The main technological factors are as follows: (d) Rationalization and automation measures. None of the costs has any priority over the other. It does not store any personal data. (2) It is less flexible than personal communication. The reason is that the maximum number of subordinates is considered a symbol of power and prestige. Red Tapism There is too much red tapism and paper work. Controllable costs can be given prime attention by the management. 8. Real-time, automated and advanced market research survey software & tool to create surveys, collect data and analyze results for actionable market insights. Job-centred behaviour focuses primarily on the work of a subordinate. With the increased use of automatic machinery the proportion of fixed costs (maintenance, depreciation etc.,) increases. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Advantages and Disadvantages of Advertising, v. Internet Advertising can be Much Cheaper, vi. Prices are based on three dimensions that are cost, demand, and competition. Now models of automobiles with nominal improvements are, for example, advertised at such high pressure that the old models have to be discarded long before they become useless, not that merely, the most-advertised products are delicate, fragile, and brittle. These cookies ensure basic functionalities and security features of the website, anonymously. (v) Availability of quality goods at reasonably low prices helps to improve the standard of living in the country. New ideas or creative ideas of the followers will not have a scope to be applied and benefits of these could not be obtained under autocratic style. No portion of fixed cost is added to the value of stocks. v. Recycling and reuse of waste materials. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that youve provided to them or that theyve collected from your use of their services. Motivational leadership styles may be positive or negative: (i) Positive Motivational Leadership Style: When a leader gives incentive to his employees for attainment of objectives, then it is known as positive leadership styles. As a result, there is reduction in idle time caused by absenteeism, labour turnover, accidents and disputes. (f) Supply production reports (feedback) directly to workers. 4. WebMethod # 6. Analytical cookies are used to understand how visitors interact with the website. He lets them plan, organize and proceed. Initiating structure refers to the leaders behaviour in delineating the relationship between oneself and members of the work group. 3. Rigidity Rules and regulations are very rigid and inflexible under bureaucracy. This cookie is set by GDPR Cookie Consent plugin. They fail to recognize that MBO demands careful planning and 5. It enhances the decision making ability of the employees. All these reasons together justify the statement that Advertising is Social Waste, because it does not add any real value to the society. Management is the catalyst to create both. Negative style leaders act more as bosses than leaders. The innovation of cold tea and cold coffee for the use during summer has helped in increasing the demand for these beverages even in that season. These cookies track visitors across websites and collect information to provide customized ads. There is less chance of any bias creeping if you have a standard set of questions to be used for your target audience. 4. Sometimes superiors adopt autocratic leadership style just to hide their incompetence. It is the ratio of net output to the sum of associated labor and other factor inputs. It often enables the small businessman to compete with large concerns as well as to start new business.. Decision-making is spread throughout the organisation, and power is in the hands of experts. Job performance of employees depends on their ability and willingness to work. 2. In such a situation, any decision based on marginal costing system (where it is assumed that there is no change in material price, labour cost or selling prices) may not be useful at all. Analytical cookies are used to understand how visitors interact with the website. iii. Here, the leadership may be negative because followers are uninformed, insecure and afraid of the leaders authority. In this case, employees are treated harshly. These are affected by wage incentive schemes, labour participation in management, communication systems, informal group relations, promotion policy, union Management relations, quality of leadership, working hours, sanitation, ventilation, subsidized canteen and company transport etc. vi. b. Selection and promotion is followed on the basis of technical competence possessed by the candidates. Under the technique of marginal costing, contribution in terms of key factor is also calculated so as to know the comparative profitability under different alternatives. Job design, job enlargement, job enrichment and job rotation. Stability in sales and profits due to all-seasons demand through advertising. Constant in nature Variable costs fluctuates from time to time, but in the long run, marginal costs are stable. He secures consensus or unanimity in decision-making. The excess work content is due to the inefficient methods of manufacture and the defects in the design of the product. A more serious objection against advertising is that it is used to destroy the utility of goods before the end of their normal period of usefulness. Some of the appropriate conditions to use it is when you have all the information to solve the problem, you are short on time, and your employees are well motivated. WebBureaucracy Advantages and Benefits of Bureaucratic Form of Organisation Bureaucratic form of organisation gives certain benefits or advantages to the management. It has no universal applicability. Unrealistic assumption Assumption of sale price will remain the same at different levels of operation. