Tuesday, March 5, 2013

Software Development Management

Software development management is the ability to track source code as it goes through the various stages of development from requirements gathering, testing, to release. Software requirements, plans and technical changes in a project, combined with the eminent interdependent and repetitive nature of the software development process, can make management chaotic for project managers and increase software quality risks.

Reporting is a business attribute of project administration for software development. Metrics, summaries, and contextual reports provide views and insight into the status of a project and help bring projects to successful completion IBM Rational ClearQuest, a comprehensive flexible change management system suitable for multiple process management, provides change tracking, process automation, reporting, traceability, and control of the software development lifecycle. Software development teams use Rational ClearQuest to successfully manage change in their development environments and throughout the software development cycle.

Version 7.1 of Rational ClearQuest provides a new, flexible reporting mechanism based on a data-pull reporting model, adding significant flexibility over the traditional data-push model, so that individual team members can gain real-time visibility into development activities. Data is pulled from Rational ClearQuest via the supplied ClearQuest ODA JDBC driver and presented in the standard reports shipped with ClearQuest 7.1 that are based on the Open Source Business Intelligence and Reporting Tools (BIRT), a project of the Eclipse Foundation.

Software Development Management

BIRT is an Open Source reporting system for web applications, especially those based on Java and J2EE. Actuate founded and co-leads the BIRT project, while IBM is also an active participant, with representation on the Project Management Committee and a number of developers contributing code.

The BIRT project brings Rich Information Application capabilities as well as interactivity to the web-based reporting of structured data. As a result, it is the Open Source Business Intelligence offering with the most momentum, with more than 6.5 million downloads through 2008. BIRT consists of a comprehensive report development environment, reporting engine and powerful skill-specific tools for creating rich, interactive reports for client and web applications in a variety of formats. Rational has implemented these technologies as he basis of the new built-in reporting solution within.

Software Development Management
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Ricky Pristin is a writer that specializes in SaaS BI and Business Intelligence BI [http://www.businessintelligencebi.com/]

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Tuesday, February 26, 2013

Organizational Structures In Project Management

One aspect of project management that used to receive quite a bit of attention in the 1950s and 1960s was the project organizational structures. A myriad of new organizational structures have appeared on the scene in the last couple of decades but they still lack many of the desirable qualities in the traditional methods. Ultimately, project management directors seek organizational methods that facilitate teamwork, can maximize the use of limited resources, efficiency and quality in the way a project is completed and how goals and objectives are achieved. This article will examine the three main traditional organizational structures for project management. These three structures are functional organization, project organization and matrix organization.

Functional Organization This structure is by far the oldest of the organizational methods but remains one of the most successful. This method performs best when used for routine work functions and the upholding of quality and work standards. Functional Organization structures assign projects in two different ways. One way involves the project being assigned to a specific functional manager who then coordinates with the other departments for them to each contribute. Alternatively, projects can be shuffled around to different departments where each department manager ensures that their parts of the work have been completed.

This method does not work very effectively when used in facilitating complex projects. One of the major criticisms of this organizational structure is the lack of built-in employee recognition, measurement and reward for project performance. Similarly, there is very little individual accountability for any project management tasks that need to be performed.

Organizational Structures In Project Management

Project Organization Project Organization is a structure that is specifically designed for executing projects. It is specifically tailored to meet the demands of complex projects by isolating unique work and maintaining a strong focus on completing the project. Once the project is completed, this structure disbands. This structure is effective in maintaining dedicated resources throughout the life of the project.

The major criticism of this structure is that it is inefficient in transferring technology and the use of resources. Also, by the time the members actually begin acting as a cohesive team, the project is over and the organization dissolves. Since this project has dedicated resources throughout its life, major inefficiency ensues when there are underutilized employees during certain parts of the project.

Matrix Organization Matrix Organization is a project management structure that evolved from the recognition of inherent flaws in the Functional Organization and Project Organization structures. Created in the 1970s, this structure combined the best components of these two structures. This model functions very well when there are multiple projects being coordinated at once. The functional managers oversee the staffing, training, job assignment and evaluation of the project's personnel. The functional specialists are assigned one or more projects and oversee that these individualized projects' achieve their objectives are completed through maximum resource efficiency.

Despite its recognition and avoidance of the flaws involved in other structure, Matrix Organization still does have some problems of its own. Individual employees report to at least two managers which can often lead to ambiguity and conflict. These problems can be avoided through good communication and solid leadership between managers.

This article simply provided an overview of several project management organizational structures. Functional Organization, Project Organization and Matrix Organization are the three most traditional project management structures that are still used today because of their effectiveness. However, do keep in mind that there are plenty of other methods available that may better suit your firm's situation. Nevertheless, the type of organizational structure that should be chosen by your firm depends on the type of project as well as the objectives and goals that it ultimately aims to achieve.

