Concept of Virtual Network Structure (VNS)

In today increasingly stiff competitive environment, organisational structure is becoming a very important role to a company in the market competition. The organisational structure is explained as the formal decision-making framework that will be done by dividing, grouping and coordinating job tasks. However, in order to design organisation structure managers need to address six key elements, those are work specialization, departmentalization, chain of command, span of control, decentralization and formalization. Secondly, for the face on the sharply environment change, HR managers should divide the tasks and then coordinate those, in essence balancing job-related specialization with group, inter group, and organisation-based integration as necessary. They also said that organisational structure defines the firm’s decision-making authority and serves as the connecting fibers between the company’s strategy, the actions and behaviors of members. For example, organization must design structure that facilitates close to coordination between the activities of manufacturing and those of research, and development it to ensure innovative products can be produced both reliably and cost effectively. To achieve gains from synergy between division, company must design mechanism that allow divisions to communicate and share their skills and knowledge. In pursuing a global strategy, company must create the right type of organisational structure for managing the flow of the resources and capabilities between domestic and foreign divisions.

In broad expressions, a Virtual Network Structure (VNS) is a more contemporary organization design. This structure means that the business subcontracts most of its key functions to some other different businesses, and coordinate their activities from its headquarter to gain competency in the competitive market.… Read the rest

Knowledge-Sharing Dilemmas in Organizations

Information being exchanged amongst the workers of an organisation is a system that has been an essential constituent of the procedure of knowledge management. With the introduction of the contemporary information and communications technology within corporations, it has become very convenient and has also become a valuable support function to make such exchanges possible by reducing the obstructions of time and distance. On the other hand, those corporations that have invested in technologies of this kind are frequently faced with the complications of inducing the workers to utilize the purpose of those technologies in order to communicate their knowledge and perceptions. The knowledge share/hoard predicament is a socio-psychological behavior aspect that describes that employees feel the need to not share information or organisational knowledge that they posses because it may eventually harm their own status within the organisation or by sharing knowledge may therefore provide a competitive advantage to their colleagues, over them. Since organisational knowledge is a collective resource employees may make use of it without actually contributing towards developing or increasing it. However, sharing or hoarding knowledge does have their own results which may be in a positive or a negative manner. Individuals usually hoard knowledge when they feel that sharing that knowledge would eventually result in a decrease of their power or status within the corporation because of the very fact that they have shared their distinctive wisdom with the rest of the workforce.

While assessing the various forms of beneficial public problems, there have been certain suggestions of particular interventions that may be implemented by corporations in order to facilitate the organization to promote the required social dynamics which would eventually boost the all-encompassing concept of sharing knowledge and information within the corporation and its employees.… Read the rest

Triple Bottom Line (TBL or 3BL)

The concept of Triple Bottom Line (TBL or 3BL) is a popular concept that has been applied in the understanding of social duties among companies that are looking forward for the incorporation of non monetary values in their businesses. Its notion has become of much fashion in management, investing and management over the last few years. It has been explained that the ultimate success of corporations ought to be measured not just by the use of traditional financial bottom line, but need also to be measured by on the ethical and environmental factors. In fact most individuals have accepted that, organizations have a lot of responsibilities to their stakeholders to have responsible behaviors. In addition, it is also true that, it is not possible for firms in the long run to be successful if they disregard key stakeholders interests. Its apparent novelty lines in the contention of its supporters that the overall attainment of duties to the society, clients, employees as well as suppliers should be either calculated or audited and even report presented just like financial performance of public firms have been for over a century now.

