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The Nature of Organization
Sasmira College of Management 1
Organization
“An identified group of people
contributing their efforts towards the
attainment of goal is called an
organization”
2Sasmira College of Management
Organizational structure
“Explicit and implicit institutional rules and policies designed to
provide a structure where various work roles and responsibilities
are delegated, controlled and coordinated.”
• Features of good organization
structure
 Clear line of authority.
 Application of ultimate responsibility.
 Minimum managerial levels.
 Unity of direction.
 Proper emphasis on staff activities.
 Simplicity.
 Flexibility.
-
3Sasmira College of Management
Departmentation
“Departmentation is process of dividing the large
functional organization into small & flexible &
administrative unit.”
Types of Departmentation
 Departmentation by Product
 Departmentation by Function
 Departmentation by Region or Territory
 Departmentation by Customer
 Departmentation by Process
4Sasmira College of Management
Line organization structure
 Similar activities are performed at a particular
level
 Each group activities is self contained unit & able
to perform the assigned activities without
assistance of others
Foramen
A
Foramen
B
Foramen C
Foramen D
Production Manager
workers workers workers workers
5Sasmira College of Management
Departmental Line Organization Structure
 Entire activities are divided into different
department on the basis of similarity of
activities
 All department are controlled by departmental
head
Foramen
A
Spinning
Foramen
B
weaving
Foramen D
finishing
Production Manager
workers
workers
workers
workers
Foramen C
Dyeing
6Sasmira College of Management
Characteristics of Line Organization structure
1. Lines of authority & instruction are vertical
2. The unity of command is maintained in straight &
unbroken line
3. All person at the same level of organization are
independent of each other
Advantages
1. Simplicity
2. Discipline
3. Prompt decision
4. Orderly communication
5. Easy supervision & control
6. Economical
Disadvantages
1. Lack of specialization
2. Autocratic approach
3. Problems of co-ordination
4. Not suitable for large scale organization
7Sasmira College of Management
Line & staff Organization Structure
It structures refers to a pattern in which staff
specialist advice managers to perform their
duties.
General ManagerSecretary Public relation
Manager finance Manager HR
Manager Production
Manager Marketing
Production eng Sales officer
foreman Sales supervisor
worker salesman
8Sasmira College of Management
Authority and Decentralization
9Sasmira College of Management
Authority
It is the formal right given to a person to
command or to give order to perform a
certain task.
Authority is given to a manager to achieve the
objectives of the organization.
It is the right to get the things done through
others.
10Sasmira College of Management
Decentralization
Every organization has to decide as to how
much decision – making authority should be
centralized, in hands of the chief executive
and how much should be distributed among
the managers at lower levels.
The Greater is the number of decisions made
at lower levels.
11Sasmira College of Management
Implication of Authority
Expert authority: achieved through formal
mechanisms such as certifications or
education. Project Managers have several
formal certifications available from global
certification bodies such as the Project
Management Professional.
Lead person takes the decision.
Work burden is on subordinates.
12Sasmira College of Management
Implication of Decentralization
Less burden on the lead person as in the of
authority
Subordinates get a change to decide and act
independently
Co-ordination to some extend is difficult to
maintain
13Sasmira College of Management
CO-ORDINATION
MEANING:
Coordination is the unification, integration, synch
ronization of the efforts of group members so as
to provide unity of action in the pursuit of comm
on goals. It is a hidden force which binds all the o
ther functions of management.
Definition: According to Mooney and Reelay,
“Coordination is orderly arrangement of group eff
orts to provide unity of action in the pursuit of co
mmon goals”.
14Sasmira College of Management
Why Co-ordination ?
According to management experts coordination is necessary
because:
 Coordination is the Essence of Management." I.e. Coordinat
ion affects all the functions of management, viz., Planning,
Organizing, Staffing, etc.
Coordination is a function of management.
 Coordination is a principle of management, and all other pri
nciples are included in this one principle, i.e. Co-
ordination is the "Mother Principle".
15Sasmira College of Management
Structure of co-ordination
16Sasmira College of Management
Characteristics of coordination
 Coordination is not an distinct
function but the very essence of
management .
 Coordination is the basic
responsibility of management and it
can be achieved through managerial
functions.
 Coordination does not arise
spontaneously or by force.
