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.

Technology and New Knowledge


Technology is one of the most powerful forces affecting business and society. Improved technology includes machines of all sizes, shapes, and functions; processes that enable business to produce goods at faster speeds, with lower costs, and with less waste; and software that that incorporates new forms of learning into formats that direct machines (hardware) to perform functions that would have taken much longer, and been less reliable, if done by other means. Technology involves harnessing human imagination to create new devices and new approaches to the needs, problems, and concerns of a modern society.

Technology also involves drawing together fields of knowledge that coverage, enabling new ways to solve problems or perform tasks.

Although new technologies have the potential to benefit large portions of the population, they may also negatively affect some people. As new technologies become available, the challenges to sound decision making become even more ethically complicated.

Technology is creating what experts call the knowledge economy. This is an economy in which new knowledge, in all of its many forms, is reshaping and transforming old industries and businesses, creating new industries and businesses, and ultimately affecting individuals, families, communities, and institutions throughout the world. For these reasons, technology must be understood as one of major drivers of change in both business and society.

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.

 

Locus of Control


Locus of control is the extent to which a person believes that his or her behavior has a direct impact on the consequences of that behavior. Some people believe they can control what happens to them—that if they work hard, for instance, they will be successful. These people, called internals, have what is termed an internal locus of control. Externals, or people with an external locus of control, tend to think that what happens to them is determined by fate or luck. They see little or no connection between their behavior and subsequent events. Like attribution theory concepts, locus of control concepts focuses on people’s interpretations of what happens to them.

Locus of control concepts has some significant managerial implications. Internals are likely to want a voice in how they perform their jobs because they believe that what happens to them will depend on how well they control their environment. Externals, in contrast, may be less inclined to participate in decision making.

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 Governance


Corporate governance refers to the overall control of a company’s actions. Several key stakeholder groups are involved in governing the corporation.

  • Managers occupy a strategic position because of their knowledge and day-to-day decision making.
  • The board of directors exercises formal legal authority over company policy.
  • Stockholders, whether individuals or institutions, have a vital stake in the company.
  • Employees, particularly those represented by unions or who own stock in the company, can affect some policies.
  • Government is involved through the laws and regulations.
  • Creditors who hold corporate debt may also influence a company’s policies.

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.

Scientific Method and Marketing Research


Scientific method is a decision-making approach that focuses on being objective and orderly in testing ideas before accepting them. With the scientific method, managers don’t just assume that their intuition is correct. Instead, they use their intuition and observations to develop hypotheses—educated guesses about the relationships between things or about what will happen in the future. Then they test their hypotheses before making final decisions.

A manager who relies only on intuition might introduce a new product without testing consumer response. But a manager who uses the scientific method might say, “I think (hypotheses) that consumers currently using the most popular brand will prefer our new product. Let’s run some consumer tests. If at least 60 percent of the consumers prefer our product, we can introduce it in a regional test market. If it doesn’t pass the consumer test there, we can make some changes and try again.”

The scientific method focuses an orderly research process. Some managers don’t carefully specify what information they need. They blindly move ahead—hoping that research will provide “the answer.” Other managers may have a clearly defined problem or question but lose their way after that. These hit-or-miss approaches waste both time and money.

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.

Organizing


Rarely are individuals in an organization able to achieve common goals without some form of structure. Organizing is the structuring of resources and activities to accomplish objectives in an efficient and effective manner. Managers organize by reviewing plans and determining what activities are necessary to implement them; then, they divide the work into small units and assign it to specific individuals, groups, or departments. As companies reorganize for greater efficiency, more often than not, they are organizing work into teams to handle core processes such as new product development instead of organizing around traditional departments such as marketing and production.

Organizing is important for several reasons. It helps create synergy, whereby the effect of a whole system equals more than that of its parts. It also establishes lines of authority, improves communication, helps avoid the duplication of resources, and can improve competitiveness by speeding up decision making.

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 Dynamics of Social Responsibility


The various stakeholders of a firm can be divided into inside stakeholders and outside stakeholders. The insiders are the individuals or groups that are stakeholders or employees of the firm. The outsiders are all the other individuals or groups that the firm’s actions affect. The extremely large and often amorphous set of outsiders makes the general claim that the firm be socially responsible.

Perhaps the thorniest issues faced in defining a company mission are those that pertain to responsibility. The stakeholder approach offers the clearest perspective on such issues. Broadly stated, outsiders often demand that insider’s claims be subordinated to the greater good of the society; that is, to the greater good of the outrsiders. They believe that such issues as pollution, the disposal of solid and liquid wastes, and the conservation of natural resources should be principal consideration in strategic decision making. Also broadly stated, insiders tend to believe that the competing claims of outsiders should be balanced against one another in a way that protects the company mission. For example, they tend to believe that the need of consumers for a product should be balanced against the water pollution resulting from its production if the firm cannot eliminate that pollution entirely and still remain profitable. Some insiders also argue that the claims of society, as expressed in government regulation, provide tax money that can be used to eliminate water pollution and the like if the general public wants this to be done.

The issues are numerous, complex, and contingent on specific situations. Thus, rigid rules of business conduct cannot deal with them. Each firm regardless of size must decide how to meet its perceived social responsibility. While large, well-capitalized companies may have easy access to environmental consultants, this is not an affordable strategy for smaller companies. However, the experience of many small businesses demonstrates that it is feasible to accomplish significant pollution prevention and waste reduction without big expenditures and without hiring consultants. Once a problem area has been identified, a company’s line employees frequently can develop a solution. Other important pollution prevention strategies include changing the materials used or redesigning how operations are bid out. Making pollution prevention a social responsibility can be beneficial to smaller companies. Publicly traded firms also can benefit directly from socially responsible strategies.

Different approaches adopted by different firms reflect differences in competitive position, industry, country, environmental and ecological pressures, and a host of other factors. In other words, they will reflect both situational factors and differing priorities in the acknowledgement of claims. Obviously, winning the loyalty of the growing legions of consumers will require new marketing strategies and new alliances in the 21st Century. Many marketers already have discovered these new marketing realities by adopting strategies called the “4 Es.” 1) make it easy for the consumer to be green, 2) empower consumers with solutions, 3) enlist the support of the consumer, and 4) establish credibility with all publics and help to avoid a backlash.

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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