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. Both efficiency and effectiveness are an integral part of a successful management.

Management is almost entirely concerned with getting things done and determining how to get things accomplished. In each manager’s mind there is a debate over whether more concern should go into low-cost production or to disregard production costs and go after complete satisfaction of goals and objectives. These two paths are known as the decisions which separate  “Efficiency” and “Effectiveness”.  Efficiency means that the job was accomplished cheaply and on time yet may not be a very thorough and impressive accomplishment. Whereas, effectiveness means that the job was done correctly and was accomplished but with no regard to whether the job was done inexpensively or on time.… Read the rest

About United Nations Global Compact (UNGC) – 10 Principles of UNGC

The United Nations Global Compact (UNGC) is a tactical strategy scheme for companies who commit to align their operational strategies to the principles outlined by the UNGC whose main purpose for existence is to assist businesses in managing risks and opportunities presented to them in certain areas such as the environment, society and authorities like government divisions and laws. This initiative also aims to integrate their ten principles as universal to businesses and societies for mutual benefits. It is independent of the government which entails that their rules and regulations is not government mandated law though it does support and is in-line with certain government policies that mainly focuses on the social responsibilities of a corporation.

Commerce, as the main factor influencing globalization, plays a major role in societies and economies anywhere in the world. UNGC requires participating businesses to submit a Communication in Progress (COP) report once a year, which is deemed by the initiative as essential to demonstrate the commitment of their participants to them and to their principles. The COP includes policies which entails being transparent and accountable. By participating to UNGC, companies are then required to follow the same policies of transparency and accountability which is very important in ensuring the success of the initiative. By failing to communicate with UNGC, companies might lose their current status as participants, or worse, the initiative can expel them.

The United Nations Global Compact (UNGC) is the planet’s greatest corporate citizenship conglomeration. The corporate world can be viewed as the guiding hand of globalization and in this manner; it can accommodate the gigantic challenges which influence the incorporation of common wars, ruination and short states.… 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

Four Types of Businesses for Entrepreneurs to Start With

Entrepreneurship is the process of bringing together factors of production, and organizing profit oriented activities, or the process of distributing economic goods and services for profit. An entrepreneur is a risk taker who possesses skills, such as knowledge and self-confidence. This individual bears the risk of starting a business venture, in the face of uncertainty about future conditions. Most successful entrepreneurs are self-motivated. Entrepreneurs start their own businesses because they do not like to work for others, but prefer to be their own boss and be responsible for the decisions they make. Entrepreneurs have the ability to spot a business opportunity and utilize it, with the hope of succeeding, rather than failing.

Entrepreneurship is a creative activity, as it tries new methods, rather than following routine methods. Entrepreneurship is closely related to innovation, as the success of entrepreneurship, largely, depends on the ability to respond to innovation. It has its objective of economic success, based on the utilization of new means of production. Entrepreneurship is a result-oriented activity, since it emphasizes high levels of achievement and performance. The qualities of an entrepreneur are acquired; thus, an entrepreneur need not be born as one, but can become one through progressive learning.

When selecting the type and size of a business venture, an entrepreneur should consider and conduct analyses on the factors below.

  • Raising capital – most entrepreneurial activities, normally, depend on the availability of capital.
  • Market research – it is the systematic collection of data regarding the consumer levels of demand for the product and cost.
Read the rest

Industrial Espionage

The Federal Bureau of Investigation (FBI) defines industrial espionage as “an individual or private business entity sponsorship or coordination of intelligence activity conducted for the purpose of enhancing their advantage in the marketplace.” While this definition may imply Industrial Espionage to be more or less the same as business or competitive intelligence, but there is an essential difference between the two – while business intelligence is generally under private sponsorship using an “open” methodology, espionage may be either government or privately sponsored and clandestine.

Industrial Espionage is the process of collecting information and data for the purpose of generating revenue. Generating revenue is very important aspect for these people. They are not thrill seeker, if the compensation does not justify the reward they will not bother attempting to collect the required information. Individuals who commit Industrial Espionage are not looking for information for information sake, but for information that will produce a big payday when acquired by a second party or when the information is viewed by unauthorized personnel the value of the information is no longer valuable. Money and power are motivators and the stakes in today’s billion dollar business environment the rewards far exceeds risks.

In the highly competitive and globalized business environment, proprietary intellectual property and economic information is considered the most valuable commodity by all nations, particularly the advanced ones. Businesses and/or governments involve in espionage activities for the purpose of unlawfully or clandestinely obtaining sensitive financial, trade or economic policy information, proprietary/sensitive economic information; or critical technologies including but not limited to data, plans, tools, mechanisms, compounds, designs, formulae, processes, procedures, programs, codes or commercial strategies, whether tangible or intangible, for competitive business advantage.… Read the rest

The Concept of Hybrid Managers

A hybrid manager can defined as a person who possesses strong technical skills and adequate business knowledge or vice versa. He should have the required skills needed in the technical as well as the management aspect. Along with that, he should also possess the management competences like communication skills, negotiation skills and also he should be able to motivate others working under him. A Hybrid manager should be able to reduce the gap between the business and technical aspects of the organization and build it with his expertise. Any organisation which has business and technical department working in tandom with each other has an advantage over other organisations whose technical and business department is not integrated. And this role of integration of the business and technical department is performed by the Hybrid managers.

Characteristics of a successful Hybrid Manager

  • Self-motivated/like being challenged – A successful hybrid manager is self-motivated person. He does not need any external factors to motivate him/her. His motivation lies within. Whenever any kind of problem or complication arises, they have the ability to make decisions. A successful hybrid manager is the one can take care of issues his own. They set high goals and always look to reach at the top. They have the confidence to step out of their comfort zone and try new ideas and strategies.They will never give up. If stuck somewhere, they will try for various options to get out of it.
  • Intelligent in the broad sense – A successful hybrid manager has very good technical skills.
Read the rest