Management in Action-Social Economic & Ethical Issue
- What do you understand by consulting process? Discuss phases of consultancy
The consulting process
During a typical consulting intervention, the consultant and the client undertake a setoff activities required for achieving the desired purposes and changes. These activities are normally known as “the consulting process”. This process has a clear beginning (the relationship is established and work starts) and end (the consultant departs). Between these two points the process can be subdivided into several phases, which helps both the consultant and the client to be systematic and methodical, proceeding from phase to phase, and from operation to operation.
Many different ways of subdividing the consulting process, or cycle, into major phases can be found in the literature. Various authors suggest models ranging from three to ten phases. 11 We have chosen a simple five-phase model, comprising entry, diagnosis, action planning, implementation and termination. This model, shown in figure 1.2, will be used consistently in our book.
Figure 1.2 Phases of the consulting process
- First contact with clients
- Preliminary problem diagnosis
- Assignment planning
- Assignment proposals to client
- Consulting contract
- Purpose analysis
- Problem analysis
- Fact finding
- Fact analysis and synthesis
- Feedback to client
- Developing solutions
- Evaluating alternatives
- Proposals to client
- Planning for implementation
- Assisting with implementation
- Adjusting proposals
- Final Report
- Settling commitments
- Plans for follow-up
A universal model cannot be applied blindly to all situations, but it provides a good framework for explaining what consultants actually do and for structuring and planning particular assignments and projects. When applying the model to a concrete situation it is possible to omit one or more phases or let some phases overlap, e.g. implementation may start before action planning is completed, or a detailed diagnosis may not be necessary or can be integrated with the development of proposals. It may be useful to work backwards from a later to an earlier stage. Thus evaluation can serve not only for a final assessment of the results of the assignment and of benefits drawn from change (termination phase) but also for deciding whether to move back and take a different approach. Every phase can be broken down into several sub phases or parallel activities. The whole model has to be applied flexibly and with a great deal of imagination. The consulting process can be viewed as a variant of the change proves (Chapter 4), one in which change is planned, managed and implemented with a consultant’s help. The reader may have seen various models of planned organisational change and may be interested in comparing them with the model in figure 1.2. The consulting process will be examined in detail in Chapters 7 – 11, but at this point it will be helpful to have short descriptions of its five basic phases. Entry In the entry phase the consultant starts working with a client. This phase includes their first contacts, discussions on what the client would like to achieve or change in his or her organisation and how the consultant might help, the clarification of their respective roles, the preparation of an assignment plan based on preliminary problem analysis, and the negotiation and agreement of a consulting contract. This is a preparatory and planning phase. It is often emphasised that this phase lays the foundations for everything that will follow, since the subsequent phases will be strongly influenced by the quality of conceptual work done, and by the kind of relationship that the consultant establishes with the client at the very beginning. In this initial phase, it can also happen that an assignment proposal is not prepared to the client’s satisfaction and no contract is agreed, or that several consultants are contacted and invited to present proposals but only one of them is selected for the assignment. Diagnosis the second phase is an in-depth diagnosis of the problem to be solved. During this phase the consultant and the client cooperate in identifying the sort of change required, defining in detail the purposes to be achieved by the assignment, and assessing the client’s performance, resources, needs and perspectives. Is the fundamental change problem technological, organisational, informational, psychological or other? If it has all these dimensions, which is the crucial one?
What attitudes to change prevail in the organisation? Is the need for change appreciated, or will it be necessary to persuade people that they will have to change? The results of the diagnostic phase are synthesised and conclusions drawn on how to orient work on action proposals so that the real problems are resolved and the desired purposes achieved. Some possible solutions may start emerging during this phase. Fact-finding and fact diagnosis often receive the least attention. Yet decisions on what data to look for, what data to omit, what aspects of the problem to examine in depth and what facts to skip predetermine the relevance and quality of the solutions that will be proposed. Also, by collecting data and talking to people the consultant is already influencing the client system, and people may already start changing as a result of the consultant’s presence in the organisation. Conversely, fact-finding has to be kept within reasonable limits, determined by the nature and purpose of the consultancy. Action planning the third phase aims at finding the solution to the problem. It includes work on one or several alternative solutions, the evaluation of alternatives, the elaboration of a plan for implementing changes and the presentation of proposals to the client for decision. The consultant can choose from a wide range of techniques, in particular if the client actively participates in this phase. Action planning requires imagination and creativity, as well as a rigorous and systematic approach in identifying and exploring feasible alternatives, eliminating proposals that could lead to trivial and unnecessary changes, and deciding what solution will be adopted. A significant dimension of action planning is developing strategy and tactics for implementing changes, in particular for dealing with the human problems that can be anticipated, and for overcoming resistance to, and gaining support for, change. Implementation Implementation, the fourth phase of the consulting process, provides an acid test for the relevance and feasibility of the proposals developed by the consultant in collaboration with the client. The changes proposed start turning into reality. Things begin happening, either as planned or differently. Unforeseen new problems and obstacles may arise and false assumptions or planning errors may be uncovered. Resistance to change may