Organizational Structures In Project Management
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Michael Russell

Your Independent guide to Project Management

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Tuesday, February 19, 2013

Management Theory - A Brief History

The work of management theorists over the last hundred and fifty years can be used to argue the case for an in depth theoretical, as well as practical knowledge of many management styles, including the positive and negative attributes of each. It is also important to examine the 'structure' of different organisations to consider how it affects, and is affected by the management style of that organisation. Organisational Structure is essentially concerned with the allocation of authority and power. Managers need to make decisions and need to have the authority to do so. A 'hierarchical organisation' will have the greatest power at the top of the organisation, and the command structure will be in a downward direction. In a 'flat organisation' power is distributed more evenly, but there will still be major differences in the level of power and authority between different members of the company. Some organisations such as the armed forces or police have many tiers (or levels) and are tall in their hierarchy. Universities, however would have few levels between those at the bottom and those at the top and would be considered a 'flat hierarchy.' The 'span of control' (number of people an individual manages or supervises directly) is closely linked to the type of organisational hierarchy that exists. Many of the new 'buzzwords' and 'flavour of the month theories' that Mr. Whitehead mentions are no more than a current evaluation of the theories of yesteryear. The re-visiting of these theories will provide conclusive evidence that management theory is central to the modern manager's education.

The Work of Frederick Winslow Taylor (1856-1915)

Frederick Taylor, whilst working as a gang boss in a lathe department in Midvale, USA became determined to eradicate 'systematic soldiering'; an attempt by workers to do no more than was necessary. Taylor developed a strategy where particular jobs were studied, then broken down into individual tasks, which had to be completed exactly as stated. Each task was allocated a time, based on the timed work of the quickest worker. Workers were then allocated specific tasks, and were not allowed to deviate from that task at all. As Taylor believed that money was the main motivator, a payment was made for each completed unit of output (piece rate)

Management Theory - A Brief History

Many organisations and work methods are still influenced by Taylor's concept of 'Scientific Management Methods' This can be seen on factory assembly lines, and even in the commercial kitchen, where each member of staff is allocated a small but specific task in making up a completed gourmet meal. Piece rates may not be prevalent, but the allocation of boring, repetitive tasks is common. An article in The Sunday Times, 3rd April 1983 tells of one worker's plight, assembling the Maestro car at the Cowley Plant. He had just one hundred seconds to screw on two rubber buffers and fit three small plates to the rear wheel arch. He had been given one night's training, completed his task on exactly 246 vehicles per day, and had 46 minutes per shift of 'relaxation time'.

Some of Taylor's early followers achieved spectacular results in increasing output. However, the stringent and oppressive tactics that were employed often led to industrial unrest. After 'Scientific Management Methods' were employed at the Watertown Arsenal, immediate strikes ensued. The American Congress eventually banned Taylor's time and motion studies in its defense industry.

The use of such methods in the modern workplace can produce useful results in the short term, but for longer-term rewards they must be balanced against the effects on workforce morale. To assume that everybody can work at the same rate as the fastest worker, and that money is the only real motivator may not be borne out. Today's workers want to be empowered, and to take an active role in their organisations, not be treated like machines where only the end product is important.

Henry Laurence Gantt

Henry Gantt worked for Taylor at the Bethlehem Steel Works. His ideas were broadly supportive of Taylor's ideas, but he added a more humanizing approach. He believed that scientific management was used in an oppressive way by the unscrupulous. Gantt moved away from the strict piece rate system of pay, instead offering a set wage plus 20% - 50% bonuses. If workers achieved the set objectives within the day a bonus would be paid. Supervisors were introduced who also received bonuses if targets were met by his team.

Gantt's less oppressive regime can be seen today in many organisations. In factories around the globe workers receive bonuses for achieving daily, weekly or monthly targets.

The Work of Henri Fayol (1841-1925)

Henri Fayol, the 'Father of Modern Management Theory' was interested in how management worked, and could be applied on a universal basis. His theories focused on Rules, Roles and Procedures.

Fayol's 'Five Elements of Management' are:

* Planning Setting objectives, and strategies, policies and procedures to achieve them.

* Organising Setting tasks to achieve the objectives. Allocating the tasks to groups or individuals, and empowering those responsible for that task.

* Commanding Instructing those carrying out the given task.

* Coordinating Ensuring a common approach by groups to meet the objectives of the organisation.

* Controlling Ensuring the performance of individuals and groups fits with the plans, and correcting as necessary.

Fayol's theories are as relevant today as they ever were, and most, if not all managers use his 'elements of management'.

The Work of Peter Drucker

Drucker's work in the 1950's followed on from that of Fayol. He had five categories of 'Management Operations'

* Setting Objectives Senior Managers organise objectives into targets. This is cascaded down to more Junior Managers.

* Organising The workload is divided into manageable activities and jobs.

* Motivating This involves communicating and creating the right conditions for targets to be achieved.

* Measurement Comparing performance against targets.

* Development Enabling people to use their talents.

Fayol and Drucker had very different views on the role of workers within their theories. Fayol's work has a distinct leaning towards worker's having to be told what to do, their work checked and corrected, with managers delegating tasks and overseeing from a high level (a Tall Hierarchy?). Conversely, Drucker's ethos is about the empowerment of workers, giving them the opportunity to utilise their talents, with managers occupying a role that is more about assisting and coaching workers.

Fayol's ideas fail to take into account the people within the workplace, whereas Drucker takes a somewhat more humanist approach.

Elton Mayo - The Human Relations Approach

By the 1930's there was evidence emerging that production could be raised by applying motivational methods within a workforce. These ideas were very different to the techniques of F.W Taylor and, although concerned with profit, the 'human relations approach' to management was also concerned with social relations in the organisation. The approach assumed that workers were genuinely committed to their companies and that they had a desire to work towards achieving its goals.

