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247 posts from November 2008

November 27, 2008

Providing Social equality has been one of the most growing conserns of various public and government policy all over the world

How Public Policy impacts Social Equality particularly that of the Healthcare Policy

 

Introduction

            Providing Social equality has been one of the most growing concerns of various public and government policy all over the world.  Social scientists typically analyze equality as balance in the distribution of power, economic resources and opportunities within the society. Social equality and inequality is a topic of long standing concern in the social science (Perlo, 1981).  Social equality can have many sources within the community. A major source of equality is social class. Economic and social equality can arise from other socially defined characteristics that result in different group within the community having different access to the goods and services of the community.

Large societies such as the United States will contain within its boundaries many peoples of different qualities and characteristics. These qualities and characteristics will define the status of individuals within the nation. Related to these characteristics are those of skin color, race or national origin. Each of these can lead to differential treatment in a variety of situations and to degrees of inequality within any given community. America is a country that places great values to the healthcare as an important characteristic in sustaining the needs o the people maintained and uphold by the Constitution.  The significance of providing equal opportunity for healthcare provisions has long been hailed through the innovations in science and technology pioneered in the United States in the goal to provide the best kind of healthcare experience to the members of the population. The support of the government and private sectors and organizations in promoting and upholding the right to proper and efficient healthcare of the people has long been the driving and mechanical force in providing healthcare policies that adheres to the needs and demands of the American.

The United States in particular has been known to uphold freedom and equality in experiencing the good life.  The individualist cultural orientation of the country made the people of America to place importance in the concept of independence in the effort and time dedicated in advocating the relevance of individual choice and freedom.   And the application of such concepts in the everyday life importantly covers the aspect of education. However, there are some issues and concerns that are emerging regarding the healthcare policies provided by US, specifically it various states. Based on this metrics set by WHO, many countries are developing initiatives to measure performance and improve its health system. Generally measurement and improvement are linked as indicated by phrases such as ‘evidence-based medicine’ and ‘evidence-based policy’ (WHO, 2000). Initiatives are also being developed due to some issues raised on the policy agenda in most countries. These issues include: raising clinical effectiveness which is ensuring that clinical decisions are based on the best current practice; improving safety or reducing medical errors which involves developing health care organizations that are capable of detecting medical errors or adverse events to patients, and which are then able to effectively act on them to avoid future occurrences; raising responsiveness of the system or providing timely services centered on patients with respect to individuals’ culture, needs and values; improving efficiency/containing costs which involves provision of the right incentives to providers, those who support funds, and consumers to get better value for money; and ensuring equity of quality of health care provided to all regardless of gender, race, and socioeconomic status, reducing health inequity.

Other related issues on the health care policy of most countries are: unsafe health systems; unequal access to health care services; dissatisfaction on the part of users and the public; unacceptable levels of variations in performance, practice and outcome; overuse or under-use of technologies for health care; inefficient delivery; unaffordable waste from poor quality and unaffordable or additional costs to society (Shaw, 2002).

The health system of different countries varies significantly due to many reasons. One primary reason is the wealth of a certain nation and the budget it can allocate for its health system. Another reason is how the government gives importance to the health care system. Healthcare system is also dependent on how a country allocates resources for its health care advantages. Distribution and allocation determines if individuals have the opportunity to access or use of health care services that provide for those needs. Distribution will be dependent on the policy used by decision-makers and on the methods of distribution. Healthcare authorities prioritized resources and its distribution, and further study what resources are best needed by the people in their country.       

Accordingly, the social equality contexts has been affected or influenced by various policies provisioned in one country. In this regard, the main goal of this paper is to determine how public policy, specifically healthcare policy positively and negatively affects social equality. In this regard, the main focus is on the issue of social equality and social inequality. In addition, the discussion will also include the past and present condition of public equality, particularly in Texas, and United States and International level in general.

 

Significance of the Study

            This study presents a brief background in the investigation on how public policy, especially healthcare policy affects social equality positively and negatively.    This study will be significant in policy makers of United States and other nations, particularly for the healthcare agencies and department in a sense that it will broaden their knowledge about the current condition of the social equality and inequality in the nation or states and will help them determine the influences of healthcare policies with the social equality. Furthermore, it will contribute to social research. This can be used as a future reference for future research that will focus on having effective and efficient healthcare policies that would equally provide the needs of diverse people in the nation. Moreover, this study provides significant role to the society since it depicts the future of a certain nation with regards to present condition and position of their healthcare policies.  Furthermore, the research study will also discuss the complexities of solving the issue of social equality and inequality to provide better healthcare policies for the people.

 

Methodology of the Study

            The study shall be using the descriptive research method. It uses observation. In this method, it is possible that the study would be cheap and quick. It could also suggest unanticipated hypotheses. Nonetheless, it would be very hard to rule out alternative explanations and especially infer causations. This descriptive type of research will utilize observations in the study.  To illustrate the descriptive type of research, Creswell (1994) will guide the researcher when he stated: Descriptive method of research is to gather information about the present existing condition.  The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena. The researcher opted to use this kind of research considering the desire of the researcher to obtain first hand data from the respondents so as to formulate rational and sound conclusions and recommendations for the study.

            The research described in this document is based on qualitative research methods. This permits a flexible and iterative approach. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.

            The primary source of data will come from published articles from social science journals, theses, and related studies on international and national healthcare policies. For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from management and industrial journals; and make a content analysis of the collected documentary and verbal material about social equality, social inequality, and health care policy. 

 

Scope

(Local, National, International, International, Ect…) Talk about the scope of this issue at the at the local level and give examples, what is being done about it, talk about the scope of this issue at the National level and give examples and what is being done about it, talk about the scope of this issue at the International level and what is being done about it, ect…..)

 

Complexity: Why have been able to solve the problem and why have not been able to solve problems- Political, Cultural, Emotional, Intellectual, Administrative, Legal, Financial, Resource Management, Etc.) Any other areas you can see that need to be added

 

Past.- Use Historical content of topic and problem statement – Show where Healthcare started back with FDR and social security. Show where social equality and inequality started.

 

Present – Current state of public equality – how Public Policy effects its status use Health care policy especially Social Security and present status here as example along with other policy’s you see that fit.

Older People make up a significant portion of population in UK

Introduction (300 words)

            Older people make up a significant portion of population in the UK. As these people grow older, they increasingly experience age-related changes, diseases and disorders. Such conditions have profound impact on older people’s ability to balance. They become more prone and at risk of falling. The rate of falling in UK had an immense growth over the years. There is a drive to review and evaluate status of fall among the elderly and prevailing falls prevention practices. My area of practice had been with the __________. My role is to _________________.

            This paper will focus on the situation regarding falls and falls prevention in United Kingdom in light of my practice. The main objective of this paper is to minimize the risks for older people by means of critical analysis of falls prevention programs as far as existing literature allows. In connection, the paper will seek to accomplish the following specific objective:

  1. To describe the nature of falls;
  2. To

Opening Paragraph (100-200 words)

            A comprehensive review of the contributing literatures was done. Articles from _________ publication were scrutinized as well. This was undertaken to ensure the inclusion of several relevant published and unpublished material and information. Various electronic databases were also visited including ______. Internet searches

Representing your subject (100-200 words)

            Falls are common events in the lives of older people. Falls can result in different unfavorable outcomes such as minor bruises, fractures, disability, dependence and even death. The Kellogg International Working Group defined falls as the unintentional event that result in a person coming to a rest on the ground or another lower level. According to National Service Framework (NSF) for Older People standard six is devoted to the prevention and management of falls. Standard Six sates that:

 

The NHS, working in partnership with councils, takes action to prevent falls and reduce resultant fractures or other injuries in their populations of older people. Older people who have fallen receive effective treatment and rehabilitation, and, with their careers, receive

advice on prevention through a specialized falls service.

 

NSF has a well-developed localized service plan for falls prevention that puts emphasis on multidisciplinary working, reflecting the multi-factorial and complex nature of falls (The Chartered Society of Physiotherapy, 2001, p. 4). A report submitted by Health Evidence Network (HEN) discerns that a fall may be a first indication of an undetected illness. The report also claims that the prevention of falls is of major priority as they stimulate mortality, morbidity and suffering especially for older people and their families. It is then necessary to reduce older people’s risk of falling and the consequent injuries of such fall occurrences.

 

            The complex interaction between intrinsic and extrinsic risk factors led to occurrence of falls. The dynamics of falling have been postulated to occur in three stages (refer to Figure 1). These are the postural perturbation, the inability to right the perturbation and regain stability and the contact with the environment. Such perturbation was brought about by different risk factors. There are over 400 risk factors for falling that have been reported (The Chartered Society of Physiotherapy, 2001, p. 6). The intrinsic risks factors that are identified by HEN include history of falls, age, gender, ethnicity, medicines, medical conditions, impaired mobility and gait, sedentary behaviour, psychological status, nutritional deficiencies, impaired cognition, visual impairments and foot problems. The extrinsic risk factors are the environmental hazards like poor lighting, slippery floors and uneven surfaces among several others; footwear and clothing and inappropriate walking aids or assistive devices. HEM maintained the third risk factor which is exposure to the elements of risk.  

 

Some of these factors are surrounded by uncertainties. One explanation is that risk of falls and injurious falls varies with functional status. For example, frail older people are at high risk of falling and injuring themselves. On the contrary, healthy old people whom are engaged in diverse, challenging physical activities also have disproportionately high risk of falling (as cited in (The Chartered Society of Physiotherapy, 2001, p. 6). This was described by the U-shaped association where the most active and inactive people are placed at the highest risk of falls. This factor reveals the complexity of the connection of risk, falls and activity. In addition, understanding how these risk factors interact with each other to cause falls is tricky since the reasons for falling vary considerably from one person to another. Another example that shows this is evident in postural perturbation. The stress of the situation is manifested by the sufficient magnitude in taking a person out of their base of support and the need for an individual to maintain postural control and the speed of perturbation (p. 9). In both of these examples, the impact generated by the fall necessitates a comprehensive fall prevention interventions.

 

Suggestions for falls preventions first appeared in remedial literatures in 1980s. Since then there had been numerous effort to gather evidences to support falls prevention initiatives in medical, rehabilitation and public health. The evidences purport a possible prevention of fall in some populations but for injurious falls, it is yet to be proven. The general effectiveness of fall prevention strategies is connected to the functional status of older people. The first identified group is the healthy older people, though researches showed that reducing falls in healthy older people are ineffective (Gillespie, et al, 2001). The NSF identified frail older people as the high risk groups. Such groups include the significantly disabled and patients with acute and neurological illness. The available fall prevention programs for these identified risk groups include multi-factorial fall prevention programmers; exercise only; _______________ (The Chartered Society of Physiotherapy, p. 11).    

 

The multi-factorial fall prevention programmed (MAP) is based on a risk modification model. The approach is multidisciplinary for the reason that the older community is evaluated for potentially modifiable risk factors for falling. Subsequently, treatments will and are targeted to each of the risks factors. Other interventions are distinguished as medication review, podiatry, advice and behavioral and environmental modifications. The disadvantage of this approach is express on high false positive results as suggested by the risk assessments. Another concern is the clarification of which of the elements of the treatment truly works. The evidence of the causality the risk factors and the falls is feeble. Some medical practitioners even noted that there is an existence of redundant components in the programmed (p. 11).

 

The exercise only approach works for both at risk individuals and healthy older people through the effectivity of exercise is recommended to be even more effective if combined with other treatments. The practical implementation of the plan is efficient for men and women aged 80 years and above as the targets through individualized exercise prescription. Though the benefits of different types of exercise are unclear, an overview of successful programmers point that it improves muscle strength and postural stability. Exercises are done by trained personnel and should be graded in terms of difficulty (p. 12).

   

              In order to maximize the effectiveness of intervention programs and further minimize the risks, it is also important to consider the risk assessment tools to be used.

First issue (200 words)

Second issue and subsequent points (200 words)

References

Appendices

 

Fig. 1 Postulated Mechanisms of Risk (Source: The Chartered Society of Physiotherapy, 2001).

 

 

Reflective Summary

            Introduction

            Main Text

            Conclusion

            References

 

 

working with the elderly older people with risks of falling

 

 

United Kingdom

Preventing of falls in elderly in community

4000 words

Harvard

 

http://www.laterlifetraining.co.uk/Resources.html

Hong Kong is considered to be one of the countries who have the cheapest tax

New Tax Proposal in Hong Kong - Boon or Bane?

Introduction

            Hong Kong is considered to be one of the countries who have the cheapest tax. It has also standard rate and corporation rate of 15% and 16% respectively. This is a very low rate levied compare to the other developed countries (Lips her Accountancy Corporation, 2002). In this regard, this had been the greatest sword of the country is pursuing its objectives to encourage the businesses and the other companies to put their hats in the business ring. This is also the reason why Hong Kong is considered to be the centre of the multinational and to the local companies which operates in Asia. This is advantageous due to the low rates of taxation and earning profit which is tax-free. Hong Kong also benefits for this kind of scenario by allowing foreigners and for the tourism purpose which resulted for the business friendly legal system and the tax friendly environment (Abacus Consulting Services, 2005). Despite of the assistance that the country gets in its tax policy, it made another dimension to it, by issuing the new tax regime that cause a never ended debate to the Hong Kong people. The key importance of this issue is its relevance to the Hong Kong economy and how the people will tolerate this new policy.

            On the 18th day of July 2006, the Hong Kong government had launched a document which has tax reform content and entitled as “Broadening the Tax Base, Ensuring our Future Prosperity: What’s the best option for Hong Kong”. Consequently, the government allows the public to have a view and show up their opinions on the options in order to broaden the tax base. Including in this new tax regime are the capital gains taxes, the increase rates on the tenements, the taxes on the interest and in the dividends, the concessionary deduction which is under the salaries and the reductions in the personal allowances, there are also tax in the worldwide income of the businesses and individual, the land and sea departure tax, the poll tax, the payroll and the social security taxes and the green taxes (Hong Kong Tax Reform, 2006).

            The Goods and Services Tax (GST) particularly is the major changes that the government is trying to implement. Thus, it is still debatable. The government of Hong Kong is will find a hard time imposing this reform who has believe that it will increase the taxes, increase the public spending as GDP, increase the progressively of the tax system, and in the operation deficit.

 

 

Broadening the Tax Base or Not?

            In the article 107 and 108 of the basic law in Hong Kong stated that it should follow the principles in keeping the expenditure inside the limits of the revenues in doing its budget so that it can strive in achieving a fiscal balance which will avoid the deficit while keeping the budget in the GDP. Additionally, part of the 108 is to take a low tax policy which is pursued in the country. This is concerning to the different types of the taxes as the tax reductions, the tax rates, the allowances, and the exemptions as well as the others matters concerning taxes. This is indeed debatable and has the difficulty providing drafts. This is also the reason on the issue regarding the broadening of the tax base in Hong Kong will definitely cause a never ended arguments on the different sector of the community (Prosperitas, 2007).

            Regardless of these key issues, the Hong Kong government is still open for the tax reform which will generate taxes that will be using to the governments’ different agenda and projects. It has then believed that the current tax base is wide and it will prevent the collection of the government from the level of the tax revenues. This is then the consequence in handling volatility of collecting revenues. In the broadening of the taxes in Hong Kong, it is important to generate sufficient tax revenues which owes to the fewer taxpayers and the most important thing  to due is to have a wide analyzation of the and amendments before introducing to a new broad-based tax system as the GST. Aside from this one, there are also several factors to consider in the revenue stability, in the financial stability, in the operational surplus, the economic analysis which reflects to the revenues and to the population growth, and to the ageing population.

            It is important to determine the financial stability and the revenue stability of the country before making any move of changes. The economic analysis is also important due to the services that the government need to give solutions as the ageing and the GDP status.

            In the view of the chamber, in the Hong Kong’s future initiative of it taxation, there should be a detailed consultation to not only on the professionals but also to the public on the critical aspects of the said issue. Consideration on the equity is the major issue in the said plan. In the marginal income utility, the household who has lower income will going to pay higher income compare to the to the higher income which  is seems to be unfair. Until now there are no precise and suitable solutions on administering this kind of policy. It is then signifies that the policy is uncontrolled and volatile that will be able to harm businesses as well as the investments most especially to the overseas. This also the reason why there are continues support on the governments’ initiative upon conducting to a broad, transparent and independent review on the entire basis of tax collection not only in the direct tax system but also to the other sources as the local and overseas with the formulation of the strategic approach view for the collection and for the expenditure for the future.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Advantages of the Proposal Tax

            As part of the canalization of the government, it is much important figure out the advantages of the said plan before implementing it to the public. In the said proposal it has been known to improve the lives of the unprivileged which is the government’s plan for the re-allocation to the wealthy society which is only applicable if the government will go to use its revenues wisely. The introduction of the said proposal will definitely go to the parallel subsidies in the low income. Include in the advantages of the proposal tax are the following:

1. The application of the only one rate taxable goods

2. Application of low rate broad base which levied and can produce significant revenues

3. Payable in the final selling price

4. There should be no tax in the business’ input

5. Put the hats in the business rings – this is the goal of the government while maintaining its competitiveness in encouraging foreign investors

6. Security and sustainability of the revenue base so that it can get the guts in meeting the needs in the expenditures of the public

7. Predictability of the revenue stability

8. Fairness, this is the determination of the amount tax consumed which are paid and therefore signifies that the more money it has been spent is equivalent to the more tax

9. The stabilization of the tax revenues

10. Coming up to the economy amidst the ageing population

11. Generation of predictable and stable tax income

12. The monitoring of the figure in the expenditure in the other way as the GST which will go to generate an additional income of the government.

            In this regard, the government is optimistic to implement the said proposal that will displace and get more dynamic and efficient market while restricting the growth of the economy.

The Disadvantages of the Proposal Tax

            In the current world part of proposal is the rejection or the objections that it had been acquired. There are many protests and jurisdictions which came from the public upon the issuance of the proposal. This had happened due to the disadvantages they had seen as they analyze the document. The GST is unfair because of the large burden it will bring onto the business. Aside form that it is also unavoidable wherein once had been implemented as well as it is unacceptable. The worst thing that may happen is the promotion of the black market in the economy. Part of the proposal’s disadvantages which can obviously affect the businesses and the households are the:

1. The keeping of the tax tracks of the imports wherein the majority of the goods are imported

2. The declination of the number of the tourists. This had happened due to the 5% of the goods and the services. The shoppers are the major people who affects for this one.

3. This will also cause an encouragement to the merchant to cheat

4. This will also make another impact on the structures of the cost in the government. This is to the fact the majority of the people wants to have a simple government. As this proposal will going to implement, then this will going to have a more complex government. Part of the factors that needs the governments’ attention also are the collection and the tax credits.

5. Majority of the households which has a great affects are the poor. This is due to the fact that the 5% is a huge figure. Aside form that, they do not also have government assistance in the case of the sales taxes

6. This area will displace the efficiency and the dynamism of the private market.

7. The extra supply of much large money will going to create hyperinflation which will be damaging in the Hong Kong‘s earnings due to the increase of the prices which are avoidable as the implementation of the proposal is concern

8. Providing an easy source of revenue, it does not mean that it is healthy for the economy, rather, it will be harmful that will cause inappropriate income tax collection. and

9. The domino effect of the proposal and the inflation, will going to decrease the wealth of everyone

10. Undetermining Fiscal Discipline

11. It also leads to the overexpansion of the governments

            In this regard, the government also advices that it should not be abuse about it, but there is still no assurance that the government will resist on the pressure of the politics which is a revenue source and also leads to the different political demands.  

 

 

 

 

The Evaluative Analysis of the Tax Bases

            The proposal of the new tax regime will affect the people on all walks of life. This is simply meant that the affect will reach not only on the high class household but also the lower one. The increase of the prices and goods is the result of the GST implementation. In line with this, there are also alternative tax base in Hong Kong government. Part of the issuance of the alternative, though its had not yet approved is the tax is the introduction of the Goods and Services Tax or the GST. This will produce growing and stable revenue. In order to come up a significant revenue, this could levied a low rate which has a broad based. For the fairness, the amount that the individual consumed should also be equal to the amount of the tax that they paid. The tax can also adapt on the on the growing economic consumption though experiencing the ageing population. Maintaining the competitiveness while giving low tax environment so that in can attract foreign talents and investments are also the features of the GST. On the other hand, the said policy is difficult to avoid because of its multi-stage taxing as well as its credit mechanism.

            Implementing the GST needs to analyze it further as its special feature, including in its features are the single and low GST rate which is a low yet international standards and consistent in the simple and low tax system. There are also high registration threshold which is % 5 million annual turnovers and wide GST tax base that will alleviate the compliance and the complexity of the cost for the administrative businesses and the governments’ cost.

            Aside from the GST, there are also alternative tax bases to implement as the profit tax reduction, reduction in the trade and in the declaration of the charges for the exports and for the imports. This will also increase in the deduction of the tax for the charitable donations. There is also special set-up in the assistance of the voluntary registrants. There are also some options in the additional revenues as the increase in the public expenditure as the health, the education, the social welfare, law and order and infrastructure.

 

Conclusion

            There are many ways in generating income that the Hong Kong should consider. It has also many options of collecting tax. Since, the broadening of the income tax is the major perspective of the government, it has many features that will the Hong Kong government and to generate income. Despite of the awareness of everybody on the quality that it can be done on the land, there are still circumstances and there are protests that serve as hindrances in the economic growth of the country. Additionally, the Hong Kong serves as a very good example in the trend regarding the tax bases in Hong Kong. Particularly, according to , It is the closes the world which is advocated in the flat rates. It is also known that this will bring to the closer and ideal flat tax ideal; it is somehow crass to do it. Aside from that there are also room for the improvement in order to bring into the closer alignment to the current tax system in Hong Kong. The most serious and the most important difficulty that the Hong Kong has to face is the large percentage of the current and the proposed tax rate. Upon considering the proposal or even abandoned then the world will be poorer and the will also compromise the approach of the public when it comes to the public spending and to the taxation due to the lost theoretical interests. It is therefore unreasonable for suggesting to the government on the modification of the tax system, until the rest of the world can have a further research for it. Since, the Hong Kong government is considerable in the changes of the tax system, and then the proposal is still regressive and implicit of the social contract is uncertainty does not satisfy the overall criteria.

            The practical principles are the issues that the government should articulate so that the government will not abuse the GST. The recommendation maybe is the neutrality towards the revenue. In this way all the revenue received should be used to lower the taxes so that the total tax revenue remains constant. This is also applicable to cope up in the competition internationally. The process can be done by the governments’ commitment of lower and direct taxes as preserving its image as having the low and advantageous tax.

This Report will present ahalysis about humanities financial services review project management plan

Analysis of Project Management Plan

 

Part A Critical Analysis of Project Management Plan

 

Executive Summary

 

Table of Contents

 

1 Introduction

            This report will present the critical analysis about humanities financial services review project management plan. The purpose of the report is to apply the different theories and ideas regarding the project management plan. The main purpose of the critical analysis is to critique as well as evaluate somebody’s work based on the opinion, idea and perspective of someone. It is an academic report that contains a description of the project plan (part B) as well as its content.

            This report will also express the opinion of the author with regards to the different part of the project management plan that has chosen. It will analyze the whole project plan by breaking down the project into parts and then studying and evaluating each and every part using the support and help of different references from different books, journals and other related studies.

            This report will also show the importance of a project plan and who will be benefited from its use and implementation. The structure of the report will follow the structure of the chosen project plan. It will individually analyze the different part or aspect of the project plan based on the project management body of knowledge. The main focus of the report is to give analysis about the different important aspect of the project management plan such as the time or schedule, money or cost, human resource or work breakdown structure as well as different risk that can be encountered by the project during the implementation of the plan.

2 Project Background

2.1 Information about the Work

            2.1.1 Title: Humanities Financial Services Review Project Management Plan

            2.1.2 Author: Craig Medley

            2.1.3 Publication Information: Project Id HUM-PR-P1, v. 04 Draft, August 30, 2007, from http://edo.humanities.curtin.edu.au/pdf/Project_Managem ent_Plan_2007.pdf

2.2 Project Description

            The chosen document focuses on the plan for the management of the humanities financial services review project. It was written in order to show or review the different areas or aspects of the newly implemented new transactional systems in November 2007, with an upgrade to the finance one to the Concur and BPI in Humanities only. It can help to know the different processes and flow of data and information of its accounting and purchasing transactions across each and every division (Medley 2007, p.4).

            The Faculty of the Humanities of the Curtin University of the Technology offers different courses in Media, Communications, Built Environment, Art and Design, Education, Languages, Human Services as well as Social Sciences. All f the said courses are only few of the courses that the said department of the Curtin University is offering (Faculty of Humanities 2008). The project plan focuses on the implementation of the finance and accounting system of the department that focuses on the needs of the users of the system like invoicing, ordering, approving, reconciling, access to the system, structure of the outputs, skills and request and access for the different outputs (Medley 2007, p.4).

            The project management plan will help the current system to improve its operations and increase the security that will eventually help to meet the demands and needs of the different stakeholders or users.

3 Structure and contents of the Project Plan

3.1 Project Management Plan and Its Purpose

3.1.1 What is Project Plan?

            Project management plan or simply project plan is a document that corresponds to the overall purposes or objectives, responsibilities, resource requirements and agenda for the project (Baker & Baker 2003, p.29). It is considered as more than a playbook that determine what are the different works or task that are need to done and accomplish (Phillips 2004, p. 32). It is a fluid document that controls the following elements:

  • Provide structure – project plan is developed in order to present a structure or composition in order to get the project to its completion. It must be methodical and systematical but brief and short, compilation of different documents that serves as a point of references in the course of the project implementation (Phillips 2004, p. 32).

  • Provide Documentation – documented project plan is needed in order for the project to be a successful one. This is due to the fact that it must present historical references and the different reasons behind the decisions that have been made (Phillips 2004, p. 32).

  • Provide Baselines – a project plan includes a number of baselines. As the project shift towards the finishing point, the management together with the stakeholders and the project managers can use the project plan in order to see what was predicted for the costs, schedules, qualities and scopes – and compare it to the present condition (Phillips 2004, p. 32).

Project plan is the output or result of the planning phase that confines the different information that has been observed and fulfilled with the team and lays out the different activities and processes about how the project will be carried out. It also represents the projected reality (Martin & Tate 2001, p. 155).

3.1.2 Purposes and Importance of the Project Plan

The major function of the project plan is to provide a step-by-step insight into what it takes in order to satisfy the requirements or the needs of the system (Frame 2002, p. 97). An inclusive and fittingly comprehensive project plan is essential to a successful completion of any project. It can help to direct the project itself. Without the aid or help of a project plan, it will hard and even impossible to lead a group to carry out their different responsibilities in order achieves their common goal (Baker & Baker 2003, p.29).

It is a directing document of the project management that serves up as a storage area for all of the supplementary plans. It is a guiding document for the project and it’s intrinsically needs to replicate all of the information that is critical or crucial to the project manager, project team, customer as well as management sponsor. It offers broad direction as to the cost, schedule and requirements baselines. In its thorough and comprehensive form, it provides much more exact and precise guidance on the nature of the components of the different supporting plans (Pritchard 2004, p. 100).

3.2 Stakeholder of the Humanities Financial Services Review Project Management Plan

            The main audience or target of the humanities of the financial services review project management are the higher officials who are involved in the overall process and management of the different financial and accounting activities in the humanities department of the  Curtin University of the Technology. The plan will focus on the review of the different areas of the current system of the humanities of the Curtin University of the Technology such as the different internal process flows such as invoicing, ordering, approving as well as reconciling; the number of the people or the user that can access the systems of the Concur and the Finance One; the structure of the invoicing as well as procurement function as well as the different responsibilities and functions of each and every users; the different skills of every users; the different uses and what they are used for such as the request for the Curtin tax invoice and its different uses and the different types of transactions that are involved with the credit card or purchase request (Medley 2007, p. 4).

            All of the said information together with other result of the review will be helpful for the management in order for them to improve the current system of the Humanities department that will ensure competitive advantage for their part because it can make the life of their stakeholders a lot easier. It can also help them to excel in their different operations as well as to ensure or add their financial security. 

3.3 Structure of       the Humanities Financial Services Review Project Management Plan

3.4 Different Sections of the Humanities Financial Services Review Project Management Plan

4 Conclusions

5 Recommendations

 

 

 

 

 

 

 

 

Part B Humanities Financial Services Review Project Management Plan

 

1 Introduction

 

1.1 About this Document

 

This document provides a plan for the management of the Humanities Financial Services Review Project.

 

1.2 Background

 

New transactional systems and processes have been implemented recently, being Concur and BPI (Humanities only) with an upgrade to Finance One to occur in November 2007. In addition, the Division is looking at ways in which to best undertake support activities including purchasing and accounting to ensure that efficiencies are obtained. A Financial Services Office is already operational and undertakes some financial processes i.e. electronic processing of credit card transactions.

Based on the above, it is now timely to review current systems, processes and structures which accounting and purchasing transactions operate under across the Division. The areas that would be reviewed include but are not limited to; internal process flows (including invoicing, ordering, approving and reconciling), the number of people with access to systems (both Concur and Finance One), the structure of the invoicing and procurement function (who does what), skills, and how systems are used and what they are used for (e.g. request for Curtin tax invoice, what are allonges used for, what type of transactions are going through credit cards / purchase request).

 

1.3 Project Sponsor

 

The Project Sponsor is Ken McCluskey

 

1.4 Project Manager

 

The Project Manager is Craig Medley.

 

1.5 Project Team

 

The Project team is comprised of Raymond Seah and Craig Medley

 

1.6 Key Stakeholders

 

The key stakeholders (Humanities only) of this project include:

                        Executive Dean

                        Deans

                        Review Panel

 

 

2 Project Scope

 

2.1 Strategic Link

 

This project specifically contributes towards to the following strategic objective(s):

§         Excellence in operations

§         Financial security

 

2.2 Project Benefits

 

The expected benefits and impacts of the project deliverables are:

  • Improved definition and understanding of the role / scope of work of the Financial Service Office in Humanities,

  • Roadmap and high level implementation plan for the agreed changes,

  • Improved efficiencies and effectiveness of processes within Humanities through standardization and centralization where identified,

  • Potential cost savings and risk reduction in procurement and credit cards processes / systems.

