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

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

Diversity Management

The world’s increasing globalization trend demands more interaction between people from a vast diverse of cultures, beliefs, and backgrounds than the past. Today, people no longer live and work in an insulated marketplace. The reality is they are now part of a worldwide (or commonly mentioned as flatten) economy with competition coming from nearly every angle of the globe. For this reason, businesses need to be open to change and accept the concept of diversity to become more creative.

In daily conversation, the word of “diversity” has the meaning of differences or variety. However, in the business world and in the business textbook, diversity often refers to the many differences present among people today in workplace as well as marketplace that were not aware of by most people in the past. Diversity management is often referred as acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status for better workplace performance. The term diversity management indicates the implementation of strategies or policies to knit a network of varied individuals together into a dynamic work force.

Advantages and Disadvantages of Diversity Management

In recent years, diversity is increasingly perceived as an important issue in the context of business management. This is due to the increasing differences in the population, globalization process, increasing of international business and cross borders business dealing activities. In the business community, companies have also tend to pay more focus on diversity and look for ways to reap the opportunities offered by diversity as they acknowledge that diversity has the potential of yielding greater productivity and competitive advantages.… Read the rest

Innovation Culture in Organizations

Growth creates a need for structure and discipline, organization changes which can strain the culture of creativity that is so vital to future success. To sustain competitive advantage, companies need to institutionalize the innovation process; they need to create an internal environment where creative thinking is central to their values, assumptions and actions.

Innovation is the engine of growth. It is also a mindset – meaning it is influenced by beliefs, values, and behavior. Company culture therefore has a huge influence on innovation, being able to either facilitate it or restrain it. Realizing this, many companies have attempted to put systems and processes into place that encourage an innovation culture. However, while such measures are often viewed as the panacea, they are really just the beginning. To shape a truly innovation culture, the top people in a company need to develop a mindful approach where their every action and word reflects a real desire to encourage and develop new ideas.

Effect of Innovation Culture in Organizations

One of the most vital capabilities of an organization is innovation and that in organization culture is really critical. The effect of innovation can effect in both positive and dark ways for an organization or say a company with higher number of consumer with different needs and demand. The challenges for innovation culture are both predictable and unpredictable. Predictable challenges can be overcome by forecasting abilities but unpredictable challenges can result in disastrous turnings. For example if an company makes changes in its management hierarchy say it replaces its supervisor that can result in either widening communication gap or erasing that further can result in better production or a worker strike.… Read the rest

Green and Sustainable Supply Chain Management

Environmental changes across the world have generated a movement to identify the causes of global warming and develop solutions to end it before it is too late. In an effort to achive this, many countries are creating laws and regulations with the specific aim to reduce carbon emissions and greenhouse gas effect.

The truth is that environmental change is upon us. Not only do we have climate problems but we are also dealing with a resource depletion issue. With economies like India and China growing at near double digit rates, the population of the world continues to grow creating shortages of many resources that we use to take for granted.

Many consumers, stakeholders and businesses are becoming more involved in the growing green movement. Influenced by customer loyalty shifting towards environmentally friendly products, businesses are trying more and more to make their supply chains greener by introducing sustainability strategies throughout their organizations and supplier relationships. The recent focus on sustainability has resulted in a growing need for integrating environmentally safe choices into supply chain management practices. The concept Green and Sustainable Supply Chain Management can be defined as the process of using environmentally friendly inputs and transforming them through change agents into outputs that can be reclaimed and re-used at the end of their life-cycle therefore, creating a sustainable supply chain. The whole idea of a sustainable supply chain is to reduce costs while helping the environment.

Sustainability and Profitability

A Green and Sustainable Supply Chain integrates ecological factors and supply chain management principles to identify the environmental impact of an organization’s supply chain processes.… Read the rest