Management in Action Social, Eco and Ethical Issues Final

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Management in Action:
Social, Economic and Ethical Issues
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© Amity University Press
All Rights Reserved
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No parts of this publication may be reproduced, stored in a retrieval system or transmitted
in any form or by any means, electronic, mechanical, photocopying, recording or otherwise
without the prior permission of the publisher.
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Advisory Committee
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Chairman : Prof. Abhinash Kumar
Members : Prof. Arun Bisaria
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Dr. Priya Mary Mathew
Mr. Alok Awtans
Dr. Coral J Barboza
Dr. Monica Rose
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Mr. Sachit Paliwal
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Subject Matter Experts

Dr. Coral Jasmine Barboza
Ms. Charu Sarin
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Published by Amity University Press for exclusive use of Amity Directorate of Distance and Online Education,
Amity University, Noida-201313
Contents
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Page No.
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Module - I: Introduction to Management 01
1.1 Modern Management Practices and Issues
1.1.1 Introduction to Management
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1.1.2 Quantitative Approach
1.1.3 System Approach
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1.1.4 Contingency Approach
1.1.5 Benefits of the Modern Theory of Management
1.2 Outsourcing Management Services
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1.2.1 Meaning of Outsourcing
1.2.2 Concept of Business Process Outsourcing (BPO)
1.2.3 Concept of Knowledge Process Outsourcing (KPO)
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1.2.4 Outsourcing Logistics Management
1.3 Management Consultancy
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1.3.1 Introduction to Management Consultancy
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1.3.2 Evolution of Management Consultancy
1.3.3 Skills-Set Required for Management Consultants
1.3.4 Performance Counselling
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Case Study
Module - II: The Process of Management Consulting 68

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2.1 The Consulting Process

2.1.1 Entry
2.1.2 Diagnosis
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2.1.3 Action Planning

2.1.4 Implementation
2.1.5 Termination
2.2 Developing Strategic and Tactical Plans and Subcontracting
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2.2.1 Strategic and Tactical Plans

2.2.2 Subcontracting
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2.3 Pricing of Consultancy

2.3.1 Income Generating Activities
2.3.2 Costing and Pricing an Assignment
2.4 Acquiring and Developing Talents for Consulting
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2.4.1 Recruitment and Selection

2.4.2 Training and Development of Consultants
2.4.3 Preparing for the Future
Case Study
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Module - III: In-house Management vs Management Outsourced 101
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3.1 Why a Sense of Skepticism and Unease Towards Management Consultants
3.1.1 Role of Management Consultant
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3.1.2 Pros and Cons of Being a Consultant
3.2 Cost vs. Value of Advice
3.2.1 How Much Value do Consultants Add to Clients?
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3.2.2 Consulting Fee Types
3.2.3 Value Based Pricing
3.3 Separating Consulting Success from Consulting
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3.3.1 Consultant-Client Relationship
3.3.2 Models of Consulting
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3.3.3 Why Do Management Consultants Fail?
3.3.4 Challenges Faced by the Global Consulting Industry
3.3.5 Ethical Standards
Case study r
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Module - IV: Cross Cultural Management Systems and Processes 164
4.1 Organisational Culture
4.1.1 Concept of Organisational Culture
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4.1.2 Types of Organisational Culture

4.1.3 Strength of Organisational Culture
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4.1.4 Functions of Organisational Culture

4.1.5 Importance of Culture to the Organisation
4.1.6 How Organisational Culture Impacts Performance and Satisfaction
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4.2 Models of Organisational Culture

4.2.1 Edgar Schein’s Model of Organisational Culture
4.2.2 Hofstede Model of Organisational Culture
4.2.3 Handy’s Types of Organisational Culture
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4.3 Creating and Maintaining Organisational Culture

4.3.1 How are Cultures Created and Maintained?
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4.3.2 Cross Cultural Issues and Perspectives

Case Study
Module - V: Economic, Social and Ethical Issues in Management 225

5.1 Adaptation to Changing Environment in General and Economic Environment
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5.1.1 Evaluating the General Environment

5.1.2 Economic Environment
5.1.3 Social Environment
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5.1.4 The Global Competitive Environment
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5.1.5 Business War Game
5.2 Different Formats for the Delivery of Counselling Services
5.2.1 Introduction to Business Ethics
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5.2.2 Stakeholders: Reasons for Conflict of Interests among Stakeholders
5.2.3 Corporate Governance and Ethics
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5.2.4 Why are Unethical Decisions Leading to Conflicts Taken?
5.2.5 Power and Politics
5.2.6 Initiatives on Corporate Governance by the Government
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Case Study
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Management in Action: Social, Economic and Ethical Issues 1
Module -I : Introduction to Management

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Learning Objectives:
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At the end of this module, you will be able to understand:
●● Introduction to Management
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●● Quantitative Approach
●● System Approach
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●● Contingency Approach
●● Benefits of the Modern Theory of Management
●● Meaning of Outsourcing
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●● Concept of Business Process Outsourcing (BPO)
●● Concept of Knowledge Process Outsourcing (KPO)
●● Outsourcing Logistics Management
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●● Introduction to Management Consultancy
●● Evolution of Management Consultancy
●● Skills-Set Required for Management Consultants
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●● Performance Counselling
Introduction
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Management is universal in the modern industrial world and there is no substitute for
good management. It makes human effects more productive and brings better technology,
products and services to our society. It is a crucial economic resource and a life-giving
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element in business. Without proper management, the resources of production (men,

machines and materials, money) cannot be converted into production. Thus, management
is a vital function concerned with all aspects of the working of an organization.
Management is a must to accomplish desired goals through group action. It is

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essential to convert the disorganized resources of men, machines, materials and

methods into a useful and effective enterprise.
A business develops in course of time with complexities. With increasing

complexities managing the business has become a difficult task. The need of existence
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of management has increased tremendously. Management is essential not only for

business concerns but also for banks, schools, colleges, hospitals, hotels, religious
bodies, charitable trusts etc. Every business unit has some objectives of its own. These
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objectives can be achieved with the coordinated efforts of several personnel.
The work of a number of persons are properly coordinated to achieve the

objectives through the process of management is not a matter of pressing a button,
pulling a lever, issuing orders, scanning profit and loss statements, promulgating
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rules and regulations. Rather it is the power to determine what shall happen to the
personalities and happiness of entire people, the power to shape the destiny of a nation
and of all the nations which make up the world.” Peter F. Drucker has stated in his
Amity Directorate of Distance & Online Education

2 Management in Action: Social, Economic and Ethical Issues
famous book “The Practice of Management” that, “the emergence of management as

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an essential, a distinct and leading social institution is a pivotal event in social history.
Rarely in human history has a new institution proved indispensable so quickly and even
less often as a new institution arrived with so little opposition, so little disturbance and
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so little controversy?”
. “Management is an important part of the way people do business, which is done
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in groups.”
It is considered as the indispensable institution in the modern social organization

marked by scientific thought and technological innovations. One or the other form of
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management is essential wherever human efforts are to be undertaken collectively to
satisfy wants through some productive activity, occupation or profession.
It is management that regulates man’s productive activities through coordinated
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use of material resources. Without the leadership provided by management, the
resources of production remain resources and never become production.
Management has achieved an enviable importance in recent times. We are all
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intimately associated with many kinds of organizations, the most omnipresent being the
government, the school and the hospital. In fact, more and more of major social tasks
are being organized on an institution basis. Medical care, education, recreation, irrigation,
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lighting, sanitation, etc., which typically used to be the concern of the individual or the
family, are now the domain of large organizations. Although, organizations other than
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business do not speak of management, they all need management. It is the specific
organ of all kinds of organizations since they all need to utilize their limited resources
most efficiently and effectively for the achievement of their goals. It is the most vital forces
in the successful performance of all kinds of organized social activities.
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Importance of management for the development of underdeveloped economies

has been recognized during the last one and a half decade. There is a significant gap
between the management effectiveness in developed and underdeveloped countries. It
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is rightly held that development is the function not only of capital, physical and material
resources, but also of their optimum utilization. Effective management can produce
not only more outputs of goods and services with given resources, but also expand
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them through better use of science and technology. A higher rate of economic growth
can be attained in our country through more efficient and effective management of
our business and other social organizations, even with existing physical and financial
resources. That is why it is now being increasingly recognized that underdeveloped
countries are indeed somewhat inadequately managed countries.
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The emergence of management in modern times may be regarded as a significant

development as the advancement of modern technology. It has made possible
organization of economic activity in giant organizations like the Steel Authority of India
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and the Life Insurance Corporation of India. It is largely through the achievements
of modern management those western countries have reached the stage of mass
consumption societies, and it is largely through more effective management of our
economic and social institutions that we can improve the quality of life of our people. It
is the achievements of business management that hold the hope for the huge masses
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in the third world countries that they can banish poverty and achieve for themselves
decent standards of living.

Management is a critical aspect of human activity. Since the beginning of time,

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when people formed community groups to accomplish goals and objectives they could
not accomplish individually, management has been critical to ensuring the cooperation
of individual efforts. Because the community has always relied on collaborative effort
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and as more organised teams have increased in size, the management function has
expanded in importance and complexity.
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Management theory will now play a significant role in how managers manage
complex companies While some managers in various parts of the world may have
achieved management success without having basic management knowledge. It
should be emphasised unequivocally that those managers who incorporate mixed
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management theory into their day-to-day operations have a better chance of managing
their organisations effectively and efficiently in order to achieve both individual and
organisational goals.
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As a result, directors of contemporary organisations must acknowledge the critical
role they play in achieving their companies’ goals. Second, there is a need to increase
efficiency across all levels of a business, particularly among managers.
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To address these concerns, the paper will combine the following:
a. Management will be defined conceptually;

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Management objectives, functions, objectives and priorities will be highlighted;
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c. The importance of management skills and organisational categories will be
highlighted;
d. The importance of women in organisational management will be emphasised;
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e. The reasons for learning management theory;

f. Various management ideologies.
The significance of management in practice will vary according to the
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circumstances and it will be provided with a ‘path forward’ in the shape of a conclusion.
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Figure: The Process of Management
1.1 Modern Management Practices and Issues

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Management is the integrating force in all organized activity. Whenever two or

more people work together to attain a common objective, they have to coordinate their
activities. They also have to organize and utilize their resources in such a way as to

optimize the results. Not only in business enterprises where costs and revenues can
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be ascertained accurately and objectively but also in service organizations such as
government, hospitals, schools, clubs, etc., scarce resources including men, machines,
materials and money have to be integrated in a productive relationship, and utilized
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efficiently towards the achievement of their goals. Thus, management is not unique to
business organizations but common to all kinds of social organizations.
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1.1.1 Introduction to Management
Management is the act of bringing people together to accomplish their intended
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goals and objectives effectively and efficiently by utilising existing resources. Because
organisations can be thought of as systems, management can also be described
as human effort, including design that enables the system to produce meaningful
outcomes. This perspective enables self-control, a necessary condition for attempting to
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manage others.
Definition of Management (Management Process)
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Management functions include: Organizing, organizing, hiring staff, leading
or directing and managing an organization (one or more individual groups or
organizations) or an effort to achieve a goal.
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There are several different types of resources within management. Access to
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services includes the distribution and exploitation of:
a. Human Resources
b. Financial resources
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c. Technical resources
d. Natural resources
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Different Type of Management Styles

There are numerous management stylesand the management process has evolved
significantly in recent years. The advent of work teams and staff leadership has altered
managers’ expectations of themselves and their employees.
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1. Traditionally Managed
In traditional management systems, the manager establishes the standards for
employees who must adhere to them but the manager is compensated for fulfilling
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those requirements.
2. Management of a Team
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In a team management programme, the manager acts as a guide, assisting team

members in collaborating to solve problems but do not specify a goal and the entire
team is rewarded for accomplishing those goals.
Management Purpose
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Management exists to serve customers. A good manager will always direct his
or her organisation toward sales. In other words, effective managers are required to

keep their businesses on track by ensuring that everything is done to satisfy the
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needs of their consumers. In this aspect, a competent manager is accountable for
minimising waste and uncertainty, controlling costs and encouraging others to do the
same. Similarly, excellent managers always take calculated risks and exercise sound
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judgments (business foundation).
These risks include:
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●● trying new things;
●● effective adjustment to continuous change;
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●● improving the underdog (good managers are not afraid to let other people
shine and, in fact, encourage it);
●● develop their skills.
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The Need for Management
Managing all business and organisational activities is bringing people together
to accomplish desired goals and objectives while effectively and efficiently utilising
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available resources. Because organisations can be thought of as systems,
management can also be described as human effort (including design) that enables
the system to produce meaningful outcomes. As a result, management is required to
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ensure that a determined effort is made to accomplish organisational goals.
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Main reasons for need of strategic management for an organization are: 1.
increasing rate of changes 2. higher motivation of employees 3. strategic decision-
making 4. optimisation of profits and 5. miscellaneous!
If you want to be a good manager, you have to send and coordinate your own (or
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other people) work. This is because most managers are responsible for more than one
person can do.
A manager accomplishes this by serving as a clear communication channel within

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the organisation for which he or she works. Effective management is required to create
drive, inventiveness, discipline and excitement in situations where they are not readily
available or desired.
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The various administrative functions are classified as follows:
●● Planning
●● Planning
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●● Staffing
●● Leading / Directing
●● Control / Monitoring
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●● Inspiration
Additionally, managers are accountable for the development and implementation of
business policies and plans.
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Figure: Business Policies and Plans
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Figure: Scrum Framework

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This is a great representation of how a scrum’s brain works. It is a horizontal

management strategy, which means no one person is in charge. In terms of achieving
agreed-upon objectives in a recurring production cycle, the assumption is that the
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process is self-sustaining.
Scrum is a way for people to work together to solve complex, changing problems
while also making and delivering the best possible products. Scrum is a simple
framework that helps people, teams, and businesses make money by coming up
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with flexible solutions to complex problems. A book written by Ken Schwaber and
Jeff Sutherland, two of the people who made Scrum, is called The Scrum Guide. It
explains how to use Scrum in a simple and clear way. This Guide tells you what Scrum
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is. People who work with Scrum are responsible for everything that happens and the
things that are used. They also have to follow certain rules to make sure everything
stays together.
Important Points to Remember

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1. Managing all business and organisational activities is bringing people together to

accomplish desired goals and objectives while effectively and efficiently utilising

available resources.
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2. A strong management team is required to keep their companies on track by ensuring
that everything is done to meet the needs of their customers.
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3. Effective management is required to create drive, inventiveness, discipline and
excitement in situations where they are not readily available or desired.
4. Individuals who work for managers must understand that it is their responsibility to
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bring their supervisors’ attention to them.
5. Management is a dynamic field that encompasses a wide range of tactics and ideas.
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6. While new management ideas occur daily in manufacturing, technology, software
development and public organisations some of the most prominent new ideas come
from the software development industry.
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7. The agile and rapid handling styles emphasise duplication and the capacity to
establish continuous work structures that foster growth and innovation without the
overhead associated with traditional management.
8. Social entrepreneurship is a relatively new phenomenon in management
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characterised by a shift in business management methods toward non-profit and
social development sectors.
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Iteration: The process of repeating a procedure in order to improve it further.
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10. Scrum is a management concept that is predicated on the flexibility of processes
driven by feedback.
11. Trading: The art or science of designing and taking calculated risks in order to profit
in business.
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1.1.2 Quantitative Approach

Quantitative management is a technique that entails the use of mathematical
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modelling to determine the optimal solution to a problem. This can be applied to a

range of workplace difficulties ranging from product development decision-making
to managing staff conflicts. It is also referred to as job research, and it entails a
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methodical, targeted approach to problems or answers. Numerous sectors may be

appropriate candidates for this management philosophy.
A critical component of quantitative management is the capacity to collect

knowledge about problems and potential solutionsin order to construct relevant useable
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mathematical models. This may include comments from a few staff members who
may raise difficult-to-discuss solutions difficulties and issues. The management can
associate all of this data with a mathematical model, which can enhance the data to
achieve the finest state of the art.
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This approach enables a more objective assessment of workplace challenges,

which is advantageous in busy companies that manage enormous projects. Additionally,
this method might assist businesses in establishing a framework that is easily
quantifiable. Assessments of staff and management can combine this information to
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generate an objective impression. With independent measures and methodologies, it

can occasionally be difficult to appropriately analyse people or circumstances.

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Figure: Quantitative Management Approach
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Not all work environments are conducive to quantitative management. While
achieving a goal is critical, there are instances when you must conceal other choices
that would benefit the firm or its management. Certain judgments may have to be made
on the basis of preconceived notions, which might be difficult to quantify.
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While it is possible to quantify the cost, durability and ease of use of various
building materials, the aesthetic judgement of which one is the most attractive may
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not be quantifiable by statistical analysis. The supervisor may need to thoroughly
evaluate the scenario in order to choose the most effective remedy while still achieving
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performance and quality objectives.
Numerous data gathering strategies can be employed to create a detailed

database of problems and solutions using a quantitative management system. This may
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include surveys as well as statistical analysis to highlight significant data. Researchers

may examine how similar companies have dealt with similar issues in the past.
Additionally, it is possible to do research on numerous solutions in order to amass solid
data on success rates, startup costs and other elements that can be quantified and
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analyzed.
The Quantitative Analysis Aproach

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Figure: The Quantitative Analysis Approach

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The figure gives a clear image about how the Quantitative Analysis Approach
works in steps. Firstly, start with defining the problem then develop a model for that
problem. Once done, start acquiring the datas and develop them into a solution. After
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the solution is developed, test the solution, analyze the results and then one can start
implementing the results.
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Quantitative Management Strategies
Several fundamental strategies for quantitative management include the following:
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●● Theory of Probability - Probability theory is the branch of mathematics concerned
with probability. Although there are several different probability interpretations,
probability theory treats the concept in a rigorous mathematical manner by
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expressing it through a set of axioms.
●● Sample Analysis - Sampling is a process used in statistical analysis in which a
predetermined number of observations are taken from a larger population.
The methodology used to sample from a larger population depends on the type
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of analysis being performed, but it may include simple random sampling or
systematic sampling.
●● Relation analysis / regression - In statistical modeling, regression analysis is a
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set of statistical processes for estimating the relationships between a dependent
variable (often called the ‘outcome’ or ‘response’ variable) and one or more
independent variables (often called ‘predictors’, ‘covariates’, ‘explanatory
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variables’ or ‘features’). The most common form of regression analysis is linear
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regression, in which one finds the line (or a more complex linear combination) that
most closely fits the data according to a specific mathematical criterion.
●● Time series analysis - Time series analysis is a specific way of analyzing a
sequence of data points collected over an interval of time. In time series analysis,
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analysts record data points at consistent intervals over a set period of time rather
than just recording the data points intermittently or randomly.
●● Rat analysis - The Risk Analysis Tool (RAT) is a methodology used to classify safety
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related occurrences in the ATM domain. The methodology analyses two types of
occurrences - Operational occurrences and ATM specific (technical) occurrences.
●● Diversity analysis - Diversity analysis investigates questions such as “how many
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species are in a sample?” and “how similar are these two samples?”. The diversity
in a single sample is called alpha diversity, and the diversity (differences or
similarities) between two samples is called beta diversity.
●● Mathematical Quality Control - Statistical/mathematical quality control, the use of
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statistical methods in the monitoring and maintaining of the quality of products and
services. One method, referred to as acceptance sampling, can be used when
a decision must be made to accept or reject a group of parts or items based on
the quality found in a sample. A second method, referred to as statistical process
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control, uses graphical displays known as control charts to determine whether a

process should be continued or should be adjusted to achieve the desired quality.
●● Linear Programming - Linear programming (LP, also called linear optimization) is a
method to achieve the best outcome (such as maximum profit or lowest cost) in a
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mathematical model whose requirements are represented by linear relationships.

●● Game theory - Game theory is the study of mathematical models of strategic

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interactions among rational agents. It has applications in all fields of social
science, as well as in logic, systems science and computer science.
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●● Network Analysis - Network analysis (NA) is a set of integrated techniques to
depict relations among actors and to analyze the social structures that emerge
from the recurrence of these relations. The basic assumption is that better
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explanations of social phenomena are yielded by analysis of the relations among
entities.
●● Break-Even Analysis - A break-even analysis is a financial calculation that weighs
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the costs of a new business, service or product against the unit sell price to
determine the point at which you will break even. In other words, it reveals the
point at which you will have sold enough units to cover all of your costs.
●● Waiting line or line theory - Queueing/line theory is the mathematical study of
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waiting lines, or queues. A queueing model is constructed so that queue lengths
and waiting time can be predicted.
●● Monetary Profit Analysis - Profit analysis involves dissecting the reported profit
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figure of a business to determine the actual extent of its profitability.
1.1.3 System Approach

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In management manuals, the system approach is a novel notion. A system is a
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collection of related and interdependent components that are arranged in such a
way that they create everything connected. The programme is composed of several
subsystems. For instance, an organisation is a programme, and its sub-programs
include finance, administration, sales, production and accounting, among others; hence,
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a combination of these departments established a business firm as a system.
Ludwing Von Bertalanffy, Kenneth Boulding, NIE Weiner, Fermount E. Kast, and
James E Rosenzwing were all proponents of system theory.
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System Approach/Theory To Management

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Figure: System Approach

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The system is made up of a number of sub-systems and all sub-systems are

related. The organizational structure can be divided into
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i. physical
ii. biological
iii. mechanical
iv. social
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Additionally, system theory is taught on the basis of input, processing and output
components, which can be represented as follows:

1. Input
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Materials can be processed to obtain their constituents. The organisation takes
recommendations from beyond the community. Inputs include people, money, space,
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and information. To accomplish the organization’s goals, it need well-trained and
experienced employees, a robust infrastructure, and adequate funding.
2. Processing
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Organizations are units of processing. They use the conversion process to turn raw
materials into final goods. For better consideration, strict planning, decision-making,
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leadership and adequate control are required.
3. Output
Organizations’ product is the end outcome. The market receives the results and
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provides feedback or comments. Customers will have a favourable image of a company
if it provides them with high-quality result and vice versa. Organisations need better
input and processing in order to produce a better product or service.
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System Theoretical components
1. Targeted Purpose
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The whole system has a purpose. It is aimed at achieving certain goals.
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2. Program Below
Subsystems are the components or components of a system. Each system
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could be a subsystem of a larger theme that makes up a different system. A teacher,

for example, is a small college programme, which is a small university programme,
which is also a national education commission sub-program. These sub-systems work
together.
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3. Synergy
The term “synergy” refers to the fact that the whole is greater than the sum of its
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parts. As a result, the synergy outcome is 2 + 2 = 5. It indicates that the overall function
is determined by how the pieces are connected, not by how well each portion functions.
When two organisations or programmes work together, for example, they will be more
successful than if they worked individually.
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4. The boundary of the system

A border separates the entire system from its surroundings. In an organisation, the
boundary determines which components are internal and which are external. In an open
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system, the system boundary fluctuates, but in a closed system, the border is tight.
Many firms take advantage of system settings that can be changed.
5. Open and Closed System

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The open system is in constant communication with its surroundings. Every

organisation interacts with its surroundings. It has to deal with converting information
into the relevant results that a place requires.

Closed systems do not interact with or are affected by their surroundings. They are
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split between their organisations, and the majority of their operations should take place
in the immediate vicinity. A closed system is something like a clock.
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Figure: The Congruence Model
6. E-Flow
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A flow of resources, information, money, people, and other resources is present in
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the system. This input is also an outlet and is offered as a product or service after it has
gone through the conversion process.
7. Response
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The term “response” refers to a person’s or an area’s reaction. It aids in

determining whether or not the product is beneficial. It can be used to track and improve
system performance. As a result, feedback is essential for system control.
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Figure: System, Environment and Feedback
The figure above shows the management process and the elements involved. It
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illustrates that the organisations must adapt to, exploit and fit the forces in their external
environments in order to succeed and thrive. Organisations are groups of people who

have come together on purpose to achieve a common goal through the use of well-
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defined and coordinated goals and plans. As a result, organisations operate in various
external environments and are internally organised and structured to meet both external
and internal demands and opportunities.
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Organisation, as a system, receives input, transforms it through a process to
produce output and operates in an environment dominated by economic, regulatory and
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environmental forces. A system is made up of an interconnected set of elements (sub-
systems) that are coherently organised and work together to achieve a desired goal or
the overall objectives of the whole. These elements gain strength through association
and influence with other elements, resulting in a greater aggregate individual
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contribution to the system.
System Management Contribution to Managers
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a. Provides a conceptual framework for analysing organisations and managers in a
rational manner.
b. The manager’s role in the interaction and interaction of various components of the
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company as well as between organisations and their environment, is highlighted.
c. It encourages executives to examine and comprehend all aspects of a problem in
relation to something else.
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System Limits
a. It is unreasonable and it cannot be applied immediately and simply in real-life
situations.
b. It lacks any tools or methods for integrating organisations and the environment as
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well as the nature of interaction between organisations and the environment.
1.1.4 Contingency Approach

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The strategy for dealing with contingency was developed based on the experience
of managers who have discovered that no single method works consistently in all
scenarios. The fundamental premise of this strategy is that the method of dealing
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with numbers or theory is acceptable in all situations. A position’s major decisions are
influenced by the organization’s external and internal environment.
The environment was not included in the procedure, value, ethics, or management
systems. They are not frequently thought of as having their own universally applicable
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concepts and techniques. Process theory, for example, frequently assumes that
strategic planning applies to all situations; volume specialists frequently believe
that linear array can be used in any situation; ethical theory frequently represents
)A
the preparation of all higher and lower pairs’ participation principles; and programme
facilitators frequently emphasise the need for computer information flow in all situations.
On the other hand, practical managers discover that a particular notion or method
from a number of areas is ineffective in a variety of situations. Experts criticise scholars
for their inaccuracies, while scholars blame experts for the system’s misuse. The
(c
environment, as well as initiatives to close the existing theoretical-practice gap has a

role in dealing with emergencies.

The contingency response technique encourages administrative and organisational

Notes
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activities to be congruent with the situation at hand and that certain actions should
only be taken in specific situations. There is no better way to handle things, and it is
all dependent on the circumstances. To put it another way, administrative action is
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influenced by the external environment.
There is not a greater way to life than this. What a manager does is determined
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by the circumstances, and there is a functional link between status variables and
management action. Emergency theory aims to evaluate and comprehend these
relationships in order to take the necessary administrative action to solve the problem.
This approach of analysis is adaptable with the goal of coming up with a viable solution
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to the problem at hand.
There are three main elements of a general conceptual framework for how to deal
with Contingency in management -
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a. environment,
b. management concepts and strategies,
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c. inter-dependent relationships.
Features of the Contingency Management System

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External considerations are used to guide management. Which strategies and
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control systems should be devised to meet a specific circumstance will be determined
by the status conditions.
●● Management is completely flexible.

●● There is no better way to do anything.
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●● One has to be adaptable.

●● It is a form of “if” and “then”.
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●● Management is a good thing.

●● Management policies and procedures must be accountable to the
environment.
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●● Managers need to understand that there is no better way to manage. It

destroys the universal validity of the principles.
The management systems approach uses a wide human model and takes a broad
view of organisational dynamics. It takes into account the complete range of human
desires and motivations. On the other hand, in management, dealing with emergencies
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is mostly focused on improving workplace order. However, the two points of view
are not the same. They should be viewed as complementary to one another. Within
the framework of the Contingency plan, the supervisor should apply the systems and
)A
alternatives.
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Contingency Approach
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Figure: Contingency Approach
Contingency theory is based on well-known parts of System Theory. It knew that an

organisation is a system that has a lot of different parts that work together. There is one
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more thing to note, though. The behaviour of individual sub-units is determined by both
internal and external factors.
These could be things like how two other units work together or how other systems
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work outside of the unit. There are times when other units or systems inside or outside
of a sub-unit have an effect on the desired outcome of a sub-unit. Contingency theory
also suggests making changes to an organization’s structure, leadership styles, and
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control systems so it can better deal with changes in the environment.
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The contingency hypothesis is influenced by a number of things. Some of them are
as follows:
a. Scale of the business

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b. The business adapts to its surroundings.

c. The utility functions and functions differ in their characteristics.
d. Assumptions made by managers about their staff
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e. Strategies
f. Applied technology
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Contingency Perspective and Organizational Theory

Depending on the emergency, sustainable arrangements refer to mechanical
structures that favour centralization, legalisation, configuration and competence to
promote efficiency and uniformity. Due to your certainty and foresight, policies, laws and
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processes can be used to guide day-to-day decision-making and difficulties.
In order to attain flexibility and adaptability, unstable environments necessitate

dwelling structures that stress spatial diversity. Uncertainty and unpredictability in
)A
business and informal affairs necessitate similar problem-solving solutions.
Vision of Contingency and Leadership

Dissatisfaction with views based on the criteria of leadership performance led to
(c
the development of emergency leadership theories. Fred Fiedler was a pioneer in this
discipline in the 1960s and 1970s. Various aspects that contribute to the success of
various leadership styles have been found. The degree to which their subordinates

like or trust a leader, the structure of the job and a leader’s legal authority are all
Notes
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crucial characteristics of a leadership role, according to Fiedler. Leadership-based or
relationship-based leadership should both work if the situation allows it.
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The Way of Contingency Continues
Management emergencies were developed from the perspective of psychologist
Fred Fielder’s contingency theory on leadership performance. According to this
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theory, job motivation or relationship motivation and contexts play a role in leadership
performance as they relate to team efficiency
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Three elements in theory can be used to measure status acceptance:
i. The leader’s relationship with the member - the manager’s view of his or her co-
operative relationship is determined by this aspect. To put it another way, is your
interaction with employees better or worse?
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ii. Job structure - This feature refers to the fact that the work frame is very well
constructed, subject to standard procedures and subject to adequate evaluation
measures. Certain functions, such as line functions, are easy to edit, configure, and
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scale.
iii. Positioning position - This feature checks a supervisor’s ability to focus on punitive
or rewarding behavior
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An Example of Contingency Theory
Consider the case of a freshly appointed Clothing Store Manager for an H&M-like
product with around 50 employees to learn how to cope with emergencies in leadership.
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What kind of leader do you think he should be? Yes, the following criteria should be
taken into account:
Low trust Factor - Some of the people at work will not be very happy that a
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manager has been put in charge. It might be hard for the manager because there are
so many people at work.
High-performance building - The store’s operation is well-defined. Employees are

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already trained in greeting consumers and arranging or displaying clothing.
Positive seniority- The manager has the authority to hire additional employees or
fire someone if required..
As a result, in Fred Edward’s opinion of emergency services, the relationship

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created by the leader will be effective in this scenario.

