There are two fundamental approaches to knowledge management practice, tacit and explicit approaches. The approach of tacit knowledge accents understanding the individuals king of knowledge in an organisation make the people to transfer knowledge within the organisation, the people managing the key as knowledge carriers and creators. The approach of explicit knowledge explains marches for express knowledge applied by one person, the pattern of organisation approaches for invention of new knowledge, and including information systems (development of systems) to distribute and express knowledge within the organisation. The comparative merits and demerits of both tacit and explicit approaches to knowledge Management are explained here. Tacit Knowledge Approach The tacit knowledge approaches have some outstanding features is staple impression that knowledge is about personal knowledge in creation and unmanageable to deduce from the heads of single person. In all organisations tacit knowledge consists in an large amount ruins on the head of Continue reading
Modern Business Concepts
The Difference Between Efficiency and Effectiveness
Efficiency and Effectiveness as stated by Peter Drucker “Efficiency is doing things right; Effectiveness is doing the right thing.” An organization survives based on the efficiency and effectiveness of a manager/management. Efficiency is the use of financial, human, physical and information resources such that output is maximized for any given set of resource inputs, or input is minimized for any given quantity and quality of output. An efficient manager might be doing the right job but not the job right. Doing the right job does not require much time or resource. A job can be done very quickly and efficiently within time. In this case, the manager’s main aim is to get the job done within the allocated time using the given resources. But doing a job effectively involves time and planning the right strategy. In this case the manager concentrates more on the outcome rather than just the input. Continue reading
Blue Ocean Strategy – Shift from Red Oceans to Blue Oceans
“Blue Ocean Strategy” by W. Chan Kim and Renee Mauborgne is a strategy that challenges companies to distance itself away from fierce competition by establishing uncontested market space that makes existing competition irrelevant. One of the reasons why the authors have used the colors red and blue is to describe the market. Red ocean is the market space where industry boundaries are defined and known. The red ocean contains a massive conflict between companies where they are constantly trying to outperform each other to achieve a greater share or demand. When market spaces become crowded with competitors, companies try out perform each other and profits and growth is greatly reduced due to cutthroat style competition which turns the red ocean bloody. In contrast, blue oceans is the unknown market space where it is unaffected by competition and demand is created rather than fought for. In blue oceans, competition is not Continue reading
Challenges Faced by the Indian Outsourcing Industry
Though Indian outsourcing industry boast of a large pool of talent, low labor costs, excellent telecommunication infrastructure, a relatively mature domestic IT industry, an active industry association, quality certifications unmatched in the world and more, but it faces massive challenges which need to be overcome. The major challenges being faced by the outsourcing industry in India can be classified into internal and external challenges. The internal challenges include shortage of competent managers for the middle and senior management and the high attrition rates. The external challenge is in the form of opposition from the US politicians and the UK labor unions against shifting of the operations by local companies to India. The threat of real competition from other players like Philippines also exists, but doesn’t seem to need our immediate attention. There is an importance and value attached to the ‘people’ aspect in this service industry. The fact that this Continue reading
Programme Budgeting
Programme Budgeting is mainly useful to government departments and non-profit organizations. In Programme Budgeting special emphasis is laid on formulation of different budgets for different programmes. It utilizes a planning and budgeting process in an output-oriented programme format; which is oriented to its objectives to facilitate developing and evaluating alternatives. It leads to the allocation of resources over a planning period. Programme Budgeting integrates all of the organizations planning activities and budgeting into total system. Programme Budgeting Process First, programmes are identified for achieving different goals of the organizations. Then, each programme is divided into different elements. Resources such as materials, men, machines, utilities, etc., are allocated to various programmes over the period. The emphasis is continuously placed on analysis of alternatives (including existing programmes) and estimating cost of accomplishing objectives and fulfilling purposes and needs. The steps involved in the programme budgeting may be listed as follows: Identification of Continue reading
Reward Strategies in Modern Organizations
Since 1990’s the dynamic link between performance and reward has been a topic of debate. The need of flexibility and cost effectiveness has lead to organizational restructuring of various kinds; including flatter structures with their focus on teamwork, broader roles and non-traditional work arrangements. Implementing a flatter structure is meaningless unless there is a degree of consistency between what is expected of employees in terms of working practices and systems, processes and the resources needed to do the job. All human resource systems especially pay; need to reinforce the forms of skilled performance required of individuals. However most of the companies believe in following the preferred model of paying market rates alongside schemes that recognize individual short-term performance but not long term development. This is among the most challenging responsibility of human resource specialist, as there are many factors to be taken into account before revising a compensation system to Continue reading