 Heart of coordination is ”unity of
action ”
 Coordination is dynamic process.
 coordination is required in a group
efforts not in individual efforts.
 Coordination has a common purpose
of getting organizational objectives
accomplished.
17Sasmira College of Management
Organization Human factors
Meaning: Human factors and ergonomics (HF&E),
also known as comfort design, functional design, and
user-friendly systems, is the practice of designing
products, systems or processes to take proper
account of the interaction between them and the
people who use them.
 The field has seen contributions from numerous
disciplines, such
as psychology, engineering, biomechanics, industrial
design, physiology and anthropometry.
18Sasmira College of Management
Importance of Human Factor in coordination:
Human resources are utilized to
the
maximum possible extent in order
to achieve individual and
organizational goals.
An organization’s performance
and productivity are directly
proportional to the quantity and
quality of its human resources.
Human factor is the most valuab
le asset of an organization, and
not the money
or physical equipment.
19Sasmira College of Management
Effective organization structure
“An organizational structure defines how activities such as
task allocation, coordination and supervision are directed
towards the achievement of organizational aims.It can also be
considered as the viewing glass or perspective through which
individuals see their organization and its environment.”
20Sasmira College of Management
Planning for the Ideal
 The search for an ideal organization to reflect
enterprise goals under given circumstances is
impetus to planning. The ultimate form established,
like all other plans, seldom remains unchanged, and
continuous remolding of the ideal plan is normally
necessary.
 An ideal organization plan constitutes a standard,
and by comparing the present structure with it,
enterprise leaders know what changes should be
made when possible.
21Sasmira College of Management
Advantages of Organization Planning
 Planning the organization structure helps
determine future personnel need and required
training programs.
 Furthermore organization planning can disclose
weakness such as, duplication of effort, unclear lines
of authority, and overlong lines of communication.
22Sasmira College of Management
Global Organizing
“Global organization means organization with an
international membership ,scope or
presence.”
Meaning of Global Organizing in Business
“It is an essential activity that every decision
maker must perform to keep pace in today’s
world.”
23Sasmira College of Management
Characteristics of Global Organizing
 Overseas experience
 Deep Self-Awareness
 Sensitivity to cultural diversity
 Humility
 Lifelong curiosity
 Well-spoken
 Good negotiator
 Presence
24Sasmira College of Management
Roles of Global Organizing
Collecting statistical information
Analyzing the trends in the variables
Making comparative study and disseminate
the information to all other countries
Types
Multinational corporation
Transnational corporation
Borderless organization
25Sasmira College of Management
Goals
Profitability
Customer service
Retention
Efficiency
Growth
26Sasmira College of Management
Motivation
An inferred process within an animal or an
individual that causes that organism to move
towards a goal.
Need, Drive
Goal 27Sasmira College of Management
Motivational Techniques
• Leads them
• Real examples are quicker than advice
• Way to influencing people
• Appeal to benefits
• Can motivate
• Mutual benefits to both of you
• Appeal to emotions
• People act quickly to emotions
• Positive manner
• Sustained by repeated inputs
• Appeal to needs & wants
• basic needs satisfaction
• Creative expression, recognition & challenges & love
• Appeal to expertise
• Abilities enhance his self-worth
• Put best effort to seek approval 28Sasmira College of Management
Goal-Setting
 Goals are desired result, purpose, or objective that one
strives to attain
 Goals are:
Specific
Measurable
Attainable
Relevant/Realistic
Time-Oriented.
29Sasmira College of Management
Types of Goals
Short-term
A goal that can be achieved in a relative
short period of time.
Ex: To complete the course.
Long-term
A goal that takes a long period of time to
achieve.
Ex: Great success in career.
30Sasmira College of Management
"Leadership is a function of knowing yourself,
having a vision that is well communicated,
building trust among colleagues, and taking
effective action to realize your own leadership
potential."
31Sasmira College of Management
Types of Leadership
 Autocratic leadership.
Democratic leadership.
Laissez – faire leadership.
Paternalistic leadership.
32Sasmira College of Management
Why Is Leadership Important ?
“Generally people think companies compete by
means of their products but they probably
compete more by means of their leaders and
their products. Better leaders develop better
employees and the two together develop better
products.”
