Building Relationships


If you want to build a successful network marketing business, the one skill you should seek before all others is the ability to build relationships. The hierarchy of power that structures organizations in the traditional business paradigms does not exist here. No one works for anyone else. In a sense, Network marketing is ‘cooperative’ marketing – we work together from self-interest. For a system like this to be  effective, it must be founded on solid win-win relationships.

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.

Organization Structure and Innovations


Organizational structure fulfils many functions—everyone in the organization knows who he or she reports to; how various repetitive/routine activities are to be discharged; who has what authority and responsibility; how personnel are grouped together (e.g., by departments or divisions); which individuals/groups have decision-making authority and which have primarily advisory functions (line versus staff functions); and what mechanisms are deployed primarily for reducing decision-making uncertainty, for ensuring differentiated or specialized responses to the operating environment, and for coordinating and integrating these differentiated or specialized responses. A well-designed structure that is compatible with strategy or is internally coherent and compatible with the organization’s operating environment tends to contribute to superior organizational performance.

Can organizational structure facilitate innovations? Possibly. Relatively flat managerial hierarchy and extensive decentralization or delegation of authority, including extensive use of profit centers and SBUs.

Certain kinds of structural changes, notably creating many self-contained, substantially autonomous units with stretch targets, extensive delegation of authority to lower level decision-makers, and delayering (removal of some of the managerial levels to reduce the number of approving authorities for innovation)  may increase the potential innovations of the organization.

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.

Avoiding Uncertainty


How do people deal with conflict, particularly aggression and the expression of feelings? High uncertainty avoidance favors precise rules, teachers who are always right and superiors who should be obeyed without question. Low uncertainty avoidance leads to flexibility, and a situation in which arguing with superiors is acceptable and students are happy with teachers who do not claim to know everything.

In weak uncertainty avoidance cultures, managers and non-managers alike feel definitely uncomfortable with systems of rigid rules, especially if it is evident that many of these were never followed. In strong uncertainty avoidance cultures people feel equally uncomfortable without the structure of a system of rules, even if many of these are impractical and impracticable.

The choice of structure is strongly influenced by the prevalent culture. A culture with high power distance and strong uncertainty avoidance prefers a functional ‘pyramid of people’ hierarchy. Lower power distance but high uncertainty avoidance encourages a ‘well-oiled machine’: an organization with a clear structure, rules and procedures.

The control process also helps managers deal with problems arising outside the firm. If the firm is the subject of negative publicity, for example, management should use the control process to determine why and to guide the firm’s response.

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.

 

Need Theories of Motivation


Need theories represent the starting point for most contemporary thought on motivation, although these theories too attracted critics. The basic premise of need theories is that human motivation is caused primarily by deficiencies in one or more important needs or need categories. Need theorists have attempted to identify and categorize the most salient needs, that is, those that are most important to people. The best known need theories are Maslow’s hierarchy of needs, Murray’s manifest needs, and Alderfer’s ERG theory.

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.

 

Policies that Empower


Policies communicate guidelines to decisions. They are designed to control decisions while defining allowable discretion within which operational personnel can execute business activities. They do this in several ways:

  1. Policies establish indirect control over independent action by clearly stating how things are to be done now. By defining discretion, policies in effect control decisions yet empower employees to conduct activities without direct intervention by top management.
  2. Policies promote uniform handling of similar activities. This facilitates the coordination of work tasks and helps reduce friction arising from favoritism, discrimination, and the disparate handling of common functions—something that often hampers operating personnel.
  3. Policies ensure quicker decisions by standardizing other policies that otherwise would recur and pushed up the management hierarchy again and  again—something that required unnecessary levels of management between senior decision makers and field personnel.
  4. Policies institutionalize basic aspects of organizational behavior. This minimizes conflicting practices and establishes consistent patterns of action in attempts to make the strategy work—again, freeing operating personnel to act.
  5. Policies reduce uncertainty in repetitive and day-to-day decision making, thereby providing a necessary foundation for coordinated, efficient efforts and freeing operating personnel to act.
  6. Policies counteract resistance to or rejection of chosen strategies by organization members. When major strategic change is undertaken, unambiguous operating policies clarify what is expected and facilitate acceptance, particularly when operating managers participate in policy development.

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.

 

Hierarchy of Objectives


A hierarchy of organizational objectives extends from the overall objectives of the firm to specific objectives established for each employee. The broader goals of profitability, sales, market share, and service are broken down into objectives for each division, each factory, each department, each workgroup, and each individual worker. Once this has been accomplished, each worker can see his or her contribution to the total organizational goals. The number of levels in the hierarchy depends on the size and complexity of the firm. Smaller firms usually have fewer levels than larger ones.

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.

Bases of Power


There are mainly five bases of power in organizations.

  • Legitimate power exists when one person believes that it is right for another to give orders or otherwise exercise authority.
  • Reward power is based on one person’s ability to administer desired outcomes to another and to remove those outcomes that are not desired.
  • Coercive power is based on a person’s ability to affect the punishment that another receives.
  • Referent power is derived from feelings of identity or oneness, that one person has with another, or from the desire for that identity.
  • Expert power is based on one person’s perception that another has needed knowledge, skills, or perspectives in a given area.

