Organizational Culture is an outcome of cultural processes at work in a particular setting and focuses on people and the shared meaning within them. An organization with a strong culture may find it difficult to adapt with changes. If they want to bring a culture of creativity then the organization may find it hard to cope with it. A strong culture will have people with commonalities and may lack diversity which is essential in generating new and different ideas. However, subcultures can exist in such organization with strong culture which may bring creativity as a result of diversity. Such divisions are responsible for giving a different option or a direction to the organization which can result to new frontiers. Diversity is an integral element of an organization’s culture. A manager has to be aware of the differences that exist among various employees working in the organization. People in an organization Continue reading
Modern Management Practices
Blue Ocean Strategy: Discovering the Untapped Market
Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. Since, dividing up existing demand and benchmarking the competitors, Blue Ocean strategy is regarding grow demand and break away from the competition. The business universe can be thought as a composition of two kinds of oceans the first is the red ocean and second one is the blue ocean. Red ocean includes all the industries which exist today and it is about the known market space. But on the other side Blue Ocean can be considered as industries which are not in existing today and it is called unknown market space. The industries boundaries are defined and well accepted in the red oceans. In the red oceans the rules of competitive games are well defined. The companies try to take away the greater share Continue reading
Open Innovation – A New Innovation Paradigm
An innovation is a product or service with a bundle of features that is new in the market, or that is commercialized in some new way that opens up new uses and consumer groups for it. Innovation is invention implemented and taken to market. Invention however is the creation of something that was previously unknown. In summary, INNOVATION= INVENTION+COMMERCIALIZATION. Today companies who, want to deliver consistent organic growth to their shareholders, customers, and their employees can do that only through innovation. Concept of Open Innovation According to American organizational theorist Henry Chesbrough, Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively. Open innovation assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology. As mentioned Continue reading
What is Social Accounting?
Any business accountant of an enterprise or any organisation can describe the conditions of that organisation. Social accounting is that kind of movement by which everyone can analyze the same thing as like a business accountant. The main aim of social accounting is to produce data, indices and other information to help everyone about an organisation. Social accounting is also known in various names. These are social and environmental accounting, corporate social reporting, corporate social responsibility reporting, non-financial reporting or sustainability accounting. This is actually a procedure of communicating in which the social and environmental belongings of organisations (NGO, Charities, may be Government agencies etc.) are included. This is a way by which an organisation can express the level to which it meets its societal or ethical goals. Social accounting is distinct from evaluation in that it is an internally generated process whereby the organisation itself shapes the social accounting Continue reading
The Role of Leadership in Organizations
Leadership is a process in which a leader attempts to influence his or her followers to establish and accomplish a goal or goals. In order to accomplish the goal, the leader exercises his or her power to influence people. That power is exercised in earlier stages by motivating followers to get the job done and in later stages by rewarding or punishing those who do or do not perform to the level of expectation. Leadership is a continuous process, with the accomplishment of one goal becoming the beginning of a new goal. The proper reward by the leader is of utmost importance in order to continually motivate followers in the process. There are basically three models on Leadership: Trait, Attitude and Situational. In the trait theory certain inherent characteristics of the individuals were given importance. Other who did not possess such characteristics was considered as ineffective. This theory was questioned Continue reading
Fundamentals of Internal Auditing
What is Internal Auditing? Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal auditing is a catalyst for improving an organization’s governance, risk management and management controls by providing insight and recommendations based on analyses and assessments of data and business processes. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice. The Institute of Internal Auditors has defined internal auditing as follows: “Internal auditing is the independent appraisal activity within an organization for the review of the accounting, financial and other operation as a basis for protective and constructive service to the management. It is a type of control, Continue reading