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Figure: The Contingency Theory of Organisations
The above figure demonstrates the contingency theory of organizations, how it is

divided into two parts like company’s technology and company’s environment, followed
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by organization structure, appropriate management form and MAS.
The degree to which an individual’s chosen orientation plays into their capacity to
lead successfully varies according to contingency theories of leadership. As a result,
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it is critical to assess each theory separately. According to Fiedler’s contingency
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theory, a leader’s preference influences his or her capacity to succeed in a number of
settings. According to the hypothesis, leaders that favour a human-oriented (High LPC)
approach will perform best in favourable settings, whereas task-oriented leadership
(Low LPC) will perform best in bad ones. The idea aims to strike a balance between the
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relevance of an individual’s preferences and the impact of contextual circumstances.
The Good and the Bad Way of Managing

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A Contingency System for Management Benefits
This concept has been of considerable assistance to management because of the

favourable aspects presented by it. Our management professionals can provide you
with a comprehensive list of benefits as well as instances of emergency measures.
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Simply use our online assistance tool, which will provide you with concise
summaries of this article. Let us have a look at a few advantages:
a. The operating system can be customised. This means that businesses may remain
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adaptable and change their policies and tactics in response to changing circumstances.
b. Managers can consider all elements, carefully examine the situation, and make
the best decision possible. This means that they can consider all the variables and
)A
conditions that may affect their solutions now and in the future.
c. The leadership has grown as a result of this strategy. Managers’ insight, knowledge
and leadership styles are valued in this method, which allows them to make varied
decisions depending on the circumstances.
(c
d. The contingency system enables an organisation to choose different leaders for

different situations based on their leadership styles. According to theory, not all
leaders will be successful in dealing with all types of problems in the workplace.
Contingency Management System

Notes
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Despite the benefits and drawbacks that contingency management theory should
give to enterprises, it is not without criticism. There is no one-size-fits-all answer to the
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problem, which means that when looking for solutions, managers can reproduce the
way they want it. This can result in a waste of resources, time and money.
It is evident from the description of a contingency strategy that not all administrative
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problems can be dealt with in the same way. However, things become a little trickier
when we use the same ideas in real-life scenarios. It necessitates a thorough
examination and the consideration of a few aspects in all other concerns that may
O
develop. When timelines are tight, management may not be able to dig deep into the
situation and instead make high-level decisions.
Managers may not always be able to analyse all elements and determine all
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changes while making decisions. There could be a number of concerns, including time,
cost and resources. As a result, managers may find it difficult to obtain all relevant data
and adequately examine it.
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The contingency reaction is not fixed; it may be challenging to apply. It depends on
the situation. As a result, everything hinged on how the company’s leaders prepared
themselves and their plans for growth. It will be easier for leaders to make decisions if they
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spend more time with their subordinates and understand their challenges and problems.
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The Importance of Contingency Theory
Contingency theory’s concept allows for a flexible approach to leadership.
Managers may identify the best method to lead a business and make the best decisions
with the support of that vision. It examines the nature of the organization’s activities as
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well as its personnel structure. It does not have any kind of management system. As a
result, the importance of flexibility for all leaders is highlighted.
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Figure: Contingency Theory

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1.1.5 Benefits of the Modern Theory of Management
Management Ideas in the Workplace

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Finding a management theory that works for your company can drastically improve
the working atmosphere. In this part, we will look at Modern Management Theory and
how it may be an effective leadership model because of its powerful blend of statistics
and human emotions. We will also incorporate some management concepts and
Notes
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compare them to Modern Management philosophy.
Idea of Management
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Management theories are theories on how people in an organisation treat their
employees. People who want to lead a firm must first grasp what inspires and directs
the company’s workforce. Management concepts outline what motivates employees
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and how leaders can govern and direct them using these incentives.
Employers can utilise management theory to develop management techniques,
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frameworks, and standards in the workplace. Different employment contexts
necessitate independent management. Scientists have examined the best management
methods of numerous companies for millennia. We may now develop management
frameworks in firms using the frameworks presented in these management ideas.
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Modern Management Theory
Employees are only motivated by money, according to Classical Management
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Theory. Modern Management Theory was formed as a direct response to this theory.
Employees are multifaceted and they have various motives to want to succeed at work
according to Modern Management Theory. Rapidly evolving technologies, according
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to Modern Management Theory, can both cause and alleviate various difficulties in the
workplace.
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To create a more productive work environment, this theory blends mathematical
analysis with an understanding of human emotions and motivation. A manager that employs
Modern Management Theory will utilise statistics to assess employee performance and
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productivity as well as try to figure out what makes people happy at work.
Quantitative Theory, Theory Systems and Contingency Theory are the three
management principles that make up Modern Management Theory.
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Figure: Evolution of Management Theory

(c
Quantitative Theory
This efficiency and mathematics-based approach arose from the requirement
for good government during World War II. This is a straightforward number-based
approach that entails assessing the risks, advantages and drawbacks of each action
Notes
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before to taking it.
In company management, this strategy uses statistics, computer simulations,
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information models and other measurement approaches. This concept is rarely used to
company management. Instead, in order to govern the company, Quantitative Theory
should be combined with a wide range of personal theories.
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System Theory
This concept treats businesses as if they were living things, complete with all of
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the elements necessary for survival. This theory, developed by Ludwig von Bertalanffy,
asserts that to keep a firm alive, all sections of the company, from the CEO to the entry
level employee must function in harmony. Companies that follow this approach believe
that departments and employees should work together as a team rather than as a
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separate unit. This vision requires cross-departmental collaboration and communication.
While it is crucial for a firm to strive for cross-departmental cooperation, many

businesses do not require it in their day-to-day operations. A small business’s
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accounting department, for example, does not need to be fully integrated with its human
resources department. This management idea is more of a way of thinking about a firm
than a specific management style.
Contingency Theory
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According to the Contingency Management Theory, each situation necessitates a
particular leadership style; hence no single theory can be applied to the entire office.
This approach, developed in the 1960s by Fred Fiedler, encourages business leaders
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to assess the circumstance and use the optimal leadership strategy. The size of the
business, the technology used, and the overall leadership style of the corporation,
according to Fiedler, is the three key criteria in selecting which leadership strategy to
use.
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This concept puts a lot of strain on business leaders. Fiedler believed that a
leader’s personality traits have a direct impact on how he treats people. This approach
is also simple to use in modern workplaces since it recognises that as technology and
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businesses evolve, so should leadership styles.Some management concepts have

been around for more than a century. Here are some typical management myths and
why they may or may not apply in today’s workplace.
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Ancient Management Theory

According to Classical Management Theory,employees must be separated into
owners, middle managers and managers, according to a clear management framework.
)A
The workplace is viewed as an integral line in this idea, with each employee performing
a single task rather than several ones.
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Figure: Modern Management Tools
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Benefits of Modern Management Theory
Because it understands and respects the changes that come with technology,
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Modern Management Theory is the best management theory of the modern world. This
theory says that technology is changing the workplace and that leaders must be able to
adapt to these changes. A manager applying Modern Management Theory, for example,
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will examine trends similar to working from home in two ways. They will assess the
costs and benefits of having home-based employees as well as inquire about how
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working from home improves people’s lives.
This two-dimensional management technique enables exact data realities, as

well as a preview and a personal leadership style. This approach portrays employees
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as complicated persons who are more concerned with their wages, while allowing for
rational analysis and data to be used to make specific firm decisions.
1. Improves productivity: Modern management theory employs mathematics and

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mathematical methodologies to evaluate an organization’s performance. Managers

can utilise this information to better understand employee behaviour and design ways
to improve their employees’ talents. They might, for example, adopt procedures to
make employees’ work more efficient or offer training programmes to help them
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improve their abilities.

2. AIDS decision-making: Modern management theories frequently provide managers
with a sense of what they need to evaluate, which they can use to evaluate
their organisation or department. Knowing what to look for can assist managers
m
in identifying problems and developing potential solutions. They can use data to
support their solutions and final conclusions thanks to the usage of mathematical
procedures.
)A
3. Improving employee engagement: As previously stated, current management

philosophy evaluates individuals’ incentive to perform beyond monetary reward.
Managers that use this approach can identify and implement processes or procedures
that consider the various demands of their staff. Employees’ morale and involvement
can improve when they are content at work, and they are more likely to desire to stay
(c
with the company.

Modern management theory stresses the application of mathematical approaches,

Notes
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which broadens one’s perspective. Managers can use these tactics to make decisions
based on data and evidence rather than personal feelings or beliefs. They also
enable the testing of many solutions in order to identify which one best supports the
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organisation. As a result, managers will be able to employ more effective solutions.
Modern management theory understands that modern firms frequently operate
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in fast-changing environments. This theory highlights the necessity of understanding
the impact of internal and external elements in the workplace and advises managers
to employ a few techniques and approaches to deal with them. Managers can, for
example, use modern technologies to direct operations or conduct mathematical
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modelling while coming up with solutions.
Increase Employee Productivity
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Modern management theory aids firms in increasing production by maximising the
use of human resources. Businesses make every effort to help employees reach their
full potential.
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Businesses could boost the productivity of unskilled people by first looking at work
processes and then adopting best practises according to Fredrick Taylor’s science
management theory. Taylor’s thesis is based on Adam Smith’s work ethic theory, which
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ensures that each person is more proficient in their own profession, allowing them to be
as productive as possible.
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Make It Easy to Make Decisions
Position systems, according to Max Weber, enhance informed decision-making.
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The theory of relativism emerged in the 1990s. According to a report by the Institute
for Employment Studies, creating jobs will limit communication channels, increase local
renaming, speed up decision-making, and encourage managers to be more involved
in production. Lowering leadership entails dismissing the highest-ranking officials and
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reducing the bureaucracy.
Increase Staff Participation

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The 1930s management ideas centred on human relations in the workplace,

sometimes known as human relations. Employees now have more influence over
workplace decisions. Using Abraham Maslow’s motivating theories and Chris Argyris’
thoughts on how organisational structure impacts contentment, relationship theory
focuses more on the psychological and social components of management.
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Think Purposefully and Apply the Scientific Processes

)A
Instead of depending on their own judgement, Taylor’s views on science

management hold managers accountable for scientific processes. Others in the firm
can evaluate the effectiveness of management methods and judge if they are truly
effective when they are employed. This deters managers from making decisions on
their own initiative and instead encourages them to implement empirically validated
(c
adjustments that boost staff productivity.

Get Acquainted (Gain, Obtain) With Present-Day Techniques

Notes
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Globalization concepts examine the global changes that are occurring and
their impact on business. Globalization theories assert that the corporate world is
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becoming increasingly interconnected, with many organisations transacting with
other international enterprises, investing, recruiting foreign personnel, and managing
international distribution chains. Globalization is aided in part by the advancement of
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information technology, particularly the Internet.
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Figure: Advantages and Disadvantages of Modern Management Theory
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1.2 Outsourcing Management Services
The information technology (IT) sector has historically fueled great expansion
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in the investment industry. As a result, the business process and now the information
process have been released. Is it possible to outsource project management services?
Surprisingly, the idea is still in its early stages. When we consider the rise in outsourcing
of other corporate operations, it appears that project management has a bright future.
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The majority of project management processes that can be outsourced are project
management processes. Different structures, roles, and models can be used to explain
the concept. It has some benefits, but it also has some drawbacks. It can help an
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organisation with a last-ditch interest in its basic information, for example. Simultaneously,
there may be a loss of control or the prospect of sensitive data being lost.
External vendors have been effective in delegating project management activities

to some businesses. Acceptance of project management as a separate project and
m
its transfer to other departments or suppliers are the most significant obstacles to
expanding project outsourcing. Although certain industries have their own project
management structure, this does not apply to the majority of businesses. In this regard,
)A
there is a need to raise awareness and disseminate best practices across various
industries.
Outsourcing Overview
Traditional Services
(c
The previous ten years have seen a significant growth in service delivery and a
shift in corporate practices. The expansion of the sector has been fueled by cost

pressures and quality improvements. It began in software development and has since
Notes
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moved to other workplaces such as IT-enabled services that play a significant part in
support services such as contact centres and help desks.
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This boosted business process outsourcing (BPO) as a viable option in non-
IT domains, such as regular and non-core accounting and financial services, human
resource management, and so on.
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From BPOs to KPOs
The popularity of BPOs has pushed many businesses to branch out into non-
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traditional areas in order to avoid being evicted. This comprised not only routine
activities, but also those that necessitated specialised knowledge and abilities.
Knowledge process outsourcing is the term for the latter (KPO).
Some examples of these areas include the following:
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●● Intellectual Property Related Services
●● Equity, Financial, and Insurance Research
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●● Business Research and Analytics
●● Legal Processes Outsourcing
●● r
Engineering and Design Services
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●● Remote Education and Publishing
●● Clinical Research and Pharmaceutical and Biotechnology Services
●● Remote Education and Publishing
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●● Market Research and Sales Process Outsourcing.
Areas of Information Processing Areas

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Project Management
In the past, the majority of outsourcing took place in the IT sector, and it was mostly
project-based work. In this situation, project management was an important component
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that was included in the vendor’s or service provider’s scope of work. Clients and
project management service providers are given a lot of weight.
Many clients use project management abilities as a criterion for awarding

contracts to vendors. When a vendor is handed an outsourced duty, like as software
m
development, project management is regarded a part of you.By excluding project

management or PM-O, we do not mean what is included as part of a core service
delivery contract. Instead, we look at certain situations where for example:
)A
a. The project management functions are delegated by the customer to the vendor or
service provider.
b. Part of a service provider’s project management activities are delegated to another
vendor or service provider.
(c
c. Within the organisation, project management activities are considered separately

and offered as a distinct assignment (comparable contract).

Project Management
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Figure: Project Management
Figure - External Project Management

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A project management concern can also be considered in a client assignment
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when a project management component is examined separately, in addition to the
aforementioned criteria.
Pros and Cons of Project Management

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Pros
1. Clients can focus on key skills

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2. Time for a quick rise or marketing time

3. A new look on the outside
4. The vendor can ensure that best practices are followed and can provide the latest
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trends in specific areas

5. Preparing for similar projects in the future.
Cons
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1. Commitment (purchasing) and resources required internally, although external

resources are used
)A
2. Relationship with the seller needs to be managed otherwise no profits are collected
3. Because the ownership of the services is not with the client, the merchant may
terminate the relationship
4. Depending on the type of project, data security may be at risk
(c
5. It may be more expensive if the relationship does not work out.

1.2.1 Meaning of Outsourcing

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Individual functions, sub-locations, or business processes are outsourced to a
third party, resulting in results outside of your organisation. A specialist service provider
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will now deliver the services that your organisation was required to provide. These are
typically the second business activity: tasks that must be accomplished so that the
company can concentrate on its core business.
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The phrase “outsourcing” refers to a technique in which tasks and business
structures are delegated to a third-party vendor. Individual tasks, specific sectors or
entire business processes might be included.
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One or more duties or procedures are frequently delegated to an external partner
when a job is released. Some activities, however, are done in-house outsourcing
under particular circumstances. Internal outsourcing, for example, is when you offer a
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job in a different section of your organisation or in a department that you specialise in.
Outsourcing, on the other hand, refers to all of the work that is assigned to a foreign
company. An external company could be a locally based firm or a third-party contractor.
Concentrate on cost-cutting opportunities.
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The contract specifies the title and duration of the service delivered. In order to
maintain rigorous control over the contractual relationship in terms of response times
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and service quality, the parties frequently agree to a service level agreement (SLA).
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Figure: Outsourcing: Examples of Outsourcing Activities
Exit strategies are used, for example, in customer service, accounting, tax
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consultation, IT, and marketing departments.
Examples of possible performance strategies

i. Customer Service: A company sacrifices customer service in a specialized company.
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Call centers usually take a certain amount of calls at a fixed price.

ii. Marketing: The company transfers support for social media channels to an external
service provider (e.g. agency).
)A
iii. Manufacturing: In many fashion companies it is very expensive to produce clothes

in the US. Therefore, they tend to prefer production in Asia. After production, the
garments are exported to the United States.
These are just a few of the many job opportunities available. In reality, a firm can
(c
now outsource all of its operations to outside contractors, whether it is production or

service delivery. It makes no difference whether the foreign corporation is located in a
neighbouring hamlet or on the other side of the planet because of the network land.
Do you wish to engage a company or service provider from another country to

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outsource part of your work processes?
Be sure to consider these three factors:
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i. Time difference: Thanks to digital production, you can interact with freelancers from
around the world. But in the case of an emergency assignment or an emergency
meeting, the timing of the appointment may be somewhat difficult.
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ii. Language barriers: Good English is one of the most important requirements for
export.
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iii. Method: Strategies and methods are not the same for all companies. It is possible
that the company on the other side of the world may be dealing with the problem
differently than you are used to.
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Figure: Outsourcing
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Determining the Value of External Work
Many businesses employ investment techniques to obtain more cheap services
and to concentrate on their potential. For such steps to be successful, modern
manufacturing and planning principles are required. An example of such a concept is
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a timely production plan. Consumables are only manufactured or distributed when they
are absolutely required. As a result, the corporation can save money on storage and
just pay for materials during manufacturing.
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Organizations can now move a major or small piece of their processes to other
companies more easily than ever before in the age of globalisation, thanks to concepts
like global transportation and the ongoing development of the internet. Those that
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use job outspokenness can speed up the flow of work and improve their products or
services, allowing them to compete in an increasingly competitive world.
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Figure: Outsourcing VS Off-shoring
Outsourcing and offshoring are two business strategies that many well-known
(c
companies use. Both solutions can help companies cut production costs, improve
business operations, and deliver better service to customers.

A business that wants to outsource some of its operations or processes to

Notes
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another location or a business partner needs to make sure that the benefits of doing
so outweigh the risks. Companies can also think about combining offshoring and
outsourcing to build the best business strategy.
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1.2.2 Concept of Business Process Outsourcing (BPO)
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Business process outsourcing (BPO) is a method of enlisting third-party providers
to do a variety of business-related tasks.
Although BPO was originally limited to the production of things, such as soft drink
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producers who outsource substantial chunks of their supply chains, it is now used to
deliver services as well.
Business process outsourcing (BPO) enlists the help of third-party vendors or
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subcontractors to do particular tasks.
BPO began as a way for major industrial enterprises to help with supply chain
management but it has now expanded to cover various types of industries, including
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service businesses.
If the seller or subcontractor is based in a foreign nation, such as in customer

support, the BPO will be deemed “offshore outsourcing.”
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Understanding Business Process Release (BPO)
As new and innovative resources become increasingly available in today’s ever-
changing, highly competitive business climate, many firms, from small start-ups to huge
corporations, choose procedures.
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Simply said, BPO methods are used in the two major areas of back office and
front office activities. The back office of a BPO refers to a corporation that outsources
business support tasks including accounting, payment processing, IT services, human
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resources, compliance, and quality assurance to external professionals who maintain

the company’s seamless operation.
Front office BPO services, on the other hand, frequently contain customer-related
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services like technical assistance, marketing and marketing.
Emerging business processes are becoming more popular, as indicated by the fact
that the global market for outsourced services reached $ 88.9 billion in 2017, up $ 12
billion from the previous year.
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Figure: Business Process Outsourcing (BPO)

Special Considerations
Notes
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The extent of BPO business choices is determined by whether the company
contracts its activities within or outside of its own country’s boundaries. When a contract
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is exported to a country with political instability, lower labour costs, and/or tax savings, it
is referred to as “offshore outsourcing.” One of these examples of marine operations is
a US corporation that operates a BPO marine retailer in Singapore.
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If an employee has a contract in a neighbouring country, BPO is referred to as
“nearshore outsourcing.” That would be the situation if a US corporation partnered with
a Canadian BPO provider.
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The third method, often known as “onshore outsourcing” or “getting domestic
assistance,” occurs when the BPO has a contract within the company’s country, even if
its partners are from other cities or provinces.
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They rely on the technology and infrastructure that allows outside organisations
to perform their responsibilities successfully, BPOs are often referred to as information
technology enabled services (ITES).
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Business Process Outsourcing Jobs
Companies are attracted to BPO because it allows them to be more flexible.
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Companies can allocate time and resources to important talents such as customer
connections and product leadership by outsourcing non-core and administrative
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operations, resulting in better outcomes than competitors in their market.
BPO provides organisations with access to technical services that they otherwise
would not have. Through the use of cutting-edge technology and processes, BPO
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partners and enterprises are continually seeking to improve their processes.
Because the United States has one of the highest corporate income taxes in the
industrialised world, American businesses can save money by outsourcing operations
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to low-income countries and using cheaper labour.
Companies can also profit from BPO by receiving faster and more accurate data,
increased productivity, and the ability to move resources more quickly as needed.
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Figure: Benefits of BPO

BPOs with other disadvantages: While BPO has numerous advantages, it also
Notes
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has certain drawbacks. An entity that delivers outsourced business processes may be
vulnerable to data breaches or communication issues that cause project delays, and
such companies may underestimate BPO providers’ operational expenses.
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Customers may retaliate against outsourcing if they perceive it to be of bad quality
or as a result of domestic employment.
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Purpose of BPO and Its Types
BPO stands for business process outsourcing, which is when a corporation
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outsources its business procedures to a foreign (external) firm. The primary goal
is to cut costs, save time, and concentrate on the most important aspects of the
organisation. There are two types of BPO: front office and back office. Internal business
concerns such as compensation, purchasing, and billing are covered by office BPO.
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Extracurricular activities, such as marketing and customer service, are the emphasis of
the front office BPO.
Benefits of a BPO
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BPO has numerous advantages. One of the most significant advantages is that it
lowers costs. Internal work entails a certain degree of expense. The BPO can cut these
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costs by outsourcing the company to a low-cost country, which lowers the total cost of
executing the task.
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Other advantages include the ability for company personnel to focus on key
business activities that are crucial to the organization’s development rather than
administrative work or other non-essential corporate management characteristics. BPO
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also aids in expansion, particularly in international markets. Using a BPO provider with
experience in the local business and who knows the language is a huge benefit if the
company wants to build an overseas office or operate there.
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Figure: Process in BPO

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1.2.3 Concept of Knowledge Process Outsourcing (KPO)
Knowledge Process Outsourcing (KPO)

(c
The release of contextual, information-related business activities is known as

knowledge process outsourcing (KPO). KPO entails executing contract work for
individuals with advanced degrees and competence in a certain field.

Employees from a different company or a subcontractor from the same

Notes
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organisation can work on information-related tasks. To conserve money or other
resources, a subsidiary could be established in the same country or near the coast.
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Knowledge Process Outsourcing (KPO) refers to any commercial activity involving
knowledge or knowledge-based processes, such as research, analysis, consultation,
or any other high-level work done by workers of another company or allocated to a
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subsidiary of the same company.
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Figure: Examples of KPO
These subsidiaries could be located in a variety of nations or regions. This is

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done to conserve money and resources. KPOs have the authority to make business
decisions on behalf of their parent company. Business Process Outsourcing (BPO) is a
subset of KPO (BPO).
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Knowledge Process Outsourcing provides cost effectiveness, access to the top

personnel, concentration, and the most efficient use of resources (KPO). Let us take a
closer look at KPO. The hardest, highest-performing jobs are outsourced by a firm to a
store in a community information release (KPO). As a result, the company’s jobs will be
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essential jobs.
They require expertise, technical knowledge, and abilities. For cost reasons, the
corporation moves these services to another company (dealer) or a subsidiary company
in the same nation, or occasionally overseas. BPO services, as we all know, also
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provide jobs but this is not a priority. As a result, KPO will be considered a subset of
BPO. The KPO, on the other hand, consists of a number of fundamental tasks as well
as specialised and technical capabilities.
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The corporation sends KPOs to help them with their professional abilities and
expertise, not to relieve them of their responsibilities. It is also an opportunity to save
money because competent and educated people are cheaper in developing countries
like India. As a result, KPO operates as an umbrella, combining many functions. Market
(c
research, legal discovery, financial research, pharmaceutical and biotech, data analysis,
design composition, technical content authoring, and so on are all examples of KPOs.

India, as so happens, is a top provider of many of these KPO services, particularly

Notes
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in the fields of technology and science. In India, the sector is worth $ 14 billion.
Wipro, TCS, WNS Global, Aditya Birla Minacs, and other well-known Indian
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organisations that provide KPO services include Wipro, TCS, WNS Global, and Aditya
Birla Minacs. Despite this, the industry continues to expand at a breakneck speed.
However, in recent years, India has faced stiff competition from countries like as China,
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the Philippines, and the Czech Republic, among others.
The Most Important Things
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.a. Contractors can provide knowledge-based work from trained subject matter experts
via knowledge process outsourcing (KPO).
b. When companies need specific knowledge and skills, or when there is a staffing
shortfall, they turn to KPO.
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c. Companies go to KPO to simultaneously acquire highly skilled personnel at a cheap
cost, which is understandable.
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Figure: Concept of Knowledge Process Outsourcing (KPO)
Knowledge process outsourcing (KPO) is the outsourcing of important, information-

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related business tasks. Contracting out work to people with advanced degrees and
experience in a specific field is called KPO. The information-related work can be
done by people who work for a different company or a branch of the same company.
There may be a subsidiary in the same country as the main company, or it may be in a
different country to save money and resources.
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Understanding the Release of the Information Process

The purposeful allocation of high-quality services, such as specialised knowledge
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or problem solving, to an outside organisation or external company with a high level of

technical expertise, often located in a different environment than the company itselfis
known as the information processing process.
The KPO is not to be confused with the outsourced business entity (BPO), which
(c
involves the outsourcing of personnel and other third-party work in order to save money.
Despite the fact that the KPO is a subset of the BPO, it includes the most exclusive,
analytical and knowledge-based labour.

Companies that engage in KPO appear to be able to find highly educated and
Notes
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skilled personnel without having to invest money on training and development for
outgoing or special projects that are not part of their regular work. A corporation
can swiftly recruit professionals in specialised industries with KPO to improve
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competitiveness and remuneration or to complete specific activities that do not
necessitate the appointment of specialist experts.
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Types of KPO Services
Some common examples of KPO release domains include:
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i. Financial advisers
ii. Research and Development (R&D)
iii. Business activities (consultation with management)
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iv. Technical analysis
v. Investment
vi. Official
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vii. Treatment and health care
viii. Data analysis and translation
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Figure: Various KPO Segments

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Reasons for the Release of the Information Process

Companies turn to KPO for specialised knowledge and experience when they do
not have the necessary knowledge base or skills in-house. Companies who outsource
KPO, on the other hand, frequently do so to save money by recruiting talented people
(c
at lower salaries elsewhere rather to hiring one person directly. Companies go to

KPO to simultaneously acquire highly skilled personnel at a cheap cost, which is
understandable.

A manufacturer, for example, might start with raw materials, add value to them
Notes
e
through numerous processes, and then sell the end result as a finished product.
KPO may be used by the company to identify how to increase the efficiency of its
manufacturing process in order to achieve the lowest feasible cost. His company may
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obtain a competitive edge as a result of KPO.
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Figure: Market Research, Financial Research and Business Analytics - KPO
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Advantages and Disadvantages of KPO
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Figure: Advantages of KPO

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By establishing new processes or simplifying efficiency, KPO can assist businesses

in lowering operational and production expenses. In addition, the KPO covers a gap
or need for skilled personnel in a certain industry. Existing personnel, including
supervisors, are freed up to do other tasks, enhancing efficiency and production.
(c
Because of the flexibility of KPO, the company can quickly add or decrease its
workforce. If the economy worsens, for example, a corporation can easily downsize

its KPO staff to save money. Alternatively, a business might quickly acquire specialist
Notes
e
personnel to increase profits or revenue. KPO aids in the company’s efficiency and
adaptability to changes in its industry and competitive environment.
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However, there are inaccuracies in KPO. If revealed or linked information is lost,
copied, or supplied to a rival, the privacy of the intellectual property and the security of
the firm may be jeopardised. Outsourced employee recruiting is a procedure over which
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companies have minimal control. As a result, the corporation may be unable to check
the character or quality of its outsourced employees’ work.
a. Using a KPO can take time and resources to get a project off the ground. Furthermore,
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given the legal, language, and cultural hurdles, communicating can be a daunting
and difficult endeavor. Another downside is that existing employees may perceive
their positions as being threatened by the hiring of outsiders. Let us learn more about
KPOs to gain a better knowledge of them -Cost performance:
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Obviously, one of the most significant advantages of KPO is the cost savings. The
corporation is not obligated to shut down any infrastructure or bear any operating
or operating expenditures. It also works well, delivering professional services for a
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fraction of the price.
b. Achieving the best talent:
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In the global talent field, KPOs supply the organisation with the best, most
knowledgeable, and competent people accessible. The cost of such talent is also
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affordable if the KPO is located in a developing country like India or the Philippines.
c. Focus:
It lets the company to focus on its core functions by eliminating some of the processes.
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KPO controls the company’s external activities, allowing it to focus more on its core
functions and increase efficiency and outcomes.
d. Better Resource Management:
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If a corporation implements a process that is not critical to its business strategy, it

can reinvest the savings in other areas. The corporation is reportedly releasing its
supply chain managers, according to the report. The resources they save can then
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be used to streamline the manufacturing process, improve R&D operations, and

improve marketing, among other things.
1.2.4 Outsourcing Logistics Management

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Logistics Outsourcing is a method of enhancing service quality. Because of their

expertise, experience, and superior instruments, transportation service providers are
regarded to be able to perform things better in general. Several academics also link the
)A
development of adaptability to the creation of jobs.
Export outsourcing allows businesses to take use of the most up-to-date

information technology and worldwide capabilities that other service providers have.
Cost savings are an important motivator for outsourcing. A change in cost structure is
the second most important motivation. After delivery, quality is the primary determinant
(c
of cost. The third and fourth most important factors are more flexibility and improved
service quality. According to Farahani et al., in addition to focusing on critical abilities,

service providers understand how they are regarded as the most popular motive for
Notes
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outsourcing (2011).
Export operations have been a prominent topic in industrialised economies for
in
numerous years, according to Frazelle (2002), and have encouraged transportation
sector service providers to prosper. From shippers and third-party logistics providers to
supply chain management and specialised supply chain providers, LSPs have evolved
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to provide a wide range of transportation services ranging from basic functions like
storage, transportation, and management to complex and complex network solutions that
include information processing. Today, transportation revenue reflects the LSP industry’s
economic significance. In 2004, the entire cost of transportation in Germany was
O
projected to be $ 170 billion, and the region examined in the study was Western Europe.
The extraction function is even more important in the context of inclusion and
the natural shift of value-added functions. As a result, inventory service providers are
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primarily reliant on retailers and manufacturers for both internal and external inventory
management.
If there is one thing that cannot be denied, it is that corporations have been
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compelled to compete in overcrowded growing marketplaces as a result of the level of
technical innovation and initiatives we have seen in recent years.
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Furthermore, a vast number of goods and services are currently classified as
“goods” (common products with little or no added value), forcing businesses to focus on
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prominence and positioning above the competitors.
Setting a good example is one of the finest ways to stand out from the crowd. How
can you benefit from logistics outsourcing?
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One of the primary reasons why businesses choose to outsource jobs to specialist
firms is to save money. By outsourcing your business, you avoid dealing with activities
that are unlikely to be unique; therefore, transferring such processes to external
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agents who specialise in these operations will almost certainly boost your company’s
outcomes, and thankfully, something is achievable. This saves money as well.
Logistics process flow

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(c
Figure: Logistics Process Flow

Backward logistics refers to the transportation of goods from where they are made
Notes
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to where they will be sold. It includes getting an order, packing the product, mailing it,
and getting it to the customer.
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If you want to return something, there are some times when you can do that. When
the reverse logistics process starts, that is when it does. Reverse logistics is a way to
get things back.
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Whenever customers want to return an item, some of its worth is lost and the seller
gets very little money back from the sale .As soon as possible, businesses try to get their
money back and put the goods back on the market. This is called “reverse logistics.”
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When something is returned, the manufacturer or company that sold the item takes it
back and plans what it will do after. The products that are returned may be thrown away,
repaired, or sold again to make them last longer. A process called reverse logistics is
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used to plan how to move goods in the opposite direction of where they came from.
Logistics Outsourcing and Its Types
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The decision to seek a foreign employment can be made in practically any
department of the organisation, but we will concentrate on outsourcing today. In this
situation, we can divide employment into four categories based on the area it affects:
1) r
Production: When a corporation achieves highly developed, simple, or simulated
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manufacturing processes, it can cease investing in a simple process and focus on
developing new designs or producing high-quality items.
2) Information technology: Because organisations frequently lack skilled and
specialised personnel, it is a widely employed strategy today. To cover these
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processes, employment is the greatest option.

3) Information: What links are offered to make it available to companies that they
know they would not have in-house and that they require access to right away.
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4) Business processes: This sort of outsourcing usually focuses on integrating

everything relevant to the company’s services. This is where we locate the products
that have been separated into categories for disposal.
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Figure: Evolution of Logistics

Providing specialized services to experts allows them to work in a unique style and
Notes
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stay up-to-date with the latest technologies, thus job outsourcing often means a better
supply chain with a higher level of quality.
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Here are some of the advantages of outsourcing:
a. Reduced costs.
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b. Great efficiency.
c. High quality customer service.
d. Ability to adapt to new markets.
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e. Fixed costs vary.
f. Comfortable transportation procedures.
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g. Flexible workload.
Many organisations are concerned about job losses because they believe that as
a result of the purchase of specific operations in the transportation chain, other persons
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or companies will lose control of these processes or the results they expect will not
be realised. While there are doubts that anybody can have it, there are no compelling
reasons for your firm to not offer some operations, as this would rely on your individual
needs.
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Clarification of what you are looking for in a work and the dangers you are taking.
It should be mentioned that the majority of businesses that have chosen to outsource
have witnessed an improvement in their bottom line.
The first step is to determine the important functions (also known as “core
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functions”) your organisation is developing. To figure it out, think about which one
determines the company’s competitive advantage over the competition.
Although every operation in a firm must contribute value in some way, when we talk
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about the “core function,” we should think about the functions that best describe your
organisation and place it among your best. section. Although logistics has always been
a primary concern for the organisation, not all businesses place a premium on delivery
as part of their value proposition.
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The next step is to determine which tasks are important (also known as “non-
essential”). These are the services that our clients request or that provide direct support
when it comes to safeguarding critical services.
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Finally, determine which activities are unimportant. These are complete

employment openings, however before making a decision, we should determine if you
are ready to act.
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Notes
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Figure: Specific Operations
To complete, we leave you with a small guide to find out which tasks should not be
excluded:
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1. The most profitable operations are the principal ones.

2. It receives special services.
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3. Jobs that have a significant impact on consumers.

4. Utilizes custom-designed technology.
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5. Frequently Used Services in Logistics Outsourcing

The most common transportation resources include:
Success of Logistics Outsourcing

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Finally, we must determine which aspects to avoid and which to include. To

achieve our complete purpose with this strategy, we must have sufficient resources
and a thorough understanding of all the reasons we choose to opt out, depending
)A
on company strength and our own judgements. As a result, we have compiled a list
of recommendations to guarantee that your export operations run well. The Logistics
Outsourcing Process After you have agreed to transmit to 3PL, what happens next? To
begin, you should be aware of the abundance of 3PL options.
To begin, give it your best. You should investigate the several third-party logistics
(c
(3PL) organisations that are available to you. Numerous them offer a diverse range
of services. Begin by compiling a list of the services you require. Finding a long-term

relationship is crucial. When you are certain of what you want, you make things simple
Notes
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for yourself.
Second, you want to ensure that your objectives are mutually exclusive. Discover
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3PL’s long-term goals and vision. You will want to ensure that their personalities mesh
well with yours. This is explained by what I previously stated. 3PL must be viewed as a
long-term strategy if it is to be a viable alternative for you.
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Cost savings as a result of outsourcing can take months to realise. If you rent
3PLs for a part-time job, you almost definitely will not realise the benefits. Since then,
it is been a collaborative effort to put everything together. This includes technology,
O
equipment, and personnel.It is still your business.
I would want to make a brief digression here to emphasise that dumping products
in 3PL does not absolve you of responsibility. Finally, you are in authority of your
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organisation. You and 3PL must work cooperatively. While you must trust 3PL to do an
excellent job, it is still your company’s representative.
Finally, if something goes wrong, you, not 3PL, will suffer the bulk of the blame.
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You have an obligation to your clientele. He is ultimately responsible for their pleasure.
Some final thoughts-
As your company grows, it becomes more difficult to correctly address all of your
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consumers’ needs. Getting rid of your logistics requirements, on the other hand, can
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be the ideal option. That way, you may concentrate on what you do best. You can run
and manage your company in a style that emphasises revenue and profit. The 3PL you
hired can then ensure that your logistics division runs smoothly and efficiently.
However, you must ensure that the employment offer is worthwhile. It is a complete
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commitment. You must ensure that the values of your organisation and the 3PL you
have chosen are compatible. Furthermore, getting out must be a very wise decision.
This guide should help you gain a better understanding of job placement.
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There are numerous reasons to sell your company’s assets. Frequently, major
promotional companies should think of it as an expense. Businesses, of course, are
always seeking for methods to save money and enhance revenues. However, there are
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more reasons to go out.
Cost
Logistics is, without a doubt, an expensive business. As a result, it is probable that
your business will desire to cut those expenditures. By employing 3PL, you will be able
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to save a lot of money. 3PL, for instance, will have its own equipment and personnel.
Only these two areas can help you save money on employees and upkeep.
)A
Access to Technology
Technology is clearly advancing at a breakneck pace, especially in transportation.
Transport with a 3PL concentration will be at the forefront of that developing technology.
They require technology to work correctly because materials are their whole emphasis.
(c
This technology can take many different shapes. Here are a couple such examples:
a. TMS (Time Management System) (transport management system)

b. Software for fleet management

Notes
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c. Tracking using GPS
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The Flow of Digital Work
Your organisation, on the other hand, must concentrate on what it does well.
Customer interactions are frequently prioritised. Your capacity to stay on the cutting
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edge of transportation technology is jeopardised because you must concentrate on
those areas.
Relationship Growth
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So, how might 3PL assist you in improving your client relations?
In fact, hiring 3PL means you are seeking for a long-term solution for your
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business. When you contact with clients, they will almost always leverage your
marketing. This could include things like your logo and clothes. While representing your
goods, a high-quality 3PL will have a beneficial impact on your customer connection.
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When compared to employing a transportation dealer, this is a better option.
Consumers will be their exclusive representatives. As a result, they are solely
concerned with collecting property from point A to point B. 3PL, on the other hand, aims
to gain from strong client relationships.
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Scalability
3PLs are built to respond to fluctuations in consumer demand. Consider the
case where your product’s demand rises. 3PL has the necessary equipment and
infrastructure in place to meet the demand. However, if you handle it yourself, you
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expose yourself to potentially high expenditures.
You can, for example, buy more resources to fulfil rising demand. You are,
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nevertheless, bound by an empty charge if the requirement is transitory or seasonal.