33Sasmira College of Management
Why Do We Need Leaders ?
Leadership is an attitude.
Leadership encourages us to realize our real
potential.
Leaders make us confident.
Leaders invoke the sense of responsibilities.
Leaders love their subordinates grow.
34Sasmira College of Management
Group decision making
“Group decision-making is a situation faced
when individuals collectively make a choice
from the alternatives before them. The
decision is then no longer attributable to any
single individual who is a member of
the group.”
35Sasmira College of Management
Steps to rational decision making model
 Define the problem.
 Identify the criteria.
 Allocate weights to the criteria.
 Develop alternatives.
 Evaluate the alternatives.
 Select the best alternatives.
36Sasmira College of Management
Advantages
 Generates more
complete information &
knowledge
 Offers increased
diversity of views
 Generates higher quality
decisions
 Leads to increased
acceptance of a solution
Disadvantages
 More time consuming
 Conformity pressures in
groups
 Discussion can be
dominated by one or a
few members
 Decision suffer from
ambiguous responsibility
37Sasmira College of Management
Communication
What is communication ?
 It is a process of exchanging
 Ideas
 Thoughts
 Feelings
 Emotions
Through
 Speech
 Signals
 Writing
 Behavior
38Sasmira College of Management
What is organizational
communication?
• “Organizational communication is the
process by which activities of an organization
are collected and coordinated to reach
the goals of both individuals and the
organization”.
Sasmira College of Management 39
SENDER
Communication Process
Communication is the process of sending and
receiving information among people.
Medium
RECEIVER
Feedback
receiver
sender
Use of
channel to
transmit
the
message
40Sasmira College of Management
Types of Business communication
 Internal communication: This is the communication
that takes place within an organization. In addition
to the usual face to face, telephone, fax or mail;
modern organizations may use technology to
communicate internally. Technology may be used
for e-mails or a linked internal communication.
 External communication: Communication between
the organization and those outside the organization.
The communicate with other businesses can be
through telephone, fax ,internet etc. 41Sasmira College of Management
The Structure and mode of organizational
communication
 Horizontal / Lateral Communication
The exchanges between and among agencies and personnel
on the same level of the organization chart.
Horizontal communication aims at:
– Task coordination: (Inter Personal & Departmental)
– Problem solving: (Discussion & Brainstorming)
– Information sharing: (Inter Personal & Departmental)
– Conflict resolution: (Inter Personal & Departmental)
 Vertical Communication
» Upward Communication
» Downward Communication
 Diagonal Communication
42Sasmira College of Management
Upward communication
Upward communication -the process whereby the ideas, feelings, and
perceptions of lower-level employee are communicated to those at higher
levels in the organization.
Functions:
 It provides management with needed information for decision
making.
 It helps employees relieve the pressures and frustrations of the
work situation.
 It enhances employees’ sense of participation in the enterprise.
 It serves as a measure of the effectiveness of downward
communication.
43Sasmira College of Management
Downward communication
Such communication is initiated by the organization’s upper management
and then filters downward through the “chain of command”.
 People are limited as to the amount of information they can
effectively absorb and react to.
 Therefore, management must, of necessity, restrict what it
communicates to subordinates.
 Organization implies some restriction of communication. Without
restrictions on communication, any organizational member could be
buried under an avalanche of incoming messages from all the other
members.
44Sasmira College of Management
Diagonal Communication
 This occurs when communication occurs between workers in a
different section of the organization where one worker is on a
higher level.
 For example diagonal communication will occur when a
department manager converses with an employee in another
department.
 It allows cross communication between departments
45Sasmira College of Management
Why Global Leading ?
 Organizations grow increasingly more global NOT less
so.
 Creating the right kind of organization to meet the
global economy is key.
 Talented managers with global mindset are not
enough – it requires structures, processes and
practices.
46Sasmira College of Management
Objectives
 Provide state-of-art knowledge on global
mindset .
Offer inspiration from “company-specific” global
mindset practices.
 Assist in clarifying the potential contribution of
global mindset in your own organizational
context .
 Assist in identifying enablers and barriers that
either contribute to or hinder the development of
global mindset in own organization.
47Sasmira College of Management
Why Global Mindset ?