Elton Mayo had carried out experiments at the Hawthorne Plant, and these sought to find ways to improve production by changing workers conditions and pay structures. Mayo worsened conditions for workers, then returning them to how they were. The rise in output was due to workers communicating more and working as a tighter team unit. It was also found that the effect of taking an interest in workers made them feel important and that their opinions were valued.

Volvo and Honda have seen the development of work team in recent years, with the differences between workers and managers being far from obvious. People wear the same uniforms, and the emphasis on communication is high. Developing cohesive teams who work well together and share the same goals ensures a high level of motivation for the tasks required. The structure of this type of organisation could be considered a 'flat hierarchy' with a wide span of control for managers working over a skilled and competent workforce. Subordinates are well trained and a good level of trust between managers and workers exists.

The 'Human Relations Approach' is definitely a positive way of management for the 21st Century, where personal empowerment and self-esteem should not be in question.

Mr Whitehead's view that "Haven't generations of managers done perfectly well by learning on the job and applying a bit of common sense" cannot accurately be quantified. Within the Fire Service, promotion to managerial roles is based on internal qualifications and interview alone. Virtually all managers have based their management style on exactly what Mr. Whitehead advises in his letter. Some are very good and are respected as such; however there are a large number who cannot manage people or their responsibilities within the organisation. Respect for leadership within the fire service is essential, but often rare in modern times. Managers who had an in depth knowledge of management strategy may well motivate the workforce to new heights. This type of 'tall hierarchical' organisation has many tiers of command with spans of control for senior managers being relatively small, with the widest spans of control being at junior management level.

"An endless supply of new gurus spin off new batches of buzzwords which help successive generations of whiz kids to get promoted on the basis of slogans" is not an accurate depiction of the modern manager. It's certainly true that there are managers who, even with the background of a management related education are ineffectual in their roles. This is not a reflection on management theory. Studies of management styles allow one to make informed decisions, and to have an array of options at your disposal, and to adapt to the ever-changing pressures on the organisation, both internal and external.

"Meanwhile real managers just do what they have always done, maintaining discipline and telling people what to do" The idea of a 'one style fits all' manager is unrealistic, and one that has a proven track record of leading to unrest. Even within one organisation the manager or managers need to be flexible within their roles. Leadership is vital, but a leader who is flexible, approachable, and has the interest and aspirations of both workers and organisation at the forefront of their strategy will flourish. Conversely, the manager who's only interest is the level of output and profit will not be supported by those producing that output. Respect is most certainly a two-way avenue.

My review of the theories of 'management gurus' of the past is designed to show that these ideas are not new. One can look at any organisation and see many of these ideas working in parallel. As far as organisational structure is concerned, one cannot make stereotypical assumptions based purely on the size of the organisation or the number of employees. The style of management and the systems of work employed all help to define the structure. Most organisations employ many of the characteristics discussed above, in different ways, and at different times dependent on the dynamics of the situation. Most businesses are constantly evolving and redefining themselves to meet the requirements of the modern marketplace. There is no correct answer, or one style which is superior to others. Each has its positive and negative points, but without fundamental knowledge of them all, how can one possibly manage effectively?

Management Theory - A Brief History
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Wednesday, February 6, 2013

What You Should Know About Property Management of Commercial Properties

Now that you have made an offer to acquire a commercial property and are waiting to close escrow, you may want to start looking for a property manager to professionally manage the property. Your real estate investment advisor should present you with 2 or 3 local companies, each with its own proposal. Your job is to decide which company you will hire. The property manager will be the main point of contact between you, as the landlord, and the tenants. Her main job is to:

Receive and collect the rents and other payments from your tenants. This is typically simple until a tenant does not send the rent check. A good property manager will somehow get the tenant to pay the rent while a lousy one will throw a monkey on your back! Hire, pay, and supervise personnel to maintain, repair and operate the property, e.g. trash removal, window cleaning, and landscaping. Otherwise, the property loses its appeal, and customers may not patronize your tenants' businesses. The tenants then may not renew their lease. As a consequence, you may not realize the expected cash flow. Lease any vacant space. Keep an accurate record of income and expenses, and provide you with a monthly report.

A good property manager is critical in keeping your property fully occupied at the highest market rent, the tenants happy and in turn helps you achieve your investment objectives. Before choosing a property management company, you may want to:
Interview the company with focus on how the company handles and resolves problems, e.g. late payment. Talk to the person who will manage the property day to day as this may be a different person from the one who signs the property management contract. You want someone with strong interpersonal skills to effectively deal with tenants.

What You Should Know About Property Management of Commercial Properties

The property managing company normally wants a contract for at least one year. The contract should spell out the duties of the property manager, compensation, and what will require the landlord's approval.

