bully comes home and yells at a younger sibling, a boss can transfer anxieties and stresses to employees without ever letting them know the reasons behind the negative behavior.

When an employee is frustrated all day by the boss, these frustrations tend to get transferred along to innocent bystanders, rather like one of those dreadful chain letters. One may see drastic repercussions, ranging from demoralization and loss of self-worth, to burnout of virtually any organ system in the body. In the brain this burnout takes the form of fatigue, insomnia, anxiety, depression, or obsessive behavior. Aggression can be triggered, causing such tragedies as life and child beating or even mass murders during a sudden wild shooting spree. Bad bosses are even the motivation for some suicides. In the stomach or heart, the results of a bad boss are often seen in ulcers or heart attacks.

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.

 

Corporate Disclosures


Giving stockholders more and better company information is one of the best ways to safeguard their interests. The theory behind the move for greater disclosure of company information is that a stockholder, as an investor, should be as fully informed as possible to make sound investments. By law, stockholders have a right to know about the affairs of the corporation in which they hold ownership shares. Those who attend annual meetings learn about past performance and future goals through speeches made by corporate officers and documents such as the company’s annual report. Those who do not attend meetings must depend primarily on annual reports issued by the company and the opinions of independent financial analysts.

Historically, management has tended to provide stockholders with minimum information. But companies now disclose more about their affairs, in spite of the complicated nature of some information. Stockholders therefore can learn about sales and earnings, assets, capital expenditures and depreciation by line of business, and details of foreign operations.

Corporations also are required to disclose detailed information about directors, how they are chosen, their compensation, conflicts of interest, and their reasons for resigning in policy disputes with management.

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.

 

Codes of Ethics for Financial Executives


Financial Executives International (FEI) recommends that all senior financial professionals adhere to a strong ethical code of conduct, sign it annually, and deliver it to their company’s board of directors. Fr many years, members of FEI have signed such a code, in an effort to commit to its principles. Senior financial officers hold an important and elevated role in corporate governance. As members of the various management teams, they are uniquely capable and empowered to ensure that all stakeholders’ interests are appropriately balanced, protected, and preserved.

FEI’s code provides principles to which members are expected to adhere to and to advocate. It embodies rules regarding individual and peer responsibilities, as well as, responsibilities to employers, the public, and other stakeholders. Violations of EFI’s Code of Ethics may subject the member to ensure, suspension or expulsion under procedural rules adopted by FEI’s Board of Directors. The code states that all members of FEI will:

  1. Act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships.
  2. Provide constituents with information that is accurate, complete, objective, relevant, timely, and understandable.
  3. Comply with applicable rules and regulations of federal, state, provincial, and local governments, and other appropriate private and public regulatory agencies.
  4. Act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing one’s independent judgment to be substantiated.
  5. Respect the confidentiality of information acquired in the course of one’s work except when authorized or otherwise legally obligated to disclose. Confidential information acquired in the course of one’s work will not be used for personal advantage.
  6. Share knowledge and maintain skills important and relevant to constituents’ needs.
  7. Proactively promote ethical behavior as a responsible partner among peers, in the work environment and the community.
  8. Achieve responsible use of and control over all assets and resources employed or entrusted.
  9. Report known or suspected violations of this Code in accordance with the FE Rules of Procedure.
  10. Be accountable for adhering to the Code.

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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