Real Estate Investment-A Quick Tour

What is land speculation? The land venture is the speculation of assets in monetary resources or property rights with a specific end goal to get the arrival or money related proclamations. A portion of the ways this can have is the arrival of budgetary return, resource gratefulness, or the recuperation side (for instance, to purchase the land around an extravagance advancement guarantees the perspective of the encompassing green spaces and “holds” the high cost for absence of a contending offer), among others What are the conceivable types of land speculation? Likewise with any venture, land speculation benefit. Notwithstanding, in land contributing there are numerous approaches to accomplish benefit: 1. Purchase and offer purchase, union and re-offer esteem, consequently getting a monetary resource, which can include valueof the accompanying ways:Works By performing reclamation work or renovating can add to property estimation significantly higher than the cost of similar Projects through the outline endorsement of development/extension/change of utilization (eg move from industry to housing)extends the estimation of the property Growing business sector When the market is developing, you can basically get themselves, proceeded for a period recommended and re-offer Buy well

When you purchase beneath the market cost, can backpedal to offer at market cost along these lines acquiring an advantage Assignment of position-may surrender rights, for example, surrendering a position in a preparatory contract of offer, since the purchaser will pay a premium to the underlying speculator Highlight properties now and again it is conceivable to make a highlight of a property eg a house with an expansive field where you can highlight a piece that will serve to fabricate another house. In these cases the benefit can be created by offers of shares coming about because of, or offer of a gathering, leaving the rest far beneath the genuine cost or no cost Buy and offer property-pay purchases these cases umimóvel, recouped and leases up. At that point the property is sold to a financial specialist keen on settled salary and valuation is finished by correlation with other conceivable utilizations of cash, for example, bank stores or interest in securities and shares.Buy-purchase for execution, get ready available to be purchased and rent, and the benefit to net rents, in addition to the valuation of the property Housing can get yourself a small amount, a building or an arrangement of units and rents to showcase prices.Before you lease should recoup (if still utilized), prepare (alternatively apparatuses and furniture) and set the principles, for example, the objective client, the sort of requesting ensures (underwriter bank ensures, and so forth.)

The sort contract and the agreement term.Trade, administrations and industry-for this situation the objective client is an organization and along these lines may not be important to redesign the space and hardware. Notwithstanding, it is critical to characterize the kind of organizations that would prefer not to permit the space being referred to (eg a bar night in a private building), the sort of guarantee, the kind of agreement and its span. It is likewise vital to the transaction of attempts to be done and state in which the occupant consents to leave the property.Other-there are elective types of speculation wage, for example, parts of the cases incorporated into occasion resorts, lodgings worked by real universal systems, etc.Other approaches to benefit from land, there are numerous different approaches to benefit from land

Waste Management Solutions: Five Crafty Ways To Reuse Plastic

Every year there is approximately 333,557 tons of plastic waste tossed into the ocean. Plastic pollution is a toxic hazard that threatens the habitats of ocean and land wildlife. In addition, the mass production of plastic contributes to the dilution of natural resources and increases the burning of fossil fuels.

Waste management companies across the globe are seeing an uptick in plastic pollution-and most are encouraging people to avoid it. Sometimes, plastic is unavoidable-however reusing it can minimize production which is important for the environment. Here’s a look at five crafty ways to reuse plastic materials.

1. Refill Plastic Jugs

Milk jugs, plastic orange juice cartons, and gallon water jugs are great for lemonades and punches. Although it’s encouraged not to use them for drinking too long, it doesn’t mean you have to throw them right in the recycling bin. Fill them with non-consumable items such as glue, dishwashing detergent, or an anti-freeze mix.

2. Make Plastic Bags Useful

One of the biggest headaches for a waste management company is plastic bags. Most of these bags aren’t biodegradable and eventually will end up in oceans or streams. Plastic bags can be used for a variety of projects, including:

– Carrying school lunches

– Making fashionable purses and bags

– Worn as booties over shoes

– Piping bags for cake decoration

The most damaging type of plastic bags come from the grocery store. Avoid using them by purchasing reusable shopping bags or asking the cashier for a paper option.

3. Turn Water Bottles Into Wire

Every day, people throw away thousands of plastic water bottles that end up in a waste management facility or landfill. Water and small plastic soda bottles are comprised of a thicker plastic and are perfect for making wire. Use industrialized scissors, wire cutters, or a utility knife to cut thick or thin strips of plastic. These makeshift wires are great and prevent purchasing and using plastic zip ties.

4. Keep the Bottle Caps

Caps from soda bottles and plastic jugs are hard to recycle-however, they can be used for an assortment of projects. Conserving bottle caps can be useful for things such as:

– Creating a push cushion ring for sewing

– Decorative art projects

– Making jewelry such as earrings, rings, and necklaces

– Fusing them together to make pill holders

Most bottle caps aren’t biodegradable and linger in a waste management facility for awhile. Large bottle caps can also be used as a buffer between furniture legs and flooring-especially fine grain wood and carpets.

5. Turn Two-Liter Bottles Into Planters

Two-liter bottles have an array of uses. A popular option is cutting it in half and using the top piece as a funnel. However, the bottom half of a two-liter bottle can be used to create a planter. Plastic planters are great for small plants such as herbs and succulents.

Alternatives to Reducing Plastic Waste

Waste management companies, scientists, and environmentalists can agree that plastic waste is a growing problem for Mother Earth. Reusing plastic materials isn’t always a viable option, however, there are alternative means such as recycling, using glass and ceramics, and avoiding the purchase of non-recyclable plastic items.

An Introduction to the Scientific Theory of Management

Scientific management theory was proposed by Frederick Winslow Taylor in the first decade of the 20th century, is the first coherent theory of administration. According to this theory the same principles of management can be applied to all social entities. The governing policies for our homes, farms, state, business, and church, have the same underlying principles. It emphasized on improvements in the lower level of the company rather than at top management. It aimed at studying the relationship between the physical nature of work and the physiological nature of the workmen. It stressed upon specialization, predictability, technical competence and rationality for improving the organizational efficiency and economy.


Taylor gave the following four principles which according to him can be used universally:

-Construct a science for each element of a man’s work.

-Scientifically select, train, teach and develop workmen.

-Management should fully cooperate with workers.

-The division of work and responsibility between management and the workers must be shared equally.

Scientific management, according to Taylor, involves a complete mental revolution on the part of workers towards their duties, work, fellow men and their employers; and on the part of managers, towards their employees and their problems.


The techniques of scientific management facilitate the application of principles of scientific management mentioned below:

FUNCTIONAL FOREMANSHIP: Under this, a worker is supervised and guided by eight functional foremen. Four of these are responsible for planning viz. Order-of-work-and-route-clerk, Instruction-card clerk, Time-and-cost clerk, Shop Clerk. The other four are responsible for execution and serve on shop floor namely, Gang boss, speed boss, inspector and Repair boss.

