Organizational Change simply refers to alteration in the existing conditions of an organization. Even in most stable organizations change is necessary to maintain stability. The economic and social environment is so dynamic that without adapting to such change even the most successful organizations cannot survive in the changed environment. Therefore, management must continuously monitor the outside environment and be sufficiently innovative and creative to implement these changes effectively. Two Approaches to Organizational Change As organizational change is a complex process, therefore managers must approach it systematically and logically. Some organizational changes are planned whereas other changes are reactive. Planned change is designed and implemented by an organization in an orderly and timely fashion in the anticipation of future change. Reactive change results from a reaction of an organization to unexpected events. In contrast to planned change, it is a piece-meal response to circumstances as they develop. External forces that the Continue reading
Modern Management Concepts
Responsibility Centers
Responsibility accounting focuses attention on responsibility centers. A responsibility center is a sub-unit of an organization under the supervision of a manager who has the responsibility for the activities of that responsibility center. Each sub-unit has certain activities to perform and its manager is assigned the responsibility and / or authority to carry out those activities. Responsibility center is the segment of business with reference to which information will be communicated to pin point responsibilities. In the words of Anthony and Races, “A responsibility center is like an engine in that it has inputs, which are physical quantities of material, hours of various types of labor, and a variety of services; it works with these resources usually; working capital and fixed assets are also required. As a result of this work, it produces output, which are classified either as goods, it they are tangible or as services, if they are Continue reading
What is Value-Based Management?
Today’s work life has become so demanding, fast paced, stressful, ambiguous and chaotic due to our lifestyle that we are forced to seek Value-based answers and ways of achieving personal stability within. We have come to realize that our inner wisdom is the only source that will sustain our adaptation and stability in the long run. More specifically, it has to do with how we define ourselves, view the world, relate to others, and make ethical/ moral decisions. Introduction of spirituality in an organization culture will help employees desire, to integrate personal life values with professional life. What is Value-Based Management? Value management is distinct from other management approaches in way that it is simultaneously includes attributes which are not normally found together. It brings together within a single management system. Alignment of business vision, goals, strategies, policies and practice has always been the key to the effectiveness and success Continue reading
Benchmarking Analysis
In a complex, dynamic, fast-changing environment, companies must strive for superiority in order to survive. Competitive edge cannot be achieved or maintained by setting goals based on past or even present performance. Benchmarking is a management practice that can be used to pursue excellence. It does this by identifying, comparing and emulating best practice wherever it occurs. Read More: Benchmarking as a Strategic Business Tool Benchmarking is defined as a continuous systematic process of evaluating companies recognized as industry leaders, to determine business and work processes that represent best practices and establish rational performance goals. It is a search for industry best practices that lead to superior performance. It illustrates how good a company currently is in comparison to its competitors, that is benchmarking analysis demonstrates what others are doing as well as what others are achieving. Benchmarking analysis is an integral part of the organizational improvement process and it Continue reading
The Emergence of Frugal Innovation
The old innovation paradigm was called closed innovation which was based on the strict control of successful innovation. Under this view, organizations generate their own ideas, develop them, finance them and support them on their own. In short, companies maintain complete control of all aspects of the innovation process and inventions are kept highly secretive. Traditionally many organizations followed this model and it worked well for most of the twentieth century. However, over the years a number of factors have led to the erosion of the closed innovation approach. First, due to an increase in the mobility and availability of highly educated people, large amounts of knowledge leave the research laboratories of many companies. Second, the availability of venture capital has increased significantly in the recent past making it possible for promising ideas and technologies to be further developed outside the organization. Third, other firms in the supply chain began Continue reading
Differences Between Social Entrepreneurship and Business Entrepreneurship
Before understanding the term social entrepreneurship, we need to firstly understand what traditional business entrepreneur itself is. An entrepreneur is an individual who owns a firm, business, or venture, and is responsible for its development. In order to do so, he or she will manage the resources he had. The aim of a traditional business entrepreneur or commercial entrepreneur is to generate profits from the risks and opportunities he or she is willing to take. A business enterprise therefore would be an entity that is owned by the business entrepreneur to achieve business goals that have been set by the entrepreneur. Social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. The definition of social entrepreneurship varies from a narrow definition to a wide one. Under the narrow definition, social entrepreneurship is basically the action of Continue reading