 

2.3 Project Deliverables

 

The project’s key deliverables are:

Document / s covering:

  • Matrix of processes and systems under Humanities Financial Services Office and respective Teaching Areas,

  • Services identified for improvement via end to end processing / procurement arrangements / invoicing,

  • Recommended process flow for identified services,

  • List of service deliverables (with the resource requirement) of the Humanities Financial Services Office,

  • Policies to support recommended services,

  • High level implementation plan

 

2.4 Out of Scope

 

The following items are considered out of the scope:

  • Implementation of recommendations

  • Expenditure incurred whilst traveling (this may be included at a later date)

 

2.5 Work Breakdown Structure (WBS)

 

The project tasks to produce the project deliverables are listed in the Gantt chart at Appendix B1.

 

2.6 Constraints

 

The following key project constraints were identified:

  • Availability and willingness of staff to contribute

  • Data quality

 

2.7 Assumptions

 

The following key assumptions influenced the development of this Project Management Plan:

  • All staff will be available as required

 

3 Project Time Schedule

 

3.1 Schedule

The detailed project schedule is provided in the Gantt chart at Appendix B1

4 Project Costs

 

4.1 Budget summary

 

The budget breakdown is summarized as follows:

Resource Type

Total Cost ($)

Hours

Human resources

$30,000

Equipment and products

Consumables

Totals

$30,000

 

 

 

 

 

The Communication Plan examines the key contacts, frequency of communications, and communication medium to be deployed. It is used to ensure adequate consideration has been given to consultation and information dissemination. It is attached as Appendix D.

 

 

5 Project Accountabilities

 

5.1 Project Organizational Chart

 

The Project Organizational Chart provides a visual representation of the project team and project reporting structure. It is attached as Appendix B.

 

5.2 Responsibility Assignment Matrix

 

The Responsibility Assignment Matrix outlines responsibilities allocated to individuals for each task. It is attached as Appendix C.

 

5.3 Project Sponsor

 

The roles and responsibilities of the Project Sponsor include:

                        Responsibility to senior management for the project;

                        Endorsing this document to confirm that project scope and deliverables are correct;

                        Approving changes to scope, schedule, and quality;

                        Reviewing progress and providing strategic direction;

                        Resolving issues beyond the Project Manager’s authority;

                        Providing the resources and sponsorship for the project; and

Examining the project at completion2 and completing a Project Sign-off form.

 

5.4 Project Manager

 

The roles and responsibilities of the Project Manager include:

                        Managing the day-to-day operations of the project to ensure the project deliverables are produced to scope, schedule, and quality;

                        Monitoring and controlling the Project Management Plan;

                        Providing status reports to the Project Sponsor;

                        Leading the project teams to meet the project objectives;

                        Undertaking the tasks assigned, as specified in the Responsibility Assignment Matrix (refer Appendix C); and

                        Consulting with the Project Sponsor and key stakeholders to maintain communications and keep parties up to date on project progress.

 

6 Communications Plan

 

6.1 Plan

The Communication Plan examines the key contacts, frequency of communications, and communication medium to be deployed. It is used to ensure adequate consideration has been given to consultation and information dissemination. It is attached as Appendix B4.

 

7 Risk Management Plan

 

7.1 Risk Assessment

 

The Risk Management Plan, attached as Appendix B5, examines risks, rates those risks and identifies potential treatment strategies.

 

8 Project Control

 

8.1 Progress Reporting

 

The Project Management Plan will be controlled on a regular basis, by means of completing Project Status Report to the Project Sponsor on a fortnightly basis. The key elements are scope, schedule, and risk, with the control process comprising:

 

• Monitoring and measuring performance;

 

• Comparing performance to this plan;

 

• Reporting on deviations and issues; and

 

• Taking corrective action (where necessary).

 

8.2 Change Management

 

Any proposed changes to the scope or quality will be processed as follows:

  • Proposed changes will be evaluated on the basis of their impact on the project process and outcome, and in light of reasonable alternatives;

  • Proposed changes will be formally recorded on a Project Change Control report and submitted to the Project Sponsor;

  • The Project Sponsor will review proposed changes, and either accept or reject them; and

  • Accepted changes will be communicated to all concerned stakeholders, and project documentation will be amended accordingly.

 

 

Appendices

Appendix A1 Project Management Areas of Knowledge and Its Process

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Appendix B1 Task, Schedule & Gantt Chart

 

 

 

 

 

 

Adapted from (PMI Standards & Duncan 1996, p. 7)

Appendix B1 Timeline/ Gantt Chart

 

 

 

 

 

 

 

 

 

 

 

Appendix B2 Project Organizational Chart

 

 

Appendix B3 – Responsibility Assignment Matrix

 

ID

WBS TASKS

Project

Manager

Team Member

Review Committee

Sponsor

Craig

Raymond

Ken

 

1

Policy review

R

I

N

I

2

Purchase to Pay Stream

R

I

N, C

A

2.1

Data analysis

R

I

N, C

C

2.2

Data modelling

R

I

N

N

3

Invoicing Stream

N, I

R

I, C

I, C

3.1

Invoice profiling

N, I

R

N

N

3.2

Develop process documentation

N, I

R

N

N

3.3

Present P2P and Invoice data

R

I

N

N

4

Interviews

R

I

I, C

C

4.1

Define questions

R

R

C

I

4.2

Agree on questions

R

I

C

A

4.3

Conduct interviews

R

R

I, C

N

4.4

Collate information

R

I

N

N

4.5

Develop activity lists / matrices

R

R

I

N

4.6

Develop process maps

R

R

N

N

4.7

Review process maps with users

R

R

I

I

4.8

Present findings

R

I

N

C, I

5

Recommendations development

R

R

I

I, A

5.1

Analyze prior findings

R

I

N

N, I

5.2

Brainstorm options

R

I

I

I

5.3

Develop recommendations

R

I

I

I

5.4

Review recommendations

R

I

I

I

5.5

Finalize recommendations

R

I

A

A

 

LEGEND

R – Responsible for executing activity A – Approval authority

I – Provides input C – Consulted

N - Notified

 

APPENDIX B4 – Communication Plan

 

Stakeholder

Information To Be Communicated

Frequency

Medium

Responsible

Timing

Faculty/Area Administration staff affected by this review

Review Panel

Request for feedback on the draft project plan and outlining next steps

Once before the project is officially kicked off

Meeting

Project Sponsor, Chair of panel & Project Manager

31st August

Executive Dean

Presentation of the draft project plan. The purpose of the project; next stage on from previous financial services review project looking at financial transactional processes & where these could be improved & additional services that may then reside within the division’s financial Services office in the future.

Once before the project is officially kicked-off

Meeting

Project Sponsor and Project manager

Beginning of Sept 07

Representative from Price Waterhouse looking at standardization of processes & systems across the organization

Outline of Humanities Financial Services Review project and the Project Team’s approach. Also to gain input into the project depending on some of the objectives that Price Waterhouse have been tasked with.

Prior to project kick-off

Meeting & Emails

Project Sponsor and Project Manager

1st meeting end of August

Executive Dean and Deans

Kick-off Project, Project plan - main project objectives, communications plan, risks & key areas being covered in the project

At start of Project

Presentation at HMB

Project Sponsor & Project Manager

10th Sept

Project Sponsor

Project Status updates – activities, key findings and issues

Fortnightly

Meeting

Project Manager

Starting 5th September

Financial Services

Introduce the new Associate Director Transaction services to the project and go through project plan & request his involvement on the review committee

Once

Meeting

Project Sponsor, Project Team, & Chair of Review Committee

Approx 3rd week in Sept

Review Committee

Introduction of the new Associate Director Transaction services to the review committee as a new member, Also Summarization of activities, findings at end of Purchase to Pay Stream Phase plus next steps

One of three

Committee meeting

Chair of Review Committee & Project Manager

Towards end of September

Faculty/Area Administration staff affected by this review

General communication to staff in their area about the 1st phase i.e. P2P & Invoicing quantitative analysis

One of three

One on One meetings

Review Panel Members

Towards end of Sept

Review Committee

Summarization of activities, findings at end of Invoice Phase plus next steps

Two of Three

Committee meeting

Project Manager

Towards end of October

Faculty/Area Administration staff affected by this review

General communication to staff in their area about the 2nd phase i.e. Interviews

Two of Three

One on One meetings

Review Panel Members

Towards end of October

Review Committee

Review of draft recommendations and gather feedback for inclusion in final report

Three of Three

Committee meeting

Project Manager

Mid November

Faculty/Area Administration staff affected by this review

General communication to staff in their area about the ‘draft’ recommendations

Two of Three

One on One meetings

Review Panel Members

Mid November

Executive Dean and Deans

Project Outcomes and Recommendations

Conclusion

Presentation at HMB

Project Sponsor and Manager

Early December

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix B5 Communication Plan Calendar       

*Note – Meeting dates with exception of HMB are indicative and subject to change

 

Appendix B6 Risk Management Plan

 

 

Legend for the Risk Management Plan

 

Defining Likelihood Ratings

The following table outlines the definition of likelihood rating as applied to the risk assessment.

Descriptor

Definition

Almost certain

Expected to occur in most circumstances

Likely

Will probably occur in most circumstances

Possible

Might occur at some time

Unlikely

Could occur at some time

Rare

May only occur in exceptional circumstances

 

Defining Consequence Ratings

The following table outlines the definition of consequence rating as applied to the risk assessment.

Consequence

Project Consequence

Catastrophic

Unacceptable effect on project objectives

Major

Major effects on project objectives, requiring significant effort to rectify.

Moderate

Moderate effects on project objectives, requiring management effort to rectify

Minor

Some difficulties experienced, but these are easily managed.

Insignificant

No noticeable effect on project management objectives

 

Defining Risk Rankings

The following table outlines the definition of risk categorizes, determined by combining the likelihood and consequence of a risk.

RISK FACTOR

Insignificant

Minor

Moderate

Major

Catastrophic

Almost

certain

Low

High

High

Extreme

Extreme

Likely

Low

Moderate

High

Extreme

Extreme

Possible

Low

Moderate

High

High

Extreme

Unlikely

Low

Low

Moderate

High

High

Rare

Low

Low

Low

Moderate

High

 

As the old adage goes change is inevitable

I.        Introduction

As the old adage goes, change is inevitable. Though change is often seen as a daunting challenge for any organization, it is needed to induce organisational development initiatives. Consequently, the proper management of this process of change will ensure a higher probability of success for the organisation. This report intends to provide the company with a change management programme as they engage in an upgrade in the equipment that they are using in their operations. Basically, this need for change is prompted by the rapid changes as well as the intensification of the demands of the external environment. To a certain degree, this intent for an equipment upgrade could generally hamper the operations of the organisation given that the major machineries form a great part of the company’s output. The discussions, arguments, observations, and recommendations provided in this report are based on researched articles from change management literature. In the same regard, appropriate models and concepts will also be provided as the report develops.

II.      Background of the Company

The company under consideration, CBT Inc, is predominantly a manufacturing company that similarly operates its own marketing and distribution programmes. It focuses on consumer products and distributes it in the local market. Basically, the author of this report is employed in this organisation. To deal with the demands of efficiency, the company has decided to carry out equipment upgrades in their operations.

III.    Prescription for change

In this part of the report, the intention of the company is inducing change within the organisation is described. In the following parts, the objectives of the change management programme will be highlighted along with the rationale for each section.  

A.    Vision for renewed organization

The vision of the organisation serves as the guiding light to determine whether the company is on the right path in realising its goals. However, the changes in the external environment have considerably been highly influential in the common organisation. Recent trends on efficiency in production have triggered the company to take on change initiatives to be operating at par with the rest of the players in the industry.  

In this regard, a renewed organisation could only be achieved with a consequent change in the vision of the company. To this end, the organisation must realise that a shift to a higher level of competitiveness is in order for the company to address the recurring need to develop and acquire a much larger market share.  The acquisition of new machineries as well as the software that complements the said additions to the company will be able to assist greatly on realising this vision of a renewed organisation. Specifically, the organisation intends to:

·        Improve the quality and productivity of the organisation.

·        Create a culture of competence and excellence.

·        Minimise resistance from the workforce through inducing participation and encouraging communication.

·        Determine the leadership style appropriate for the company.

B.     Direction and Scope of change

In order to realise these objectives, the company have to start by innovation and working outside the established and usual processes which the organisation is accustomed to, unfreeze inertia so to speak. However, before doing that, the managers of CBT Inc should first establish what part of the processes that require changing. In this scenario, the quality and productivity of the company is the primary concern for instituting change.  

For this report, the improvement of learning and other operational developments in the organisation is recommended. This company obviously intends to amend that and acquire continuous development in their operations by increasing the efficiency without compromising the quality of their products. For the purposes of this report, the lean manufacturing scheme presented in Toyota will be consulted to see whether it fits CBT Inc’s processes. (Klier 1999, 18) However, with any development in organisations, there is the distinct requirement of education and training for both the employee and the mangers of the company. (Nadhi 2006, 14) In this regard, this report consulted the case of Ducati Motor Holdings in their effective implementation of knowledge management initiatives in their operations. (2005, 578)

 

C.    Speed of Change

Another important element that should be considered in this change management programme is the timing and speed of the specific milestones in the change process. More specifically, certain courses of action and particular areas to change should perfectly coincide with the capacity of the firm to adapt. To make the programme more manageable, the process of change is divided into two areas: intangible and tangible assets.

In the context of intangible assets, the process of learning of the system required of the employees and managers is included. Therefore, training and other learning activities will be included in this part of the change process. In addition, this will incur an incremental form of change so as to ensure optimal learning and retention will be achieved from the employees. It is at this category that the theoretical foundations of the change process are given initially to the managers. Consequently, it is these managers that will educate their respective teams on the required processes involved. It is in this part of the process where the culture of competition is also introduced to the employees.

On the other hand, the tangible change is characterised by the change in the equipment and machineries used in the operations of the firm. It is here where the practical part of the change process takes place. All the learning and training that the managers and employees acquired during the preliminary phase of the change process is applied in this particular portion. Unlike the intangible assets, the change in this area is transformational.

 

IV.   Proposed Action

The following part of this report will provide a detailed account on the realisation of the specified objectives above. More specifically, a discussion on the management of change, organisational structure, organisational culture, and managing resistance of the workface is going to be given in this part.  

A.    Leveraging Change

Finding flaws in the company that require changing is rather easy. However, it is uncovering the areas that require change and will provide the company with the highest return is the real challenge for organisations. In finding these elements, the company is able to acquire some leverage in the change process. In the case of CBT Inc., the following part will be pinpointing the specific changes that will give the company control over the possible repercussions of the initiatives. The use of a Force Field Analysis allowed the researcher to establish the weight of these specific factors for and against change in the company.

Figure 1. Force Field Analysis of CBT Inc

 

Based on the figure above, it appears that the company appears to have several factors for the change initiative. In fact, the graph shows that it outnumbers those factors not in favour of the change process. A closer examination of the data indicates that the factors that oppose the change process are considerably more influential than those in favour. This requires the management to strike a balance on these factors to allow the change process to operate with minimal resistance from the organisation.  

Seen in the data above, the forces against change outnumber those in favour 11-9. In the case of the resistance from the workforce, the company appears to have a deadlock with the influential employees in the organisation. These employees could be those who are highly esteemed by their colleagues because of their longevity in the organisation or because they are seen as the role models of the younger part of the workforce. To rectify this to the favour of the management, all they have to do is lobby for the change initiative particularly focusing their attention to the key individuals who are against it. Constant dialogue may eventually win them over and acquire their help in addressing those against the change process. On the other hand, another factor specifically the apprehension of the senior staff in the change in technology appears to be a powerful force against the change process in the organisation. The company needs the senior staff as they are the ones who are aware of the existing culture in the organisation. In the same manner, they are the ones who are tasked to convey the new processes on the lower echelons of the operations. To find leverage, the management have to install an extensive training process for these senior employees.  

B.     Renewing System and Structure

The company under consideration, CBT Inc., is a corporation. This means that the organisational form of the company has already been decided, along with the structure and leadership. Changes in the said company’s form are apparently not required. Basically, the company still have a sure way of gaining capital, specifically selling stocks. In the same regard, the company could also enjoy much flexibility as they could change leadership when it appears that the CEO of the company is going against the strategic movement of the organisation.     

 

C.    Tailoring Culture

In order to make the change initiatives have a positive effect on the organisation, the management have to make sure that the initiatives find a fit with the existing culture. However, they have to first indicate what types of cultures are apparent in the company. To do this, they could use the concept of the cultural web to effectively establish the existing culture of the organisation. (Markoczy 1994, 5) Specific areas like stories, rituals and routines, symbols, organisational structure, control system, power structures.

Under the category of stories, the company have a reputation with its customers of having satisfactory products. On the part of the employees, they are talks on how the work required is non-strenuous. These set of remarks and stories about the organisation indicates that there is a laid back culture in the organisation. It says that the employees are not competitive enough, thus creating “satisfactory” and not “excellent” products.

In the context of rituals and routines, the customers of the company expect deliveries to be efficient. This means that the company has been priding itself as it has yet to delay a delivery or missed a deadline. On the part of the employees, they expect their awards and incentives to be fair. This means that these employees closely monitor the performance of their colleagues and have their own set of standards as to whether an awards or incentive is justified or not.    

In the case of symbols, the most recurring image basically is the use of uniforms of employees, both managers and rank-and-file. This shows homogeneity and some degree of fairness as the workforce could easily discern who they could turn to for specific instances.

On the other hand, the organisational structure of the firm is considerably flat. This means that the grievances of the employees could be acquired by the top management without much embellishment as the hierarchy is not that convoluted. This also means that the top management could easily see the specific changes in the workforce with reference to performance and their satisfaction of the job requirements.

  With the control systems, the costs of the operations are monitored constantly as it is the area where the company incurs a lot. On the part of the employees, sanctions for poor work are inexistent as the management believes in positive reinforcement. This means that the employees are motivated to work hard because of the promised rewards and possibility of recognition in the organisation.

The organisation places great importance on the core customers of the firm. This means that the top management always seek to establish good relationship with the clients so as their return in the future is guaranteed. This means that the demands of the core clientele are held highly that it influences the subtle changes in the policies and procedures in the firm. In this regard, the company could emulate what Ducati Motor Holdings did on their Desmo Owner Club where they established a club for their core customers. This means those who have been religiously been involved with the company and buying their products should are given the rightful recognition and created a close customer relationship initiative with them. It is thus recommended by this report that CBT Inc. does the same. (2005, 585)

D.    Participation of the Workforce

Employee participation is defined as a process that “comprises organizational structures and processes designed to empower and enable employees to identify with organizational goals and to collaborate as control agents in activities that exceed minimum coordination efforts normally expected at work.” (Carroll and Arneson 2003, 35) This means that the organisation has to make it a point that the employees are aware that their contribution is required and actually use their input to the change process.

In the same regard, the company could again emulate what DMH did in their operations. Specifically, the DMH indicated that they took care of employee participation initiatives by installing a knowledge management programme that deals with the developments in their relationship with the trade unions, human resource development, and maintenance of the technical and high-performing components of the personnel of the organisation. (2005, 585)

E.     Leadership of Change

In the case of leadership requirements, the company should empower their managers. This is because they are the ones who deal directly with the rank and file and are the most acquainted with the culture of the organisation. (Huy, 2002) In this regard, they are able to maintain continuity in the change process without compromising the operations of the organisation. More particularly, the managers are needed by the company to ensure that there is less resistance on the part of the overall workforce so as to ensure the positive outcome of the change process. ( 2002, 17)

F.     Communicating Change

Communicating change in the organisation is one of the most important courses of action that the management should undertake. Once again, the installation of an effective knowledge management scheme would help immensely. This is

One Popular Option among organizations seeking to reduce expenditure is Outsourcing

Outsourcing the HR Functions

 

            One popular option among organizations seeking to reduce expenditure is Outsourcing. Through outsourcing a part of the organization that is not considered as part of the core business is made into an independent body (Schabracq 2004). Recent trends in organizational restructuring have impacted the way the HR department operates. Organizations of today are keen to keep what they think as the core businesses that contribute to their success. This trend has led to outsourcing of non-core HR activities (Kraut and Korman 1999).

            One of the main reasons why organizations choose to outsource its HR functions is to be more cost effective. Cost saving is among the most frequent cited reasons for outsourcing (Beaman 2004).

           

            One of the most outsourced HR function is the recruitment and selection process. Recruitment and selection brings stability to an organization by attracting and hiring talented workers. Recruitment and selection is now seen as a value-adding and success-contributing activity in most organizations. However, along with the improved status of HR activities comes the demand that HR demonstrate the value-added nature of its role. HR professionals are finding way to maximize the value-added cost of recruitments and selection while at the same time minimizing overall expenditure. This change of view has led to greater awareness of the costs of inadequacies and errors, productivity losses, high turnover, worker errors and accidents, severed relationships with clients and suppliers, and lost business. Another trend that has a big impact on the recruitment and selection activity is the increasing competition for talented workers.

            Organizations are starting to outsource different HR functions. One of these is the recruitment and selection function. In recent years, the world of business has seen the growth of organizations that offer full-service ‘employment processing. This growth was propelled by two trends. One of these is the emergence of a new philosophy of organization that holds that, success in the current environment requires an organization to focus on its core businesses and competitive advantages. Human resource, along with other support functions, are often outsourced. Another trend is the demand to restructure and demonstrate the cost of each activity. Specialized companies whose organizational mission is to provide HR services are in better position to minimize the cost of the hiring process. There are now many outsourcing firms that offer employment processing services for clients who wish to outsource recruitment and selection.

Outsourced Training

 

Advantages of Outsourcing HR Functions

            One of the prime motivators for organizations to outsource their HR functions is to reduce cost. By focusing on core businesses and functions, the organization can reduce the cost entailed by failures and errors in HR functions such as recruitment and selection. By choosing to outsource, organizations can gain advantages. One of these is increased HR delivery effectiveness. More and more experienced outsourcing organizations are highly capable of dealing with HR processes more satisfactorily. Recruitment and selection for example can be accomplished by outsourcing agencies more quickly and efficiently. Organizations today have the advantage of using the expertise of outsourcing agencies. External providers have more experience and knowledge in different HR functions. Because of this, the HR department can focus its attention on more important issues and problems. The HR department can focus its attention of policy and decision-making. Outsourcing HR activities are attractive for organizations that are growing very rapidly (www.hrmguide.co.uk).

 

Disadvantages of Outsourcing HR Functions

            Outsourcing HR functions also have disadvantages. One of these is the tendency of an organization to pass unnecessarily complex or ineffective systems that may hinder the provision of adequate outsourcing. If the organization fails to improve its system before it chooses to outsource, chances are the external provider may fail to provide quality service. Outsourcing is also attractive because of the sophisticated software that external providers posses. Organizations choose to outsource because of the savings in investing on sophisticated systems. If an organization already posses an effective IT system, cost savings will not be achieved from an outsourcing agency. Another disadvantage is that the external provider may not help in the management of employees. Employee management still remains as the main responsibility of the HR department. Because the external provider lack local knowledge and ownership, it may not fully understand the needs of the organization (www.hrmguide.co.uk).

 

Conclusion

            Because of different developments in the world of business, business processes and functions are changing. One area that was greatly affected is the Human resource department. Organizations today are continuously seeking for strategies that will reduce cost and will maximize profit. One strategy that is gaining popularity is outsourcing. It should be considered that outsourcing is a complicated decision and cost effectiveness is not enough to drive the decision. Aside from cost effectiveness, administrative efficiency and expertise in the field of human resources management must be considered. The organization must be prepared as the transition from in-house to outsource HR activities is complex. The transition must be managed effectively in order to achieve success.

November 26, 2008

It has been emphasized that organizational creation is the fundamental to the process of innovation which then constitutes part of the system that produces it

Barriers of Organizational Innovation Management in China

Chapter 2

Literature Review

 

2.1 Introduction of Organizational Innovation (OI)

            It has been emphasized that organizational creation is fundamental to the process of innovation, which then constitutes part of the system that produces it. The ability and capacity of an organization to innovate is a precondition for the successful utilization of inventive resources and new technologies. Thus, in this sense, the introduction of new technologies often presents complex opportunities and challenges for organizations, leading to changes in managerial practices and the emergence of new organizational forms. Therefore, organizational and technological innovations are intertwined. In essence, the term organizational innovation refers to the creation or adoption of an idea or behavior new to the organization (Lam, 2004). As such, the innovation can be a new product, a new service, a new technology, or a new administrative practice (Hage, 1999), which provides the edge or competitive advantage of an organization in its respective market. In this sense, organizational innovation, such as through the introduction of new products and new services, can provide new employment opportunities and positive balances of trade, thus, protecting the nation’s standard of living. Practically, since a nation’s economic development depends largely on the continued launching of new products, governments have become concerned about innovation. This is because many organizations and nations alike perceive the innovation of products, services, technologies, and administrative practices as assisting with the articulation of study of significant breakthroughs in science, the development of superior military equipments, the creation of interdisciplinary programs in higher education, the reform of welfare, and many others. In other words, the study and the recognition of the importance of organizational innovation concerns some of the most basic problems in the society, and thus, can be deemed as important and relevant (Hage, 1999). 

 

2.2 Introduction of Organizational Innovation Management (OIM)

            It has been stressed that businesses nowadays have come to realize the importance of innovation for survival in a world of global competition (Hage, 1999). This is because every organization in today’s generation has been exposed and has already been aware of the fast-paced market and industrial environment that it has due to the continuous, simultaneous, and dynamic changes that happen in relation to science, technology, and communication. Because the concept of organizational innovation pertains to the adoption or creation of a new idea or behavior in an organization, the management of such a concept would also be relevant. It has been reported that in the management literature, innovation serves to drive corporate success and is a strategic endeavor contributing to the differentiating capacity of an organization. Innovation is said to be a high-risk activity, unpredictable, complex, dynamic, non-routine based, involves creativity, and is difficult to control (Huizenga, 2004). With such characteristics, it can be perceived that an organization that would be devoting itself to innovation would be needing the magic hands of management in order to govern, control, and direct its success. In this regard, the concept of Organizational Innovation of Management or OIM pertains to the management of the chances, the risks, and the changes in the organization, in relation to its dedication and commitment in implementing and adapting to innovation. This also involves directing and committing to the development of the organization through determining the potential pitfalls and uncertain, high-cost and results. It pertains to the appropriate delegation of resources that might render value in the long run. More importantly, OIM is about enhancing and motivating change in the organization, thus, involving and developing people to accept, learn, and execute changes in terms of work, skills, and competencies in the organization (Huizenga, 2004).

 

2.3 Relationship between OI and OIM

            As stated and emphasized earlier, the concept of organizational innovation pertains to the creation or adoption of a new idea or behavior in an organization, while the concept of organization innovation management or OIM pertains to the management of the creation or adoption of a new idea or behavior in an organization. From the definitions of the two concepts themselves, it can be understood and deduced that a significant relationship exists between them. This is because in order for an organization to effectively and efficiently undergo its needed changes, it must then be able to come up with a new idea or behavior that would serve to be a relevant and appropriate answer to its needs. However, the utilization and implementation of the said changes or innovation strategies in the organization would not be as useful and significant without proper management, control, and direction. This is because through effective management, the use and the implementation of innovations in the organization would be based on scientific research and data, and thus, would be appropriate for the needs of the organization, in terms of responding to the demands of consumers, its environment, its workers or employees, and its industry.

            The concept of Organizational Innovation is deemed to be closely integrated with the concept of Organizational Innovation Management, given the different factors that interplay between them.

            It has been reported that there are two types of innovation that can be used by an organization, namely, autonomous and systemic innovation. An autonomous innovation is one that can be introduced to the market or to the consumers without massive modification of related products and processes. An example of this kind of innovation is the introduction of power steering, which did not initially require any significant alternatives to the design of cars or engines (Lam, 2004). This form of innovation is usually what is being done by most organizations, as through autonomous innovation, less research, fewer costs, and fewer alterations of products and processes are involved. In this regard, an organization would be able to effectively respond to the needs of its customers, with fewer expended money or budget, but with increased profits. Aside from increased profits, products in the market, which underwent autonomous innovation still pertain to the previous products targeting previous customers, who would be perceived to retain loyalty to the use of that particular product. On the other hand, the second type of innovation is systemic innovation, which favors integrated enterprises because it requires complex coordination amongst various subsystems, and hence is usually accomplished under one roof. An example of a systemic innovation is the complete redesigning of many automobiles in the 1980s, producing front-wheel drive vehicles (Lam, 2004). From this, it can be perceived that the primary relationship of Organizational Innovation and Organizational Innovation Management is effectively determining the type of innovation an organization needs to undergo or implement. An organization must first determine the type of innovation they need before coming up with the next step or plan. In this sense, this involves determining the problems of the company or organization, which need to be addressed through innovations. As such, an organization must not be able to adopt or create a new idea or behavior immediately without thinking and planning about it. Therefore, the relationship of the two concepts involve integrating together in order to determine the problems or issues in the organization that need to be addressed through innovations. An example of this would be to determine first why a certain brand of deodorant is not profiting in the market. Identifying the problem would mean choosing this particular brand of deodorant to undergo innovation or significant changes.

            Identification of the problem, which needs to be answered or addressed through innovation leads to careful planning, organizing, and research. After identification of the problem, the organization can now determine what type of innovation its product/s can undergo. Basing on the current example, innovation of the deodorant brand in question would mean it has to undergo autonomous innovation. Research for the organization would mean the company would be obtaining relevant data and information regarding the performance of the deodorant brand in the market, involving the feedback of consumers and users of the product. In addition, the costs, duration, and processes involved in its production must also be taken note of in order to critically analyze and evaluate the overall performance of the product to be undergone innovation. After relevant research and data gathering, planning would be the next step to take. Through effective and efficient planning, the company would then be able to synchronize its resources and its objectives to the changes that must be done to the product. Careful planning would then lead to organizing, which would allow the company or organization align their goals to the interests of their customers. In this sense, the second factor or aspect in stating the relationship between Organizational Innovation and Organizational Innovation Management involves assisting organizations to careful data gathering, research, and planning, which would be helpful for implementing changes in the organization. Careful and critical planning of the steps to be taken by the organization in relation to the changes or innovations it may take would be the best strategy to do, as this would help the organization lessen future problems and crises, during the actual implementation of the said changes.

            It has been pointed out that managers in an organization need to be trained to create mechanisms and systems that support and facilitate innovation, which is not confined to the management of researchers, engineers, and advertising professionals alone. More and more, managers of all functional areas must need to know how to create an optimal level of organizational innovation in their departments (Fischer, 2001). In this regard, it can be stressed that the third indicator of the existing relationship between Organizational Innovation and Organizational Innovation Management is providing and emphasizing the skills and competencies managers must have in order for the organization to effectively and efficiently implement innovations and changes needed by the company. The relationship between the two concepts emphasizes the need for managers to possess a number of skills and competencies, and assume roles in the organization. Such skills include strong leadership skills, the ability to develop people, excellent communication skills, good interpersonal skills, the ability to handle stress effectively, problem-solving skills, and time management skills (Gido and Clements, 2005). In terms of role, managers must take on a variety of them, which would enable them to perform the different skills required of them. Such roles include becoming leaders, motivators, good listeners, commanders, planners, organizers, and consultants.