MOTION STUDY: It involves the observation of all the motions comprised in a particular job and then determination of best set of motions.

TIME STUDY: It is used to determine the standard time for completion of work.

DIFFRENTIAL PIECE RATE PLAN: Under this plan, a worker is paid a low piece rate up to a standard, a large bonus at the standard and a higher piece rate above the standard.

EXCEPTION PRINCIPLE: It involves setting up a large daily task by the management, with reward for achieving targets and penalty for not meeting it.


Scientific management came to be criticized and opposed by various sections for the following reasons:

-It was concentrated on the shop floor. It did not stress on the higher levels of management.

-It was criticized as a mechanistic theory of organization as it neglected the human side of the organization. It treated worker as a machine and sought to make it as efficient as machine itself.

-It was criticized on the ground that it underestimated and oversimplified human motivation by explaining human motivation in terms of monetary aspects only.

-It was also opposed by the managers due to two reasons. First, they would lose their judgment and discretion due to the adoption of scientific methods. Second, their work and responsibilities increases under Taylorism.

The Importance of Project Closeout and Review in Project Management.


The well known English phrase “last but not least” could not better describe how important the project closeout phase is. Being the very last part of the project life-cycle it is often ignored even by large organizations, especially when they operate in multi-project environments. They tend to jump from one project to another and rush into finishing each project because time is pressing and resources are costly. Then projects keep failing and organizations take no corrective actions, simply because they do not have the time to think about what went wrong and what should be fixed next time. Lessons learned can be discussed at project reviews as part of the closeout phase. Closure also deals with the final details of the project and provides a normal ending for all procedures, including the delivery of the final product. This paper identifies the reasons that closeout is neglected, analyzes the best practices that could enhance its position within the business environment and suggest additional steps for a complete project closeout through continuous improvement.

Project managers often know when to finish a projects but they forget how to do it. They are so eager to complete a project that they hardly miss the completion indicators. “Ideally, the project ends when the project goal has been achieved and is ready to hand over to customer” (Wellace et. al, 2004, p156). In times of big booms and bubbles, senior management could order the immediate termination of costly projects. A characteristic example of that is Bangkok’s over investment in construction of sky-scrapers, where most of them left abandoned without finishing the last floors due to enormous costs (Tvede, 2001, p267). Projects heavily attached to time can be terminated before normal finishing point if they miss a critical deadline, such as an invitation to tender. Kerzner (2001, p594) adds some behavioural reasons for early termination such as “poor morale, human relations or labour productivity”. The violent nature of early termination is also known as ‘killing a project’ because it “involves serious career and economic consequences” (Futrel, Shafer D & Shafer L, 2002, 1078). Killing a project can be a difficult decision since emotional issues create pride within an organization and a fear of being viewed as quitters blurs managerial decisions (Heerkens, 2002, p229).


The most direct reason that Project Closeout phase is neglected is lack of resources, time and budget. Even though most of project-based organizations have a review process formally planned, most of the times “given the pressure of work, project team member found themselves being assigned to new projects as soon as a current project is completed” (Newell, 2004). Moreover, the senior management often considers the cost of project closeout unnecessary. Sowards (2005) implies this added cost as an effort “in planning, holding and documenting effective post project reviews”. He draws a parallel between reviews and investments because both require a start-up expenditure but they can also pay dividends in the future.

Human nature avoids accountability for serious defects. Therefore, members of project teams and especially the project manager who has the overall responsibility, will unsurprisingly avoid such a critique of their work if they can. As Kerzner (2001, p110) observe, “documenting successes is easy. Documenting mistakes is more troublesome because people do not want their names attached to mistakes for fear of retribution”. Thomset (2002, p260) compares project reviews with the ‘witch hunts’ saying that they can be “one of the most political and cynical of all organizational practices where the victims (the project manager and the team) are blamed by senior management”. While he identifies top management as the main responsible party for a failure, Murray (2001) suggest that the project manager “must accept ultimate responsibility, regardless of the factors involved”. A fair-minded stance on these different viewpoints would evoke that the purpose of the project review is not to find a scapegoat but to learn from the mistakes. After all, “the only true project failures are those from which nothing is learned” (Kerzner, 2004, p303).


When the project is finished, the closeout phase must be implemented as planned. “A general rule is that project closing should take no more than 2% of the total effort required for the project” (Crawford, 2002, p163). The project management literature has many different sets of actions for the last phase of the project life cycle. Maylor (2005, p345) groups the necessary activities into a six step procedure, which can differ depending on the size and the scope of the project:

1. Completion

First of all, the project manager must ensure the project is 100% complete. Young (2003, p256) noticed that in the closeout phase “it is quite common to find a number of outstanding minor tasks from early key stages still unfinished. They are not critical and have not impeded progress, yet they must be completed”. Furthermore, some projects need continuing service and support even after they are finished, such as IT projects. While it is helpful when this demand is part of the original statement of requirements, it is often part of the contract closeout. Rosenau and Githens (2005, p300) suggest that “the contractor should view continuing service and support as an opportunity and not merely as an obligation” since they can both learn from each other by exchanging ideas.

2. Documentation

Mooz et. al (2003, p160) defines documentation as “any text or pictorial information that describe project deliverables”. The importance of documentation is emphasized by Pinkerton (2003, p329) who notes that “it is imperative that everything learned during the project, from conception through initial operations, should be captured and become an asset”. A detailed documentation will allow future changes to be made without extraordinary effort since all the aspects of the project are written down. Documentation is the key for well-organized change of the project owner, i.e. for a new investor that takes over the project after it is finished. Lecky-Thompson (2005, p26) makes a distinction between the documentation requirements of the internal and the external clients since the external party usually needs the documents for audit purposes only. Despite the uninteresting nature of documenting historical data, the person responsible for this task must engage actively with his assignment.

3. Project Systems Closure

All project systems must close down at the closeout phase. This includes the financial systems, i.e. all payments must be completed to external suppliers or providers and all work orders must terminate (Department of Veterans Affairs, 2004, p13). “In closing project files, the project manager should bring records up to date and make sure all original documents are in the project files and at one location” (Arora, 1995). Maylor (2005, 347) suggest that “a formal notice of closure should be issued to inform other staff and support systems that there are no further activities to be carried out or charges to be made”. As a result, unnecessary charges can be avoided by unauthorized expenditure and clients will understand that they can not receive additional services at no cost.