be quite different from what was assumed at the diagnostic and planning stages. The original design and action plan may need to be corrected. As it is not possible to foresee exactly and in detail every relationship, event or attitude, and the reality of implementation often differs from the plan, monitoring and managing implementation are very important. This is also why professional consultants prefer to be associated with the implementation of changes that they have helped to identify and plan. This is an issue over which there has been much misunderstanding. Many consulting assignments end when a report with action proposals is transmitted i.e. before implementation starts. Probably not more than 30 to 50 per cent of consulting assignments include implementation. If the client is fully capable of handling any phase of the change process alone, and is keen to do it, there is no reason why he or she should continue to use a consultant. The consultant may leave as early as after the diagnostic phase. Unfortunately, the decision to terminate an assignment after the diagnostic or action planning phase often does not reflect the client’s assessment of his or her own capabilities and determination to implement the proposals without any further help from the consultant. Rather it mirrors a widespread conception – or misconception – of consulting according to which consultants do not have to achieve more than getting their reports and proposals accepted by the clients. Some clients choose it because they do not really understand that even and excellent report cannot provide a guarantee that a new scheme will actually work and the promised results will be attained. Other clients may be happy because what they really wanted was a report, not change. Termination The fifth and final phase in the consulting process includes several activities. The consultant’s performance during the assignment, the approach taken, the changes made and the results achieved have to be evaluated by both the client and the consulting firm. Final reports are presented and discussed. Mutual commitments are settled. If there is an interest in pursuing the collaborative relationship, an agreement on follow-up and future contracts may be negotiated. Once these activities are completed, the consulting assignment or project is terminated by mutual agreement and the consultant withdraws from the client organisation.
- Discuss Management Objectives, Goals and Functions of Manager
Management by objectives (MBO), also known as management by results (MBR), was first popularized by Peter Drucker in his 1954 book The Practice of Management. Management by objectives is the process of defining specific objectives within an organization that management can convey to organization members, then deciding on how to achieve each objective in sequence. This process allows managers to take work that needs to be done one step at a time to allow for a calm, yet productive work environment. This process also helps organization members to see their accomplishments as they achieve each objective, which reinforces a positive work environment and a sense of achievement. An important part of MBO is the measurement and comparison of an employee´s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal-setting and choosing the course of action to be followed by them, they are more likely to fulfil their responsibilities. According to George S. Odiorne the system of management by objectives can be described as a process whereby the superior and subordinate jointly identify common goals, define each individual´s major areas of responsibility in terms of the results expected of him or her, and use these measures as guides for operating the unit and assessing the contribution of each of its members.
Concept and framework:
Management by Objective at its core is the process of employers/supervisors attempting to manage their subordinates by introducing a set of specific goals that both the employee and the company strive to achieve in the near future, and working to meet those goals accordingly.
Features and advantages:
The principle of MBO is for employees to have a clear understanding of their roles and the responsibilities expected of them, so they can understand how their activities relate to the achievement of the organization´s goals. MBO also places importance on fulfilling the personal goals of each employee.
Proponents argue that benefits of MBO include:
Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and commitment.
Better communication and coordination – Frequent reviews and interactions between superiors and subordinates help to maintain harmonious relationships within the organization and also to solve problems.
Clarity of goals.
Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person.
Managers can ensure that objectives of the subordinates are linked to the organization´s objectives.
Common goal for whole organization means it is a unifying, directive principle of management.
One of your goals as a manager is to achieve high morale among the ranks. Employee motivation should be at the top of the list when it comes to the goals for your company if you want to achieve success. As author Stephen Covey wrote in his book "The Seven Habits of Highly Effective People": "There are organizations that talk a lot about the customer and then completely neglect the people that deal with the customer--the employees."
Making your customers happy is another key management objective. Whether you work directly with clients regularly in a service field or you sell products in an online store, achieving a fruitful relationship with your customer is an extremely important goal for you to set as the manager. According to quality service consultant Dianne S. Ward, setting high standards for your customer service not only can act as a marketing tool, but it also can lead to incremental sales.
Another ongoing goal you should have as a manager is increasing your profits in each period, whether you track this information on a weekly, monthly, quarterly or yearly basis. Keep in mind that maximizing profit is a matter of keeping your costs down while increasing sales--so you have to manage two goals at once. The process of increasing sales involves a number of tasks, including adjusting the marketing plan, improving the sales force and even making changes to the current offering.
Functions of manager:
The planning function of management controls all the planning that allows the organization to run smoothly. Planning involves defining a goal and determining the most effective course of action needed to reach that goal. Typically, planning involves flexibility, as the planner must coordinate with all levels of management and leadership in the organization. Planning also involves knowledge of the company’s resources and the future objectives of the business.