You will be forced to pay for equipment that you will never use. In most cases, this is a
surefire way to lose money.
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1.3 Management Consultancy

Management Consulting
“Advisory and/or implementation services to (senior) organisational leaders with the
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goal of increasing the efficacy of their company strategy, organisational performance,

and operational procedures,” according to the definition of management consulting,
also known as business consultation. Due to the large range of courses and abilities
)A
required of consultants, management consulting is the most diverse field in the

consulting industry, accounting for 50 percent to 55 percent of total market share.
Management Consulting Market

Global consulting services management revenue is estimated to exceed $ 130
(c
billion by 2020, accounting for slightly more than half of the whole consulting market.
Throughout, the cost of consulting with managers has climbed by more than 4% every
year, however the proportion has recently increased in line with mature economies’
economic stability. Labor negotiations are the industry’s most expensive segment,
Notes
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costing $ 70 billion, followed by labour and strategic consultations, which cost slightly
more than $ 30 billion. Management is divided into three service categories. Job
consultation, which focuses on strengthening organisational governance; and HR
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consultation, which focuses on human counselling and/or consultancy services aimed
at improving HR performance results.
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Management Advisors
Decision makers hire managing advisors for a variety of reasons, including getting
guidance on organisational strategy and difficulties. They may be asked to establish a
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new plan for further expansion, or they may be tasked with advising on new ideas or cost-
cutting. The consulting performance side creates the largest market for management
coaches in practise, and implementing the offered solutions also integrates their
functions. Optimizing the effectiveness of corporate operations, deploying new IT
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systems, outsourcing, and improving a supply chain are only some of the tasks that need
to be completed. Managing coordinators are often on the job until the modifications are
complete and new ways of functioning are integrated into day-to-day operations.
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Firms Consult With Management
Because management consulting accounts for more than half of the consulting
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sector, the majority of market participants are likely to be specialised management
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consulting companies or corporations with a business unit that offers management
consulting services. It mostly affects big IT service providers (who frequently give
implementation support and change management), hiring organisations (who frequently
expand their hiring and temporary services through an HR consultant), and temporary
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employment agencies (who can add top consulting services). to their contract and
temporary portfolio). In terms of numbers, freelancers - independent management
consultants who work as independent consultants or contractors - make up the majority
of the industry.
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1.3.1 Introduction to Management Consultancy

(c
Working with renowned Big Five management firms such as McKinsey, Booze
Allen, Boston Consulting Group (BCG), Price Waterhouse (PWC), and Anderson
consulting is a dream come true for many management graduates and students

in business schools. Indeed, the fact that these consulting firms are frequently
Notes
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granted Day Zero or opening seats on the campus rental calendar demonstrates that
management experts value product image and ideas. This means that it is critical to
understand what these businesses are up to and how they contribute to the community.
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As a result, we must comprehend how they operate, what they do, and why they are
every management professional’s dream.
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Figure: Consulting Methodology of Deliver the Project
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Management Consulting and Investment Banking
A survey of the field of management consulting is included to help students
obtain a better understanding of these topics. Before delving into the specifics of the
discussions, it is important mentioning that CEOs compete with investment banks for
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the opportunity to represent industry leaders and management experts. As we will see
next, this has a direct effect on how organisations operate in terms of which corporation
or investment bank is most frequently employed to counsel business leaders.Indeed,
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both management consulting firms and investment banks negotiate with the industry to
ensure that firms profit from their operations and that the difference between their costs
is usually related to the terms of reference, with management consulting firms including
wider and operational environments while investment banks focus on the financial
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markets. It frequently focuses on finances and tactics for raising funds and ensuring
that firms compete in this area.
Management consultants are hired to offer and recommend ideas and methods for
increasing a company’s profitability. Operations, finance, marketing, strategy, planning,
m
human resources, and the firm’s essence and purpose are just a few examples. It is
not uncommon for management consultants to advise a total revamp of a company’s
operations, such as reducing the organisation and removing it from its current emphasis
)A
or refocusing on existing initiatives.
Indeed, the term “key skills” was coined as a consequence of extensive research
and collaboration, with the authors recommending that businesses first identify their core
talents, then refocus their strategies and organisational structure on those competencies.
(c
Apart from that, management counsellors employ concepts like restructuring,

rebranding, reorganising, and re-evaluating to offer various ways to businesses. The
BCG growth matrix has surpassed the Ansoff Matrix as the most popular management
consulting tool, both of which define and categorise the company’s place in the present
Notes
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system of things and offer strategies to enhance profitability.
Of course, when it comes to industry consultation, management consultants are
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not always correct. Management advisers and investment banks, for example, made
a big mistake in the aftermath of the global financial crisis in 2008 because they failed
to identify the coming problem or were like an ostrich with its head in the sand when it
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came to warning enterprises about a disaster.
Even before the crisis, management advisers were warned to be extra cautious
and not get swept away by fashion, craziness, or inane humour, as evidenced by
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their poor dotcom growth path and the succeeding outbreak, in which they and their
suggestions to many. firms were found to be incorrect. Indeed, if there is a valid
complaint of management consultants, it is that they use a lot of jargon phrases and sell
their proposals and recommendations in such a sophisticated and courteous manner
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that the sheen wears off.
Management Coordination Coordination: Having said that, consultants should not

be fired lightly. One of the reasons many CEOs (Chief Executive Officers) recruit them
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in the first place is because they bring in outsiders’ perspectives and can deal with the
difficulties that businesses face in a meaningful way with young people. Apart from
that, management professionals bring their knowledge and expertise to the table when
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they are in a position to recommend alternative strategies as a result of their in-depth
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involvement and wealth of business information and knowledge, which allows them to
spot trends and anticipate future changes. As a result, we believe that management
consultation should be evaluated equally and deemed both good and negative.
You may have encountered communication and will require a clear and simple
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introduction to this area to assist you comprehend its procedures and ways to recruit
and use management counsel in the future, whether you are trying to better your
management education or company experience. This article gives you the tools you
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need to succeed in your studies as well as the most recent industries in which you
work, not simply consulting businesses. The material is organised around learning
objectives that will help you better grasp “what,” “how,” and “why” when consulting with
your management and stakeholders at large and local scales, as well as providing
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real-life examples of engaging and more. www.sagepub.co.uk/baaij/baaij/baaij/baaij/

baaij/baaij This article will benefit your management knowledge and skill set across
all strategies, transformation, problem-solving, decision-making, communication, and
implementation solutions used by top management companies around the world, such
as McKinsey & Company, The Boston Consulting Group, and Bain & Company, in
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addition to comprehensive management consulting courses.
1.3.2 Evolution of Management Consultancy

)A
History Of Consultation
People use the term consulting all the time, but let us consider what it really means
and where it came from.
(c
Arthur Dehon Little started the first management consulting firm in 1886,
specialising in technical research at the time. Arthur D. Little, on the other hand, refused

to adopt traditional styles as the area he founded continued to flourish - in his opinion -
Notes
e
according to very similar norms.
In 1914, Booz Allen Hamilton became the first corporate management consultant to
in
work for industry and government clients, while McKinsey & Company became the first
modern, pure management and strategy firm. Marvin Bower, the company’s CEO from
1950 to 1967, later introduced a ‘professional’ designation for professionals, focusing on
nl
senior MBA students.
When it comes to sharing ideas, Arthur D. Little was opposed to any type of
systematisation since he wanted to solve the complicated difficulties that businesses
O
face. In each case, he attempted to come up with a unique answer. Some counsellors
assume minor risks by dealing with well-known issues and passing information from
one group to another. For a while, instead of inventing new things, this work evolved
over uniformity.
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A departmental framework was later formed with the DuPont Company. They
restructure their company around a variety of products, such as explosives, stains, and
paints, rather than the prior job-based structure of sales, production, and R&D.
si
While consulting firms contributed to the rise of multi-departmental structures from
the 1940s to the 1960s, starting in the mid-1960s, they began to sell strategies rather than
r
real estate. Consultants took on a completely new function in firms in the late 1980s: they
validated their strategy. The expansion of strategic consultation led to the consolidation of
ve
practises, or institutional isomorphism, as Paul DiMaggio and William Powell put it.
It is worth noting that the firm did not recognise it was recruiting professionals until
the mid-1960s, which could indicate that it was going through a difficult period. With the
ni
goal of offering explicit guarantees of their legitimacy, European enterprises were the
first to openly declare the hiring of American consulting firms.
It is crucial to note that experts perform two key tasks: providing information
U
and providing legal assistance. Their job was to develop conclusions based on their
expertise and experience and then transmit those conclusions from one company to the
next. This is where they got their counsel from the firms who employed them.
ity
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)A
Figure: History of Management Consultation

(c
Figure: The Evolution of Performance Management

1.3.3 Skills-Set Required for Management Consultants

Notes
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To examine and implement ideas linked to quality or process improvement, the
project management coordinator serves as the planner, consultant, and leader of the
in
project management team.
Project management consultants are valuable assets to any company because they
help project stakeholders discover and correct inefficiencies in processes and work flow.
nl
A project management coordinator’s responsibilities typically include coordinating
a number of various projects at the same time, which can range from business-wide
programmes to specialised business projects.
O
It will provide you a comprehensive explanation of the functions of a project
management consultant, their responsibilities, the salary structure of a project
management consultant, and the skills required to become an effective project
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management consultant in this post.
r si
ve
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Figure: Self & Personal skills

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Managing one’s own and personal abilities is a way of taking charge of and
responsibility for one’s own professional growth. In many ways, all of the activities
offered by the AUA are related to this behaviour because they all provide opportunity
for you to grow outside of your function and through your institution. As a result, the
ity
alternatives listed below are just a handful of the most pertinent options available if you
want to improve this behaviour.
One component of this is the capacity to take charge of your own growth and
successfully manage your time and resources.
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Project Management Advisor

Overview
)A
A project management consultant delivers specialised knowledge and abilities to

businesses, allowing them to make educated decisions throughout the project’s life
cycle, from planning to completion.
Project management coordinators are in charge of not only putting project

(c
management plans into action for successful projects, but also of completing them on
schedule, on budget, and with the resources allotted.

In addition to putting in place a project management plan, managing the budget,

Notes
e
and effectively using resources, the project management coordinator’s responsibilities
also include monitoring the project team, liaising with key stakeholders, identifying
project risks, and developing new solutions that can negatively impact projects. to help
in
the organisation achieve its goals
A project management consultant typically analyses the most significant company
nl
data to detect inefficiencies and project styles, preventing difficulties and allowing for
a smooth project execution. Project management coordinators are also responsible
for creating and implementing emergency plans, reading road maps, and making
occasional recommendations.
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Job Description of the Project Management Coordinator
The project management coordinator must be well-versed in the tools and
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procedures required to complete projects efficiently and affordably. Other key project
coordinator roles include: planning, coordinating, sharing, influencing, and leading the
project management team.
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1. Familiarize yourself with the client’s business environment to lead successful projects
2. Communication with relevant stakeholders, both within and outside the organization
3.
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Assign tasks to the project management team and provide regular guidance to team
members
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4. Ensuring that scope and schedule of projects are achieved within the given time and
budget
5. Perform periodic reviews to ensure that projects are moving in the right direction
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6. Regularly review project documents and forward them to management

7. To develop good relationships with partners and customers
8. Define project design, objectives, and resource requirements
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9. Use theory, management skills, and technology to achieve identified and deliverable
goals
10. Using a solid project management strategy to depend on one of the tasks
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11. Discuss project-related issues with the project management team, clients, and other
interested organizations
12. Project risk management, emergencies and mitigation programs
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13. Maintaining high team performance and productivity
Project Management Advisor Skills

)A
Key consultant skills to manage projects required by modern hiring organizations

include:
1. Analysis skills are special

2. Expertise in project management tools and software
(c
3. Strong leadership and motivational skills

4. The experience of leading both physical and physical groups

5. Ability to work with different stakeholders in a variety of project areas

Notes
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6. Excellent time and cost management skills
7. In-depth organizational information
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8. Excellent problem-solving skills and resource planning
9. Expert in creating project reports
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10. Strong interpersonal skills
11. Effective management and prioritization of tasks
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12. First class communication skills and oral writing
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Figure: Transition Management Skills

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1.3.4 Performance Counseling

Employees with low performance are given basic performance counselling by
their supervisors. Counseling sessions are held in particular when an employee fails
m
to improve his or her performance despite getting informal notice or guidance. As a

result, official working counselling sessions can be held to explore problem areas and
solutions. This can happen in a variety of situations, including a routine performance
appraisal system, an inspector’s performance appraisal, or a routine assessment of
)A
critical staff development requirements.

(c
Figure: Advice Plan for Low Performers

Advice Plan
Notes
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i. Usually, counseling sessions take place in secret between the supervisor and the
employee rather than the person watching / supporting the person attending the
in
sessions if needed.
ii. Successful counseling sessions are characterized by consultation, two-way and
openness. The employee is given the opportunity to explain the reasons for the
nl
inefficiency.
iii. Expected performance levels have been transferred to the employee and a given
time plan is written.
O
iv. Records of counseling sessions are maintained, properly signed by participants
v. The supervisor monitors from time to time to ensure that work is progressing
according to schedule and deadlines.
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Principles of Performance Counseling
Counseling is a means to an end, not an end in itself, and progress does not
si
happen merely because there is counselling. Employee counselling can be a useful tool
for helping people connect with their workplace and feel more connected and fulfilled.
The following conditions must be met for psychological counselling to be effective:
a. Normal Climate of Openness and Similarity

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b. Practical Management Attitude Common and Sensitive
c. Feelings of Unrestricted Involvement in the Performance Review Process
d. Dialogic Relationships in Objective Setting and Performance Reviews
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e. Focus on Work-Based Behavior

f. Focus on Work-Related Problems and Difficulty
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g. Avoiding Salary Negotiations and Other Rewards

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)A
Figure: Performance Counselling Skills
Normal Climate of Openness and Similarity

Counseling will not function in any organisation where employees are working
(c
under duress and people do not trust one another. A climate of trust and transparency is
necessary for effective counselling.

Practical Management Attitude Common and Sensitive

Notes
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A counsellor must have a broad sense of humour and empathy for the client in
order to provide effective counselling.
in
Feelings of Unrestricted Involvement in the Performance Review Process
Counseling will not be effective unless the sub-department or organisation feels
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secure enough to engage in the review process and provide input without constraints. It
is a process of establishing communication that ultimately adds to a deeper knowledge of
the mentor, rather than a single style of interacting with a job he should or should not do.
O
Dialogic Relationships in Objective Setting and Performance Reviews
This is not focused on the mentor meeting his or her performance goals, which
were developed in cooperation with his or her supervisor. It is essential for both policy
ty
setting and performance review, and it is dependent on the employee’s cooperation and
that of his or her reporting authority. Without such a concentrated effort, counselling will
not achieve its aim.
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Focus on Work-Based Behavior
The goal of career counselling is to help the employee improve his or her
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performance, and it is possible that focusing on work-related goals rather than a variety
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of other topics will be more beneficial.
While doing so, other personal difficulties may come up, but these are used
to refocus the conversation on the development of organisational roles rather than
personal or general personal issues.
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Focus on Work-Related Problems and Difficulty

Not only is it related to the achievement of goals, but also the contextual problems
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in achieving or not achieving goals. Performance analysis, therefore, becomes the

basis for advice.
Avoiding Salary Negotiations and Other Rewards

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It may not fulfill its purpose if it includes a discussion of salary increases, prizes,
etc. Finally, the main purpose of performance counseling is to use performance analysis
to plan and improve performance, rather than to understand the relationship between
performance and reward. such as salary, etc.
m
Performance Counseling Skills

The following practical skills counselling skills are supplied for counselling
)A
purposes:
a. Obedience
b. Asking questions and answers
c. Emphasis
(c
d. Good Strengthening
e. Performance Counseling Skills
a. Obedience
Notes
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Active listening, which entails paying attention to the numerous messages
conveyed by the other person, is an important part of active counselling. A clear
in
message is one that is transmitted (a message of comprehension) but kept hidden
throughout the process, such as sentiments and concerns that someone else may not
be able to express properly.
nl
Effective counselling necessitates the ability to listen to feelings and concerns,
which necessitates the use of practical skills. There are a variety of other tests that can
be used to improve concealed message listening.
O
b. Asking Questions And Answers
The questions asked might either aid or obstruct communication. Questions can
be used to help you locate additional knowledge, establish common ground, explain
ty
concerns, and inspire thought. When it comes to counselling, questions are quite
crucial.
Some inquiries will shut down the counsellor or make him or her dependent on the
si
counsellor, while others will make the counsellor autonomous. Obviously, the latter, not
the former, will be beneficial.
c. Emphasis r
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When asked questions about a person’s feelings, concerns, and problems, not so
much as finding solutions to anxiety and anxiety, it can be said that they are stressful
questions.
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It is a very important task for a supervisor to show empathy to the employee but he
should also do so in this case, when the supervisor asks the employee: “How are your
son’s feelings now?”, Not only seeking information, but actually expressing his personal
concern for the employee’s son’s health. Such questions asked by officials help to build
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trust and confidence in the required staff. Empathy questions create a climate of trust
and understanding and this is very helpful in counseling.
d. Good Strengthening
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Skinner proposed that people can only modify their behaviour with positive
reinforcement, rather than with punishment or reinforcement that is ineffective.
Providing motivation and bolstering success are two ways to influence behaviour so
that one can go a step farther and try new things. Positive reinforcement encourages
m
testing and risk taking, which is necessary for change to occur.
Performance Counseling Categories

)A
1. Communication structure
2. Testing
3. Action
(c

Notes
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in
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Figure: Performance Counseling Phases
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Employees need performance coaching to understand their current level of
performance and areas where they need to improve. Performance counselling may be
quite beneficial if both the counsellor and the counselee approach it in the proper way.
It assists both the employee and the business in identifying deficiencies and formulating
ty
strategies to improve performance. In the end, it aids the company in achieving its aims
and objectives. It is critical to review employee performance on a regular basis in order
to determine their level of efficiency.
si
Some standard approaches have been developed to help employees realise
how far they fall short of the desired standards and how to improve their performance.
Employees who are falling behind in some key performance areas want assistance in
r
analysing and improving their performance. As a result, the performance assessment
process aids in evaluating and improving employee performance so that they may give
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their all to meet the organization’s goals while also achieving greater job satisfaction.
Communication structure
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A good mentor seeks to create a climate of acceptance, warmth, support,

openness, and cooperation during the relationship-building period. This area involves
gaining workplace self-confidence, being open-minded, and sharing her thoughts,
issues, anxieties, and sentiments, among other things. The subordinate should be
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made to feel important and that his or her boss is truly concerned about his or her
advancement.
●● Testing
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At this point, the counsellor should attempt to assist the employee in

comprehending and appreciating his or her own talents and flaws. He should also be
aware of his current condition, difficulties, and requirements. To assist the employee in
focusing on his or her problem, questions should be posed.
m
●● Work Planning
Discussions in counselling should conclude with concrete action plans for
)A
improving the job. The supervisor’s key contribution during this phase is to assist the
employee in coming up with alternative solutions to the problem.
Finally, the supervisor may offer assistance in putting the agreed-upon action plan
into effect. Due to a lack of follow-up, many well-informed counsellors fail to achieve
beneficial results.
(c

1.4 Case study

Notes
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Management Information System: Case Study of Amazon.Com Miss. Ayse Demir
(MBA) University of Wales
in
Organizations in the E-commerce sector are looking to build crucial abilities in
order to support a one-of-a-kind process of collecting personal information about clients
and their purchasing habits. The research looks at how Amazon, a service-based
nl
company, uses management information systems. A potent instrument for gaining a
competitive edge through strong governance and information access. The research
gives an overview of Amazon’s best MIS practices across its whole value chain.
O
Technical testing, procedure, and data analysis are used to highlight the MIS
variance in the report. Amazon uses a variety of programmes from the time a customer
first visits the website to the time they make a payment. The delivery mode has
ty
been chosen. Discussions on recommendations are also included in the report’s last
section. Amazon’s plans to improve its existing management information systems.
Recommendations are backed up by evidence. In determining the quality of information
and the likelihood of the suggested implementation strategies.
si
I. Introduction
Companies in the e-commerce sector are attempting to develop core competencies
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by developing and implementing a different procedure for collecting personal
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information about clients and their shopping habits. The report examines how Amazon,
an organization-based corporation, uses management information systems as a tool.
A powerful instrument for gaining a competitive edge through strong governance and
information access
ni
The research gives an overview of Amazon’s best MIS practices across its whole
value chain jobs. Technical testing, procedure and data analysis are used to highlight
the MIS variance in the report. Amazon uses a variety of programmes from the time a
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customer first visits the website to the time they make a payment. The delivery mode
has been chosen. Discussions on recommendations are also included in the report’s
last section.
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Amazon’s plans to improve its existing management information systems.

Recommendations are backed up by evidence. In determining the quality of information
and the likelihood of the suggested implementation strategies.
Management information systems aid in the more efficient and effective integration
m
of the company and its systems. A useful technique of illustrating the interactions
between humans and information systems MIS streamlines strategic and operational
management decisions. Amazon’s Backstory reflects the firm’s overarching strategic
)A
goals and the effective arrangement of its information systems
Amazon’s E-strategy has been optimised by maintaining a distinct and distinct

website that of its well-organized systems In a global environment, MIS has played a
critical part in the company’s growth. Weber et al., 2010. Amazon has found that MIS is
a useful tool for streamlining its management and operations.
(c
At the same time, through its MIS, it has assured that customers receive a wide
range of services (Cao, 2011). The function of the organisation in the process of

gathering and integrating data and pertinent activities. The importance of business
Notes
e
resource management systems could not be overstated. ERP systems differ in terms
of their functionality combining external and internal data that affects internal operations
management E trade associations provide a strong platform for both internal and
in
external integration. Stakeholder expectations and the organisational process the
number of software program is utilized by E-commerce companies is expected to rise
and shifts as a result of factors that influence expectations and the impacts of software
nl
use Software Stop management is regarded as an essential instrument for managing
the environment and life cycle as a whole major software development initiatives (Bajaj,
2011).
O
Customer relationship management (CRM) has become a well-known term
among increasing E-commerce companies organisations. Through marketing and
technology, CRM supports the company in managing its information customer service
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and assistance its usefulness is demonstrated by the fact that it was implemented
successfully and the efficiency with which the company is able to realize the benefits of
the knowledge gained through partnership clientele from the corporate world
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Ii. Case Study of Amazon
Amazon, which operates as a worldwide e-commerce company and also provides
cloud computing services, is already at the vanguard of the internet retailing. Integration
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of Customer Relationship Management and information management in the overall
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company system have been the two technologies that have driven Amazon’s growth.
Linux has become the driving force behind Amazon’s technology, with the company’s
IT infrastructure capable of handling over a million jobs and enquiries, as well as
extracting more than half of the capacity of retailers. Every day, the organisation
ni
faces security concerns such as credit card information and debit card information
for over 1000 consumers (jordon, 2008). The company uses a customer relationship
management module, which is part of the management of business resources, to keep
U
track of its customers’ personal information and purchasing habits, as well as marketing
and organisational advertising campaigns. Amazon had a unique marketing strategy
that reflected their MIS. The organisation has transitioned from a one-tier marketing
approach to a multi-level e-commerce strategy in terms of jobs.
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The organization’s first growth was a consumer and business consumer model
business strategy favourite. The rate has risen as a result of recent developments in
the E commercial population. As a result of the consumer-business interaction, Amazon
was forced to prioritise modifying its IT in order to inform and respect user reviews as
m
part of their company operations (Jordan, 2008). Amazon’s development has been
fueled by exceptional sellers, as the company allows people to sell and buy things using
Amazon as a platform. The business model of Amazon demonstrates management
)A
information systems. Browsing, account management, and purchase are the final steps.
In all of the areas listed below, unique MIS and technology play a key role. Amazon’s
elastic cloud computing service has proven to be one of the most effective online
services accessible. EC2 was created by Amazon to work with the machines of web-
based developers. It allows customers to utilise Amazon computer sites and offers them
(c
complete control over their computers’ behaviour. The appeal of E2C computing on
Amazon is its ability to save time by obviating the need to set up a new server (Janice,
2011). End user developed an Amazon machine image to leverage E2C services. The

most appealing aspect of the E2C is that it is the only genuine pay feature available,
Notes
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allowing developers to tailor their applications to the most typical failures on their own.
in
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Figure 1 Source: (Ellis, 2011), The E-commerce book: building the E-empire p: 45
The S3 is an online storage device that is one of Amazon’s E2C applications. End
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users can save, retrieve, and use any volume of data in any non-essential location
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at any time using the interface. Users begin surfing to locate the things they want to
purchase. Amazon is currently using a business search agent approach. It employs
the data mining process, in which information about products and services is retrieved
from a central data centre and results are delivered to clients. Customers who want
to sell their product should post a product image along with a brief description of the
ni
circumstance. As a commercial platform for its business-to-business, consumer-to-

consumer transactions, Amazon is adopting the brokerage model. Amazon charges
a fee for end-user usage. Amazon also employs auctioneers, which integrate bidding
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information with fulfilment. Amazon has a copyright (US patent No. 8, 2005) for
providing personalised material to customers by tracking users’ actions during a filtering
session. This programme is unusual in that it demonstrates Amazon’s capacity to
deliver products to customers who are most likely to purchase them during a search.
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When customers look for or finish a book in a conspicuous position, the lines “buyer this
product / book has also been purchased” show the company’s success in increasing
customer retention rates while also evoking a sense of customer satisfaction.
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Online Shopping and Order Tracking

)A
(c
Figure 2, Source: (Kleindl, 2011), E-marketing, p: 89

Customers can add as many things as they want to their shopping cart. This
Notes
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platform’s CRM connectivity allows users to see products purchased from adjacent
networks. Customers could do so as well, allowing them to save a product for future
purchases. The Infomediary model of MIS is used to store this data. Within the website,
in
Amazon has established a social media platform that allows for more involvement.
This time, Amazon allows users to access their search histories, allowing them to
nl
purchase the same things they previously purchased. Amazon patented this function on
June 28, 2005, adding to their list of critical talents in management information systems.
The Amazon sign-in procedure captures new user information regarding the forms
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they need to fill out, which is directly linked to the Infomediary model. The next time a
user goes into the Amazon website, they will be presented with a list of Amazon product
recommendations.
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Amazon employs the Infomediary model to collect consumer purchases as well
as personal information that is thoroughly examined and analysedin order to launch
marketing campaigns (Allen, 2009). Amazon uses this information to provide regular
consumer suggestions for things that have been purchased or visited. During re-
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registration, you will be asked about your personal preferences. Customers provide
recommendations based on key words from their favourite places (Poynter, 2009).
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Receipt of Customer Delivery Address
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Customers must give a shipping address to which the product will be delivered. In
rare situations, the customer may order a product from Amazon and then return it to the
address provided during registration (Anderson, 2011). Users can save time by using
the file retrieval option address instead of re-entering the address. Customers can save
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by offering a new name if they want to add a different address (Janice, 2011).
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Figure 4: Source: (Ghosh, 2010), E-commerce security and privacy p: 114
End customers can choose from a variety of shipping methods available on

Amazon. Customers are given instructions by picking shipping options that fulfil the
(c
requirements of the business resource management - transport and service delivery

department. The Amazon logistics department uses this data on a regular basis to
ensure that customers receive their orders on time (e jordon, 2008).
Amazon uses a variety of technologies, including web services, middleware,

Notes
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groupware, and more. The importance of communication cannot be overstated. The
basis for management information systems is laid here. Transportation, accounting, and
human resources are examples of internet-connected business processes. Amazon’s
in
business processes and technology are linked to active data management systems,
and they rely on one another (Bryce, 2009).
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Payment systems offered by Amazon customers
The Amazon payment gateway credits the end user’s bank or credit card
information, allowing them to place a product order. Netscape Secure Commerce
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Server is a functional tool used by Amazon to save bank details via a secure socket
layer. Furthermore, data is not made available online, allowing for consumer data
confidentiality and privacy.
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The organisation also gives customers the option of paying a portion of the online
payment and then waiting for the product to arrive after communication. Users are
informed about legal and privacy laws in this regard, and the platform ensures that
customer trust builds (Chaffey, 2009). Integration of logistics systems with customer
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contact information is another significant aspect of Amazon CRM. Customers can
watch the progress of their login delivery on the Amazon website and input a unique ID
number; this increases customer confidence in the middle by allowing them to see the
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services. Customers can check the status of their orders at any time (Kleindl, 2011).
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Each Amazon marketing plan is based on customer behaviour, and Amazon enjoys
offering an incentive marketing programme to attract more customers and company
to its website. Amazon employs promotional marketing to collect customer information
that is utilised to advertise the organization’s operations as well as sold to other
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appropriate layers for a fee. The interface at the front of the visible shop has attracted a
large number of clients to the Amazon website (Kalb, 2009). Amazon has been able to
promote word of mouth marketing through increasing customer loyalty by using virtual
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stores to improve retention of existing customers. Customers enjoy the value Amazon
provides them since the corporation makes every effort to understand changing
preferences and expectations.
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Amazon employees are happy with their jobs because ERP software sets
expectations for end users in marketing, sales, and business process management.
Automated repositories provide the same purpose as employing an interface where
personnel connect with consumers who are unconcerned about Amazon (Schenk,
2009). interaction with customers A cloud computing platform is used by Amazon. After
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successful integration and management of information systems, the company’s AWS

product has served not only as a product but also as a tool (Helsing, 2011).
)A
3. Recommendations
3.1 Improving product screening and boosting anti-crime information theft
interventionsIn terms of customer relationship management, Amazon could allow
customers to filter a given book / product based on the most recent products, user
(c
reviews, and ratings. Technological issues are a significant impediment to the adoption
of innovative applications. Amazon is continuously beset by identity theft issues, which
necessitates customers providing information on the calculation of what is available to

Amazon users. This needs to be addressed with a strong anti-theft intervention that
Notes
e
raises client awareness (Allen, 2009).
Integration of website functionality and Social Networking
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As a result of combining information acquisition from advertising, commerce, and
postal services, Amazon needs to develop adaptable interactions. The organization’s
MIS should assist in providing customers with touch points at all times. Amazon
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must link its entire platform with social networking sites in order to use a customer
relationship marketing platform and win more customers. The bulk of clients are present
in a public area, which is reflected in the MIS of Ebay and future E commerce firms.
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When a user’s buying experience is combined with his or her social media profile,
Amazon’s products and services are advertised to surrounding networks of end users.
Amazon may employ business-based business planning tools to share reviews once
and for all, which will boost customer trust (Anderson, 2011).
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Establish Customer Relationship Management interventions in all business
operations
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Amazon:
Amazon should invest more in customer relationship marketing and increase
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the performance of its products as a result. This necessitates widespread distribution
and the expansion of hitherto untapped markets. Amazon needs to examine the next
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possible market in terms of demographics using data from customer purchasing
styles. As the number of individuals using mobile applications, iad, and tablets has
grown, so has the possibility for tailoring the demands of end users (Bryce, 2009).
Separating client preferences based on racial backgrounds will aid in the provision of
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distinct online information for users from various domains and languages. Customer
language choices can be customised at the time of purchase, which will improve the
purchasing experience. Miss should be used in the examination of prominent brands
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to a greater extent. Amazon’s information systems have a culture of statistics because

the corporation must assist not only customers, but also partners and products that do
business with them (Goldsmith, 2011).
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Implementing intelligence programs and smart virtual agents

Another suggestion that could work for Amazon in the long run is to deploy artificial
intelligence systems to strengthen present customer interactions. The employment
of intelligent virtual agents has the potential to shape Amazon’s and its information
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systems’ future. Additional adjustments should be made in accordance with information

systems that interact with humans. Change management must be as ubiquitous as
Amazon’s E-strategy, which must be flexible enough to accommodate shifting needs
)A
and client demands (Goldsmith, 2011). All stakeholders must be consulted before
smart agents are aligned with all MIS systems. Amazon should strive to ensure that its
technology and platform outperform its competitors’ current IS.
The usage of avatars and avatar branding as an Amazon business agent has only
one effect: it changes the way management information systems are used. Marketing
(c
and the logistics team will collect and translate data for visible agents to help increase
the performance of relevant departments (Cao, 2011). Intelligent virtual agents will

pave the path for one-on-one interactions with Amazon customers. In the short term,
Notes
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current client bases and marketing platforms will undoubtedly supplant clever agents
(Shanahan, 2011).
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To grasp linked difficulties, Amazon can utilise smart virtual agents as a visual
bridge. Performance and logistics. It is possible to launch a 24-hour chat service,
and feedback and engagement can be saved as data for future use (Dummies,
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2007) Supply chain management, customer relationship management, performance
management, and people management are all aspects of supply chain management.
Smart virtual agents should be used to drive Amazon service management. Customers
have been adding a collection of complaints owing to the delays they perceive in
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responses till MIS performance in addressing client questions improved. Smart virtual
agents can assist a business in reducing its reliance on a customer support centre while
also lowering the maximum amount of human resource costs (Weber, 2010).
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Customize Marketing campaigns
Customer needs should be the focus of Amazon marketing strategies. Customers
who use data in a specific neighbourhood will encourage this technique, resulting in
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newspapers that are tailored to the demands of certain consumer groups. Amazon’s
advice will not include suggestions for how to improve its technology or platform; rather,
it will focus on how to link and make the greatest use of available data.
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Amazon’s market conquest is not the only option. The focus should be on human
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resources management and business operations tracking when using CRM methods
with Enterprise’s resource management solutions. The company’s success is defined
by key performance indicators and key outcome areas. Without a doubt, Amazon
is on track for success, but changes in IT and e-commerce necessitate continual
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adjustments to employee KPIs and KRAs (Jenkins, 2011). At this point, the role of MIS
becomes extremely evident, as it is linked to the success of individual contributions
to other employees in this total corporate success. Employees should have access to
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dashboards and sales data for all Amazon product lines so they can see what has been
accomplished (Bryce, 2009).
Resolve the gap between Amazon marketing and sales

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Another area where more action is needed is the link between retailers and
marketing departments, which can be achieved by halting MIS programmes. However,
considering the flaws and difficulties that Amazon meets, it is clear that information
management is still in its infancy, and that it needs to be connected with the existing
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Information System and its infrastructure (Klaus, 2010).
Customer-related experience and solution techniques will also help customer call
centres reduce customer unhappiness. Employees must also be given choices, such
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as ways to examine customer complaints and returned products via ERP packages,
increase active offline customer support, and assist Amazon in forming greater
emotional bonds with its consumers (Ghosh, 2010).
The integration technology and other web-based applications are the most
(c
intriguing aspects of integrating Amazon’s smart agents. Given the rise of both virtual
and non-virtual social media platforms, Amazon will be able to build its business

continually through MIS on Second Life (a virtual social network), which will finally
Notes
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provide Amazon customers a lasting sense of emotion.
Conclusion
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The examination highlights the architecture and processes that support Amazon’s
management information systems. According to the analysis, Amazon’s business
service plan has a lot of room to improve customer relationship management.
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Summary
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●● Management is the act of bringing people together to accomplish their intended
goals and objectives effectively and efficiently by utilising existing resources.
●● Management functions include: Organizing, organizing, hiring staff, leading
or directing and managing an organization (one or more individual groups or
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organizations) or an effort to achieve a goal.
●● Management exists to serve customers. However, if one examines the majority of
management texts for a definition of management the term “customer” is absent
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99.9 percent of the time. This is odd, given that all commercial organisations are
built on the principle of assisting consumers in making a profit.
●● A good manager will always direct his or her organisation toward sales. In other
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words, effective managers are required to keep their businesses on track by
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ensuring that everything is done to satisfy the needs of their consumers.
●● Managing all business and organisational activities is bringing people together to
available resources. Because organisations can be thought of as systems,
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management can also be described as human effort (including design) that

enables the system to produce meaningful outcomes.
●● Managing all business and organisational activities is bringing people together to
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available resources.
●● While new management ideas occur daily in manufacturing, technology, software
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development and public organisations some of the most prominent new ideas
come from the software development industry.
●● The agile and rapid handling styles emphasis duplication and the capacity to
establish continuous work structures that foster growth and innovation without the
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overhead associated with traditional management.