As a matter of fact, Triple Bottom line can not be taken as if it is an award, certification or even an accreditation that can be earned, but it is a continuous process that just helps companies to keep on ensuring that they are working towards greener business, as well as the demonstrating to the local community that, they are not just working towards enriching themselves, but also to the common good.… Read the rest

Paradoxical Thinking

For decades, the management theorists have focused their attention on three types of thinking i.e. magical thinking, modern thinking and postmodern thinking. The latest inclusion is the paradoxical thinking. The main reason that paradoxical thinking has gained importance in the business world is that there were some buzz phrases that were being used by the employees of the organisations such as controlled chaos, getting outside the box, breaking the frame of reference, creative destruction, fuzzy logic and etc. All of these terminologies show that a business can develop something impossible by going beyond the imaginative framework and these old models have less importance in the contemporary world. The primary crux of the paradoxical thinking is that the openness can be anything but it is indecisive, lacks principled convictions and is sometimes passionless as well. Paradoxical thinking implies that problems should be looked from different angles rather than one perspective so that it can be resolved effectively.

The term ‘paradox’ is described as a range or group of statements that are contradictory and challenge the conventional thinking parameters. Likewise, the paradoxical thinking is stated as the way of looking at a situation or a problem form a various range of perspectives and carrying out in-depth analysis to understand the problem completely. One of the best examples of the application of paradoxical thinking is evident in the work performed by Farday in about 1830s. Farday observed that when the electricity current is passed through a wire it can cause a magnetized needle to move that is located adjacent to the wire to move in a direction which is rotational; it formed the basis of electric motor invention.… Read the rest

10 Common Characteristics of Successful Entrepreneurs

Entrepreneurship is itself a process through which the entrepreneur allocate the resources available to the business in a way or in other words in a systematic manner that the entrepreneur can meet the requisites of the business and achieve the objectives of the business as well as of his own. Now a days businesses are being done on large scale or more businesses are being run in one organization therefore, the executive management or the entrepreneurs has to adopt the ways and system through which they can not even secure their time but to save their resources from drain.

Entrepreneurship is the process of innovation that reallocates resources to new opportunities, often creating new opportunities through unusual combination of resources and skills of risk taking. The entrepreneurs some time has to face the problems because they prepare their plans personally and create innovations and believe that they are doing the best and when the problem in the market has to be faced by them, then they suffer losses and face the rejection of their self developed ideas, innovations, inventions or creations on the basis of incomplete information and evaluation of the factors because they personally believe in strategies and plans. The success is behind the criticism because when the entrepreneur of such kind prepare plans for business before going to other persons, he himself cities his ideas, innovations, creations and plans which he develop and get the answer to check his satisfaction. The entrepreneurs of successful type take and evaluate constructive and realistic criticism of their business on the basis of past and previous plan/strategies being adopted by them and others and before adoptions to any of them constructively consider the positive and negative possibility of such adoptions.… Read the rest

Adoption of Blue Ocean Strategies in Business

Strategy involves standing out from the competition and making choices that give the company a unique and valuable position by offering distinctive products and services. Competitive advantage and profitability can be achieved simultaneously by approaches that create consistent internal synergies and combine a company’s operational activities efficiently. Strategies are formed at various levels of the organization. However, a typical organizational structure incorporates strategies at 3 specific levels: corporate, business and functional. Corporate strategy defines a company’s holistic growth and management direction pertaining to its various businesses, products and services. Business strategies, on the other hand, are established at the divisional levels and typically focus on enhancing the strategic business unit’s competitive position in its industry. Functional strategies aim to maximize resource productivity and are typically set by functional departments within each SBU to improve competencies and performance.

Blue Ocean strategies are a form of business level strategies that enable firms to achieve sustainable competitive advantage by tapping uncontested market space. Developed by INSEAD professors, W. Chan Kim and Renee Mauborgne, Blue Ocean strategies were derived from analyzing winners and losers of more than 150 strategic moves across 30 industries, including hotel, cinema, automobile, retail, airlines etc., over the course of several years. Read More About: Blue Ocean Strategy

Conventional competitive or red ocean strategies encourage firms to choose between value and differentiation to compete in prevailing markets with clearly defined boundaries and conditions. In red oceans, firms aim to gain market share by exploiting existing demand and overtaking competitors. Ruthless competition in red oceans confines companies to benchmark against competitors, and make incremental improvements that increase costs without increasing revenues or having much impact on demand.… Read the rest