The organizing function of leadership controls the overall structure of the company. The organizational structure is the foundation of a company; without this structure, the day-to-day operation of the business becomes difficult and unsuccessful. Organizing involves designating tasks and responsibilities to employees with the specific skill sets needed to complete the tasks. Organizing also involves developing the organizational structure and chain of command within the company.
The staffing function of management controls all recruitment and personnel needs of the organization. The main purpose of staffing is to hire the right people for the right jobs to achieve the objectives of the organization. Staffing involves more than just recruitment; staffing also encompasses training and development, performance appraisals, promotions and transfers. Without the staffing function, the business would fail because the business would not be properly staffed to meet its goals.
The coordinating function of leadership controls all the organizing, planning and staffing activities of the company and ensures all activities function together for the good of the organization. Coordinating typically takes place in meetings and other planning sessions with the department heads of the company to ensure all departments are on the same page in terms of objectives and goals. Coordinating involves communication, supervision and direction by management.
The controlling function of management is useful for ensuring all other functions of the organization are in place and are operating successfully. Controlling involves establishing performance standards and monitoring the output of employees to ensure each employee’s performance meets those standards. The controlling process often leads to the identification of situations and problems that need to be addressed by creating new performance standards. The level of performance affects the success of all aspects of the organization.
- Discuss Geert Hofstede Cultural Model, Elaborate Power Distance with examples
Gerard Hendrik (Geert) Hofstede (born 2 October 1928) is a Dutch social psychologist, former IBM employee, and Professor Emeritus of Organizational Anthropology and International Management at Maastricht University in the Netherlands, well known for his pioneering research on cross-cultural groups and organizations.
His most notable work has been in developing cultural dimensions theory. Here he describes national cultures along six dimensions: Power Distance, Individualism, Uncertainty avoidance, Masculinity, Long Term Orientation, and Indulgence vs. restraint. He is known for his books Culture´s Consequences and Cultures and Organizations: Software of the Mind, co-authored with his son Gert Jan Hofstede. The latter book deals with organizational culture, which is a different structure from national culture, but also has measurable dimensions, and the same research methodology is used for both.
Hofstede´s cultural dimensions theory is a framework for cross-cultural communication, developed by Geert Hofstede. It describes the effects of a society´s culture on the values of its members, and how these values relate to behaviour, using a structure derived from factor analysis.
Hofstede developed his original model as a result of using factor analysis to examine the results of a world-wide survey of employee values by IBM between 1967 and 1973. It has been refined since. The original theory proposed four dimensions along which cultural values could be analysed: individualism-collectivism; uncertainty avoidance; power distance (strength of social hierarchy) and masculinity-femininity (task orientation versus person-orientation). Independent research in Hong Kong led Hofstede to add a fifth dimension, long-term orientation, to cover aspects of values not discussed in the original paradigm. In 2010, Hofstede added a sixth dimension, indulgence versus self-restraint.
Hofstede´s work established a major research tradition in cross-cultural psychology and has also been drawn upon by researchers and consultants in many fields relating to international business and communication. The theory has been widely used in several fields as a paradigm for research, particularly in cross-cultural psychology, international management, and cross-cultural communication. It continues to be a major resource in cross-cultural fields. It has inspired a number of other major cross-cultural studies of values, as well as research on other aspects of culture, such as social beliefs.
Classifying Cultures: Conceptual Dimensions
In an article first published in 1952, U.S. anthropologist Clyde Kluckhohn (1962) argued that there should be universal categories of culture:
In principle ... there is a generalized framework that underlies the more apparent and striking facts of cultural relativity. All cultures constitute so many somewhat distinct answers to essentially the same questions posed by human biology and by the generalities of the human situation. ... Every society´s patterns for living must provide approved and sanctioned ways for dealing with such universal circumstances as the existence of two sexes; the helplessness of infants; the need for satisfaction of the elementary biological requirements such asfood,warmth, and sex; the presence of individuals of different ages and of differing physical and other capacities. (pp. 317-18).
Many authors in the second half of the twentieth century have speculated about the nature of the basic problems of societies that would present distinct dimensions of culture (for are view see Hofstede, 2001, pp. 29-31). The most common dimension used for ordering societies is their degree of economic evolution or modernity. A one-dimensional ordering of societies from traditional to modern fitted well with the nineteenth- and twentieth-century
Hofstede: Dimensional zing Cultures: The Hofstede Model in Context
Produced by the Berkeley Electronic Press, 2011
Belief in progress. Economic evolution is bound to be reflected in people’s collective
Mental programming, but there is no reason why economic and technological evolution
Should suppress other cultural variety. There exist dimensions of culture unrelated to
U.S. anthropologist Edward T. Hall (1976) divided cultures according to their ways of
Communicating, into high-context (much of the information is implicit) and low-context
Cultures (nearly everything is explicit). In practice this distinction overlaps largely with the
Traditional versus modern distinction.