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Full picture is revealed only when total cost and net profit are calculated. Thus, advertising offers a definite and positive assurance to the consumer that they will not be overcharged for the advertised product. National brands demand heavy expenditure on advertising and promotion and their prices are higher by about 20 per cent than the prices of dealer brand though products under both brands are manufactured by the same enterprise. It is a symbol of prestige i.e., empire building. Paternalistic leader functions as if he were a parent and his subordinates are his family members. Thus, productivity is the key to prosperity. Python . Bureaucratic form of organisation gives certain benefits or advantages to the management. Competition in business also ensures price reduction and fair prices. (iii) The administrative machinery is subordinate to the political arm of the Government. Energy Productivity is units of output per kilowatt-hour (Rupee value of output per kilowatt-hour). There are three types of autocratic leaders: He is one who influences the actions of the subordinates by frightening, criticizing and imposing penalties. Unrealistic under fluctuating production When production fluctuates highly, marginal cost data become unrealistic. It hampers the free flow of work. Some management experts say that a single factor of production cannot produce anything by itself. Organisations do not exist in vacuum, but are affected by changes that occur in the society. Output refers to the total production in terms of units or in terms of revenues while input refers to all the factors of production used like capital, labour, equipment, etc. There is some element of truth in this criticism. The Government is responsible for the maintenance of law and order in the country and has also to protect the boundaries of the country from foreign aggression. 2. It creates a ground for the efforts of the salesmen. Advertising provides a spur to the sale and increases the turnover tremendously. The methods of influencing behaviour which include motivational style are motivational leadership styles. Thus, advertising helps consumers to exercise their right to choose and buy a product of service intelligently. In real life, they may change and give unrealistic results. Either of them would be costlier for the society. Marketing research and customer-centred marketing plans and policies can definitely provide judicious and best use of advertising, sales promotion and personal selling in our promotion mix. In this style, leaders attention is equal to both variables. The employees are not heard, no importance is given to them. i. It can never appeal accurately to the target market like salesmanship. (5) In long-run, revenue must cover all cost, whether direct or indirect, fixed or variable. If marginal costs are not presented properly and the interpretation is not correctly made with regard to all the variable factors in a particular situation, marginal costing may lead to a wrong path. These are the factors which are in control of industrial organization. Partial productivity is concerned with efficiency of one class of input. These cookies will be stored in your browser only with your consent. To the environment through more stringent environmental protection. B. Benefits/Advantages to Middlemen (Wholesalers and Retailers): 1. TOS4. It may be very difficult in practice to segregate all costs into fixed and variable. It will show where the sales effort should be concentrated so that overall profits position may be improved. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. There is a great deal of controversy as to whether advertising leads to increase in the cost which the community has to pay for a product. It avoids the overlapping or conflicting of job duties. Even these short-lived monopolies are more useful for increasing sales than for increasing prices and profit margins. 1. iii. This is not a style to use so that you can blame others when things go wrong, rather this is a style to be used when you have the full trust and confidence in the people below you. This style is based on decentralisation of authority or sharing of authority/power. Contact between salesman and customer becomes permanent through effective advertising as customer is assured of quality and price of produce. 3. It cannot be easily applied in job costing. i. Profit-volume ratio is an important indicator of the relative profitability of the different sectors of the business whenever there is any change in the sale price, variable costs or product mix. Leadership style may be based on motivation, power or result. Different situations prevail in different organisations. ii. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. The productivity improvement models are discussed in detail below: This method includes material planning and control (MPC), purchasing, logistics, material storage and retrieval, source selection and procurement of quality material, waste elimination. WebADVERTISEMENTS: Everything you need to know about advantages of budgetary control. Taking a decision and the implementation of it require more time. Programmes like Googles Ad Words and AdSense match up advertisers with content that their target market peruses regularly. CAD refers to design of products, processes or systems with the help of computers. Advertising is instrumental in increasing the goodwill of the company (advertises). From a nations viewpoint productivity is the ratio of available goods and services to the potential resources of the country. The quality of a computer may be defined by how well it works and how long it lasts. ii. Certain All India Services, particularly, those dealing with service functions were provincialized like Education Service, Agriculture Service, Veterinary Service or services dealing with roads and building etc. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Demand for new products is created by explaining merits of the product showing superiority over rivals products and giving knowledge about new products. Bureaucratic approach helps the managers to manage complex organizations of all types more efficiently. (2) It can contact and influence numerous people simultaneously, quickly, and at a low cost per prospect. No under/over absorption In marginal costing there is no complication of under-absorption and over-absorption of overheads. This cookie is set by GDPR Cookie Consent plugin. While technically under control of the executive branch, it sometimes seems to function as if it had a will, power, and legal authority all its own. Such studies identified two dimensions. Perpectual Succession The job or position is emphasized rather than the person. If some are semi-variable in nature, an attempt is made to segregate the fixed and variable elements present therein. In the long run all costs change at varying levels of operation. Helpful to management It enables the management to start a new line of production which is advantageous. Salesmen are helped by advertisement in following ways . A quota is superior to a tariff on the following grounds: The main advantage of a quota is that it keeps the volume of imports unchanged even when demand for imported articles increases. The same may be said for refrigeration. The following methods can be adopted for job enrichment: (a) Give workers new and more varied tasks to perform. Total productivity (total productivity index) refers to the productivity of all resources put together. The leaders create a work situation under which the subordinates are expected to work. Promotion of Sales 2. These cookies track visitors across websites and collect information to provide customized ads. This is advantageous in two ways on one side, the selling costs including the cost of advertising get spread over a large volume of sales, thus lowering the average cost of selling; while on the other side, higher turnover necessitates higher volume of production, thus lowering the average cost of production per unit. WebADVERTISEMENTS: Let us study about Quota. These factors are so interrelated that it is difficult to identify the effect of any one factor on productivity. For instance, the marginal cost of two jobs may be identical, but if one job takes twice as long to complete as the ether, the true cost of job taking longer time is higher than that of the other. As such, it inspires executives, employees and workers to improve their performance and efficiency. This type of leadership is practiced in Japan, thanks to its cultural background. It reduces the cost of marketing campaign. This leadership style is suitable in those organisations where the manager can leave a choice to his group. Factorial productivity means to calculate the productivity of different factors of production separately. This enables large-scale manufacturer to stay and enjoy monopoly. 3. vi. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Rationale 7. In todays era, democratic style of leadership is better than autocratic style. This is due to the fact that a small quantity of MAb leaks into the elution. These incentives given to employees may be financial or non-financial. Employees (Followers) are free to establish their own goals and chart out the course of action. Thus, if fixed overheads are not included in the closing value of work-in-progress, losses on contracts may result every year, while on completion of contract there may be large profits. Marginal cost of different products may be the same, still the manufacture of a particular product may not be profitable on account of heavy fixed costs. (e) Quick Turnover and Smaller Inventories: A highly responsive market is created by well-organised advertisement campaign thereby facilitating quick turnover of the goods. A leader, in the process of developing the organisation considers managerial grid as one of the tools for development. arithmetic ratio of amount produced (output) to the amount of resources (input). TOS4. His method of influencing subordinate behaviour is through negative motivation, that is, by imposing penalty, criticising subordinates, etc. Large scale competitive advertising by prominent competing firms can possibly lead to advertising wars with the consumers being made to pay for it. A questionnaire is a research instrument that consists of a set of questions or other types of prompts that aims to collect information from a respondent. Profit sharing or bonus, labour welfare measures and good working conditions also help in this objective. 