4. Project Reviews

The project review comes usually comes after all the project systems are closed. It is a bridge that connects two projects that come one after another. Project reviews transfer not only tangible knowledge such as numerical data of cost and time but also the tacit knowledge which is hard to document. ‘Know-how’ and more important ‘know-why’ are passed on to future projects in order to eliminate the need for project managers to ‘invent the wheel’ from scratch every time they start a new project. The reuse of existing tools and experience can be expanded to different project teams of the same organization in order to enhance project results (Bucero, 2005). Reviews have a holistic nature which investigate the impact of the project on the environment as a whole. Audits can also be helpful but they are focused on the internal of the organization. Planning the reviews should include the appropriate time and place for the workshops and most important the people that will be invited. Choosing the right people for the review will enhance the value of the meeting and help the learning process while having an objective critique not only by the team members but also from a neutral external auditor. The outcome of this review should be a final report which will be presented to the senior management and the project sponsor. Whitten (2003) also notices that “often just preparing a review presentation forces a project team to think through and solve many of the problems publicly exposing the state of their work”.

5. Disband the project team

Before reallocating the staff amongst other resources, closeout phase provides an excellent opportunity to assess the effort, the commitment and the results of each team member individually. Extra-ordinary performance should be complemented in public and symbolic rewards could be granted for innovation and creativity (Gannon, 1994). This process can be vital for team satisfaction and can improve commitment for future projects (Reed, 2001). Reviewing a project can be in the form of a reflective process, as illustrated in the next figure, where project managers “record and critically reflect upon their own work with the aim of improving their management skills and performance” (Loo, 2002). It can also be applied in problematic project teams in order to identify the roots of possible conflicts and bring them into an open discussion.

Ignoring the established point of view of disbanding the project team as soon as possible to avoid unnecessary overheads, Meredith and Mandel (2003, p660) imply that it’s best to wait as much as you can for two main reasons. First it helps to minimize the frustration that might generate a team member’s reassignment with unfavourable prospects. Second it keeps the interest and the professionalism of the team members high as it is common ground that during the closing stages, some slacking is likely to appear.

6. Stakeholder satisfaction

PMI’s PMBoK (2004, p102) defines that “actions and activities are necessary to confirm that the project has met all the sponsor, customer and other stakeholders’ requirements”. Such actions can be a final presentation of the project review which includes all the important information that should be published to the stakeholders. This information can include a timeline showing the progress of the project from the beginning until the end, the milestones that were met or missed, the problems encountered and a brief financial presentation. A well prepared presentation which is focused on the strong aspects of the projects can cover some flaws from the stakeholders and make a failure look like an unexpected success.

Next Steps

Even when the client accepts the delivery of the final product or service with a formal sign-off (Dvir, 2005), the closeout phase should not be seen as an effort to get rid of a project. Instead, the key issue in this phase is “finding follow-up business development potential from the project deliverable” (Barkley & Saylor, 2001, p214). Thus, the project can produce valuable customer partnerships that will expand the business opportunities of the organization. Being the last phase, the project closeout plays a crucial role in sponsor satisfaction since it is a common ground that the last impression is the one that eventually stays in people’s mind.

Continuous improvement is a notion that we often hear the last decade and review workshops should be involved in it. The idea behind this theory is that companies have to find new ways to sustain their competitive advantage in order to be amongst the market leaders. To do so, they must have a well-structured approach to organizational learning which in project-based corporations is materialized in the project review. Garratt (1987 in Kempster, 2005) highlighted the significance of organizational learning saying that “it is not a luxury, it is how organizations discover their future”. Linking organizational learning with Kerzner’s (2001, p111) five factors for continuous improvement we can a define a structured approach for understanding projects.

This approach can be implemented in the closeout phase, with systematic reviews for each of the above factors. Doing so, project closure could receive the attention it deserves and be a truly powerful method for continuous improvement within an organization. Finally, project closeout phase should be linked with PMI’s Organizational Project Management Maturity (OPM3) model where the lessons learned from one project are extremely valuable to other projects of the same program in order to achieve the highest project management maturity height.


1. A Guide to Project Management Body of Knowledge, 2004, 3rd Edition, Project Management Institute, USA, p102

2. Arora M, 1995, Project management: One step beyond, Civil Engineering, 65, 10, [Electronic], pp 66-68

3. Barkley & Saylor, 2001, Customer-Driven Project Management, McGraw-Hill Professional, USA, p214

4. Bucero A, 2005, Project Know-How, PM Network, May 2005 issue, [Electronic], pp 20-22

5. Crawford K, 2002, The Strategic Project Office, Marcel Dekker, USA, p163

6. Department of Veteran Affairs, 2004, Project Management Guide, Office of Information and Technology – USA Government, p13

7. Dvir D, 2005, Transferring projects to their final users: The effect of planning and preparations for commissioning on project success, International Journal of Project Management vol. 23, [Electronic], pp 257-265

8. Futrel R, Shafer D & Shafer L, 2002, Quality Software Project Management, Prentice Hall PTR, USA, p1078

9. Gannon, 1994, Project Management: an approach to accomplishing things, Records Management Quarterly, Vol. 28, Issue 3, [Electronic], pp 3-12

10. Heerkens G, 2002, Project Management, McGraw-Hill, USA, p229

11. Kempster S, 2005, The Need for Change, MSc in Project Management: Change Management module, Lancaster University, [Electronic], slide 16

12. Kerzner H, 2004, Advanced Project Management: Best Practices on Implementation, 2nd Edition, Wiley and Sons, p303

13. Kerzner H, 2001, Project Management – A Systems Approach to Planning, Scheduling and Controlling, 7th Edition, John Wiley & Sons, New York, p594

14. Kerzner H, 2001, Strategic Planning For Project Management Using A Project Management Maturity Model, Wiley and Sons, pp 110-111

15. Lecky-Thompson G, 2005, Corporate Software Project Management, Charles River Media, USA, p26

16. Loo R, 2002, Journaling: A learning tool for project management training and team-building, Project Management Journal; Dec 2002 issue, vol. 33, no. 4, [Electronic], pp 61-66

17. Maylor H, 2005, Project Management, Third Edition with CD Microsoft Project, Prentice Hall, UK, p345

18. Mooz H, Forsberg K & Cotterman H, 2003, Communicating Project Management: The Integrated Vocabulary of Project Management and Systems Engineering, John Wiley and Sons, USA, p160

19. Murray J, 2001, Recognizing the responsibility of a failed information technology project as a shared failure, Information Systems Management, Vol. 18, Issue 2, [Electronic], pp 25-29

20. Newell S, 2004, Enhancing Cross-Project Learning, Engineering Management Journal, Vol. 16, No.1, [Electronic], pp 12-20

21. Organizational Project Management Maturity (OPM3): Knowledge Foundation, 2003, 3rd Edition, Project Management Institute, USA

22. Pinkerton J, 2003, Project Management, McGraw-Hill, p329

23. Reed B, 2001, Making things happen (better) with project management, May/Jun 2001 issue, 21, 3, [Electronic], pp 42-46

24. Rosenau & Githens, 2005, Successful Project Management, 4th Edition, Wiley and Sons, USA, p300

25. Sowards D, 2005, The value of post project reviews, Contractor, 52, 8, [Electronic], p35

26. Thomset R, 2002, Radical Project Management, Prentice Hall PTR, USA, p260

27. Whitten N, 2003, From Good to Great, PM Network, October 2003 issue, [Electronic]

28. Young, 2003, The Handbook of Project Management: A Practical Guide to Effective Policies and Procedures, 2nd Edition, Kogan Page, UK, p256

The Importance of Import and Export

No matter how rich a country is, how small or big it is, no nation is self-sufficient. It will never be totally independent from the rest and have everything it needs. Every country, no matter how powerful it is, needs raw materials from other countries to produce products that it needs or that is needed by other countries. In short, every country is involved in import export transactions.