U.S. sociologists Talcott Parsons and Edward Shils (1951, p. 77) suggested that all human action is determined by five pattern variables, choices between pairs of alternatives:
- Affectivity (need gratification) versus affective neutrality (restraint of impulses);
- Self-orientation versus collectively-orientation;
- Universalism (applying general standards) versus particularism (taking particular relationships into account);
- Ascription (judging others by who they are) versus achievement (judging them by what they do);
- Specificity (limiting relations to others to specific spheres) versus diffuseness (no
Prior limitations to nature of relations).
Parsons and Shils (1951) claimed that these choices are present at the individual
(Personality) level, at the social system (group or organization) level, and at the cultural
(Normative) level. They did not take into account that different variables could operate at
Different aggregation levels.
U.S. anthropologists Florence Kluckhohn and Fred Strobeck (1961, p. 12) ran a
Field study in five geographically close, small communities in the Southwestern United
States: Mormons, Spanish Americans, Texans, Navaho Indians, and Zuni Indians. They
Distinguished these communities on the following value orientations:
- An evaluation of human nature (evil - mixed - good);
- The relationship of man to the surrounding natural environment (subjugation -
Harmony - mastery);
- The orientation in time (toward past - present - future);
- The orientation toward activity (being - being in becoming - doing); and
- Relationships among people (linearity, i.e., hierarchically ordered positions –
Collateralise, i.e., group relationships – individualism).
Empirical Approaches and the Hofstede Dimensions:
In 1949 U.S. psychologist Raymond Cattell published an application of the new statistical technique of factor analysis to the comparison of nations. Cattell had earlier used factor analysis for studying aspects of intelligence from test scores of individual students. This time he took a matrix of nation-level variables for a large number of countries, borrowing from geography, demographics, history, politics, economics, sociology, law, religion and medicine. The resulting factors were difficult to interpret, except for the important role of economic development. Replications of his method by others produced trivial results (for are view see Hofstede, 2001, pp. 32-33). More meaningful were applications to restricted facets of societies. U.S. political scientists Phillip Gregg and Arthur Banks (1965) studied aspects of political systems; U.S. economists Irma Adelman and Cynthia Taft Morris.
Power distance is the extent to which the lower ranking individuals of a society "accept and expect that power is distributed unequally". It is primarily used in psychological and sociological studies on societal management of inequalities between individuals, and individual´s perceptions of that management. People in societies with a high power distance are more likely to conform to a hierarchy where "everybody has a place and which needs no further justification". In societies with a low power distance, individuals tend to try to distribute power equally. In such societies, inequalities of power among people would require additional justification.
Power distance refers to the extent to which less powerful members of organizations and institutions (including the family) accept and expect unequal power distributions. This dimension is measured not only from the perspective of the leaders, who hold power, but from the followers. In regard to power distribution, Hofstede notes, "all societies are unequal, but some are more unequal than others."
In a large power distance society, parents teach children obedience, while in a small power distance society parents treat children as equals. Subordinates expect to be consulted in small power distance societies, versus being told what to do in large power distance societies.
Clinicians may find that individuals from a high power distance cultural background may refrain from expressing disagreement with goals and/or therapy activities, even if they don´t plan to implement suggested goals in the long term. Clients view the clinician as the expert and expect him/her to direct assessment and interventions.
Individuals with a low power distance cultural background may more openly express agreement and disagreement with clinician advice and suggestions, ask questions, and expect to be involved in the development of intervention plans.
- Write short note on
- a. Pros and Cons of charging fee on hourly basis
In general, charging an hourly rate is best for work that is considered “updates,” such as changes to a website after launch or revisions on an existing print design for additional uses.
It may also be the right choice for small projects, especially if it is difficult to estimate the number of hours of work necessary to complete the project.
You (the designer) know you will be paid for actual hours worked.
The client knows they won’t pay more for a guaranteed flat rate.
You are not guaranteed a minimum payment for the project.
The client doesn’t know exactly what the project will cost them.
The rate is based on hours, rather than what you may consider the value to be to the client. For example, a logo design may take 15 hours, but its value to the company could be much higher.
b. Outsourcing management services
- Outsourcing – What is Outsourcing?
Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. An insurance company, for example, might outsource its janitorial and landscaping operations to firms that specialize in those types of work since they are not related to insurance or strategic to the business. The outside firms that are providing the outsourcing services are third-party providers, or as they are more commonly called, service providers.
Although outsourcing has been around as long as work specialization has existed, in recent history, companies began employing the outsourcing model to carry out narrow functions, such as payroll, billing and data entry. Those processes could be done more efficiently, and therefore more cost-effectively, by other companies with specialized tools and facilities and specially trained personnel.