            The most important indicator that emphasizes the relationship that exists between Organizational Innovation and Organizational Innovation Management is the presence of strategies or interventions that would assist the organization and its members to undergo the process of change or innovation. The presence of strategies or interventions, such as individual, group, inter-group, and organizational interventions (Rotwell and Sullivan, 2005) indicate that an organization values the development and improvement of its human resources in order to cope or adapt to the changes that must be implemented in the organization. In addition, the fact that organizations bother themselves with strategic and organizational planning and analysis means that the coping with the changes happening in the organization matter to them, as such changes significantly influence the many processes that would determine the success or failure of the organization in its respective industry. In essence, the most important link between the two concepts is to assist in coming up with useful and relevant strategies that would be essential in allowing an organization to undergo its needed changes.

 

2.4 Background of China Manufacturing Industry and OIM Situation

            Manufacturing is one of the most fundamental activities of human beings and the cornerstone of survival and development for society through creating tremendous public wealth. Its industry is the foundation of national productivity and the pillar of the national economy. This holds true for China, as its manufacturing industry is rapidly rising the world as never before. This has been brought about by its reform and opening up to the outside world, along with its entry into the World Trade Organization. As such, China is now the 4th largest manufacturing power in the world, second only to the United States, Japan, and Germany. It has been emphasized that its important mark in its sudden emergence is the rapid expansion of China’s production capability. Over 100 kinds of products of 10 trades including household appliances, medicines, electronic devices, toys and many others rank the first in the world in terms of output. The total trade value of export and import in mainland China has been up to US$ 1150 billion in 2004, second only to the United States and Germany (Limin et al., 2005). In addition to this, its population reached over 1.3 billion people in the middle of 2007, thus, making it the world’s largest and most populous country (Rosenberg, 2007). Thus, its large population contributes to its increase in terms of production in the manufacturing industry, as more and more citizens become the hands that drive the many and large manufacturing industries in the country. The increase then of the population leads to the increase of individuals that China can induce for labor. Moreover, the liberalization of China’s economy, most especially its manufacturing sector led to produce a devastating effect not only to the Mexican economy, but to the American economy as well. This is because jobs are going overseas at an increasingly rapid rate, mostly to China. A look at what happened to the textile industry alone is disturbing. According to the findings of the National Council of Textile Organizations, China now controls half of the apparel market of the United States in product areas where quotas have been removed. The reason for this is that U.S.-based corporate interests have infused it with money, infrastructure, technology, and business savvy. They have even moved their plants to China (McManus, 2006). In this sense, the multinational organizations that have dominated the market of China, along with significant impacts of globalization in the world have contributed to the development of the manufacturing industry of the country. Thus, it can be deduced that the opening up of the economy and market of China has done the country, its economy, and its society good.

However, despite the high regard for the massive production associated with the manufacturing industry of China, it has been stressed that the gap between its own manufacturing industry and the industrially developed countries is becoming noticeable. China’s manufacturing industry can be described as large, but not strong, and is still way behind developed countries in terms of the enterprise scale, technical level or the international market scale, international competitiveness, and the position in international division of labor. Furthermore, a number of problems or loopholes can be seen through China’s manufacturing industry, such as the low level of technical standards and the lack of professional talent versed in technical standards. Problems with the standardization field of China include serious backwardness, lag in standards, serious divorce of formulation of standards from market demand, and the lack of professional talent familiar with, and versed in technical standards, such as of ISO standards. In this sense, the presence and the persistence of such problems serve to hamper and be regarded as constraints to the development of China’s economy, especially in terms of the development of its manufacturing industry (Limin et al., 2005).

From this, it can be perceived that China’s manufacturing industry serves to be one of the largest producers in the world, and this is brought about by the economic and business opportunities provided by the multinational organizations and investors. Along this is the large number of its population, serving to increase the number of individuals to be used for labor. However, the presence of problems and loopholes in China’s manufacturing industry means that a lot of polishing must still be done. Thus, in this sense, the role of Organizational Innovation and Organizational Innovation Management comes into the picture.

 

2.5 OI and OIM in China

            It has been reported that organizational innovation is the premise and basis for technology innovation. Chinese companies normally conduct organizational reforms when adjusting agencies and appointing new leaders (Global ). Thus, with its opening, it can be assumed that Chinese enterprises were dedicated in the process of organizational innovation in order to improve and develop its economy. In emphasizing the process of organizational innovation in China, a number of factors must be taken note of. In addition, both internal and external organizational innovation must also be emphasized. It has been stressed that internal organizational innovation in organizations refers to the system by which internal venture companies are formed, internal project organizations are formed and branch companies are established. This may also be referred to as facilitating ‘entrepreneurship’, which is a good way to create an innovative environment, in order to protect the company against the loss of creative talent (Global ). This is usually done by establishing a number of company branches within the country in order to gather more talents and manpower to drive the operations of a company. On the other hand, external organizational innovation in the company involves the flexible operation of coordination technology, merger technology, and virtual-organization technology, which are all aimed at increasing enterprise competitiveness. Making use of virtual manufacturing methods to gain access to external resources and to more effectively employ internal resources of the company are examples (Global ). One way of doing this is through mergers or acquisitions, which would incorporate the technology of one firm to the other, thus, would provide more innovation and power for the combined technologies and company.

            The process of organizational innovation in China can be emphasized through the changes that can be observed in its economy. These changes are said to be part of China’s dedication to innovate, as such changes enable the nation to be regarded as one of the largest market in the world, which significantly participates in the overall development of the world economy. Primarily, it has been stated that after 15 years of negotiation, China’s accession to the World Trade Organization membership has rapidly demonstrated price competitive impacts on OECD economies (Gu and Dodgson, 2006). Competition is increasingly more vigorous, and extends everywhere, from domestic market to global market, from technology alliance to virtual organization, and from outer environment of enterprise to inner one. At the same time, the innovation enterprises in China are increasingly more frequent and rapid. Nowadays, the innovation actually becomes the main driving force of enterprise growth, thus, emphasizing the fact that it is inevitable to lose in the global market competition if enterprises or companies have no innovation activity (Xu et al., 2002). In addition, regional case studies include the development and innovation in consumer goods manufacturing clusters in China, local cluster earning in the context of the global value chain, Chinese cell phone manufacturers’ regulation, technology, market, skills and competence, mass customization of life and health insurance, and Shanghai regional innovation systems for generating economic development. Aside from the development of its manufacturing and service industries, it has also be pointed out that the development of Hong Kong from trade hub to innovation hub is explored in the role of Hong Kong innovation system in linking China to global markets. The global Chinese diaspora network is examined as entry point to knowledge-based development in local economies (Gu and Dodgson, 2006). From this, it can be perceived that the innovations of China, including the city of Hong Kong emphasize the development and improvement of its economy.

            However, given the changes that happen to the present generation in terms of the development of technology and communication, China has also been actively coping with such changes. One way of coping through such changes is its rapid catch-up with computer industrial technologies. The Chinese computer market was small and almost negligible throughout the 19810s, as was the domestic computer industry. However, at the start of the 1990s, accompanying the opening up of the market to foreign competition, the Chinese computer market was growing at an extraordinary pace. Market size has grown from almost negligible to the second largest in Asia, with more than four million units shipped at the end of 1998. In the early 1990s, when the market was just opened up, foreign competition had effectively wiped out domestic producers. However, in a period of merely six years, indigenous firms had staged a comeback. The share of indigenous producers in the largest segment, the personal computer market, increased from less than 30% in 1991 to 67% in 1997. It is widely predicted that the Chinese market will continue to experience rapid growth and will become one of the world’s largest in the early years of the new millennium. The share of domestic makers will continue to rise. This has to be viewed in the context that the computer market is one of the most open and competitive markets in China, and the competitiveness of Chinese domestic PC makers is based mostly on price and performance. Another indication of its innovation is the fact that China is catching up in the computer industry as a net exporter of computer electronics goods around the world. Although foreign-invested firms played important roles in this respect, indigenous Chinese firms such as Legend and China Great Wall Computer are among the largest exporters. In fact, Legend is now one of the world’s largest suppliers of computer motherboards and add-on cards. In addition, indication that China’s computer industry is catching up includes sophisticated computer information systems integration technologies. This is best demonstrated by China’s technology leadership in markets for pictographic electronic publishing system (Lu, ). With these accomplishments, it can be seen that the potential of the Chinese industry to be regarded as it is has been proven, thus, making it highly capable of innovation, not only in the organizational level, but in a national level as well.

            Aside from the telecommunication and computer industries, organizational innovation in China is also evident in both the food and toy manufacturing industries. Following the increase in the population of China is the development in its food manufacturing industry, to produce more food for the growing population. The food industry of China is expected to generate an income of US$241.8 billion in 2005, which is a 325% increase in 8 years. Its post-Communist market is being driven by the increased spending power and changing food habits of the country’s ever-wealthier people. However, there are significant risks with an emerging market of this size, complexity, and relative immaturity (“The Food Industry in China”, 2005). Thus, with this, it can be understood that the agricultural and manufacturing industries in China cannot cope up with the sudden upsurge of China’s population. In order to do so, several strategies are being implemented by the nation, which in one way or another produces negative or undesirable effects. Lastly, in terms of China’s organizational innovation, its toy manufacturing industry becomes one of the most evident proofs. It has been reported that cheap, plastic toys the kind found in stores, fast food restaurants, fairs, daycare centers, cereal boxes and homes in many countries, almost all come from China. The Chinese toy industry, the largest in the world, generates billions of dollars in export profits and employs millions of people in thousands of factories. These factories are in important part of the economic boom that has lifted many out of poverty in the country. However, it has its own dark side too, as it entails excessive working hours, dangerous equipment and chemicals, cramped employee dormitories, abusive managers, crooked hiring practices, and pay below even China’s minimum wage (“The Toy Industry in China”, 2005).

 

            From the above discussion, it can be pointed out that the organizational innovation in China involves the development of its different sectors, through development of different products and services, through mass production of goods, and through international and global communication and interrelationships. In this sense, it can be perceived that amongst other developing countries, China seems to be the country that would be best fitted to develop into a First World Country. This is because despite its increase in population, China has been continually improving its standing in terms of communication, technologies, strategies, and management. It can be seen that the performance of Hong Kong as one of Asia’s information and technological hub has brought about advantages in China as a whole. Its opening up to other markets has increased Western influence in the country, thus, granting and providing China its changes in terms of technology, language, and management. However, despite the fact that organizational innovation in different firms and industries in China presents positive effects to its economy and world image, many still believe that China is immature and not ready and stable to be regarded as such. Thus, in this regard, such immaturity produces a number of setbacks or problems in China’s manufacturing industry, which would surely produce problems in individual organizations. Given such problems and setbacks, the role of Organizational Innovation Management comes into the picture. This is because, through OIM, the many problems or setbacks in the manufacturing industry of China, along with its individual organizations can be lessened or controlled effectively.

            However, before pointing out the specific strategies and ways of managing organizational innovation in the Chinese industry, the evaluation and discussion of the type of organizations and its employees, including the culture and practices evident in organizations must be stressed. This is because knowing the specific culture and practices in Chinese organizations would be relevant information in specifying how Chinese organizations manage the process of organizational innovation.

            Lockett (1988) emphasizes four important points evident in the Chinese culture that affect organizations, namely, respect for age and hierarchy, group orientation, face, and the importance of relationships. In terms of respect for age and hierarchy, it can be emphasized that the widespread Chinese respect for age and seniority comes from Confucian values, as an older person is often seen as more experienced, wiser, and in some not clearly defined way, superior to those younger in the organization and other types of groups. In addition, such respect stems from the fact that Chinese are influenced and conscious of social stratification, deeming the society as a pyramid shaped structure, with a paramount ruler at the top, a variety of officials in the middle, and the rest of the individuals at the bottom (Bucknall, 2008). The recognition of each individuals belonging to each level of the pyramid is believed to be the cause of peaceful coexistence of each individuals in the organization, thus, extending the sense and importance of respect to older individuals and to superiors. In relation to this is the second major influence that affects the management of Chinese organizations, which is group orientation. In relation to the concept of the pyramid, group orientation pertains to the recognition of the members of the organization of their respective groups and standings or positions in the organization. Thus, with such group orientations, an individual belonging in the lowest level of the organization cannot mingle or interact with the members belonging to the highest or elite level. As such, it is already innate and natural for Chinese workers to regard their specific group levels and classification, whether in the organization or in the larger context of the society. In addition, the concept of group orientation emphasizes the high regard of the Chinese for their families. It has been reported that the group tradition was reinforced by their experience of communism, where people were forced to participate in group discussions and any individual who stood out might later be punished. The group is seen as a source of strength and comfort, and business decisions are generally made on a consensus basis, within the framework dictated by the highest authority of the top management, be it a highly placed politician or public servant, the owner of the firm, or the Chief Executive Officer. This second factor indicates that many adult Chinese are unwilling to make decisions on their own. Thus, a seemingly one-person problem in a particular factory may eventually be solved by a decision taken only after extended discussion by the group, otherwise, it might not be solved at all (Bucknall, 2008).

The third factor that influences the management of organizations in China is the concept of face. Face, in the literal context of the Chinese culture means ‘honour’, ‘good reputation’, or ‘respect’. It has been emphasized that four types of face can be recognized, namely, 1) Diu-mian-zi, or the situation when one’s actions or deeds have been exposed to people; 2) Gei-mian-zi, which involves the giving of face to others through showing respect; 3) Liu-mian-zi, which is developed by avoiding mistakes and showing wisdom in action; and 4)wherein the face is increased through others, such as when someone complementing a person to an associate (“China – Language, Culture, Customs, and Etiquette”, 2008). In essence, losing face means the degradation of one’s honour, which is mostly avoided by members of the organization, and generally by most Chinese. The last major influence of the Chinese culture in relation to organizational management is the importance of relationships. It has been stressed that harmony is an important part of the Confucian heritage being observed and practiced by the Chinese. It is believed that if everyone in the society or the community plays an important role, then overall harmony will be preserved. For this particular reason, self-discipline and moderation are important elements of human behavior, which influences harmony (Bucknall, 2008). In addition, aside from literally avoiding forthright conflicts and confrontations between and among individuals of the group, the Chinese also uses non-verbal communication in order to express what they want and what they feel regarding a certain situation. It has been pointed out that since the Chinese strive for harmony and are dependent with their groups, they rely heavily on facial expression, tone of voice, and posture to tell them what someone feels. They interpret frowning a sign of disagreement, making them maintain an impassive facial expression when speaking. It is also disrespectful to stare into another person’s eyes, thus, in crowded places, the Chinese avoids eye contact in order to give themselves privacy (“China – Language, Culture, Customs, and Etiquette”, 2008). Aside from these four major influences that affect that management of organizations in China, several other characteristics of the Chinese can be pointed out, which present significant impacts to the management of Chinese organizations.

Chinese are said to be collectivistic, in contrast to the individualistic Westerners. Collective social control is being achieved through shame or face, and personality governance is attained through guanxi (). It has been pointed out that to get over a major barrier to communications due to the habit of the Chinese to divide people into insiders and outsiders, people develop a network of contacts and personal relationships for whom they do favors and from whom they ask favors in return. This is guanxi, which means possessing influence or “pull” that one can use with the contacts he or she have developed in the right places. Without guanxi, it is difficult for an individual to accomplish much, and with it a person can have more opportunities and achieve a surprising number of things (Bucknall, 2008).                      

Time Management in Busy Units Like Cardiac Units

Time Management in Busy Units like Cardiac Units

 

Introduction

            Cardiovascular disease (CVD) is one of the leading causes of death among the peoples in New Zealand. The pathology of this disease is important to take note off, as further understanding would provide medical professionals and citizens alike to increase awareness and prevention as well. It has been reported that of the cardiovascular diseases, coronary artery disease is the major cause of death, followed by stroke, which is the greatest cause of disability in older people, and accounts for 33% of life years lost between 45 and 64 years of age (“Cardiovascular Disease”, 2005). In addition, cardiovascular disease is the leading cause of death, with 40% of incidence among the population in New Zealand, and with more than twice as high in men as in women (Hay, 2004). Risk factors or causes of such an increase rate of cardiovascular diseases include the significant changes in the diet and lifestyle of many individuals in New Zealand, brought about by industrialization, urbanization, development in the economy and society, and globalization of the food market. Such changes in diet and lifestyle result to decrease in physical activity, intake of nutrient-poor food, and increase incidence of smoking, taking alcohol and other substances, resulting to obesity, increased blood sugar levels and blood pressure.

            Given this problem at hand, this assignment will discuss the Pathophsiology of cardiovascular disease. In addition, three studies will be presented, which would provide evidence for the use of Lipex, as an effective health intervention in reducing major heart complications and total mortality. The summary and findings from these three studies will be reviewed in the context of the New Zealand population.

 

General Pathophsiology of Cardiovascular Disease

            It has been reported that research on cardiovascular diseases is one of the most developed areas of inquiry in the study of behavioral influences on health (Krantz et al., 1983). In this regard, to be able to further understand the use of Liptex as a health intervention for CVD, its pathology and physiology must first be understood. Cardiovascular Disease or CVD encompasses a number of dysfunctional conditions of the heart, arteries, and veins, which are responsible for supplying oxygen to the vital organs and systems in the body. Some diseases associated with cardiovascular diseases include atherosclerosis, congenital heart disease, coronary heart disease, hypertensive heart failures, inflammatory heart diseases, and valvular cardiomyopathy. Such diseases of the heart are mainly caused by plaque or fat build up in the blood vessels, which obstructs the flow of blood to all parts of the body. Obstruction of the flow of the blood in the blood vessels leads the heart to pump more blood, causing stress and excessive effort.

            The occurrence of cardiovascular diseases is predominantly caused by the excessive build-up of fats or plaque in the blood vessels. Chilton (2004) reports the significant link between lipids and cardiovascular disease, such as coronary heart disease. This particular study suggests that the significant increase in the density of lipoprotein cholesterol (LDL-C) levels increases the risk of major coronary events. Total blood cholesterol above 200 mg/dl, LDL cholesterol above 130 mg/dl, HDL cholesterol below 35 mg/dl, and lipoprotein a) level greater than 30 mg/dl are indicators of problematic cholesterol (“Cardiovascular Disease: Facts, Disease Prevention and Treatment Strategies”, 2007). In this regard, it is best to take note of blood cholesterol levels in order to reduce the risks for cardiovascular diseases. 

Aside from high cholesterol levels, there are other risk factors or causes of cardiovascular diseases, which must be taken note off, in order to increase prevention and awareness. Some of the uncontrollable risk factors include heredity, age, and sex. Some have higher risks of acquiring cardiovascular diseases than others due to the high tendency of inheriting it. In this regard, prevention and awareness for such individuals must be more efficient. Another uncontrollable risk factor is age, as the older a person gets, the more he or she is susceptible to cardiovascular disease. This is because due to aging, blood vessels tend to be more damaged and brittle. The third uncontrollable risk factor is sex. Men are more likely to acquire cardiovascular diseases than women are in general. This is maybe due to the collective risk factors, from which men are more susceptible. On the other hand, Controllable risks factors include obesity, diabetes, sedentary lifestyle, smoking, and stress. Diabetes is a disorder associated with the excess of glucose or blood sugar levels in the body. Diabetes is one risk factor of cardiovascular disease because the high levels of sugar in the blood catalyze the build-up of cholesterol in the blood vessels. The build-up of sugar and cholesterol in the body is caused by obesity and sedentary lifestyles, which means that an individual lacks the opportunity to do vigorous exercises, which would reduce cholesterol and sugar levels in the blood. Smoking and stress are also risk factors of cardiovascular diseases, as nicotine in cigarettes and tobaccos contribute to the narrowing of blood vessels, while stress increases heart rate and blood pressure levels. From this, it can be perceived that the continuously changing environment contributes significantly to the exposure of individuals to such risk factors.

 

Conclusion

            In the point of view of a person with lesser risk to acquire cardiovascular diseases, it can be perceived that the motive and intention for making stations more highly available to consumers is one good way of reducing the risks and the incidences for cardiovascular diseases in New Zealand. However, it must be realized that over-dosages and inappropriate use and intake of such drugs may present adverse effects and complications on the part of the user. In this regard, the use and intake of such drugs without the prescription or guidance of a physician or medical professional may present unwanted side effects and other diseases on the patient. Instead of making the lives of the patient easier and more convenient, the over-dosage of the drug may lead the patient to undergo more complicated and tedious medical processes for further examination and diagnosis. As such, what can be done in order to provide understanding of the drug, of the disease, and of the situation be through provision of effective and proper education and communication with the patients and all those who have increased risks for having cardiovascular diseases. In this regard, the society would have the opportunity to obtain relevant and appropriate information about Lipex and other stations that may provide them with good health. In addition, this can be taken as a good opportunity for the government to dissipate the information of the need for New Zealanders to engage in diet and exercise in order to live effectively and healthily in the society.

A Business Information System is an Iterrelated Component that Connotes Cooperation from the Organizational Members

Requirements and Limitations of the Information System

A business information system (BIS) is an interrelated component that connotes cooperation and collaboration from organizational members to obtain useful data that can be converted into information products to support managerial decision-making (Bocij, Chaffey et al 2005).  Its purpose is to make decisions that can maximize its resource potential against the impacts of a dynamic environment.  The history of business system can be derived back in 1950s when it is merely used as internal efficiency measures, perhaps to avoid overpayment of due bills, up to this date that it is utilized by businesses not only to minimize operational cost through making forecasts but more importantly serve as a basis for business strategy.

 

The types of BIS can be classified according to time-frame and extent in which the business would use information products in question.  Executive and management information systems are aimed to support strategic and tactical decisions.  They are basically of medium- and long-term basis and associated with substantial vitality in which decision outcomes are very risky.  On the other hand, operational information systems are intended to support day-to-day business operations.  They are of short-term basis with minimal risk involved but are also crucial to obtain attainment of long-run outcomes.      

    

            Acquiring BIS can be classified into four specific methods. First, the built in-house and software-house both involve IS professionals but differ in such a way that the former is done within the business premises while the latter is outsourced from the outside.  Second, buy it off-the-shelf involves direct purchase of a IS which is already used by other companies having a wide-range of functionality that the business can readily enjoy without customization.  Lastly, built it end-user development is like the first methods but the people who build the IS are mere members of the organization not IT professionals which is intended to meet local or personal needs.    

 

Understand the customers.  This is the most obvious and primary task for a firm.  There are four basic consumer aspects to know, also called four C’s; namely, customer solution, cost, convenience and communication (Lauterborn 1990 p. 26).  Customer solution is related to differentiation business-level strategy in which firms should offer products that customers perceive to be valuable at an acceptable price (Porter 1980 pp. 35-40).  However, when a firm aspires for excellent customer services (ECS), customer solution should not end after delivery of the product even the firm is confident of its design and quality.  ECS triggers extended customer evaluation process, that even after sales, the buyer is continuously testing the quality of the product especially in the aspect of durability.  In effect, the firm should include before-sales ECS features such as free-test, security seals in products packages and product description.  These are not only for eye-catching purposes, but more importantly, to aid customers to build rational expectations.  Further, the point-of-sales should include knowledgeable and confident salespeople in order to maintain the expectation created initially.  Lastly, there should be an after sales service like service-warranties, money back offers and return-exchange policies to resolve complaints which could arise from the first two stages, or possibly from, the product/ service (P/ S) itself.

 

            Customer cost is related to cost leadership business strategy in which firms should offer P/ S with lower-than-competition cost at acceptable features (Porter 1980 pp. 35-40).  Through efficiency of and cost-savings from primary and secondary activities in the value chain, the strategy can be attained (Hitt, Ireland, Hoskisson 2003 p. 122).  Cost requirement in ECS, however, could involve additional cost relief for customers outside plant operations and efficiency reasons through P/ S discounts, bulk-buying incentives and freebies.  Such would actually mean aggressive pricing or even an indication of a price war to protect margins from competition.  On using cost as an ECS mechanism, in the contrary, firms should prevent to overtake the market of an industry leader, trail in innovation feats or get its P/ S under perceived devaluation in quality.         

    

            Customer convenience is the counterpart of place or distribution channel in firms’ view.  According to Proctor 2000, having a strong channel can lead to success in marketing (p. 96).  There are different kinds of channels to choose from; namely: direct selling, telemarketing, e-commerce, wholesaler, retailer or through agents.  Each of these has their own strength and weaknesses.  For example, selling through retailers can support ECS in terms of costing as there is stiff competition and players want to gain market share.  But as the P/ S of the firm is scattered over a large geographical area and sold in different markets, lack of monitoring would lead to mishandling and wrong advertising.  The efforts of before-sales discussed earlier will be undermined and P/ S would be perceived with less value.  However, convenience is a common remark for retailers due to accessibility, over-the-counter payment and chance to bargain.

 

            The task of a firm is to choose channels that provide the highest contribution to ECS.  Channels have varying customer privileges like accessibility (retailers), security (wholesalers, malls), interactivity (e-commerce) and support (direct selling, agents).  Aside from location, complementary services of such channels need to be evaluated like the payment process, building ergonomics, staff attitude and other channel-specific policies.  And finally, customer communication reciprocally refers to the promotion and advertising system of a firm.  This last element of customer understanding endeavor is at the heart, if not the brain (in literal terms), of the process.  This is because it addresses the questions such as “Do customers kept informed about the P/ S features in an understandable manner?” and “Do firms listen to the customers?” (Proctor 2000 p. 48).         

             

            Imperfect information is written all throughout economic books and other applicable academics.  Communication minimizes imperfect information to advance, although in smaller distance, to perfect costumer-firm relations.  Thus, it is crucial in choosing specific communication media that provide the platform that effectively justify the two questions of Proctor.  For example, in resolving the former, advertising media (print-ad like billboards and magazines, audio and video, internet, commercials, etc) should suit the general environment (see below) above anything else.  Without such caution, the P/ S communication may only be viewed as taboo, unhealthy ad and would not serve its purpose (Kotler 2001).  ECS requires firm messages to be sent according to the resources and capabilities of the firm.  To do this, the cost of advertising media and the content should be rational to the core competencies of the firm.                   

 

Project Plan Using SSM

Soft systems methodology (SSM) is supported by continuous user involvement in iterative development and incremental approach that is responsive to changing requirements (Internet, 2006).  It consists of three-phases; namely, pre-project phase, project-life cycle phase and post project phase.  The methodology recognizes that projects are limited by time and resources.  On the other hand, Gantt chart can collaborate with SSM for the project plan to achieve easy usage and understanding (Burke, 2003).  It is formatted with calendar time scale in the top line and activities in the left hand column.  The chart has the ability to track project progress for the purpose of project design and determination of important milestones and slack days that can be used for determining the project development and flexibility.  With these guides along with historical accounts of Aquarius case study, new crew management system project plan can be discussed.

 

SMM focuses on information system projects (Wikipedia, 2006) which are compatible to companies whose operations rely heavily on information technology and computer systems.  There are important principles under SMM method; namely, user involvement, empowerment of the project team, frequent delivery of products, delivering a system that address current business needs, iterative and incremental development, changes during development is reversible, high level scope and requirements should be base-lined before the project starts, emphasis on testing and cooperation among stakeholders is crucial.  In addition to these principles, SMM is also guided by some assumptions; namely, there are no perfect prototype systems, pre-potent project stages, performance is based on time, money and quality, project management techniques is applied, can create new or expand current systems, risk assessment is in business function, product delivery is more important than task completion and functionality is the basis of estimation.     

 

In pre-project, since Aquarius has current problems with regards to the level of innovativeness of its IT, consultants and external engineers can help in the first stages of the project.  In the long-run, outsiders can also provide information on technological changes that they can share with the firm.  Business needs should be classified in monetary, strategic, intangible and time-based criteria to avoid overlapping of goals and forgoing priorities.  This supports imperfections that Aquarius may experience in its first attempt to collaborate creation of a new crew system.  Conflict and friction may emerge between inside and outside IT engineers that it is important for the company to establish open communications between the two sides to prevent delays or adversely affect the quality of the system.  Aquarius lagged strategic competence due to inability of managers to take action and persistence to use the old system.  Improvement in communication should be initiated from within to detect problems as they arise.

In the project life cycle, information systems are a new technique that Aquarius would pursue.  Due to this, change in corporate culture is necessary to appreciate its underlying principles and prevent substantial resistance from the workforce.  The company has greater incentive to introduce a new technique amid nearing bankruptcy, tainted reputation and operational losses.  The primary weakness of the old system is its limited capacity for adjusting and re-scheduling flights while its strength is familiarity and trust of employees using it for many years.  Therefore the prototype system should focus on altering the old system weakness above anything else.  This prioritization prevents engineers to spend time for unknown limitations and impacts of the old system.  Upon resolving the primary weakness, employees should try to use the edited system.  Suggestions will be entertained based on survey and will be rationalized by financial resources and time for resolution.  If employee suggestions are approved, second, third and so on prototypes will be created encompassing beneficial features and reduced weaknesses of the earlier system models.  Continuous refinement, testing and checking time scale should be adapted.

 

Participation of Aquarius managers and employees testing and redesigning the prototype is vital.  Weak participation and low motivation can connote understating the abilities of the prototype.  Since there are no previous formal iteration records that the company secures, improvements of system in the past will not determine the implementation of prototype testing.  The firm is confronted to build its learning curve to be able to understand an efficient, user-friendly and dynamic system.  Functional and non-functional features of the prototype as dictated by corporate surveys should be determined to create risk measures for the new system.  This can aid in analyzing the future performance of the system, if ever it will be approved.  Before implementation, assure that end-users of the system approve abolishment of the old system. 

 

In the post project cycle, there should be available training for new users and re-training for old users who are confronted with system modifications.  Problem identification can be initiated in a bottom-up or top-down approach for system evaluation to have strategic and operational perspective.  Human resource department should secure budgets for continuous motivation especially when the system change is top-down approach in which resistance can occur.  Leadership should be charismatic enough to convince the workforce that corporate goals like positive earnings and competitiveness is in line with employee objectives.  To assure the effectiveness of the system, monitoring and evaluation should not only be done against employees but more importantly to the performance of the system.  The basis for system appraisal can be the improvement in revenues, ability to prevent shutdowns or higher employee productivity.  Customer satisfaction with regards to accuracy of scheduling and booking can also be used.  Aquarius must remember to prioritize their objectives in evaluating the system as to prevent too much optimism.  Information systems requires learning process and since the company is only on its first-time to create its own learning curve expectations must be rationalized and not exaggerate.        

