Entrepreneurship is the act of being an entrepreneur, which is a French word meaning “one who undertakes an endeavor”. Entrepreneurs assemble resources including innovations, finance and business acumen in an effort to transform innovations into economic goods. The most obvious form of entrepreneurship is that of starting new businesses; however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population. According to A.H. Cole, “Entrepreneurship is the purposeful activity of an individual or group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods or services”. Entrepreneurship promotes small business in the society. Government has accepted the fact Continue reading
Management Concepts
Levels and Types of Organizational Change
Change is not an easy factor to go through. Taking in to account that it does not matter if it is a change of rules, space or simple habits. The concept of change involves many other functions. Where the resistance to it, sometimes is hard to adapt or maybe just simple depending the management and organization between one and more individuals, which makes part of an organization structure and affect a whole organization. Organizational change in inevitable just like anything in life, in addition to this the evolution of the world markets and cultures. Makes the change something that requires constant attention and preparation. In order to be successful in any market, an organization has to be able to transform an evaluate different kind of statements that show the importance of organizational change in the develop of a company. Change is understood as doing things differently in order to cope Continue reading
4 Phases of Hawthorne Experiment – Explained
At the beginning of the 20th century, companies were using scientific approaches to improve worker productivity. But that all began to change in 1924 with the start of the Hawthorne Studies, a 9-year research program at Western Electric Companies. The program, of which Elton Mayo and Fritz Roethlisberger played a major role, concluded that an organization’s undocumented social system was a powerful motivator of employee behavior. The Hawthorne Studies led to the development of the Human Relations Movement in business management. The experiment was about measuring the impact of different working conditions by the company itself (such as levels of lighting, payment systems, and hours of work) on the output of the employees. The researchers concluded that variations in output were not caused by changing physical conditions or material rewards only but partly by the experiments themselves. The special treatment required by experimental participation convinced workers that management had a Continue reading
Overcoming Challenges to Effective Organizational Performance
The main obstacles to effective organizational performance is already covered in this blog and the ways to overcome them are discussed below. 1. Employees Training and Development The hope is that employees who receive training in line with their individual or organizational goals will become more efficient in what they do. Organizations should look at the positive effects of training on employee performance, and consider employee development as a targeted investment into making the front line worker stronger. More importantly, development plans that include “train-the-trainer” (training that trains employees to become trainers of a skill) can provide exponential benefits to the organization. This training can be anything from how employees can do their own jobs better to these employees being groomed to replace their supervisor. In addition, employees who are invested as a trainer might be further inclined to stay with the organization, and possibly reduce employee turnover. 2. Motivation Continue reading
Creating a Business Plan – Writing a Business Plan – Components of a Business Plan
Elements or Components of a Business Plan There are no substitutes for a well-prepared business plan, and there are no short cuts to creating one. Each business plan is unique and must be tailor made because each business is unique. So the plans are not cast in stone: Entrepreneurs may want to make alterations to suit the specifics of their business. The elements or components of a business plan may be standard, but how entrepreneurs tell their story should be unique and reflect their personal excitement about the new venture. Although building a business plan doesn’t guarantee success, it does raise an entrepreneur’s chance of succeeding in business. A business plan typically ranges from 25 to 55 pages in length. Shorter plans typically are too sketchy to be of any value and those much longer than this run the risk of never getting used or read. However, entrepreneurs must recognize Continue reading
Types of Information Used in Business
Information used in business can be either systematic or non-systematic. Our discussion is generally limited to information that flows through a formal system, but it is important to keep in mind the fact that a great deal of information reaches the manager from sources outside the formal system. Newspaper and other news media, conversations, and even a manager’s perception of a colleague’s facial expressions are important sources of information. Many managers give more-attention to such sources than to the formal reports. Information can be external or Internal. Much information that is relevant to the manager flows into the organization form the outside environment. This information can be systematic regular reports from trade associations, government agencies, and so for, or it can be unsystematic. Information from and about the environment that s rounds the organization is important, but we do not discuss it extensively in this book because of its wide Continue reading