In 2014, the global market size of outsourced services was 104.6 billion U.S. dollars, the highest point to date.
Currently, outsourcing takes many forms. Organizations still hire service providers to handle distinct business processes, such as benefits management. But some organizations outsource whole operations. The most common forms are information technology outsourcing (ITO) and business process outsourcing (BPO).
In 2014, the revenue of the global BPO industry was 28.5 billion U.S. dollars, and the revenue of the global ITO industry was 76.1 billion.
Business process outsourcing encompasses call centre outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing, and claims processing outsourcing. These outsourcing deals involve multi-year contracts that can run into hundreds of millions of dollars. Frequently, the people performing the work internally for the client firm are transferred and become employees for the service provider. Dominant outsourcing service providers in the information technology outsourcing and business process outsourcing fields include IBM, EDS, CSC, HP, ACS, Accenture and Capgemini.
Some nimble companies that are short on time and money, such as start-up software publishers, apply multisourcing — using both internal and service provider staff — in order to speed up the time to launch. They hire a multitude of outsourcing service providers to handle almost all aspects of a new project, from product design, to software coding, to testing, to localization, and even to marketing and sales.
The process of outsourcing generally encompasses four stages: 1) strategic thinking, to develop the organization’s philosophy about the role of outsourcing in its activities; 2) evaluation and selection, to decide on the appropriate outsourcing projects and potential locations for the work to be done and service providers to do it; 3) contract development, to work out the legal, pricing and service level agreement (SLA) terms; and 4) outsourcing management or governance, to refine the ongoing working relationship between the client and outsourcing service providers.
In all cases, outsourcing success depends on three factors: executive-level support in the client organization for the outsourcing mission; ample communication to affected employees; and the client’s ability to manage its service providers. The outsourcing professionals in charge of the work on both the client and provider sides need a combination of skills in such areas as negotiation, communication, project management, the ability to understand the terms and conditions of the contracts and service level agreements (SLAs), and, above all, the willingness to be flexible as business needs change.
The challenges of outsourcing become especially acute when the work is being done in a different country (offshored), since that involves language, cultural and time zone differences.
- What is power? Explain the various sources of power giving suitable example
Power is the ability to influence the behaviour of others with or without resistance by using a variety of tactics to push or prompt action.
Identify the six different sources of power available to organizational leaders and how leaders can employ these sources of power and influence in a meaningful and ethical way
Power is the ability to get things done, sometimes over the resistance of others.
Leaders have a number of sources of power, including legitimate power, referent power, expert power, reward power, coercive power, and informational power.
All of these sources of power can be used in combination, and people often have access to more than one of them.
Power tactics fall along three dimensions: behavioural, rational, and structural.
The ability to influence the behaviour of others, with or without resistance.
When a superior influences subordinates.
When subordinates influence the decisions of the leader.
Power in Business
Power is the ability to get things done. Those with power are able to influence the behaviour of others to achieve some goal or objective. Sometimes people resist attempts to make them do certain things, but an effective leader is able to overcome that resistance. Although people sometimes regard power as evil or corrupt, power is a fact of organizational life and in itself is neither good nor bad. Leaders can use power to benefit others or to constrain them, to serve the organization´s goals or to undermine them.
Another way to view power is as a resource that people use in relationships. When a leader influences subordinates, it is called downward power. We can also think of this as someone having power over someone else. On the other hand, subordinates can also exercise upward power by trying to influence the decisions of their leader. Indeed, leaders depend on their teams to get things done and in that way are subject to the power of team members.
People use a variety of power tactics to push or prompt others into action. We can group these tactics into three categories: behavioural, rational, and structural.
Behavioural tactics can be soft or hard. Soft tactics take advantage of the relationship between person and the target. These tactics are more direct and interpersonal and can involve collaboration or other social interaction. Conversely, hard tactics are harsh, forceful, and direct and rely on concrete outcomes. However, they are not necessarily more powerful than soft tactics. In many circumstances, fear of social exclusion can be a much stronger motivator than some kind of physical punishment.
Rational tactics of influence make use of reasoning, logic, and objective judgment, whereas no rational tactics rely on emotionalism and subjectivity. Examples of each include bargaining and persuasion (rational) and evasion and put downs (no rational).
Structural tactics exploit aspects of the relationship between individual roles and positions. Bilateral tactics, such as collaboration and negotiation, involve reciprocity on the parts of both the person influencing and the target. Unilateral tactics, on the other hand, are enacted without any participation on the part of the target. These tactics include disengagement and fait accompli. Political approaches, such as playing two against one, take yet another approach to exert influence.