●● Quantitative management is a technique that entails the use of mathematical
modelling to determine the optimal solution to a problem. This can be applied to a
)A
range of workplace difficulties ranging from product development decision-making

to managing staff conflicts.
●● A critical component of quantitative management is the capacity to collect
knowledge about problems and potential solutions in order to construct relevant
(c
useable mathematical models. This may include comments from a few staff
members who may raise difficult-to-discuss solutions difficulties and issues. The

management can associate all of this data with a mathematical model, which can
Notes
e
enhance the data to achieve the finest state of the art.
●● Contingency theory’s concept allows for a flexible approach to leadership.
in
Managers may identify the best method to lead a business and make the
best decisions with the support of that vision. It examines the nature of the
organization’s activities as well as its personnel structure. It does not have any
nl
kind of management system.
●● Individual functions, sub-locations, or business processes are outsourced to a third
party, resulting in results outside of your organisation. A specialist service provider
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will now deliver the services that your organisation was required to provide. These
are typically the second business activity: tasks that must be accomplished so that
the company can concentrate on its core business.
●● Many businesses employ investment techniques to obtain more cheap services
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and to concentrate on their potential. For such steps to be successful, modern
manufacturing and planning principles are required. An example of such a concept
is a timely production plan. Consumables are only manufactured or distributed
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when they are absolutely required. As a result, the corporation can save money on
storage and just pay for materials during manufacturing.
●● The extent of BPO business choices is determined by whether the company
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contracts its activities within or outside of its own country’s boundaries. When a
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contract is exported to a country with political instability, lower labour costs, and/
or tax savings, it is referred to as “offshore outsourcing.” One of these examples
of marine operations is a US corporation that operates a BPO marine retailer in
Singapore.
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●● BPO stands for business process outsourcing, which is when a corporation

outsources its business procedures to a foreign (external) firm. The primary goal
is to cut costs, save time, and concentrate on the most important aspects of the
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organisation. There are two types of BPO: front office and back office. Internal
business concerns such as compensation, purchasing, and billing are covered by
office BPO. Extracurricular activities, such as marketing and customer service, are
the emphasis of the front office BPO.
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●● Knowledge Process Outsourcing provides cost effectiveness, access to the top

personnel, concentration, and the most efficient use of resources (KPO). Let us
take a closer look at KPO. The hardest, highest-performing jobs are outsourced
by a firm to a store in a community information release (KPO). As a result, the
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company’s jobs will be essential jobs.

●● Export outsourcing allows businesses to take use of the most up-to-date
information technology and worldwide capabilities that other service providers
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have. Cost savings are an important motivator for outsourcing. A change in cost
structure is the second most important motivation. After delivery, quality is the
primary determinant of cost. The third and fourth most important factors are more
flexibility and improved service quality.
(c
●● Working with renowned Big Five management firms such as McKinsey, Booze
Allen, Boston Consulting Group (BCG), Price Waterhouse (PWC), and Anderson
consulting is a dream come true for many management graduates and students

in business schools. Indeed, the fact that these consulting firms are frequently
Notes
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granted Day Zero or opening seats on the campus rental calendar demonstrates
that management experts value product image and ideas. This means that it is
critical to understand what these businesses are up to and how they contribute to
in
the community.
●● Management Coordination: Having said that, consultants should not be fired
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lightly. One of the reasons many CEOs (Chief Executive Officers) recruit them in
the first place is because they bring in outsiders’ perspectives and can deal with
the difficulties that businesses face in a meaningful way with young people. Apart
from that, management professionals bring their knowledge and expertise to the
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table when they are in a position to recommend alternative strategies as a result
of their in-depth involvement and wealth of business information and knowledge,
which allows them to spot trends and anticipate future changes.
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●● Management consultants are hired to offer and recommend ideas and methods
for increasing a company’s profitability. Operations, finance, marketing, strategy,
planning, human resources, and the firm’s essence and purpose are just a few
examples. It is not uncommon for management consultants to advise a total
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revamp of a company’s operations, such as reducing the organisation and
removing it from its current emphasis or refocusing on existing initiatives.
●● r
The development of the KPO market is the most interesting development in
this context, in my opinion. This, in my opinion, is a natural outcome of strategic
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consultation. I recall the days in the 1990s when a few well-dressed executives
spent several months interviewing a consumer. We will also offer a well-designed
presentation on strategic solutions to the customer’s current business concerns
after a series of late-night conversations and sessions.
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●● A project management consultant typically analyses the most significant company

data to detect inefficiencies and project styles, preventing difficulties and allowing
for a smooth project execution. Project management coordinators are also
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responsible for creating and implementing emergency plans, reading road maps,
and making occasional recommendations.
●● Employees with low performance are given basic performance counselling by
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their supervisors. Counseling sessions are held in particular when an employee

fails to improve his or her performance despite getting informal notice or guidance.
As a result, official working counselling sessions can be held to explore problem
areas and solutions. This can happen in a variety of situations, including a routine
performance appraisal system, an inspector’s performance appraisal, or a routine
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assessment of critical staff development requirements.
Glossary
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●● Brainstorming: A technique to generate creative ideas for solving problems by

reducing critical and judgement reactions to ideas from group members.
●● Key jobs: Jobs that are characterized by stable tasks and stable job specifications;
also known as benchmark jobs.
(c
●● Management Development: The process of identifying, training and generally

equipping relatively junior Managers with the experience or skill necessary for

senior management, positions with an organization in the future. it is a process

Notes
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that ideally, should be an integral part of a coherent personnel policy going from
initial recruitment to ultimate retirement.
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●● Manpower analysis: An analysis of the employee in an organization that attempts
to identify pattern and trends in their employment. It will examine, for instance, the
distribution of employees by age, sex, skill, job title and length of service. It is the
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stage of systematic manpower planning.
●● Non- executive director: a director of an organization who is not a full-time
employee and who does not have any executive form of authority.
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●● International Administration: refers to the art and sciences of management as
applied to the operations of an international organization especially a public
international organization employing international civil servants.
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●● Cooperative behavior: Team behavior that is manifested in member’s willingness
to share information and help others.
●● Administrative Control:while the administration is supposed to enforcement the
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government polices ad implement its programs for the welfare and development of the
state subjects a need arises to monitor and keep a check on the public administration.
●● Controlling: The management function that measures performance, compares it to
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objectives, implements necessary changes, and monitor’s progress.
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●● Executive: Refers to one of the three basic powers of the state, assumed by parts
of classis political science to engage in implementing the will of the legislature. it
includes a political apex, such as the president in the USA and the cabinet in Great
Britain and India and the civil service subordinated to it.
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●● KPO:Knowledge Process Outsourcing (KPO) is the process of outsourcing

knowledge intensive activities that are data driven and encompass the process of
gathering, managing, analysing and delivering objective insights into businesses.
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●● BPO:Business Process Outsourcing.

●● Outsourcing:Outsourcing is the business practice of hiring a party outside a
company to perform services or create goods that were traditionally performed in-
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house by the company’s own employees and staff.

●● Time budget: the preparation of a detailed timetable of work activities in order to
help improve time management and efficiency.
●● Interview: In essence an interview is a form of conversation, between one
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interviewee and one more interviewer, which is structured to a greater or lesser

extent. It is probably the most widely-used method for the assessment of a
person’s ability. It is also the most subjective method and one which is extremely
)A
difficult for the interviewer to do well.

●● Operation research: A branch of management science that applies mathematics
to a series of techniques, like critical path analysis which an organization may use
in its planning and decision-making. In essence operational research is used to
(c
see whether the efficiency and cost effectiveness of a system can be improved
by developing a scientific model to study that system and including within it the
factors of chance and risk.

●● Individualism: the degree to which a society values personal goal, autonomy and
Notes
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privacy over group loyalty, commitment to group norms, involvement in collective
activities, social cohesiveness an intense socialization, ethical decisions based on
individualism promote individual self- interest as long as it does not harm others.
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●● Career: A sequence of positions occupied by a person during the course of a
lifetime: also known as one’s Objective’s career.
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●● Social influence:A basic concept of social psychology which refers to the effects on
a person of relations with others, whether individuals’ groups, or society in general.
●● Team building: A technique that aims to help work groups by improving the quality
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of their member’s interpersonal relations as well as their skills at solving problems
and accomplishing their task. This is usually done with the aid of an external
consultancy which will diagnose the way the work group functions, helping
members to identify difficulties and suggest improvements.
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●● Upward Communication: sending a message from a position lower in the hierarchy
to a receiver higher in the hierarchy.
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●● Consultant:A person who provides expert advice professionally.
●● Project management:Project management is the use of specific knowledge, skills,
tools and techniques to deliver something of value to people.
●● r
Visual search: In ergonomics, this term refers to the process of scanning display of
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its operations on a television screen.
●● Task: The major element of work that makes up a job. Each task in a job
description is intended to contribute to the overall objectives of the job.
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●● Structural change: deep-seated changes that affect very structure of a society, like
the industrial inventory.
●● Networking linking: people scattered geographically into a single work group by
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electronic means e.g. teleporting.
Check Your Understanding

1. _________________ is the act of bringing people together to accomplish their
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intended goals and objectives effectively and efficiently by utilising existing resources.
a) Structure
b) Decision Making
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c) Management
d) All of the above
2. __________________ are required to keep their businesses on track by ensuring
)A
that everything is done to satisfy the needs of their consumers.

a) Efficient Manager
b) Effective Manager
(c
c) Underperform Manager
d) None of the above

3. A technique that entails the use of mathematical modelling to determine the optimal
Notes
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solution to a problem is called _______________.
a) Quantitative Management
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b) Project Management
c) Structural Management
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d) Qualitative Management
4. Employers can utilise _________________ to develop management techniques,
frameworks, and standards in the workplace.
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a) Business Theory
b) Marketing Theory
c) Structural Theory
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d) Management Theory
5. A ________________ concern can also be considered in a client assignment
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when a project management component is examined separately, in addition to the
aforementioned criteria.
a) Financial Management
b) Business Management r
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c) Human Resource Management
d) Project Management
6. A technique in which tasks and business structures are delegated to a third-party
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vendor is called ______________.

a) Outsourcing
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b) Insourcing
c) External Resourcing
d) None of the Above
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7. Business process outsourcing (BPO) is a method of enlisting third-party providers to

do a variety of ________________ tasks.
a) Finance Related
b) Marketing Related
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c) Business Related
d) Management Related
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8. ____________ stands for business process outsourcing, which is when a corporation

outsources its business procedures to a foreign (external) firm.
a) KPO
b) B2B
(c
c) BPO
d) All of the above
9- __________refers to any commercial activity involving knowledge or knowledge-

Notes
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based processes, such as research, analysis, consultation, etc.
a) BPO
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b) KPO
c) B2C
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d) B2B
10- ____________________ are hired to offer and recommend ideas and methods for
increasing a company’s profitability.
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a) Management Consultant
b) Executive
c) Marketer
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d) Director
11- Project management consultants are valuable assets to any company because they
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help project ______________ discover and correct inefficiencies in processes and
work flow.
a) Venture Capitalist
b) Investors r
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c) Partner
d) Stakeholder
12- Counseling will not be effective unless the sub-department feels secure enough to
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engage in the review process and provide input without ___________________.

a) Consultants
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b) Managers
c) Supervisors
d) Workers
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Exercise
1. Define Management?
2. Explain Qualitative Approach.
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3. Explain System Approach.

4. What is the difference between Qualitative Approach and System Approach?
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5. What is Contingency Approach?

6. Explain the benefit of the Modern Theory of Management.
7. What is outsourcing?
8. Difference between Knowledge Process Outsourcing and Business Process
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Outsourcing.
9. What is Outsourcing Logistic Management?

10. Explain Management Consultancy.

Notes
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11. What types of skill require for Management Consultancy?
12. What is Performance Counseling?
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Learning Activities
1. Name the top 5 companies who work in consultancy Sector for past 20 years.
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2. Prepare a case study on how consultancy firm works actually?
3. How Business Outsourcing help to businesses for minimize risk.
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Check Your Understanding – Answer
1. (c)
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2. (b)
3. (a)
4. (d)
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5. (c)
6. (a)
7. (c) r
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8. (c)
9. (b)
10. (a)
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11. (d)
12. (a)
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Further Readings and Bibliography

1. John R. Schermerhorn: Introduction to Management, Wiley India Pvt. Ltd,
Tenth Edition.
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2. Robbins: Fundamentals of Management, Pearson Education India, Ninth

Edition.
3. David Boddy: Management: An Introduction, Pearson Education India, Seventh
Edition.
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4. Naresh K. Malhotra and Satyabhusan Das: Marketing Research: An Applied

Orientation, Pearson, SeventhEdition.
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5. Raymond F Attner and Warren R Plunkett and Gemmy Allen: Management: An

Approach to Customer Expectations, Cengage, 2012 Edition.
6. Elaine Biech: The New Business of Consulting, Wiley, 2019 edition.
(c

Module - II: The process of Management Consulting

Notes
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●● Entry
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●● Diagnosis
●● Action Planning
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●● Implementation
●● Termination
●● Strategic and Tactical Plans
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●● Subcontracting
●● Income Generating Activities
●● Costing and Pricing an Assignment
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●● Recruitment and Selection
●● Training and Development of Consultants
●●
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Preparing for the Future
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Introduction
Consulting or consultancy services are becoming more important and thought
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provoking every day. The need of consulting is increasing all over the business world.
From the viewpoint of management, consultancy or consulting process can be defined
or explained in such a way that it would help the other spheres of human activities too
like education, health care, engineering, etc. Consulting has nowadays become one of
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the core areas of management studies.
Here, we have tried to give the reader a way to think about how to work with
consultants. In some ways, the framework is standard and even kind of universal.
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Scholars from all over the world have broken the consulting process into seven
stages, and the paper talks about these stages. The main points have been a little bit
summarised, so the discussion is short.
The Consulting Process

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Process consulting is a lot like coaching or facilitation, not telling people how to do
things. All in all, a consultant is not inside the company, so they cannot “lay down the
)A
law.” During process consulting sessions, key team members talk about the problems
that led to the intervention. They ask questions and give information that helps the team
solve its own problems.
Consultants use a mix of coaching and mentoring that is based on their own style
of working and their own history. In a mentoring role, consultants give information, but
(c
coaching is more about asking questions, listening, and paraphrasing in a way that
helps the team members figure out how to solve problems on their own.

An elaborate explanation of consulting process (or consultancy process) divides it

Notes
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into seven phases.
Step 1
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This is the phase of entering the organization. It is the first contact interface
between the client and the consultant. It includes the discussions to start the piece of
consultancy. The client and the consultant are helped to know each other through face-
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to-face meetings. The consultant decides preliminarily that how he/she could help in
problem solving and crisis intervention at this phase.
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Step 2
This is the stage of preliminary diagnosis. The focus of the client should be shifted
towards analyzing the problem and the purpose. Cooperation between the client and
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the consultant blooms at this stage. The consultant has to find out the performance
patterns of the organization and an assessment of the requirements and resources
related to the business transformation should be carried out. Data collection is a
primary task at this stage since it relates to the quality of the prospective solutions. The
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payment of the consultant must be cleared at this stage so that delays and other kinds
of disputes can be avoided.
Step 3 r
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Contracting is the third phase of the consulting process. The contract should be
designed in a lucid legal cum business language. The problem statement, objectives
and aims, list of important players, milestones and declaration of re-negotiation terms
are the essential parts of such a contract.
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Step 4
This is the diagnosis phase. This is the phase when deeper examination of
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the problem has to be carried out. The problem should be fully analyzed, points of
consensus and contrasts should be filtered and addressed, assessment of the mentality
of the client should be done and ample data should be collected through interview
sessions, meetings, etc. The consultant has to work out his or her way rather like a
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detective at this stage. A wide range of diagnostic techniques can be applied once the
client is fully involved in the process.
Step 5
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This is the reporting phase. In this phase, the client must be called on to give
response to the presentation of the problem. Recommendations and data are also
reported. Particularly, the recommendations by the consultant must be scrutinized by
)A
the client at this stage. Also, the subsequent course of action has to be determined and
the questions like how, when and what should be answered the report.
Step 6
At this stage, implementation has to be done. Through implementation the client
(c
and the consultant will examine the feasibility of the proposals put forward by the
consultant. These proposals can be adjusted if necessary. Further, shortcomings in the

planning can be found out and rectified. Possible resistance to the process of change
Notes
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can be evaluated. The run time scenario of the organization should be completely
analyzed to facilitate the implementation of plans and proposals. Also, staff training
programmes are implemented at this stage.
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2.1 The Consulting Process
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The goal of consulting is to assist another organisation, group, team, or person in
transitioning a business from one region to another. Assisting with those adjustments
previously outlined by management or the person concerned is also part of the
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consultation process. As a result, consultation has a substantial impact on regional
transformation (Sturdy, 1997).
The consultation process (or consultation process) is divided into seven categories
in a full description.
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Section 1
This is the point of entry into the company. It is the first time a client and a
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consultant communicate. Discussions to begin a consultation piece are included. The
client and counsellor are assisted in getting to know one another in person. At this point,
the counsellor decides how he or she may help with problem-solving and problem-
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solving (Shapiro et al, 1993).
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Section 2
This is the initial stage of the diagnostic process. The focus of the client should
be switched to the analysis of the problem and its purpose. At this point, the client-
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consultant relationship is flourishing. The consultant should examine the needs and
resources linked to business transformation and identify organisational performance
patterns (Tisak and Smith, 1994). As it relates to the quality of prospective solutions,
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data collection is a crucial duty at this stage. Payment to the mediator should be
cancelled as soon as possible to avoid delays and other forms of problems.
Section 3
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The third stage of the consultation process is the contract. The contract must be
written in the legal entity’s official language. A contract like this should have a problem
statement, goals and objectives, key player lists, classifications, and a declaration of
negotiation conditions. (1987, Handy)
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Section 4
This is the stage of diagnosis. This is the stage at which the problem should be
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thoroughly examined. The problem should be thoroughly investigated, compliance

points should be investigated and resolved, client mind tests should be conducted,
and appropriate data should be gathered during interviews, meetings, and other similar
events (Metzger, 1988). Instead of the investigator, the consultant should change his
technique in this part. Once the customer is completely engaged in the process, a
(c
variety of diagnostic tools can be used.

Section 5
Notes
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This is the stage where you submit your report. At this point, the customer should
be summoned to provide feedback on the problem’s presentation. Recommendations
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and facts are also included in the study. At this point, the customer should pay attention
to the consultant’s recommendations in particular. In addition, the next course should be
determined, as well as questions such as how, when, and how to respond to the report.
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(Grint and Case, 1998; Grint and Case, 1999)
Section 6
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Implementation should be completed at this time. They will analyse the viability of
the consultant’s recommendations through the client and the consultant. If necessary,
these suggestions can be tweaked. Errors in editing can also be spotted and remedied.
It is possible to assess potential resistance to the change process. An organization’s
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operation time should be extensively examined in order to facilitate the implementation
of goals and suggestions (Clark and Fincham, 2002). At this time, staff training
initiatives are also underway.
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Section 7
Consider a possible solution. You will use your synthesis from the previous step to
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improve your client’s recommendations in this final step of the 7-step framework. These
suggestions should be in response to the client’s problem statement and the problem
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statement you made at the start of the project. Furthermore, the recommendations should be
founded on a series of conclusions, each of which should be supported by a set of findings.
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Figure: 7 step consulting process
2.1.1 Entry
When a management consulting firm meets with a client for the first time and
(c
begins client consultation work, the entry phase is referred to as the planning and
preparation phase. As a result, this portion is regarded as the link’s primary interface or

point of contact with the client. This includes discussions about how to start consultation
Notes
e
services, such as what improvements the client company need or wants to achieve
in its organisation, and what management features can help. This step also entails
creating a work plan based on the first problem analysis and signing a management
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consultation agreement.
Face-to-face encounters are scheduled to allow the client and counsellor to
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become acquainted. The counsellor identifies his role in assisting in the resolution of
difficulties and how he will do it for the first two reasons. The subsequent parts will be
heavily influenced by the level of conceptual work accomplished and the type of the
relationship built between the consultant and the client during the agreement, therefore
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this portion serves as a foundation for additional follow-up.
2.1.2 Diagnosis
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This is the initial and most serious stage of an issue that must be addressed. The
main focus at this point is on problem and objective analysis. Both the client and the
consultant collaborate to determine the sort of change required, explain the objective
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of the assignment in detail, and meet the client’s resources, performance, ideas, and
needs. To ensure that the actual difficulties or challenges are resolved and the planned
objectives are attained, judgments are reached based on familiarity with the suggested
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applications. As a result, a few alternative solutions arise during this phase.
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Although facts and diagnoses are given priority, other judgments such as the sort
of data to be collected or not collected, parts of the subject to be thoroughly studied,
facts to be omitted, and so on, forecast the quality and applicability of the solutions to
be presented. To avoid any form of conflict or delay, both clients and managers specify
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payment terms in this area.
2.1.3 Action Planning

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The goal of this stage of the management consultation process is to find and
provide possible solutions to a problem. Working with one or more alternatives,
investigating alternatives, discussing the implementation plan, and presenting client
choice proposals are all part of this process.
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2.1.4 Implementation
This is the fourth phase of the management consultation process, and it entails
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putting the management consultant’s ideas into action in partnership with the customer
company. This section serves as a thorough examination of the plans’ practicality
and validity. If necessary, changes to the proposal can be made. Unexpected issues
or roadblocks may develop. Editing errors can also be recognised and the required
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procedures taken to remedy them. It is feasible to run a test to see whether there is any
resistance to the change process. This phase also includes implementing customer firm
employee training programmes.
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2.1.5 Termination
Windup or Termination are other names for this phase. This is the last stage of
the consultation process, and it entails a variety of tasks. The consultant’s performance
during the appointed assignment, the expert’s approach, the modifications made, and
Notes
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the outcomes gained are all evaluated by both the counsellor and the client. Final
reports are presented, and final interviews are undertaken. This includes the payment
of any associated responsibilities. Future contracts are negotiated and follow-up
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agreements are applied if the business relationship continues. After these activities are
completed, the consulting agreement is terminated in consultation, and the consultant
service is removed from the client organisation.
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Figure: Management consulting process

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Major Functions of Management Consulting Process Firms

1. Providing effective technology: Leading consulting firms and leaders have access
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to cutting-edge technology in critical areas. As a result, when confronted with

crucial events, significant issues, or problems that demand a level of competence to
overcome, businesses associate with consulting firms.
Assume a huge IT firm wants to employ a plan to merge with another similar-sized
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IT company. Both companies have never done a merger like this before and lack
the internal skills to make the combination work. As a result, they hire management
consulting firms to help them with this.
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2. Providing direction or feedback: One of the main functions of management consulting

firms is to provide a third party with a perspective and purpose on important decisions
that the company seeks to make, such as a major investment, merger or acquisition,
outsourcing, or strategic decision, among other things.
3. Providing strategic and organisational advice to the organization’s decision-makers:
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Making decisions between various courses of action—which can include inaction—

is referred to as decision making. While it is true that management is about making

decisions, half of the decisions made by managers in organisations fail. As a result,

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improving your decision-making effectiveness is a key aspect of enhancing your
productivity at work. This chapter will teach you how to make decisions on your own
or with others while avoiding typical mistakes.
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4. Create a better approach for achieving growth while lowering costs: A successful
cost-cutting initiative focuses on closing gaps and eliminating flaws in both the input
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(required resources and costs) and output (product or service) (the quality that
the customer requires). At the same time, such a drive frequently yields a slew of
additional advantages, including more openness and accountability, improved staff
morale, and quicker decision-making. Furthermore, by establishing policies and
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procedures that prevent a recurrence to old, ineffective methods, it establishes the
groundwork for further progress.
These enhancements enable businesses become more adaptable and less subject
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to the effects of adverse economic factors, which investors are well aware of.
5. Make recommendations for problem-solving solutions based on their execution:
Problem solving activities are generally intended to assist a group or team in
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recognising problems and difficulties, brainstorming various solutions, and finally
evaluating the most suitable.
Finding effective answers to complicated challenges is not easy, but by employing
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the appropriate strategies, methodologies, games, and creativity exercises, your
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team may become more efficient in the process.
Bear in mind that not all challenges are the same, and that organisations of varying
sizes, phases of development, and industries require a variety of diverse problem-
solving strategies. Additionally, solutions are likely to vary depending on the team
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attempting to offer them.

6. Improving business operations’ : To run a successful firm, the leadership team and
cross-functional teams must handle numerous operational aspects across multiple
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departments with limited resources. To do this, an organisation must have daily

discipline and a well-coordinated strategy. This includes creating objectives to
achieve, developing the operation’s layout, and employing sound hiring processes
to match abilities to roles successfully.
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According to management consulting firms and directors of company operations, the

majority of struggling enterprises lack a defined and well-designed plan for making
necessary reforms. This involves failing to sustain corporate objectives, mismanaging
workflows, and failing to employ performance measurement systems.
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7. Supply chain development, new IT system implementation: Supply chains have

progressed from their humble beginnings to the sophisticated structures that exist
today. With globalisation, technologies like containerization and barcoding, and the
)A
introduction of artificial intelligence, the capacity to transfer commodities and things

throughout the world on a large scale has increased substantially in the last 30 years.
As a result, many organisations have abandoned the linear supply chain in favour of
a complex web of partners and activities that span time zones, cultures, and political
(c
environments.

2.2 Developing Strategic and Tactical Plans and

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Subcontracting
Merriam-Webster defines a strategy as “a thoughtful strategy or approach to
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achieve a certain goal over time.” As a result, strategic planning aims to achieve
something with a larger scope
It is the art of making business strategies, putting them into action, and measuring
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how well they worked, all in the context of a company’s long-term goals or desires.
Accounting and finance, marketing, and human resources are all parts of a company
that work together to achieve its long-term goals. Strategic planning and strategic
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management are almost the same thing.
Tactical planning entails immediate activities that encompass the strategy’s

key goal. These plans are developed over time and entail significant revisions. Your
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company can utilise one of nine strategic planning models as a starting point.
Subcontracting is the practise of allocating or transferring a portion of a contract’s

obligations and functions to a third-party subcontractor.
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Subcontracting is especially popular in industries with a lot of complicated projects,
like building and information technology. The general project contractor employs
the subcontractors and is completely accountable for the project’s completion and
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adherence to the deadlines and deadlines. This can put subcontractors in jeopardy of
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complying.
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Figure: Sub Contracting
2.2.1 Strategic & Tactical Plans

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Strategic Planning
Strategic planning is the process of developing, implementing, and assessing
specific business strategies in connection to a company’s long-term goals and
objectives. It is a concept that focuses on bringing together diverse divisions within
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a firm to achieve strategic goals (such as accounting and finance, marketing, and
human resources). The terms strategic planning and strategic management are
interchangeable.
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Strategic planning first gained traction in the 1950s and 1960s, and it remained
popular in the business world until the 1980s, when it fell out of favour. However, in the
1990s, there was a resurgence of interest in strategic business planning, and strategic
planning is still significant in modern business.
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The Strategic Planning Process

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The process of strategic planning necessitates a lot of thought and planning on the
part of the company’s top management. Managers may explore a variety of possibilities
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before deciding on an application and how to accomplish it professionally. Finally,
firm management should be able to stabilise a plan that can create positive results
(commonly referred to as strengthening the company’s goal) and can be implemented
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cost-effectively and with a high probability of success, all while avoiding needless
financial risk.
The development and implementation of strategic planning is generally viewed as a
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combination of three key steps:
1. Strategy Development
The organisation will first examine its current situation by performing internal
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and external research before establishing a plan. The goal is to help identify the
organization’s strengths and weaknesses, as well as opportunities and threats (SWOT
Analysis). Executives use the results of the research to determine which programmes
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or markets to focus on or abandon, how to effectively allocate corporate resources, and
whether to take steps like optimising shared or integrated operations.
Business strategies have a long-term impact on the organization’s success. In

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most cases, only senior executives are authorised to supply the resources required for
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their operations.
2. Strategy Implementation
Following the establishment of a plan, the corporation must set precise goals or
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objectives for putting the strategy into action, as well as assign resources to do so. The
success of the start-up period is frequently decided by the leaders’ ability to clearly
articulate the chosen strategy throughout the organisation and persuade all of its
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employees to “buy” into the strategy’s implementation.
Building a robust structure, or framework, to implement the strategy, increasing the

use of relevant resources, and redirecting marketing activities in line with the strategic
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aims and objectives is all part of effective strategic implementation.
3. Evaluation Strategy
Any savvy businessperson understands that today’s success does not guarantee
future success. As a result, it is critical for managers to assess the effectiveness of the
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chosen strategy once it has been implemented.
Reviewing internal and external elements affecting the plan’s implementation,

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evaluating performance, and adopting corrective measures to make the strategy

more effective are the three main purposes of strategic evaluation. For example, a
company may discover that, in order to achieve the needed improvements in customer
connections, it needs to use new customer relationship management (CRM) software
after formulating a customer service development strategy.
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All three stages of strategic planning take place at three different levels
of management: senior management, middle management, and performance

management. To assist the organisation run as a more efficient and effective team,
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it is critical to enhance communication and collaboration between employees and
management at all levels.
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Figure: Strategic Planning
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Tactical Planning
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After a company, team, or person has developed a strategy that represents shared
aims and objectives, clever planning takes place. A strategic plan lays out the steps that
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must be taken in order to attain the strategic plan’s goals.
After you have defined your strategy, you will need to identify the strategies you will
employ to attain your objectives. Here is where the strategic plan comes into play.
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It is used to define the steps that a company or individual must do in order to attain
the goals established. Here are a few things to think about while you plan your strategy:
When do you think you will be able to achieve these objectives?

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Are any tools or resources required to attain these objectives?
What steps should be made to obtain the desired outcome?