Role of Effective Leadership

Effective leaders are described as having four distinctive characteristics eminent to their groups; namely, they provide direction and meaning to people, they generate trust, they prefer risk-taking and they are source of hope (Howard, 2005, pp. 384+).  These are merely behavioral references available to leaders but it is concluded that choosing a leadership style depends on personal characteristics or predisposed genetic make-up of a person (Fiedler, 1967).  In effect, the impact of external stimuli (e.g. graduate class education, series of workshops, peer pressure) could be an inefficient way to change leadership behavior.

 

            However, the choice of a specific or preference of holistic approach to leadership style can be undermined by admitting that the true measure of effective leadership style is based on the sum of individual results for leader’s goals, member’s aims and achievement of organizational objectives (Howard, 2005, pp. 384+).  Due to the conflict of interests among these individualities, it induces the application of discipline and grievance that both leaders and members can use if their respective desires received too much repression (Sims, 2001; Duane, 1993).  But these two procedures can only contribute to questioning the appropriate leadership style for the group. 

 

            In the corporate arena, the incidence of groupings apart from more general departmental divisions (e.g. project-based groupings) is a core aspect of project planning and execution (Burke, 2003).  Project-based groups foster the combination of different skills, ideas and attitudes that makes creation of the project more far-reaching, adaptive and formidable.  A global hearing aid manufacturing firm, Oticon, used this particular grouping strategy for its human resources that are popularized by tagging its structure, spaghetti organization (Adam-Smith & Peacock, 1994). 

 

            In simple terms, spaghetti set-up makes employee’s job description very flexible.  Their function is not static and based on the load of projects the company is currently managing.  They can work at home, be a member of the project team and even be the project leader (Adam-Smith & Peacock, 1994).  To monitor their performance, there is a secretariat and manager that assure that every employee does not rest for a long time without a project and their promotion lies in their contribution to projects.  Such projects are related to product development, market research and pilot testing of developed products.  Involvement in a certain project can be initiated by an employee or can be bargain by the project leader.  There is no coercion from the project leader but the motivation to join is the employee audit that assures every employee has something to do.  Project leaders are sometimes selected by higher managers and also can be the employee who proposed the project.

 

Role of Effective Communication

            Non-verbal communication is behaviors that serve as substitute or complimentary to verbal communications and is considered the extreme type of communication that forms the large share of the process.  It has three basic functions in a communication such as identity management, definition of relationship and representative of feelings or emotions.  Some examples of non-verbal communications are body motions, touch, eye contact, intonation and fashion (Darn 2005).  Due to its implicit nature, although relevant, non-verbal communication posts limitations such as different responses from individuals and distortion from cultural norms (Hartman).   

 

In the case, non-verbal communication is exemplified by vocalics, kinesics, chronemics, expression, silence and proxemics (Darn 2005).  In simpler terms, it is represented by tone and speed of concluding the call, snapping shut the phone, pausing when the staff stared at her, smiles when invited to join the staff, stillness after the invitation and spatial separation that results in such refusal.  On the other part, of there is oculesics (e.g. eye contact after the call) and silence (e.g. after the call and after the refusal from invitation).      

 

In the invitation event, a person had released mixed messages such as the negative response is for the entire staff and person instead of person and the other person in isolation or the failure of the department to obtain their sales quotas.  In addition, the refusal of the invitation and showing the shutting of the phone with accompanied stare to staffs can mean personal temper.  Mixed message is also present in the e-mail event, where person’s comments on reducing coffee break between person and the other person would mean that person must withdraw personal intentions with other person to regain boost in sales performance.  On the part of person, mixed message is wrapped when he invited in the room person as it may mean that he is hiding something about him and the other person.  The staff also implied mixed message when they starred to person after the phone conversation such as invading of privacy.  

 

Figure 1: Graph Showing the Effect of Non-Verbal Communication.

 Non-verbal communication is positively related to mixed messages.  As they emerge more frequently and used heavily in communication, the probability of mixed messages as outcome increases that can dissolve the real message of the sender.  Therefore, the actors in communication must minimize non-verbal communication to be able to succeed in their respective messages.  The communicators must also note that when little non-verbal communication is applied, there is a need to increase the verbal communication in replace of the former.  This is because the lost of non-verbal communication limits the components communicators can use in interaction thus verbal messages is crucial.        

 

Evaluating the Value of Communication Methods   

            According to elements and capabilities.  Written word is suitable for organizational messages whose impact is of long-term nature to the receiver (Fastrack Consulting, 2006).  It is also an effective method when the message has several technical points or personal feature that can be difficult for the receiver to comprehend when spoken and too awkward to hear in a crowd.  In view of this, written messages preserve the objectivity and ethics of communication.  For an individual staff, it can be a useful tool to aid in the process of information retention while for the organization it can be a source of professionalism as correspondence tends to be filed for evidence and future reference.  Because of this, this method is used to produce organizational manuals and external letters.  In a veil, this is a cost effective strategy to educate staffs and managers about corporate developments and events and create professional relationship with other stakeholders.

 

            On the other hand, spoken word is fitted for mostly short-term/ operational requirements of the organization (Fastrack Consulting, 2006).  It is a practical approach to make operations efficient especially when accomplishment is related to time constraint.  Although it is more informal than written words, its value is derived by its capability to show emotions and stress the importance of the message.  It offsets the lack of retention feature of the former with its ability to touch human interests and emotions making records and future reference less required.  Common media that goes with spoken word is phone and meetings in which straightforward delivery of messages are directly related to the ability of the speaker.

 

            Although analyzed separately, corporate communication necessitates the combination of written and spoken words for optimal value.  Particularly for for-profit corporations, the cause of its existence and continuing operations is largely based on its performance which is reported though a conference with provision for visual aid to reflect significant numerical data.  The best model to consider in their combination is that written words serve as an aid to memory for complex set of ideas while spoken ones is used to pinpoint the relevant ideas through change of intonation and even deal with uninterested audience.  Due to this, deciding on when to change the use between them lies in the ability of the speaker to put his foot over the audience, that is, considering their needs and preferences.  As such, the nature of delivery should be referred to the nature of the audience making written and spoken word combination more intricate.      

         

            According to dimension.  Recorded communication can take the form of letters, faxes and e-mails (Fastrack Consulting, 2006).  As such, it suits for messages that require compound judgment on the part of the receiver.  It also suggests that the message is of utmost importance and must be acted upon in an accurate and acceptable level.  The sender uses recorded communication because he wanted to incorporate all necessary aspect of the message and increase its recovery value through highlighted words, close-up video shots, etc.  In the contrary, live communication encompasses messages which might be of the same importance as the recorded ones but whose action from the recipient demands immediacy.  As such its value can be more appreciated by placing it within a recorded communication initially and be follow-up by live contact with the receiver.  This will preserve the both the substance and periodic importance of the message. 

 

            Passive communication somewhat extends in the nature of live ones but differs in the sense that it is strictly unidirectional in which live ones could be conversant (Fastrack Consulting, 2006).  Its value relies on the ability of the message to resolve possible ambiguities or conflicts the message can inflict to its recipients.  Thus, this demand an unblemished type of message since by the time recipients start to ask or clarify something, passive delivery is out of context.  If explicitly converted into generally accepted medium, it can provide quicker responses.  On the other hand, interactive communication is one that has feedbacks.  This allows the sender to polish the rough edges of his message and somewhat create a learning curve possible for future delivery improvements.  It also encourages staffs to bring out their views that can constitute a healthy organization and stimulate creativity.  When an interactive speaker has earned an in-depth knowledge of the audience, he can make easily transform complex messages with abrupt responses into acceptable passive mediums. 

 

Role of Mentoring and Coaching

Human resource management is not an easy task because it perceives an organization in holistic manner.  From recruitment to termination, incentives to penalties, productivity to inefficiency, growth and downsizing, human resource management plays a crucial role directly or indirectly.  Simply put, this phenomenon is possible because its responsibility revolves around people. May the issues are personal or professional in nature as long as they affect employee’s performance at work, its interference is required especially when the organization places emphasis on human resource’s part to obtain corporate objectives.

 

Since no organization is alike, same is the situation in human resources management landscape.  Even there were written, proven and based-from-experience theories and beliefs on how to handle employees for the benefit of the company, each are under varying conditions and corporate values.  Because of this, human resources personnel tend to have general approach to these available strategies while final decisions are subjective and contingent.  Also, the emergence of sudden organizational change, internal problems and other external junctures that caught an organization unprepared result to puzzled human resources decisions.  This includes wage increase behind annual net loss, employee benefits under inefficiency brought by machine breakdown or expansion in face of corporate tax increase.  Such incidents leave the HR personnel torn between corporate constraints and employee welfare.

 

HR role in compensation schemes and career development are crucial factors in employee motivation for optimum performance because these affect their present and future status and undertakings.  An employee who feels that the company is providing just wages or issue appropriate performance-based benefits will manifest work satisfaction.  On the other hand, when he is not afraid to loose job and a persistent hard-worker because of ample knowledge gained from relevant trainings and provision of clear career paths, he will exemplify work excellence.  

 

Every organization wants to have a pool of human resources that can create sustainable competitive advantage.  According to Barney (1991), an organization aiming to achieve this should have a certain resource, in this case human capital, which can create value for the firm.  It must also be rare, inimitable and non-substitutable (cited in Wright 2001).  Since human resources are not only proven to be the most important company resource but also the most complex in terms of making it act for the achievement of corporate objectives, HRM is responsible to keep motivation among employees within the context of corporate culture, employee characteristics and other outside factors.

 

Human resource management is not an easy task because it perceives an organization in holistic manner.  From recruitment to termination, incentives to penalties, productivity to inefficiency, growth and downsizing, human resource management plays a crucial role directly or indirectly.  Simply put, this phenomenon is possible because its responsibility revolves around people. May the issues are personal or professional in nature as long as they affect employee’s performance at work, its interference is required especially when the organization places emphasis on human resource’s part to obtain corporate objectives.

 

Since no organization is alike, same is the situation in human resources management landscape.  Even there were written, proven and based-from-experience theories and beliefs on how to handle employees for the benefit of the company, each are under varying conditions and corporate values.  Because of this, human resources personnel tend to have general approach to these available strategies while final decisions are subjective and contingent.  Also, the emergence of sudden organizational change, internal problems and other external junctures that caught an organization unprepared result to puzzled human resources decisions.  This includes wage increase behind annual net loss, employee benefits under inefficiency brought by machine breakdown or expansion in face of corporate tax increase.  Such incidents leave the HR personnel torn between corporate constraints and employee welfare.

 

HR role in compensation schemes and career development are crucial factors in employee motivation for optimum performance because these affect their present and future status and undertakings.  An employee who feels that the company is providing just wages or issue appropriate performance-based benefits will manifest work satisfaction.  On the other hand, when he is not afraid to loose job and a persistent hard-worker because of ample knowledge gained from relevant trainings and provision of clear career paths, he will exemplify work excellence.  

 

Every organization wants to have a pool of human resources that can create sustainable competitive advantage.  According to Barney (1991), an organization aiming to achieve this should have a certain resource, in this case human capital, which can create value for the firm.  It must also be rare, inimitable and non-substitutable (cited in Wright 2001).  Since human resources are not only proven to be the most important company resource but also the most complex in terms of making it act for the achievement of corporate objectives, HRM is responsible to keep motivation among employees within the context of corporate culture, employee characteristics and other outside factors.

Identify the Tensions in the Development and use of these Competencies

 TABLE OF CONTENT

 

EXECUTIVE SUMMARY.. 2

SUMMARY OF THE ESSAY…………………………………………………………2

CONCLUSION OF THE ESSAY……………………………………………………..2

INTRODUCTION.. 3

SKILLS, KNOWLEDGE & ATTRIBUTES. 3

IDENTIFY THE PROBLEMS. 6

IDENTIFY THE CONFLICTS………………………………………………………..7

IDENTIFY THE DILEMMAS………………………………………………………..8

IDENTIFY THE TENSIONS IN THE DEVELOPMENT AND USE OF THESE COMPETENCIES…………………………………………………………………….9

CONCLUSION………………………………………………………………………10

REFERENCES……………………………………………………………………….11

 

 


 

 

EXECUTIVE SUMMARY

This research essay aims to explore in depth the skills, knowledge and other attributes of the effective change agent. It will identify the problems, conflicts, dilemmas and tensions in the development and use of these competencies. I will also share my relevant personal experience.

 

 

SUMMARY OF THE ESSAY

 

This essay emphasizes the different skills, attributes, and competencies change agents need in order to fulfill their roles and responsibilities in an organization. The different skills and competencies are being described and illustrated through the many actual experiences by the researcher. In addition, the problems, conflicts, and dilemmas in relation to the skills of the change agent are also discussed in order to provide two sides of the story.

 

 

CONCLUSION OF THE ESSAY

 

This essay can conclude that a number of skills and competencies are needed by change agents in order to effectively and efficiently allow the organization to undergo change. The different skills and competencies must be taken note off in order to allow the change agent to do his or her responsibilities. However, despite the use of such skills and competencies, problems and conflicts must still be taken note off before pressing on changes in the organization for better management of change.

 

 

 

 

 

 

 

 

 

INTRODUCTION

 

Change processes and change projects have become major milestones in many organizations’ history. Due to the dynamics in the external environment, many organizations find themselves in nearly continuous change. Unfortunately, not every change process leads to the expected results. There are many reasons for potential failure, such as typical barriers to change, which are unexpected changes in the external conditions, the lack of commitment in implementation, the resistance of the people involved, and the lack of resources. More important is the negative symbolism and the de-motivation of people involved. People within the change team may become dissatisfied with their own performances due to the lack of support they receive from the team. As a result, some of them will probably never again be willing to commit themselves to change initiatives. Similarly, people affected by the failed change effort will develop growing skepticism. They might perceive future change projects as “another fancy idea from the management”, which brings a lot of work but few benefits. Therefore, the change agents are key figures in most organizations because their capabilities bring about major impacts on the success or failure of the project, and on the extent of potential unwanted side-effects.

 

SKILLS, KNOWLEDGE & ATTRIBUTES

All of us must notice that not everyone can be a successful change agent because it requires specific skills, knowledge and techniques to handle different change issues. This is to ensure that integration efforts produce long-term solutions to significant system problems through a process that preserves dignity and respect for both consumers of services and the full range of stakeholders across multiple systems (Wertheimer, 2001). As such, the change agent must be able to have a number of skills or competencies they need to be able to facilitate effective management of change.

 

Primarily, the change agent must have team-building abilities to bring together key stakeholders and establish effective working groups, and to define and delegate respective responsibilities clearly. Most of the people in the early phase of reacting to change often are unable to do much at all. They might accept the changes but will do anything to cope up with the change. Therefore, the change agent must have team-building abilities in order to motivate staffs in making changes happen. For example, the change agent must support and backup the staff when finding difficulties in change of new system. On-job-training can be provided when necessary, thus, fewer problems can be generated during the actual use of the new system. In addition, a change agent should have the networking skills in establishing and maintaining appropriate contacts within and outside the organization. He or she must have tolerance of ambiguity, to be able to function comfortably, patiently and effectively in an uncertain environment. The reason is that some people interpret change in different ways, especially those who are fragile emotionally. They will have much greater difficulty swimming through feelings of loss and may continually see themselves as victims. Such obscuring emotions will hinder their ability to move on. Instead, they may cycle back to displaying a shock-like or defensive behavior. For example, a few relatives work in my company while our company having restructure. They feel they are victims and they think our company is trying to get rid of them. They react against the company through an industrial action like resigning together. The reasons they do that is because they do not see that we are working as a team, rather they are out from a team. They also feel the uncertain environment of the restructure. Therefore, they hope that the company will remain unchanged from their well known environment. I lastly accepted their resignation, as this can be a way of letting other staffs know that they cannot threaten the company by resignation, thus, restructuring must move on. I have also explained to the existing staffs that restructuring would benefit them as well and if they are having any concerns or feeling uncomfortable for the unknown future environment, we can openly discuss that to make them feel more comfortable and rather than listening to rumors.

 

Second, a change agent must have sensitivity to changes in key personnel, top management perceptions and market conditions, and to the way in which these influence the goals of the project. For example, my company plans to buy another warehousing software system due to the fact that the current system does not meet the rapid changing new customers’ requirement. Whereas, the management point of view is that they think it is a huge investment and not necessary yet because they think current system can fully satisfy and maintain existing customers. In my point of view, changing new systems is necessary although current customers are already satisfied. It is because to plan and imply a new system takes huge amount of time to test and fine tune. If the company do not prepare ahead, then, it cannot meet the customers’ requirements on time.

 

Third, a change agent must set clearly defined and realistic goals. For example, I have set a goal for my operation staff which requires them to update all the operational documents on the same day rather than to hold them for the next day or even later. I have clearly specified the documents that must be updated on same day rather than doing them later. The reason is because individual staff might have their own perception of the word ‘updated’. I had also explained that update on same day is reasonable, as customers want us to respond to specific stock inventory, and our response time will be quicker due to all documentation had already been updated.

In addition, a change agent must have communication skills to transmit effectively to colleagues and subordinates the need for changes in the project goals and in individual tasks and responsibilities. They should be strong in interpersonal skills, across the range, including selection, listening, collecting appropriate information, identifying the concerns of others, and managing meetings. They should have personal enthusiasm in expressing plans and ideas. Moreover, they should stimulate motivation and commitment in others involved with the project. The reasons include that employees might perceive the change as loss in turf, diminution in status, identity or self-meaning in general. It also implies taking risks, particularly to those associated with low self-esteem, loss of face, appearing incompetent, and seemingly unable or unwilling to learn. Furthermore, everything that someone has built is considered threatened (2003).

One example from my company is that most of the staff had worked for more than ten years. I plan to develop and recruit new staffs to improve the company’s productivity, as our business has been rapidly expanded over the years. However, the existing staffs refuse to teach the new staff or hand over some of their overload jobs to them. This is because they feel that these new staff will take over their job and might be more capable to do their job if they teach them. As a result, some new staffs resigned because they cannot stand this type of political working environment. Furthermore, those staffs that can stand this environment form a new staff group against the older staffs.

Moreover, a change agent must have the knowledge in selling plans and ideas to others by creating a desirable and challenging vision of the future. He or she should know how to negotiate with key players for resources, for changes in procedures, and for resolving conflict. Referring to the previous case, if the change agent has the knowledge in selling plans and ideas to others, it can be resolved by persuading the existing staff that they have the capabilities to develop new staff. A change agent can have the opportunities to promote and to manage his or her teams. In addition, he or she can let them know if the new staffs support the older staff, he or she can more easily lead the team in the future. 

A change agent must have the political awareness in identifying potential coalitions, and in balancing conflicting goals and perceptions. He or she should have influencing skills, to gain commitment to project plans and ideas form potential skeptics and resisters. A change agent should always have helicopter perspectives, to stand back from the immediate project and take a broader view of priorities.

A change agent should realize that there is more than one right solution. One has to be able to evaluate facts from different points of view such as from the customer’s or competitor’s perspective. Furthermore, coalition building is important which most people often-ignored in relation to change processes. Change agents should identify and involve opinion leaders, decision makers on resources, functional experts and other important persons as early as possible in the project-planning phase. The importance of the factor motivation is well described with the phrases transferring ownership to a working team and making everyone a hero. The involvement of the people is important because members of the change team and other employees affected by the change initiative must not feel like as if they are just the tools for change or the subject of change. Every employee needs to know that his contribution to the project is important and is valued. Thus, people will develop a sense of ownership for the project, which, in turn may serve as a major source of motivation when it comes to the inevitable problems and barriers.

Therefore, the effective change agents must be able to effectively promote improved services for persons with co-occurring disorders. The change agent must be knowledgeable and effective in the arenas of mental illness, substance abuse, criminal justice, housing, entitlements and other social and human service issues. The change agent must understand the specific interests and needs of the varied systems involved in the change process and promotes a dialogue that transcends the familiar limitations of categorical thinking and rigid silos that restrict the activities of traditional managers. This is the ability to earn the trust of numerous stakeholders who must collaborate to promote effective change. This trust may be tenuous at times which need the change agent who wins the enthusiastic support of one system may find that other systems have automatically become suspicious of his or her activities (Recklies, 2001).

 

 

IDENTIFY THE PROBLEMS

 

Managing change in an organization is one of the most tedious tasks in relation to organizational management. Therefore, the skills of change agents mentioned from the discussion above would be essential for effective change management. However, despite the presence and use of such excellent skills, a change agent may still encounter a number of problems, which may somehow limit his or her ability to help with an organization’s change management.

 

One of these problems include the perception-type of barriers or problems that limit a wider scope or view of the perceived changes of an organization. This includes stereotypical analysis of the situation, using generalization of changes, and failure to see all sides of the problems or needed changes. Such problems in relation to perception lead to providing solutions or changes that may not target or address the perceived change needed in the organization.

 

Another problem to be encountered involves difficulty in identifying and analyzing the real causes of needed changes in the organization. This is because a wrong problem leads to obtaining wrong solutions or changes, and not all changes proposed or perceived are applicable to all situations in the organization.

 

The failure to identify the strengths and weaknesses of the organization may also present another problem, as the firm would not be able to assess the needed aspects of the organization to be changed. On the other hand, its strengths must also be emphasized in order to highlight and utilize them effectively. The lack of skills and resources can also contribute to the problems of the organization. This is because skills would pertain to the capacities and abilities of individuals to cope up with the needed changes in the organization, while resources pertain to both tangible and intangible assets that fuel or drive the operations of organizations. The lack of such skills and resources would then be a big loss for organizations.

 

Another problem would be the lack of a winning strategy, which would serve to provide the technique and edge for the organization to address changes and other crises. The lack of a winning strategy would mean that an organization lacks the interest or capacity to experiment, as through experiment, an organization would be able to determine the best strategies that suit their processes and operations. Lastly, a problem that significantly influences change management is the resistance to change of the members of the organization.

 

 

IDENTIFY THE CONFLICTS

 

Conflicts in relation to change management and to the roles of change agents pertain to problems that may exist between and among individuals in the organization, and between the employees and the employer of the firm. One of the conflicts possible to be encountered by a change agent is the conflict with the use of leadership style. The leadership style to be used by a company must suit the preferences and needs of its employees.

 

However, it also depends on the preferences and personality of the manager. In this sense, the clash between the leadership style of the manager and the preferences of his or her employees would create significant conflicts. Another conflict in change management is in terms of the management of employees or workers. This involves the type of management to use, assigning the right job for every employee, and motivating the employee using rewards and incentives. Without proper management, conflicts would arise.

 

The next conflict to be determined involves the lack of effective and efficient communication among the employees and between the manager and his or her subordinates. The lack of communication leads to failure in mobilizing and engaging groups of individuals in order to achieve certain set goals and objectives. Another conflict is the clash of interests between the union, if any, and the interests of the management. This leads to the failure in making the whole process of change management meaningful to the employees or workers.

 

A good source of conflict involves cultural barriers, including incidences of discrimination and stratification. In addition, change management would not be successful once traditions or cultures in the organization cannot cope up with the changes needed by the firm. Once the established traditions in the company clash with needed changes, change management would be more difficult. This also involves the use of new technologies that would be perceived by employees as something that would contribute to making their job far more difficult.

 

 

IDENTIFY THE DILEMMAS

 

One of the dilemmas in the management of change as would be proposed by change agents is the lack of support. A lot of employees perceive changes as a threat to their personal status and to their comfort zone. Therefore, one of the dilemmas of the change agent would be the fact that some employees would be stopping or ignoring the proposed changes for the organization. Second dilemma is the lack of the ability of the employees to accept criticism. The lack of ability to accept criticism may hinder employees to trust and thus, gain support from the management. This would also hinder the change agent to facilitate changes, as expressing criticisms regarding the performance of employees would be necessary in order to make changes effective in the organization. The third dilemma would be the lack of good listening skills of managers, thus, hindering good communication to exist between the managers and the employees. Another dilemma is the over-reliance of employees and top management to the structure and systems to the management of change in the organization. Over-reliance to structure would somehow neglect the roles and responsibilities of employees in terms of decision-making and participation.

 

 

IDENTIFY THE TENSIONS IN THE DEVELOPMENT AND USE OF THESE COMPETENCIES

 

In the previous discussions, a number of skills and competencies are said to be needed by a change agent in order to facilitate and come up with an effective management of change. Competencies such as good leadership skills, the ability to develop people, the ability to communicate effectively, to develop interpersonal skills, and to solve problems may all be the best skills that change agents must be able to develop. However, despite the advantages or positive effects that are perceived to yield an effective change management, such competencies or skills can still lead to tensions, such as resistance to change, which can be observed on the part of the employees and the top management. As mentioned earlier, resistance to change is considered one of the problems and source of conflicts of the company. Such skills also lead to the evaluation of the skills and capacities of the employees, which can somehow hinder the management of change to be proposed by the change agent. The lack of such skills can also lead to the laying off employees, which may both damage or enhance the overall performance of the organization. It can also lead to the conflict between the interests and goals of the organization. With such tensions, it can be perceived that the change agent must be able to carefully evaluate and critically assess the needs and the needed changes of the organization before implementing changes in the organization.

 

CONCLUSION

In summary, we should keep in mind that there is no ‘ideal’ change agent. Particular requirements normally relate to the actual situation in the organization such as corporate culture, strategic relevance of the project, acceptance of the project among management and staff, timeframe and resources etc. Depending on these factors, change agents either may need good project management capabilities in order to guarantee timely progress, or they should be good leaders with the ability to motivate people. No organization can institute change if its employees will not or accept the change. No change will work if employees don’t help in the effort. Furthermore, change is not possible without people changing themselves ( 2003).

The Influence of these aspects of management with respect to the Strategic Competitive Advantage may well prove significant in both application and effectivness

 

Chapter 2

Literature Review

 

This review of related literature initially considers key areas of broadly acknowledged theoretical material covering supply chain management and strategic management. The influence of these aspects of management with respect to the Strategic Competitive Advantage may well prove significant in both application and effectiveness.

Basically, Hammer (1992) looks at ‘Outsourcing and the value Chain’. He states:

“One method of reducing costs is to outsource non-core activities. Outsourcing can bring a number of benefits.”

Actually, the topic of outsourcing may help to understand the competitive advantage of the organisation.

On the other hand, competitive analysis “Porter’s five forces”; Porter’s (1998) competitive analysis identifies five fundamental competitive forces that determine the relative attractiveness of an industry: new entrants, bargaining power of buyers, bargaining power of suppliers, substitute products or services, and rivalry among existing competitors. Competitive analysis leads to insight in relationships and dynamics in an industry, and allows a company or business unit to make strategic decisions regarding the best defendable and most economically attractive position.

Apparently, (1990) wrote an award-winning HBR article on the core competence for the future based on the concept of the core competence. They encourage managers to ask themselves such fundamental questions as:

Ø                  What value will we deliver to our customers in, say, 10 years from now?

Ø                  What new ‘competencies’ (a combination of skills and technologies) will we need to develop or obtain to offer that value?

Ø                  What are the implications with regard to how we interact with our customers?

With regards to these management practices issues, the SWOT analysis of any company is all about strategic planning concerning company’s strengths and weaknesses. When combined with an inventory of opportunities and threats in (or even beyond) the company’s external environment, the company is effectively making what is called a SWOT analysis: establishing its current position in the light of its strengths, weaknesses, opportunities and threats.

Moreover, Angel Garment Ltd also considers the value chain as part of its competitive advantage. Michael Porter (1998) believes that it can be understood only by looking at a firm as a whole. Cost advantages and successful differentiation are found in the chain of activities that a firm performs to deliver value to its customers. Further work by Porter on ‘Value chain analysis’ may also help understand the competitive advantage of the organisation. He described the value chain as:

Desegregating a firm into it’s strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation. A firm can gain competitive advantage by performing these strategically important activities more cheaply or better it’s competitors.

Moreover, Syson (1992) examined the barriers to be found in supply chains. He spoke of:

“The interface Model of the traditional supply chain and the Integrated Model of the ideal supply chain, and identifies forces for change which make it important for organisations to move from the former to the latter.”

 He goes on to describe the features of his integrated model including:

“The supply chain as a single entity, integrated at different levels of management – strategic, planning and operational”

            From this discussion, this part of the dissertation divided the categories in several parts.  The said parts assess the Vision Statement, external and internal business process, SWOT analysis will be also described, strategic choices, implementation analysis and evaluation process are also described.

 

2.1 Vision Statement Assessment

 

            In Angel Garments Limited, the main vision of the company is to be competitive with respect to the quality of products they are distributing.  The company is actually engaged in different business practices that may increase the standard of the quality of products. Angel Garments Limited operates in a turbulent and dynamic business environment. The current business environment of Angel Garments Limited is undergoing a metamorphosis as rapid technological innovations, competitive markets, diverse customer preferences, and extensive global operations prevail in it. To ensure continuous operation and survival in today’s rigid business environment, a business firm has to be open to change and improvement. Their business processes, services, products and operations should be consistently subject to evaluation and refinement. The norm is to deliver quality products and services while maintaining flexible and effective operations.

 

2.2 External Assessment

 

            With regards to the external assessment of Angel Garment Limited, the researcher will consider the PEST analysis. A marketing model for analysis that can be utilized in order to analyse the corporate strategy of Angel Garments Limited is the PEST analysis.  PEST Stands for Political, Economic, Sociocultural and technological factors that influence of Angel Garments Limited’s overall performance in the market place.

In addition, PEST analysis is a part of the external analysis when doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. Actually, political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. The economic factors are the economic growth, interest rates, exchange rates and inflation rate. Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. The technological factors also include ecological and environmental aspects and can determine the barriers to entry, minimum efficient production level and influence outsourcing decisions. It looks at elements such as R&D activity, automation, technology incentives and the rate of technological change.

            PEST analysis is very important that an organisation considers its environment before beginning the marketing process (Crainer, S 2002). In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from the following:

Ø      The internal environment like staff or internal customers, office technology, wages and finance.

Ø      The micro-environment such as external customers, agents and distributors, suppliers and competitors.

Ø      The macro-environment such as political including legal forces, economic forces, socio-cultural forces and technological forces.

