Archive for Insurance
January 6, 2009 at 3:12 pm
· Filed under Administrative theory, Businesss Management, Christmas Shopping, Finance, Formal Organization, General Principles, Insurance, Modern Theory, Organization Structure, Organizational Design, classical school ·Tagged Management, Organizational Design
We are talking organization design in our blogs. Organizations are social units with specific purposes. The basic elements of organizations have remained the same over the years. Several disciplines provide the knowledge and the means to understand organizations. However, it is appropriate to look at organizations integrally in multi-disciplinary perspective. Three viewpoints have emerged, over the years in successive stages, each seeking to provide a window on the others. They are the classical approach, three streams stand out: bureaucracy, administrative theory and principles of scientific management. It is important to note that with the passage of time, the viewpoints have been changed or modified, but not replaced as such. Each major contribution brought new knowledge, awareness, tools and techniques to understand the organizations better.
Thus, today we are richer than ever before tin terms of our knowledge about approaches to understand organizations. We take example of portable car DVD players. Today there are so many companies who are manufacturing car DVD players like philips pet1002 , samsung DVD-L100 , JVC kd-avx33. One person can have all knowledge of such products at one desk. All the same, more knowledge meant reckoning with more complex variables to comprehend the complexities of human organizations. There is, as yet, no general, unified, universal theory as such. Organizations being diverse and complex in more senses than one, it is difficult, if not meaningless to be too general or too specific about them.
Organization structures based on classical bureaucratic principles are hierarchical. But modern organization theories attempted to modify them in the light of experience, changes in technology and knowledge about human behaviour. The centralized structures gave way to some sort of decentralization and thus transformed, partially at least, vertical (tall) organizations into horizontal (flat) ones, reflecting a shift in emphasis from command to consensus based self control. The relative conditions of instability and uncertainty transformed the classical mechanistic forms of management systems into organic ones.
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January 5, 2009 at 1:12 pm
· Filed under Businesss Management, Finance, Insurance, Management, Product Management ·Tagged Businesss Management, Finance, Management, Organizational Design, Software
This is the output or transaction side of the matrix. Depending on how many people holding a specialist orientation, either resource or output, the organization needs, these groupings can develop several echelons in response to the practical limits of the span of control of any line manager. At the foot of the matrix is the two-boss manager. This manager is responsible for the performance of a defined package of work. The manager is given agreed-upon financial resources and performance targets by superiors on the output side, and negotiated human and equipment resources from the resource manager. The two streams, taken together, constitute the work package. The manager is responsible for managing these resources to meet performance targets. To perform, the manager must handle high volumes of information, weigh alternatives, make commitments on behalf of the organization as a whole, and be prepared to be judge by the results. A manager of blinds company who are selling vertical blinds and roman shades online, need to use all information related to online business as well as the real customers. This form of organization induces the manager to think and behave like a general manager.
Even in a fully developed matrix organization, only a relatively small proportion of the total number of people in the organization will be directly in the matrix.
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December 26, 2008 at 11:50 am
· Filed under Businesss Management, Finance, Formal Organization, Insurance, Online Shopping, Organization Structure, Organizations, Product Management, Software, Types of Organizations, classical school ·Tagged blinds, Businesss Management, Finance, Formal Organization, Insurance, Management, Online Shopping, Organization Structure, Organizational aspects, Organizational Design, Organizations, Product Management, Software, Term Life Insurance, Types of Organizations
The discussion in the preceding section and an overview of literature on function vs product choice, permits us to observe that both forms of organization design have their own set advantages and disadvantages. The functional structure facilitates the acquisition of specialized inputs. In permits pooling of resources and sharing them across products or projects.
The organization can hire, utilize and retain specialists. However the problem lies in coordinating the varying nature and amount of skills required at different times. The product or project organization, on the other hand, facilitates coordination among specialists; but may result in duplicating costs and reduction in the degree of specialization. For example, a blinds manufacturing company who manufacture roller shades and woven wood shades, need to adopt product forms not functional. It depend on the type of business company is doing. A term life insurance company can go with functional while a motels industry need to select product. Thus, if functional structure is adopted, projects may fall behind; if product/project organization is chosen technology and specialization may not develop optimally. Therefore, the need for a compromise between the two becomes imperative.
The possible compromises between product and functional bases include, in ascending order of structural complexity:
- The use of cross-functional teams to facilitate integration. These teams provide some opportunity for communication and conflict resolution and also a degree of common identification with product goals that characterizes the product organization. At the same time, they retain the differentiation provided by the functional organization.
We will discuss on two other structural complexity in next post.