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Figure: Tactical Planning

Smart planning is a method of breaking down a long-term strategic plan into

Notes
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smaller, more specific short-term goals. When a company or a group has long-term
goals that go beyond two or three years, they frequently adopt this type of strategy.
A strategic plan has a few critical features, such as defined goals, measures to attain
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those goals, and a deadline. We will look at what strategic planning is, how it is
implemented, the essential features of a strategic plan, and the benefits and drawbacks
of this sort of planning in this post.
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Clever planning is the process of breaking down a strategy into smaller goals and
objectives after a company or team has formulated one. A strategic plan is used to
establish objectives and identify how they will be met through activities and steps. Most
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strategic plans include a list of particular actions or tasks that will be followed to achieve
the strategic plan’s objectives. To ensure that these tasks or processes are completed
in a timely way, they are usually emailed to the right team members or employees.
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When a firm or team needs to respond to an emergency or situation, sensible
planning is often done. A corporation that wishes to win a bid for another company, for
example, should submit a viable proposal that would be successful. This proposal is
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typically written utilising a cunning technique that involves a few simple measures, such
as lowering the offer price, to assist the company in winning a bid in the competition.
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Benefits of Strategic Planning
Many businesses choose to participate rather than pursue more effective
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techniques as a result of business instability. Effective techniques, on the other hand,
sometimes only work for a limited period of time, despite requiring a significant amount
of money and time to implement. Strategic planning aids businesses in preparing for the
future and dealing with difficulties in a long-term manner. Instead of simply reacting to
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problems, they force the organisation to initiate an influence.
The following are some of the most important advantages of strategic planning:
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1. It helps to make better strategies using a logical, systematic approach

This is usually the most significant advantage. According to some study, regardless
of the effectiveness of a specific strategy, the strategic planning process contributes
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significantly to enhancing a company’s overall performance.

2. Improved communication between employers and employees
Communication is critical to a planning strategy’s effectiveness. It is preceded by
involvement and conversation among managers and employees, demonstrating
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their commitment to the organization’s objectives.

Managers and staff can also demonstrate their dedication to the organization’s
aims by using strategic planning. This is because they are aware of the company’s
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operations and motivations. Employees can clearly comprehend the relationship

between their performance, company success, and compensation thanks to strategic
planning, which makes the organization’s goals and objectives more achievable.
As a result, both employees and management are more likely to innovate, which
promotes the company’s continued growth.
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3. It empowers the people who work in the organization

Employees’ sense of accomplishment and contribution to the company’s overall
success is bolstered by increased negotiation and communication at all stages of

Notes
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the process. As a result, it is critical for businesses to split the strategic planning
process by incorporating subordinate managers and employees from all levels
of the firm. The Walt Disney Company, for example, has eliminated its dedicated
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strategic planning department in favour of giving planning positions in each step of
the company’s operations.
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Strategy VS Tactics
Consider the case of a hypothetical corporation that is analysing various methods
in order to develop various parts of its marketing activity.
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1. Sales Rental
Strategy - We want to develop a recurring test method for hiring the right vendors.
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Strategies - We will limit the number of credentials a company requires from
vendors, design interview questions to define those qualifications, and train employers
to conduct interviews using those core principles.
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2. Sales
Strategy - We want to improve marketing and marketing coordination.
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Strategies - We will clearly define the characteristics of SQL so that marketing can
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concentrate its efforts there, encourage cross-departmental collaboration in content
marketing, and conduct back-to-back monitoring after each marketing campaign.
3. Technical Infrastructure
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Strategy - We want to build a sound, professional foundation for our marketing

activities.
Strategies - We will leverage CRM, combine smart chat tools to boost sales
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communications, and provide services to allow our spokespersons to do virtual sales.
Marketing programmes are made up of all of the strategies and strategies

employed by the marketing company, such as the ones described above.
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Figure: Strategy VS Tactics
2.2.2 Subcontracting
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Subcontracting is the practise of allocating or transferring a portion of a contract’s

obligations and functions to a third-party subcontractor.

Subcontracting is especially popular in industries with a lot of complicated projects,

Notes
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adherence to the deadlines and deadlines. This can put subcontractors in jeopardy of
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complying.
In the construction business, for example, when a government agency or firm
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wishes to build or renovate infrastructure, the contractor is usually awarded a contract.
A contractor is a business owner who enters into a contract and agrees to pay the
agreed-upon price. Sometimes the work to be done is in a specialised field, such as
electricity, plumbing, or the most up-to-date facilities, such as power development and
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smart wiring infrastructure, necessitating a contract with a third party. The contractor will
outsource the task to specified contractors in this situation.
A subcontractor is a type of contractor who works in a certain field and might
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be an employee, a contractor, or a seller. While the contractor maintains customer
relationships (e.g., firms or government), the subcontractor works with the contractor
to pay the contract fee by delivering his or her specific skills set. A subcontractor or
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corporation reports to the principle contractor, who is in charge of overseeing the project
from beginning to end.
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Figure: Subcontracting
Subcontracting is when a company hires another person or company to do a job

that usually can not be done in-house. Subcontracting does not mean that a company
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permanently gives away all of its jobs or departments. Instead, the job is done on a
contract-by-contract basis.
Subcontracting is done for a variety of reasons. Subcontracting is advantageous

when the breadth of skills required for a project is too wide for a single contractor to
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manage. Sub-contractor components that are not necessary contractor skills can assist
keep costs down and reduce project risk in these situations. In the event of a crisis, it
may also give some protection.
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In addition, some large government contracts or contracts that have an impact

on local community development may require the lead contractor to hire a specified
number of enterprises with a smaller public contract as part of the contract. Additionally,
an entity may elect to outsource certain mundane but required tasks in order to free up
time and resources for more profitable endeavours.
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Finally, hiring a small contractor or private person rather than an employee saves
money because the primary contractor is not responsible for workers’ compensation
benefits, general car and commercial insurance, health insurance, full-time salaries,
Notes
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or private contractor contractors or subcontractors. Job losses, from a management
standpoint, are variable expenses that occur only when the job is needed, whereas
recruiting full-time staff is a fixed cost that occurs whether the job is available or not.
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This is referred to as operating leverage. If the formation of fixed costs is high, it is high,
and vice versa.
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2.3 Pricing of Consultancy
Small companies managed by a group of individuals to boost household income
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through a variety of livelihoods are known as Income Generating Activities (IGAs).
2.3.1 Income Generating Activities
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The team receives rigorous training in IGAs (“development and management
of small enterprises”) after completing the Group Sustainability Program (VSLA) for
one year. The group can put what they have learnt into practice with a mini IGA in the
second year before obtaining full IGA instruction in the third year. Following the course,
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participants submit proposals to either in small groups or as a full group), and we select
the most sustainable projects to sponsor and promote after thorough consideration.
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When economic considerations are a key cause of food insecurity and food is
readily available in local markets, but money is a major barrier for vulnerable people,
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generating money can help. This unit discusses income-generating initiatives as well as
the concepts and methodology of the ACF food security teams’ field interventions over
the last five years.
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“The goal of IGA (Income Generating Activities) is to create a market, and it can
also be referred to as a small or small business, depending on whether it is run by an
individual or a group. A small or small business should be one of the most important
factors in deciding on IGA. The IGA can be viewed as the first step in the growth of
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a small business. Transitioning from unemployment and a lack of skills to self-

employment and the capacity to manage business operations is tough. The use of
productive energy creates cash that can be used to assist pay for equipment, reduce
financial risks, and increase the adoption of clean energy solutions.
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Figure: Types of IGA (Example)

Recapitulation
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Markets arrive at prices for the assets they trade by arriving at an equilibrium
between buyers and sellers. When the flow of accurate information about the
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fundamentals of the market fails to reach the market participants, the market diverges
from equilibrium and reports inaccurate prices. Only when the information has entered
the market and been absorbed by the participants are equilibrium restored and valid
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prices re-established.
Marketing
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The seller has to first determine which customers will benefit from the lucrative
jobs. Entrepreneurs, artisans, NGOs, farmers, farmers, or the general public could be
among them.
To persuade them to join your marketplace as potential generators, show them how
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they can increase their earnings by becoming consumers. You will have to show how
different types of productive use affect their revenue or energy expenses.
Once you have uncovered potential productivity in your service sector, you can
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try to incorporate it into your business plan. You should work with potential clients to
show them the advantages of electrical installation for current energy-based systems.
The consumer will dictate the method you use, but the following are critical points to
remember: r
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●● How will the increased quality or product value affect the worth of their business?
●● How will this help you earn more money in addition to your current expenses/
services/product?
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Provide Financial and Other Assistance

You should identify selected entrepreneurs and be interested in the revenue
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that will be produced from the new work if you have income-generating activities that
seem relevant to your market but are not yet available. You might want to investigate
beginning a new company endeavour in industries that are near to your knowledge and
experience.
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If productive utilisation is critical to your company’s long-term viability, you may

choose to participate in funding. This function encompasses anything from informing
people about how to obtain money to integrating financial assistance into your business
processes. You may need to indicate federal or foreign funding sources for public
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applications.
You may need to explore prospective sources of support in the relevant sectors for
communities and other productive applications. Agricultural development, handicrafts,
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women’s education, street lights, local clinics, and refugees from natural catastrophes may
all be supported by government or private programmes. Any source of funding for certain
activities that require electricity must be supported with funding for power generation.
2.3.2 Costing and Pricing an Assignment

(c
Cost-based pricing is a way of determining the maximum selling price for a product,
particularly for market-based items, that involves evaluating product costs and adding
a proportion of expected profit. This is a widely used and straightforward method

Notes
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of determining a product’s sale value. Students majoring in accounting, business,
accounting, marketing, and other related fields must understand and implement cost-
based pricing in a variety of corporate settings.
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Experts consider cost-based pricing to be a simple method of determining a
product’s price. There are two types of cost-based pricing:
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Full Cost - This takes into account variable and fixed production costs and adjusts
the% mark to determine the product price.
Exact prices - Here, only variable costs are considered and combined with% coins
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to determine the market price.
Companies employ a cost-based pricing approach to generate a profit on their

profits. Companies achieve their profit-maximizing goal by increasing production output
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until the minimum wage equals the lower cost, and then altering the retail price to
meet the product’s needs. Because a cost-based pricing system is simple to use and
manage, many organisations with simple production systems employ it.
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Example:
Total cost of product = total fixed cost + total variable cost
= $ 300 + $ 100 = $ 400 r

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Interest rate determined by company (Markup) = 25%
Sales price = Total production costs + profit limit
= 400 + 400 (25/100)

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= $ 500
This $ 500 will be the lowest price, indicating the product’s minimum market value.
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A company, on the other hand, can adjust a higher price, known as a price ceiling, in
response to market demand and competition. In a normal business, cost-based pricing
works like this.
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To calculate the market price of a product, the professor will provide you various
costs. You must determine the fixed and variable costs, how much of the prescribed
costs you may charge, what percentage of the costs will be added as profit, and so on.
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Cost Based pricing Example

Advantages and Disadvantages

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Advantages
1. It is a straightforward way to determine costs.
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2. It ensures that all variable costs including direct production costs and continuous
operating costs are calculated.
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3. The process adds profit in a simple way that is easy to maintain and the prices are
consistent.
4. If the sales price is pre-determined, it can calculate the maximum production costs
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that can be allowed and the daily output limit.
5. Determining the sales cost of a customized product is easy this way.
Disadvantages
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1. The pricing process, in the absence of full evidence, may lead to lower prices or
increase prices. Both are not good in a highly competitive market.
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2. The process can sometimes be costly for investment opportunities.
There are five elements that influence a product’s price:
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Nothing in business may produce more ambiguity and doubt than pricing your
products and services. How do you know if your pricing is right? You do not want to pay
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less than you should, and you do not want to sell yourself on the market, so how do you
know?
Here are five things to think about when pricing your products and services,
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whether you are just starting out or starting over.
1. Cost
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First and foremost, you will require financial data. Find out what it costs to run your
business before you set your price. This comprises both your fixed and direct costs
(monthly spending regardless of whether they are sold) (costs incurred in producing
and delivering your products and services).
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2. Customers
Understand what your clients expect from your goods and services. Are they
motivated by the lowest or most inexpensive price? What part does cost play in their
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purchasing decision?
Examine what you are selling as well; are your present clients purchasing high- or
low-quality goods and services? This data can help you figure out whether your price is
)A
reasonable, what degree of service or installation you should provide, and whether you
are targeting the proper market. To make your business more profitable, you may need
to modify your market.
3. Standing
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After you have figured out who your customer is, you will need to consider your
location. What part of the square do you want to be in? Do you want to be the most

expensive, comfy, high-quality brand in your business, or do you want to be the

Notes
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cheapest, 10% off, or somewhere in the middle? Once you have made your decision,
you will start to see what pricing you are eligible for.
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4. Competitors
This is one of the most crucial adventure travel recommendations. What are the
prices for various products and services? What quality of installation and servicing do
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they provide at those prices? With those prices, who do they hope to attract? And how
are they positioned in a market? The answers to these questions will provide you with a
pricing category benchmark.
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5. Profit
“How much profit do I want to make?” is one of the most crucial questions that
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business owners do not bother to ask themselves. In order to be competitive, they tend
to look at what others charge and make up a number out of thin air, without considering
how much profit is demanded and required.
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While you may be in business to provide joy to others and add value to their lives,
you must also add worth to your own. So, think about how you are going to spend your
time.
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2.4 Acquiring and developing talents for consulting
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The main difference is that, because consulting is a knowledge-intensive industry,
human capital is viewed as the most valuable asset.. The industry thrives on its
employees’ intellectual capacity, and as you go up the corporate ladder, your number
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in the organisation grows, as does your purchasing failure and success. The scope of
this type of activity and the amount of energy necessary for it is confined to a small
percentage of the job market.
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2.4.1 Recruitment and Selection

Growth in this market can only be achieved by growing the number of consultants,
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as well as competing consulting companies and other forward-thinking sectors

obtaining this talent. The optimum market for these businesses is a small one, as
it allows them to hire “the best” individuals. And because the people at the top of
the tower are aware of their number and the options available to them, businesses
are forced to improve their offerings. For these folks, there are jobs and special
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opportunities. This guarantees that the hiring department is given a role from the
beginning of the procurement process.
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Recruitment
The Talent Acquisition team must establish a skills model during the hiring process.
Major selection elements should not be overly detailed, but it should meet the above-
mentioned industry standards. This will make the talents required of all staff members
more clear, as well as the differentiating ability that will set excellent players apart from
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the rest.

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Figure: Some major selection elements
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A skills mapping job can help ensure that, and to what extent, a possible employee
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exhibits these skills during recruitment, as well as how well that individual can fit into the
role. To succeed as intermediates, you need people who are connected in some way -
people who can deliver high performance and offer high power. A consultative lifestyle,
which often necessitates the counsellor being out of town four days a week for months
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at a time, is difficult to sustain over time, particularly for persons with families. Some
individuals thrive on the fast pace and adrenaline rush of an active routine.
These are the individuals the consulting firm wishes to attract, as they are the only
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ones capable of living a sustainable and pleasurable existence. Furthermore, it takes a

lot to recruit and maintain this ambitious and much-needed talent in their field. Making
an appealing Personnel Value Proposal that can be adapted to each job is a fantastic
way out. This will necessitate an awareness of the amount of people who possess the
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desired skill set, as well as what they value. For example, in order to attract Gen-Y
mentors, a consulting firm should provide clear opportunities for long-term career
advancement and employ employee engagement techniques such as “recognition
and reward for your individual contribution” and a culture of respect in which high-level
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players are promoted quickly.
While Gen-X consultants may value a strong student network, Gen-Y mentors will
not rely on their employers to enhance their professional networks in today’s fast-paced
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world of communication. Total Rewards Support Total Awards Optimization efficiently

achieves a good balance between company aims and employee ambitions by supplying
quantity information to match rewards and employee aspirations in order to secure the
organization’s planned spending.
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Notes
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Figure: Talent Recruitment
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Selection
Selection is the strategic vision of the general workforce of recruiting and selection
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of workers is referred to as talent management. Talent management, which frequently
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relies on software-based technologies, means that the HR system integrates all aspects
of hiring and retention with the organization’s long-term strategic needs.
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Talent Selection
The customization procedure can be designed to assist you get the finest and
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brightest. They have a number of tools that can be used to forecast whether or not a
candidate will be successful:
1. Personality testing
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2. Psychological and skill tests

3. Biodata testing

4. Knowledge tests
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5. Scheduled interviews
6. Simulation of work
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7. Testing centers
8. Web-based testing
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To validate, people use existing and customised selection tools in a scientific
manner. People conduct considerable job research in order to acquire the required
skills to thrive in the position. After that, they created instruments to properly and
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precisely measure those crucial abilities. Finally, they examine the data to ensure that
the instruments accurately assess performance and organisational equity while being
legally sound.
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2.4.2 Training and developments of consultants
Internships inside a firm that are designed to increase employees’ knowledge and
abilities while also offering information and instructions on how to better do particular
si
duties are referred to as training and development.
Training is a short-term programme geared at operatives and procedures, whereas

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development is a long-term process directed at management.
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Management takes action in the area of training in order to meet the existing
demand for fan work. Individual steps are taken during development to handle the
possibility of a successor position being required in the future.
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Decrease Attrition
Training is one of the most efficient methods of keeping your team updated.
It implies that you care as much about their lives and success as they do about the
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growth of your business. Employees who are well-cared for will never wish to work for
another employer.
It helps you prepare for impending trials.

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Employees can be trained on anticipated and unanticipated industry changes

through training. Maintaining a healthy team creates a favourable impression in times
like ours, when trends are always changing due to the influence of the Internet.
m
Promotes Leadership
The most effective approach of developing future leaders is through coaching the
finest team. Additionally, this will make it easier for people to perform their duties and
)A
avoid drowning and unhappiness.
Growth of the Business

Any business that invests in its employees’ education will thrive and advance.
Employees comprise a sizable portion of a business’s assets, and caring for them
(c
implies caring for the organisation.

Types of Training and development

Notes
e
The types of training programs are -
1. Technical training is a type of training that is intended to teach a new employee the
in
technical aspects of the job.
2. Quality training refers to informing employees of ways to prevent, detect, and
eliminate substandard material, usually in a productive organization.
nl
3. Skill training, which is the third type of training, encompasses the skill needed to
really do the job.
O
4. The fourth type of training is called soft skills training. Soft skills refer to personality
traits, social kindness, communication, and personal habits used to express
relationships with other people.
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5. Professional training is the type of training required for a person to have the latest
knowledge in the personal field.
Benefits of Training and Development
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The benefits of training and development are -
1. Staff training and development increases job satisfaction and discipline among
employees. r
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2. Reduce the number of employees.
3. Increase staff motivation.
4. Increases efficiency in processes, leading to financial gain.
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5. Develop the ability to use new technologies and methods.

6. Promote the development of strategies and products.
U
ity
m
)A
Figure: Hire, Training and Development Consultants

(c
Providing employees with opportunities to grow and develop is critical to your

company’s long-term performance and employee retention. Creating a continuous

learning culture enhances your company’s employee value proposition and boosts
Notes
e
retention by attracting people who want to learn and advance in their careers.
2.4.3 Preparing for the Future
in
Managers are critical in assisting employees in preparing for the future. You must
encourage your personnel to consider not only the present but also the future. Make
nl
your staff understand the importance of thinking for the future.
Arrange for a variety of training programmes and seminars to assist them hone and
improve their talents. You must persuade them that such programmes do more than
O
boost their knowledge; they also prepare them for the future. You are mistaken if you
believe that sending an email to your staff informing them of the training is your role.
Employees enter training sessions out of compulsion and just mark their existence in
such a setting. Check to see if the training programmes are effective and can make a
ty
difference in the workplace. It is the job of management to ensure that employees get
the most out of the knowledge provided by speakers and coaches. The audience would
be bored if the coach’s profile did not contain any surprises. Invite no Tom Dick and
si
Harry to coach your employees.
At least once a week, meet with your team to determine where they are lacking
and where they need to grow. Except for the employee, no one understands all of
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the abilities and knowledge that can assist him or her accomplish better in the future.
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Managers are responsible for keeping track on their employees’ performance. Provide
them with the correct response. Remember that planning for the future does not imply
that the person engaged will stay with the organisation; rather, it ensures that he or she
becomes the company’s property. Furthermore, it is the obligation of all organisations to
ni
ensure the expansion of all people’s activity in the area of equality.
Encourage employees to make reading a habit. Rather than spending the entire
day on Facebook and Twitter, it is always advantageous to subscribe to numerous
U
websites that may provide them with sufficient information about the latest technology
and impending advances or changes in their fields. Employees frequently follow their
leaders’ lead in whatever they do. Be a role model for your coworkers. Request a
monthly presentation from your technical team on which new software and technology
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they believe will make their jobs easier in the near future. You are actually encouraging
people to at least look at the connected websites by doing so; otherwise, they would
never have found the time. The sales staff may be requested to provide a few slides on
proven marketing methods that will triple sales rather than double them.
m
From time to time, give them additional duties. They will learn to deal with
pressures in this manner, which will be beneficial to them in the near future. You must
have faith in them and trust them. Allow them to make errors. They will, hopefully, learn
)A
from their blunders. They should manage the squad if they have been in the system for
around a year. Remember that leading a team and getting people to work together is no
easy task. You will also require a lot of patience.
Encourage them to look at the bright side of things. Managers are responsible
(c
for keeping their staff motivated and ensuring that their personal and professional life
are not jeopardised. Teach them to laugh at themselves and not take themselves too
seriously. As you get older, your duties rise, but if you do not appreciate what you are

doing, you will quickly become frustrated and disillusioned. Employees must be taught
Notes
e
to take the initiative and lead from the front. Making kids self-sufficient may enable them
to do better in the future.
in
Ways one can prepare for the future:
1. It is not a good idea to create own competition.
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It is always necessary to look after new enterprises. If we do not know what the
future holds, we cannot prepare for it.
2. Take a look at the patterns.
O
Recent technical advancements are nothing new - and they will continue to happen
in the future. Stay ahead of the curve in your field by learning from others.
3. Accept automation as a reality.
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Performance intelligence helps firms organise information and direct activities across
the board, from sales and customer service to finance. Because your competitors
already exist, you should use any technology that allows you to achieve new levels
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of performance.
4. Encourage creativity.
r
Learning to think rationally will assist you in creating a culture of continuous invention
in your company. Creating will assist you in overcoming problems, dividing your firm,
ve
and eclipsing your competitors.
5. Create a corporation that is both quick and cooperative.
Making sure you can respond fast to changes is a crucial aspect of future planning.
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Flat and integrated business structures have fewer and faster positions, and fostering
group collaboration assures long-term success.
6. Have a plan for getting out.
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Only 55% of CEOs have an exit strategy, despite the fact that it is a critical component
of your firm. “If you do not have a strategy to go out, you have a lot of work to do,”
Tony says. Create one now to prepare for the future.
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2.5 Case Study

Study & Analysis of Subcontracting Practices in Infrastructure Projects - State of Art
(Ms. Sanjivani Mule, Dr. A.K. Gupta, and A.A. Lakade)
m
There are many small-scale building contractors in India, as there are

abroad. Typically, the businesses are modest, but they do a lot of work together.
When discussing a ‘secret contract,’ the continuation of an undersea contract by
)A
subcontractors with or without the knowledge or approval of the contractor or clients,

the level of subcontracting is much higher. The growth of subcontractors, as well as
the exploitation of subcontractors by craftspeople, are thought to be contributing factors
to industry fragmentation and continued issues with quality, productivity, nonpayment,
and safety. Substandard contracts have been a source of worry for the Construction
(c
Industry Review Committee. Subcontractor success, or lack thereof, has a direct impact
on the industry’s overall performance.

A tiny contract is a double-edged sword at that moment. Subcontractors help their

Notes
e
contractors attain market leadership by delivering specialised construction services and
bearing hefty contractor burdens when they are appropriately managed. Contractors
can regard individual projects as financial assets, each with its own risks and expected
in
returns, when bank loans are cheaper and more accessible. This allows them to
consolidate their project portfolio to discern specific project hazards. As a result, many
large contractors have maintained long-term partnerships with their subcontractors,
nl
ensuring that a portfolio of operations large enough to continue the relationship is
consistently protected.
Market entry and competitive advantage in cost leadership have a causal link
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that is strongly dependent on securing subcontractors. Contractors get a high level of
economy and purchasing power over subcontractors and their suppliers after gaining a
considerable amount of market share.
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More importantly, many jobs provide contractors and their subcontractors with
numerous learning opportunities. Contractors profit from their subcontractors and learn
to manage their supply chains more efficiently as a result of maximising experience.
si
As previously said, small professional contractors are frequently the ones who initiate
technical advancements. Small business owners will undoubtedly benefit from
economic development. Alternatively, the network has been suggested as a potential
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source of architectural renaming. After gaining cost leadership, the contractors were
able to award competitive tenders to gain further market share, completing a good loop
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of market share and cost leadership.
Important information for contractors is frequently naturally wrong during the

process of learning to compete costs, and can only be gathered through long-term
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relationships with subcontractors and their suppliers. According to a successful market

hypothesis, contract-based transactions are unlikely to be a source of competitive profit
since the chances of making better contracts are less likely to last. Instead, it is about
creating and maintaining a unique set of specific firms, as well as fostering trust and
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value-enhancing relationships with suppliers and subcontractors, while the company

establishes and maintains its difficult-to-match competitive advantages. They have
internal services similar to these smaller contractors by adopting contractor tactics,
but they keep them away for the time being to save money. Because of the enormous
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volume of contract work in the construction industry, this network is likely to be crucial,
as it is everywhere. Indeed, the resumption of construction has been delayed by a lack
of long-term ties between enterprises.
As a result, project managers must develop the capacity to capitalise on the

m
advantages and disadvantages of using a subcontractor contract while avoiding

issues. According to prior studies, when businesses grow, economic downturns and
set management issues for subcontractors become more prevalent, necessitating
)A
improved project management. Project managers serve as a conduit between several

stakeholders, each with its own set of competing objectives.’ They must first recognise
and comprehend the risks and potential problems of borrowing subcontractors, which
will be the topic of this study.
(c
We are mostly interested in the building industry. The technical requirements for
building a standard structure are usually less stringent than those for civil engineering.
The construction business in India has a smaller market than civil engineers due to low
technical and financial entrance barriers. There should also be a lot of subcontracting.
Notes
e
Because the fundamental duties demand the capacity to interact with technology, the
more sophisticated the construction, the fewer contracts there will be. As a result,
quality and safety issues were more widespread and important in building than in civil
in
engineering. The remainder of the article will be divided into the following sections: I
Subcontract and Indian debt, (ii) Subcontracting, (iii) Small Firms, (v) Profits, (vi) Future
Approach: Technological Development, and finally (vii) and conclusion.
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Subcontracting is a frequent and well-established technique in the construction
industry. Subcontractors are hired by contractors to help them achieve a variety
of goals, including cost savings, access to specialised expertise, and risk sharing.
O
However, having a contract under a project can lead to a slew of other concerns that
can wreak havoc on construction management and quality. The study focused on ways
to improve the quality of construction affected by subcontracting in Pakistan. It looked
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at subcontracting processes in the construction industry, identified key problem areas,
assessed overall satisfaction with the quality of service provided by subcontractors,
and looked at ways to improve overall satisfaction with the quality of service provided
by subcontractors. A questionnaire survey was done to determine the extent to which
si
construction businesses are involved in obtaining subcontractors, the reasons for
subcontracting, and the subcontractor selection procedure.
r
Interviews with researchers, specialists, and industry professionals were also
undertaken. The findings show that subcontracting and sub-contracting are widely
ve
used in the construction sector, mostly to save time and money. The low level of
work performed by subcontractors is the biggest troublesome area, according to the
findings. Due to the high level of uncertainty, flexibility of construction work, and high
administrative costs, direct work was proven to be a non-profit proposition.
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According to the findings, 53% of respondents are content with their present
subcontracting experience, while 47% want to see positive changes to subcontracting
programmes. The following remedies were identified to address flaws in the existing
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subcontract system: (1) reducing the number of layers or subcontractors to effectively

manage the communication gap between the principal contractor and the contractor;
(2) establishing a subcontractor registration system under obligation, eligibility, and
performance appraisal; (3) accepting the standard form of contract between the
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contractor and the contractor; and (4) developing training infrastructure. In the paper,
there are more details and comments. The results of this study will aid subcontractors
in improving their performance and participants in effectively implementing a quality
project through smart subcontractor hiring.
m
Summary
●● The goal of consulting is to assist another organisation, group, team, or person
)A
in transitioning a business from one region to another. Assisting with those

adjustments previously outlined by management or the person concerned is also
part of the consultation process.
●● Face-to-face encounters are scheduled to allow the client and counsellor to
(c
become acquainted. The counsellor identifies his role in assisting in the resolution
of difficulties and how he will do it for the first two reasons. The subsequent parts
will be heavily influenced by the level of conceptual work accomplished and the

type of the relationship built between the consultant and the client during the
Notes
e
agreement, therefore this portion serves as a foundation for additional follow-up.
●● Diagnosis is the initial and most serious stage of an issue that must be addressed.
in
The main focus at this point is on problem and objective analysis. Both the
client and the consultant collaborate to determine the sort of change required,
explain the objective of the assignment in detail, and meet the client’s resources,
nl
performance, ideas, and needs. To ensure that the actual difficulties or challenges
are resolved and the planned objectives are attained, judgments are reached
based on familiarity with the suggested applications.
O
●● Windup or Termination are other names for this phase. This is the last stage of
the consultation process, and it entails a variety of tasks. The consultant’s
performance during the appointed assignment, the expert’s approach, the
modifications made, and the outcomes gained are all evaluated by both the
ty
counsellor and the client. Final reports are presented, and final interviews are
undertaken.
●● Subcontracting is especially popular in industries with a lot of complicated projects,
si
adherence to the deadlines and deadlines. This can put subcontractors in jeopardy
of complying. r
ve
●● Strategic planning is the process of developing, implementing, and assessing
specific business strategies in connection to a company’s long-term goals and
objectives. It is a concept that focuses on bringing together diverse divisions within
a firm to achieve strategic goals (such as accounting and finance, marketing, and
ni
human resources). The terms strategic planning and strategic management are
interchangeable.
●● The process of strategic planning necessitates a lot of thought and planning on
U
the part of the company’s top management. Managers may explore a variety
of possibilities before deciding on an application and how to accomplish it
professionally. Finally, firm management should be able to stabilise a plan that
can create positive results (commonly referred to as strengthening the company’s
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goal) and can be implemented cost-effectively and with a high probability of

success, all while avoiding needless financial risk.
●● Building a robust structure, or framework, to implement the strategy, increasing
the use of relevant resources, and redirecting marketing activities in line with the
m
strategic aims and objectives is all part of effective strategic implementation.

●● Smart planning is a method of breaking down a long-term strategic plan into smaller,
more specific short-term goals. When a company or a group has long-term goals
)A
that go beyond two or three years, they frequently adopt this type of strategy.
●● A strategic plan has a few critical features, such as defined goals, measures to
attain those goals, and a deadline. We will look at what strategic planning is, how
it is implemented, the essential features of a strategic plan, and the benefits and
(c
drawbacks of this sort of planning in this post.

●● Clever planning is the process of breaking down a strategy into smaller goals and
objectives after a company or team has formulated one. A strategic plan is used to
establish objectives and identify how they will be met through activities and steps.
Notes
e
Most strategic plans include a list of particular actions or tasks that will be followed
to achieve the strategic plan’s objectives.
in
●● Managers and staff can also demonstrate their dedication to the organization’s
aims by using strategic planning. This is because they are aware of the company’s
operations and motivations. Employees can clearly comprehend the relationship
nl
between their performance, company success, and compensation thanks to
strategic planning, which makes the organization’s goals and objectives more
achievable.
O
●● Subcontracting is especially popular in industries with a lot of complicated projects,
adherence to the deadlines and deadlines. This can put subcontractors in jeopardy
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of complying.
●● Cost-based pricing is a way of determining the maximum selling price for a
product, particularly for market-based items, that involves evaluating product
si
costs and adding a proportion of expected profit. This is a widely used and
straightforward method of determining a product’s sale value. Students majoring
in accounting, business, accounting, marketing, and other related fields must
r
understand and implement cost-based pricing in a variety of corporate settings.
ve
●● Growth in this market can only be achieved by growing the number of consultants,
as well as competing consulting companies and other forward-thinking sectors
obtaining this talent. The optimum market for these businesses is a small one, as it
allows them to hire “the best” individuals.
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●● The Talent Acquisition team must establish a skills model during the hiring
process. This model should not be overly detailed, but it should meet the above-
mentioned industry standards. This will make the talents required of all staff
U
members clearer, as well as the differentiating ability that will set excellent players
apart from the rest. A skills mapping job can help ensure that, and to what extent,
a possible employee exhibits these skills during recruitment, as well as how well
that individual can fit into the role.
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●● The strategic vision of the general workforce of recruiting and selection of workers
is referred to as talent management. Talent management, which frequently relies
on software-based technologies, means that the HR system integrates all aspects
of hiring and retention with the organization’s long-term strategic needs.
m
●● Internships inside a firm that are designed to increase employees’ knowledge

and abilities while also offering information and instructions on how to better do
particular duties are referred to as training and development.
)A
●● Training is a short-term programmed geared at operatives and procedures,

whereas development is a long-term process directed at management. The goal of
staff training is to gain extra abilities, and the goal of development is to develop a
comprehensive personality.
(c
●● Encourage your employees to make reading a habit. Rather than spending the
entire day on Facebook and Twitter, it is always advantageous to subscribe to
numerous websites that may provide them with sufficient information about the
latest technology and impending advances or changes in their fields. Employees

Notes
e
frequently follow their leaders’ lead in whatever they do. Be a role model for your
coworkers.
in
Glossary
●● Workplan: A schedule for completing a project or set of tasks for a project. The
workplan is a dominant issue in all Consulting projects.
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●● Case: A consulting project. (Also called a Study or an Engagement.)
●● Actionable: Can be acted upon or can be done. For example: “That
O
recommendation is not actionable because we do not have the managerial talent
to implement it.”
●● Gain traction: Have a client or senior person engaged in an idea. This is an
ty
important concept for selling new Consulting projects, and/or for suggesting an
addition or change to a Consulting workplan.
●● Due dil: Short for due diligence, this is a reference to the work involved in a
thorough research/study of a particular topic. For example: “Have you done the
si
“due dil” on that particular acquisition target?”
●● Adding value: A general phrase that can mean a number of things, but all of them
r
revolve around the idea of being productive in a positive way. Evolved from the
concept of “value added.”
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●● Facetime: Meeting in person or being in the office to promote the impression of
being productive. For example: “I have no work to do but I need to go into the
office on Saturday to put in a little facetime.”
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●● Elevator pitch: The results and key conclusions in roughly a paragraph. Derived
from the idea of being able to convince someone of something important within the
span of a shared ride in an elevator.
U
●● CAGR: Acronym for Compound Annual Growth Rate. For example, if a market
grows from $100 billion to $230 billion over the course of 9 years, the CAGR is
9.70%. This is analogous to Internal Rate of Return in Finance.
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●● Smell Test: Determining whether a result makes sense based on intuition and
experience.
●● B2B:Business to business, referring to a company’s primary audience for sales
and marketing
m
●● B2C:Business to consumer, referring to a company’s primary audience for sales

and marketing
●● Experienced Hire:A consultant hired from another company, typically with a higher
)A
starting position and salary than 1st year consultants. See also “parallel hire”
●● Parallel Hire:A consultant hired from another company, typically with a more
senior position and higher starting salary than 1st year consultants. See also
“experienced hire”
(c
●● QC:Quality control, typically referring to need to check for typos, grammar

mistakes, calculation errors, etc.