Agent's Compensation: you will have to pay someone to manage and lease the property. You may have one company to manage the property and a different company to lease the property. However, it's best to work with one company that handles both managing and leasing to save time and money.
Management fee: the fee varies between 3-6% of the base monthly rent for a retail center, depending on the amount of work needed to manage the property. For example, it takes much less time to manage a M retail center with just a single tenant than a M retail strip with 12 tenants. So, for the center with 12 tenants, you may have to pay a higher percentage to motivate the property manager. You should negotiate the fee as a percentage of the base rent instead of the gross rent. Base rent does not include NNN charges. Ideally, you want a lease in which the tenants pay for their share of property management fee. Late fee: when a tenant pays late, he is often required by the lease to pay late fee. The property manager is allowed to keep this fee as an incentive to collect the rent. Leasing fee: this fee compensates the property manager to lease any vacant space. In a typical lease contract, the leasing company wants 4-7% of the gross rent over the life of the lease. It also wants the leasing fee to be paid when the new tenant moves in. In addition, the leasing company wants around 2% of gross rent when the lease is renewed. The tenant may also ask for Tenant Improvement (TI) credit, typically between -20 per square foot to pay for construction expenses. So if a new tenant with a 10-year lease goes under after one year then you may lose money. As the landlord you should:
Approve a long term lease (10 years or longer) only when the tenant's financial strength is solid. Otherwise, it may be better to reduce the lease to 3-5 years. Make sure the new lease has a provision for some kind of rent escalation, preferably based on Consumer Price Index (CPI), i.e. inflation which is 3-4% a year instead of lower fixed 1-2% annual increase. Consider TI request from the tenant as one of the factors to approve a lease. The TI credit depends on whether you need the tenant more or the tenant needs you more. Negotiate for a flat rate renewal fee, e.g. 0 instead of paying a percentage of the rent for the life of the lease. The negotiation is easier with one company that handles both leasing and management. Negotiate to pay the leasing agent a lower percentage, e.g. 4% when no outside leasing broker is involved.

You can see that it's very important to minimize tenants' turnover rate as it has a direct impact on the cash flow of your commercial property. A good property manager will help you achieve this goal.

Monthly Report: each month the property manager should send you a report on income received, expenses incurred, and property status. You should Review the report to see if the numbers make sense. You should:
Request a report showing both rent and CAM fees received. Request a separate bank account for your property and have a monthly bank statement sent to you. Without this, the property manager will deposit and commingle all the rents from all properties that she manages into her company's bank account.

If you instruct the property manager to send you the excess cash flow then you will also get a check.

Landlord's Approval: the management contract should specify the dollar limit for exceptional maintenance expense above which would require your approval. This amount varies from landlord to landlord as well as the type of property. However, it's typically somewhere between 0 to ,000 dollars.

Communication with property manager: in the first few months, you and the new property manager should communicate often to make sure things go smoothly. You should give instructions in writing, e.g. email, to your property manager and keep records of all your correspondence. If the property manager does not do what you instructed, you may refer to your records and minimize disputes.

If you want to work hard for your money, you may want to manage your own property. However, if you want to work smart, your partner should be a good property manager.

What You Should Know About Property Management of Commercial Properties
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David V. Tran is the President and Chief Investment Advisor at Transmercial (formerly eFunding, Inc.), a commercial real estate & loan brokerage company in San Jose, CA. His website is http://www.transmercial.com He may be contacted at (408) 288-5500. Transmercial does business in all 50 states. He is the #1 US commercial real estate expert author. David currently offers 3 FREE real estate investment seminars:

How to invest in commercial real estate for early retirement income. How to maximize cash flow with 1031 tax-deferred exchange. TIC: Fractional ownership in high-value commercial properties.

David's blog features a daily list of Best Commercial Properties in the US to invest for early retirement income.

You are welcome to share this report, unedited and in its entirety, with anyone you like. You may not remove this text. © 2007-2009 Transmercial.

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Monday, February 4, 2013

Communication - Seven Verbal Communication Skills That Improve Workplace Management Effectiveness

Successful executives, managers and supervisors know that the importance of effective communication in the workplace cannot be underestimated. Poor communication is responsible for mistakes, conflict, and negativity in the workplace. Have you ever thought the following?

"Oops, I know I said that, but what I meant to say was..."    
 

" Why can't I get buy in from the team?"

Communication - Seven Verbal Communication Skills That Improve Workplace Management Effectiveness

"That mistake could have been avoided if I had only said...." 

Two common communication barriers are:
Not being aware of effective communication skills Being in a hurry.
Since effective communication in business is essential to success at your company or organization, it makes sense to improve your communication skills. The good news is that you can learn some basic communication skills and use them today to improve the quality of your workplace relationships with both employees and customers.

Seven Communication Skills for the Workplace

1. Personal Contact

Did you ever wonder why companies spend thousands of dollars sending sales people across the country when they could do a phone call for much less? The reason is that people relate to one another better when they can meet in person and read each other's body language. What's more, people can feel the energy the connection creates. You can also smile and shake someone's hand when you greet them, which creates a powerful connection.

2. Develop a network.

No one achieves success alone. Success in any company requires a team effort.
Make an effort to get to know managers and employees in different departments within your company, Meet new people in professional organizations. Become active in your community.
3. Always be courteous.

Courtesy lets people know that you care.

The words "Thank You" show that you appreciate your employees' efforts, and this is important because appreciation is the number one thing that employees want from management.

A little change like saying, "Would you please..." instead of just, "Please..." will make you sound less dogmatic and will improve your relationships with your employees.

4. Be clear

Since people often hear things differently, and they may be hesitant to ask you to explain what you said, you should ask, "Did I explain this clearly?" This will confirm that people understood you.

5. Compromise

You can decrease the tension associated with conflict  if you always ask, "What is best for the company?" This gives people a different perspective on your requests, and they will be less likely to take any conflict personally.

