Diffusion of innovation theory was developed in the early 1950s by Everett Rogers. It seeks to explain the spread of new ideas through individuals and members of a social system. This theory is still widely used now to spread innovations and ideas from the scientific world to the political sphere. According to Rogers, the diffusion of innovation is the process by which an innovation is communicated through certain channels over time among the members of a social system. To understand that definition you must first understand some key terms. Innovation is used more generally here to mean an item, thought, or process that is new. Good examples of innovation would be automobiles, brain surgery, and a new kind of running shoe. It is important to realize that something can be an innovation in one place and have already been accepted in another. The other key term in the definition is Continue reading
Modern Management Concepts
Principles of Effective Leadership
Leadership is often the key to the success or failure of organization in all contexts whether business, religious groups, Military, academic institutions etc. People everywhere are starving for leadership… starving to connect with leaders who are believable, trustworthy, and capable of actualizing constructive changes, who can transform the character of organizations and curtail the exploitation of people and natural resources, inequalities of educational and economic access, and stress from an impossible pursuit of happiness through unlimited desires and acquisitiveness In order to be a successful manager, one has to be an effective leader. The difference between a manager and a leader is that the manager stays at the back and pushes people into the system, while a leader stands in the front and pulls the people along with him. The manager administrates and maintains, while a leader innovates and develops. The manager relies on system and counts on control while Continue reading
Keiretsu – The Japanese Business Network System
The cooperation may be witnessed in highly competitive business environment. Tata and Fiat have arrangements in relations to cars. Such cooperation is not necessarily restricted to the organizations producing or dealing in same product or services. They may identify some common interest for cooperation between them. A cold drink manufacture may enter into arrangement with a chain of restaurants to offer its beverages to the clients of restaurants. Lately, various credit card companies are entering into arrangements with other businesses to launch co-branded credit cards. Such arrangements help in reaching greater number of customers. The benefits of cooperation are also seen in Japan, where large cooperative networks of businesses are known as Kieretsus. Keiretsu, also known as Kigyo Shudan, is an umbrella term that describes various highly complex and interdependent relations. These are formed in order to enhance the abilities of individual number businesses to compete in their respective industries. Continue reading
Introduction of Market-Based Management
Market-Based Management is found on the principles that cause societies to become wealthy instead of mired in poverty. It sees the business as a small society with exceptional features requiring variation of the education drawn from society at large. Through this variation an organisation could build MBM structure and ever-evolving mental models. Market-Based Management is a holistic approach to organization that incorporates theory and practice and organizes businesses to deal effectively with the challenges of change and growth. It also draws on the training learned from the failures and successes of individuals to attain prosperity, peace and organisational progress. Thus, it involves the study of the history of economies, politics, societies, cultures, governments, businesses, conflicts, science, non-profits and technology. Market-Based Management is the exceptional management tactic developed and executed by Koch Industries, Inc. It is a company philosophy that is embedded in the science of human action and functional through Continue reading
Hofstede’s Cultural Dimensions
Dr. Greet Hofsted had conducted a comprehensive study and explained how culture influences the values at the work place. He worked as a psychologist in IBM from 1967 to 1973. In the time of working in IBM he has collected the analyzed data from aver 100000 individual from more than forty different countries. To the above study he made some additions and he developed four dimensions and later on he added fifth dimension that is long term outlook. Geert Hofstede’s dimensions investigation can support the trade individual in enhance understanding the intercultural variance within regions. “Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster.” – Dr. Geert Hofstede The different dimensions of the Geert hofstede are explained below they are Power distance index (PDI) Individualism (IDV) Masculinity (MAS) Uncertainty avoidance index (UAI) Long term orientation (LTO) Power Continue reading
Social Entrepreneurship – Meaning, Challenges and Success Factors
The rapid growth of the marketing is constantly changing our lives. As a result, entrepreneurs are played the importance role in a market as they are seen as agents of change. Which the change is economically based, the implications are far reaching, affecting other aspects of society such as social, cultural and political. That is why the entrepreneur is willing to take the responsibility and taking business risk to create and expand their business to order to explore more opportunities. Which the goods and services are fulfills customer’s demand and preferences. Entrepreneurs seen to be the starters and them also assume the role of manager. Which entrepreneurs are observing the fourth factor of production (entrepreneur, land, labor and capital) and improve for the economic development. They were actively form to lead their own business and cultivate and offering new ideas for the economic growth and prosperity in individually. Moreover, entrepreneurs Continue reading