●● Assessment: Systematic collection of data, followed by analysis to generate

Notes
e
findings and conclusions. More recently, assessments are often associated with
recommendations. Thus, the terms evaluation and assessment are often used
interchangeably.
in
●● Adoption and Evaluation: Consultant and client decide whether the presenting
priority in the organization has been successfully addressed and whether client’s
nl
organization has adopted necessary new systems. Includes evaluation of quality
of final results from project.
●● Charitable nonprofit: Organization that has attained status from the appropriate
O
government agency to enable it to receive donations, such that donors can deduct
their donations from their tax liabilities.
●● Chief Executive Officer: Singular organizational position responsible to implement
the policies and plans of the Board of Directors, and to lead and manage all other
ty
employees. In nonprofits, commonly referred to as the Executive Director.
●● Client: Person or group who approves, works with, and/or is affected by, the
consultant’s activities in an organization.
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1. When a management consulting firm meets with a client for the first time and begins
r
client consultation work, the ________ phase is referred to as the planning and
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preparation phase.
a) Exit
b) Upcoming
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c) Entry
d) All of the above
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2. _________________ is especially popular in industries with a lot of complicated

projects, like building and information technology.
a) Contracting
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b) Subcontracting
c) Intercontact
d) Interconnecting
3. Strategic planning is the process of developing, implementing, and assessing specific
m
business strategies in connection to a company’s __________ goals and objectives.

a) Long-term
)A
b) Short-term
c) Mid-term
4. The goal is to help identify the organization’s strengths and weaknesses, as well as
(c
opportunities and threats __________ Analysis.

a) MOST

b) PESTLE
Notes
e
c) Mind Mapping
d) SWOT
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5. ________________ is a method of breaking down a long-term strategic plan into
smaller, more specific short-term goals.
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a) Clever Planning
b) Operational Planning
c) Smart Planning
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d) Strategic Planning
6. _______________ is the process of breaking down a strategy into smaller goals and
objectives after a company or team has formulated one.
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a) Tactical Planning
b) Contingency Planning
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c) Structural Planning
d) Clever Planning
7. r
A _____________ is a type of contractor who works in a certain field and might be
an employee, a contractor, or a seller.
ve
a) Subcontractor
b) Contractor
c) Architect
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d) Builder
8. ________________ inside a firm that are designed to increase employees’
U
knowledge and abilities while also offering information and instructions on how to
better do particular duties are referred to as training and development.
a) Internship
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b) Contract Worker
c) Employment
d) Freelancer
m
9. Training is a ____________programme geared at operatives and procedures,

whereas development is a long-term process directed at management.
a) Long-term
)A
b) Mid-term
c) Short-term
d) Quarterly
(c
10. The strategic vision of the general workforce of recruiting and selection of workers is
referred to as _______________.
a) Market Management
b) Business Management
Notes
e
c) Finance Management
d) Talent Management
in
11. ________________ managed by a group of individuals to boost household income
through a variety of livelihoods are known as Income Generating Activities (IGAs).
nl
a) Big Companies
b) Small Company
c) Mid-Size Company
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d) All of the above
12. Reviewing internal and external elements affecting the plan’s implementation,
evaluating performance, and adopting corrective measures to make the strategy
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more effective are the three main purposes of _________________.
a) Hiring Evaluation
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b) PerformanceEvaluation
c) Strategic Evaluation
r
ve
Exercise
1. What is Entry phase in Management Consulting?
2. Define Diagnosis.
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3. What is Action Planning in Consulting?

4. Explain Implementation process in Consulting.
5. What is Termination?
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6. Define Strategic and Tactical Plans

7. What is Subcontracting?
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8. Explain Income Generating Activities.

9. How to Costing and Pricing an Assignment?
10. Explain the process of Recruitment and Selection.
m
11. Describe the process of Training and Development of Consultants.

12. What is Internship?
13. Define SWOT.
)A
Learning Activities
1. How many types of Internships? How can it be helpful for Student?
2. What are the major differences between Volunteering and Internship?
(c
3. How SWOT helpful for Business?

Check Your Understanding – Answers

Notes
e
1. (c)
2. (b)
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3. (a)
4. (d)
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5. (c)
6. (d)
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7. (a)
8. (a)
9. (c)
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10. (d)
11. (b)
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12. (c)

1.
r
Calvert Markham: Mastering Management Consultancy, Legend Business,
2019 Edition.
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2. Ethan Rasiel: The McKinsey Mind, McGraw Hill Education, 2017 Edition.
3. Williams, Christopher:Management Consultancy for Innovation, Routledge,
2019 Edition.
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4. Calvert Markham: The Art of Consultancy, Legend Business, 2019 Edition.

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ity
m
)A
(c

Module - III: In-house Management vs Management

Notes
e
Outsourced
in
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●● Role of Management Consultant
●● Pros and Cons of Being a consultant
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●● How Much Value do Consultants Add to Clients?
●● Consulting Fee Types
●● Value Based Pricing
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●● Consultant-Client Relationship
●● Models of Consulting
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●● Why Do Management Consultants Fail?
●● Challenges facing the Global Consulting Industry
●● Ethical Standards
r
ve
Introduction
Facilities Management (FM) has increasingly become a major topic of discuss in
even in 21st century. According to Ikediashi, Ogunlana and Boateng (2014), FM is said
ni
to be acquiring increasing popularity all over the globe, with several sourcing strategies
springing up for FM services provision. Research has confirmed the fact that facilities
management (FM) as a profession optimizes the delivery of facilities and its related
services through use of high-profile strategies by providing cost effective, high quality
U
and integrated approach to the concept of managing facilities and its related services
Ikediashi and Odesola, (2016).
FM has been seen as multidisciplinary profession that requires specialization; each

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profession is expected to specialize on a particular area as the profession is broad.

However there has been a major problem and need for organizations to focus on core
aspects while issues that bothers on facilities management practices be outsourced
to enable management focus on core organization’s goal and delivery of the needed
m
services in private universities.
The practice over the years has been in-house FM in some private universities,
this has been the major practice in most organizations and has continued, but there
)A
is still need to explore other areas like outsourcing. Both in-house and Outsourcing
comes with their attendant challenges and benefits. It is imperative to look at how both
in-house and outsourcing has fared over the years in Nigeria. However, this study is not
dedicated to determining which is the best or has advantage over another, rather it is
aimed at identifying where both has thrived and how they can improve in their services.
(c
The study aimed at assessing the views of staff of private university on

Outsourcing and In-house institutional facilities maintenance/management and services

in their workplace with a view to exploring their contribution to core business of the
Notes
e
University which teaching, learning and raising sound intellectuals. The Objectives
includes; identification of outsourced and In-house services and facilities in private
universities, and as well assess the views of the staff on the outsourced services as
in
well as in-house services in private universities. The study specifically focuses on staff
perception as well as their ratings of the services either outsourced or in-house in
private universities.
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3.1 Why a Sense of Skepticism and Unease towards
Management Consultants
O
Management consultants assist organisations in resolving problems, creating
value, maximising development, and enhancing overall performance. They apply
their business acumen to provide objective advise and expertise, as well as assist an
ty
organisation in developing any specialised talents it may need.
Merits
si
Expertise in the field
Management consultants have a solid business background and may specialise in

a certain area of consulting. They will train you and your team using their understanding
r
of business theory and industry best practises, boosting your problem-solving skills
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for future projects. Management consultants typically have experience working with a
variety of businesses, giving them insight on how to solve common problems.
Tools with a specific purpose

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Hiring a management consultant provides you with access to a wide range of

tools, resources, and tried-and-true business practises. A management consultant’s
profession include being knowledgeable about software solutions and management
U
approaches that can assist clients. This eliminates the need to purchase costly software
suites on your own if you only require a few functionalities.
Increased productivity
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Your full-time staff can focus on other duties by outsourcing company management
tasks to a consultant. Management consultants also look for ways to automate and
simplify administrative processes that consume company time and resources, allowing
you and your team to concentrate on the core functions of your firm.
m
Evaluation that is objective

It might be difficult to uncover methods to improve procedures while still carrying
)A
them out, even if you have a talented and knowledgeable team. Because they spend
so much time on daily operations and responding to issues as they arise, managers
and business owners may not be able to see patterns in their business processes.
Management consultants provide an unbiased, objective viewpoint on how to improve
your company.
(c

Notes
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in
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O
Summary of disadvantages and benefits of consultant houses:
Advantages:
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1. Strong links to product / service delivery and deep understanding of industry and top
competitors.
si
2. Focused on providing a single client instead of measuring the needs of multiple
clients.
3. It may be less expensive to maintain internal resources, depending on the size and
knowledge of the team. r
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4. Timely and complete access to forecasts, sales data, inventory, etc.
5. Better integration and liaison with other internal departments, including: marketing,
marketing, IT, and finance
ni
Disadvantages:
1. Many of the best professionals are highly competitive people, but internal positions
often do not encourage this competitive spirit.
U
2. There is often a feeling of boredom and a lack of motivation that comes with working
continuously in the same area as opposed to new challenges and opportunities.
3. As part of a small internal group there is often a lack of informal learning opportunities
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that hinder professional growth and the ability to deliver in a rapidly changing
environment.
4. With the help of a single house, you will be forced to have one set of strategies, as
opposed to the best solutions of the type that go out of the way of an integrated team.
m
5. Professionals who are not equally trained or experienced in both organic marketing
and paid search marketing
)A
6. You may be sacrificing yourself by relying on one resource or by investing in a larger

group. It is often difficult to drive organizational change internally.
7. External resources are needed to justify priorities, regulatory change, and budgets
Role of Costs
(c
Everything costs money, which is one of the most basic and unavoidable aspects
of existence. It is aggravating to spend all of your money every week and not be able

to show it. Learning to evaluate prices to value can help you get the most out of your
Notes
e
weekly exams and maximise your financial resources.
in
nl
O
ty
si
Costs are straightforward to comprehend. How much money do you intend
to invest in this? These are costs. On the other side, the expense is a little more
complicated. Value can be discovered in a variety of places. These three critical
r
principles will aid you in developing the ability to determine if an object is more or less
valuable than its face value. Cost, Price and Where You Live
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Luxury Premium
A candy bar or a bottle of Coke costs more at a gas station than it does at a
supermarket. What is the reason for this? For convenience, gas stations and other
ni
establishments charge a premium. Is a candy bar from the garage more expensive than
one from the store? They are made with the same ingredients, almonds, chocolate,
and even the same packaging. The price does not vary, but the costs do. Learn to plan
U
ahead of time and think about how you can get the most bang for your buck.
Differentiate Successful Communication Success

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Both the industry and the practice of helping businesses improve their
performance, notably through the study of existing business difficulties and the
development of development plans, is referred to as management consultation.
Consulting firms and managers have been expanding their influence in the developing
world since the late 1800s. Most firms now employ a large number of management
m
consultants. Market research estimates that the global consultancy market will be
valued more than $300 billion by 2012.
Despite its enormous and ever-increasing profitability, management consulting

)A
receives a lot of criticism. Excessive use of language has been criticised, as has
distrust and the spread of management styles, as well as a failure to develop client-
driven programmes. According to a number of critical publications on management
consultation, the clash between management consulting advice and corporate leaders’
ability to implement a recommended change has major ramifications for current
(c
organisations.

While some detractors may be correct, we feel that management advisers may
Notes
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still be a significant part of a company’s success and advantages if relationships and
expectations are appropriately handled.
in
3.1.1 Role of Management Consultant
Career Management Advisor
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The following job description for a Management Consultant shows the skills,
education, and expertise needed to work as a management consultant at a consulting
firm or in an institution’s or company’s internal strategic activities.
O
Each role is normally held for two years before being promoted to the next level
in a standard consulting business. As an entry-level management consultant, you will
need a set of specific skills, including both technical and soft skills.
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Career Management Advisor:
Management Consulting
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Consulting with management is, in a word, problem solving. Today’s firms face
a slew of issues, many of which stymie efficiency. In light of the changing market
environment and the introduction of new technology, businesses must continue to
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improve. In order to make big changes in their economic lives, businesses frequently
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require assistance. Management advisors apply their expertise to help their clients
make planned changes more efficient.
Job Description of a Management Advisor

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1. Identifying and resolving issues are among the responsibilities of a management

consultant.
2. Obtaining and understanding important data and information.
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3. Management must be informed.

4. Financial and employment data are examined.
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5. Recommend proactive measures to reduce future losses.

6. Providing management with advice and direction.
Professional Degrees:
m
1. Bachelor’s degrees from a tertiary institution

2. Well-developed consultation skills for research, analysis, presentation, and attention
to detail
)A
3. Ability to understand new ideas and produce results effectively

4. Special problem-solving skills - analytical, creative, and creative mind
5. Specialized writing and oral skills
(c
6. Ability to direct and contribute independently to the team

Preferred Degrees
Notes
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1. An MBA from a tertiary institution is required.
2. 2+ years of consulting experience
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3. Improved Microsoft Suite operating system information, especially Excel and
PowerPoint
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4. Well-developed industry expertise in the field of alignment (financial services,
consumer products, human resources, shared services, etc.)
5. Ability to lead teams with sound work ethic, curiosity, and unique customer service
O
Personality and Interpersonal Skills
1. Ability to plan and manage heavy workloads
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2. A competent team player, dedicated to contributing to the desired outcome of the
team
3. High level of emotional intelligence to deal effectively with various clients and groups
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4. Confidence and maturity to work with senior management
Types of Management Supervisors

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Management advisers help with critical strategic formulation, operational efficiency,
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risk counselling, technical deployment, and human resource counselling, among other
things.
ni
U
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m
Major Roles of Management Supervisors

Let us look beyond the definition of the position of a formal management advisor
)A
and examine what consultants do well:
Management managers are responsible for finding answers to the client’s changing
business needs. The breadth of cooperation can range from the creation of a strategic
context to large-scale implementation, process improvement, change management, and
(c
the installation of new technology. Each engagement’s analysis varies, but it normally
includes in-depth data and financial analysis using Microsoft Excel.

White paper development and in-house research on significant changes in

Notes
e
the business sector and the economy in general are important to many consulting
businesses. These articles must include contributions from management advisers.
in
Management professionals are frequently forced to adapt to a certain industry of
their choice as they advance in their careers, eventually becoming “experts” in the field.
They must be informed about industry changes and how they may effect current and
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new clients.
Consultant’s Function
O
The consultant’s main job is to help your company with various aspects of its work
and inclusion. While the counsellor can act as an instructor, catalyst for deeper change,
resource, or facilitator, your organisation retains control of the process. The Authority’s
pardon committee, staff, board members, and director general have more power and
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duty in leading the process of inclusion.
There are typically four types of tasks for which you might want to hire a consultant
or consulting team:
si
1. Overarching Advice:
The consultant collaborates with the organisation to create and implement the
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programme, as well as serving as a meeting or process facilitator. The effectiveness of
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these four concepts determines the value of the advice provided by your consultant.
● Problem-solving
● Diagnosis that works

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● Actions to Recommend
● Putting Changes in Place

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2. Information gathering:
During the data collection step, the consultant designs and collects data. Because
of their neutral position within the firm, management consultants can be especially
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valuable in acquiring quality data through interviews and focus groups, as their
neutrality can lead to more honest replies from internal and external stakeholders.
The ostensibly significant issues on both sides should not be taken personally -
they can be quite beneficial. Furthermore, consultants have an obligation to investigate
m
their clients’ essential needs. They must reply to data demands in a way that allows
them to decode and handle other requirements as part of the engagement’s agenda.
)A
3. Diversity/Cultural Competence Training:

The consultant maintains a variety of / overall training to help stakeholders become
more aware of how an organisation might create an unfavourable environment for
varied cultures and develop a more inclusive culture.
(c
In this situation, you might utilise a single consultant or consulting team for
all meetings, or you could bring in subject specialists for different tutorials to use

Integrative Facilitator. The integration guide assists you throughout the process and
Notes
e
ensures that you have a consistent experience from session to session.
4. Evaluation:
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The consultant develops an evaluation plan to assess the training’s effectiveness
as well as the progress of your entire endeavour.
nl
You may need to match the role you have defined for your consultant after
examining proposals presented in response to your proposal (RFP) and negotiating
with the consultant you choose.
O
Your consultant’s function can be a combination of the above or just one of them,
depending on your organization’s needs and the counsellor you hire. Donors can be
brought in for full-day meetings, multiple appointments, or to assist you with specific
topics. One – and the job a consultant conducts, which varies depending on your
ty
organization’s specific needs and budget.
Management consulting encompasses a wide range of tasks, and numerous
si
businesses and their associates typically set these drives in a unique method. One
method to categorise activities is by the profession’s area of competence (such as
competitive analysis, organisational strategy, operations management or human
resources). However, there are as many differences within these categories as there
are between them in practise. r
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Another way to look at it is as a series of steps - entrance, contracting, diagnostics,
data collection, feedback, execution, and so on. However, unlike most admiring
consultants, these steps are frequently less discrete.
ni
Perhaps a more effective way to assess the process is to review its objectives; the
clarity of the objectives has a significant impact on the engagement’s effectiveness.
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Management Supervisor Verification

Management executives often receive a Bachelor’s or Master’s degree in a
business-related field. While all majors are accepted, business and volume majors such
as Finance, Economics, or Accounting are preferred.
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3.1.2 Pros and Cons of Being a Consultant
Benefits of Being a Consultant

m
a. You can learn many different skills

b. Consultation allows you to build a strong network
)A
c. You get responsible jobs from the start

d. Perfect if you like to travel
e. You learn to work with the latest technology
f. You can work on project teams
(c
g. Consultation allows you to discover many new things

h. You can work with many different clients

Notes
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i. Ongoing training
j. You can work with other motivated people by consulting
in
k. Consultative groups support each other
l. He works on complex projects
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m. Ready for your CV
n. You learn how to deal with stress
O
o. Supervisors can earn very good money
p. Good exit options
q. You can work on many different projects
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r. Consultation has never been boring
Many diverse abilities can be learned. It is one of the most important advantages
of being a mentor to develop a wide range of skills. Because you will be doing a wide
si
range of work, you will want to keep your skills sharp at all times. If you don’t, your
career will suffer and your supervisors will be less than thrilled with you. Because
of this, you must always work to improve your skills and abilities. While this may be
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frustrating, it gives you with an opportunity to strengthen your skills, making you even
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more desirable when you ultimately leave the consultancy and begin looking for a
quality business career.
Consultation allows you to build a strong network

ni
Many people work in consulting because of the strong networks they can establish.
In fact, because most of the individuals you meet there will work for other organisations
after a few years, consulting is perhaps the ideal place to create networks.Your
U
prospects of later landing a decent corporate position will be significantly higher if you
maintain in touch with these people, as contacts are always vital in the job market.
Networks can assist you not just find more career prospects, but they can also keep
you informed about current events and how to respond to certain situations, such as
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financial difficulties.
You get responsible jobs from the start

Another advantage of consulting is that you will be able to find responsible tasks
m
early on in your career.People will rely on you to accomplish your job in most project
teams, and if you do not do it well, the entire project may fail.While getting this kind of
commitment early can be difficult, it can also be incredibly thrilling, and you can learn a
lot from it.
)A
Perfect if you like to travel

Consultation is also beneficial for persons who enjoy travelling because you
will frequently work in cities other than your hometown.When I was working on a
(c
consultation, for example, I would leave on Monday morning and return on Thursday
evening.It depends on each of your characters whether you like it or not.

You learn to work with the latest technology

Notes
e
Learning and working with cutting-edge technology is one of the advantages
of becoming a facilitator.To make money, consulting firms should always sell to their
in
clients.However, they can only do so if you have the skillset that today’s customers
require.As a result, consulting businesses should spend a significant amount of money
to provide their personnel with the most up-to-date technologies.Following that, you
nl
will learn how to use this technology and how to keep up with the current technological
developments.
You can work on project teams
O
Consultation also enables you to work on different project teams.
While working on a project with your project team, everyone usually leaves the
office at the same time.
ty
This means that no one is left behind and that everyone supports each other to
make a particular project a success.
si
Therefore, you will also find a good team spirit among the teams in your project as
you go through the difficult times together.
Consultation allows you to discover many new things.

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Since every project is different, you will see many new things in a short time during
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your consultation process.
In fact, when I worked as a consultant, I often did not know about the field in which
I should work.
ni
While this may be stressful and frustrating, it may push you to the next level as you
learn how to deal with uncertainty and how to manage your time to achieve decent results.
U
So, if you are a curious person who likes to see a lot of new things and adapt to the
unexpected, working as a mentor can be the way to go.
You can work with many different clients

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Being a consultant also gives you the opportunity to work with many different
clients in a short period of time.
In fact, most of my projects take only a few months from start to finish and after
completing one project, you will usually work on different client projects.
m
While this means that you will have to adapt to the environment because you will
have to work with young people continuously, it is very interesting and in my opinion
and you will also learn how to deal with various characters who often have more
)A
experience. rather than what you do in the right field.
Ongoing training.
Hiring consultants is often very expensive in companies and companies are only
(c
willing to pay the daily rates if those consultants have decent and important skills.
Therefore, it is important for consulting firms to train their employees continuously

so that they can meet the high needs of their customers.
However, this is not only beneficial for the consulting company, it may also be
Notes
e
useful to you as you can build important people over time and become valuable to
companies once you have stopped negotiating.
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You can work with other motivated people by consulting.
People who work in consultation are often enthusiastic and wish for hard. work.
nl
Therefore, your partner’s drive will be higher.
Next, when you surround people with inspiration, you are more likely to be
motivated and to develop ambitions.
O
In fact, we are always the average of 10 people closest to us and as you will spend
more time with your colleague at work, you will get used to many of their features over
time.
ty
Therefore, you and your partner can push each other to the next level and if you
work with motivated people who want to stand out from the crowd, there is a good
chance you will really succeed in what you are doing.
si
Consultative groups support each other.
Although consultation may be quite stressful at times, consultative groups often

support one another during those difficult times.
r
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This means that you will not only work on your projects when things get stressful,
you will also support your colleagues if needed.
This also means that you will get support if you happen to be in trouble in your
team.
ni
This public feeling can be very important because it can support you
psychologically and allow you to go through different times.
U
One’s job entails working on challenging assignments. If you work with

consultation, you can work on really important projects that are important to set clients
up for success over time.
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In fact, many companies rely on consulting firms so much that they almost rely on
their own opinions.
However, this also means that if you as a consultant make the wrong decisions,
this can also be very damaging to the company.
m
While this may be a lot of pressure on some people, some like to have this high
level of responsibility and work on those important projects.
Ready for your CV.

)A
Another benefit of consulting is that it can be very valuable to your CV.
In fact, many companies like to hire consultants because these consultants have
seen how the processes work in many different companies and firms that always want
(c
to know how their competitors are doing things.
Therefore, you do not need to worry too much in case you want to quit your
consulting job soon because most companies will be waiting to hire you.
You learn how to deal with stress.

Notes
e
Since you will be working on many different projects and often do not know how to
do the work in the beginning, being a consultant can also be very stressful.
in
While most people may view this as negative, it can also help you to develop your
personality and learn how to cope with stress.
nl
In fact, every one of us has a hard time in life sooner or later and if you learn how
to deal with stress well in advance, you may be able to cope better when life hits you
hard.
O
Supervisors can earn very good money.
Another leg up is the movie and film extras agencies.
The longer you negotiate, the faster your income will grow over the years.
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In fact, in most consulting firms, you can double your income after 5 to 7 years.
So, if you want to make real money through your work and look forward to a better
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life, consultation is certainly a promising way to get there.
Consultation
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While it will usually take you 10+ years to be promoted to management if you
start and continue to work in the business world without consulting, many senior
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professionals can only change with a 3-5 year experience and gain experience, a
similar position can happen in the corporate world.
Therefore, consultation can also greatly speed up your work, at least if you
ni
understand the game and act accordingly.
You can work on many different projects.
When you work in consultation, you will also have the opportunity to work on many
U
different projects in a short period of time.
In fact, most consultants will only stay on one project for a few months and then
move on to the next.
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While this requires a great deal of flexibility on your part, it leads to a situation
where you learn to adapt to different people and situations and this is important for
success, not only in consultation but also in the corporate world.
m
Consultation has never been boring.
If you work as a mentor, you are more likely to never get bored.
In fact, many things go wrong and your mood will change quickly.
)A
However, this also means that your consultation process will never be boring and
you will always be amazed at what happens in the days and weeks to come .
(c

Notes
e
in
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O
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The demerits of being a consultant:
r si
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●● The pressure to negotiate can be high
●● Strong deadlines are a problem
●● You will be pushed to your limits
●● Consultation can mean working long hours
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●● You may be away from home during the week

●● Being a facilitator can be lonely
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●● Some people experience mental health problems

●● There is no real balance of work life
●● Problem if you have children
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●● You must represent the company

●● Many of your colleagues will leave
●● Uncertainty about what’s next
●● Big changes in the workplace
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●● Unsatisfactory results
●● Success depends largely on the project manager
)A
The pressure to negotiate can be high

Despite the many benefits of being a mentor, there are still many problems
associated with this career path.
For example, one important problem in consultation work is that the stress and
(c
related stress can be overwhelming.

Most of the time, you will feel frustrated and you will not know what to do or how to
Notes
e
handle big tasks in a limited time.
Most people are offered a consultative job because of those high levels of stress
in
and are much better at working in a typical business activity.
Strong deadlines are a problem
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For many consultation projects, tight deadlines can be a problem.
In fact, most of the time, projects have to be completed in a timely manner and
close to the deadline, the workload of the coordinators can be significant.
O
So, especially if you are a person who likes to work continuously, but do not like
to work too hard for a few specific days, it is likely that consultation is not the right
approach for your job.
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You will be pushed to your limits
Generally, if you work as a mentor, you will usually be thrown into your boundaries.
si
While this can be a good thing as you will learn a lot, it can also be stressful and
stressful and in difficult situations, stress can lead to all sorts of health problems.
r
Therefore, make sure you have the stomach to deal with your limitations before
deciding on a consultation job.
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Consultation can mean working long hours
Another downside to being a consultant is that you can simply work long hours.
ni
While you will only work 40 hours in a business venture without consulting, 50-60
hours is actually normal if you work in consultation.
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It can be very effective for projects with strong deadlines.

Therefore, consultation is not a 9 to 5 business and you should be ready to work
long hours most days.
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So, if you are a person who likes to have a lot of leisure time, being a mentor will
probably not make you happy in this.
You may be away from home during the week
Consultation also means traveling a lot.

m
While some people enjoy going to different cities or even countries for their
consultation programs, others are really upset over time.
)A
For me, it was really fun to go to different places first.
In time, however, I became disillusioned and wished I had stayed in my hometown

for a week instead.
Therefore, if you are a person who needs a familiar environment and does not want
(c
to spend time away from home, consultation may be a problem for you.

Being a facilitator can be lonely

Notes
e
Although you will have plenty of work to do during the day, being a communicator
may be lonely, especially in the evenings.
in
Most of the time, you will stay in a hotel away from your city and you will not have
too much company.
nl
Yes, you can meet a colleague or other people you know over time.
However, it will not be the same as spending time with friends you have known for
years.
O
Therefore, there is a lot of anonymity and loneliness associated with working as a
consultant and you should make sure that you can deal with these feelings so that you
are not disappointed later.
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Some people have mental health problems
Another disadvantage of being a counselor is that people who are sensitive often
si
experience mental health problems such as fatigue or depression.
Ongoing stress and overwork is simply beyond the reach of most people and if you
do not have a strong character and knowledge of how to deal with those problems, you
are more likely to get sick sooner or later. r
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There is no real balance of work life
Even though consulting firms often claim to offer a decent balance of working life to
their employees, the opposite is often the case.
ni
In fact, there is no real equality of work life in consultation.

Either you are willing to work and work long hours or you will be advised to leave
U
the company soon.
This is just a game type.

If you are working on projects with a solid timeline, there is not too much space
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for work life balance as the project would not be completed on time if everyone left the
office at 5 p.m.
Problem if you have children

m
Especially if you have children, being a liaison can be very challenging.
Since you will usually have to travel, you will not see your children often during the
week and you should rely on your partner to do all the work related to having children.
)A
Over time, this can greatly damage your family life as your children will miss you
and your partner will be upset and disappointed.
In fact, cheating and divorce are very common among professionals and you
(c
should make sure you are willing to risk your family life with your job before deciding to
work in consultation.

You must represent the company

Notes
e
Many consulting companies are really committed to protecting their image.
In fact, you should follow a certain dress code while working in a client’s office.
in
This can be very frustrating, especially if you do not feel comfortable wearing a suit.
Therefore, if you choose to dress sloppily and carelessly by representing your
nl
company in a dignified manner, consultation may not be the right thing to do for you.
Many of your colleagues will leave
O
Although you usually have a good time with colleagues from your project teams,
these co-workers will be leaving soon.
In fact, many people left the negotiations within the first three years.
ty
This also means that you will lose a lot of good friendships and you will have to
adjust to a constantly changing environment.
si
Especially for people who do not like change and who need the same people
around them, this can be very challenging and if you are one of those people who do
not like change, consultation will not be yours at all.
Uncertainty about what’s next

r
ve
The world of consultation is also characterized by a significant degree of insecurity.
In fact, you never know what’s going to happen in the next few days or weeks.
I have had occasions when I was told to fly to another city for two days without
ni
knowing the work and the people I would be working with.
Generally, if you work as a consultant, you will always face a high level of insecurity
U
and if you do not have the mental capacity to deal with this, insecurity can really eat you
down over time.
Big changes in the workplace

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Consultation is also quite different from task 9 to 5.
Although you will have days when you almost do nothing, you will have times when
you will sink into the work.
m
This can be very frustrating, especially if you have an appointment with your friends
in the evening and you have to cancel them automatically as you have to complete a
presentation or other consultation.
)A
Therefore, being a consultant means managing those big changes at work and you
need to develop a high level of patience and accept the long working hours that may go
along with it.
Unsatisfactory results
(c
Some experts are also not happy about the results of the project.
In fact, in most cases, professionals will not even see the final results of their work
as they will be moving soon and will have to work on new projects.
Notes
e
Therefore, the long-term consequences of their work are often vague and may not
be completely satisfying to see the real fruits of your labor.
in
Success depends largely on the project manager
In my experience, the success of a consultative project depends largely on the
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appropriate project manager.
While you can have an easy life if you have a good project manager leading your
team, the opposite may be true if you have a manager who is self-organized and lacks
O
leadership qualities.
As a result, it can be very frustrating when you work for a project manager who is
unable to organize himself as the project will fail as a result in most cases.
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3.2 Cost vs. Value of Advice
Cost means a sum of money that must be paid or spent in order to purchase or
si
gain something can change. It may depend on the amount of material used or the time it
takes to complete the task. Costs can go up or down - and while rising costs may affect
the price, lowering costs (but maintaining or raising prices) should be the goal of any
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experienced entrepreneur. In other words, you should never make a purchase at a cost.
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The price you set is based on cost and estimated value. Price is what a customer
believes a service or product is worth. For example, a hairdresser can charge $ 125 for
a haircut and color. That number is based on the rent paid for the hairdresser and the
cost of equipment and chemicals. Ideally, it does not cost a stylist anywhere near $ 125
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per hour to run his business, but if a customer leaves his studio feeling like a million
dollars, that’s a good value.
Steve Jobs once said that design was more than just the way it looks - it’s the way
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it works. Despite that, Apple is still able to design and optimize its products so that their
dedicated customers can feel comfortable using it based on brand reputation alone.
When you use an iPad, you feel productive, slim, like a member of the Apple nation —
and that deserves something for most people.\
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m
)A
(c
So how do you evaluate and communicate your business value?

The first step is to decide what your customers really want when they buy your
product or book your services. For example, a customer who needs a weekly grass
service may not really care if the grass is being cut — he just wants his lawn to look
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better than its neighbors’ lawn. A parent who orders a custom cake for his child’s
birthday not only wants delicious food, but also wants to surprise and delight his child.
Think of the emotions that cause you to act — what emotions motivate your products?
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What is the real motive for your customer’s purchase?
What, then, is the value of such experiences?
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Understanding your customer’s deepest needs and solving their major problems is
definitely a challenge for any entrepreneur. But how do you get this? Talk to all potential
customers. Participate in surveys, send emails, get on the phone, go out for coffee
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— any opportunity you have to chat with your customers is an opportunity to better
understand the value you can offer.
Price between cost and value gives you the opportunity to sell your goods for
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what they need — what is most important to you. This is the only sustainable business
strategy in today’s market.
So how do you connect with value?
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A good website, a carefully crafted copy, and well-designed marketing materials,
including packaging, give your customers the feeling that you are providing valuable
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services. But the best way to communicate value is to share the stories of other
customers who already have it.
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Evidence, reviews and customer issues convey the information provided to your
product better than any call to action. For example, GrooveHQ shared that positive
feedback on their homepage is responsible for increasing conversions on their site by
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15%. Full proof should give the prospective customer a certain understanding of the
experience and the feeling that your products and services are offered. In other words,
they convey the value of your product, in a language that the customer can use himself.
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Products come and go, costs go up and down, markets grow and evaporate.
But if you can provide an essential service or product, get into the real needs of your
customer and desires, and learn how to connect and build on that value, you can
establish a solid business that makes the types of profits that you deserve.
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In a commercial activity, a product or service is exchanged for a price, between

the buyer and the seller. Therefore, we can say that the price is the price to be paid,
in order to get a product or service. There are many people who believe that the price,
cost and value of a product or service is one thing, but there is no such thing.
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Expenses are basically the total amount of material used in the production of goods
or the delivery of services. In contrast, the value of a product or service is the use or
value of an individual product or service.
)A
In the market, you can find a range of products, which are offered for sale by
different advertisers, varying in size, shape, quality, performance, type, etc. You may
have noticed that at the time of purchase, the first thing we usually do is check a
product or service - what is its value? And we’re trying to estimate - how much does it
(c
cost? But before you decide to buy one, everything is important to the person - what is
its value?