6. Be interesting and interested

Even though most of your workplace communications will be about business topics, it is also important to share your personal side. Let your staff know about your interests and your family, and ask them about theirs. Telling a few short personal stories about your interesting experiences will make your employees feel more connected to you as a person. Read your hometown paper daily so you know what is going on in your community and what personal concerns your staff may have about them.

7. Listen

Listening attentively to your employees demonstrates respect. Listening isn't easy because everyone's mind tends to wander. So to help you concentrate on what the other person is saying, keep a good eye contact --without staring,  and then make a comment about it or ask a question.

Improving your communication skills is a process that happens gradually over a period of time. The good news is that you have opportunities to practice your communication skills every day at work. Here's a tip to help you improve faster. At the end of each day, take a moment to review your communications during the day. What was effective? What wasn't effective? That way you will continue to learn and improve your communication skills.

Communication is the key to success in business

That is why you should be aware of how you are communicating at all times. As a result... you will become a role model for effective workplace communication skills to your employees. This is important because the ultimate goal of any supervisor, manager or executive is to turn ordinary workers into extraordinary employees. You can take a huge step toward doing this by honing your own communication skills.

Communication - Seven Verbal Communication Skills That Improve Workplace Management Effectiveness
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Successful Workplace Communication is one of the 13 essential skills that employees use at work. The Employee Success Toolkit is a professional development course for employees that teaches these essential skills in 13 easy-to-follow lessons. See what these 13 skills are at: http://www.EmployeeSuccessToolkit.com

I also invite you to visit http://www.ConfidenceCenter.com for a free Employee Morale Starter eKit and Employee Morale Calendar Planner

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Wednesday, January 30, 2013

A Complete Inventory Management System Built With Excel

An Inventory Management System is not only about keeping records of the stocks movement in and out of a store or warehouse in an Excel spreadsheet. A simple inventory management system should be able to identify how much goods are left in the store, which products require re-order and where, when and which goods have moved in and out of the warehouse. Thus, generating accurate reports is important. But to be able to do this, the data must first be organised systematically.

Using the details, we could set up a pivot table to summarise the stocks that move in and out of the store. It will allow us to organise the report so that we could identify the stock level by product groups, product name and the locations they have moved to and from. The records could also be grouped such that we can track the stock movements by month. In our report below (refer to row above grand total), we can quickly establish that there is a net increase of 19 units of adhesives in the month of Oct, a net decrease of 3 units in the month of November, another 4 units drop in Dec, which all resulted in 12 units of adhesive left in the store.

Using the same report, we could drill down to see the movements of individual products
in the Adhesive group by month.

A Complete Inventory Management System Built With Excel

Alternatively, we could also present the quantity of stocks remaining in the store by changing the setting of the report. In our example below, we are able to know that the store is left with 4 units of "3M Command ADH Large Hook" in Nov and 1 unit in Dec. If we sort the report in descending order, we could immediately list down the products we have to top up quickly to prevent an out-of-stock situation.

And if this report is still not too relevant, we could even show the stock movements (the ins and the outs) for each month and then the stock balance for the month to better explain the stock movements for the month.

To make it easier to capture the details and improve on the accuracy of the data records, we also shared on we could set up a dropdown list that is dependent on the selection made by the user using another drop list.

The complete system helps to improve the data entered into the inventory management system and then prepare reports that help the store manager to make better quality decisions with regards to stock replenishment and stock movement in the store.

A Complete Inventory Management System Built With Excel
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Jason Khoo is the author of the website Advanced Excel Profit Centre. He hopes to share with his visitors how to simplify complicated calculations through the use of Excel. He also develop templates such as the NPV template, IRR template to help users gain a better understanding of these concepts and make it more convenient for users to derive the values. He has also developed a business solution that helps budget planners consolidate budgets in SUPER quick time. The solution is also very useful for personal budgeting and analysis.

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Saturday, January 26, 2013

The Challenges of Human Resource Management

Introduction

The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources.

With the increase in competition, locally or globally, organizations must become more adaptable, resilient, agile, and customer-focused to succeed. And within this change in environment, the HR professional has to evolve to become a strategic partner, an employee sponsor or advocate, and a change mentor within the organization. In order to succeed, HR must be a business driven function with a thorough understanding of the organization's big picture and be able to influence key decisions and policies. In general, the focus of today's HR Manager is on strategic personnel retention and talents development. HR professionals will be coaches, counselors, mentors, and succession planners to help motivate organization's members and their loyalty. The HR manager will also promote and fight for values, ethics, beliefs, and spirituality within their organizations, especially in the management of workplace diversity.

The Challenges of Human Resource Management

This paper will highlight on how a HR manager can meet the challenges of workplace diversity, how to motivate employees through gain-sharing and executive information system through proper planning, organizing, leading and controlling their human resources.

Workplace Diversity

According to Thomas (1992), dimensions of workplace diversity include, but are not limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience.

The Challenges of Workplace Diversity

The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena (Cox, 1993), which must be one of the important organisational goals to be attained. More importantly, if the organizational environment does not support diversity broadly, one risks losing talent to competitors.

