Category Archives: ORGANIZATIONAL

Effective Financial Management Tips

Effective Financial Management Tips

Financial management means putting together the economic resources at hand to make efficient use of them and taking decisions that can successfully culminate in acquiring more assets for the family or business. With effective utilization of funds, you can even attract finance to meet the short-term and long-term requirements of the family or firm. The whole process is intense and deals with the selection of specific or a combination of assets to deal with the monetary issue, if any. The overall aim is to reduce the size of the problem and ensure fiscal growth of the enterprise or family funds.

Financial Management Analysis

This analysis deals with the calculated and predicted cash inflow and outgoings. The analysis is directed towards the study of the effect of existent funds on managerial objectives. It handles everything, right from procuring the funds to effective utilization of the same. Dedicated analysis handles procurement of funds from multiple sources, and since the funds are from different sources, they naturally need to be addressed, considering the difference with regards to the potential risk and control.

Tips

This management practice involves the optimum use of funds issued via equity, especially in the case of a business. This source is the best from the risk point of view since there is no involvement of any repayment. Management of business funds should ideally capitalize on equity capital, in spite of it being the most expensive source of funds. Furthermore, it should also involve calculation of risk, cost and control, and maintenance of the cost of funds at minimum. This is done with the intent of establishing a proper balance between the involved risk and optimized control.

Tapping Foreign Investments
In today’s competitive business world, mobilization of funds is very important. The implications play a very significant role in the overall growth of the venture. Financial management involves the raising of funds through the domestic and foreign market. When considering overseas solutions, direct and foreign institutional investments are major resources to tap, in order to raise the required funds. This whole mechanism designed for effective procurement of funds has to be periodically reviewed and modified, understanding the changing requirements of foreign investors.

Utilization of Funds
The ultimate goal cannot be addressed or achieved without first designing a strategy to ensure the proper utilization of funds. This helps to evade situations in which the funds remain idle or lack of profitable utilization of funds in hand. When availing of funds for the business, it is important to understand the involved cost and risk factors. Wastage of funds will only result in the business objectives not being met and ultimately, loss. The funds existent within the business should be critically reviewed from time to time and employed properly and profitably.

Scope and Extent
It has become imperative to address sound financial management in all types of organizations to guarantee efficient use of all resources. Research reveals that many firms liquidate because of mismanagement of funds and not, as it is commonly believed, because of obsolete technology or the lack of skilled labor. It is, in general, designed and customized according to different client needs to optimize output from the assessed fund input. In a situation where resources seem scarce and the demand for funds is high, its proper utilization is an absolute necessity.

The objectives of efficient financial management include maximization of profit. However, profit maximization is a limited objective and if it becomes the sole focus, then the approach only leads to more problems. This aspect must take into consideration, the relationship between risk and profit and work towards achieving a balance. The value of a business is analyzed on the evaluation of the stock market price. Thus, all in all, this financial practice should take into account, present and expected future income and the dividend policy of the firm to come up with a near-perfect understanding of the company’s progress potential.

Self Managed and Self Directed Teams

Self Managed and Self Directed Teams

The service industry is getting more attention in the B-World. It has never been as easy to establish a company, I should say, a listed company. Production and operations companies have seen so many business management concepts for quality control and best team management practices including quality circles.

Emery suggested, “In designing a social system to efficiently operate a modern capital-intensive plant, the key problem is that of creating self-managing groups to man the interface with the technical system.”

The basis of the autonomous work group approach to job design is the socio-technical system theory that suggests the best results are obtained if grouping is such that workers are primarily related to each other by way of task performance and interdependence.

Charles Peguy described, “A man is not determined by what he does and still less by what he says. But in the deepest part of himself, a being is determined solely by what he is.” A self-management team is made of such persons who are motivated by self.

Definition

A self-managing team or autonomous work group is allocated an overall task and given discretion over how the work is done. It provides for intrinsic motivation by providing people autonomy and the means to control their own work, which will include feedback.

Self-directed teams are those that have been structured to manage and coordinate their own activities, and make many of the day-to-day decisions that would have traditionally been made by a supervisor or manager. They usually have responsibility for a complete piece of work (such as engine assembly) and they work quite closely and interdependently.

According to a research study, the TQM and mass-production organized groups did not improve customer service quality or sales volume. While self-managed teams improved sales by 9.4% and the quality of customer service by 6.3%.

In fact, comprehensive surveys report that 79% of companies in the Fortune 1000 currently deploy such “empowered,” “self-directed,” or “autonomous” teams. Because of their widespread use, much research has been devoted to understanding how best to set up such teams to maximize their effectiveness.