People tend to vary in their use of power tactics, with different types of people opting for different tactics. For instance, interpersonally-oriented people tend to use soft tactics, while extroverts employ a greater variety of power tactics than do introverts. Studies have shown that men tend to use bilateral and direct tactics, whereas women tend to use unilateral and indirect tactics. People will also choose different tactics based on the group situation and according to whom they are trying to influence. In the face of resistance, people are more likely to shift from soft to hard tactics to achieve their aims.
The Six Sources of Power:
Power comes from several sources, each of which has different effects on the targets of that power. Some derive from individual characteristics; others draw on aspects of an organization´s structure. Six types of power are legitimate, referent, expert, reward, coercive, and informational.
Also called "positional power," this is the power individuals have from their role and status within an organization. Legitimate power usually involves formal authority delegated to the holder of the position.
Referent power comes from the ability of individuals to attract others and build their loyalty. It is based on the personality and interpersonal skills of the power holder. A person may be admired because of a specific personal trait, such as charisma or likability, and these positive feelings become the basis for interpersonal influence.
Expert power draws from a person´s skills and knowledge and is especially potent when an organization has a high need for them. Narrower than most sources of power, the power of an expert typically applies only in the specific area of the person´s expertise and credibility.
Reward power comes from the ability to confer valued material rewards or create other positive incentives. It refers to the degree to which the individual can provide external motivation to others through benefits or gifts. In an organization, this motivation may include promotions, increases in pay, or extra time off.
Coercive power is the threat and application of sanctions and other negative consequences. These can include direct punishment or the withholding of desired resources or rewards. Coercive power relies on fear to induce compliance.
Informational power comes from access to facts and knowledge that others find useful or valuable. That access can indicate relationships with other power holders and convey status that creates a positive impression. Informational power offers advantages in building credibility and rational persuasion. It may also serve as the basis for beneficial exchanges with others who seek that information.
All of these sources and uses of power can be combined to achieve a single aim, and individuals can often draw on more than one of them. In fact, the more sources of power to which a person has access, the greater the individual´s overall power and ability to get things done.
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In early June 2013, the Financial Times ran a lengthy feature entitled “Succession Lessons Sought for Asian Family Businesses.” The subject of succession is especially prominent these days in China, the Financial Times suggests, because many enterprises there were founded during the economic reforms of the 1980s and will soon be facing generational changes. The gist of this piece was that “although problems with succession are not unique to Asian family businesses, the difficulties are more acute because there is an added cultural reluctance to broach the issue of succession.” Well, maybe. But when culture is invoked in this way, many economic historians will feel the urge to reach for Beta Blockers so that their blood pressure doesn’t spike.
If the passionate debates of the 1990s regarding “Asian values” have quieted down, assertions of culturally determined differences between “Asian” and “Western” business organizational strategies and structures are still going strong. Making binary distinctions between the characteristics of “Western” and “Asian” (typically “Chinese”) business organization and behaviour is com+B89mon. Discussions involve impersonal corporations vs. family-run firms, transaction-based relationships vs. guanxi (personalized connection or influence) networks, contracts vs. trust, individual vs. group orientation, short term vs. long run thinking, transparency vs. opaqueness, etc. — or, more to the point, Western vs. Asian business characteristics.
In these discussions, “culture” is assumed to be an exogenous variable parachuted in to account for any and all perceived differences. To be sure, differences can be expected — and often are discernible — when widely separated individuals and groups, with different histories and cultures, practice business. But such differences are generally a matter of degree rather than of kind. When culture is employed as an explanatory variable, it is better understood as endogenous, the component parts and roles of which are determined largely by the state of (and interaction with) other variables within the system in question. A brief glance back at Asian business history can help to illustrate this point. The enterprises of two pioneering overseas Chinese businessmen in Southeast Asia in the early twentieth century named Aw Boon Haw and Tan Kah Kee offer excellent examples. Differences can be expected – and often are discernible — when widely separated individuals and groups, with different histories and cultures, practice business. But such differences are generally a matter of degree rather than of kind.
These two men were arguably the most powerful, and certainly the most famous, big businessmen in the Straits Settlements (essentially peninsular Malaysia and Singapore) during the first third of the twentieth century. Although they both eventually became involved in other businesses, each is remembered mainly for the activities wherein they began. Aw Boon Haw is best known for his business efforts in the area of Chinese folk medicine. Along with his brother, he founded a pharmaceutical empire based on a product whose formula their firm acquired early on: the now iconic medicinal salve known as Tiger Balm.
Tan Kah Kee’s business fortune was based on commodities, particularly rubber. He was not the first “Rubber King” in British Malaya, but he was the most eminent and is the best remembered for it even today. Writers studying Aw and Tan as businessmen have almost always evaluated their organizational and strategic decisions in terms of their Chinese heritage, attributing many, if not most, such decisions to family considerations, guanxi, clan spirit, etc., and in Tan’s case, even to feng shui (the Chinese belief that the way in which one’s surroundings are arranged can affect the “harmony” of such surroundings and, in so doing, help to create conditions for success or failure). The problem is that there are other, more persuasive explanations, if one knows where to look.