The acronym PEST or sometimes rearranged as STEP is used to describe a framework for the analysis of these macro-environmental factors (Crainer, 2002). A PEST analysis fits into an overall environmental scan as shown in the following diagram (see Figure 3):

 

 

 

Figure 3. Overall Environmental Scan

 

Figure 4 the graphical explanation of PEST analysis

 

 

 

 

 

 

 

The number of macro-environment factors is virtually unlimited. In practice, the firm must priorities and monitor those factors that influence its industry (Mark ides, 1999). Even so, it may be difficult to forecast future trends with an acceptable level of accuracy. In this regard, the firm may turn to scenario planning techniques to deal with high levels of uncertainty in important macro-environmental variables.

PEST is a nonlinear parameter estimation package with a difference. (Mark ides, 1996:58) The difference is that PEST can be used to estimate parameters for just about any existing computer model, whether or not a user has access to the model's source code. PEST is able to "take control" of a model, running it as many times as it needs to while adjusting its parameters until the discrepancies between selected model outputs and a complementary set of field or laboratory measurements is reduced to a minimum in the weighted least squares sense.

Most parameter estimation packages suffer from two serious drawbacks that inhibit their ability to optimize parameters for the plethora of computer simulation models that are used today in all fields of study (Moncrieff, 1999) The first of these difficulties is that a model normally needs to be partially recoded in order to communicate with an estimation program; this usually involves recasting the model as a subroutine which is then called by the estimator each time it needs to run the model. The second disadvantage is that the performance of many commercial and public-domain estimators is seriously degraded when optimizing parameters for large numerical models or for the sometimes complex models used for simulating "messy" environmental processes.

PEST overcomes the first of these difficulties by communicating with a model through the model's own input and output files (Mischief, 1999). Thus PEST adapts to the model; the model does not need to be adapted to PEST. It overcomes the second problem by implementing a particularly robust variant of the Gauss-Marquardt-Liebenberg method of nonlinear parameter estimation. Furthermore, through adjustment of a number of control variables, a user is able to "tune" PEST's implementation of the method to suit the model for which parameters are sought.

Because PEST is model-independent, the "model" can, in fact, be a series of models which PEST runs in succession through a batch file; PEST can estimate parameters for one or all of the models simultaneously (Moncrieff, 1999). Thus, a first model can provide input data for a second model; a single model can be calibrated against a number of different historical datasets all at once; a preprocessor can be run, followed by the model, followed by a postprocessor; the possibilities are endless.

 

2.3 Internal Assessment

2.4 SWOT analysis (Long-term Objective)

2.5 Strategic Choices

 

Strategy is now a common business word, and is probably the most used and abused term in the business world, but it was not originally used in a business sense. It was first used in popular English literature sometime before 1050. The Greek origin of the word `strategy' is `strategies', which means ‘general’, and in the Byzantine Empire the term was also used in the to describe a military governor (Dai, 1996, p. 54). It is argued by many authors in strategic studies that the concept of strategy is an analogy of or originated from the classical as well as modern military art (James, Mintzberg & Quinn, 1991). Although strategies have been used throughout the history of commerce and industry, the study of strategy as an academic subject did not receive serious attention until the 1960’s (Dai, 1996, p. 14). Nowadays, it is used in the business field with unsurprising familiarity, from the more specific areas of management, finance and, in the context of this paper, marketing. The strategy literature is diverse. Scholars and practitioners have different frameworks for the concept and some do not even agree on a single definition. It is therefore only proper to present as much meaning as possible to acquaint oneself with the various interpretations of strategy.

            If the concept is boiled down to its essence, businessmen and entrepreneurs can gain the clearest insight on how thinking strategically can benefit the business venture. There are quite a number of traditional views regarding strategy. According to Porter (1986), strategy is ‘about being different’ and ‘it means deliberately choosing a different set of activities to deliver a unique mix of value’. Porter argues that strategy is about competitive position, about differentiating yourself in the eyes of the customer, about adding value through a mix of activities different from those used by competitors. Sidorowicz (2000) gave several definitions, and the following is one of them: ‘Strategy as a definition of the economic and non-economic contribution the organisation intends to make to its stakeholders, where sustained profitability is the legitimate and deserved reward of a job well done’.  briefly defined strategy as the framework which guides those choices that determine the nature and direction of an organisation. Kenneth Andrews (1980), meanwhile, presents a lengthy definition of the word:

‘Corporate strategy is the pattern [italics added] of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organisation it is or intends to be, and the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers, and communities (pp.18-19).’

            (2000) succinctly gave this meaning of the word: Strategy is all these—it is perspective, position, plan, and pattern. Strategy is the bridge between policy or high-order goals on the one hand and tactics or concrete actions on the other. Strategy and tactics together straddle the gap between ends and means. In short, strategy is a term that refers to a complex web of thoughts, ideas, insights, experiences, goals, expertise, memories, perceptions, and expectations that provides general guidance for specific actions in pursuit of particular ends. Strategy is at once the course we chart, the journey we imagine and, at the same time, it is the course we steer, the trip we actually make. Even when we are embarking on a voyage of discovery, with no particular destination in mind, the voyage has a purpose, an outcome, an end to be kept in view. Given the wealth of literature on the concept, it is hard to come up with a final, unambiguous definition of strategy. Simply, there is no one absolutely correct meaning of the word, that strategy is a broad, ambiguous topic. Each individual, depending on the need, must come to one’s own understanding, definition, and meaning of this diverse term.

If studies on strategy are in profusion, one would be surprised at the doubly large number of studies done on strategic planning. The reason behind this is that there has been acceptance in the business circle that strategic planning, indeed, is the place to start if one wants to go from one point of origin to somewhere. The term has become a catchy buzzword with obvious benefits, less obvious pitfalls, and a variety of meanings. The aura of complexity, importance, and expense it has assumed through popularization might have confused or discourage business people from adopting it into practice but it is now apparent that this is not the case.

Goodstein, Nolan & Pfeiffer (1993) defined the term as ‘the process by which the guiding members of an organisation envision its future and develop the necessary procedures and operations necessary to achieve that future’ (p. 3). Steiner summarized his meaning of the word in one sentence: ‘Strategic planning is a backbone to support the strategic management’ (p. 4). Bryson (as cited in Alston & Bryson, 2005), defined strategic planning as ‘a disciplined effort to produce fundamental decisions and actions that an organisation (or other entity) is, what it does, and why it does it (p. 3). Cook (2000) gave this meaning of the word: ‘is the technique by which all variables are synthesized and the means by which all energies are dedicated to one real intent. Understanding and commitment are set forth in a plan that is, in effect, both stimulus and expedient’ (p. 4). In the words of Andreas Raps, ‘a well-formulated strategy can only generate a sustainable added value for the company if it is implemented successfully, so regardless of the intrinsic merit of a particular strategy, it can't succeed if an effective implementation procedure is missing’ (2004). Alignment of strategic plan throughout the business could also contribute to the success.

Mercer (1991) said that the main purpose of strategic planning is to provide management with a framework in which decisions can be made which will have an impact on the organisation. A conscious effort to systematize the effort and to manage its evolution is preferable to an unmanaged and haphazard evolution. Goodstein, Nolan & Pfeiffer defined the word as ‘the process by which the guiding members of an organisation envision its future and develop the necessary procedures and operations to achieve that future’ (p. 1). Mercer claimed that strategic thinking entails operational (tactical) planning - the planning of those actions to be taken to put strategies into effect. This type of planning answers the question of how to get the job done. It often consists of specific objectives accompanied by short narrative action plans.

Below is an illustration of the evolution of strategic planning in the private sector (Mercer, 1991, p. 19):

1950's

Early 1960's

Late 1960's
U+0026 1970's

1980's

GENERAL
MANAGEMENT

PROFIT
PLANNING

BUSINESS

PLANNING

STRATEGIC

MANAGEMENT

Business
Survey

Business
Assessment

Business
Assessment

Business
Assessment

Management
Audit

Company
Performance

Company
performance

Environmental
Intelligence

Organizational Studies

 

Future
environment

Corporate
Strategic Plan

 

Profit Plan
Objectives

Stake holder’s
expectations

 

 

Forecasts
Plans

Strategic
Plan

Division
Strategic Plans

 

 

Mission Objectives

Organisation
Effectiveness

 

 

Product/Market
Strategy
Resource
allocation

Operational
Plans

 

 

Operational
Plans

 

Performance
Standards

 

 

Annual Plans
& Controls

 

Budgeting
& Control

Annual Plans
& Controls

 

Budgetary
Control

 

Budgets
MOB
Control Systems

 

 

(2006) asserted that the word is focused on reaching specific, well-defined goals designed to benefit the organisation as a whole. He said that it is possible to have a number of long-range goals and plans that are quite independent of one another and in fact lead in different directions. Strategic planning is a means of making some very fundamental decisions and charting a course so that short- and long-range planning is more efficiently focused and integrated. The organisation, in the course of strategic planning, must: (1) identify and/or clarify organisational values; (2) develop CEO of vision statement; (3) conduct internal assessment by examining the mission and values statement and composing a list of strengths and weaknesses of organisation; (4) conduct external assessment by composing a list of challenges, obstacles, opportunities and niches; (5) determine what business organisation is in or wants to be in; (6) determine key result areas in which goals will be set; (7) set goals in key result area by developing a consensus on goals and relating it to vision and values; (8) set strategies regarding goals; (9) determine tactics as to how to achieve strategies; and finally; (10) assign accountabilities (O’Neil, 2001). Mercer (1991) said that effective strategic plans include six key elements: (1) an environmental scan (situation analysis, strengths, weaknesses, opportunities, threats--SWOT--analysis, or size-up) including an examination of both external and internal factors; (2) a mission statement which defines the fundamental purpose of the organisation and its boundaries; (3) a set of strategies indicating what will be done to carry out the mission; (4) objectives for each strategy; (5) tactics or short-term operating plans for meeting objectives; and (6) controls, measures, and evaluation steps to determine how well the strategic plan is progressing.

Supposing of a Multinational Corporation I Would employ a Launch in a proactive way

Assignment 1

            Supposing I was chosen to be the new manager of a multinational corporation, I would employ a “launch” in a proactive way. Prior to engaging in a company wide Six Sigma, I would first engage in sampling Six Sigma practices in an independent team within the organization. If this idea will be permitted by the top management and succeeded, then I would bring it to a broader framework, the whole company. Within the team, I will assess individual and team preparedness regarding the change. For example, I will do this through formal observations and in-depth interviews.

I will use the same process I applied in the experimental team. I would inform all organizational members of the coming changes. This can be done through formal meetings with department heads then with each department heads and their members. Technology could play a significant role in this process. For example, there are collaborative softwares already available in the market. Through these softwares, I could create a virtual forum exclusive for the employees so that I can acquire information regarding their perceptions on the coming changes and solicit suggestions. Resistance will be anticipated.

Developing a strong rationale is not an easy task as it seems to be since you have to find reasons why the firm must engage in Six Sigma. From a personal standpoint, I would do a MOST analysis first. MOST stands for Mission, Objectives, Strategies and Tactics. I could pinpoint what specific aspects should be retain and need improvement. I could also create new stratagem base on this. At this point, I could develop a Critical to Quality (CTQ) assessments of attributes. Evaluation will be made using a top-to-bottom approach (Heuvel, et al, 2006).

The next thing I would do is to plan. Structured planning must involve a general to specific approach. My plan would encompass indicators of the firm’s capabilities – physically, financially and organizationally. Physically means inclusion of the specific resources the Six Sigma implementation would require. Financially refers to the budget. And organizationally means the people. At this point, prioritization will be the key.

My participation is crucial in the subsequent stage. As a manager, I must be present at all points of implementation at all times. However, the challenge preceding the implementation is marketing the plan within the organization. The pre-implementation stage necessitates the task to create a vision and market change within the company. The theme I will create will mirror the totality of the Six Sigma effort. In making the people speak the same language as I do, I would lay down realistic expectations about Six Sigma. Again, resistance will be anticipated.

In so doing, I will utilize the find more, win more and keep more strategy. Find more is a strategy to clearly define the market, identify profitable opportunities for the people and determining targets. Win more is a strategy to build awareness, creating an environment of employee buy-ins and covering the whole area where Six Sigma must be marketed. Keep more is the strategy to serve and support, capture full, reasonable value and expanding the concept to the people whom are resenting the change.

Becoming powerful advocates of Six Sigma, as a manager, I will walk the talk and talk the talk. Six Sigma must become the language of the company. In particular, I could integrate Six Sigma concepts in meetings and even in impromptu discussions with staff and line personnel. I will find opportunities in motivating employees to use Six Sigma in meetings, speeches, reviews and hiring. In addition, I will develop key communication metrics so that information's regarding Six Sigma will be clarified on all corners of the company. I will also develop employee-focused dashboards to track progress (Keller, 2005).

In addition, I will select and train a deployment team and develop a human resource strategy to retain Black Belts and motivate middle management to support and contribute to the Six Sigma program (Ibid.). This purports the next step – clarifying objectives. Objectives must be challenging, reasonable and realistic. Data mining and benchmarking are the priorities. In data mining, I could discover opportunities that may lead to creating specific, obtainable objectives. Benchmarking is the same. Both could provide a wealth of ideas for defining the direction of Six Sigma implementation that is within the scope and budget.

I understand that Six Sigma is not of continuous success, there are failed Six Sigma programs. To avoid pitfalls, I will require a continuous flow of information. Constant feed backing will be a topmost concern. I will develop a separate checklist in this area consisting of all stakeholders’ – customers, employees, shareholders – views and recommendations.    

Solid measures of results will be evidenced by Six Sigma quality performance indicators. Such indicators will be measured and assessed quarterly through statistical techniques. For example, I will deploy a Quality Function Deployment (QFD) and/or Pareto analysis. It will be reported so that the people will be informed not only the gains but also the downsides of the Six Sigma implementation. The information that I will provide will include honest comparisons of perceived and actual Six Sigma performance.  Communication lines will be kept open specially the virtual forums.  

Assignment 2

The model Thompson developed is a descriptive-prescriptive framework that contains the elements of team context that purports on the overall team performance. The basis of achieving team performance is the three essential conditions as performing effectively, building and sustaining motivation and coordinating people. The context of the team refers to internal processes and external constraints and opportunities that are perceived to be instruments towards achieving productivity, team satisfaction, individual growth and organizational gains. The conditions that Thompson relates reflect the causality of existing facilities inherent to the organization like the ability, motivation and strategies and how it can deliver success or failure base on utilization of organizational context and team design and culture.

The model creates leeway of looking at enhancing the functioning of teams based on three critical points which spring from the organization and the team and not from the traditional hierarchical structure. The main quality of the model focuses on covering the three areas cognitive –recognizing the need to bring together adequate knowledge and skill to carry-out tasks; affection – being aware that exerting sufficient motivation and effort could facilitate accomplishing the task to an acceptable level of performance and psychomotor – knowing that activities and communication and the importance of coordinating them as vital factors in accomplishing tasks in an efficient and productive manner.

The significance of the model is evident in increasing the success rate of the organization from four fundamental levels. The learning's that the model suggests are as follows: for team productivity, the model proposes the clarifications of the goals and the possibility to reassess goals, how the organization measures performance and team output versus standards; for team satisfaction, the model underpins supportive working environment and the barriers that led to feelings of resentment, team learning and accommodating changes; for individual growth, the model implies the importance of individual contribution as team members, improving skills, the hindrances of achieving growth and making others understand the idea of individual growth needs; and for organizational gains, the model advocates how the team benefit the organization or how the team contribute to the organizational growth, the consistency of team goals and the subsequent integration with other units.  

Effective Leaders are Discribed as having four distinctive characteristics eminent to thier groups

Role of Effective Leadership

Effective leaders are described as having four distinctive characteristics eminent to their groups; namely, they provide direction and meaning to people, they generate trust, they prefer risk-taking and they are source of hope (Howard, 2005, pp. 384+).  These are merely behavioral references available to leaders but it is concluded that choosing a leadership style depends on personal characteristics or predisposed genetic make-up of a person (Fiedler, 1967).  In effect, the impact of external stimuli (e.g. graduate class education, series of workshops, peer pressure) could be an inefficient way to change leadership behavior.

 

            However, the choice of a specific or preference of holistic approach to leadership style can be undermined by admitting that the true measure of effective leadership style is based on the sum of individual results for leader’s goals, member’s aims and achievement of organizational objectives (Howard, 2005, pp. 384+).  Due to the conflict of interests among these individualities, it induces the application of discipline and grievance that both leaders and members can use if their respective desires received too much repression (Sims, 2001; Duane, 1993).  But these two procedures can only contribute to questioning the appropriate leadership style for the group. 

 

            In the corporate arena, the incidence of groupings apart from more general departmental divisions (e.g. project-based groupings) is a core aspect of project planning and execution (Burke, 2003).  Project-based groups foster the combination of different skills, ideas and attitudes that makes creation of the project more far-reaching, adaptive and formidable.  A global hearing aid manufacturing firm, Oticon, used this particular grouping strategy for its human resources that are popularized by tagging its structure, spaghetti organization (Adam-Smith & Peacock, 1994). 

 

            In simple terms, spaghetti set-up makes employee’s job description very flexible.  Their function is not static and based on the load of projects the company is currently managing.  They can work at home, be a member of the project team and even be the project leader (Adam-Smith & Peacock, 1994).  To monitor their performance, there is a secretariat and manager that assure that every employee does not rest for a long time without a project and their promotion lies in their contribution to projects.  Such projects are related to product development, market research and pilot testing of developed products.  Involvement in a certain project can be initiated by an employee or can be bargain by the project leader.  There is no coercion from the project leader but the motivation to join is the employee audit that assures every employee has something to do.  Project leaders are sometimes selected by higher managers and also can be the employee who proposed the project.

 

Role of Effective Communication

            Non-verbal communication is behaviors that serve as substitute or complimentary to verbal communications and is considered the extreme type of communication that forms the large share of the process.  It has three basic functions in a communication such as identity management, definition of relationship and representative of feelings or emotions.  Some examples of non-verbal communications are body motions, touch, eye contact, intonation and fashion (Darn 2005).  Due to its implicit nature, although relevant, non-verbal communication posts limitations such as different responses from individuals and distortion from cultural norms (Hartman).   

 

In the case, non-verbal communication is exemplified by vocalics, kinesics, chronemics, expression, silence and proxemics (Darn 2005).  In simpler terms, it is represented by tone and speed of concluding the call, snapping shut the phone, pausing when the staff stared at her, smiles when invited to join the staff, stillness after the invitation and spatial separation that results in such refusal.  On the other part, of there is oculesics (e.g. eye contact after the call) and silence (e.g. after the call and after the refusal from invitation).      

 

In the invitation event, a person had released mixed messages such as the negative response is for the entire staff and person instead of person and the other person in isolation or the failure of the department to obtain their sales quotas.  In addition, the refusal of the invitation and showing the shutting of the phone with accompanied stare to staffs can mean personal temper.  Mixed message is also present in the e-mail event, where person’s comments on reducing coffee break between person and the other person would mean that person must withdraw personal intentions with other person to regain boost in sales performance.  On the part of person, mixed message is wrapped when he invited in the room person as it may mean that he is hiding something about him and the other person.  The staff also implied mixed message when they starred to person after the phone conversation such as invading of privacy.  

 

Figure 1: Graph Showing the Effect of Non-Verbal Communication.

 Non-verbal communication is positively related to mixed messages.  As they emerge more frequently and used heavily in communication, the probability of mixed messages as outcome increases that can dissolve the real message of the sender.  Therefore, the actors in communication must minimize non-verbal communication to be able to succeed in their respective messages.  The communicators must also note that when little non-verbal communication is applied, there is a need to increase the verbal communication in replace of the former.  This is because the lost of non-verbal communication limits the components communicators can use in interaction thus verbal messages is crucial.        

 

Role of Mentoring and Coaching

Human resource management is not an easy task because it perceives an organization in holistic manner.  From recruitment to termination, incentives to penalties, productivity to inefficiency, growth and downsizing, human resource management plays a crucial role directly or indirectly.  Simply put, this phenomenon is possible because its responsibility revolves around people. May the issues are personal or professional in nature as long as they affect employee’s performance at work, its interference is required especially when the organization places emphasis on human resource’s part to obtain corporate objectives.

 

Since no organization is alike, same is the situation in human resources management landscape.  Even there were written, proven and based-from-experience theories and beliefs on how to handle employees for the benefit of the company, each are under varying conditions and corporate values.  Because of this, human resources personnel tend to have general approach to these available strategies while final decisions are subjective and contingent.  Also, the emergence of sudden organizational change, internal problems and other external junctures that caught an organization unprepared result to puzzled human resources decisions.  This includes wage increase behind annual net loss, employee benefits under inefficiency brought by machine breakdown or expansion in face of corporate tax increase.  Such incidents leave the HR personnel torn between corporate constraints and employee welfare.

 

HR role in compensation schemes and career development are crucial factors in employee motivation for optimum performance because these affect their present and future status and undertakings.  An employee who feels that the company is providing just wages or issue appropriate performance-based benefits will manifest work satisfaction.  On the other hand, when he is not afraid to loose job and a persistent hard-worker because of ample knowledge gained from relevant trainings and provision of clear career paths, he will exemplify work excellence.  

 

Every organization wants to have a pool of human resources that can create sustainable competitive advantage.  According to Barney (1991), an organization aiming to achieve this should have a certain resource, in this case human capital, which can create value for the firm.  It must also be rare, inimitable and non-substitutable (cited in Wright 2001).  Since human resources are not only proven to be the most important company resource but also the most complex in terms of making it act for the achievement of corporate objectives, HRM is responsible to keep motivation among employees within the context of corporate culture, employee characteristics and other outside factors.

 

Human resource management is not an easy task because it perceives an organization in holistic manner.  From recruitment to termination, incentives to penalties, productivity to inefficiency, growth and downsizing, human resource management plays a crucial role directly or indirectly.  Simply put, this phenomenon is possible because its responsibility revolves around people. May the issues are personal or professional in nature as long as they affect employee’s performance at work, its interference is required especially when the organization places emphasis on human resource’s part to obtain corporate objectives.

 

Since no organization is alike, same is the situation in human resources management landscape.  Even there were written, proven and based-from-experience theories and beliefs on how to handle employees for the benefit of the company, each are under varying conditions and corporate values.  Because of this, human resources personnel tend to have general approach to these available strategies while final decisions are subjective and contingent.  Also, the emergence of sudden organizational change, internal problems and other external junctures that caught an organization unprepared result to puzzled human resources decisions.  This includes wage increase behind annual net loss, employee benefits under inefficiency brought by machine breakdown or expansion in face of corporate tax increase.  Such incidents leave the HR personnel torn between corporate constraints and employee welfare.

 

HR role in compensation schemes and career development are crucial factors in employee motivation for optimum performance because these affect their present and future status and undertakings.  An employee who feels that the company is providing just wages or issue appropriate performance-based benefits will manifest work satisfaction.  On the other hand, when he is not afraid to loose job and a persistent hard-worker because of ample knowledge gained from relevant trainings and provision of clear career paths, he will exemplify work excellence.  

 

Every organization wants to have a pool of human resources that can create sustainable competitive advantage.  According to Barney (1991), an organization aiming to achieve this should have a certain resource, in this case human capital, which can create value for the firm.  It must also be rare, inimitable and non-substitutable (cited in Wright 2001).  Since human resources are not only proven to be the most important company resource but also the most complex in terms of making it act for the achievement of corporate objectives, HRM is responsible to keep motivation among employees within the context of corporate culture, employee characteristics and other outside factors.

Biofuels as a Replacement for Fossil Fuels

Biofuels as a Replacement for Fossil Fuels

 

Exploratory Draft

 

  • What is the problem? Why is it a problem? Who is harmed by this problem?

 

The characteristics of today’s generation include a number of advancements and improvements in terms of science, technology, electronics, and communication. This is given evidence by the use of different forms of media and electronics, such as through the World Wide Web and through sophisticated models of cellular phones and personal computers. Aside from such features, today’s generation is also characterized by changed moral values, behaviors, attitudes, and knowledge, which involves a number of ingenious ideas that would be said to propel the world towards innovation and further development. With such characteristics, one of the most relevant questions to ask is whether the world’s resources would be enough to supply for the different processes, needs, and innovations taking place in the world today. Posing this question would lead to thinking about the use of fossil fuels and biofuels, being sources of energy for the new millennium.

 

There are a number of ecological and environmental problems being suffered by Mother Nature in the world today. This is because the different features mentioned earlier serves to deplete most of the world’s environmental resources. Aside from the depletion of natural sources, including our sources of energy, another problem to think about is the increasing waste products that cannot be reprocessed, thus, contributing to the world’s destruction. To answer such situations, the question, whether biofuels can replace fossil fuels is relevant, being significantly depleted from the world’s sources and being able to contribute to the destruction of the environment.

 

The problem distinguished is the assumption that the use of biofuels can replace what the use of fossil fuels can do for the society. A number of claims have stated and emphasized that the use of biofuels can lessen the negative effects that the use of fossil fuels can make. Thus, in this sense, it can be perceived that the problem to be encountered in the process would involve the negative effects that biofuels can make in terms of its replacement over fossil fuels. This serves to be the problem as the use of biofuel may not seem as safe as claims to be due to a number of factors. Replacing fossil fuels would a future problem because producing them would involve high costs in terms of production, while only supplying less amounts of energy. It would present increased environmental problems, as the increase in the production of crops for producing biofuels would compete with the production of crops for human and animal consumption. The increase in the researches and studies for proving the efficacy of biofuels entails increased spending, which should have been allotted for more needed projects for the improvement of society. Using biofuels would lead to deforestation, as more trees and plants would be burned in order to produce more for human consumption. Increase in deforestation would lead to more natural disasters, thus, causing lives and destruction of lands and properties. From such effects, it can be distinguished that humans, animals, the environment, the different industries, and the whole planet itself would be affected and entirely harmed. Although it can be seen that its use would lessen the negative effects brought about by the use of fossil fuels, it can be foreseen that the increased use of biofuels would practically lead to the same fate. Thus, from such effects, it can be argued that biofuels cannot entirely replace what fossil fuels can do.

 

  • What are the most important causes of the problem? Who is to blame? What have they done, or failed to do, to create the situation?

 

It has already been mentioned that today’s generation needs more resources in order to propel different industries and processes that would help sustain the lives and ways of life of human beings. However, its continued use led to the continued decrease of the sources of fossil fuels, which prompts many researchers and scientists to find new sources of energy that would compensate to the decrease of sources, and with which could equate or surpass the benefits of the use of fossil fuels. From this, it can be argued that the source of the idea of using biofuels to replace fossil fuels comes from the fact that fossil fuels are starting to be significantly decreased and depleted in some parts of the world. Fossil fuels, such as coal, petroleum, crude oil, and gasoline are being dug and produced naturally by some countries, which now sell them to other nations in order to make profits. The amount of fossil fuels being sold to different countries now serves to be the basis for the success or failure of the World Market and economy. Another cause of the problem is the fact that the increased use of fossil fuels creates too much environmental problems, such as the destruction of the Ozone Layer. Burning of too much fossil fuel produces more carbon dioxide in the atmosphere, thus, contributing to the thinning of the Ozone Layer, giving way to greenhouse effect and causing skin cancers and other UV-related diseases. In addition, another cause of the problem is because the burning of too much fossil fuel produces other pollutants in the atmosphere, land, and water, which can be detrimental to the health of living organisms. Lastly, the problem was rooted to the fact that fossil fuels cannot be replaced, thus, its continued use would mean continued depletion from its natural source. Thus, without alternative sources of energy, every industry and processes in every nation would be halted, therefore, halting growth and development.

 

Such causes can somehow be blamed with how human beings use fossil fuels. Because fossil fuels propel the growth and development of industries and practically, our lives, its use is inevitable. However, its abuse and overuse can be blamed to the manufacturing industries and to those greedy business enthusiasts, who hold the distribution of fossil fuels to be able to put a high price over them for increased profit. Such causes can also be blamed to the waste of fossil fuels, and instead of conserving them, wasting them remains to be an option for other individuals, knowing that they are widely available. Lastly, such causes can also be blamed to the delay of coming up with alternative sources of energy, thus, waiting for fossil fuels to become depleted before coming up with good ideas and solutions.

 

  • What do you think should be done to address the problem? How would this help? What different solutions might others propose, and why do you think your idea is better?

 

Sticking to the idea that biofuels can replace the use of fossil fuels means that unique and helpful ideas must be generated. This is due to the fact that using biofuels would mean giving Mother Nature the chance to heal its wounds and replace depleted sources to be able to be harvested by living organisms. This is because using biofuels and giving it a chance to be utilized would provide alternative sources of energy for human consumption, which can be deemed less destructive. As such, a good proposal and research can be done in order to present ideas and suggestions for the utilization and maximization of biofuels.

 

I believe that using human wastes from sewage and carbon sources from landfills would be the best source of biofuels. Aside from contributing as an effective strategy in waste management in both urban and rural areas, using human wastes from sewers and carbon emissions from landfills would serve as huge sources for biofuels. Human wastes, including animal wastes can be burned for biofuel production, as wastes cannot be depleted. Aside from organic wastes, carbon emission from landfills or from dumpsites can also be used, thus, helping to reduce the amount of toxic substances to be inhaled and taken up in living systems. The use of human wastes and carbon emissions is not of any questionable stance, as such sources have already been used to produce biofuels. However, the question here is where to get huge amount of sources of human wastes and landfill emissions. The answer to this question is to get the sources from different developing or Third World countries. It is known to many individuals that many developing countries suffer from huge amounts of wastes, which cannot be recycled and disposed due to limited resources, funds, and other factors. In this sense, using such waste products as a source for producing biofuels would therefore be a good solution for reducing wastes in developing countries. In essence, this solution is an approach of “hitting two birds with one stone”, thus, could be a good strategy in producing biofuels.

 

In line with this proposed solution are other solutions that can be already read and discussed in different sources of information, such as journals, books, magazines, and the Internet. Such solutions include the use of biomass, such as plants, wood, wastes and by-products, in order to produce both First Generation and Second Generation biofuels. Such sources include methane, ethanol, butanol, and other organic compounds. However, I believe that my idea is better because the use of human wastes and landfill emissions would also be helpful for the developing countries. Unlike the proposed solutions of other researchers, they would be using edible and consumable parts of plants, which would help contribute to production-consumption competition. Aside from the use of human and animal wastes as fertilizer, its second major use is for the production of biofuels. Thus, in this sense, my idea would generate less wastage in terms of consumable and edible products that can be used in human consumption.

 

  • What are the possible costs or drawbacks of your proposal?