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December 24, 2008 at 9:07 am
· Filed under Businesss Management, Finance, Formal Organization, Insurance, Management, Online Shopping, Organization Structure, Organizational Design, Organizational aspects, Organizations, Product Management, Software, Types of Organizations ·Tagged Businesss Management, Finance, Formal Organization, General Principles, Management, Organization Structure, Organizational aspects, Organizational Design, Organizations, Product Management
Today we continue our talk on Product Versus Functional. Walker and Lorsch studies two plants which were closely matched in several ways. They were making the same product; their markets, technology, and even raw materials were identical. The parent companies were also similar; both were large national corporations that developed, manufactured, and marketed many consumer products. In each case divisional and corporate headquarters were located more than 100 miles from the facilities studied. The plants were separated from other structures at the same site, where other company products were made.
Both plants had very similar management styles. They stressed their desire to roster employee’s initiative and autonomy and placed great reliance on selection of well-qualified department heads. They also identified explicitly the same two objectives. The first was to formulate, package, and ship the products in minimum time at specified levels of quality and at minimum costs-that is, within existing capabilities. The second was to improve the capabilities of the plant.
In each plant there were identical functional specialists involved with the manufacturing units and packing unit, as well as quality control, planning and scheduling, warehousing, industrial engineering, and plant engineering.
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December 4, 2008 at 10:15 am
· Filed under Administrative theory, Businesss Management, Insurance, Management, Organization Structure, Organizational Design, Organizations, Types of Organizations ·Tagged Administrative theory, Businesss Management, Finance, Insurance, Management, Modern View Point, Online Shopping, Organization Structure, Organizational Design, Organizations, Software, Types of Organizations
Today we discuss on Typology of Organization Structure. This will help to understand the basis for evolving different types of organizational structures and examine the relative merits and demerits of different types of organizational structures.
INTRODUCTION OF TYPOLOGY OF ORGANIZATION STRUCTURES
We are going to discuss briefly on the typology of organization structures. Organization structures based on classical bureaucratic principles are hierarchical. But modern organization theories attempted to modify them in the light of experience, changes in technology and knowledge about human behavior. The centralized structures gave way to some sort of decentralization and thus transformed, partially at least, vertical (tall) organizations into horizontal (flat) ones, reflecting a shift in emphasis from command to consensus based self control. The relative conditions of instability and uncertainty transformed the classical mechanistic forms of management systems into organic ones. The advent of specialization and requirements of coordination had thrown up new issues and strategic choices concerning product versus function and matrix organization. The salient features of different organization structures referred to above are briefly outlined here to provide and overview than comprehensive understanding of the underlying principles. We will discuss more in next post.
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December 4, 2008 at 7:25 am
· Filed under Administrative theory, Businesss Management, Christmas Shopping, Finance, General Principles, Gift Shopping, Insurance, Management, Modern View Point, Online Shopping, Organizational Design, Organizations, Software ·Tagged Christmas Shopping, gift card, Online Shopping
Countdown started for Christmas. Everyone in family started planning how to manage Christmas holiday. I like to share my though on that as I think it is concern for every family. We try to minimize the gift exchanging in our family by pulling names, I still seem to have a long list every year. These are some gifts that I’ve appreciated getting, as well as some gifts that I think were good gifts to people that I don’t know as well. Mostly, as per my nature I tried to pick things that I didn’t think were completely common.
Last year I was having a bad experience for Christmas shopping. When I went to a gift card mall, it was over crowded and I need to stand in queue to get my bill and get my gift. This year I decided to go with Christmas shopping from home. I am going to buy gift card online. I was surfing on net to find good gift shopping website. Blackhawk Network is one of the good names I found on web. I want to buy gift for my wife and my two kids. I was so surprise to see there were so many gifts available on net which make me surprise. It really make me feel that why I am not shopping online.
Lastly, I was concern with the payment safety as well as delivery of my shopping. I was looking for someone who have secure server and trusted site logo, so I can trust them. At last I find out and I did my Christmas shopping online. I am waiting for the products to be delivery to me. Let’s see!!
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December 2, 2008 at 10:03 am
· Filed under Administrative theory, Businesss Management, Finance, Insurance, Management, Organizational Design, Software, scientific management ·Tagged Life insurance, life organization, manage life
We are talking about organizational design, development in this blog. In last blog we talked on modern view point. Today I like to talk about life insurance. Which I was working in my company, we receive a call from advance life insurance agents and he want to come to our company to talk on Term life insurance quotes they are offering.
We all were exited to know about term life insurance. He came to our company and explain us a brief idea about term life. He said term life insurance is life insurance which provides coverage for a limited period of time. The term period starts from 5 years, 10 years, 15 years, 20 years, 25 years and 30 years. He said we can add up security in our life with term life insurance. The term period is called relevant term period. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.
Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life. Term insurance functions in a manner similar to most other types of insurance. More in next post.
