The process consultation view has been advocated by Schein since late 60’s (first edition 1969). It belongs to activities of organization development (OD). OD is one of part of the organization processes which aim improving organizational and individual effectiveness. Process consultation (PC) is one of the OD techniques, enlisted with sensitivity training (self €improvement), survey feedback (introspection),team building (socializing), and role negotiation (changing roles and perception. The main argument of Schein for process consulting is to help people in organizations to help themselves. Process Consultation is the creation of a relationship with the client that permits the client to perceive, understand, and act on the process events that occur in the client’s internal and external environment in order to improve the situation as defined by the client. Edgar Schein, (1969) Process Consultation: Its role in organization development Process consultation is the reasoned and intentional interventions by the consultant, into the Continue reading
Modern Management Concepts
The Pros and Cons of Securitization
Securitization forces banks to compete with institutional investors and other financial institutions for the business of prime borrowers. In response, banks are beginning to provide borrowers with a range of fee-earning services that facilitate the sale of debt instruments to investors. For example, banks offer borrowers note-issuing or underwriting facilities instead of loans and agree to help borrowers sell their debt instruments to investors as and when needed. Banks may also agree to purchase only the unsold portion of the debt issue. Thus, securitization is moving banks away from performing traditional banking functions, such as extending credit in exchange for periodic interest payments. In addition, securitization provides the creditor with two significant benefits. Because the lender can choose whether to trade the notes or to hold them to maturity, the lender can better manage its credit limits and asset portfolio. The bank also earns a major part of its income Continue reading
Overview of Reverse Innovation Concept
Vijay Govindarajan and Chris Trimble, in their book on Reverse Innovation defined the term “Reverse Innovation”; they define it as any idea, which will be first adopted in developing world. This phenomenon was not very common in the past for a simple reason that the rich and affluent that had the ability to demand were mostly concentrated in developed nations. Demand drove the technology and hence most of innovations happened in the west. United States and Germany have about 300 noble laureates in science and technology, while India and China who are six times in population have less than ten of them in total. Most of the solutions that were innovated in the west were hence imported. Slightly modified versions of the global products, mostly their low-end were “Glocalized” and were seem to be most relevant. This view, over time, is seemed to be no longer accurate. The nature of Continue reading
Innovation Management – Managing Innovation in Business
For many organizations and countries alike, innovation and innovation management are no longer luxury items, but rather necessities and a means of sustaining economic development and competitiveness. To serve customer well and maintain the competitive position in business, companies are forced to focus on the creation, updating, availability, quality & use of innovation by all employees and teams at work and in the market place. Innovation can be defined as the implementation of new created ideas for generating business value. Many times, people use the term ‘innovation’ for ‘innovation creation’. But there is a difference between the two. While innovation creation is an important aspect of innovation processes, so is the ability to search for and identify relevant external innovation, applying existing innovation to new contexts, understand and absorb unfamiliar external innovation to blend and integrate different bodies of innovation together. Thus innovation processes are much more than innovation creation Continue reading
Business Process Reengineering (BPR)
History of Business Process Reengineering (BPR) Concept In 1990, Michael Hammer, a former professor of computer science at the Massachusetts Institute of Technology (MIT), published an article in the Harvard Business Review, in which he claimed that the major challenge for managers is to obliterate non-value adding work, rather than using technology for automating it. This statement implicitly accused managers of having focused on the wrong issues, namely that technology in general, and more specifically information technology, has been used primarily for automating existing work rather than using it as an enabler for making non-value adding work obsolete. Hammer’s claim was simple: Most of the work being done does not add any value for customers, and this work should be removed, not accelerated through automation. Instead, companies should reconsider their processes in order to maximize customer value, while minimizing the consumption of resources required for delivering their product or service. Continue reading
Business Analytics – Meaning, Use and Scope
Business Analytics deals with the methodologies employed by organizations to enhance their business by making optimized decisions with the use of statistical techniques that might involve data collection and analysis. Business analytics might require many complex techniques that need advanced statistics. Applying Business Analytics, it may be possible to find how a territory or a region reacts to certain product variations or added features. This information can be very useful in devising new product line with features that are likely to maximize sales in a particular region for a set of target audiences. A proper analysis of data might also tell about things like recurring customer support issues and thereby proactive steps can be taken before it grows out of proportion. Business Analytics is often used by marketing folks in predicting and analyzing consumer behavior. This is done by applying statistical analytical techniques on historical data of customer transactions. Without Continue reading