In this piece of writing, you will know the difference between price, cost and price.
Notes
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Contents: Price vs Cost vs Price
●● Comparison chart
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●● Definition
●● Significant Differences
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●● Examples
Price Description:
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Price is the consideration offered as a return for a good profit or service. In a
commercial transaction, the amount means the amount that the seller charges to the
buyer, in exchange for any product or service, including costs and profits. It is a quality
return, usually expressed in price, in the market place.Price
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It should be noted that it is called by different names when used in different
contexts, that is, when a commercial matter is good it is called ‘value’, but if the title is
‘service’, it may be called ‘price’. known as:
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Cost Description
Expenses can be defined as the amount spent on the assets included, such as
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land, labor, money, machinery, equipment, etc. for the purpose of producing a product
or providing services. It can be anything that adds to the cost of a product or service
produced or provided by a company.
)A
In simple terms, cost means the financial value of a donation, in order to acquire
goods or services. For present or future benefits. The basic elements of cost are:
Property, Function and Excess.post
When setting a price, it is necessary to identify and calculate all costs, as they
(c
affect the profitability of the business to a large extent. In addition, costs are divided by
fixed costs and variable costs:

Fixed Costs: Costs, which remain the same regardless of the number of units
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produced, are called fixed costs. For example, hiring, downgrading, insurance, web
hosting etc.
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Flexible Costs: The type of cost, which varies in the number of units produced is
called the variable cost. For example immature goods, personnel, shipping costs, etc.
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Value Description
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Price can be defined as the benefit a customer receives from a product or service.
In plain terms, value is what a customer deems worth a product or service.value-
example
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Price is determined by market position on the basis of profits derived from
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a combination of factors, or specifications, that exist in a particular product. The
combination of features includes material or functional features, product reliability, user
interaction, appearance, customer support and technical assistance, etc.
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Value Features
It cannot be measured by nature, because the value of a product is different for
different people.
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To illustrate: For someone with hypermetropia, eyeglasses are very important, but if
a person can see clearly, then the number of glasses may be zero. Therefore, with this
example, we can conclude that the price depends on the need and use of the person,
over a period of time.
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The price varies over time

Example: When a student is studying for an exam, his or her book is worth a lot
more than it is worth when the student has passed the exam.
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The value of a product or service depends largely on the product supply and
demand among consumers.
)A
To illustrate: Suppose that there is a supermarket in the marketplace. It has

hundreds of buyers, which clearly explains its need. As supply is limited, and demand is
high, value can be high.
It varies from place to place

(c
Example: The number of fur coats will be higher in colder climates, compared to
the desert area.

Significant Differences Between Price, Cost and Price

Notes
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To understand the difference between the price, the cost, and the price, consider
the following:
in
Price refers to the financial compensation for the provision or use of a product or
service. Cost refers to the amount of costs incurred for a particular product to produce
or perform any function. In contrast, Value refers to the usefulness and desirableness of
nl
a product or service to a customer.
Price is what a company calls for goods or services from its customers; The cost
is what the company pays to get the goods and services that will be produced, and the
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cost is what the goods or services are paid for by the customers.
Although the price of a product is determined by the customer or advertiser’s

opinion, the cost is determined by the manufacturer’s opinion. However, the price can
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be determined from the buyer’s point of view, because, you are the final user of the
product or service, who will actually use the product.
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Figure: Price and cost can both be measured in monetary terms

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The above figure illustrates the price and cost and how it can both be measured in
monetary terms.
However, the value cannot be measured in monetary terms

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Price is determined by pricing policy and company strategy. In contrast, Costs are
assessed on the basis of actual costs incurred in producing a particular product, but the
estimated value is based on the customer’s perception of the product or service.
)A
Market fluctuations due to demand and supply strength or competitive strength

or prices of related items often affect product price. Similarly, there are many factors
that lead to the ups and downs of cost components, namely assets, employment and
transactions, which may include economic transformation, government disruption,
technological changes, and so on. However, the value of a product or consumer service
(c
is not affected by market fluctuations.

Examples
Notes
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Example 1: Price Versus Cost versus Price
in
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Cost-vs-price-and-value-example
Suppose a person goes to the store to buy medicine and pays Rs. 1000, hence the
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price. In addition, the amount the seller, or manufacturer has spent on the production of
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the drug, its costs, which may include labor costs, materials, transportation, research
and development, office costs etc. Costs are usually lower compared to the price tag.
which is sold on it.
Now, the medicine that the consumer buys is very important to him, as he will cure
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his loved ones. The benefit of the drug at that time is nothing but ‘value’.
Example 2 (a): Price Compared to Cost

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price-cost-value-example-1 If you purchase a brand-new car, the price you pay the
dealer represents the acquisition value of the vehicle, whereas the value spent in its
production represents the vehicle’s cost. Generally, the price of any goods or services
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exceeds its cost because the price includes profit.
Example 2 (b): Cost Compared to Cost

Cost-cost-value-example2 If you are a watchmaker and make a million watches a
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day, production costs are your first concern, not the price of the watch. To get a better
deal, you could try to make a lot of things at a low price. Because the customer is
looking at it from their point of view, the purpose of buying a watch must be met, which
makes the watch worth what it is.
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(c

Notes
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Example 2 (c): Value vs Price Price-cost-vs-value-example-3 This can be easily
explained by the famous example given to Prof Adam Smith regarding water and
diamonds. Water is essential to life and still has a low cost, and diamonds are used for
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decoration and no one dies if they do not get it, it is still very expensive.
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The reason for this is that its value, as the amount of water is plentiful to us, is
available in abundance, which is why anyone can get it at a lower price, while the value
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of diamonds is less for us, but still, it is a sign of status. Therefore, it has a very high
value.
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Conclusion
Therefore, we have come to realize that by increasing the market share or creating
a competitive edge, a company can increase the perceived benefits, i.e. the value
derived from the product or reduce the estimated cost. Therefore, both will affect the
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price.
From a customer’s point of view, they have set conditions, of how much they can or
are willing to spend on a particular product, to meet their needs. Obviously, they would
like to pay less.
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3.2.1 How Much Value do Consultants Add to Clients?

)A
Consultants substantiate this with qualitative change, such as an optimization of

the distribution chain. One follows the other. This enables them to persuade the client
about the value they have added to the firm.
However, we rarely debate how effective consultants are at adding value. While
this is the cause for their existence, there are other popular myths. Some of you may
(c
have heard that management consultancies provide solutions that organisations

previously knew existed. The consultation merely provides them with peace of mind. Or

the CEO may only require consulting to bolster their proposal. Certain businesses even
Notes
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call in consultants by default when they encounter a problem.
To earn your clients’ trust and affection, you must establish strong bonds between
in
your brand and your target audience. This may be possible if the former provides
not only high-quality services and useful goods, but also ethics, a sense of trust and
trustworthiness, and, of course, happy feelings that make communicating with your
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brand joyful and rewarding. Thus, what strategies may a firm employ to provide value to
its clients via email?
According to Price Intelligently, retaining existing consumers is two times more
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efficient than acquiring new ones. At the same time, just 18% of businesses prioritise
keeping strong relationships with their existing clients in their marketing efforts.
3.2.2 Consulting Fee Types
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Hourly Charging for Overseers:
The most common charge per hour.
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Most professionals spend an hour, and this is exactly where many new
professionals start. That is the situation in which we find ourselves today.
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What’s so good about hourly payments?
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Easy. It is very easy to find out how much you want to make and what you have to
pay per hour.
Depending on how many days you work - and so on.

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This helps you come up with an hourly payment that makes sense to you.
However, there are many problems with hourly payments.

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First, there is no better way to work with a client for an hourly fee.
Because your interests are not in line with the client’s situation, they will not want
to bring you up and have very new ideas with you or ask you to do something that
can benefit the project because they know it always. they ask you, you will be charging
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them too much.
If you can create within 10 hours a $ 1 million client result, you may find that
there are many situations where you can charge $ 10,000 or $ 50,000 for a very short
number of hours.
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The clock always marks you as a consultant. You should always think about
tracking your time.
)A
You may find yourself wanting to slow down the project a little or take your time a
little bit because the longer it takes, the more you do.
There is no good agreement between you and the client.
Another major problem is that there is a roof.

(c
You can only do so much.

You can’t create more time in the day and the only way to do more is work, create
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more hours, make more money - and that creates more work for you.
With each hour’s billing, I do not create as much freedom and flexibility - which is
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what most counselors want.
Daily Rates Consultation:
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The following is the daily value.
Most consultants and many consulting companies use a daily rate.
Good, and that is easy because the daily rate is just your average hour multiplied
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by the number of hours per day.
Some brokers may use a daily rate of $ 1,000, $ 1,500, $ 2,000, $ 3,000, and any
number. As you gain more knowledge and expertise, you can bring with it more volume
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and more results.
The problem with daily value is the same as the hourly problem. You can only get
more by working more days, so you work more hours, you work more days, but also,
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more means more hours. There is a real roof for growth.
The only way to deal with this is to start working and bring in other coordinators,
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and then pay a certain amount daily and take the limit between what you pay and what
the client pays you.
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Doing so obviously requires additional resources. You have to start treating other
people, and if you do not want to do that, then the daily standard is not good at all.
Most consultants will use a daily rate because that is what buyers of consulting
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services know.
It does not mean that just because many people do this does not mean it is the
best way to pay.
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Consulting Retainers:
Another model is retainers.

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ROI-Based Funds for Viewers:
The slightest difference to this is what I call revenue-based ROI.
These are still projects where you go in and take a client through a particular phase
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or project phase or do a complete project.
Whether large or small, ROI-based payments are based on ROI and the amount
you give that client on that project.
)A
Your compensation depends not only on how many hours you spend working on
that project, but also on how you can spend 10 hours and create the result someone
else can give (but it takes more hours), you can get the same level of compensation in
a much shorter time.
(c
It is of great benefit not only to you but also to the client because they are
beginning to feel the effect and the effect. They get the result in a very short time.

So a ROI-based approach, the good thing is that you have a lot more. If you can
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create within 10 hours a $ 1 million client result, you may find that there are many
situations where you can charge $ 10,000 or $ 50,000 for a very short number of hours.
in
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si
If you could figure out what the hourly rate really might be, almost no one else
would want to pay the organization.
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We do not feel comfortable paying thousands of dollars an hour, but if you do it
based on ROI and value, you can achieve that because you get the client focused on
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the actual outcome and the amount of ROI they will see - making it a good investment
for them and an easy decision.
So positive is leverage. The positive is the highest value.

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The downside is that some people find it difficult.
It is only difficult if you do not know how to approach it. If you know how to ask the
right questions in a conversation, if you know what to look for, if you know how to plan
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your finances in a way that is consistent with ROI and supports value, it is not difficult.
How To Pay By ROI Based on Your Consultation Projects:

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You need to know how to do it right, so you can look for the right resources - or add
to Consulting Success.
We have many resources that talk about how to organize your payments based on
ROI and value.
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This is the job we are looking for most closely with our clients and our training
programs.
There are many resources we have on the site that can lead you in this direction.
)A
There is no better way.
Using an end-to-end model has some advantages in some cases, but it is not a
privilege.
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3.2.3 Value Based Pricing

What Is a Price-Based Price?

Price based on price is the price of goods or services that adjust the price based
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on its estimated value rather than its historical value. A value-based pricing strategy is
used to increase revenue by raising prices without significant impact on volume.
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Value Based Values
Summary
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Price based on price is the price of goods or services that adjust the price based on
the estimated value rather than its historical value.
The strategy is used when the purchase decision is emotionally driven or when a
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deficit is found.
The price of a commodity will depend on the value of the item rather than the cost
and cost by increasing the estimated value of the good or service.
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When to Use a Price-Based Price
Price-based price is used when the estimated product value is high. The strategy
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usually includes products that have a certain level of popularity in the patent or are
completely different.
Designer asset companies are best known for using price-based products. While a
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designer shirt may cost more than a non-designer shirt to produce, the status held by the
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product designer increases the perceived value of the shirt. Many companies make a profit
from this idea, increasing their margins significantly, while minimizing their sales volume.
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The same strategy can also be used when the purchase decision is emotionally
driven. For example, although a famous painting may be sold for millions of dollars at
auction, the cost of creating that painting is insignificant compared with the sale price.
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Price and price are derived from the dignity of the artist, as well as other emotional
factors that the consumer may contact.
Price-based prices are also often used when shortages are involved. For example,
)A
at a concert, bottled water may be sold for as little as $ 6. However, you can buy
the same bottle on the vending machine outside the concert venue for only $ 1. The
difference in prices is reflected in the lack of water at the concert, as well as the need
for concert attendees to drink water.
(c
Cost-Plus Price is compared to Value-based Price

To better understand the price based on price, you need to understand how it
differs from the cow and the cost. For prices that include costs, the seller simply takes
the cost of a good production or service and adds a premium. In this sense, the main
Notes
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price decision in the pricing plan is the cost of producing the item. In price-based
strategies, prices are always equal to or higher than pricing strategies.
in
The diagram above shows that the price and cost strategy adds a certain marker,
making the price of an item dependent on its cost. A price-based strategy is used for
items that reflect a perceived value level greater than cost.
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Values with value-based values
A price-based approach may not always be the company’s best pricing strategy,
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and implementing it may come with a few hurdles. It can be very difficult to evaluate
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the estimated value of a product or service. For costs and costs or prices based on the
competition, the price can be easily determined by measuring the cost or pricing of the
competitor. The price-based strategy involves speculation and is naturally high.
Establishment of a Price-Based Strategy

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How a product is marketed and perceived by consumers is crucial to a value-based

pricing system. Since the price level will be higher than the cost-integration strategy,
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the projected price should be strong. This could result in operating costs being higher
in price, as more research should be done to reach a price decision. Also, separating
products from similar competing products may require significant investment.
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For example
Imagine that someone works for a film company and is offered a job offering sales
for Spiderman’s upcoming film sales. The manufacturing company has rights over the
Spiderman branded products, which means you will not have to compete with other
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companies for the price. Additionally, new Spiderman stars Tobey Maguire, a fan favorite.
For sale will be the appropriate candidate for a price-based strategy. First of all,
since other companies may not be able to officially produce what is being sold, you will
)A
not need to worry about lowering prices to stay competitive. Additionally, the fact that
Tobey Maguire starred in the film means that fans are willing to pay more for the same
thing. Therefore, the estimated value of the product grows.
Price-based pricing is a strategy of setting prices primarily based on the estimated

(c
consumer price of a product or service. Value price is a customer-focused price, which

means that companies base their prices on what the customer believes the product is
worth.

The price-based price differs from the “cost and cost” price, which includes
Notes
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production costs in the price calculation. Companies that offer unique or more valuable
features or services are better able to use a price model than companies that primarily
sell commodities.
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Great News
Price-based pricing is a pricing strategy primarily based on the consumer’s
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estimated price of the product or service in question.
Value price is a customer-focused price, which means that companies base their
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prices on what the customer believes the product is worth.
Companies that provide unique and valuable products and features are in a better
position to use a price model than companies that sell primarily products.
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Understanding Value Based Values
Price-based pricing policy is most effective in markets where owning an item
enhances the customer’s image itself or helps the unparalleled sense of life. To achieve
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that, this estimated value reflects the value of what the consumers are willing to offer,
and as a result directly affects the amount the consumer pays in the end.
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Although price is an accurate science, price can be determined by marketing
strategies. For example, luxury car manufacturers are soliciting customer feedback,
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which successfully evaluates the estimated number of customers their experience
driving a particular car model. As a result, retailers can use a value-based pricing
method to determine the price of a car, going forward.
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Value-Based Price Indicators Needed

Any company that makes pricing must have a product or service that separates it
from the competition. The product should be customer-focused, which means that any
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improvements and additional features should be based on customer requirements and

requirements. Of course, the product or service must be of the highest quality if the
company’s management wants to have an additional pricing strategy.
)A
The company must also have open communication channels and strong
relationships with its customers. By doing so, companies can get feedback from their
customers about the features they want and how much they are willing to pay.
In order for companies to create an effective value-based pricing strategy, they

(c
must invest valuable time with their customers to determine what they want.

Value-Based Market Examples

Notes
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The fashion industry is one of the main influences on prices, where pricing is a
common practice. Often, well-known brand name designers place high prices based on
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consumer perceptions of how a product affects their image. Also, if a designer could not
persuade an A-list celebrity to wear his or her look at a red carpet event, the estimated
value of the related product could skyrocket. On the other hand, if a product’s image is
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declining for any reason, the pricing strategy is often in line with the cost-based pricing
policy.
Other industries under price-based models include brand name products,
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cosmetics, and personal care.
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3.3 Separating Consulting Success from Consulting
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The road to success is littered with the rotten corpses of those who walked before
you and failed. It is like the great gold rush of 1849 to San Francisco. If you really want
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to get into it, even after this stern warning, you have my mercy. This is not an easy path
to success, wealth or fame.
That is a fantastic place to start. Persistence is one of the keys to success in this
situation. But those things only get you in the door; to talk, you have to go through a
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filthy bum. You should order a drink and sing karaoke before entering the dance floor
because it is really early in the morning. To put it another way, there is more to it than
you might believe.
Rather than hiding the commercial sides of consulting, they can make or destroy
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an independent contractor career.

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Secret # 1: Your dignity is a way of life. Protect it as your life depends on it.
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Your job really depends on it. People hire contractors for two reasons: someone
said they were important, or thought you were the cheapest available. You get more
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jobs in the first recommendation than in the second, and the level of work is higher if
you choose your reputation over your rating.
Secret # 2: You always want a new gig. Even if you have a current gig, keep your
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eyes open at all times.
Unless you’re lucky enough to get a two-year, metal contract, you’re always looking
for the last day of your current gig, trying to figure out “What’s next?” When you get
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a job and you think, “Oh, they’ll keep extending me over and over again”, you’re not
a consultant, you think as an employee. You will be fired as soon as someone sees
you. Take note of future opportunities, and have something in your back pocket if your
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current contract expires or is canceled early.
Secret # 3: Imagine that if you do not add value, you are overpowered and fired.
Always find ways to add value to a project.
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This should be a rule for all employees, but sadly, there are too many companies
that allow this kind of inertia to remain in their lists permanently. Most of the time,
that’s why the company hires mentors (to do something), so make sure you’re a “do-it-
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yourself” person. I already think you are smart, now you need to bring it to you.
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Secret # 4: You have never been an employee of a contractor, no matter how old
you are. Keep a certain distance.
Making friends in your contract work is good. Pretending to be a worker and

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relying on a water cooler, talking to a group in the morning is not the case. Contractors
must pay hourly while on site. Managers often look for consultants much closer than
employees because they pay high dollars to good contractors and are worried about
wasting their money. Don’t be the reason for your dismissal.
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Secret # 5: Frequent network. Everyone can be a new client.
You never know who will need a contractor in his company. You never know who
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might be promoted to manager or chief executive and then suddenly look for that
particular person with mad skillz to step in and take on a failed project. People end up in
unexpected places, and making enemies is not always a good idea. Leave companies
kindly, never burn bridges, never speak ill of others, even if you have personal problems
with them. These things always come back to haunt you over time, with no choice. Can
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you believe me? You will not be different. I hope so.
While I do not recommend the approach of a smart dealer, who offers business
cards in the bathroom at the bar, you should always be connected. Make sure you
)A
connect with people. LinkedIn is a great way to do that. Facebook is another. MySpace,
probably not so much.
Secret # 6: Finish the start. Bring what you promised. Maintain strong moral
standards.
(c
Four Quick Ways to Finish Your Consultative Work:
Failed to complete project assigned.

Go before your project is completed because you were looking for a better, more
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lucrative job.
Lack of skills that you claim to have and accept a job based on that foundation.
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Secret # 7: The consultant is usually like an expert. Make sure you qualify.
You should not just start arguing when you have finished school or have less
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experience. (Accenture, I look at you here with your army of well-trained and expensive
boys and girls who sent you to big companies like a virus where they try to spread
everywhere without being able to tie their shoes) a remarkable difference, such as
when your field of study was very special -internship or colleagues. But with software
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development, you need a few solid projects under your belt to really be able to call
yourself an important mentor. If I had to put a number on it, maybe less than 5 years
experience before consulting. There are no hard and fast rules in it, but you really
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should know something, otherwise you can’t add value (Secret # 3).
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Secret # 8:
You can try to cheat first, but it will only get you so far. Take a stand for what you
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believe is right.
There are people out there who will tell you that the link has only 5 pages in front of
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the customer in the same book. Sometimes that is true. Most of the time, it is not. You
need to know your field well enough to be an expert (Secret # 7). Not only did it sound
like one thing, but really go here.
Secret # 9: Negotiating in a normal place can be good or bad. Choose your

ity
specialty carefully.
You can find two types of tips about contact logging:
Stick to something special, but with less competition (e.g. Delphi, Embedded C
m
development, etc.)
There are pluses and minuses in both sets and none in my opinion are successful.
)A
A lot of people go to popular camps, which means you will have a lot of work to do.
The competition is too high, which means the total contractor level is down to that skill
level. A lot of people who work with Java are in this kind of situation right now.As more
and more people get good at their jobs, less popular courses charge a lot of money.
It is hard to find new jobs and you might lose your job many times over. Those who
(c
write programmes for Google Go are in this kind of situation right now.So, you should
learn Java in 1995 so that you can be the first person to use new technologies that will
change your field of work. So, I would advise you to stay focused on what you want to

do. So, why not do it? After all, you will spend 30% of your life doing it! It does not make
Notes
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sense to punish yourself when you do not need to.
3.3.1 Consultant-Client Relationship
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Building a partnership with your client — built on trust and understanding — is
essential to establishing long-term working relationships. If you do not trust them, your
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advice will not be trusted. If you do not understand the client as a person, you will not
know how to present the best advice or how it will be taken. And if the client may not
know you as a person, the client may not know how to interpret your advice.
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Building effective working relationships with your client starts on day one. From the
first interaction, you should be aware of the ways in which these (or underdeveloped)
relationships are.
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The following questions may help you to assess the quality of your client’s
relationship counselor and may also identify areas that may need attention. In a real
sense, it can be difficult to monitor the quality of a relationship on a work-by-interaction
basis. That is why these questions can be very helpful. They will help you to step
si
back and look at the relationship in a positive way. Use these questions as a way to
assess the quality of your client relationship and as an advance warning of potentially
problematic relationships.
●●
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Do you understand what makes this client so proud of her business?
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●● Do you understand what this client is most concerned about about their business?
●● Do you understand the extent to which this client is open to outside help and
support?
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●● Has your client given you any signs of trust by sharing sensitive or worrying
information?
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●● Did you and your client share information about your personal health (hobbies,
family, etc.)?
●● Are your conversations connected? Do you and your client really listen to each
other?
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●● Does the client know specific information, skills, and knowledge that they bring to
the relationship?
●● Has the client been able to help others in his or her team in a constructive and
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supportive way?
●● Do you feel comfortable with a client?
●● Does the client seem comfortable with you?
)A
●● Do you feel welcome and respected?

●● Have you been asked to provide any practical assistance, such as advice,
information, or support?
●● Did you give away something of value?
(c
●● Does the client seem interested in working with you?

Establishing a working relationship makes it easier to reach an agreement about

Notes
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your client’s goals and will help your client understand the value you bring to the
partnership. Although establishing a relationship is the first step in the consultation
process, it is important to pay attention to the quality of the relationship throughout the
in
consultation process.
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O
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The above figure demonstrates points about business assignment, consultants,
parent consulting firm, parent client firm and clients. It also explains the the connection
between all these like consultant’s personal values, client’s personal values, need for
mutual & constructive criticism, ethical values, and opportunities that will not lead to
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exploitation.
What makes a good customer relationship with a mentor?

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Most companies go to the market and get three or four quotes before choosing a
project coordinator, however often this is for marketing reasons - to get the best price.
A few companies consider some of the advisor’s qualifications before the project
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begins. A client counselor relationship is a partnership to achieve the same goal.
Here are some ideas on the qualities that contribute to effective communication.
Good Communication
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Good Communication People who like the course, as a good counselor, can talk
quickly and use a ‘jargon’ client they are not familiar with.
It is important for counselors to have good communication skills, to explain what

)A
they understand without having to consult in a consultative way. Similarly, as a client it

is important to speak when the counselor is not clear.
Honesty
(c
This is a common law for life, but especially in this case the consultants must be
honest about their knowledge and qualifications.

Good counselors have a lot to share and will have a network of other mentors with
Notes
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slightly different skills or knowledge that can be helpful to the client.
Information transfer
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Knowledge Transfer Is the counselor willing to share his or her knowledge in a way
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that will educate the client?
Some consultants may be reluctant to provide you with the tools and documents
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you need for fear of losing a future job. This gives them more control, however, and
may cause problems for continued client control.
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Clear and Measurable Objectives
To ensure that the client receives the value from the consultant, both parties must
be clear about what they expect to achieve.
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Although this is usually written in a quotation or suggestion, it will not be

uncommon for scope to move into other areas - especially once the initial project is
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completed and you move on to the support phase.
Project and Time Management Skills

Once you know what you expect to achieve, the next step is to achieve it.
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Good advisers find a balance between honoring the day-to-day operations of

the organization and maintaining the momentum of the project to keep pace with the
deadlines.
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Often the most important things come to the client and this is where a good mentor
can use project skills to reschedule appointments and inform others who may be
affected.
)A
It is in line with the Culture of the Organization

Organizational Culture Organization varies in many ways. Some are legal entities
that require certain dress and grooming rules. Some are startups that focus on
producing in a relaxed environment.
(c
It is important to find a mentor who accepts the culture of your organization and
who can adapt to working within it.

“Meetings with bean bags? Certainly.

Notes
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All Agenda items posted in writing by 3pm? That’s fine too. “
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Improve Performance
No one is perfect and no one knows everything.
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It is important that the consultant can self-evaluate and identify improvements that
can help a client project.
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Equally, there should be no embarrassment when a counselor makes a point. We
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cannot store every piece of information and it is easy to verify things.
SummaryUsing a mentor is like hiring an employee in many ways. It is important

to find the right one for your organization but this can be difficult before you start
working with it.
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The first face-to-face meeting before starting work is often the most effective way to
reduce the risk of wrong choices.
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It can be said that all of the above can be combined with one vision: Collaboration.
3.3.2 Models of Consulting

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Another way to close the years is to give it a coherent name. I suggest we name
the twentieth century The Age of Disabling Professions, a time when people have
“problems”, experts have “solutions”, scientists estimate. Impossible things like “skills”
and “needs” - Ivan Illich, Disabled Workers, 1978
m
When it comes to the topic of discussion, how much has it changed?
There are three main types of business consultation: Professional, Physician, and
Process Consultation. The only one that will leave your organization able to improve
)A
itself in the future, know more about its operating system, has a very high network,
and is very focused on the concept of ownership and accountability. When buying
consulting counselors, organization leaders should develop the ability to clearly see
what the mentor model of the support counselor model means. The advantage is that
you will make more informed decisions about the type of support that you invite to your
(c
organization and how you can set your expectations for change.

Notes
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O
Three Models of Business Consultation:
1. Firm Model
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Think of the typical large consulting firm. These firms employ many consultants,
associates, junior, and senior people.
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As the owner, your role starts off as doing a bit of everything — but quickly
becomes more about how to hire, train and manage people.
2. Solo / Independent Model

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As a solo consultant, your business is usually just you — maybe some contractors
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or assistants.
You’re doing everything from client work to marketing and sales.

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3. Productized Model
The productized consulting firm model often stems from one of the above models.
You identify one problem your ideal clients have, and you develop a solution to that
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one problem.
With a productized model, everything is focused on solving that core problem for
a specific type of client. You develop systems and processes to solve the problem. You
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do the same thing over and over. This repetition causes you to become very efficient at
solving it.
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)A
(c
Figure: Consulting Model

Case Study: The Group Adjusted Its Procedure

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This model study was taken from an organization where an important business
process took a long time to complete in an increasingly competitive environment. No
in
one fully understood the end-to-end process. There has been a lack of leadership at the
level of the unit to outsiders who evaluate the system and recommend changes to it.
Trust was the key.
nl
The program included a middle group of those working on the program. There
was a new senior leader in charge of the program but he did not fully understand how
it works and why things are so. There were middle managers who were accountable
O
for the system process and who may have felt very vulnerable in this process. There
were also those closest to the work. Collectively, they formulate a system map, collect
data from operators, collectively learn about complete system functionality and error
sources, and prepare corrections for changes in the form of process ideas that they will
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explore.
Results can only appear internally. First, awareness of the complete system
became a reality shared in the transformation team. They all understood the process
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from end to end where before no one knew the whole chain of numbers. Second,
this new awareness and process of teamwork created a sense of ownership and
responsibility to improve the system. Third, the solutions they had to consider were on
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their own. This has empowered and empowered to change the system and to adapt
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effectively to unintended consequences of change. These effects, this inclusion within
understanding and identity, can only emerge from the process model.
Measuring the pros and cons of each model

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It is important to know and accept the key ideas of the consultation process, a
process that asks the organization to design and implement its solutions. It is tempting
to hire people to solve your problems. And the siren song - attractive but dangerous
and can lead to unpleasant consequences. Here are a few key considerations of the
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process consultation model:
You are maintaining the ownership of the business problem. It is not fully done and
it is not advisable to give an external consultant accountability.
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Only you can know what will eventually work in your system.
You need to learn to recognize problems and consider your own solutions. Only
then will the members of your organization have the motivation to make the necessary
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changes.
There are, of course, situations in which the professional and physician-patient

model will work, for example:
)A
If the problem and the solution are clearly defined and natural, a professional
model will probably work.
If the problem is clear but there is no solution, the doctor-patient can work if the
procedure is collaborative.
(c
If the problem or solution is not clear, then a process consultation is the best way
forward, at least until it becomes clear what is happening.

Notes
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Find the Right Business Consultation Model
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You want to choose the right consulting company model for you and your
consulting business.
First, you need to think about how big you want your company to be:
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What size factory do you want to build?
Do you want to be a personal mentor or an independent consultant?

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Do you want to have a consultation firm with two, three, four, five employees - or do
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you want a factory with 10 or 20 or 50 or 100 employees?
How do you feel about managing teams, people, systems and processes?
Your answers to these questions will affect the type of model, offers, and price
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points you use.
What about your income goals? Consider

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What is the desired level of revenue for you?
Do you want to make a quarter-million dollars a year, or do you want to make a

half-million, or a million dollars in personal income?
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Is profit your top priority, or are you willing to put off major payments in order to
expand your consulting firm? Do you want to make $5 million, $10 million, or $50 million
in revenue? Your revenue goals will influence the model, method, and strategies you
employ to reach them. You should also think about how challenging you want your
m
consulting business to be:
How would you feel about a company that has a lot of moving pieces and requires
more infrastructure, staff or contractors, and systems? Or do you want to run a very
)A
simple business where you only sell one type of product, service, or deal?v Would
you like to spend more time developing products or services but less time dealing with
customers?
First, consider those questions carefully. After you have answered them, you may
(c
begin looking at the many models available.

3 Certified Business Model Models

Notes
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There are 3 business models for consultation that are tried and true.
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1. Strong Model
Consider a large conventional consulting firm. These companies employ many
advisors, partners, juniors, and seniors.
nl
As an owner, your role begins with doing your bit of everything - but it quickly
becomes more about how to hire, train and manage people.
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Example
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Figure: Business model for corporate consultation

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You go from spending all your time delivering to customer projects and business
development to management, strategy and business development. Your team of
advisors will do a lot of work facing clients.
Money is made aside: the difference between what customers pay for your
m
company, and what your team pays.
The more clients you work in the business - the higher the interaction value - the
better.
)A
Growth is due to working with more customers and hiring more staff.
Advantages
●● Well-thought-out firms may be able to add more mentors to their work
(c
●● It removes you from performing daily client work

●● Business can work without you
●● Factories are an expensive commodity and are very easy to sell

Notes
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Disadvantages
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●● It needs a lot of people management
●● There is a margin of low profit
●● Firms need more infrastructure to continue operating
nl
●● Most people depend on you (and you have to make a payroll)
2. Single / Independent Model
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As a sole consultant, your business is usually just you - perhaps the contractors or
some assistants.
He does everything from customer service to advertising and marketing.
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Example
an example of a self-consulting business model
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ve
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Your work is usually done in a way that suits each client. Your focus is on working
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with a few customers, high dollar prices.
The benefits of a single model are…

●● It is soft and beneficial
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●● Flexible and easy to adapt or change

●● A focused lifestyle - you can turn it into the kind of life you want to live
)A
Disadvantages of single model ...

●● It’s hard to sell because you become the face of the business
●● You are a business - if you stop working, it is difficult to make money
(c
3. Manufactured Model
The factory model produced usually comes from one of the above models.

You identify one problem your potential clients have, and then develop a solution to
Notes
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that one problem.
With a manufactured model, everything is focused on solving that core problem of a
in
particular type of client. Develops problem-solving systems and processes. He did the same
thing over and over again. This repetition makes you more successful in resolving it.
nl
Example
what
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ve
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Figure: An example of a business model of a product-based consultant

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Usually 80% of what you do is the same for each client, and about 20% is made for
them.
With systems in place, your focus shifts from doing everything individually - to
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empowering or hiring people (full-time or private / contractors) to manage delivery,

service, marketing, and marketing.
With these programs available, you can rate. You will go to high and low volume,
medium, and high volume clients.
m
The advantages of the model produced are…

●● You create affordable goods
)A
●● A lot of energy has a recurring income

●● There is a great opportunity to measure
●● You can take it out on a daily basis
(c

Disadvantages of model made ...