 

Despite the advantages being mentioned in the above discussion, a number of drawbacks or costs entail the use of human wastes and landfill emissions from developing countries. Primarily, obtaining the huge amounts of human wastes from sewers and landfill emissions from dumpsites in developing countries would be costly, messy, and tedious. Sophisticated equipments and processes must be developed in order to ensure that human wastes and landfill emissions would be a source of contamination of bodies of water, land, and human dwellings in order to prevent breakout of diseases and infections. In addition, extracting it would mean that huge vessels are needed in order to ensure that large amounts of it can be transferred for efficient processing and biofuel production. However, production of sophisticated equipments and vessels and developing appropriate techniques and processes for this solution would be significantly expensive, thus, taking a number of years before it could happen.

 

Another drawback for this proposed solution is that developing countries do not have biofuel plants, which can immediately processes the waste products. This would mean that the huge amounts of waste products would have to be transferred to any country that would be able to process the waste products into biofuel. However, this would entail a long time travel, as huge amounts of waste products would mean huge vessels for traveling by sea. Thus, in this sense, traveling would indicate increased risk for accidents that would somehow delay the process and increased risk for contamination. The third drawback would be in relation to the use of landfill emissions. The transfer of landfill emissions from the dumpsite to its destination would have lessened the amount of emissions to be used in the process. This would then be a significant source of wastage because by the time the wastes have reached the biofuel facility, the only remains of the vessel would only be the source of emissions. In this regard, invention and production of the vessel and equipments must therefore suit the need for compressing or holding the emissions in place.

 

Last drawback of the proposed solution is lessening the costs of countries with biofuel plants or facilities from transporting the waste products from the host country to their own country. Such costs would be lessened if the host country would decide to put a biofuel facility or plant on their own. However, setting up such a facility entails good deal of costs, as given by the fact that only a few countries has it. Given the poverty, lack of education facilities, national hunger, and other social issues that must be prioritized by developing nations, putting up a biofuel facility or plant would not an option.

 

  • Who might object to your proposal? Who might object to any of your answers to any of the preceding questions? Why might they object?

 

Given the different drawbacks of the proposed solution, it can also be presumed that a number of individuals or groups of individuals would be objecting to the proposal. Primarily, the individuals involved in the process of extracting and transporting the waste products from one country to another would be objecting to the proposed solution. Such individuals involve the governments from the host country and from the country, which has the biofuel facility. They would be objecting to the proposed solution, as they would be burdened with the costs of the whole process. Second, given the opportunity that waste products would be the trend in producing biofuels, the producers of the other sources of biofuels would be enraged. This is due to the fact that such producers make money or a living out of their produce, and because their sales have decreased, they would be objecting to the whole idea. Lastly, the researchers and scientists would somehow object to the proposed solution, as they would also find the solution to be expensive and impossible to achieve. However, no one would know when this proposed solution would be useful in the future. Nevertheless, the fact that this proposed solution had been thought upon means that someone took the time to provide a possible answer to some of the most bothering problems of the society.

 

As indicated, the reasons that might make such individuals object to the proposed solution would include the high costs involved, their personal gain or motives, the lack of research and facilities regarding the efficacy and effectiveness of the proposed solution, the lack of acceptance of new ideas, and the lack of exploration of new possibilities.

November 24, 2008

THE COMPANY WITH A CHANGE MANAGEMENT PROGRAMME AS THEY ENGAGE IN AN UPGRADE IN THE EQUIPMENT THEY ARE USING IN THEIR OPERATIONS

I.        Introduction

As the old adage goes, change is inevitable. Though change is often seen as a daunting challenge for any organization, it is needed to induce organisational development initiatives. Consequently, the proper management of this process of change will ensure a higher probability of success for the organisation. This report intends to provide the company with a change management programme as they engage in an upgrade in the equipment that they are using in their operations. Basically, this need for change is prompted by the rapid changes as well as the intensification of the demands of the external environment. To a certain degree, this intent for an equipment upgrade could generally hamper the operations of the organisation given that the major machineries form a great part of the company’s output. The discussions, arguments, observations, and recommendations provided in this report are based on researched articles from change management literature. In the same regard, appropriate models and concepts will also be provided as the report develops.

II.      Background of the Company

The company under consideration, CBT Inc, is predominantly a manufacturing company that similarly operates its own marketing and distribution programmes. It focuses on consumer products and distributes it in the local market. Basically, the author of this report is employed in this organisation. To deal with the demands of efficiency, the company has decided to carry out equipment upgrades in their operations.

III.    Prescription for change

In this part of the report, the intention of the company is inducing change within the organisation is described. In the following parts, the objectives of the change management programme will be highlighted along with the rationale for each section.  

A.    Vision for renewed organization

The vision of the organisation serves as the guiding light to determine whether the company is on the right path in realising its goals. However, the changes in the external environment have considerably been highly influential in the common organisation. Recent trends on efficiency in production have triggered the company to take on change initiatives to be operating at par with the rest of the players in the industry.  

In this regard, a renewed organisation could only be achieved with a consequent change in the vision of the company. To this end, the organisation must realise that a shift to a higher level of competitiveness is in order for the company to address the recurring need to develop and acquire a much larger market share.  The acquisition of new machineries as well as the software that complements the said additions to the company will be able to assist greatly on realising this vision of a renewed organisation. Specifically, the organisation intends to:

·         Improve the quality and productivity of the organisation.

·         Create a culture of competence and excellence.

·         Minimise resistance from the workforce through inducing participation and encouraging communication.

·         Determine the leadership style appropriate for the company.

B.    Direction and Scope of change

In order to realise these objectives, the company have to start by innovation and working outside the established and usual processes which the organisation is accustomed to, unfreeze inertia so to speak. However, before doing that, the managers of CBT Inc should first establish what part of the processes that require changing. In this scenario, the quality and productivity of the company is the primary concern for instituting change.  

For this report, the improvement of learning and other operational developments in the organisation is recommended. This company obviously intends to amend that and acquire continuous development in their operations by increasing the efficiency without compromising the quality of their products. For the purposes of this report, the lean manufacturing scheme presented in Toyota will be consulted to see whether it fits CBT Inc’s processes. (Klier 1999, 18) However, with any development in organisations, there is the distinct requirement of education and training for both the employee and the mangers of the company. (Nadhi 2006, 14) In this regard, this report consulted the case of Ducati Motor Holdings in their effective implementation of knowledge management initiatives in their operations. (Lerro and Schiuma, 2005, 578)

 

C.    Speed of Change

Another important element that should be considered in this change management programme is the timing and speed of the specific milestones in the change process. More specifically, certain courses of action and particular areas to change should perfectly coincide with the capacity of the firm to adapt. To make the programme more manageable, the process of change is divided into two areas: intangible and tangible assets.

In the context of intangible assets, the process of learning of the system required of the employees and managers is included. Therefore, training and other learning activities will be included in this part of the change process. In addition, this will incur an incremental form of change so as to ensure optimal learning and retention will be achieved from the employees. It is at this category that the theoretical foundations of the change process are given initially to the managers. Consequently, it is these managers that will educate their respective teams on the required processes involved. It is in this part of the process where the culture of competition is also introduced to the employees.

On the other hand, the tangible change is characterised by the change in the equipment and machineries used in the operations of the firm. It is here where the practical part of the change process takes place. All the learning and training that the managers and employees acquired during the preliminary phase of the change process is applied in this particular portion. Unlike the intangible assets, the change in this area is transformational.

 

IV.   Proposed Action

The following part of this report will provide a detailed account on the realisation of the specified objectives above. More specifically, a discussion on the management of change, organisational structure, organisational culture, and managing resistance of the workface is going to be given in this part.  

A.    Leveraging Change

 

B.    Renewing System and Structure

 

C.    Tailoring Culture

 

D.    Overcoming Resistance

 

E.     Leadership of Change

 

F.     Communicating Change

 

V.     Conclusion

 

VI.   References

 

 

BARRIERS OF ORGANIZATIONAL INNOVATION MANAGEMENT IN CHINA

Barriers of Organizational Innovation Management in China

 

Chapter 2

Literature Review

 

2.1 Introduction of Organizational Innovation (OI)

            It has been emphasized that organizational creation is fundamental to the process of innovation, which then constitutes part of the system that produces it. The ability and capacity of an organization to innovate is a precondition for the successful utilization of inventive resources and new technologies. Thus, in this sense, the introduction of new technologies often presents complex opportunities and challenges for organizations, leading to changes in managerial practices and the emergence of new organizational forms. Therefore, organizational and technological innovations are intertwined. In essence, the term organizational innovation refers to the creation or adoption of an idea or behavior new to the organization (Lam, 2004). As such, the innovation can be a new product, a new service, a new technology, or a new administrative practice (Hage, 1999), which provides the edge or competitive advantage of an organization in its respective market. In this sense, organizational innovation, such as through the introduction of new products and new services, can provide new employment opportunities and positive balances of trade, thus, protecting the nation’s standard of living. Practically, since a nation’s economic development depends largely on the continued launching of new products, governments have become concerned about innovation. This is because many organizations and nations alike perceive the innovation of products, services, technologies, and administrative practices as assisting with the articulation of study of significant breakthroughs in science, the development of superior military equipments, the creation of interdisciplinary programs in higher education, the reform of welfare, and many others. In other words, the study and the recognition of the importance of organizational innovation concerns some of the most basic problems in the society, and thus, can be deemed as important and relevant (Hage, 1999). 

 

2.2 Introduction of Organizational Innovation Management (OIM)

            It has been stressed that businesses nowadays have come to realize the importance of innovation for survival in a world of global competition (Hage, 1999). This is because every organization in today’s generation has been exposed and has already been aware of the fast-paced market and industrial environment that it has due to the continuous, simultaneous, and dynamic changes that happen in relation to science, technology, and communication. Because the concept of organizational innovation pertains to the adoption or creation of a new idea or behavior in an organization, the management of such a concept would also be relevant. It has been reported that in the management literature, innovation serves to drive corporate success and is a strategic endeavor contributing to the differentiating capacity of an organization. Innovation is said to be a high-risk activity, unpredictable, complex, dynamic, non-routine based, involves creativity, and is difficult to control (Huizenga, 2004). With such characteristics, it can be perceived that an organization that would be devoting itself to innovation would be needing the magic hands of management in order to govern, control, and direct its success. In this regard, the concept of Organizational Innovation of Management or OIM pertains to the management of the chances, the risks, and the changes in the organization, in relation to its dedication and commitment in implementing and adapting to innovation. This also involves directing and committing to the development of the organization through determining the potential pitfalls and uncertain, high-cost and results. It pertains to the appropriate delegation of resources that might render value in the long run. More importantly, OIM is about enhancing and motivating change in the organization, thus, involving and developing people to accept, learn, and execute changes in terms of work, skills, and competencies in the organization (Huizenga, 2004).

 

2.3 Relationship between OI and OIM

            As stated and emphasized earlier, the concept of organizational innovation pertains to the creation or adoption of a new idea or behavior in an organization, while the concept of organization innovation management or OIM pertains to the management of the creation or adoption of a new idea or behavior in an organization. From the definitions of the two concepts themselves, it can be understood and deduced that a significant relationship exists between them. This is because in order for an organization to effectively and efficiently undergo its needed changes, it must then be able to come up with a new idea or behavior that would serve to be a relevant and appropriate answer to its needs. However, the utilization and implementation of the said changes or innovation strategies in the organization would not be as useful and significant without proper management, control, and direction. This is because through effective management, the use and the implementation of innovations in the organization would be based on scientific research and data, and thus, would be appropriate for the needs of the organization, in terms of responding to the demands of consumers, its environment, its workers or employees, and its industry.

            The concept of Organizational Innovation is deemed to be closely integrated with the concept of Organizational Innovation Management, given the different factors that interplay between them.

            It has been reported that there are two types of innovation that can be used by an organization, namely, autonomous and systemic innovation. An autonomous innovation is one that can be introduced to the market or to the consumers without massive modification of related products and processes. An example of this kind of innovation is the introduction of power steering, which did not initially require any significant alternatives to the design of cars or engines (Lam, 2004). This form of innovation is usually what is being done by most organizations, as through autonomous innovation, less research, fewer costs, and fewer alterations of products and processes are involved. In this regard, an organization would be able to effectively respond to the needs of its customers, with fewer expended money or budget, but with increased profits. Aside from increased profits, products in the market, which underwent autonomous innovation still pertain to the previous products targeting previous customers, who would be perceived to retain loyalty to the use of that particular product. On the other hand, the second type of innovation is systemic innovation, which favors integrated enterprises because it requires complex coordination amongst various subsystems, and hence is usually accomplished under one roof. An example of a systemic innovation is the complete redesigning of many automobiles in the 1980s, producing front-wheel drive vehicles (Lam, 2004). From this, it can be perceived that the primary relationship of Organizational Innovation and Organizational Innovation Management is effectively determining the type of innovation an organization needs to undergo or implement. An organization must first determine the type of innovation they need before coming up with the next step or plan. In this sense, this involves determining the problems of the company or organization, which need to be addressed through innovations. As such, an organization must not be able to adopt or create a new idea or behavior immediately without thinking and planning about it. Therefore, the relationship of the two concepts involve integrating together in order to determine the problems or issues in the organization that need to be addressed through innovations. An example of this would be to determine first why a certain brand of deodorant is not profiting in the market. Identifying the problem would mean choosing this particular brand of deodorant to undergo innovation or significant changes.

            Identification of the problem, which needs to be answered or addressed through innovation leads to careful planning, organizing, and research. After identification of the problem, the organization can now determine what type of innovation its product/s can undergo. Basing on the current example, innovation of the deodorant brand in question would mean it has to undergo autonomous innovation. Research for the organization would mean the company would be obtaining relevant data and information regarding the performance of the deodorant brand in the market, involving the feedback of consumers and users of the product. In addition, the costs, duration, and processes involved in its production must also be taken note of in order to critically analyze and evaluate the overall performance of the product to be undergone innovation. After relevant research and data gathering, planning would be the next step to take. Through effective and efficient planning, the company would then be able to synchronize its resources and its objectives to the changes that must be done to the product. Careful planning would then lead to organizing, which would allow the company or organization align their goals to the interests of their customers. In this sense, the second factor or aspect in stating the relationship between Organizational Innovation and Organizational Innovation Management involves assisting organizations to careful data gathering, research, and planning, which would be helpful for implementing changes in the organization. Careful and critical planning of the steps to be taken by the organization in relation to the changes or innovations it may take would be the best strategy to do, as this would help the organization lessen future problems and crises, during the actual implementation of the said changes.

            It has been pointed out that managers in an organization need to be trained to create mechanisms and systems that support and facilitate innovation, which is not confined to the management of researchers, engineers, and advertising professionals alone. More and more, managers of all functional areas must need to know how to create an optimal level of organizational innovation in their departments (Fischer, 2001). In this regard, it can be stressed that the third indicator of the existing relationship between Organizational Innovation and Organizational Innovation Management is providing and emphasizing the skills and competencies managers must have in order for the organization to effectively and efficiently implement innovations and changes needed by the company. The relationship between the two concepts emphasizes the need for managers to possess a number of skills and competencies, and assume roles in the organization. Such skills include strong leadership skills, the ability to develop people, excellent communication skills, good interpersonal skills, the ability to handle stress effectively, problem-solving skills, and time management skills (Gido and Clements, 2005). In terms of role, managers must take on a variety of them, which would enable them to perform the different skills required of them. Such roles include becoming leaders, motivators, good listeners, commanders, planners, organizers, and consultants.

            The most important indicator that emphasizes the relationship that exists between Organizational Innovation and Organizational Innovation Management is the presence of strategies or interventions that would assist the organization and its members to undergo the process of change or innovation. The presence of strategies or interventions, such as individual, group, inter-group, and organizational interventions (Rotwell and Sullivan, 2005) indicate that an organization values the development and improvement of its human resources in order to cope or adapt to the changes that must be implemented in the organization. In addition, the fact that organizations bother themselves with strategic and organizational planning and analysis means that the coping with the changes happening in the organization matter to them, as such changes significantly influence the many processes that would determine the success or failure of the organization in its respective industry. In essence, the most important link between the two concepts is to assist in coming up with useful and relevant strategies that would be essential in allowing an organization to undergo its needed changes.

 

2.4 Background of China Manufacturing Industry and OIM Situation

            Manufacturing is one of the most fundamental activities of human beings and the cornerstone of survival and development for society through creating tremendous public wealth. Its industry is the foundation of national productivity and the pillar of the national economy. This holds true for China, as its manufacturing industry is rapidly rising the world as never before. This has been brought about by its reform and opening up to the outside world, along with its entry into the World Trade Organization. As such, China is now the 4th largest manufacturing power in the world, second only to the United States, Japan, and Germany. It has been emphasized that its important mark in its sudden emergence is the rapid expansion of China’s production capability. Over 100 kinds of products of 10 trades including household appliances, medicines, electronic devices, toys and many others rank the first in the world in terms of output. The total trade value of export and import in mainland China has been up to US$ 1150 billion in 2004, second only to the United States and Germany (Limin et al., 2005). In addition to this, its population reached over 1.3 billion people in the middle of 2007, thus, making it the world’s largest and most populous country (Rosenberg, 2007). Thus, its large population contributes to its increase in terms of production in the manufacturing industry, as more and more citizens become the hands that drive the many and large manufacturing industries in the country. The increase then of the population leads to the increase of individuals that China can induce for labor. Moreover, the liberalization of China’s economy, most especially its manufacturing sector led to produce a devastating effect not only to the Mexican economy, but to the American economy as well. This is because jobs are going overseas at an increasingly rapid rate, mostly to China. A look at what happened to the textile industry alone is disturbing. According to the findings of the National Council of Textile Organizations, China now controls half of the apparel market of the United States in product areas where quotas have been removed. The reason for this is that U.S.-based corporate interests have infused it with money, infrastructure, technology, and business savvy. They have even moved their plants to China (McManus, 2006). In this sense, the multinational organizations that have dominated the market of China, along with significant impacts of globalization in the world have contributed to the development of the manufacturing industry of the country. Thus, it can be deduced that the opening up of the economy and market of China has done the country, its economy, and its society good.

However, despite the high regard for the massive production associated with the manufacturing industry of China, it has been stressed that the gap between its own manufacturing industry and the industrially developed countries is becoming noticeable. China’s manufacturing industry can be described as large, but not strong, and is still way behind developed countries in terms of the enterprise scale, technical level or the international market scale, international competitiveness, and the position in international division of labor. Furthermore, a number of problems or loopholes can be seen through China’s manufacturing industry, such as the low level of technical standards and the lack of professional talent versed in technical standards. Problems with the standardization field of China include serious backwardness, lag in standards, serious divorce of formulation of standards from market demand, and the lack of professional talent familiar with, and versed in technical standards, such as of ISO standards. In this sense, the presence and the persistence of such problems serve to hamper and be regarded as constraints to the development of China’s economy, especially in terms of the development of its manufacturing industry (Limin et al., 2005).

From this, it can be perceived that China’s manufacturing industry serves to be one of the largest producers in the world, and this is brought about by the economic and business opportunities provided by the multinational organizations and investors. Along this is the large number of its population, serving to increase the number of individuals to be used for labor. However, the presence of problems and loopholes in China’s manufacturing industry means that a lot of polishing must still be done. Thus, in this sense, the role of Organizational Innovation and Organizational Innovation Management comes into the picture.

 

 


INTERNATIONALIZATION PROCESS OF FIRMS

Introduction

In analyses of international organization, the relations between the two are generally assumed to be either conflictual or cooperative. On the one hand, because multinational corporations are thought of as being a part of the economic sphere and the national state is thought of as the political sphere, their interests are considered to be in principle completely distinct. The concept of the territorial non coincidence of the firm and the national state further enhances this view. Multinationals are thought to be concerned with the maximization of profit and the further globalization of investment and production, while states are preoccupied with national security and their national economies as well as with their relations with other states and with international organizations such as the United Nations (Emadi-Coffin 2002).  This theoretical opposition between the interests of multinationals and the national state often appears to be substantiated by empirical experience. The fact that there are often empirical tensions between multinationals and the national state is in part what makes it such a compelling argument (Emadi-Coffin 2002).

 

As a result of these theoretically separated interests, the relationship between the two is assumed to be one of rivalry. On the other hand, however, it also appears at times that the interests of multinationals and a state or states coincide. In the case of some coincidences, such as the creation of more jobs, this is seen as the product of careful policy coordination (Emadi-Coffin 2002). In the case of other types of coincidences, such as intervention in the affairs of another state, the coincidence of interests is regarded as an example of the manipulation of the national state by a corporation in its own interests. The contemporary global political economy is characterized by a hegemonic historical structure which has national states, multinational corporations, and international organizations among it’s inter subjective entities. These institutions, then, are among the forces making up the historical structure which imposes order through pressures and constraints (Emadi-Coffin 2002).Over the last two decades, there has been a discernible shift away from the Multinational Enterprises (MNE’s) use of the wholly owned subsidiary to institutional modes that involve less equity participation. The emergence of the new international entry modes was a result of government’s policies, the MNE’s perception of the advantages of alternative forms of involvement and the advent of the smaller MNEs The new modes of market entry are diverse in nature (Barclay 2000).

 

International Corporations create a different kind of impact to the business environment. Their emergence in a market leads to changing of strategies for old business. Their emergence leads to a tougher competitive environment but the company’s tend to focus on the better delivery of services to their clients. International organizations are affected by various things in its environment. They are affected by the situation in the environment. Most business would want to go international because of the privileges acquired from internationalization. The paper will discuss about the unique barriers service firms face when going international. The paper will also discuss how firms manage these issues.

Internalization process of firms

Firms internationalize and commit a package of tangible and non tangible resources abroad. Tangible resources such as capital are required to pay for supplies. Non-tangible resources include non–human-related resources such as patents, trademarks, copyrights and registered designs, trade secrets, data base, trust, goodwill, trade name, credibility, reputation, image, and the firm’s relationships. In addition there is know-how about suppliers and organizations, about culture and organizational and managerial practices, and about routines and human resources (Rao 2001). An important factor is the uniqueness, or the niche, that the firms attain by combining their tangible and non-tangible resources. An internationalization process is caused by the underutilized resources in a firm. These resources can be used to generate value for the firm. But the transferability and mobility of the domestically based resources abroad is restricted in time and space. The process of going abroad is slow and gradual one (Rao 2001).

 

As a firm internationalizes, it accumulates resources from the foreign markets and combines them with its own. In this process a dynamic evolves. Three dynamic processes are important, namely, the internal education effect, the rationalization effect, and the quality-improvement effect. Through these processes the resource base of the firm is altered. Some resources are enhanced and others are not. Thus, in the process of internationalization, firms, on the one hand, exploit their own resource base to generate value. On the other hand, firms also enhance their resource base (Rao 2001). The value of the current resources is improved through new combinations. The new combinations supply resources for future internationalization. The internationalization process of firms is a continuing process of resource creation, resource accumulation, and its subsequent exploitation by the firm. A disruption in the resource creation-accumulation-exploitation process in a firm will terminate its internationalization process. Internationalization provides one growth outlet, and it is an aspect of the growth of the firm. If the domestic market is already saturated, going abroad is the only option left. At the initial foreign market entry, the manner in which the firm interacts with its foreign clients is the same as the one it uses in the domestic market (Rao 2001).

 

Whether a company is a small or a big business, its operations will be an affected if does not create innovations needed for it to survive in its industry. A firm has to expand to broader boundaries to maintain a good standing in the industry. It has to widen its goals into an international coverage that can cater to more people. The internationalization process of service firms focus on acquiring world class information on how to provide better service. In the internationalization process of service firms, companies make their employees attends seminars, symposiums, workshops or the like to learn service techniques that can compete with the service strategies of international companies. Service firms also gather world class techniques and use it as they deliver services to their clients.

Service firms

Service businesses have many methods of continuously gathering information about their competitors and their customers. However, many service-industry companies have not yet discovered the true value of this information in terms of gaining a competitive advantage (Blenkhorn & Fleisher 2001). Diversification and effective utilization of resources are two of the ways service businesses can achieve strategic flexibility. Service industries are dynamic by nature. To gain or maintain any type of sustainable competitive advantage, a service business must achieve the ability to adapt and/or change course in order to predict, identify, and seize any window of opportunity that develops within the industry. Successful service companies recognize that establishing relationships with customers and exceeding customer expectations are key elements to developing competitive advantages (Blenkhorn & Fleisher 2001).

 

Customer satisfaction translates into profitability and growth. Satisfied customers tend to buy more often, to purchase more profitable services, and to defect less frequently. In service companies, defection rates are leading indicators of profit swings, and are highly influenced by service quality. As the real or perceived quality of a service increases, customer defection decreases and the number of first-time customers increases. Moreover, as service quality increases, overall costs decrease because costly service-recovery strategies do not need to be employed. There is a known process for transforming service quality into profits. Service quality is the driving force behind lowering costs, improving customer retention, and attracting new customers (Blenkhorn & Fleisher 2001). Businesses operating in service industries often generate very modest profit margins. Therefore attracting and retaining the right customer is imperative to lowering the cost of serving the business’s customer base. Not every customer is the right customer for a service business. Some customers are very expensive to maintain; these customers actually increase costs, lower profits, and have the potential to decrease the quality of service experienced by others who are the correct fit for the business (Blenkhorn & Fleisher 2001).

 

 Service quality and service superiority are standards established according to customer perceptions and expectations. For service companies, the cost of quality is the cost of doing it right the first time. Long-term satisfied customers are increasingly generating more profits each year that they remain loyal to the service provider. Continuous improvement in service quality should not be viewed as a cost, but rather as an investment in a customer who generates more profit than the margin on a one-time sale (Blenkhorn & Fleisher 2001). The service sector is considered as the soft part of a national economy. Included in this sector are businesses that involve insurance, tourism, banking, retail, education and social services.  Service firms offer various things like transport, distribution of products, or provision of service. Service firms concentrate on making sure that their people can have personal rendezvous with clients.  Service firms encounter barriers when they are internationalized. This includes barriers like the business being intangible and high cost of operations.

Barriers to internationalization of service firms

Being intangible

The question of intangibles is very current. The rapid growth of service activities over the last twenty years testifies to the fact that intangibles are a critical issue for corporate management. In addition, the industrial activities themselves are dematerialized: companies allocate as many resources to pre- and post productive tasks as they do to production activities strictly speaking. At the managerial level, the observation of recent corporate practices with regard to their competitive strategies shows that most of the implemented options comprise an intangible dimension: the reconfiguration of tasks and processes, outsourcing and networking of activities; the search for mechanisms of creation of competitive knowledge; the development of tools for knowledge capturing and management; the development of organizational image and identity; and, more generally, the reconfiguration of the nature of competitive advantages on the market (Bounfour 2003).

 

Two essential dimensions of intangibles are at the heart of the strategic redeployment of companies; these are information and innovation. With regard to innovation, managers are challenged by several questions, in particular those relating to the choices of fields leading to value creation, budget allocation and return on investment. Innovation is from now on an integral part of an organizations' management and finds its activity and fields of application at the functional intersection. Information innovation's soul mate is also a lever of competitiveness for companies, both in the internal and external dimensions. Behind these two dimensions, the mode of accumulation and valorization of knowledge in the organizations is largely questioned (Bounfour 2003).Organizations undergoing major market, product, and structural change often have significantly increased focus on the intangible aspects of each key business dimension. For new markets, these organizations will have considerable focus on customer relationships and their management. As differing workforce skills and expertise are required, employee motivation and commitment become critical issues (Hanlan 2004).

 

 Trust in the organization from all stakeholders becomes critical to the organization’s success, whether from suppliers believing an existing company will not be forced into bankruptcy or from new customers believing that a new company will be able to meet their needs. In times of crisis, intangibles often become much more mission critical than tangible measures (Hanlan 2004).  Service firms that want to go international face a barrier that pertains to its intangibility. Intangibility is a problem for service firms because it makes it hard for the service company to attract international clients due to the goods cannot be seen and cannot be easily demonstrated.  Intangible products cannot be tested and measured for accuracy. Only the description of the service and its benefits can be given to clients. Additionally intangibility is a barrier to service firms because the goods are not guaranteed to be in the same value as the payment of the service.  Clients will not have complete assurance that the service will have the same value as the money they pay for the service. 

High Cost of operation

Going global represents a tantalizing opportunity, but it is not for everyone. For every company that has the potential to market its products internationally, there are many more that would have to undergo such radical change to be successful that the effort would be unlikely to be worthwhile. Entry into the global marketplace is a form of diversification and needs to be treated just as carefully as consideration of a new product or a new market sector (Stanat & West 1999). When diversification was popular, strategies usually involved developing in an area that built on strengths and created opportunities while helping to correct weaknesses and avoid threats. This approach is no less valid for the geographical diversification implied in going global. Products, services, and resources may be a limitation, but they are rarely a critical one. Products and services that would be difficult to sell to customers outside a specific region or country are the exception rather than the rule. There are rather more cases of companies that do not have, and cannot obtain the resources to operate globally. But the biggest limitation to globalization is the lack of will to engage in and drive a global marketing program (Stanat & West 1999).

 

Going global is no minor development. In view of the implications of the audit, the prime mover must be the chief executive or, in smaller companies, the owner. Only the top executive has the authority to sanction the budget and the developments required to go global. More to the point, if the person at the top is not fully behind the initiative virtually from its inception, it will never happen. Although the product audit is a major component, most organizations fail to realize that a winning product is insufficient to guarantee success on its own. In the search for assets that can be exploited, a global marketing audit must cover every aspect of the company and its business, including products, manufacturing, sales and distribution, promotion, service and support, image and reputation, market history, customers, personnel, attitudes, competition and finance (Stanat & West 1999).

 

            Many factors, cultural and regulatory, can limit product acceptability, including local tastes, operating conditions, working practices, standards, health and safety legislation, and labor laws. Food, pharmaceuticals, electrical products, industrial machinery, and automobiles are all subject to local regulation, which can mean that either significant modification are required to make the products suitable for sale or the manufacturers must comply with long and costly test and certification procedures (Stanat & West 1999). A barrier to internationalization of service firms is the high cost of operations. Companies when going global have to consider cost of operations in the international market. In terms of cost service firms can incur more cost than manufacturing firms. Materials used by manufacturing firms may be brought in lower prices but the services being offered by people in the service firms cannot be lowered and has different values for a different kind of service. The manufacturing firms can still lower its operational cost while the service firms have a limited chance to do that because of personnel costs.

Managing the barriers

To manage the barrier of intangibility, service firms can make use of advertisements and other marketing techniques that will inform possible clients about the company and what products they offer. The service firms can make the advertisement easy to understand but informative so that perspective clients will be attracted to inquire about the company and its services. Another thing that service firms can do is to make use of a brand name that can summarize its services to the international market. The brand name can be something that will get the attention of the perspective client at the same time the brand name will give a short but direct summary of the company’s services.