Hundreds of years ago, Europe, the Far East and the United States were already importing and exporting goods between themselves and other countries. It had already set up a simple system of trading and global sourcing, albeit on a smaller scale. Today, import and export has become a very important part of the economy. This business has flourished into a more sophisticated but convenient, smoother and safer business. Risks are minimized with more international trading laws that aim to protect both importers and exporters. Regulating and governing bodies such as the World Trade Organization (WTO) has streamlined the export import system. Trade agreements like the North American Free Trade Agreement (NAFTA) have greatly contributed to the growth of the industry.

It is also now highly possible for small countries to go beyond the borders of their countries and reach out to a wider marketplace that can bring in products and supplies that they need. The businesses in these countries can benefit from having lower product costs and have a competitive edge over bigger countries. The demand for more imported products is growing exponentially and businesses are taking these import export opportunities seriously. There are new international markets open for both importers and exporters that have brought in a lot of opportunities for companies to lower production or buying costs and make higher profits.

Because of global sourcing, businesses have access to more product and technology choices that are up to international standards that are otherwise not available in that particular place. Importing products offers an alternative source of supply so there is reduced dependence on local suppliers for products that may have a limited supply. Exporting products give countries a chance to expand its market outside its territories.

With more information available to the businessmen following the advent of the internet and advancement of technology, all types of businesses can take advantage of the many import export business opportunities available. It is not so surprising for a processor to be exported from the Philippines to Taiwan for assembly into laptops.

Singapore then imports the laptop for Asian distribution then re-exports it back to other countries within its Asian sales territory.

Advanced trade systems have given businesses the assurance that transactions can flow smoothly and securely. Several companies have seamlessly integrated its import export business transactions with its operations by bringing in professional manpower that understands the intricacies of the business and who have undergone import export training courses.

With enough information and assistance from knowledgeable personnel, businesses are able to take advantage of the many import export business opportunities for both purchasing and marketing as well as make use of business systems that can help the company achieve maximum advantage in the international market.

The Importance of Credit Risk Management for Banking

The importance of credit risk management for banking is tremendous. Banks and other financial institutions are often faced with risks that are mostly of financial nature. These institutions must balance risks as well as returns. For a bank to have a large consumer base, it must offer loan products that are reasonable enough. However, if the interest rates in loan products are too low, the bank will suffer from losses. In terms of equity, a bank must have substantial amount of capital on its reserve, but not too much that it misses the investment revenue, and not too little that it leads itself to financial instability and to the risk of regulatory non-compliance.

Credit risk management, in finance terms, refers to the process of risk assessment that comes in an investment. Risk often comes in investing and in the allocation of capital. The risks must be assessed so as to derive a sound investment decision. Likewise, the assessment of risk is also crucial in coming up with the position to balance risks and returns.

Banks are constantly faced with risks. There are certain risks in the process of granting loans to certain clients. There can be more risks involved if the loan is extended to unworthy debtors. Certain risks may also come when banks offer securities and other forms of investments.

The risk of losses that result in the default of payment of the debtors is a kind of risk that must be expected. Because of the exposure of banks to many risks, it is only reasonable for a bank to keep substantial amount of capital to protect its solvency and to maintain its economic stability. The second Basel Accords provides statements of its rules regarding the regulation of the bank’s capital allocation in connection with the level of risks the bank is exposed to. The greater the bank is exposed to risks, the greater the amount of capital must be when it comes to its reserves, so as to maintain its solvency and stability. To determine the risks that come with lending and investment practices, banks must assess the risks. Credit risk management must play its role then to help banks be in compliance with Basel II Accord and other regulatory bodies.

To manage and assess the risks faced by banks, it is important to make certain estimates, conduct monitoring, and perform reviews of the performance of the bank. However, because banks are into lending and investing practices, it is relevant to make reviews on loans and to scrutinize and analyse portfolios. Loan reviews and portfolio analysis are crucial then in determining the credit and investment risks.

The complexity and emergence of various securities and derivatives is a factor banks must be active in managing the risks. The credit risk management system used by many banks today has complexity; however, it can help in the assessment of risks by analysing the credits and determining the probability of defaults and risks of losses.

Credit risk management for banking is a very useful system, especially if the risks are in line with the survival of banks in the business world.

Benefits of the One Plan Health Insurance Blue Plan

Health insurance is not just for those with a six figure income, and it should not be a right but rather it should be a privilege. This might not be reality in South Africa at the moment but this is the vision of One Plan Health Insurance, a newcomer to the South African health care industry.

With One Plan medical aid everyone can afford to have health care at a price that will fit their pockets. And with the most basic plan starting at R100 a month, this can truly become a reality.

One Plan Health Insurance offers valuable services and products ranging from hospital plans, to cover in case of death and also cover for dread disease and HIV/AIDS cover. This means that One Plan Health Insurance truly is a one stop shop for all your health care needs, for you and you loved ones. Here is a look at what their comprehensive and affordable Blue Plan can offer you in the time that you will need it most.

What the One Plan Health Insurance Blue Plan Offers You

With the One Plan medical aid Blue Plan as a primary member you will receive R 5 250 worth of medical cover per year, excluding hospitalization, dread disease cover, and other benefits. This means that R 5 250 will go towards your average medical needs, like visiting a doctor, receiving prescription medication, pathology, radiology and maternity care.

Besides just covering your day to day medical needs One Plan Health Insurance will cover other crucial medical needs, such as accident cover, illness in hospital, emergency illness and natural birth and emergency caesareans.

Furthermore you will also receive accidental disability cover for up to R 130 000 for the duration of the policy. You and your family, if they are members, will also be covered in case of death, both accidental and from natural causes.

Optometry needs will also be covered and you will be able to have a comprehensive eye test, frames and specially cut glasses for your frames at any Eyenet optometrist nationwide. What more could you want from a health care provider?

But there is still more. As a member of One Plan Health Insurance you will also be able to take hold of amazing deals and goodies on offer from their online shopping mall, OneLiifestyle. Through the exclusive offers on their website you will be able to get discounts on over 300 trusted brands. So what have you got to lose?