During the first two decades of the twentieth century, when Aw and Tan’s small businesses first began to flourish, the economic environment in Southeast Asia in many ways resembled that of the United States and other parts of the West in the late nineteenth century. This environment was increasingly characterized by large, integrated markets and innovations in manufacturing technology that offered the possibility for significant increases in productive capacity. To varying degrees, such environmental changes transformed the structure of business opportunities the world over, leading some business entities to pursue adaptive measures that would better enable them to succeed under the new conditions. Such measures significantly changed the way these entities were organized, controlled, and operated. The stories of the business empires created by Aw Boon Haw and Tan Kah Kee are better explained by firmly embedding ´Chinese business culture´ in the economic environment of early twentieth century Southeast Asia than by invoking a rather free-floating sense of ´Chineseness´ abstracted from space and time
The structural/strategic changes affecting (some) businesses in the United States and Europe — the shift to corporate organization, multiple operating units, professional management, and external and internal integration — manifested themselves in Southeast Asia as well, including in the business concerns of Aw and Tan. Both men pursued manufacturing, marketing, and managerial strategies that would not have seemed out of place in the United States: expanding operations via multiple units in multiple countries; employing new, more efficient procurement methods and manufacturing technologies; establishing more formal management hierarchies; attempting to achieve greater market coordination via vertical and horizontal integration; developing fuller product lines and diversifying. And aw, like pioneering business contemporaries in the West, made a major push into brand development via trademarking, packaging, and labelling, and employed advertising and PR creatively.
Yes, in retrospect, management structures in both cases remained overly familial and centralized, which later led to succession problems. But such characteristics were due in large part to weak institutions relating to contract enforcement and underdeveloped mechanisms for training, identifying, and recruiting non-familial managerial talent, not to anything ineffable about the culture of the Chinese who migrated to the Straits Settlements. By and large, the stories of the business empires created by Aw Boon Haw and Tan Kah Kee are better explained by firmly embedding “Chinese business culture” in the economic environment of early twentieth century Southeast Asia than by invoking a rather free-floating sense of “Chineseness” abstracted from space and time. Discussions about generational changes in business ownership in the future — in China and elsewhere — need to be less parochial to be useful.
1.What were the characteristics of environment in South East Asia when Aw and Tan started their business?
Characteristics of environment is explained as follows:
These two men were arguably the most powerful, and certainly the most famous, big businessmen in the Straits Settlements (essentially peninsular
Malaysia and Singapore) during the first third of the twentieth century. Although they both eventually became involved in other businesses, each is remembered mainly for the activities wherein they began. Aw Boon Haw is best known for his business efforts in the area of Chinese folk medicine. Along with his brother, he founded pharmaceutical empire based on a product whose formula their firm acquired early on: the now iconic medicinal salve known as Tiger Balm.
Tan Kah Kee’s business fortune was based on commodities, particularly rubber. He was not the first “Rubber King” in British Malaya, but he was the most eminent and is the best remembered fort even today. Writers studying Aw and Tan as businessmen have almost always evaluated their organizational and strategic decisions in terms of their Chinese heritage, attributing many, if not most, such decisions to family considerations, guanxi, clan spirit, etc., and in Tan’s case, even tofeng shui (the Chinese belief that the way in which one’s surroundings are arranged can affect the “harmony” of such surroundings and, in so doing, help to create conditions for success or failure). The problem is that there are other, more persuasive explanations, if one knows where to look.
During the first two decades of the twentieth century, when Aw and Tan’s small businesses first began to flourish, the economic environment in Southeast Asia in many ways resembled that of the United States and other parts of the West in the late nineteenth century. This environment was increasingly characterized by large, integrated markets and innovations in manufacturing technology that offered the possibility for significant increases in productive capacity. To varying degrees, such environmental changes transformed the structure of business opportunities the world over, leading some business entities to pursue adaptive measures that would better enable them to succeed under the new conditions. Such measures significantly changed the way these entities were organized, controlled, and operated.
The structural/strategic changes affecting (some) businesses in the United States and Europe — the shift to corporate organization, multiple operating units, professional management, and external and internal integration — manifested themselves in
Southeast Asia as well, including in the business concerns of Aw and Tan. Both men pursued manufacturing, marketing, and managerial strategies that would not have seemed out of place in the United States: expanding operations viamultiple units in multiple countries; employing new, more efficient procurement methods and manufacturing technologies; establishing more formal management hierarchies; attempting to achieve greater market coordination via vertical and horizontal integration; developing fuller product lines and diversifying. And aw, like pioneering business contemporaries in the West, made a major push into brand development viatrademarking, packaging, and labelling, and employed advertising and PR creatively.