This is especially true for multinational companies (MNCs) who have operations on a global scale and employ people of different countries, ethical and cultural backgrounds. Thus, a HR manager needs to be mindful and may employ a 'Think Global, Act Local' approach in most circumstances. The challenge of workplace diversity is also prevalent amongst Singapore's Small and Medium Enterprises (SMEs). With a population of only four million people and the nation's strive towards high technology and knowledge-based economy; foreign talents are lured to share their expertise in these areas. Thus, many local HR managers have to undergo cultural-based Human Resource Management training to further their abilities to motivate a group of professional that are highly qualified but culturally diverse. Furthermore, the HR professional must assure the local professionals that these foreign talents are not a threat to their career advancement (Toh, 1993). In many ways, the effectiveness of workplace diversity management is dependent on the skilful balancing act of the HR manager.

One of the main reasons for ineffective workplace diversity management is the predisposition to pigeonhole employees, placing them in a different silo based on their diversity profile (Thomas, 1992). In the real world, diversity cannot be easily categorized and those organizations that respond to human complexity by leveraging the talents of a broad workforce will be the most effective in growing their businesses and their customer base.

The Management of Workplace Diversity

In order to effectively manage workplace diversity, Cox (1993) suggests that a HR Manager needs to change from an ethnocentric view ("our way is the best way") to a culturally relative perspective ("let's take the best of a variety of ways"). This shift in philosophy has to be ingrained in the managerial framework of the HR Manager in his/her planning, organizing, leading and controlling of organizational resources.

As suggested by Thomas (1992) and Cox (1993), there are several best practices that a HR manager can adopt in ensuring effective management of workplace diversity in order to attain organizational goals. They are:

Planning a Mentoring Program-

One of the best ways to handle workplace diversity issues is through initiating a Diversity Mentoring Program. This could entail involving different departmental managers in a mentoring program to coach and provide feedback to employees who are different from them. In order for the program to run successfully, it is wise to provide practical training for these managers or seek help from consultants and experts in this field. Usually, such a program will encourage organization's members to air their opinions and learn how to resolve conflicts due to their diversity. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members to move beyond their own cultural frame of reference to recognize and take full advantage of the productivity potential inherent in a diverse population.

Organizing Talents Strategically-

Many companies are now realizing the advantages of a diverse workplace. As more and more companies are going global in their market expansions either physically or virtually (for example, E-commerce-related companies), there is a necessity to employ diverse talents to understand the various niches of the market. For example, when China was opening up its markets and exporting their products globally in the late 1980s, the Chinese companies (such as China's electronic giants such as Haier) were seeking the marketing expertise of Singaporeans. This is because Singapore's marketing talents were able to understand the local China markets relatively well (almost 75% of Singaporeans are of Chinese descent) and as well as being attuned to the markets in the West due to Singapore's open economic policies and English language abilities. (Toh, R, 1993)

With this trend in place, a HR Manager must be able to organize the pool of diverse talents strategically for the organization. He/She must consider how a diverse workforce can enable the company to attain new markets and other organizational goals in order to harness the full potential of workplace diversity.

An organization that sees the existence of a diverse workforce as an organizational asset rather than a liability would indirectly help the organization to positively take in its stride some of the less positive aspects of workforce diversity.

Leading the Talk-

A HR Manager needs to advocate a diverse workforce by making diversity evident at all organizational levels. Otherwise, some employees will quickly conclude that there is no future for them in the company. As the HR Manager, it is pertinent to show respect for diversity issues and promote clear and positive responses to them. He/She must also show a high level of commitment and be able to resolve issues of workplace diversity in an ethical and responsible manner.

Control and Measure Results-

A HR Manager must conduct regular organizational assessments on issues like pay, benefits, work environment, management and promotional opportunities to assess the progress over the long term. There is also a need to develop appropriate measuring tools to measure the impact of diversity initiatives at the organization through organization-wide feedback surveys and other methods. Without proper control and evaluation, some of these diversity initiatives may just fizzle out, without resolving any real problems that may surface due to workplace diversity.

Motivational Approaches

Workplace motivation can be defined as the influence that makes us do things to achieve organizational goals: this is a result of our individual needs being satisfied (or met) so that we are motivated to complete organizational tasks effectively. As these needs vary from person to person, an organization must be able to utilize different motivational tools to encourage their employees to put in the required effort and increase productivity for the company.

Why do we need motivated employees? The answer is survival (Smith, 1994). In our changing workplace and competitive market environments, motivated employees and their contributions are the necessary currency for an organization's survival and success. Motivational factors in an organizational context include working environment, job characteristics, appropriate organizational reward system and so on.

The development of an appropriate organizational reward system is probably one of the strongest motivational factors. This can influence both job satisfaction and employee motivation. The reward system affects job satisfaction by making the employee more comfortable and contented as a result of the rewards received. The reward system influences motivation primarily through the perceived value of the rewards and their contingency on performance (Hickins, 1998).

To be effective, an organizational reward system should be based on sound understanding of the motivation of people at work. In this paper, I will be touching on the one of the more popular methods of reward systems, gain-sharing.

Gain-sharing:

Gain-sharing programs generally refer to incentive plans that involve employees in a common effort to improve organizational performance, and are based on the concept that the resulting incremental economic gains are shared among employees and the company.

In most cases, workers voluntarily participate in management to accept responsibility for major reforms. This type of pay is based on factors directly under a worker's control (i.e., productivity or costs). Gains are measured and distributions are made frequently through a predetermined formula. Because this pay is only implemented when gains are achieved, gain-sharing plans do not adversely affect company costs (Paulsen, 1991).