Who can benefit from the One Plan Health Insurance Blue Plan

Those looking to cover themselves and their family in case of any medical emergency that might arise will benefit from the One Plane Health Insurance Blue Plan. And with low monthly rates it is not just the rich that can afford to look after their health. And with great value added bonuses there is no reason why you should not SMS them on 31644, and they will call you back.

In Summary – What Is Major Account Management All About?

Major Account Management Is a Long Term Process – It Takes Time:

We must recognise that we are in Major Account Management for the long term. It takes time to manage a major account and we will only receive a payback on our investment in time if we can have a long term result. In some of the organisations we have worked with this produces a tension because the whole culture is about creating a short term sales result in which product and profit are the main drivers and measures of success. We should not underestimate what a challenge Major Account Management can be to the corporate culture. It emphasises relationship more than product, profit more than volume, and team more than individual, long term more than short term. At the same time the practical short term realities of business life need to be recognised.

One of the best ways of managing this tension is to have someone who acts as a mentor, conscience or guide to the account manager and account team. They are not involved in the day to day management of the account but are invited in to look at and comment on major proposals and presentations. Their main role is to be involved in reviewing the long term plan every few months to ensure that the relationship is as productive as possible and is reflecting the values of the organisation as a whole.

The role of the major account manager is to be responsible for the overall relationship. They influence all those involved in the account to ensure a co-ordinated, synchronised approach. The major account manager is responsible for drafting the account plan, gaining the agreement and commitment of the team and then monitoring implementation

Major Account Management Involves Relationships Not Just a Mechanical Approach:

Under this heading we should discuss three main aspects of major account management.

o The importance of relationships in Major Account Management.

o The complexity of relationships in Major Account Management.

o Mapping relationships in Major Account Management.


In Major Account Management it is essential that we manage people as well as processes. Of course we must get the product pricing right. We need to be excellent at administration. Our customer service and product range need to be strong. But “people buy from people” and “we are in a people business”. To manage the complex range of relationships within a major account is difficult and demanding but our ability to manage relationships will define whether or not we sustain success.


In a reactive sale there is only one relationship – that between the seller and the buyer. In major accounts the situation is much more complex. There are often contacts going on at many levels and many locations. In one major account, we have identified 1000 relationships between the account team of ten people and individuals representing the client. But it is not just a problem of numbers, it is often a problem of politics. Some contacts do not want us to talk to people in other departments or at different levels. It can also be that the complexity is caused by product range. The users of one product rarely speak to the specifies for another product. In any complex relationship some people will like us more than others. This is to say nothing of inter-departmental tensions. All these things make major account relationships complex and we need to recognise their complexity.


If relationships are important and if relationships are complex then it is essential that we find a way of mapping, analysing, planning and monitoring those relationships. Over recent years we have found that an approach based on the game of chess allows a very practical way of identifying the key issues.

If we can answer these questions confidently and communicate our thinking across the account team simply and clearly then we will be half-way to success. This approach has given people across a broad spectrum of organisations a common language and way of working

It Can Only Be Done With Selected Customers:

The final word from this definition is selected. Choosing the right key accounts is of critical importance for three main reasons:

o We do not have the resources to treat every customer as a key account.

o Not every customer wants to be treated as a key account.

o Selection allows us to prioritise our activities in line with our overall business objectives.

Many organisations grade their major accounts simply by the size of sales for the year but the organisations we see that are really moving forward in Major Account Management take a number of other factors into account. They also make sure that everybody knows who the major accounts are and why they are major accounts. It is important to be rigorous with the selection criteria you use! You will also need to apply some form of weighting to reflect your priorities. The fact that a major account does not meet all your criteria will not disqualify it from being a major account. It will just need to score higher in other areas to qualify.

On the basis of this scoring, organisations can grade their accounts. They might be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The analogy of an airline is a good one because on one flight you can have people on Standby being entirely happy with the service they are getting, even though they know there are people getting “better” service in Club Class. Grading your accounts is not a matter of giving some customers better or worse service. It is a matter of giving all your customers appropriate service. When we select our major accounts and consistently deliver what we promise, we are managing our accounts professionally and effectively.

In Summary – Success Factors In Key Account Management:

o Successful Development Of The Role:

o Effective working relationships with other members of the team.

o A continuing drive to improve account team productivity.

o Management commitment to the account team’s role with opportunities for career progression.

o Re-enforcement of the role through authorised career structures, job descriptions and core training programmes.

o The Key Skills:

o Understanding the financial and legal requirements of the account.

o Understanding of the company’s business objectives.

o Understanding of the company’s commercial policies.

o Build high levels of product awareness.

o Understanding of the customer’s business objectives.

o Identify the decision makers.

o Understand the customer’s purchasing strategy.

o Assess competitive activities.

o Put together an account development plan.

o Ensure effective sales order processing.

o Build the right levels of revenue and profitability.

o The Core Skills:

o Delegation

o Interpersonal skills.

o Consultancy.

o Financial control & analysis.

o Project management.

o Man management.

o Initiative & creativity.

The Secondary Skills:

E.g. Industry knowledge, competitive knowledge, product knowledge etc.

Success Factors In Key Account Development:

o The Stages Of A Long Term Process

o Pre-sales.

o Contract negotiation.

o Implementation / Delivery.

o Review.

o Exploitation.

o Objectives For An Account Team

o Ensure that the customer is presented with a coherent and professional image of your Company as a business partner.

o Secure a long term business relationship with the customer as the basis for growing business.

o Penetrate the customer’s organisation and decision making unit creating new opportunities that can be exploited to accelerate account growth.

o Understand and document, on an ongoing basis, the customer organisations strategic business direction and organisation.

o Provide the company’s senior management team with feedback on the long term growth potential in the customer’s market sector and on critical success factors for exploiting it.

o Ensure that the company’s solutions are technically solid and based on a proper understanding of the current requirements and re-inforce the customer’s perception of the benefits of the company’s market focus.

o Ensure that the company’s total resource is delivered in a way that satisfies customer requirements and supports the objectives of the account plan.


An effective Major Account Management strategy depends on selecting your major accounts intelligently, creating a strong, consistent, flexible way of working with both major accounts and other customers and then implementing the plan in a disciplined, effective, efficient manner.

One of the successes of the Major Account Management programme has been the creation of common models and language that facilitate discussion and planning across units and departments. It has also stimulated a commitment for our clients to plan long term for key relationships. Major Account Management has many implications for individuals, departments and the business as a whole. It will always be demanding, but done right it will be highly rewarding

Copyright © 2006 Jonathan Farrington. All rights reserved

Main Functions of Management

There are four main functions of management.

1. Planning.

2. Organizing.

3. Leading.

4. Controlling.


Planning is an important managerial function. It provides the design of a desired future state and the means of bringing about that future state to accomplish the organization’s objectives. In other words, planning is the process of thinking before doing. To solve the problems and take the advantages of the opportunities created by rapid change, managers must develop formal long- and short-range plans so that organizations can move toward their objectives.