• ”Global mindset is being comfortable with
being uncomfortable in uncomfortable
places.”
48Sasmira College of Management
Benefits of Global Mindset
The content and processes of multinational
firms’ sense making systems can be a distinct
competitive advantage or disadvantage.
“A grasp of and insight into the needs of the
local market, it is also able to build cognitive
bridges across these needs and between these
needs and the company’s own global
experience and capabilities.
49Sasmira College of Management
Thank You
50Sasmira College of Management

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The Nature of Organization

  • 1. The Nature of Organization Sasmira College of Management 1
  • 2. Organization “An identified group of people contributing their efforts towards the attainment of goal is called an organization” 2Sasmira College of Management
  • 3. Organizational structure “Explicit and implicit institutional rules and policies designed to provide a structure where various work roles and responsibilities are delegated, controlled and coordinated.” • Features of good organization structure  Clear line of authority.  Application of ultimate responsibility.  Minimum managerial levels.  Unity of direction.  Proper emphasis on staff activities.  Simplicity.  Flexibility. - 3Sasmira College of Management
  • 4. Departmentation “Departmentation is process of dividing the large functional organization into small & flexible & administrative unit.” Types of Departmentation  Departmentation by Product  Departmentation by Function  Departmentation by Region or Territory  Departmentation by Customer  Departmentation by Process 4Sasmira College of Management
  • 5. Line organization structure  Similar activities are performed at a particular level  Each group activities is self contained unit & able to perform the assigned activities without assistance of others Foramen A Foramen B Foramen C Foramen D Production Manager workers workers workers workers 5Sasmira College of Management
  • 6. Departmental Line Organization Structure  Entire activities are divided into different department on the basis of similarity of activities  All department are controlled by departmental head Foramen A Spinning Foramen B weaving Foramen D finishing Production Manager workers workers workers workers Foramen C Dyeing 6Sasmira College of Management
  • 7. Characteristics of Line Organization structure 1. Lines of authority & instruction are vertical 2. The unity of command is maintained in straight & unbroken line 3. All person at the same level of organization are independent of each other Advantages 1. Simplicity 2. Discipline 3. Prompt decision 4. Orderly communication 5. Easy supervision & control 6. Economical Disadvantages 1. Lack of specialization 2. Autocratic approach 3. Problems of co-ordination 4. Not suitable for large scale organization 7Sasmira College of Management
  • 8. Line & staff Organization Structure It structures refers to a pattern in which staff specialist advice managers to perform their duties. General ManagerSecretary Public relation Manager finance Manager HR Manager Production Manager Marketing Production eng Sales officer foreman Sales supervisor worker salesman 8Sasmira College of Management
  • 10. Authority It is the formal right given to a person to command or to give order to perform a certain task. Authority is given to a manager to achieve the objectives of the organization. It is the right to get the things done through others. 10Sasmira College of Management
  • 11. Decentralization Every organization has to decide as to how much decision – making authority should be centralized, in hands of the chief executive and how much should be distributed among the managers at lower levels. The Greater is the number of decisions made at lower levels. 11Sasmira College of Management
  • 12. Implication of Authority Expert authority: achieved through formal mechanisms such as certifications or education. Project Managers have several formal certifications available from global certification bodies such as the Project Management Professional. Lead person takes the decision. Work burden is on subordinates. 12Sasmira College of Management
  • 13. Implication of Decentralization Less burden on the lead person as in the of authority Subordinates get a change to decide and act independently Co-ordination to some extend is difficult to maintain 13Sasmira College of Management
  • 14. CO-ORDINATION MEANING: Coordination is the unification, integration, synch ronization of the efforts of group members so as to provide unity of action in the pursuit of comm on goals. It is a hidden force which binds all the o ther functions of management. Definition: According to Mooney and Reelay, “Coordination is orderly arrangement of group eff orts to provide unity of action in the pursuit of co mmon goals”. 14Sasmira College of Management
  • 15. Why Co-ordination ? According to management experts coordination is necessary because:  Coordination is the Essence of Management." I.e. Coordinat ion affects all the functions of management, viz., Planning, Organizing, Staffing, etc. Coordination is a function of management.  Coordination is a principle of management, and all other pri nciples are included in this one principle, i.e. Co- ordination is the "Mother Principle". 15Sasmira College of Management