Yes, in retrospect, management structures in both cases remained overly familial and centralized, which later led to succession problems. But such characteristics were due in large part to weak
5/10/2017 ‘Asian’ Business Patterns: Culture in Context of
‘Chineseness’abstractedfrom space and time
institutions relating to contract enforcement and underdeveloped mechanisms for training, identifying, and recruiting non-familial managerial talent, not to anything ineffable about the culture of the Chinese who migrated to the Straits
Settlements. By and large, the stories of the business empires created by Aw Boon Haw and
Tan Kah Kee are better explained by firmly
Embedding “Chinese business culture” in the economic environment of early twentiethcenturysoutheast Asia than by invoking rather free-floating sense of “Chineseness” abstracted from space and time.
Discussions about generational changes in business ownership in the future — in China and elsewhere — need to be less parochial to be useful.
- In which year did Aw and Tan establish their business?
In 1903, when Tan returned to Singapore from his two-year stay in Jimei after handling his mother’s funeral, he was dismayed to find the closure of Chop Soon Ann and other firms. His father was also heavily in debt due to misappropriation of funds and business mismanagement by his father’s third wife and her son. The young Tan then started his own business in pineapple plantation and pineapple cannery, armed with the experience gained during his apprenticeship. Subsequently, he not only settled his father’s debts, but also expanded his business empire to include rice mills, rubber plantations, rubber mills, shipping, brickworks, a biscuit factory, and manufacturing of products such as tyres, shoes, hats, briefcases, toys and hair cream. He also ventured into retailing, and was the founder of the Chinese newspaper Nanyang Siang Pau in 1923.
Tan’s business enterprises created jobs for over 30,000 people and had 150 offices in five continents. He trained his employees, many of whom later became prominent businessmen and community leaders; the better known ones included Lee Kong Chian and Oon Khye Hong (who later become his sons-in-laws) as well as Tan Lark Sye. In the 1920s, he was known as the "Henry Ford of Malaya", as he adopted Henry Ford’s principle of being involved in all stages of the supply chain, except for things that could be outsourced more cheaply.
Tan’s business empire reached its peak in 1925. However his business expansion, especially in rubber goods manufacturing and retailing, later weighed him down due to strong competition from cheap Japanese imports. Tan resorted to loans from banks, and by 1927 his company was running a big deficit. The Great Depression that started in 1929 made it even harder for Tan to turn his business around.
- Which strategies were not implemented?
The strategies which were cost effective were not implemented.
In line with other papers in this series, results are provided for two epidemiologically defined World Health Organization sub-regions of the world: AfrE, which includes countries in the WHO sub-Saharan African region with high child and very high adult mortality (such as Kenya and Tanzania); and SearD, which includes countries in the WHO South East Asia region with high child and adult mortality (such as India and Nepal) (see appendix A on bmj.com for a full list of countries within these sub-regions).
Selection of disorders and interventions
Economic evaluation was carried out for a range of interventions relating to five prominent contributors to the global burden of disease. Schizophrenia, bipolar affective disorder, and depression each contribute at least 1% to the global burden of disease,6 as do alcohol use disorders, but in this case we extended the scope to the broader and more burdensome entity of heavy alcohol use (as a risk factor for neuropsychiatric and other diseases, defined in terms of an average intake of >40 g of pure alcohol daily for men and >20 g for women).7 There is substantial evidence for the effectiveness of interventions for these conditions.8 9 Analysis was also undertaken for epilepsy, a common and highly treatable neurological disorder accounting for 0.5% of the global burden of disease.10
Intervention analysis was not performed for other conditions that, despite their potential inclusion within a comprehensive mental health programme,5 currently impose less disease burden on populations or offer more limited scope for cost effective prevention or treatment (such as anxiety disorders, dementia, and developmental disorders).
Assessed interventions for the selected conditions cover both individual and population based strategies, and were evaluated at varying levels of feasible target population coverage (table 1⇓). All conditions and interventions are included in the WHO mhGAP Intervention Guide11 or, in the case of heavy alcohol use, represent central components of the WHO Global Strategy to Reduce the Harmful Use of Alcohol.
Estimation of intervention effectiveness
Intervention analysis for each of the conditions followed standard WHO-CHOICE methods, adopting an epidemiological, population based approach to assessing health outcomes (see general appendix on bmj.com).
Estimation of intervention costs
An “ingredients” approach to the costing of health interventions was used,13 14 requiring separate identification and valuation of the quantity of all resource inputs needed (such as numbers of staff) and the price or unit cost of those resource inputs (such as salary of a nurse).
In order to assess the inherent uncertainty around (point) estimates of total intervention costs and health effects, a number of steps were carried out.
Question No. 1 Marks - 10
The acronym CSR stands for
- Corporate Search and Rescue
- Corporate Social Responsibility
- Corporate Sensitive Reliability
- Corporate Social Reality
Question No. 2 &n