 

To manage the barrier of intangibility, service firms can make use of the internet as a visual way to describe their services. The service firms can have a website that will ensure that international clients can see their services and what are the benefits of availing such services. To manage the barrier of higher cost, the service firm can make use of low cost materials in the international branch. Since the personnel cost cannot be reduced, the service firm can minimize the use of expensive ornaments in the international branch. The ornaments and facilities have lesser importance than the quality of service. Another way to manage the barrier of high cost for service firms is to initially make use of the internet as a place where international transactions will be made. In this way the service firms won’t have to spend much in order to reach more clients in more parts of the world.

HOW GOVERNMENT POLICY CONTRIBUTES TO SOCIAL INEQUALITY

OUTLINE OF THE THESIS: How Government Policy Contributes to Social Inequality: How the introduction of employer-sponsored health insurance contributes to inequality particularly in the workforce

 

Specific Purpose(s):

I. Introduction (must be brief and concise)

A.      Introductory sentence

B.      Thesis statement

II.   Topic 1 – The government policy initiatives of the past 25 years affects the economic and racial/ethnic disparities in health and health care

A.      Discuss how people acquire health insurance

B.      Discuss how the health care system in the country functions

C.      Discuss the benefits and downsides of the health care system

D.     Analyze how the health care system exacerbates health inequality

E.      Explain the consequences of health inequality

F.      Identify different government policies on health and health care provisions in context of history

G.     Review and analyze each policy and note specific sections that contribute to economic and racial/ethnic disparities

H.      Discuss each section and explain the reasons why they could possibly contribute to social inequality

I.         Discuss implications for policy-makers and for social workers 

III. Topic 2 – How the economic benefits of health-related expenditures are distributed among individuals by income, race/ethnicity and family structure/composition, and how the distribution has change over time 

A.      Discuss the distribution of tax subsidies for health

B.      Discuss the general economic benefits of health-related expenditures

C.      Discuss conceptual and measurement issues

D.     Discuss how health-related expenditures are distributed by income

E.      Discuss how health-related expenditures are distributed by race/ethnicity

F.      Discuss how health-related expenditures are distributed by family structure/composition

G.     Analyze the general implications of the distribution and discuss specific implications of the distribution of health-related expenditures by income, race/ethnicity and family structure/composition

H.      Discuss the trends/patterns in the distribution of tax subsidies for health-related spending

I.         Analyze each identified trend/pattern and draw implications of social inequality from the analyses  

IV. Topic 3 – How the current system of employer-sponsored health insurance contributes to inequality

      A. Explain the current system of employer-sponsored health insurance

            1. Coverage

                        1.1 Sponsorship

                        1.2 Eligibility

                        1.3 Participation

            2. Employer’s Liability

            3. Trends in Cost and Access

                        3.1 Factors that affect the trends

                                    3.1.1 Premium contributions

                                    3.1.2 Wage Levels

                                    3.1.3 Firm Size

            4. Legal and Advocacy

                        4.1 Right protection under employer-sponsored health insurance

                                    4.1.1 Accountability

                                    4.1.2 Information

                                    4.1.3 Claims procedures and appeals

                                    4.1.4 Other protections

                                    4.1.5 COBRA

                        4.2 ERISA 

B. Discuss the cost of health care benefits and discuss the payroll dollar breakdown

C. Discuss tax treatment of both employer and employee contribution

D. Analyze and discuss implications of this in workplace inequality

      1. Income

      2. Gender

      3. Skills

      4. Job security

      5. Job satisfaction 

      6. Quality of Life  

V. Topic 4 – How different approaches to health care reform and the expansion of health insurance coverage are likely to affect social inequality

A. Discuss the nature of health care reform and the expansion of health insurance coverage

B. Discuss on-going debates regarding health care reforms

            1. Coverage expansion

            2. Income redistribution

            3. Social health care programs

            4. Achieving equity in health

C. Discuss why these health care system reforms will prove to be insufficient in the long run

D. Discuss the implications of such reforms to poverty, discrimination and unemployment and social inequality in general    

 

THESIS WRITING PLAN: How Government Policy Contributes to Social Inequality: How the introduction of employer-sponsored health insurance contributes to inequality particularly in the workforce

 

Pre-Thesis Writing Stage

 

Prepare a Proposal

  • Read other proposals

Guide Questions:

ü       How was other proposals been organized?

ü       What are the headings that have been used?

ü       Does the other proposal seem clear?

ü       Does it seem to suggest that the writer knows the subject area?

ü       Can I model my proposal after the ones that I’ve seen?

  • Prepare a Comprehensive Review of the Literature
  • Photocopy relevant articles or sections (and the bibliographic citation)

ü       Categorized

  • Include the first three chapters of your thesis

ü       Chapter 1 – Statement of the Problem/Background Information

ü       Chapter 2 – Review of the Literature

ü       Chapter 3 – Research Methodology

  • Focus your research very specifically

ü       Narrow down your topic

  • Include the title on the proposal
  • Organize your proposal around a set of research questions

ü       General Question – How does government policy contributes to social inequality?

ü       Specific Question – How does the introduction of employer sponsored health insurance contributes to inequality particularly in the workplace?

  • Other consideration in designing the research proposal

ü       Design the research so the subjects benefit

ü       Choose the research methodology wisely

Ø       Research philosophy

Ø       Research approaches

Ø       Research Strategies

Ø       Time Horizons (Standard Research Timescale or Gantt Chart)

Ø       Data Collection Methods

Ø       Data Analysis

Ø       Limitations of the Research

ü       Consider triangulation or multimethod

ü       Seek the use of an advisory committee

 

During Thesis Writing Stage

 

Write the Thesis

  • Begin to write the sections you are most comfortable with
  • Rewrite the proposal into dissertation/thesis sections
  • Use real names/places in early drafts
  • Print each draft on a different colored paper
  • Use hand writings of graphics/tables for early drafts
  • Make your writing clear and unambiguous
  • Review other dissertations before you begin to write
  • Introduce tables in the text, present the table and then describe it
  • Use similar or parallel wording whenever possible
  • Let the Table of Contents help to improve the manuscript
  • Write real conclusions and implications (don’t restate the findings)
  • Make suggestions of further researches
  • Write Chapter 1

 

Post-Thesis Writing Stage

 

Thesis Defense

  • Attend defenses before your turn
  • Discuss your research with others
  • Don’t circulate chapters to committee
  • Try to make the defense more of a team effort – your and your adviser
  • Organize your defense as an educational presentation
  • Record the defense
  • Prepare an article (hand-outs) about the outcomes of your research

 

 

SUGGESTED THESIS STRUCTURE: How Government Policy Contributes to Social Inequality: How the introduction of employer-sponsored health insurance contributes to inequality particularly in the workforce

 

1)       Copyright waiver

2)       Declaration

3)       Title page

4)       Abstract

5)       Acknowledgments

6)       Table of contents

7)       Introduction

8)       Literature review

9)       Middle chapters

i)         Materials and Methods

ii)       Theory

iii)      Results and discussion

10)   Final chapter, references and appendices

i)         Conclusions and suggestions for further work

ii)       References

            iii)  Appendices

 

TO DIFFERENTIATE AND COMPARE MUSIC MARKETING STRATEGIES IN UK AND CHINA

CHAPTER 1

1.0  Introduction

Music industry is one of the contributors for economies in the global world. In this regard, various industries are trying to initiate a marketing approach that would be able to enhance their market position and to sustain their competitive advantage. Primarily, the main goal of this dissertation is to investigate the differences of marketing strategies in the music industry in United Kingdom (UK) and China. Music marketing in the modern music industry poses challenge for record label distributors. Publicity is a buzzword for musicians, singers, record producers and the like. Publicity strengthens the name register and the quality of the music. Though it is more instrumental in building awareness, it is the degree of marketing which will truly sell a record (Summers, 2004).

            Since most studies regarding music marketing are relatively focus in general, this study proposes examining music marketing strategies from a specified locations as UK and China. There are several reasons why marketing music in these regions is a challenge. On the one hand, music marketing in China passes through a political scrutiny wherein all music and videos are subjected to formal examinations of various bureaus under the State Council and authorized provincial distributors (Li, 2003). On the other hand, the development of clubbing, DJing and partying in different UK destinations inhibits a presence of oneself in music destinations over just merely listening to it (Horner and Swarbrooke, 2005). There is drive to understand how these two countries overcome such challenges and continually keeping their respective music industries alive.       

            The rationale of this study is basically to differentiate and compare music marketing strategies in UK and China. This study will be useful for companies and musicians that are willing to market their produce in UK and China.

 

Research Questions

            The study will answer the following questions:

  1. What are the relevant music marketing strategies in existence in UK and China?
  2. What are the challenges and conflicts in implementing music marketing strategies in UK and China?
  3. What are the similarities and differences of music marketing strategies in UK and China?
  4. Do the music marketing strategies in UK and China proved to be feasible financially and economically?
  5. How the success of a specific music marketing strategy does is measured?  

 

Research Objectives

            The study will address three key objectives as follows:

Ø      To determine the music marketing strategies employed in UK and China and to identify their similarities and differences

Ø      To determine the challenges and conflicts these music marketing strategies are experiencing and to identify factors that underpin such

Ø      To determine the performance of different music marketing strategies in UK and China and to identify success or failure indicators  

 

Research Model

            Since this study will focus on marketing of music industry in UK and China, the research model to be used is Marketing Mix. The idea of the marketing mix has been around for many years - well before an 'e-' came in front of 'marketing' or anything else. Marketers devise strategies and tactics aimed at providing satisfaction and adding value for customers. The marketing mix can be defined as the blend of tools and techniques that marketers use to provide value for customers. It is most widely known as '4Ps':  Place, Product, Price and Promotion. Place refers to the routes organizations take to get the benefits of the product or service to the intended customers. Product means both tangible product and also 'service' and all the ways in which an organization adds value. Price means not just the price charged, but also all aspects of pricing policy.

            Finally, promotion is not just the more specialised sales promotion, but also every way in which a product is promoted to customers – from print advertising to websites. The 4Ps are used as an approach to marketing planning. The prominence of the 4Ps derives largely from Kotler's and colleagues' (e.g. 2003, 2001) focus on these as central to marketing strategy.

 

            In recent decades, there have been numerous attempts to update and revise the marketing mix. Jefkins (1993, p. 37) pointed out that the concept of 4Ps is no more than a simplifying convention that “loses sight of the chronological sequence. He devised a more realistic twenty-element mix that attempted to describe the marketing process sequentially, starting from conception, through pricing, product, distribution and sales to maintaining customer interest and loyalty.

            For some marketers there are '5Ps' of marketing, with the fifth being 'People'. 'People' has two meanings in this context. First, customers are people, often buying according to emotion and whim; without them, there is no business. Second, people make it happen. Without people to put marketing plans into operation, nothing happens. Furthermore, Booms and Bitner (1982) proposed that for marketing services, the marketing mix should be extended to seven, with the sixth and seventh being 'Process' and 'Physical Evidence', respectively. For a service, where there is no tangible product, the process of providing the service is all-important. Similarly, a service cannot be sampled. The provider needs to present evidence of the quality of the process.

            In recent years, what marketers actually do has changed radically. Some authors (e.g. Gronroos, 1997) have questioned whether the old idea of the marketing mix can still be valid. The challenge is based on a shift of emphasis towards relationship marketing and customer relationship management (CRM), aspects which are fundamental to marketing the e-Business. One development has merit as being descriptive of the way marketers think about the customer. The '4Cs' (Lauterborn, 1990) imply more emphasis on customer wants and concerns than do the 4Ps. In this paradigm, 'Place' can be thought of as 'Convenience for the customer', recognising the customers' choices for buying in ways convenient to them. Rather than being something that a company makes, 'Product' can be thought of as a 'Customer benefit' - or satisfactions wanted by customers.

            Furthermore, 'Price' may be what companies decide to charge for their products, but 'Cost to the customer' represents the real cost that customers will pay, including, for example, their own transport costs. Lastly, 'Promotion' suggests ways in which companies persuade people to buy, whereas 'Communication' is a two-way process also involving feedback from customers to suppliers.

            Marketing and promotion costs are among the most significant costs incurred in the music industry. Such expenditures are necessary to help artists stand out from competing releases. Whereas major labels achieve significant economies of scale in promotion, small labels are hampered by, for example, the high costs associated with obtaining radio airtime. In an online world where consumers have many more listening choices, the role of promotion will become even more critical in differentiating individual artists and driving sales. Owing to the high costs associated with promotion and distribution independent labels rarely reach large audiences (Coats et al., 2000).

 

 

 

CHAPTER 2

REVIEW OF RELEVANT LITERATURE

 

2.0 Introduction

One of the recognized industries in the world today is the music industry.  For years, music had very little to do with business. Basically, the music industry revolves on business activities including fast-phased unit-led production, licensing, marketing and distribution. The objectives of the music business is primarily concentrated on fast distribution of products, speed of re-stocking and selling products on major territories and be more competent.  The music industry is a department that is in-charge with the promotion, creation as well as preservation of music. In the business world, the music industry is simply equated as the business of music. Since the popular music is of worldwide significance, the international music industry is deemed highly relevant. And according to Burnett (1996), the international music industry is widely based on thee production and sales of phonograms (records, cassettes, mini and compact discs).

            Today, the music industry does not only consist of cassettes, mini and compact discs. The music industry has gone a long journey which enabled it to become more loosely integrated vis-à-vis the rest of the entertainment industry. The music industry has become one of the most profitable industries in the global marketplace. Indeed, the music industry has been highly commercialized. However, in the recent years, there has been a noted decline on the global sales of music. This can be attributed on the lack of “blockbuster” releases, competition from other media such as computer games for younger consumers, and the availability of free music on the Internet. Because of this, issues have been raised regarding the delivery of music over the internet. (Fox, 2004)

            Chiefly, the access to free music has made a great on the delivery of online music. As a result, companies under the music industry are pressured to devise strategies that can address the threats of online music delivery. There is also an urge for them to adopt new business models in order to meet consumer needs successfully in the e-commerce milieu.

In the ever-changing environment of the music industry, competition becomes the major organizational principle of marketing activities. As time evolves, consumer behavior, trends and issues put the music business on considerable stress. Changes and marketing approaches would have to be altered accordingly. Thus all companies in the industry are challenged to formulate marketing strategies that will ensure them of achieving competitive advantage over other companies. In order to position themselves on top of the competition, many companies are focusing on developing loyal customers – customers that avail of its products and services consistently over time, generally at regular prices, commonly ignoring the pleas and platitudes of competitors. The main objective of this dissertation is to compare the marketing strategies of music industries in China and UK. In order to achieve the objective of this paper, the literature review will focus on the following topics: Business Strategy for Music Industry, UK and Chinese Music Industry Marketing Strategy; the government policy of UK and Chinese music industry; Effect of the information technology and internet on marketing strategy of UK and Chinese music industry for non- academic literature. For academic literature the discussion will include the discussion of consumer behaviour, specifically the audience development of music industry in UK and China.  For this paper, the research model to be used will be based on the 7ps of marketing.

 

Business Strategy for Music Industry

Business model is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets (Rindova & Fombrun, 1999).  Only firms that continuously upgrade their competitive advantages over time are able to achieve long-term success with their strategy and implementation.  Choosing the appropriate business model is intended to create differences between the industry’s positions relative to those of its rivals (Drejer, 2002). To position itself a firm must decide to whether it intends to perform activities differently or to perform the different activities as compared to its rivals.  Thus, the firm’s business model is a deliberate choice about how it will perform the value chain’s primary and support activities in ways to create unique value. Over the years, different companies and organization are trying to utilize the business model in which they think should bring success to the over-all performance of a business.  In addition, business model is also referred as the mechanism or system by which any firm or business aims to produce profit or revenue.  It is the totality of how the industry intends to serve its target market.  It involves both the marketing strategy and its strategic implementation.   Throughout the years, the uses of business model are regarded as complicated and sophisticated.  Business models have different kinds. 

However, the business model that has been used by the music industry prior to the emergence of the internet is the basic business model which is the subscription business model.   In this chosen model, different music industry like Sony Music, or EMI do not sell their products directly. Instead, these industries are selling their products monthly or annually.  In this model, the effect simply lies on the conversion of a one-time sale of a particular music labels or musical records into a frequent sale of a product.   This to know where the target market lies, providing their products on time that they know it will hit the target market and tries to promote it through advertisement. 

Prior to the use of Internet, music industry’s competition depend largely on how they locked their consumers.  This means that the music industry is in control of their consumers by means of the kind of music that the music industry will offer.  The relationship between the organization and the consumers are being embedded to consumer as a buyer and the organization as the producer.  In this manner, the consumer would tend to buy the music products from the store just to hear the particular songs that they wanted to listen to. Herein, It does not matter whether the other songs or tracks included in the album may or may not attract the consumer.  In addition, the music industry prior to the use of internet tries to market their products depending on the artists or the musicians and the labels that they have. 

Using the Porter’s Five Forces Model (See Appendix 1), the model of the music industry can be seen in Table 1.  As can be seen in the table the competition for the music industry vastly depends on the musicians in which the industry has.  And the competition not only lies within music industry but also to its rival competitors.  Moreover, the competition on the labels is very tight since consumers have different taste when it comes to music and its label. The music industry depend its profit on the musicians and the artists.  On the other hand, in the suppliers of the music industry will also depend on the musician, labelling and the consumers.  Herein, a certain music industry likes for example the Sony. The company will be able to get their supplies from those musicians who wanted to use their industry as the promoting agency.  The labelling, will include copyrights for its original holders, the agreement is in between the music industry and the people behind a certain musical records. 

Utilizing still the Porter’s Five Forces Model, the buyers of a certain music industry is depended on their listeners through the labels and the concerts.  The labelling in this manner came from different distribution channels, promotional media, retail outlets and customers with playback devices.  The only threat of a music industry during the times when the business does not utilize the internet is the emergence of new popular sounds and new bands.  Moreover, the threat will also include new record labels and other musicians and for the audiences the threat would possibly be the digital lifestyle due to the technological progress. However, the music industry’s marketing or business strategy may also have its own substitute.  This enters music videos and movie soundtracks in which they can use as an alternative to get the attention of their target market.  Moreover, labelling may include different variance such as tape, cassettes, CD of DVD.  On the other hand, the substitutes for the music industry for the audiences may include new media, peer-to-peer audiences and the digital lifestyle as well (Henderson and Mihas, 2000).

Likewise, the music industry also value brands and brand creation. Indeed, in any firm, building brand is a significant management skill. Branded product lines generate a distinct set of benefits that is covered within a recognizable character. Along with these products are the connection between the customers and the product. In the music market, the artists are the brands themselves. When the brand is strong and powerful enough, it produces an image and identity for a certain product or company. This further establishes the relation between brands and consumers. When the requirements of the customers are met by particular music brands, consumers tend to become loyal. Upon failing to do so, consumers are quick to patronize other brands.

 

UK Music Industry’s Marketing Strategy

            The UK music industry is enjoying a boom as new artists are breaking through the scene and the people are lapping them up. Not including compilations, CD sales are higher than ever and albums by British artists have hit a seven-year sales peak in 2005 (Youngs, 2006). According to a recent survey by research firm XTN Data, around 85% of people buy at least one album monthly. Legal song downloads are also enjoying sales increase (Youngs, 2006).

            Although online digital music sales are a small fraction of the overall UK music market, they are increasing rapidly. According to the International Federation of the Phonographic Industry (IFPI), online sales tripled in 2005 to reach 6% of the overall market (Reimer, 2006). In another report, it was revealed that legal song downloads more than quadrupled in 2005 (Youngs, 2006).

            According to the British Phonographic Industry (BPI, 2006), in 2005, the UK's digital music business was worth $69m, bigger than Germany ($39m) and France ($28m) combined. The $69m / £38m total was split £25m a la carte downloads, and £13m mobile – which does not include an estimated £2.5m from subscriptions (BPI, 2006). As more sales move from CD to online transactions, the UK music companies are enjoying increased profits as a result of lower costs for digital distribution compared to the costs for physical media.

            However, the growth of legal music downloads is being challenged by illegal filesharing. In a report by TNS Worldpanel (2006), the cost to British music of illegal filesharing reached £1.1bn from 2003 to 2005. Figures estimate the cost to British music in 2005 of people illegally filesharing rather than paying for music was £414m; 2003 had £278m lost sales and 2004 had £376m lost sales (BPI, 2006). According to Peter Jamieson, BPI chair: “The UK record industry is the biggest single investor in British music. Too often people believe that when they take music illegally over the Internet it is a victimless crime. But when people share music files illegally, they are stealing the future of British musicians and the people who invest in them” (BPI, 2006, p. 1). The figure below shows the change in spend on entertainment products in the UK.

            The downloading of free music by young consumers is also a particular concern for the music industry in many countries worldwide. In the United States, evidence shows that these consumers are purchasing less music: Between 1991 and 2000, the overall market share declined from 18.1% to 12.9% for 15-19-year-olds, and from 17.9% to 12.9% for 20-24-year-olds (Recording Industry Association of America, 2001). Understandably, these findings raise concerns about the future of music as a product, particularly with regard to young consumers, whose future music-purchasing habits are being influenced by the availability of free music over the Internet.

            Offsetting the above concerns are predictions that delivery of music over the Internet, that is, music as a service, will expand significantly through the coming years. Aside from the sale of physical music products over the Internet, sales of music downloads may increase significantly over the next few years. Most downloadable music sales are expected to take the form of subscriptions, wherein users pay a monthly fee to gain access to and download as many songs or albums as they choose. Estimates indicate a rapid increase in both a la carte and subscription music sales. While the predictions may be overly optimistic, the distribution of music as a service (rather than a physical product) likely will grow significantly in the future and will comprise an increasing proportion of overall music sales.

             Free music online has redistributed power in the music industry from music labels to individual consumers. The record labels have attempted to thwart the efforts of free music providers through the creation of copyright-protected files and through lawsuits against providers of free music. According to Sherman (2001, p. 36): “Ultimately the best response to online piracy is a legitimate alternative.” Currently, record labels are increasingly competing with free filesharing systems for consumers. To compete effectively in this context, labels will need to come up with marketing strategies aimed at encouraging consumers to legally download music or buy physical music products online.

The market of music in the United Kingdom is very big. Aside from the large population of the place, music is also highly relevant in the lives of the people. Various artists in the international arena came from United Kingdom. Undoubtedly, music in this area makes it big in business. The market reach of this industry is not only concentrated on the domestic or local level but as well as in the international level. 

According to Youngs (2006), the UK music industry enjoys its ‘boom’ today. Specifically, the business is booming as talented new artists are breaking through and the public are lapping them up. Moreover, the industry asserts that excluding compilations, CD sales are higher than ever and albums by British artists have hit a seven-year sales peak. In fact, 85% of its people buy at least one album per month and the legal song downloads have even quadrupled. As a result, the continued investment in the UK record’s industry is definitely paying off. And this success has been the basis of building digital business. More importantly, there has been a strong growth within downloads as well as within the mobile space. 

In 2004, there has been a price war on the online music market between Apple and the RealNetworks. Specifically, there has been a cutback on the price of online music by the RealNetworks Company. Because of this, it directly undercut its arch-rival Apple. They sell their music products half of the price of Apple. And, this move has created a fuss on the market competition for online music. (BBC News, 2004)  

The situation presented above greatly reflected the nature of e-commerce on the music industry in the United Kingdom. Obviously, this is an actual case on the music industry of UK. More importantly, the case presented a promotional tactic in order to acquire a large market of online music. In addition, the cutting of prices did not only outsmart its competitor but also encouraged people who are currently downloading illegally to start buying online music legally.   

Indeed, the year of 2005 has been a good year for the music industry in UK. This is because of the claimed victory in its first battle with the illegal file-shares. Twenty people have paid £50,000 in order to settle their crimes out of court. The illegal sharing was done through the use of different file sharing software such as Kazaa peer-to-peer network, Imesh, Grokster, WinMix and BearShare. The compensations payments were returned to the music copyright holders. (BBC News, 2005)

 

 

Chinese Music Industry

Because of the rapid changes in the market environment, music industries all over the world are trying to initiate their own marketing strategy and Chinese music industry is never an exemption. In the Chinese music industry it is said that the only sale of music in a virtual approach is through the booming of the ringback and ringtone market that generated a $1.5 bln in revenues for China mobile in 2007. However, the emergence of this market caused some problems with the labels and artists of Chinese music industry.

Currently, the music industry that is considered as the big winner in China is Baidu with business mainly focused on digital music. Scholars believed that China represents rock bottom for their music industry, specifically on the economics of the creative side. It is said that CD business for music industries in China has disappeared and the businesses which have emerged have not been able to help the artists.

In an article by Kennedy (2006) he has mentioned that in this generation, Chinese market can be considered as the most exciting new market in the global market, especially for the international recording industry. Having been able to realise the potentialities of the Chinese market, major international record industries have been bale to establish their presence in the country. For instance, EMI has launched a joint venture with one of China’s recording industry, i.e. Shanghai-based Push Sound. On one hand, other multinational industries to enters the Chinese music market include Sony BMG which established a partnership with Shanghai Audio and Visual Press; Warner Music Group, one the other hand has created a local version of the industry which is the Warner Music China and Universal Music have been associated with the Shanghai Media Group.

In addition, independent industries are also seeking for new opportunities to invest in China and enter the music industry in the county. For instance, some music industries are experimenting with new types of business model which is not common in the market. Accordingly, the Chinese music market in this period of time has a picture of untapped competencies. The nation has a population of more than 1.3 billion which is one sixth of the total population of the world. The Chinese music industries target market includes the rising numbers of middle class with disposal income and young people who are music enthusiasts.

Many believed that if Chinese market and music industry will work together, the country may experience an exciting growth in the years to come. Chinese music industry is also being challenged by the emergence of various digital music services.  Presently, there are five legitimate digital music industries in China and this is forecasted to increase more in the next years.  The transition of China to digital has been reflected across the globe. In this regard, the record and music industries have rapidly changed themselves from an enterprise dominated by revenue streams like radio and physical retail sales to one of various licensing channels, from the use of ringtone to subscription music service, from mobile downloads to the music video. In the article, it has also mentioned that China has been able to cope into the digital period with the help of the music industry. It is said that great opportunities comes with various challenges and the music industry of China is now facing various challenged. One of the challenges is the issue on the development of a legal environment, promotion of legitimate music channels and most of all to destabilise the culture of music piracy in the market which affects the music industry in a negative manner.

 

Government Policy of UK and Chinese Music Industry

            The music industries all over the world have been threatened by different challenges and one of this is about piracy. Basically, piracy is a criminal activity being theft of others’ intellectual property.  In relation to the music industry, piracy is considered as unauthorized copying and in this aspect falls into 3 categories (IFPI, 2004c):

 

n            Piracy is the illegal copying of an original recording for commercial profit without the permission of the rights’ owner. Herein, the packaging of pirated copies differs from the original one.

n            Counterfeits which are copied and packaged to be like the original as closely as it can be. In this regard, the original producer’s trademarks as well as their logos are reproduced so as to mislead the targe audience into believing that they are purchasing the original product.

n            Bootlegs referred to the unauthorized recordings of broadcast or live performances. Such copying refers mostly to Audio and Video CDs only.

 

The advent of the mass-produced CD has changed the face of piracy from a problem largely confined to local borders to a sophisticated which include Laser Discs (LD), Video Compact Discs (VCD) and Digital Versatile Discs (DVD), are inexpensive to manufacture and easy to distribute. In 2000, over 20 million pirated optical discs were seized, and by comparison, 4.5 million videos were seized worldwide in the same period. Unlike traditional analog piracy, a digital pirated disc is as pure and pristine as the original (MPAA, 2004).  In addition, a production facility can churn out huge volume of illegal discs in relatively short time (MPAA, 2004).

            Wit this challenge, the government of UK and China has been able to regulate their own policies to protect their music industry. As compared to other media industries like press or the broadcasting, the music industry of UK has not been considered as the object of much governmental interest except on the notion of occasional amendments of copyright law. However, in the 80s, British music industry has been given emphasis in terms of the development of the local government cultural industry policy implementations, and since the 1997 election, the labour government has changed the policies of UK music industries to the national level through the establishment of Music Industry Forum, Creative Industries Task Force and others. Part of this was the provision of the British Department of Culture, Media and Sports (DCMS), regarding the three strands of the music policy which include the education and training (both as an element of employment regulation and as a policy for securing British Music industry’s future talents and artists base); rights protection which is specifically made for the protection of the British rights in global environmental situation and in new technology; and social inclusion which is referred to the use of music to articulate the modern multicultural British for the nation and for the global brand of the UK’s music industry. It can be said that the policy of UK begs two essential aspects: first, it shows that the British music industry is equivalent with their record industry and secondly, the policy assumes that there is a modified national music interest (Frith, 2000).

            Unlike in other nations, the intellectual property protection of China as part of their government policy for music industry is still at its early phase for a market economy. The condition of the IPP in China is the same to the situation of the protection of the environment which shows that there is a gap between the day-to-day reality and government policy. The enforcement of intellectual property policy can also be considered as ineffective and weak in most parts of the nation. because of the local protectionism and because of the lack of an independent enforcement authorities to implement the polices, infringers of intellectual property are mostly not punished or prosecuted. Although, the government is issuing fines, the fines are noted to be low to defer or eliminate infringing operations.

            During the last years, Chinese government policy for music industry’s ip protection has seen essential improvements. In china, internet piracy has rapidly increased in China which threatens to strangle the improving legitimate digital music market. In addition, China has seen an alarming growth in websites, and other streaming sites along with illegal-file sharing which needs attention. Chinese music industry in cooperation with the government agencies is said to stepping up their attempts to eliminate the infringing internet sites from the networks. In 2005, China has sent over a thousand warnings which aims on taking the sites down through ISP’s. However, the government has find this process to be slow and cumbersome hence, they have proposed new internet regulations to give incentives for ISPs who are effectively fighting piracy and shift the burden of accountability for tackling infringement towards the ISPs.

Progress of IPP is considered to be more visible in big cities in the country. In Beijing, for instance, a copyright protection centre was established by the government in 1993 to protect the rights of the artists in their music industry as well as in the performance arts. In this regard, it can be said that China are trying to improve their government policy to protect their music industry (Objectiva Software, 2008).

The music industry relies greatly on copyrights. Copyright enables record companies to provide sufficient capital and enterprise in producing commercial recordings that can be exploited in both local and overseas markets as they contain legal protection to counter unauthorized reproduction. Furthermore, copyright is significant in assuring that all talents used by successful artists are given due recognition and reward. In the music industry, there are two significant copyrights involved (Monopolies and Mergers Commission, 1994). The first copyright protects the performance and efforts employed to create the product, including those of the artist and the composer. The second copyright protects the actual sound recording involved in the production of the music when a certain artist completes a musical work and is recorded. 