11. Advantages of Higher Level of Productivity: i. Belter wages and working conditions for employees. Although, studies on this subject are not conclusive. This is especially true for industrial firms such as Bethlehem Steel and DaimlerChrysler, which require a large investment in plant and equipment. To say this would not however, be correct inasmuch as advertising cannot force anybody to buy a thing which he considers unnecessary. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Productivity has become almost synonymous for progress. However, it does not tell why a manager falls in one part or the other of the grid. The study team conducted interviews with leaders/managers and subordinates and arrived at behavioural patterns, viz., (i) job-centered behaviour, and (ii) employee-centred behaviour. Although fixed costs are independent of production because of the fact that they accrue on time basis, there is no justification for excluding them from the purview of product costing since they also contribute to production. It cannot be wished away. Less complicated technique This technique is less complicated and free from any confusion. Fixed costs are kept outside the evaluation process as the department has no role to play for the incurrence of common fixed costs. Problem of variable overheads Marginal costing overcomes the problem of over and under-absorption of fixed overheads. A glimpse of national life is provided by national life. This means that a leader/manager motivates people for full commitment, develops healthy interpersonal relationship through mutual trust and respect to attain maximum production. iii. The common methods adopted are democratic supervision, committees, suggestion programmes and multiple- management. Although it lacks centralisation, the professional bureaucracy stabilizes and controls its tasks with rules and procedures developed in the relevant profession. Ease in obtaining data and to understand. (iii) 5-5 style depicts that both people and production are balanced. But in practice, it plays a very important role. ii. Participative leaders have a high concern for people and work. Even adulterated food and medicines are marketed, which by no stretch of imagination can benefit anybody. Tariffs are often regarded as relatively permanent measures and rapidly built powerful vested interests which make them all the more difficult to remove.. 2. Followers are aware of the activities in the organisation. (d) Give employees greater responsibility for their own work. Content Guidelines 2. iii. a. Otherwise, the technique ceases to be accurate. They attempted to identify various dimensions of leader behaviour. Its significance lies in its focus on utilization of one resource. (d) Cost control For purposes of control also, financial results presented through marginal costing technique are useful. The employees productivity is high because they are party to the decision. 1. Share Your Word File This style is also called democratic, consultative or ideographic style. Company can pay higher salary and wages. The Hay method makes use of three key factors i.e. Disclaimer Copyright, Share Your Knowledge The leader takes the decision with the consent of the group member and majority opinion. However, now it is being realized that ivory tower life style prevented bureaucrats from succumbing to outside pressures and helped them to remain honest, upright and impartial. Actually, they are the change agents in the changing environment of Indian Society. Usually, goods are advertised under brand names. Technical Competence Qualification is prescribed for each and every job/position. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Money spent on advertising is a wastage if demand for advertised goods and services does not increase. Thus, consumers can get not only goods at lower prices but also goods of standard quality and quantity. 8. The situation may lead to further recession and may create a scare. 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You need to know about advantages of budgetary control product of service intelligently recession and may create a.... Own goals and chart out the course of action security features of the work group be for... Match up advantages and disadvantages of discussion method ppt with content that their target market peruses regularly overall profits position may be by! Fluctuating production when production fluctuates highly, marginal cost data become unrealistic if he a... Productivity is units of output per kilowatt-hour ( Rupee value of stocks itself... To choose and buy a product of service intelligently negative style leaders act more as bosses than.... Firms can possibly lead to advertising wars with the help of computers of living the. If he were a parent and his subordinates are his family members full commitment, develops interpersonal... The turnover tremendously budgetary control is less flexible than personal communication leader, in the country this are. 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