Although managers use all these bases of power, some are generally more effective than others, for instance, managers who rely on coercive power are likely to anger and alienate those they coerce. Such managers will encounter secret rebellion. Similarly, those who regularly “pull rank” demanding obedience simply because of their position in the hierarchy, may face resentment and begrudging acceptance.

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.

Managerial Practices


  • One of the most important responsibilities of management is to lead the organization to develop a hierarchy of strategic intent that incorporates and mutually supportive set of vision, mission, goals, and objectives.
  • As a leader developing a vision, seek out the ideas and ideals that will inspire an organization and motivate its members to work toward greatness.
  • In developing a mission statement, remember that organization serve multiple stakeholder groups and identify how your organization will address the needs of its most important stakeholders.
  • Develop goals that support the organization’s mission, that address the need for balance among various stakeholder groups, and that “stretch” the organization.
  • In identifying objectives, develop measurable targets, but be mindful of the possible unintended consequences of such measurement.
  • Remember the difference between an intended strategy and a realized strategy and be careful not to confuse the two in your consideration and discussion of strategy.
  • Strategies for simple, stable business may be successfully implemented using strategic programming, while strategies for organizations facing complex and/or unpredictable situations will usually require organizational learning, and overwhelming complexity and dynamism may force adoption of an incrementalist approach.
  • Remember the key distinguishing feature between strategic programming and organizational learning: in strategic programming, the firm can realistically separate planning and doing, strategy formulation and implementation. In organizational learning, a firm assumes that it cannot realistically tell in advance how the future will unfold or what will work, and it therefore intertwines formulations and implementation, continually adjusting its strategy as it gains new insights through a trail-and-error process of learning by doing.
  • Do not assume that either a pure strategic programming approach or a pure organizational learning approach is right for your organization. Most organizations need a blend of the two and, consequently, managers need to understand both.
  • You should recognize that although there is nothing inherently wrong with strategic programming, the incidence of “mechanistic” organizations that can successfully depend on this approach is shrinking. Shifts in the nature of business have made it more important for organizations to become more “organic” and to place greater emphasis on organizational learning.
  • Remember the limitations of each of the three major perspectives on strategic management,: rational planning, incrementalism, and organizational learning. Develop a willingness to draw from all three perspectives to improve your effectiveness.

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.

Fuse Knowledge to Power


Architects are concerned with flows. When designing a building, their paramount considerations are how occupants will move in it and how light and air will circulate around it. Equally important for organizational architects is how information, know-how, decisions, and careers will flow in the structure being shaped.

When the work of the corporation was primarily the organizing of manual labor, markets were local and slow to change, and the knowledge base upon which competitive success depended was stable, a unitary hierarchy of manager atop manager made a lot of sense. The information needed to run the business was limited and could be easily channeled in one upward or downward flow. Workers did the work, and managers did the thinking.

But this is a reality that has disappeared from most industries. Markets are dimensioned globally, rules change faster than some competitors can master them, and brainpower counts for much more than brawn. Most organizations, though, remain keyed to the old realities. Few hierarchies have even kept up with the need to build in change by linking each of their limited number of levels with the time horizons of greatest importance to the company.

A more serious problem, though, is the lack of rethinking about how a business needs to organize its intellectual capital, its knowledge workers. It is ironic, and wasteful, that while “knowledge workers” (technical professionals and other holders of graduate or postgraduate degrees) are making up an increasing proportion of the work force in many industries, the organization structures in which they work remain more the products of Industrial Revolution than of the information age.

Knowledge, especially which can affect the company’s future competitiveness, used to be confined to the research and development lab or to the strategic planning department. Now, as information systems-driven service industries assume a larger share of many economies, knowledge about the capabilities that provide competitive advantage is much more widely dispersed than was ever necessary in traditional manufacturing companies. No single information channel can contain it all. And even traditional product makers are changing. Fewer manufacturing jobs are directly involved in making something; more are concerned with planning what to make, how to make it, and how to keep customers happy after the product has been purchased. The intellectual demands on front-line workers have increased tremendously. The narrowly skilled assembly jobs have been replaced by the more knowledge-intensive positions of the factory automation technician.

Requirements for more intellectual value added have escalated up many organization hierarchies. Networked data bases, expert systems, and almost never-ending flow of new personal computer software have significantly expanded the scope and the nature of the contribution possible from many mid-level employees. This is not an unmitigated blessing, though. It has also seriously polluted the management role in many companies, making many into high-level doers instead of managers, increasing the role’s fragmentation, and making it brittle rather than strong and load-bearing.

This situation will only worsen as economic pressures lead to increased management delayering. Companies with eight to ten tiers of management will find it necessary to organize around four or five. The number of subordinates per manager will have to sharply increase. Middle managers will find themselves with less and less time to master these new white-collar productivity enhancers and to make the intellectual contribution their businesses increasingly need.

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, Line of Sight

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