  • 16. Structure of co-ordination 16Sasmira College of Management
  • 17. Characteristics of coordination  Coordination is not an distinct function but the very essence of management .  Coordination is the basic responsibility of management and it can be achieved through managerial functions.  Coordination does not arise spontaneously or by force.  Heart of coordination is ”unity of action ”  Coordination is dynamic process.  coordination is required in a group efforts not in individual efforts.  Coordination has a common purpose of getting organizational objectives accomplished. 17Sasmira College of Management
  • 18. Organization Human factors Meaning: Human factors and ergonomics (HF&E), also known as comfort design, functional design, and user-friendly systems, is the practice of designing products, systems or processes to take proper account of the interaction between them and the people who use them.  The field has seen contributions from numerous disciplines, such as psychology, engineering, biomechanics, industrial design, physiology and anthropometry. 18Sasmira College of Management
  • 19. Importance of Human Factor in coordination: Human resources are utilized to the maximum possible extent in order to achieve individual and organizational goals. An organization’s performance and productivity are directly proportional to the quantity and quality of its human resources. Human factor is the most valuab le asset of an organization, and not the money or physical equipment. 19Sasmira College of Management
  • 20. Effective organization structure “An organizational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims.It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.” 20Sasmira College of Management
  • 21. Planning for the Ideal  The search for an ideal organization to reflect enterprise goals under given circumstances is impetus to planning. The ultimate form established, like all other plans, seldom remains unchanged, and continuous remolding of the ideal plan is normally necessary.  An ideal organization plan constitutes a standard, and by comparing the present structure with it, enterprise leaders know what changes should be made when possible. 21Sasmira College of Management
  • 22. Advantages of Organization Planning  Planning the organization structure helps determine future personnel need and required training programs.  Furthermore organization planning can disclose weakness such as, duplication of effort, unclear lines of authority, and overlong lines of communication. 22Sasmira College of Management
  • 23. Global Organizing “Global organization means organization with an international membership ,scope or presence.” Meaning of Global Organizing in Business “It is an essential activity that every decision maker must perform to keep pace in today’s world.” 23Sasmira College of Management
  • 24. Characteristics of Global Organizing  Overseas experience  Deep Self-Awareness  Sensitivity to cultural diversity  Humility  Lifelong curiosity  Well-spoken  Good negotiator  Presence 24Sasmira College of Management
  • 25. Roles of Global Organizing Collecting statistical information Analyzing the trends in the variables Making comparative study and disseminate the information to all other countries Types Multinational corporation Transnational corporation Borderless organization 25Sasmira College of Management
  • 27. Motivation An inferred process within an animal or an individual that causes that organism to move towards a goal. Need, Drive Goal 27Sasmira College of Management
  • 28. Motivational Techniques • Leads them • Real examples are quicker than advice • Way to influencing people • Appeal to benefits • Can motivate • Mutual benefits to both of you • Appeal to emotions • People act quickly to emotions • Positive manner • Sustained by repeated inputs • Appeal to needs & wants • basic needs satisfaction • Creative expression, recognition & challenges & love • Appeal to expertise • Abilities enhance his self-worth • Put best effort to seek approval 28Sasmira College of Management
  • 29. Goal-Setting  Goals are desired result, purpose, or objective that one strives to attain  Goals are: Specific Measurable Attainable Relevant/Realistic Time-Oriented. 29Sasmira College of Management
  • 30. Types of Goals Short-term A goal that can be achieved in a relative short period of time. Ex: To complete the course. Long-term A goal that takes a long period of time to achieve. Ex: Great success in career. 30Sasmira College of Management
  • 31. "Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own leadership potential." 31Sasmira College of Management
  • 32. Types of Leadership  Autocratic leadership. Democratic leadership. Laissez – faire leadership. Paternalistic leadership. 32Sasmira College of Management
  • 33. Why Is Leadership Important ? “Generally people think companies compete by means of their products but they probably compete more by means of their leaders and their products. Better leaders develop better employees and the two together develop better products.” 33Sasmira College of Management
  • 34. Why Do We Need Leaders ? Leadership is an attitude. Leadership encourages us to realize our real potential. Leaders make us confident. Leaders invoke the sense of responsibilities. Leaders love their subordinates grow. 34Sasmira College of Management