            Normally, the sound recording copyright is owned by the record company, although copyrights may be granted or licensed to others. These copyrights are vital to the owners as they provide several rights, such as the sole right to produce product copies as well as the exclusive right to perform the music piece in public, including broadcasting. Moreover, performing the record in public, such as in public places, radio or television, permits record companies to receive license fees. Copyright is interpreted as territorial in its application and is enforced by international agreements (Mansell and Steinmueller, 1995).

 

Business Strategy for Music Industry

Business model is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets (Rindova & Fombrun, 1999).  Only firms that continuously upgrade their competitive advantages over time are able to achieve long-term success with their strategy and implementation.  Choosing the appropriate business model is intended to create differences between the industry’s positions relative to those of its rivals (Porter, 1980). To position itself a firm must decide to whether it intends to perform activities differently or to perform the different activities as compared to its rivals.  Thus, the firm’s business model is a deliberate choice about how it will perform the value chain’s primary and support activities in ways to create unique value. Over the years, different companies and organization are trying to utilize the business model in which they think should bring success to the over-all performance of a business.  In addition, business model is also referred as the mechanism or system by which any firm or business aims to produce profit or revenue.  It is the totality of how the industry intends to serve its target market.  It involves both the marketing strategy and its strategic implementation.   Throughout the years, the uses of business model are regarded as complicated and sophisticated.  Business models have different kinds. 

However, the business model that has been used by the music industry prior to the emergence of the internet is the basic business model which is the subscription business model.   In this chosen model, different music industry like Sony Music, or EMI do not sell their products directly. Instead, these industries are selling their products monthly or annually.  In this model, the effect simply lies on the conversion of a one-time sale of a particular music labels or musical records into a frequent sale of a product.   This to know where the target market lies, providing their products on time that they know it will hit the target market and tries to promote it through advertisement. 

Prior to the use of Internet, music industry’s competition depend largely on how they locked their consumers.  This means that the music industry is in control of their consumers by means of the kind of music that the music industry will offer.  The relationship between the organization and the consumers are being embedded to consumer as a buyer and the organization as the producer.  In this manner, the consumer would tend to buy the music products from the store just to hear the particular songs that they wanted to listen to. Herein, it does not matter whether the other songs or tracks included in the album may or may not attract the consumer.  In addition, the music industry prior to the use of internet tries to market their products depending on the artists or the musicians and the labels that they have. 

Using the Porter’s Five Forces Model (See Appendix 1), the model of the music industry can be seen in Table 1.  As can be seen in the table the competition for the music industry vastly depends on the musicians in which the industry has.  And the competition not only lies within music industry but also to its rival competitors.  Moreover, the competition on the labels is very tight since consumers have different taste when it comes to music and its label. The music industry depend its profit on the musicians and the artists.  On the other hand, in the suppliers of the music industry will also depend on the musician, labelling and the consumers.  Herein, a certain music industry likes for example the Sony. The company will be able to get their supplies from those musicians who wanted to use their industry as the promoting agency.  The labelling, will include copyrights for its original holders, the agreement is in between the music industry and the people behind a certain musical records. 

Utilizing still the Porter’s Five Forces Model, the buyers of a certain music industry is depended on their listeners through the labels and the concerts.  The labelling in this manner came from different distribution channels, promotional media, retail outlets and customers with playback devices.  The only threat of a music industry during the times when the business does not utilize the internet is the emergence of new popular sounds and new bands.  Moreover, the threat will also include new record labels and other musicians and for the audiences the threat would possibly be the digital lifestyle due to the technological progress. However, the music industry’s marketing or business strategy may also have its own substitute.  This enters music videos and movie soundtracks in which they can use as an alternative to get the attention of their target market.  Moreover, labelling may include different variance such as tape, cassettes, CD of DVD.  On the other hand, the substitutes for the music industry for the audiences may include new media, peer-to-peer audiences and the digital lifestyle as well (Henderson and Mihas, 2000).

Likewise, the music industry also value brands and brand creation. Indeed, in any firm, building brand is a significant management skill. Branded product lines generate a distinct set of benefits that is covered within a recognizable character. Along with these products are the connection between the customers and the product. In the music market, the artists are the brands themselves. When the brand is strong and powerful enough, it produces an image and identity for a certain product or company. This further establishes the relation between brands and consumers. When the requirements of the customers are met by particular music brands, consumers tend to become loyal. Upon failing to do so, consumers are quick to patronize other brands.

               Changes and marketing approaches would have to be altered accordingly. Indeed, the Internet has been the most significant phenomenon to strike the Music Industry since its inception (Ashurst, 2001, p.101). Within the Music Industry the Internet is no longer a “neglected” medium (Mathews, 2001) as it has been researched significantly. This development however, still presents many challenges in marketing music through the internet. Despite the research and a genuine eagerness to make the Internet work for the music industry, marketers’ research and practice have been so far thwarted in uncovering an effective method to use marketing on the Internet (Holt and Watters, 2004). Marketing a band for instance, has been known and practiced by the industry. Nonetheless, internet marketing had simplified this role. Music marketers should then consider the establishment of a relationship between digital media with other forms of communication. 

Consumer behavior is perhaps one of the most interesting aspects of marketing because it deals with the individual characteristics of consumers.  It is basically the buying behavior of the final consumers which are the individuals and households who buy the goods and services offered in the market for their personal consumption (Kotler & Armstrong, 2001).  The main concern in marketing in relation to this aspect is whether consumers actually respond to the marketing strategies employed for the product (Best, 2004) which also gives rise to the model of consumer behavior within which most market researches circle around.

A good consumer behavior model was introduced by Kotler & Armstrong (2001) which discusses the process with which the consumers respond to the different product features, prices and advertising.  Figure 1 shows that the starting point consists of the stimulus-response model wherein marketing-focused factors which involve product, price, place and promotion and other stimuli which include outside factors in the market environment enter the “black box”.  This contains the individual buyer characteristics and decision processes.  The third component of the model involves the actual responses to the marketing efforts which can translate into product choice, brand choice, dealer choice, purchase timing and purchase amount among others.  It is fitting the end goal of marketing which is to gain consumer loyalty (Chow & Holden, 1997; Ducques & Gaske, 1997; Levitt, 1986).

Figure 1

Model of Consumer Behavior

Text Box: Marketing and other stimuli
 
Marketing
Product
Price
Place
Promotion
 
Other
Economic
Technological
Political 
Cultural
 
Text Box: Buyer’s Responses
 
Product Choice
Brand Choice
Dealer Choice
Purchase timing
Purchase amount
Text Box: Buyer’s Black Box
 
Buyer Characteristics
 
 
Buyer Decision Process
 

 

 

 

 

 

 

 

 

 

 

 


 

Piracy of Intellectual Property Right (IPR) works music, audio-visual works and computer software for both business and entertainment purposes is continuing to have a significant impact on the interest of both the IPR owners and the legitimate intellectual property industry as huge demands for pirated CDs hinder IPR protection. Software piracy refers to the copying of software, producing it usually in bulk for sale through unauthorized shops, unlike the purchase of original disc copies from official distributors. Further, pirated CDs involve larger volumes and dollar value compared to the manufactured clothing, medicines, watches or beverages as these generally only appear as counterfeits and in much smaller volumes.

 

Implication of Internet to Music Industry

            In the Music industry, increased market competition identifies continuous adjustment and improvement in the production lines, outsourcing and supply chain management of companies. Interdependence and participation of suppliers and manufacturers in product design, innovation, as well as research and development characterize the current international business environment resulting to market volatility (Sobrero & Roberts, 2001; Appleyard, 2003). These organizations usually share proprietary corporate data with external suppliers and partners while ensuring maximum security to enhance efficiency across the product lifecycle by streamlining procurement, production, fulfillment, and distribution processes (Katsikeas, Schlegelmilch & Skarmeas, 2002) which requires integration of applications and data across multiple geographically dispersed supply chain partners, as well as internal integration with legacy systems (Katsikeas, Schlegelmilch & Skarmeas, 2002; Appleyard, 2003).

            Recently, Rabinovich and Carter, (2003) illustrated the efficiency of e-based transactions in an internet retailing supply chain in the music CD industry. However, they also emphasized that e-based transactions may also affect negatively the music industry.  Recent technological and market forces have profoundly impacted the music industry. Emphasizing threats from peer-to-peer (P2P) technologies, the industry continues to seek sanctions against individuals who offer significant number of songs for others to copy (Rabinovich, E et. al. 2003). Yet, Rabinovich, E et.al. (2003) suggested that there should be a little rigorous empirical analysis of the impacts of online sharing on the success of music products.

 

Appendix 1

 

 

 

 

 

 

 

 

 

Figure 1:  Porter’s Five Forces Model

Source:  Porter, M. E. (1980).  Competitive Strategy. Free Press

 

College of Business

UNIVERSITY OF WESTERN SYDNEY

College of Business

 

School of Management

 

 

ASSIGNMENT COVER SHEET

 

STUDENT LAST NAME

 

STUDENT FIRST NAME

 

STUDENT NUMBER

 

UNIT NAME/UNIT NUMBER:

200300/Managing People at Work

TUTORIAL TIME

 

CAMPUS OF ENROLMENT

Parramatta

UNIT CO-ORDINATOR

Nadine Campbell

LECTURE NAME

Tyrone Kirchengast

TUTOR NAME

Tyrone Kirchengast

TITLE OF ASSIGNMENT

Annotated Bibliography, Matrix and Essay

DUE DATE

1/2/2008

DATE SUBMITTED

 

 

DECLARATION:

I hold a copy of this assignment that I can produce if the original is lost or damaged.  I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment.  No part of this assignment/product has been written/produced for me by any other person except where such collaboration has been authorised by the subject lecturer/tutor concerned.

 

Signature: __________________________________

 

Note:    An examiner or lecturer/tutor has the right not to mark this assignment if the above declaration has not been signed.

 

Academic misconduct will not be tolerated and will be dealt in accordance with the UWS Academic Misconduct Policy.

PART A – References

Students are required to locate and accurately document the bibliographic details of ten (10) sources NOT listed in Part B via WebCT and which are relevant to the question – How has the decentralisation of the Australian industrial relations system impacted on the various stakeholders?  Your references need to be a representative sample of resources (i.e. not just newspaper articles or books, but from all areas – newspapers, academic journals, books, scholarly websites, etc.) The reference details must use the School of Management’s Harvard style format found in the Essay Writing Guide.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part A – Reference List – 5 Marks

U*

F

P

C

D

H

Representative Sample

 

 

 

 

 

 

School of Management’s Harvard Style

 

 

 

 

 

 

Includes all relevant information including website details

 

 

 

 

 

 

Alphabetical Order

 

 

 

 

 

 

Indented Properly

 

 

 

 

 

 

Text Box: /2.5

 

*U = Unattempted;  F = Fail;  P = Pass;  C =Credit;  D = Distinction;  H = High Distinction

 


 

PART B - Annotation 1

Each annotation should be 500 words (maximum) not including the reference and is worth 5 marks each.

 

Full reference details of the source using the Harvard style of referencing:

 

Bray, M., and Waring, P. (2006) “The Rise of Managerial Prerogative under the Howard Government.” Australian Bulletin of Labour. 32(1) 45

 

Main Theme/Purpose and Main Arguments/Idea – What does the author/s aim to do?  How does the author/s go about achieving its purpose?

 

The article of Bray and Waring examines the industrial policies of the Howard administration. More specifically, the terms covered in the Workplace Relations Act 1996 (cth)(WRA) which was the main legislative initiative of the Howard administration since it started its leadership in Australia. The study maintained that this set of labour regulations have influenced the non-wage aspects in the workplace level. More specifically, the decision-making processes has been significantly augmented the context of managerial prerogative in the workplace setting. In the same regard, the study maintained that these changes in the power have e substantive outcomes.

 

Significance – Why is the piece important/how does it help us address the question?

The piece is important to answering the question because it provides an account of the implications of the decentralisation of the industrial relations system with reference to the employer-employee relationship. Unlike the Pocock and Masterman-Smith (2006) paper below who looked at a specific demographic, this article covers the general workforce. This thus provides a more generalised standpoint on the implications of the labour reforms and the power play between the employers, employees, and unions as stakeholders. In addition, the paper was able to help in pinpointing the specific areas which affected the work settings in Australia. For instance, the awards required to give by the common organisation has significantly declined; enterprise agreements have lost its power; union membership has declined; and a shift towards individual bargaining is observed.

 

Critique & Personal Reflection – What was good and bad about the piece?  What did you find most interesting/what questions do you have?

 

At some point, the discussions of these observations given by Bray and Waring tends to display the development of the workplace setting with the reforms, especially the changes in the “non-wage” elements of employment. However, upon a deeper perusal of the article, it appears that it is a direct assault on the reforms of the Howard administration on the labour laws. More particularly, the study was an eye opener on how the administration has systematically chopped the ascendancy of labour unions in the Australian setting. Are these reforms a deliberate way of slowly ridding of the employee representation in Australia? Personally, I think the intent of the state to encourage economic development has severely compromised the welfare of the stakeholders of the labour sector; there is some imbalance in power and representation has been taken for granted.  

The study was well researched with a combination of statistical and legal data coming from secondary sources. Needless to say that the article have established a sound argument indicating that the “developments” made by the Howard administration has not only given ascendancy on managerial prerogative but also obliquely limited, if not taken away, the strength of unions in Australia. The problem in this regard is that unions and employers should work hand-in-hand to provide a great outlook on the welfare of Australia’s workforce; the latter by ensuring that they have opportunity for employment and the former by ensuring that they have everything they need to carry out the job expected of them.

 

 

 

 

 

 

 

 

 

 

 

 

Part B Annotation One – 5 Marks

U*

F

P

C

D

H

Reference in Harvard Style (1 Mark)

 

 

 

 

 

 

Main Theme/Purpose and Main Argument/Idea(1 Mark)

 

 

 

 

 

 

Significance (1 Mark)

 

 

 

 

 

 

Critique & Personal Reflection (2 Marks)

 

 

 

 

 

 

Text Box: /5

 

*U = Unattempted;  F = Fail;  P = Pass;  C =Credit;  D = Distinction;  H = High Distinction

 


 

PART B - Annotation 2

Each annotation should be 500 words (maximum) not including the reference and is worth 5 marks each.

 

Full reference details of the source using the Harvard style of referencing:

Forsyth, A. (2006) “Arbitration extinguished: the impact of the Work Choices legislation on the Australian Industrial Relations Commission. Australian Bulletin of Labour. 32(1), 18.

 

 

Main Theme/Purpose and Main Arguments/Idea – What does the author/s aim to do?  How does the author/s go about achieving its purpose?

 

 

The study of Forsyth focused on the implications of the 2005 amendments on the Workplace Relations Act 1996 (cth) on the Australian Industrial Relations Commission (AIRC). Specifically, the article built its arguments on the premise that the AIRC has been “sidelined” with the emergence of the 2005 amendments on the legal framework of the labour sector of Australia. They expounded this argument by pointing out certain aspects and implications on the work settings in Australia. First, they pointed out the specific changes on which the AIRC’s powers has been curtailed and the roles limited prompting the members of the commission to circumvent limits pointed out in the existing legislation. Another objective that the paper indicated is the new scheme for voluntary dispute resolution. In this aspect the study, a discussion on the model dispute resolution process was made indicating the new restrictions on the commission to carry out what was considered as normal procedural powers bestowed to them. Such powers include summoning witnesses and ordering documents to materialize. The third objective of the study was to indicate the implication of the amendments on the 2005 Act in roles of the AIRC as a government entity. More specifically, the discussions covered how the AIRC implements dispute resolution under workplace agreements, overseeing bargaining and protected industrial action, and the limited scope that now exists for implying good faith bargaining obligations. Essentially, Forsyth described the AIRC as an entity that finds ways to bend rules to effectively implement their mandate despite of the “roadblocks” provided by the 1996 Act and its consequent amendments.

 

 

 

 

 

 

Significance – Why is the piece important/how does it help us address the question?

 

 

The study of Forsyth is significant in answering the question of the implications of decentralisation because it highlights its effects on the state itself. This shows that the reforms made by the Howard administration not only made alterations on the work setting level as indicated in the paper of Bray and Waring (2006), state institutions who deal directly with issues on labour. In the case of the AIRC, it was implied that the commission was deliberately being made obsolete as the reforms on the labour laws have significantly reduced its power without truncating its mandate, which may well went over the line. If ever this may be the case, the reforms of the Howard administration might want the commission to fail in its mandate so as to have a reason to dissolve it completely. Forsyth even pushed it further by indicating that it might be the intent of the state to set up a new alternative dispute resolution industry among private entities in Australia.

 

Critique & Personal Reflection – What was good and bad about the piece?  What did you find most interesting/what questions do you have?

 

 

All in all, the study was again well-researched and did a fair job by focusing on a particular role of the AIRC, which is to conduct ADR practices. Before reading the article, one must first be acquainted with the fact that conflict in the labour sector is a universal constant. Thus, institutions like the AIRC are indispensable for the labour sector. In the discussions of Forsyth, it appears that the commission still has a significant role in the Australian setting. 

 

 

 

 

 

 

 

 

 

Part B Annotation One – 5 Marks

U*

F

P

C

D

H

Reference in Harvard Style (1 Mark)

 

 

 

 

 

 

Main Theme/Purpose and Main Argument/Idea(1 Mark)

 

 

 

 

 

 

Significance (1 Mark)

 

 

 

 

 

 

Critique & Personal Reflection (2 Marks)

 

 

 

 

 

 

Text Box: /5

 

*U = Unattempted;  F = Fail;  P = Pass;  C =Credit;  D = Distinction;  H = High Distinction

 


 

PART B - Annotation 3

Each annotation should be 500 words (maximum) not including the reference and is worth 5 marks each.

 

Full reference details of the source using the Harvard style of referencing:

 

Pocock, B. and Masterman-Smith, H. (2006) "WorkChoices and Women Workers." Journal of Australian Political Economy.

 

Main Theme/Purpose and Main Arguments/Idea – What does the author/s aim to do?  How does the author/s go about achieving its purpose?

 

 

The work of Pocock and Masterman-Smith tackles the social implications of the Work Choices packages provided by the Howard administration. More specifically, the discussions are focused on the implications of the said legal framework on equality and quality of life of women workers in Australia. The arguments in the paper are based on the premise that the Work Choices package gives no possibility of “ameliorating the impacts of low pay and the work/life collision on women workers.” In this regard, one could already see the leanings of the paper. Feminist arguments are thus anticipated along with discussions centring on the effects of the legislation on the family. The discussions then went on to provide a summary and interpretation of the statistics of women workers from Australia with particular focus on the employment conditions. In addition, the said statistics are further equated to their household and family conditions. In this section, the gist of the discussion indicated that women’s pay is not commensurate the needs of a particular household, especially in conditions where single parenthood is involved.

 

Significance – Why is the piece important/how does it help us address the question?

 

Moreover, the observations of the authors on the implications of the Work Choices package of the Howard administration emulates what Barry and Waring (2006) has observed in their paper. More specifically, the decrease of awards and the limits in the enterprise agreements have similarly been noted in the study. However, Pocock and Masterman-Smith has provided a more comprehensive look at the topic as they used statistics to relate the said observations on the implications of the law on women worker. More specifically, the statistics that they have used includes those relating to the benefits of the female workers like leave credits and specific loadings.

Critique & Personal Reflection – What was good and bad about the piece?  What did you find most interesting/what questions do you have?

 

 

The discussions of the paper have provided a detailed account of the implications of the legislation on the conditions of women workers. It held true on its premise with the implementation of statistics, literature, and a clear examination of the legal structures in its discussions. This means that it was a great piece. All the arguments are backed up by statistical facts and accounts on the conditions of women in the Australian setting. One of the problems seen in the paper is that the secondary statistical data, though it was at least three or four years before the article was made, was rather not sufficient to provide some conclusive arguments on the claims of the author. Essentially, the discussions have established that the Howard administration failed to a certain extent in considering the social implications of the reforms that they have implemented in the labour sector. However, the author may similarly have been overly romanticising the plight of women as the sole bearer of the inequalities bestowed by the reform. All employees, as mentioned in the study of Bray and Waring (2006), do experience it. However, by focusing more on the economic implications of the changes in policy, the Howard administration has given a boost in gender inequality within the working sectors in Australia.

 

 

 

 

 

 

 

 

 

 

 

 

 

Part B Annotation One – 5 Marks

U*

F

P

C

D

H

Reference in Harvard Style (1 Mark)

 

 

 

 

 

 

Main Theme/Purpose and Main Argument/Idea(1 Mark)

 

 

 

 

 

 

Significance (1 Mark)

 

 

 

 

 

 

Critique & Personal Reflection (2 Marks)

 

 

 

 

 

 

Text Box: /5

 

*U = Unattempted;  F = Fail;  P = Pass;  C =Credit;  D = Distinction;  H = High Distinction

 

 


 

PART C – Comparative Matrix

Students must compare and contrast the ideas/arguments of the authors using the three sources annotated in Part B.  In doing so, students must develop 5 comparative arguments to analyse the material and record findings in the following matrix within 500 words (maximum). The arguments highlighted should form the basis of your essay which addresses the question:  How has the decentralisation of the Australian industrial relations system impacted on the various stakeholders? 

 

 

Bray, M., and Waring, P. (2006)

Forsyth, A. (2006)

Pocock, B. and Masterman-Smith, H. (2006)

Legal framework Used

Workplace Relations Act 1996 (cth)(WRA) have made significant implications on the workplace setting

Workplace Relations Act 1996 (cth) have made curtailed the role of Australian Industrial Relations Commission (AIRC)

Workplace Relations Act 1996 (cth) or (WorkChoices)

Stakeholders Discussed

Employees, Unions, and Employers have experienced shifts in the power and influence with the amendments in the Act.

The Australian Industrial Relations Commission (AIRC) has been having trouble accomplishing its mandate because of the outlined role in the Australian setting.

Women workers experience heightened inequality in the ratification of the 2005 amendments.

Areas Centred

Managerial Prerogative has given a considerable boost with the 2005 amendments

Dispute resolution processes in Australia has become rather pressing for the AIRC

The preference on the economic implications of the law has made adverse implications on the social conditions in Australia.

Effects of Decentralisation

Employees and unions are less empowered with the ratifications of the 2005 amendments

The Australian Industrial Relations Commission (AIRC) have lost and retained powers as caused by the 2005 amendments

Gender inequality and Household income are directly influenced by the 2005 amendments 

Judgement on the Howard Administration

Howard administration fall short on its ambitious objectives in labour reform

Howard administration made the Australian Industrial Relations Commission in constant danger of obsolesce

Howard administration made life worse for the women workers in Australia.

 

Part C – Comparative Matrix

U*

F

P

C

D

Text Box: /10

 

H

 

Areas of Comparison

 

 

 

 

 

 

Comparative Findings Reference 1

 

 

 

 

 

 

Comparative Findings Reference 2

 

 

 

 

 

 

Comparative Findings Reference 3

 

 

 

 

 

 

Evidence of Essay Structure/Argument

 

 

 

 

 

 

*U = Unattempted;  F = Fail;  P = Pass;  C =Credit;  D = Distinction;  H = High Distinction


 

PART D – Essay (1200 words maximum)

Based on the comparative matrix of the three articles annotated and the 10 references listed in Part A, write an essay to address the following question: How has the decentralisation of the Australian industrial relations system impacted on the various stakeholders? 

 

 

The decentralisation processes in the industrial relations system in Australia has been considerably influential in the different areas related to the labour sector. For this study, several stakeholders will be taken into consideration. These include the employees, unions, employers, and the Australian Industrial Relations Commission (AIRC). The common denominator between these stakeholders, aside from the decentralisation efforts in the industrial industry system, is the implications of the Workplace Relations Act 1996 (Cth). At the same time, these have been augmented further as amendments in the said legislation are imposed in 2005. (Shim 2001, 323)

In the context of employees, they have been among the primary end of the decentralisation. For instance, there have been studies that indicated that changes in the workplace setting have been observable as the decentralisation initiatives have taken place. (Bray and Waring 2006, 45) In the study of Mitchell, Juniper, and Myers (2006, 247) the decentralisation efforts in the labour sector has instituted an “unprecedented expansion of managerial prerogative.” This means that a considerable ascendancy has been given to employers in the organisation. In the economic aspect of such endeavour, companies have “has promoted cost-cutting, race-to-the-bottom strategies” which have been both detrimental and beneficial to the Australian workforce. One apparent implication is the boosted inequality in the employees. It has been noted in the case of the Australian labour sector that managerial prerogative tend to be based on a contract between the employer and the employee. (Lyons and Smith 2007, 26) In this scenario, the unequal standing between the two stakeholders is already apparent. In this regard, the decentralisation process has been in favour of the employer because to begin with, “the worker's need for employment is greater than the employer's need for any individual worker.” (Greig, Lewins, and White 2003, 189) In the simplest sense, the ratification of the decentralisation initiatives along with the amendments in the 1996 Act has reinforced the power of the manager to “hire and fire” employees. (Mitropoulos 1999, 77) In a sense, the security of the individual worker in his/her job has significantly encountered some level of uncertainty. Looking at this issue on the perspective of the Howard administration, it appears that the intent was to provide the individual worker or those that could be employed in the future to “increased labour market discipline; increasing the imperative to hold a job in order to survive; and provide employers to control the labour contract.” (Bessant 2000, 76)

Recent studies have indicated that employees could not afford to have this type of uncertainty. In the study of Pocock and Masterman-Smith (2006), they have maintained that the individual employee may not be able to handle the financial demands based on the living conditions in Australia, especially when compounded by the inequality in the workplace. Again, this inequality is a result of the labour initiatives of the Harold administration. Women workers, especially those considered as heads of the family or single parents have been rather suffering with the effects of the Workplace Relations Act 1996 (Cth). (Pocock and Masterman-Smith 2006) To some degree, women workers in Australia are finding it difficult to synchronise their time between work and family. (Morehead 2001, 355) In this regard, the ratification of the WorkChoices package in the Australian setting has weakened the safety nets in Australian society. (Pocock and Masterman-Smith 2006) In addition to that, the social costs of the ratification of the law have significantly been damaged not only on the part of female employees but the entire milieu of individual employees.  

Another clear indication of this adverse effect of the decentralisation is seen in the altered power of the labour unions. Labour unions basically represent the common employee on their struggle to acquire fair and equitable remuneration on their jobs. (Wever 1997, 499) However, this description of unions is incomplete. Their duties and responsibilities are also related with industry and enterprise performance to ensure that unemployment is essentially inexistent. (Bamber, Park, Lee, Ross, and Broadbent 2000, 45)  In the case of Australia, the ratification of the Workplace Relations Act 1996 (Cth) basically “highlights the importance of matching legislative change to the organizational resources, structures and strategies of the major actors involved.” Basically, this is done by legally by encouraging local and individual employment contracts as maintained in the said legislation.  (p501) Regardless of this phenomenon, labour unions are still doing their jobs in championing the welfare of the worker. In the study of Bray and Waring (2006, 45) they cited the case of the coal miner union’s unwavering effort to keep their awards despite the significant decreases implicated by the 1996 Act and the 2005 Amendments.

Further effects of the decentralisation of the industrial industries system in Australia is seen in the Electrolux case. (Bray and Waring 2006) This case highlights the enterprise agreements in the Australian setting. The said case indicated that the legislation significantly sustained a very narrow impact on organisations and has declined in the scope principally concerning employment relationships. Essentially, the case has placed added task on the Australian Industrial Relations Commission (AIRC) as they are tasked to hear every dispute that involves any employment relationship. 

Moreover, the Australian Industrial Relations Commission (AIRC) has also become the main alternative dispute resolution entity in Australia. Along with the mandate provided by the legal precedent in the Electrolux case, the ratification of the Workplace Relations Act 1996 (Cth) and the amendments in 2005 have established the AIRC as an arbitration entity in Australia. (Forsyth 2006) The problem in this regard is that the amendments in 2005 have significantly outlined the powers of the AIRS. Specifically, powers like summoning witnesses and documents were taken from their mandate.

To date, there have been accounts on the part of the AIRC that they have been bending the rules, so as not to break them, to keep their operations just and equitable. (Forsyth 2006) Given this authority, the AIRC has become one of the foremost authorities in the ADR sector as well as the most reliable. Though the said organisation does have some competition with the private sector, its reputation to do what is needed of them to resolve conflict, aside from the precedent made by the Electrolux case, is seen as the primary element that attracts complainants. The problem that the AIRC is appears to be the complete reliance on the existence of continuous conflict between parties. It is their constant need for resolving issues and managing conflicts between parties will be the determinant of their continued existence.

The points above have provided a clear indication on those who are directly affected by the decentralisation efforts of the government in the area of industrial relations. At some point, one must recognise that the Howard administration only seeks to improve the economy of Australia with the sole purpose of improving the standard of living of the public. However, the efforts of the government have proven to be rather wanting as it failed to achieve its ends when the reforms were implemented. However, the state failed to recognise the adverse effects of the legislation on the labour sector. In the end, despite the best intentions, the state has failed to provide what the public requires and what it needs to manage their already sordid lives.

 

 

 

 

 

 

 

 

 


 

 

Part B – Essay – 12.5  Marks

 

1.       Synthesis and Innovation (10%)

 

Clear intro, maps the sequence of essay and/or arguments

 

Addresses theoretical and practical

 

Conclusion synthesises, relates to question, points to further research

 

Demonstrates deep and/or broad understanding of issues

 

2.       Structure (15%)

 

Relationships between ideas are clear

 

There is a consistent theme or one main argument

 

Reflects analytical and critical interpretation

 

3.       Writing Style (10%)

 

Clear and cohesive

 

Direct and assertive

 

Grammar, syntax, and spelling

 

Good use of section headings and paragraphs

 

Appropriately formal and academic

 

4.       Arguments and Analysis (40%)

 

Logical and well developed

 

Significance shown and arguments made clear

 

Issues and sub issues clearly identified

 

Accounts for and disputes counter arguments

 

Sources analysed

 

5.       Presentation of Paper (5%)

 

Adheres to School presentations format (See Essay Writing Guide)

 

Lay-out makes it easy to read

 

Citations (No or poor citations may result in a maximum 4 mark penalty)

 

Reference List (No or poor reference list may result in a maximum 4 mark penalty)

 

 

General Comments:

 

 

 

 

 

 

 

 

 

/12.5

 

 

 

Assessment Mark:

   /40