Overproduction


Overproduction is regarded as the most serious waste as it discourages a smooth flow of goods or services and is likely to  inhibit  quality and productivity. Such overproduction also tends to lead to excessive lead and storage times. As a result defects may not be detected early, products may deteriorate and artificial pressures on work rate may be generated. In addition, overproduction leads to excessive work-in-progress stocks which result in the  physical dislocation of operations with consequent poorer communication. This state of affairs is often encouraged by bonus systems that encourage the push of unwanted goods. The pull or Kanban system was employed by Toyota as a way of overcoming this problem.

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.

 

Consumer Affairs Department


Many large corporations operate consumer affairs departments, often placing a vice president in charge. These centralized departments normally handle consumer inquiries and complaints about a company’s products and services, particularly in cases where a customer has not been able to resolve differences with local retailers. Some companies have installed consumer hot lines for dissatisfied customers to place telephone calls directly to the manufacturer.

Many companies now communicate with their customers and other interested persons through Websites on the Internet. Some sites are interactive, allowing customers to post comments or questions that are answered via e-mail by customer relations staff.

Experienced companies are aware that consumer complaints and concerns can be handled more quickly, at lower cost, and with less risk of losing goodwill by a consumer affairs department than if customers take a legal route or if their complaints receive wide-spread media publicity.

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.

 

Public Relations (PR)


Public Relations is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with the public interest, and executes a program of action to earn public understanding and acceptance. In other words a good public relations program has three steps:

  1. Listen to the public: Public relations starts with good marketing research (evaluates public attitudes).
  2. Develops policies and procedures that are in the public interest: One does not earn understanding by bombarding the public with propaganda; one earns understanding by having programs and practices in the public interest.
  3. Inform people of the fact that you are being responsive to their needs: It is not enough to simply have programs that are in the public interest. You have to tell the public about those programs so that they know you are being responsive.

Publicity is one of the major functions of the public relations department. Publicity is any information about an individual, a product, or an organization that is distributed to the public through the media and that is not paid for, or controlled by, the sponsor.

Other activities include:

  • Establishing contact with civic groups, consumer organizations, and other concerned citizens to learn their views of the organization, to answer their questions, and to provide information (or education).
  • Opening lines of communication with customers, suppliers, distributors, retailers, stockholders, government agencies, educators, and community leaders.
  • Conducting studies to find the economic, environmental, and social consequences of organizational practices and to learn how to make a more positive contribution to customers, stakeholders, and society.
  • Providing any assistance needed to adjust the goals, policies, practices, personnel policies, products, and programs of the organization to meet the needs of changing markets.
  • Assisting all members of the firm in developing effective programs of consumer information and education.
  • Sending speakers to schools, clubs, and other such groups to maintain an open dialogue with students and other socially active members of society.
  • Creating incentives for employees to participate in public-affairs activities such as raising funds for charitable groups.
  • Answering consumer and other complaints promptly and correcting whatever it was that caused the complint.
  • Training employees or volunteers to provide prompt, friendly, courteous, and helpful service to anyone who contacts the organization in person, by phone, or written correspondence.
  • Demonstrating to society the organization is listening, reacting, adjusting, and progressing in its attempt to satisfy its diverse publics.
  • Opening two-way communications with employees to generate favorable employee opinion and to motivate employees to speak well of the organization to others.

This is an incomplete description of all the activities and responsibilities of the PR people, but it at least gives some feeling for what they do.

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.

 

A Socially Responsive Company


Executive leaders of largest corporations have been confronted with an unprecedented increase in the social issues impinging upon their business policies and practices. Not only have a variety of social regulations have been developed that apply universally to all industries, but each industry has also experienced to varying degrees a proliferation of industry-specific challenges for the corporate social environment.

In response to the pressures, businesses have increased their efforts to manage for corporate social environment. The social environment encompasses business activities influenced by various community and government groups. Many chief executives spend more time on the external affairs of the business than any other activity. Most executives allocate significant personnel, time, and budget to the creation of elaborate staff groups to help them understand and manage this environment and its challenges.

Some firms may be more vulnerable to social group pressure and social regulation than others. A number of factors have been identified as contributing to this vulnerability. A firm may be more vulnerable to social forces if the firm is:

  • A large-sized or well-known company thus presenting a big target.
  • Located in an urban area and under increased scrutiny by the media and social groups.
  • Producing a consumer-oriented product viewed as a necessity by the public.
  • Providing a product or service that may cause harm or injury to the user.
  • Part of a heavily regulated industry that is expected to meet high public 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.

 

Primitive Organizations


Primitive organizations exhibit all the classic features of any start-up. Energy and anticipation are usually high and the right startup can almost run on pure adrenalin.

Primitive organizations naturally perform the things that other types of organizations have to work hard to achieve. Formal structure and communication is not yet necessary, as enthusiasm and team spirit can carry the organization along.

In the early stages most primitive organizations manage to operate under one working culture and build effective internal and external relationships. This state of affairs can’t last, however, as primitive organizations are naturally transient. When the initial honeymoon period passes, the culture of the organization will change of its own accord.

All that is up for debate is how much it will change, how fast it will change and whether that change will be managed or if nature will be allowed to take its own course.

As is the case with all organizations, primitive organizations face the choice of managing their culture from the word go, or leaving it to chance. Unfortunately too many organizations rely on the natural spirit associated with being a primitive startup and de-prioritize cultural investment, choosing to concentrate on what they see as operational necessities.

To a point this is understandable, but this attitude reflects some common misconceptions.

  • An organization’s honeymoon period or primitive stage can be incredibly short, which catches a lot of organizations out – and once the damage is done, it’s done. Remedial work is always harder and significantly more draining and time-consuming than positive effort.
  • Proactive cultural and relationship management right from the start can be achieved at minimal cost in terms of time and money, and will deliver benefit for years to come. It is worth remembering that managing a working culture does not mean over-engineering it: in fact, it should mean quite the opposite. Good practice from day one is what creates long-term amazing relationships and long-term success.

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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