Managing Gain-sharing

In order for a gain-sharing program that meets the minimum requirements for success to be in place, Paulsen (1991) and Boyett (1988) have suggested a few pointers in the effective management of a gain-sharing program. They are as follows:

A HR manager must ensure that the people who will be participating in the plan are influencing the performance measured by the gain-sharing formula in a significant way by changes in their day-to-day behavior. The main idea of the gain sharing is to motivate members to increase productivity through their behavioral changes and working attitudes. If the increase in the performance measurement was due to external factors, then it would have defeated the purpose of having a gain-sharing program. An effective manager must ensure that the gain-sharing targets are challenging but legitimate and attainable. In addition, the targets should be specific and challenging but reasonable and justifiable given the historical performance, the business strategy and the competitive environment. If the gain-sharing participants perceive the target as an impossibility and are not motivated at all, the whole program will be a disaster. A manager must provide useful feedback as a guidance to the gain-sharing participants concerning how they need to change their behavior(s) to realize gain-sharing payouts The feedback should be frequent, objective and clearly based on the members' performance in relation to the gain-sharing target. A manager must have an effective mechanism in place to allow gain-sharing participants to initiate changes in work procedures and methods and/or requesting new or additional resources such as new technology to improve performance and realize gains. Though a manager must have a tight control of company's resources, reasonable and justifiable requests for additional resources and/or changes in work methods from gain-sharing participants should be considered.

Executive Information Systems

Executive Information System (EIS) is the most common term used for the unified collections of computer hardware and software that track the essential data of a business' daily performance and present it to managers as an aid to their planning and decision-making (Choo, 1991). With an EIS in place, a company can track inventory, sales, and receivables, compare today's data with historical patterns. In addition, an EIS will aid in spotting significant variations from "normal" trends almost as soon as it develops, giving the company the maximum amount of time to make decisions and implement required changes to put your business back on the right track. This would enable EIS to be a useful tool in an organization's strategic planning, as well as day-to-day management (Laudon, K and Laudon, J, 2003).

Managing EIS

As information is the basis of decision-making in an organization, there lies a great need for effective managerial control. A good control system would ensure the communication of the right information at the right time and relayed to the right people to take prompt actions.

When managing an Executive Information System, a HR manager must first find out exactly what information decision-makers would like to have available in the field of human resource management, and then to include it in the EIS. This is because having people simply use an EIS that lacks critical information is of no value-add to the organization. In addition, the manager must ensure that the use of information technology has to be brought into alignment with strategic business goals (Laudon, K and Laudon, J, 2003).

Conclusion

The role of the HR manager must parallel the needs of the changing organization. Successful organizations are becoming more adaptable, resilient, quick to change directions, and customer-centered. Within this environment, the HR professional must learn how to manage effectively through planning, organizing, leading and controlling the human resource and be knowledgeable of emerging trends in training and employee development.

The Challenges of Human Resource Management
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Dr.Alvin Chan is a Senior Research Consultant at a research think-tank in Asia.

alvinchan@firstquatermain.com

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Wednesday, January 23, 2013

Cash Management - How to Prepare a Daily Cash Position Report - Part 1

As I have mentioned earlier, cash flow report is a very important report that every business owner or entrepreneur must be able to analyze so that they can plan for their next move in business. Almost all business gurus and academicians have stress on the importance of preparing cash flow report but unfortunately none of them give specific guide lines on how to prepare it. Cash flow report that we mentioned here is a dynamic cash flow report where it will show us the cash position at any point of time and at the same time can act as a powerful tools to enable us to make as much money as we can by investing the surplus fund in a very short term investment such as money market placement. Cash flow statement that every accounting text book recommended is cash flow report generated from Balance Sheet and Profit & Loss Account and will give depth analysis on net cash flow recorded from operating, investing or financing activities.

First and foremost, if we have only one bank, the opening balance for our cash position for that month must be the closing balance for the preceding month. This can be derived from the Balance Sheet section under current asset which will state the closing balance of the bank balance for the preceding month. If for any reason the enterprise could not be able to produce their company's account such as P&L and Balance sheet due to their company's size, they can obtain the closing balance from their cash book as this is the basic information that they have to prepare if they still have not set up the accounting system for their business.

If you have only one bank for your business, it is advisable to prepare your payment according to the payment categories in your cash flow statement. For example, if you have decided that your payment categories are for payment of taxes, utilities bills, subcontractors, suppliers, petty cash and others, you should compile all your invoices and bills according to their respective categories. Once you start preparing your payment, you should write the cheques according to their serial number. For example, if your cheque start from no 000001, and you intend to prepare 20 pieces of cheques for suppliers payment, the serial no for the cheques prepared must be from 000001 to 000020.Subsequently, if you want to prepare 10 pieces of cheques for subcontractors, the serial numbers should be from 000021 till 000030.You can continue using the same technique to other payment as well. Whether you prepare payment manually or by using special printed cheque, you should follow the same technique.

Cash Management - How to Prepare a Daily Cash Position Report - Part 1

The same concept applies when we received incoming cheques from your clients and customers. By following the same technique, if you have some major clients that normally total up for almost 80% of your income, you are strongly advisable to classify all the major clients in your income categories. Other income that normally consist about 20% from your income, you can simply specify them under others categories.