  • 35. Group decision making “Group decision-making is a situation faced when individuals collectively make a choice from the alternatives before them. The decision is then no longer attributable to any single individual who is a member of the group.” 35Sasmira College of Management
  • 36. Steps to rational decision making model  Define the problem.  Identify the criteria.  Allocate weights to the criteria.  Develop alternatives.  Evaluate the alternatives.  Select the best alternatives. 36Sasmira College of Management
  • 37. Advantages  Generates more complete information & knowledge  Offers increased diversity of views  Generates higher quality decisions  Leads to increased acceptance of a solution Disadvantages  More time consuming  Conformity pressures in groups  Discussion can be dominated by one or a few members  Decision suffer from ambiguous responsibility 37Sasmira College of Management
  • 38. Communication What is communication ?  It is a process of exchanging  Ideas  Thoughts  Feelings  Emotions Through  Speech  Signals  Writing  Behavior 38Sasmira College of Management
  • 39. What is organizational communication? • “Organizational communication is the process by which activities of an organization are collected and coordinated to reach the goals of both individuals and the organization”. Sasmira College of Management 39
  • 40. SENDER Communication Process Communication is the process of sending and receiving information among people. Medium RECEIVER Feedback receiver sender Use of channel to transmit the message 40Sasmira College of Management
  • 41. Types of Business communication  Internal communication: This is the communication that takes place within an organization. In addition to the usual face to face, telephone, fax or mail; modern organizations may use technology to communicate internally. Technology may be used for e-mails or a linked internal communication.  External communication: Communication between the organization and those outside the organization. The communicate with other businesses can be through telephone, fax ,internet etc. 41Sasmira College of Management
  • 42. The Structure and mode of organizational communication  Horizontal / Lateral Communication The exchanges between and among agencies and personnel on the same level of the organization chart. Horizontal communication aims at: – Task coordination: (Inter Personal & Departmental) – Problem solving: (Discussion & Brainstorming) – Information sharing: (Inter Personal & Departmental) – Conflict resolution: (Inter Personal & Departmental)  Vertical Communication » Upward Communication » Downward Communication  Diagonal Communication 42Sasmira College of Management
  • 43. Upward communication Upward communication -the process whereby the ideas, feelings, and perceptions of lower-level employee are communicated to those at higher levels in the organization. Functions:  It provides management with needed information for decision making.  It helps employees relieve the pressures and frustrations of the work situation.  It enhances employees’ sense of participation in the enterprise.  It serves as a measure of the effectiveness of downward communication. 43Sasmira College of Management
  • 44. Downward communication Such communication is initiated by the organization’s upper management and then filters downward through the “chain of command”.  People are limited as to the amount of information they can effectively absorb and react to.  Therefore, management must, of necessity, restrict what it communicates to subordinates.  Organization implies some restriction of communication. Without restrictions on communication, any organizational member could be buried under an avalanche of incoming messages from all the other members. 44Sasmira College of Management
  • 45. Diagonal Communication  This occurs when communication occurs between workers in a different section of the organization where one worker is on a higher level.  For example diagonal communication will occur when a department manager converses with an employee in another department.  It allows cross communication between departments 45Sasmira College of Management
  • 46. Why Global Leading ?  Organizations grow increasingly more global NOT less so.  Creating the right kind of organization to meet the global economy is key.  Talented managers with global mindset are not enough – it requires structures, processes and practices. 46Sasmira College of Management
  • 47. Objectives  Provide state-of-art knowledge on global mindset . Offer inspiration from “company-specific” global mindset practices.  Assist in clarifying the potential contribution of global mindset in your own organizational context .  Assist in identifying enablers and barriers that either contribute to or hinder the development of global mindset in own organization. 47Sasmira College of Management
  • 48. Why Global Mindset ? • ”Global mindset is being comfortable with being uncomfortable in uncomfortable places.” 48Sasmira College of Management
  • 49. Benefits of Global Mindset The content and processes of multinational firms’ sense making systems can be a distinct competitive advantage or disadvantage. “A grasp of and insight into the needs of the local market, it is also able to build cognitive bridges across these needs and between these needs and the company’s own global experience and capabilities. 49Sasmira College of Management