Understanding Multi-Skilled Teams Better

Self-managing teams incorporate the concepts of Hackman and Oldham’s job characteristics model:
Autonomy
Skill variety
Task significance
Task identity
Feedback
Their features include:
The team enlarges individual jobs to include a wider range of operative skills.
It decides on methods of work and the planning, scheduling, and controlling of work.
It distributes tasks among itself, i.e., its members. It plans and guards the process on its own, solves daily problems, without having to consult a manager or supporting services.
It takes account of the social or group factors, and the technology as well as the individual motivators.
It maintains independent contact with others teams and staff.
It improves working methods on its own, and has all the relevant information available on the basis of which they evaluate their results.
Its members possess both, qualifications on the product they deliver as well as certain organizational qualities.
Self-Management Team Development

According to Vanessa Urch Druskat and Jane V. Wheeler, leading self-managed teams in an organization is a process that can be grouped into four basic functions.
Continually moving back and forth between the team and the broader organization to build relationships.
Scouting necessary information from managers, peers, and specialists.
Persuading the team and outside constituents to support one another.
Empowering team members through coaching, delegating authority, and exercising flexibility regarding team decisions.
Corporate Testimonials

“Whole Foods is very committed to the team structure and self-managing work teams; they’re like the basic cells of the company. The teams are empowered. They do their own hiring. They do their own scheduling. To become a team member at Whole Foods, you have to get voted on by your team after a trial period. If you don’t get a two-thirds vote, you don’t get on the team,” said John Mackey, founder of Whole Foods on this concept.

Hewlett Packard trusts and respects individuals focusing on high-level achievement and contribution, conducting business with integrity, achieving objectives through teamwork, and encouraging flexibility and innovation.

Small Business Ideas in Which You Can Use Your Organizational Skills

Small Business Ideas in Which You Can Use Your Organizational Skills

Do you have superior organizational skills? If you do, you can put them to good use as the basis for a small business. Although you may take your stellar organizational skills for granted, people who feel unorganized and overwhelmed will be happy to compensate you for your skills.

Some examples of small businesses based on organizational skills are listed below:

o Personal organizer – Some people are unable to organize their homes and/or small businesses. They may simply lack good organizational skills; in cases like this, you can help them establish easy-to-follow systems for their various needs, including filing, storage, tasks, and so on. In other cases, they may face accumulations of materials collected over extended periods of time. In these cases, you will need to be the conscience and voice of reason to help them determine what should be saved and what should be thrown away.

o Organizational consultant – whereas a personal organizer generally works on a short-term basis, an organizational consultant would be available as needed, perhaps on a retainer basis. Companies may take advantage of the expertise of an organizational consultant when they need to rework filing systems, reorganize physical space, move into a new office setting, or restructure organizational personnel.

In addition to the above, excellent skills are necessary in some other small business settings as well. When combined with solid mathematical skills, good organizational skills can lead to small businesses such as accounting or bookkeeping. When combined with financial expertise, top-notch skills can motivate a person to establish a small business as a financial analyst. Finally, when combined with a love of knowledge, solid organizational skills can translate to a career as a writer or researcher.

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Why Strategic Planning Training Is Necessary for Organizational Leaders

Why Strategic Planning Training Is Necessary for Organizational Leaders

In the current economic environment, organizations are slashing payrolls left and right to cut costs. It is therefore imperative that organizations find a way to to maximize the productivity of their employees to make up for the reduction in staff. One effective way of doing this is by providing organizational leaders with strategic planning training, so that they are more equipped to set and achieve long-term organizational objectives. Since change is the only constant in a business environment, an organization will benefit from having individuals on staff that can quickly notice and adapt to changes.

Strategic planning training will generally focus on teaching employees to answer three questions about the company:

What do we do?
For whom do we do it?
How do we excel?
Another resource that helps companies answer these questions is facilitator training for organizational leaders. Since many organizations hold meetings or planning sessions that focus on strategic direction, it is beneficial to have someone on staff that can serve as a facilitator role. The facilitator is the individual who will oversee a discussion and work to have all employees contribute ideas, so that the organization is able to meet its objectives. While some companies prefer to outsource the task to a trained specialist, other companies find that providing facilitator training for organizational leaders is a great way to expand their skill set to achieve the company’s goals. This type of instruction, combined with strategic planning training, helps set true leaders apart from their peers.

A leader who can develop organizational business strategies, put those strategies into action, and spontaneously change strategies, can mean the difference between a successful business and a stagnant one. Typical strategic planning training will begin with the basics of strategy formulation, and then focus on real-world examples.

When a business decides that it wishes to acquire this type of instruction, it will have a variety of methods to do so. Courses offered by colleges and universities can help bring employees up to speed. Online courses are also beneficial because they can be administered to employees on-site. However, many businesses opt to have a specialized leadership training organization appear on-site and provide several days of planning sessions.

These specialized organizations combine the benefits of facilitator training to create a strategic planning training alternative that uses facilitation strategies to leverage the knowledge that executives have about the company. As opposed to a consultant who comes in, makes suggestions, and then leaves, these facilitators will use specialized techniques to help organizational leaders arrive at an optimal solution. Most of these organizations will then include a check-in after a certain period, usually mid-year, to ensure that proposed changes have been implemented.

For lasting change that will make it easier for companies to identify a strategic direction for the immediate and long-term, and to empower organizational leaders to develop a sense of direction for the organization, reach out to a leadership training company that combines strategic planning training and facilitator training.