The various levels of organizational change programs may be classified into individual level changes, group level changes and organisational level changes. Individual Level Change Programs Individual level changes may take place due to changes in job assignment, transfer of an employee to a different location or the changes in the maturity level of a person which occurs over a passage of time. The general opinion is that change at the individual level will not have significant implications for the organisation. But this is not correct because individual level changes will have impact on the group which in turn will influence the whole organisation. Therefore, a manager should never treat the employees in isolation but he must understand that the individual level change will have repercussions beyond the individual. Group Level Change Programs Management must consider group factors while implementing any change, because most of the organisational changes have their major Continue reading
Modern Management Concepts
Learning Organization – Meaning and Importance
Learning organization means organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together. From this definition we can understand that learning organization is a team and organizational process rather than individual and it is a continuous never ending process. It is essential for a learning organization to make creative and better ways of learning and improving its performance. It becomes a part of the continuous process of sharing information with people and the environment, and exchanging and disseminating information. A learning organization is entirely different from a traditional organization as it has the capacity to make changes continuously. The theory of organizational learning stresses the importance of policies and procedures inside the organization in response to the outside consequences even though Continue reading
Responsibility Reporting
The essence of responsibility accounting is the collection of costs according to responsibility centers in order that variances from standard costs and budgets can be identified with persons, and based on the causes of variances, corrective actions may be initiated. Reports are prepared to inform a responsibility center manager how well he has performed in terms of costs. The purpose is not to indicate failure or to find fault. Responsibility reporting is the crucial phase of responsibility accounting. Responsibility reporting requires grouping and defining responsibility within an organization structure, determining and assigning costs to appropriate levels and activities and placing a strong emphasis on cost controllability. Reports prepared under responsibility accounting may be known as performance reports. These reports are prepared with the purpose of: informing each manager of his achievement in controlling costs of his center; pointing out each manager’s accountability for costs incurred; and presenting cost information Continue reading
Positive Impacts of Entrepreneurship on the Economy
As economies continue to integrate due to globalization and formally closed economies like India and China march toward total liberalization, entrepreneurship is on the increase. A close analysis of developed and industrialized economies indicates a common denominator that stands out amongst all of them. This is the most important role played by entrepreneurship and entrepreneurs in such economies. This phenomenon has proved to us that if an economy is to develop fully, entrepreneurship should be allowed to flourish. Innovation Individuals often resort to entrepreneurship for one of the following reasons; they find a market niche and have the solution to profit from such niche; they have been unable to find suitable employment or a suitable means of income and therefore have resorted to using their creativity to generate an income for themselves; or they have the technological know-how and the financial resources (or able to source all of the above) Continue reading
Social Network Analysis
Billions of people create trillions of connections through social media each day, but few of us consider how each click and key press builds relationships that, in aggregate, form a vast social network. Passionate users of social media tools such as email, blogs, microblogs, and wikis eagerly send personal or public messages, post strongly felt opinions, or contribute to community knowledge to develop partnerships, promote cultural heritage, and advance development. Devoted social networkers create and share digital media and rate or recommend resources to pool their experiences, provide help for neighbors and colleagues, and express their creativity. The results are vast, complex networks of connections that link people to other people, documents, locations, concepts, and other objects. New tools are now available to collect, analyze, visualize, and generate insights from the collections of connections formed from billions of messages, links, posts, edits, uploaded photos and videos, reviews, and recommendations. As Continue reading
Whittington’s Classical and Processual Schools of Thought
Strategic management is becoming more important for business construction. Especially, the changing in business environment could threat to organization’s stability. Whittington (2000) introduced four approaches to strategy which are classical approach, systemic approach, evolutionary approach and processual approach. Whilst planning are made through market changes adaptability in classical school, strategies must be updated daily to survive in unpredictable market in evolutionary school. Different from the two approaches, Whittington, 2000 mentioned: “ Processualist emphasis the sticky imperfect nature of all human life, pragmatically accommodating strategy to the fallible processes of both organizations and markets. Systemic approach is relativistic, regarding the ends and means of strategy as inescapably linked to the cultures and powers of the local social systems in which it takes place” Whittington noted that the main principle of “processual” is to accept unattainable ideal of rational fluid action and work with it. The Approach was laid by American Carnegie Continue reading