It is the foundation area of management. It is the base upon which the all the areas of management should be built. Planning requires administration to assess; where the company is presently set, and where it would be in the upcoming. From there an appropriate course of action is determined and implemented to attain the company’s goals and objectives

Planning is unending course of action. There may be sudden strategies where companies have to face. Sometimes they are uncontrollable. You can say that they are external factors that constantly affect a company both optimistically and pessimistically. Depending on the conditions, a company may have to alter its course of action in accomplishing certain goals. This kind of preparation, arrangement is known as strategic planning. In strategic planning, management analyzes inside and outside factors that may affect the company and so objectives and goals. Here they should have a study of strengths and weaknesses, opportunities and threats. For management to do this efficiently, it has to be very practical and ample.

Characteristics of planning.

Ø Goal oriented.

Ø Primacy.

Ø Pervasive.

Ø Flexible.

Ø Continuous.

Ø Involves choice.

Ø Futuristic.

Ø Mental exercise.

Ø Planning premises.

Importance of planning.

* Make objectives clear and specific.

* Make activities meaningful.

* Reduce the risk of uncertainty.

* Facilitators coordination.

* Facilitators decision making.

* Promotes creativity.

* Provides basis of control.

* Leads to economy and efficiency.

* Improves adoptive behavior.

* Facilitates integration.

Formal and informal planning.

Formal planning usually forces managers to consider all the important factors and focus upon both short- and long-range consequences. Formal planning is a systematic planning process during which plans are coordinated throughout the organization and are usually recorded in writing. There are some advantages informal planning. First, formalized planning forces managers to plan because they are required to do so by their superior or by organizational rules. Second, managers are forced to examine all areas of the organization. Third, the formalization it self provides a set of common assumptions on which all managers can base their plans.

Planning that is unsystematic, lacks coordination, and involves only parts of the organizations called informal planning. It has three dangerous deficiencies. First, it may not account for all the important factors. Second, it frequency focuses only on short range consequences. Third, without coordination, plans in different parts of the organization may conflict.

Stages in planning.

The sequential nature of planning means that each stage must be completed before the following stage is begun. A systematic planning progress is a series of sequential activities that lead to the implementation of organizational plans.

  • The first step in planning is to develop organizational objectives.
  • Second, planning specialists and top management develop a strategic plan and communicate it to middle managers.
  • Third, use the strategic plans to coordinate the development of intermediate plans by middle managers.
  • Fourth, department managers and supervisors develop operating plans that are consistent with the intermediate plans.
  • Fifth, implementation involves making decisions and initiating actions to carry out the plans.
  • Sixth, the final stage, follow-up and control, which is critical.

The organizational planning system.

A coordinated organizational planning system requires that strategic, intermediate, and operating plans be developed in order of their importance to the organization. All three plans are interdependent with intermediate plans based on strategic plans and operating planes based on intermediate plans. Strategic plans are the first to be developed because they set the future direction of the organization and are crucial to the organization’s survival. Thus, strategic plans lay the foundation for the development of intermediate and operating plans. The next plans to be developed are the intermediate plans; intermediate plans cover major functional areas within an organization and are the steppingstones to operating plans. Last come operating plans; these provide specific guidelines for the activities within each department.


The second function of the management is getting prepared, getting organized. Management must organize all its resources well before in hand to put into practice the course of action to decide that has been planned in the base function. Through this process, management will now determine the inside directorial configuration; establish and maintain relationships, and also assign required resources.

While determining the inside directorial configuration, management ought to look at the different divisions or departments. They also see to the harmonization of staff, and try to find out the best way to handle the important tasks and expenditure of information within the company. Management determines the division of work according to its need. It also has to decide for suitable departments to hand over authority and responsibilities.

Importance of the organization process and organization structure.

  1. Promote specialization.
  2. Defines jobs.
  3. Classifies authority and power.
  4. Facilitators’ coordination.
  5. Act as a source of support security satisfaction.
  6. Facilitators’ adaptation.
  7. Facilitators’ growth.
  8. Stimulators creativity.

Directing (Leading).

Directing is the third function of the management. Working under this function helps the management to control and supervise the actions of the staff. This helps them to assist the staff in achieving the company’s goals and also accomplishing their personal or career goals which can be powered by motivation, communication, department dynamics, and department leadership.

Employees those which are highly provoked generally surpass in their job performance and also play important role in achieving the company’s goal. And here lies the reason why managers focus on motivating their employees. They come about with prize and incentive programs based on job performance and geared in the direction of the employees requirements.

It is very important to maintain a productive working environment, building positive interpersonal relationships, and problem solving. And this can be done only with Effective communication. Understanding the communication process and working on area that need improvement, help managers to become more effective communicators. The finest technique of finding the areas that requires improvement is to ask themselves and others at regular intervals, how well they are doing. This leads to better relationship and helps the managers for better directing plans.


Managerial control is the follow-up process of examining performance, comparing actual against planned actions, and taking corrective action as necessary. It is continual; it does not occur only at the end of specified periods. Even though owners or managers of small stores may evaluate performance at the end of the year, they also monitor performance throughout the year.

Types of managerial control:

* Preventive control.

Preventive controls are designed to prevent undesired performance before it occurs.

* Corrective control.

Corrective controls are designed to adjust situations in which actual performance has already deviated from planned performance.

Stages in the managerial control process.

The managerial control process is composed of several stages. These stages includes

  1. Determining performance standards.
  2. Measuring actual performance.
  3. Comparing actual performance against desired performance (performance standards) to determine deviations.
  4. Evaluating the deviations.
  5. Implementing corrective actions.

2) Describe how this each function leads to attain the organizational objectives.


Whether the system is an organization, department, business, project, etc., the process of planning includes planners working backwards through the system. They start from the results (outcomes and outputs) they prefer and work backwards through the system to identify the processes needed to produce the results. Then they identify what inputs (or resources) are needed to carry out the processes.

* Quick Look at Some Basic Terms:

Planning typically includes use of the following basic terms.

NOTE: It is not critical to grasp completely accurate definitions of each of the following terms. It is more important for planners to have a basic sense for the difference between goals/objectives (results) and strategies/tasks (methods to achieve the results).

  • Goals

Goals are specific accomplishments that must be accomplished in total, or in some combination, in order to achieve some larger, overall result preferred from the system, for example, the mission of an organization. (Going back to our reference to systems, goals are outputs from the system.)

  • Strategies or Activities

These are the methods or processes required in total, or in some combination, to achieve the goals. (Going back to our reference to systems, strategies are processes in the system.)

  • Objectives

Objectives are specific accomplishments that must be accomplished in total, or in some combination, to achieve the goals in the plan. Objectives are usually “milestones” along the way when implementing the strategies.

  • Tasks

Particularly in small organizations, people are assigned various tasks required to implement the plan. If the scope of the plan is very small, tasks and activities are often essentially the same.