Cash Management - How to Prepare a Daily Cash Position Report - Part 1
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Monday, January 21, 2013

Project Management: History and Evolution

Project management, as we know it at present began to stretch its branches only a few decades ago, yet it was mounting around civilization from the beginning of history.

With an objective of maximum productivity with minimum participation, and to breed imagination into realism, human need for an optimal management system that can trigger workforce efficiency to yield product, that is predetermined and objectified was outlining a management system within the growth of human perception though out its evolution.

This stream of development in its respective path also had marked its course from its source, and events in its voyages were observed and registered in the pages of history.

Project Management: History and Evolution

Turning these pages, today we witness a simple endeavor to illustrate and analyze tasks through simple bar charts cultivated seed yesterday, and within a short span of time, it had grown to a gigantic tree of the project management industry we witness at present.

"Henry Gantt" is considered to be the forefather of project management, as his planning and organizing methods with the use of the "bar charts" as a project management tool recognizes him as the foremost precursor for contemporary project management practices employed today.

However, civilization was practicing an anonymous management system for accomplishing tasks carried out by them since the beginning of civilization; as today we can witness Pyramids, Roman structures, etc as one of most exceptional achievements human workforces had ever delivered.

To consider these massive project missions without any proper management scheme would be an unjust platform to write about today for our ancestors. The conception of project management was there in the womb of our civilization from the beginning, but its name is coined and structure is fabricated by our modern world.

As a discipline, project management has evolved from numerous diverse fields, including engineering, construction, military projects, etc. If we have to mark the date of identification for this management system then we need to start not before the industrial revolution, as this revolution sprouted a complex need of organizational management and interaction. The need of budget management, workforce utilization, demand and supply scaling, compels to develop the management system that was methodological and goal oriented.

Frederick Taylor, who introduced a scientific approach for understanding productivity measurement through performance leveling, led him as the father of scientific approaches in organizational management systems.

Moreover, his associate Henry Gantt's use of the bar diagram as a gauging process for planning and controlling, acknowledged him as a father of project management tools.

But the 1950's was marked as a date for the beginning of modern project management; as before the 50's projects were managed only with the popular use of Gantt charts and informal tools and statistics.

Furthermore, the immediate launch of the Polaris submarine missile project to fulfill the need of the missile gap with Russia; the US Army systemized a "Program Evaluation and Review Technique" or PERT devised by Willard Fazar and the use of the "Critical Path Method" (CPM) a mathematical technique for management of complex projects, drives project management systems further with advances in scientific approaches.

In 1969, the Project Management Institute (PMI) was formed to professionalize and modernize through formalizing project management tools and techniques.

In addition, today with rapid technological advancement, thriving IT industries, and globalization, project management solutions are in demand throughout the world as a fundamental force to complete projects within a defined scope, time, and within cost constraints.

Management tasks, where few individuals use to manage and memorize before; now require advance systems and methodological approaches for organization decision-making and planning implementation.

At present ultra modern project management systems deliver innovative solutions and its management process possesses the latest tools and techniques, systems and schemes with scientific evidences and statistical explanations.

Project Management: History and Evolution
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Monday, January 7, 2013

6 Characteristics of Total Quality Management

TQM is a new method of quality management involving many levels and processes of different functions, but requiring an integrated cooperation. Characteristics of TQM can be listed as follows:

1. Target:

In TQM, the most important target to achieve is Quality; Quality policy must be set toward customer. Meeting customer's needs mean satisfying every customer requirement but not trying to reach some quality standards set before. Never stop innovating - never stop perfecting the quality is one of the most important principles of TQM.

6 Characteristics of Total Quality Management

2. Scope:

To ensure the quality of service and product, TQM system requires the extending of production process to suppliers and sub-contractors. Normally, the trading of material in production may account for 70% of final product cost (depend on types of product). Therefore, to ensure the quality of the input material, it is necessary to set up specific standards for each type of material to control its quality. It is also necessary to change the method of placing order to make it suitable with the production process.

3. Form:

In stead of controlling the quality of the finished product (after production), TQM sets up plans and programs to supervise and prevent problems right before the production process. Statistical tools are used to supervise, quantitatively analyze the results as well as factors affecting the quality, consider the reasons and take appropriate prevention methods.

4. Basis of TQM system:

The basis of TQM practice in the company is Human. Talking about quality, people usually think about the product quality. But it is the quality of employees that is the main concern of TQM. Of the three factors of Business, which are hard factor (machines, equipments, money...), Soft factor (methods, secrets, information...) and Human factor, Human is of the first concern to TQM.

The basic principle for implementation of TQM is that the qualification of employees is developed fully and integratedly through training, delegation and assignment.

5. Organization:

TQM system is cross organized and functioned in order to manage, integratedly corporate with different activities of the system and facilitate group working. The implementation of TQM requires the participation of high and middle level managers. A proper organization will help duties to be assigned clearly. Thus, TQM needs new management model, with different characteristics from the previous model.

6. Management skills and tools:

Methods to implement must be based on the principle "do correctly at the very beginning", in researching and designing to minimize economic cost. Strictly apply DEMMING circle (PDCA) to make foundation for the continuous quality improvement.

6 Characteristics of Total Quality Management
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