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November 4, 2008 at 4:31 pm
· Filed under Businesss Management, Finance, Insurance, Management, Organizational Design, Organizations ·Tagged finance management, Home Loan, Mortgage, Organization
We are a family of five. Me, my wife and my three children. My eldest son was in 2nd year of college when we decide to buy our own house. I and my wife are both working. That time we have our savings. So we decided to buy our own house. That house was payable within 10 years. And we have already on our third year of payment. My next son will be graduating in high school and will take up medicine. At first we still can afford to pay our monthly amortization. The time comes when we have a hard time to pay that amortization. With our past mistake we are having bad credit ratings. We are not prompt anymore in paying our amortization because we are concentrating for the tuition fees and other needs of my two sons in their college.
As we are failing to pay our monthly amortization, they charged us a high interest for the delay of payment. What I did is I asked my friend about a Mortgage Lending. Because I know that he is also applied for that. He recommended me that I should apply for the Home Mortgage Lending Agency they applied for. He told me that I will not have a hard time to pay for my monthly dues with them. He told me that they offer two kinds of mortgage. He chooses to have the adjustable rate mortgage. The first year of payment, the interest remains the same. Some problem with the adjustable rate mortgage is that the buyer becomes used to that low mortgage payment. When the rate changes the prime rate plus a certain extra percentage, payments can double or even triple making it hard for homeowners to afford the rise. The second type is the fixed rate mortgage. With this type of mortgage, since it is the most common type of loan the interest rate when applied for a loan was lock-in. This will be the charged interest rate thought out the length of the mortgage usually fifteen years, twenty years. It covers the portion of the interest and a small portion of the principal for your mortgage payment. Some time low down payment are key part of this option.
I prefer to choose the fixed rate mortgage, because I think it would be easy for me and my wife to pay for that. I asked my friend to go with me and I will apply for Home Mortgage Loan soon. Now we will have no problem anymore and we will still have our own house.
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November 4, 2008 at 7:24 am
· Filed under Businesss Management, Finance, Insurance, Management, Organizations ·Tagged Bureaucracy, Dsfunctional Apects, Management
We talk in our previous post that Bureaucracies, particularly in large complex organizations, may have unintended consequences which are often referred to as dysfunctional aspects of bureaucracy.
Empire building
People in bureaucracy often view that the office that hold bestows on them a sense of ownership and privilege with the result there could often be a tendency to use one’s position and resources than of the organization. When we talk about
As Max Weber observed, once it is fully established, it is hard to destroy bureaucracy even it is has outlived its utility. A common tendency in bureaucracies is to relate power and prestige with the number of subordinates a person has. Therefore the effort, more often than not, it to increase the number of people employed under one’s control.
Red Tape
Bureaucracies procedures involve much paper work and routing through proper channel causing inordinate delays and frustration. The procedures are nevertheless valued, perpetuated and multiplied for their own sake also to pass the buck to others in the chain of hierarchy as far as responsibility for failure go. The negative aspects of bureaucracies can however be overcome if the individual needs and organizational goals are properly reckoned.
Whatever the progress in the thinking about and in the actual working of modern organizations, bureaucracy has remained an integral and concomitant feature. There is no use wishing it away. There us every need to understand it better and cope with the possible problems effectively and proactively.
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October 31, 2008 at 5:08 pm
· Filed under Businesss Management, Finance, Insurance, Management, Organizational Design, Organizations, Software ·Tagged Business Management, Dysfunctional Aspects, Impersonality, Management, Rigidity
We are talking Dysfunctional Aspects. We talked Rigidity and Impersonality in our previous talk. Today we are going to talk about Displacement of Objectives and Compartmentalization of Activities.
Displacement of Objectives
Rules originally devised to achieve organizational goals at each level become an end in themselves independent of organizational goals. Thompson calls such bureaucratic behavior as a process of “inversion of ends and means”. When individuals holding office at lower levels pursue personal objectives or objectives of sub units, the overall objectives of the organization may be neglected. When objectives get so displaced it is often difficult for managers at higher levels or even for the other constituents of the organizations such as consumers and stock holders to seek redress.
Compartmentalization of Activities
Specialization and division of labor are encouraged in bureaucracies to improve organization effectiveness. But the resulting categorization breeds the notion of watertight compartmentalization of jobs, restricting people from performing tasks that they are capable of performing. For example, a pipe fitter can install a pump, but is prohibited from making the electrical connection. It would also encourage a tendency to preserving existing jobs even when they become redundant. The sequential flow of work may usually have an element of idle time at almost every level. The bickering over respective jurisdictions based on specialization and categorization may also often induce dysfunctional conflict in the place of coordination and cooperation among various submits of an organizations.
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