  • Resources (and Budgets)

Resources include the people, materials, technologies, money, etc., required to implement the strategies or processes. The costs of these resources are often depicted in the form of a budget. (Going back to our reference to systems, resources are input to the system.)

Basic Overview of Typical Phases in Planning

Whether the system is an organization, department, business, project, etc., the basic planning process typically includes similar nature of activities carried out in similar sequence. The phases are carried out carefully or — in some cases — intuitively, for example, when planning a very small, straightforward effort. The complexity of the various phases (and their duplication throughout the system) depends on the scope of the system. For example, in a large corporation, the following phases would be carried out in the corporate offices, in each division, in each department, in each group, etc.

1. Reference Overall Singular Purpose (“Mission”) or Desired Result from System.

During planning, planners have in mind (consciously or unconsciously) some overall purpose or result that the plan is to achieve. For example, during strategic planning, it is critical to reference the mission, or overall purpose, of the organization.

2. Take Stock Outside and Inside the System.

This “taking stock” is always done to some extent, whether consciously or unconsciously. For example, during strategic planning, it is important to conduct an environmental scan. This scan usually involves considering various driving forces, or major influences, that might effect the organization.

3. Analyze the Situation.

For example, during strategic planning, planners often conduct a “SWOT analysis”. (SWOT is an acronym for considering the organization’s strengths and weaknesses, and the opportunities and threats faced by the organization.) During this analysis, planners also can use a variety of assessments, or methods to “measure” the health of systems.

4. Establish Goals.

Based on the analysis and alignment to the overall mission of the system, planners establish a set of goals that build on strengths to take advantage of opportunities, while building up weaknesses and warding off threats.

5. Establish Strategies to Reach Goals.

The particular strategies (or methods to reach the goals) chosen depend on matters of affordability, practicality and efficiency.

6. Establish Objectives Along the Way to Achieving Goals.

Objectives are selected to be timely and indicative of progress toward goals.

7. Associate Responsibilities and Time Lines with Each Objective.

Responsibilities are assigned, including for implementation of the plan, and for achieving various goals and objectives. Ideally, deadlines are set for meeting each responsibility.

8. Write and Communicate a Plan Document.

The above information is organized and written in a document which is distributed around the system.

9. Acknowledge Completion and Celebrate Success.

This critical step is often ignored — which can eventually undermine the success of many of your future planning efforts. The purpose of a plan is to address a current problem or pursue a development goal. It seems simplistic to assert that you should acknowledge if the problem was solved or the goal met. However, this step in the planning process is often ignored in lieu of moving on the next problem to solve or goal to pursue. Skipping this step can cultivate apathy and skepticism — even cynicism — in your organization. Do not skip this step.

To Ensure Successful Planning and Implementation:

A common failure in many kinds of planning is that the plan is never really implemented. Instead, all focus is on writing a plan document. Too often, the plan sits collecting dust on a shelf. Therefore, most of the following guidelines help to ensure that the planning process is carried out completely and is implemented completely — or, deviations from the intended plan are recognized and managed accordingly.

  • Involve the Right People in the Planning Process

Going back to the reference to systems, it is critical that all parts of the system continue to exchange feedback in order to function effectively. This is true no matter what type of system. When planning, get input from everyone who will responsible to carry out parts of the plan, along with representative from groups who will be effected by the plan. Of course, people also should be involved in they will be responsible to review and authorize the plan.

  • Write Down the Planning Information and Communicate it Widely

New managers, in particular, often forget that others do not know what these managers know. Even if managers do communicate their intentions and plans verbally, chances are great that others will not completely hear or understand what the manager wants done. Also, as plans change, it is extremely difficult to remember who is supposed to be doing what and according to which version of the plan. Key stakeholders (employees, management, board members, founders, investor, customers, clients, etc.) may request copies of various types of plans. Therefore, it is critical to write plans down and communicate them widely.

  • Goals and Objectives Should Be SMARTER

SMARTER is an acronym, that is, a word composed by joining letters from different words in a phrase or set of words. In this case, a SMARTER goal or objective is:


For example, it is difficult to know what someone should be doing if they are to pursue the goal to “work harder”. It is easier to recognize “Write a paper”.


It is difficult to know what the scope of “Writing a paper” really is. It is easier to appreciate that effort if the goal is “Write a 30-page paper”.


If I am to take responsibility for pursuit of a goal, the goal should be acceptable to me. For example, I am not likely to follow the directions of someone telling me to write a 30-page paper when I also have to five other papers to write. However, if you involve me in setting the goal so I can change my other commitments or modify the goal, I am much more likely to accept pursuit of the goal as well.


Even if I do accept responsibility to pursue a goal that is specific and measurable, the goal will not be useful to me or others if, for example, the goal is to “Write a 30-page paper in the next 10 seconds”.

Time frame:

It may mean more to others if I commit to a realistic goal to “Write a 30-page paper in one week”. However, it will mean more to others (particularly if they are planning to help me or guide me to reach the goal) if I specify that I will write one page a day for 30 days, rather than including the possibility that I will write all 30 pages in last day of the 30-day period.


The goal should stretch the performer’s capabilities. For example, I might be more interested in writing a 30-page paper if the topic of the paper or the way that I write it will extend my capabilities.


I am more inclined to write the paper if the paper will contribute to an effort in such a way that I might be rewarded for my effort.

  • Build in Accountability (Regularly Review Who is Doing What and By When?)

Plans should specify who is responsible for achieving each result, including goals and objectives. Dates should be set for completion of each result, as well. Responsible parties should regularly review status of the plan. Be sure to have someone of authority “sign off” on the plan, including putting their signature on the plan to indicate they agree with and support its contents. Include responsibilities in policies, procedures, job descriptions, performance review processes, etc.

  • Note Deviations from the Plan and Replan Accordingly

It is OK to deviate from the plan. The plan is not a set of rules. It is an overall guideline. As important as following the plan is noticing deviations and adjusting the plan accordingly.

  • Evaluate Planning Process and the Plan

During the planning process, regularly collect feedback from participants. Do they agree with the planning process? If not, what do not they like and how could it be done better? In large, ongoing planning processes (such as strategic planning, business planning, project planning, etc.), it is critical to collect this kind of feedback regularly.

During regular reviews of implementation of the plan, assess if goals are being achieved or not. If not, were goals realistic? Do responsible parties have the resources necessary to achieve the goals and objectives? Should goals be changed? Should more priority be placed on achieving the goals? What needs to be done?

Finally, take 10 minutes to write down how the planning process could have been done better. File it away and read it the next time you conduct the planning process.

  • Recurring Planning Process is at Least as Important as Plan Document

Far too often, primary emphasis is placed on the plan document. This is extremely unfortunate because the real treasure of planning is the planning process itself. During planning, planners learn a great deal from ongoing analysis, reflection, discussion, debates and dialogue around issues and goals in the system. Perhaps there is no better example of misplaced priorities in planning than in business ethics. Far too often, people put emphasis on written codes of ethics and codes of conduct. While these documents certainly are important, at least as important is conducting ongoing communications around these documents. The ongoing communications are what sensitize people to understanding and following the values and behaviors suggested in the codes.

  • Nature of the Process Should Be Compatible to Nature of Planners

A prominent example of this type of potential problem is when planners do not prefer the “top down” or “bottom up”, “linear” type of planning (for example, going from general to specific along the process of an environmental scan, SWOT analysis, mission/vision/values, issues and goals, strategies, objectives, timelines, etc.) There are other ways to conduct planning. For an overview of various methods, see (in the following, the models are applied to the strategic planning process, but generally are eligible for use elsewhere).

Critical — But Frequently Missing Step — Acknowledgement and Celebration of Results

It’s easy for planners to become tired and even cynical about the planning process. One of the reasons for this problem is very likely that far too often, emphasis is placed on achieving the results. Once the desired results are achieved, new ones are quickly established. The process can seem like having to solve one problem after another, with no real end in sight. Yet when one really thinks about it, it is a major accomplishment to carefully analyze a situation, involve others in a plan to do something about it, work together to carry out the plan and actually see some results.


Organizing can be viewed as the activities to collect and configure resources in order to implement plans in a highly effective and efficient fashion. Organizing is a broad set of activities, and often considered one of the major functions of management. Therefore, there are a wide variety of topics in organizing. The following are some of the major types of organizing required in a business organization.

A key issue in the design of organizations is the coordination of activities within the organization.

  • Coordination

Coordinating the activities of a wide range of people performing specialized jobs is critical if we wish avoid mass confusion. Likewise, various departments as grouping of specialized tasks must be coordinated. If the sales department sells on credit to anyone who wished it, sales are likely to increase but bad-debt losses may also increase. If the credit department approves sales only to customers with excellent credit records, sales may be lower. Thus there is a need to link or coordinate the activities of both departments (credits and sales) for the good of the total organization.

Coordination is the process of thinking several activities to achieve a functioning whole.


Leading is an activity that consists of influencing other people’s behavior, individually and as a group, toward the achievement of desired objectives. A number of factors affect leadership. To provide a better understanding of the relationship of these factors to leadership, a general model of leadership is presented.

The degree of leader’s influence on individuals and group effectiveness is affected by several energizing forces:

  1. Individual factors.
  2. Organizational factors.
  3. The interaction (match or conflict) between individual and organizational factors.

A leader’s influence over subordinates also affects and is affected by the effectiveness of the group.

* Group effectiveness.

The purpose of leadership is to enhance the group’s achievement. The energizing forces may directly affect the group’s effectiveness. The leader skills, the nature of the task, and the skills of each employee are all direct inputs into group achievement. If, for example, one member of the group is unskilled, the group will accomplish less. If the task is poorly designed, the group will achieve less.

These forces are also combined and modified by leader’s influence. The leader’s influence over subordinates acts as a catalyst to the task accomplishment by the group. And as the group becomes more effective, the leader’s influence over subordinates becomes greater.

There are times when the effectiveness of a group depends on the leader’s ability to exercise power over subordinates. A leader’s behavior may be motivating because it affects the way a subordinate views task goals and personal goals. The leader’s behavior also clarifies the paths by which the subordinate may reach those goals. Accordingly, several managerial strategies may be used.

First, the leader may partially determine which rewards (pay, promotion, recognition) to associate with a given task goal accomplishment. Then the leader uses the rewards that have the highest value for the employee. Giving sales representatives bonuses and commissions is an example of linking rewards to tasks. These bonuses and commissions generally are related to sales goals.

Second, the leader’s interaction with the subordinate can increase the subordinate’s expectations of receiving the rewards for achievement.

Third, by matching employee skills with task requirements and providing necessary support, the leader can increase the employee’s expectation that effort will lead to good performance. The supervisor can either select qualified employees or provide training for new employees. In some instances, providing other types of support, such as appropriate tools, may increase the probability that employee effort leads to task goal accomplishment.

Fourth, the leader may increase the subordinate’s personal satisfaction associated with doing a job and accomplishing job goals by

  1. Assigning meaningful tasks;
  2. Delegating additional authority;
  3. Setting meaningful goals;
  4. Allowing subordinates to help set goals;
  5. Reducing frustrating barriers;
  6. Being considerate of subordinates’ need.

With a leader who can motivate subordinates, a group is more likely to achieve goals; and therefore it is more likely to be affective.


Control, the last of four functions of management, includes establishing performance standards which are of course based on the company’s objectives. It also involves evaluating and reporting of actual job performance. When these points are studied by the management then it is necessary to compare both the things. This study on comparison of both decides further corrective and preventive actions.

In an effort of solving performance problems, management should higher standards. They should straightforwardly speak to the employee or department having problem. On the contrary, if there are inadequate resources or disallow other external factors standards from being attained, management had to lower their standards as per requirement. The controlling processes as in comparison with other three, is unending process or say continuous process. With this management can make out any probable problems. It helps them in taking necessary preventive measures against the consequences. Management can also recognize any further developing problems that need corrective actions.

Although the control process is an action oriented, some situations may require no corrective action. When the performance standard is appropriate and actual performance meets that standard, no changes are necessary. But when control actions are necessary, they must be carefully formulated.

An effective control system is one that accomplishes the purposes for which it was designed.

Controls are designed to affect individual actions in an organization. Therefore control systems have implications for employee behavior. Managers must recognize several behavioral implications and avoid behavior detrimental to the organization.

  • It is common for individuals to resist certain controls. Some controls are designed to constrain and restrict certain types of behavior. For example, Dress codes often evoke resistance.
  • Controls also carry certain status and power implications in organizations. Those responsible for controls placed on important performance areas frequently have more power to implement corrective actions.
  • Control actions may create intergroup or interpersonal conflict within organizations. As stated earlier, coordination is required for effective controls. No quantitative performance standards may be interpreted differently by individuals, introducing the possibility of conflict.
  • An excessive number of controls may limit flexibility and creativity. The lack of flexibility and creativity may lead to low levels of employee satisfaction and personal development, thus impairing the organization’s ability to adapt to a changing environment.

Managers can overcome most of these consequences through communication and proper implementation of control actions. All performance standards should be communicated and understood.

Control systems must be implemented with concern for their effect on people’s behavior in order to be in accord with organizational objectives. The control process generally focuses on increasing an organization’s ability to achieve its objectives.

Effective and efficient management leads to success, the success where it attains the objectives and goals of the organizations. Of course for achieving the ultimate goal and aim management need to work creatively in problem solving in all the four functions. Management not only has to see the needs of accomplishing the goals but also has to look in to the process that their way is feasible for the company.