Notes
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●● Others find that doing the same thing over and over again is frustrating
●● ● You have to hire people to do the job
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●● ● Training and managing people is required
●● ● Multiple customer management is required
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3.3.3 Why Do Management Consultants Fail?
Negative or negative business planning that leads to misunderstandings between
O
the company and its customers and the market. Having the wrong product, at the wrong
time, at the wrong price, in the wrong market.
Poor internal control leading to loss of revenue, savings or other resources.
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There is no or improper monitoring, evaluation and analysis of customer feedback,
business outcomes and small / large environmental impacts. Getting into disability
analysis by having all the latest analytical tools without converting any acquired
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information into business intelligence.
The dispute could have escalated to the point where management advisers have
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no excuse for the above as they charge their clients to ensure that their companies are
“proof of failure”. The same argument may also be made that IT Engineers should never
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have problems with their PCs at home or that Health Professionals should not have sick
children at home.
Sadly, the truth is not logical. The answer lies in the military’s understanding
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of war. The general, who serves as the commander of the attack, will never run for
office. He and his command council will be at a distance from the war when they have
the opportunity to watch the bird’s eye on the whole situation by accessing political,
operational, socio-economic and other sources of information / intelligence that could
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undermine the groundwork in achieving their strategic and operational goals.
Conclusion
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There is no way to guarantee business success by learning the latest vocabulary or

developing next-generation business models and technologies. A skilled management
consultant, on the other hand, should bring a “bird’s view” to the table. Being removed
from the stresses of operating a corporate business and day-to-day operations allows
for calm and collected thinking and noticing (sometimes even obvious) things that would
m
otherwise blind the eyes and thoughts of individuals who are confronted with them on a
regular basis. The coordinator and his or her client can then devise a new strategy that
has a clear role to play in accomplishing initial objectives via integrated and integrated
)A
evaluation tasks and improvement as a team. With this emphasis, company owners can
prosper by utilising the impartial assistance of professionals who will protect us from the
dark holes in a business that hinder many people from starting their own.
(c

Notes
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in
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O
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Why Do Supervisors Fail to Deliver Effective Results to Their Clients? Ten reasons
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why this should be self-evident yet is frequently disregarded, whether you are an
employer or a consultant.
1. Misunderstanding Business
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A dangerous and common mistake made by professionals is that they do not

understand their clients’ business. It is not enough to know about business or industry,
or to provide boilerplate solutions. It is important to know the history, purpose,
objectives, competitors and stakeholders associated with the organization.
m
2. Is One Size Equal To All?

When it comes to processes, people, communication, strategies and solutions
)A
- one size does not all fit. Let the best practices be your guide, but always put your
intuition and skill to work in defining each component, and their impact on a complete
solution, along the way.
3. The audience
(c
You cannot have an “all-knowing” attitude and expect to find and understand critical
pain points that will allow you to provide the right analysis. By not listening, or ignoring

what your client is saying, you will lose important features that impair your ability to
Notes
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make the best and most profitable recommendations.
4. Wrong Communication
in
Failure to see the value in identifying and communicating with the right players is
tantamount to playing part-time cards. For example, coordinators often misinterpret
organizational performance by providing only high quality content. Failure is to fail to
nl
recognize the importance of those who have the greatest responsibility for the job. If
you count badly here, it will discard the whole algorithm of solutions.
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5. A view of the tunnel
Adjust your lens. It’s important to see the whole picture - which includes processes
and people. Once you have identified all the relevant elements and strengths, you will
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be able to begin to explain how things work together and start working on building
successful solutions.
6. Empty
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No one will care about your list of accomplishments, your well-designed
suggestions, or how you speak and how convincing you are if you just have to give a
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re-packaging of what they already know. It’s all about adding value and providing real
solutions to their pain.
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7. Inconvenience
As with any successful relationship, it takes two ... not just any two. There needs
to be a consistent balance to achieve the agreed outcomes. Not all consultants
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have a variety of careers. If an organization needs someone who understands the

implementation of state-of-the-art technology in the public domain - it probably does
not want someone with a complete history of nonprofit health services - but who has
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absolutely no technical expertise.
8. Bad Communication
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This could be a real killer. Your communication should be clear and consistent.
You need to be an expert listener and be able to have a useful and open conversation.
Quick with feedback, reports and feedback from all eligible players. Also, you need to
be able to define pain, goals and solutions.
m
9. Negligence
This should be provided but unfortunately it is not. You need to respect the
client by coming to meetings prepared, organized, speaking openly, being on time,
)A
communicating in a respectful manner and being quick and making sure you keep your
promises. If you ignore the details, it will appear.
10. Lack of Integrity

(c
Honesty, trust and respect are essential to all healthy relationships. By ignoring the
importance and impact of integrity, you are setting yourself up for failure. You cannot be

dishonest, deceitful, abusive or reckless and expect to be rewarded. There is only one
Notes
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guardian of your dignity - you!
in
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Here are some of the reasons why projects fail, as well as ways to avoid them.
si
1. Insufficient resource planning
We make schedules. Meetings are organised by us. We design the structure,
themes, and user interfaces. But, in the midst of all that project preparation, we
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occasionally forget to account for our resources. It is a major factor in why projects fail.
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Project management entails resource management, which frequently includes other
initiatives. Most of us are aware of the importance of financial resource planning.
When considering external resources for your next project, consider the following
questions:
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●● What kind of human resources are needed? Who are they, and how long will they
be there? Is anyone else working on a project right now, or could they be called
away before my project is finished?
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●● What are the prerequisites? Do we have the necessary office space, desks,
computers, conference rooms, and production locations to complete this project?
●● On what third-party vendors will we rely? What are the turnaround times and
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restrictions of their services?

●● What kind of knowledge resources are we missing? Is it possible for me to bring
in an expert or conduct training to help my team develop the necessary project
management skills?
m
2. Ambiguous objectives and goals

Beginning work without clear project objectives and goals is one of the surest ways
)A
to ensure project failure. After all, there is no way to determine if you have succeeded if
you do not know what you are attempting to do.
On a personal level, consider the following scenario. Let us pretend you have
made the decision to “get in shape.”
(c
●● What exactly does that imply?

●● Do you wish to drop some weight?

●● Do you want to gain muscle?

Notes
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●● Do you want to improve your endurance?
Your physical condition will improve if you simply start exercising and/or eating
in
better–which, let us be honest, we should all be doing–but you will not truly know if
you have succeeded. You will require well-defined objectives. In your professional life,
having ambiguous goals is just as likely to lead to failure.
nl
How to avoid it: There are several popular goal-setting frameworks, such as
SMART goals and CLEAR goals, but the key is that your goals must be measurable
and realistic. Say you want to drop fifteen pounds in the next four months rather than
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merely “lose weight.” That is both measurable and achievable. Because the projects
you oversee are more complicated, it is much more important to explicitly state your
goals.
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3. Invisibility of the project
A lack of visibility, no matter how well-planned a project is, can swiftly lead to
failure. It is critical to set up a project management system that allows everyone on the
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team to see what is going on, not just the project manager. Project transparency of task
status, clear communication, and good document management are all examples of
visibility.
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How to avoid it: When everyone is aware of the status of each project work, they
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may offer assistance or make adjustments as needed. It promotes proactive problem-
solving and proactive work. It does not have to be difficult to manage documents.
Indeed, having a centralised, digital repository for all project papers simplifies your job
as a project manager while also increasing visibility.
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4. Gaps in communication
It should go without saying that communication is crucial in project management.
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Your team’s communication tools should be explained and implemented from the
beginning of your project.
How to avoid it: Make sure everyone on the team understands what is expected
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and can utilise the technology you have chosen, whether it be email, text messaging,
a chat service, or a combination of these. To bridge these gaps, you can utilise project
management software that includes features like chat and group meetings.
Set explicit expectations and rules for the types of information that must be
m
provided in addition to the mode of communication.
5. Expansion of the scope

)A
At first glance, it appears to be completely harmless. A simple consumer request to

add an item here, a smart idea to expand a service there, and your project scope has
overflowed and your team has become over-extended before you know it. Scope creep
occurs when one of two things happens:
(c
●● The project’s parameters were not well-defined from the start or

●● There is pressure to take on duties that were not part of the original project plan,
either from inside the team or from customers or managers.
How to avoid it: Scope creep is a concern since it frequently leads to project failure.
Notes
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You have not planned the time or resources needed to finish the extra duties, so what
could have been a huge success ends up being a huge disappointment.
in
6. Expectations that are unrealistic
Unrealistic expectations, often masked as unwavering optimism, have sunk
countless undertakings. It is critical for you to have a clear vision of what your team can
nl
do and in what time frame as a project manager. Once your expectations are in line with
reality, you must convey them to the client and your supervisors on a regular basis.
O
How to avoid it: Your team will have a much better chance of completing the project
successfully if realistic expectations are set and understood by all project stakeholders.
3.3.4 Challenges Facing Global Consulting Industry
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Consulting firms play an important role in assisting businesses in all areas such
as business strategies, manufacturing and supply chain, marketing and marketing, and
human resources. Although the diversity of the sector means that it can change the
si
climate like a few others, a suggests that it still faces a number of challenges in the
digital business era.
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Advisors support their clients in a variety of ways, ranging from helping them
create business models, reducing costs, predicting risks and developing new products,
ve
strengthening their talent management processes, staying compliant and hiring staff.
Growing up, this has involved helping clients stay afloat when using digital technology,
or adapting to rapidly changing world conditions. As a result, although the global
economy seems to be slowing down, the negotiating industry continues to enjoy strong
ni
growth.
Despite this growth, however, the challenges facing consultants are increasing.
According to Deltek’s ‘Insight to Action - The Future of the Professional Services
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Industry’, the consultation process should consider strategies to address these

challenges if they are to continue to be successful. Summary of the five key challenges
identified in the study.
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1. Changing client behavior

Consumers of professional service companies are becoming more demanding,
moving away from ideas such as billing hours, and requiring fixed payments and
greater clarity on costs. In a rapidly growing environment, fueled by new digital
m
innovations, clients now expect greater value, higher work quality, and faster delivery of
solutions and services.
)A
At the same time, clients also ask for transparency and accountability for the work
presented. This particular behavioral change stems from the financial crisis - where
companies are forced to significantly reduce spending without consulting - since then,
they have maintained a high level of scrutiny. Clients monitor the amount offered by
counselors who are more interested than ever.
(c

Notes
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Adding to the growing trend is that consulting firms no longer enjoy ruling in
specialized knowledge. Over the past two decades, firms like McKinsey, Boston
Consulting Group, and Big Four had the unique knowledge and practice skills that
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made their offering so valuable. Now, much of this information is readily available online
for those who are willing to do research. In addition, the alumni of tier-1 consulting
companies are now widespread. McKinsey alone has 30,000 students working in
leadership roles in all private, public and social sectors worldwide, meaning their
si
expertise has spread across the industry.
As a result of these changes, clients are now more likely to spread the word
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between different providers of different services. Through the use of professional
consultancy and in-store firms, clients can delve deeper into professional issues such
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as change management, or the immediate acceptance of performance.
The so-called ‘purpose-driven’ consultants are also on the rise, amid the current
state of public scrutiny about big business processes. Therefore, consultants must also
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be good citizens of the companies themselves, showing great corporate responsibility,

rather than just prioritizing their value. In particular, consulting firms with a history of
reconstruction or focusing on financial services, often stand out because of their role in
U
supporting job cuts or the transfer of customer benefits to tax havens.
According to a Deltek study, “the issue of misconduct has now reached a critical
juncture, with consumers and shareholders now being surprised by the change. There
is widespread confidence that firms should do the right thing. ”
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This is something other firms have played into. Bain & Company’s strategic
coordinator, for example, is committed to a global $ 1 billion target for pro bono
consultation work for the right reasons by 2025. McKinsey has now established
the McKinsey Generation to emphasize its support for the social impact. McKinsey
m
Generation is a youth employment program that helps young people find jobs and
create jobs.
)A
2. Profit
As clients are more willing to shop locally for consulting services, they
understandably hold more power than ever before, and demand greater value and
flexibility at lower prices. In a Deltek study, 54% of senior executives said their biggest
challenge posed by “changing customer behavior” was to provide more value at the
(c
same cost.

This has reached the end of consultation firms, forcing consultants to redesign
Notes
e
their business models accordingly. Fifty-one percent of those surveyed considered price
pressure as a major business development challenge over the next 12 months, and
the increase in profits was significant for 54% of firms surveyed, followed by contract
in
management and / or unexpected spending (27). %).
This reduction in rate comes at a time when additional costs, especially salaries,
nl
continue to rise during the lack of talent, leading to consultative actions, especially
those that have a problem with efficiency or are unable to control their internal
performance, feeling pressured.
O
ty
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In another study conducted by Deltek, researchers interviewed consulting
r
executives about how they believed they could maximize solid profits. Increases in cost
management considerations are prioritized, followed by improved operational efficiency
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by better management of outflows and outflows, as well as reducing project overputs,
especially in the case of fixed value projects.
3. New competition
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Encouraged by new technologies that enable them to do more with less, new
players enter the negotiating market, and alternatively, smart business structures
are being used. In a Deltek study, 55% said tackling increasing competition in the
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sector was a major factor in business, while 33% of senior executives said “defining
competitive advantage” was among the top three priorities over the next five years.
Shopping malls and professional firms are not the only type of competition that
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will grow. The proliferation of independent consultants also proves to be a major

competitive force. In the UK, there are now more than 2 million private workers and that
number will continue to grow. The majority of these independent consultants work in the
field of professional services, consultation and project management. They put pressure
on prices, because they work without the same high costs as large firms, and they can
m
charge less than what can be done for suspended consultants. In the UK now, one-fifth
of the £ 10 + billion administrative consultation process goes to private consultants.
)A
The rapid growth of independent consultants is accelerated by independent sites

such as Upwork, PeoplePerHour, Talmix and Comatch. These sites connect millions of
professionals around the world - for example, Southern Asian freelancers and European
clients. This eliminates the need for professional service providers to act as mediators,
which has been a beneficial part of many of the companies they work with.
(c
Elsewhere, at the top of the market, big players only grow. The top ten consulting
companies worldwide now have a 56% stake in the industry, with the top 200 holding

about 80%. Both percentages have been rising since the turn of the century, driven
Notes
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by the Big Four and a growing number of deals in the industry as a way to grow.
As a result, the professional services industry sees the ‘oppressive environment’
increasingly, with companies too large to be seen as professionals and too small to
in
compete at the top table under tremendous pressure.
At the same time, the rise of automation allows corporate buyers to deal with their
nl
complex housing problems. This further challenges the professional services sector,
as it reduces the need for outsourcing. Clients are able to gain a very high level of
understanding of how their work works, for free or at very low prices, and can do so
in real time. Automation also takes some of the low-level tasks when hand-handled by
O
professional service firms - a practice that is likely to continue until the creation process.
With the growth of artificial intelligence, the automation of the communication

function can become more realistic. The work done by teams of intelligent young
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analysts today can be automated within minutes. For example, Celonis, a German
software company focused on mining, disrupts the consultation process management
process. The firmware software automatically detects malfunctions in supply chains or
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production processes, a function often performed by management supervisors.
4. The complexity of the project
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Consulting firms face a growing complex environment where they must continue
to provide the best possible advice. The global position of the industry adds to the
ve
problem, as firms bring in many projects overseas, in many cases also working with
small contractors, partner companies and / or the private sector. Delivering the project
itself is not a problem - the challenge is to do it faster, more efficiently and on a tight
budget, while continuing to satisfy customer needs.
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Complexity increases because customers gain a better understanding of their

projects and want more control. The advent of mobile technology, for example, has
U
caused a dramatic change in the industry, enabling participants to quickly access

project information on the go. It gives project managers the challenge of staying on top
of their projects within a very powerful data center.
The complexity of the project comes with the cost, too. It makes it difficult for
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project managers to plan ahead, which means that their resources are increasing. It can
also put a lower line of business at risk, with random changes that are often required
late in the project. 71% of respondents admitted to Deltek that they were not paid for
all the change requests they had, either because the client refused or because they
m
decided not to refer them.
Looking ahead, more than half of the professionals interviewed (52%) think that
project complexity growth will be the first challenge in project management over the
)A
next five years. At the top of the company, 63% of managers say the difficulty of the
project is the key operational challenges expected in the next five years. To address
complexity, clients need a good understanding of their projects in terms of expected
costs, schedules, risks, resources needed, and revenue. This allows teams to focus
their resources more efficiently and maximize efficiency.
(c

5. Cybersecurity
Notes
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Consulting companies handle large amounts of confidential client information.
These range from strategic information (used for strategic transactions, or mergers
in
and acquisitions) to trade (sales information and market share price) and personal data
(employee data as part of cost-cutting and cost-cutting exercises). Such information
of a high value can be very harmful if it falls into the wrong hands. That makes
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professional service firms the obvious victims of hackers, and breach of data, therefore,
poses a serious threat especially to negotiations.
In Europe, the introduction of the General Data Protection Regulation (GDPR) -
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which came into effect last year - puts more weight on the importance of accessing
cybersecurity.
3.3.5 Ethical Standards
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The Code of Conduct is used to establish the ethical standards that business
owners and managers expect from their employees, suppliers, and other stakeholders.
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Maintaining high moral standards is an important and vital step in our daily life.
Whether in an educational institution or in a workplace, maintaining a high moral
standard is essential.
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Along with mankind’s brief history, the great philosophers of the world have
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worked hard to determine the meaning of the term ‘Moral Values.’ It refers to an act of
righteousness that precedes the wise judicial process.
Every company or organization has the right to develop certain values in its
organization. That is why; there is no set of standards for all companies.
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What Are Morals?

Moral values can be effectively defined as a set of values. Generally, they are
U
established by the founding members of a particular company or organization to

facilitate the intelligent transmission of its basic ethical principles.
These well-documented code of conduct for a particular company will provide its
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employees with a framework to which they should refer, while making decisions.
It helps to issue values that form the core foundation of a particular company
or culture and organization. By identifying the characteristics of what is defined as a
company’s ethical standards, they help define the company’s ethical standards, as
m
expected of its employees.
Corporate corporations are found to make great efforts in defining their ethical
standards.
)A
Many companies are finding that they are achieving this through a process of
ethical evaluation. Behavioral modeling is the process by which high-level employees or
staff work to define a company’s ethical standards for their employees at lower levels.
In addition to the organizational application of ethical standards, they also apply

(c
to each level. Making the right decision may seem like a daunting task. But in reality,

it may not always be so, especially in the workplace, when competition is high, and
Notes
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people are perverted in every way, maintaining good personal values is essential.
Now let’s go over some of the basic values here and now-
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What Are Basic Principles?
What are the Basic Values?
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Every company or organization has its own method of defining what falls under the
term ‘Code of Conduct.’ Some of the most common ethical standards are discussed in
detail below:
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1. Obeying the law
Rules governing every company or organization define the standard of right and
wrong. Employees and all managers are expected to adhere to basic ethical principles
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that are clearly defined under the company’s terms and conditions.
Ensuring that aspects of human behavior fall within the specified standards
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ensures that the basic ethical requirements in the workplace are maintained
professionally.
It is expected that people will also remember that discrimination against anyone
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related to classification is considered a violation of the required code of conduct.
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2. Know the ethical requirements of the company
Companies or organizations are found publishing codes of conduct that they
expect from their employees. There are individual firms in corporations operating in the
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public sector, each with its own predefined types of ethical standards.
Even if one finds that small firms are less inclined to look at the effectiveness of
these codes, they will still be an important factor in defining their employees’ behavior
U
towards each other.
3. Stay alert for changing trends

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The ethics and standards of society are constantly undergoing change or change
through a slow but slow process. The same can be said of business dealings.
Behaviors that may have been accepted in the past may not always be the same
as the tides of time. Therefore, it is important for employees to keep their eyes and ears
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open even for small changes in company ethics.
This will help them to advance the path of judgment and success.
)A
4. Be considerate
It is often said, “Smiles go a long way.” The same is true at work. Smiling while
shaking hands or giving a small smile while wishing each other a good morning leads
the way to create a beautiful impression.
(c

Notes
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in
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O
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What is the Common Code of Ethics?
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Every company has a clear framework for defining its code of conduct. By following
the same path, employees can move themselves in the right direction and make the
right decisions.
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There are three key codes of conduct that companies are most likely to follow.
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They are as follows:
1. Code of Business Conduct

Generally, the term covers a wide range of social issues. It uses a variety of
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beliefs and practices that are well maintained by a given company. It also specifies the
possible consequences for a person who fails to follow the codes.
This code of conduct works very well depending on how hard the company can use
it in the field of work.
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2. Code of Conduct for Employees

This particular code helps to clarify the various steps employees are expected to
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remember when faced with ethical situations. This may ensure a straightforward list of
do’s and don’ts.
It helps to determine if anyone has violated company code of conduct in any way.
m
)A
(c

3. The Exercise Code

Notes
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It is common knowledge that you should be able to control a specific task.
Employees are given a step-by-step tutorial on how to follow the company’s required
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code of behaviour.
Final ThoughtsA common form of ethics requires attention in all areas of human
life.
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Whether at home or at work, everyone has to follow a preconceived notion of
ethical standards. It is only by following a certain moral code that a perfect creature is
recorded.
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Businesses that incorporate certain ethical standards are considered to be more
effective in ensuring a well-organized structure that provides a good space for the entire
organization. Therefore, they enjoy a stable, reasonable, and productive life.
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r si
ve
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3.4 Case Study

Background
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For decades, the $ 5 billion company has grown in acquisition and increased
premiums for the most important product lines. But over the next five years, their trading
teams saw power purchases from R&D professionals. Product matching agreements
and strategic acquisition agreements are abruptly expanding into a commercial
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environment where they are controlled by customer technology people. In annual price
updates, 8-10% discount requests across the board are the norm. The company was
very concerned and frustrated because these processes were rapidly spreading among
a few international accounts when 60% of the company’s ingredient volume flowed.
m
Application
EMM first mapped the location of a company’s product value for those large
)A
accounts, identifying areas where it could meet unmet needs, classify, and establish.
Next, price information is created to link client value creation throughout the product
life cycle to each customer. Succeeding in this pricing-based approach to customer
information requires a sales consultation model, the first of its kind in the industry. EMM
has assisted the company in creating a large account-based accounting system. The
(c
final step in the EMM process - the development of value-based systems - involves
the external and internal components. Outside, the organization builds relationships
with newly acquired “value buyers” in product and category management in customer

companies. Internally, the organization has embedded value-based skills to close the
Notes
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gap between global and regional account managers and pricing / cost managers. And
with the change management, attitudes and behavior were shifted from “customer
advocate” to “exchange manager.”
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Results
The results have been very positive. In collaboration with EMM Group, the
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company has withdrawn the business-wide trend in the erosion of genes and key
CPG accounts, acknowledging an average price increase of 6% compared to the 10%
decrease they originally demanded.
O
Summary
●● Everything costs money, which is one of the most basic and unavoidable aspects
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of existence. It is aggravating to spend all of your money every week and not be
able to show it. Learning to evaluate prices to value can help you get the most out
of your weekly exams and maximise your financial resources.
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●● Costs are simple to comprehend. How much money are you planning to spend
on this? These are expenses. The cost, on the other hand, is a little more
complicated. Value can be found in a variety of locations. These three important
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concepts will assist you in mastering the skill of determining whether an object is
worth more or less than its face value.
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●● Determining the value of an item before seeing the price is a useful approach to
practise this ability. If you are considering purchasing something new, take a look
at it first.
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●● According to a number of critical publications on management consultation,

the clash between management consulting advice and corporate leaders’
ability to implement a recommended change has major ramifications for current
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organisations.
●● Setting lofty goals like “great productivity” or other ambiguous rowing ideals that
cannot be evaluated or appraised falls within this category. The result should be
concise rather than a broad-based diagnosis. Companies must understand that
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consultants cannot substitute solid management and vision. It is a waste of time

and money to hire consultants without a clear understanding of the assistance
required.
●● To satisfy the demands of each consumer, we encourage you to use the scientific
m
approach and make truth-driven judgments. Our assignments are approached

in a flexible, collaborative, and results-oriented manner. We use unconventional
thinking and creative ability to challenge conventional thinking and experimental
)A
assumptions whenever possible.

●● Businesses must continue to improve in light of the changing market environment
and the advent of new technology. Companies frequently require assistance in
order to make significant changes in their economic lives. Management advisors
use their knowledge to assist their clients in making the planned adjustments more
(c
efficient.

●● Management managers are responsible for finding answers to the client’s changing
Notes
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business needs. The breadth of cooperation can range from the creation of a strategic
context to large-scale implementation, process improvement, change management,
and the installation of new technology. Each engagement’s analysis varies, but it
in
normally includes in-depth data and financial analysis using Microsoft Excel.
●● Management professionals are frequently forced to adapt to a certain industry of
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their choice as they advance in their careers, eventually becoming “experts” in
the field. They must be informed about industry changes and how they may affect
current and new clients.
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●● Managing mentors can work for traditional firms and consultancy niches, strategic
companies and institutions, and after a few years of experience, they can advance
to leadership positions or become independent consultants. To deliver reliable
business solutions to their consumers, they wear many hats.
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●● One of the most essential advantages of becoming a mentor is that you can
quickly learn a variety of talents. You will need to enhance your skills on a regular
basis because you will be working on a variety of tasks.
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●● Consultation is also beneficial for persons who enjoy travelling because you will
frequently work in cities other than your hometown. When I was working on a
consultation, for example, I would leave on Monday morning and return on Thursday
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evening. It depends on each of your characters whether you like it or not.
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●● Costs can change. It may depend on the amount of material used or the time it
takes to complete the task. Costs can go up or down - and while rising costs may
affect the price, lowering costs (but maintaining or raising prices) should be the
goal of any experienced entrepreneur. In other words, you should never make a
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purchase at a cost.
●● A good website, a carefully crafted copy, and well-designed marketing materials,
including packaging, give your customers the feeling that you are providing
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valuable services. But the best way to communicate value is to share the stories of
other customers who already have it.
●● Products come and go, costs go up and down, markets grow and evaporate. But
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if you can provide an essential service or product, get into the real needs of your
customer and desires, and learn how to connect and build on that value, you can
establish a solid business that makes the types of profits that you deserve.
●● Expenses are basically the total amount of material used in the production of
m
goods or the delivery of services. In contrast, the value of a product or service is

the use or value of an individual product or service.
●● Price is the consideration offered as a return for a good profit or service. In a
)A
commercial transaction, the amount means the amount that the seller charges to
the buyer, in exchange for any product or service, including costs and profits. It is
a quality return, usually expressed in price, in the market place.
●● Expenses can be defined as the amount spent on the assets included, such as
land, labor, money, machinery, equipment, etc. for the purpose of producing a
(c
product or providing services. It can be anything that adds to the cost of a product
or service produced or provided by a company.

●● Market fluctuations due to demand and supply strength or competitive strength or

Notes
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prices of related items often affect product price. Similarly, there are many factors
that lead to the ups and downs of cost components, namely assets, employment
and transactions, which may include economic transformation, government
in
disruption, technological changes, and so on.
●● A price-based approach may not always be the company’s best pricing strategy,
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and implementing it may come with a few hurdles. It can be very difficult to
evaluate the estimated value of a product or service. For costs and costs or prices
based on the competition, the price can be easily determined by measuring the
cost or pricing of the competitor. The price-based strategy involves speculation
O
and is naturally high.
●● Price-based pricing policy is most effective in markets where owning an item
enhances the customer’s image itself or helps the unparalleled sense of life. To
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achieve that, this estimated value reflects the value of what the consumers are
willing to offer, and as a result directly affects the amount the consumer pays in the
end.
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●● The fashion industry is one of the main influences on prices, where pricing is a
common practice. Often, well-known brand name designers place high prices
based on consumer perceptions of how a product affects their image. Also, if a
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designer could not persuade an A-list celebrity to wear his or her look at a red-
carpet event, the estimated value of the related product could skyrocket.
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●● Consulting firms play an important role in assisting businesses in all areas such
as business strategies, manufacturing and supply chain, marketing and marketing,
and human resources. Although the diversity of the sector means that it can
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change the climate like a few others, a report from Deltek suggests that it still
faces a number of challenges in the digital business era.
●● Consumers of professional service companies are becoming more demanding,
U
moving away from ideas such as billing hours, and requiring fixed payments and
greater clarity on costs. In a rapidly growing environment, fueled by new digital
innovations, clients now expect greater value, higher work quality, and faster
delivery of solutions and services.
ity
●● Consulting firms face a growing complex environment where they must continue
to provide the best possible advice. The global position of the industry adds to the
problem, as firms bring in many projects overseas, in many cases also working
with small contractors, partner companies and / or the private sector. Delivering
m
the project itself is not a problem - the challenge is to do it faster, more efficiently
and on a tight budget, while continuing to satisfy customer needs.
Glossary
)A
●● Fixed Costs: Costs, which remain the same regardless of the number of units
produced, are called fixed costs. For example, hiring, downgrading, insurance,
web hosting etc.
●● Flexible Costs: The type of cost, which varies in the number of units produced is
(c
called the variable cost. For example, immature goods, personnel, shipping costs,
etc.

●● Marginal Costs – Marginal cost is the cost of producing an extra unit. If the total
Notes
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cost of 3 units is 1550, and the total cost of 4 units is 1900. The marginal cost of
the 4th unit is 350.
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●● Opportunity Cost – Opportunity cost is the next best alternative foregone. If you
invest £1million in developing a cure for pancreatic cancer, the opportunity cost is
that you can’t use that money to invest in developing a cure for skin cancer.
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●● Backsourcing: A term that more precisely describes the process of bringing jobs
previously outsourced back under the roof of the company to be performed
internally. backsourcing has been increasingly discussed as companies decide
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to cease outsourcing operations, whether because of the issues outsourcing
agreements encounter, because of pressure to bring jobs back to their home
country, or simply because it has stopped being efficient to outsource a given task
outside of a company.
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●● Exit plan: The plan developed for coping with the end of the contract — whether
because the term is up or because termination clauses have been invoked. It’s
best to assume you’ll be moving to a new service provider rather than simply
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renewing the contract. Think about what the organization will require to maintain
service levels and to make a smooth transition to the next provider.
●● Incentives: A reward provided to the service provider when service levels are
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exceeded or some other achievement is reached. These terms are laid out in the
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outsourcing contract.
●● Knowledge transfer: The task of bringing the service provider staff up to speed
on internal procedures and processes. Part of the process is establishing what
knowledge remains in-house and what should be transferred.
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●● Ownership: An aspect of the outsourcing contract’s Terms and Conditions.

Specifies when any change of title to products occurs. It also specifies intellectual
property rights. “Intellectual property” is intangible and involves some degree of
U
creative effort, such as software design. This clause protects both parties’ rights
to retain control over their intellectual property, including the rights to their use,
publication and copying.
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●● Risk management: Assessing risk and developing strategies to mitigate it as much

as possible, given business circumstances.
●● Selfsourcing: The internal development and support of IT systems by knowledge
workers with minimal contribution from IT specialists. Knowledge workers develop
m
and utilize their own IT systems, as opposed to contracting out the work in a process
known as outsourcing. Knowledge workers are workers who are dependent upon
information or who develop and utilize knowledge in the workplace.
)A
●● Value-added outsourcing: An aspect of strategic sourcing or multisource, in which

some functional area is turned over to a service provider. The presumption is that
the service provider can add value to the activity that wouldn’t be cost-effective if
provided by internal staff.
●● Warranties: An aspect of the outsourcing contract’s Terms and Conditions.
(c
Specifies what either party is required to warrant with respect to the agreement.
This can include: quality of services; personnel; fitness for purpose; performance

against specification; conformance to standards; warranty maintenance period and

Notes
e
service levels.
●● Transitional outsourcing: Outsourcing that involves the migration from one platform
in
or mode of operation to another. It consists of three phases: management of the
legacy system; transition to the new platform or system; and stabilization and
management of the new platform.
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●● Smartsourcing: Influence the ability of service providers to achieve a significant
increase in total innovative capacity. A set of strategies that focus on the
conception and implementation of an optimal enterprise business process model
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that integrates all essential business processes to produce maximum value at the
lowest possible cost for all stakeholders.
●● PMO: Project management office. The group that handles the day-to-day
management of offshore projects to ensure that processes are running smoothly.
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As part of the governance of an outsourcing engagement, the PMO may do
weekly check-ins, review quarterly operations, do biannual site visits, handle SLA
monitoring and document internal processes for further improvement.
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●● Outsourcing: The process of transferring the operation of business processes to
an external service provider, which then becomes accountable for those services.
●●
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Key performance indicator: Financial or non-financial metrics used to reflect the
critical success factors of an organization. KPIs should include delivery dates,
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quality measurements and financial measures. It is important to review the KPIs
on a regular basis and have mechanisms in place to resolve performance issues
when they’re not met.
●● Joint ventures: Also known as an alliance or partnership. A creation by two or
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more partners to leverage their unique capabilities to get to market and achieve
change in a short time. Often the venture requires vertical or industry expertise
and reach on the part of one partner and technical capabilities on the part of the
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other partner.
●● ITO: Information technology outsourcing. The transfer of internal non-core IT
processes, such as infrastructure, applications development and maintenance,
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end-user computing, help desk, network support and data center operations, to
an external service provider that improves these processes and administers these
functions to an agreed service standard and, typically, at a reduced cost.
●● Fixed pricing: A model of pricing in which a project is undertaken by the service
m
provider for a pre-agreed-upon price. One advantage is that it’s easy for the client
to budget for the project.
●● Efficiency sourcing deal: A sourcing relationship in which the focus is on efficiency
)A
of operations — primarily in the form of cost reduction or cost control.

1. Businesses must continue to improve in light of the changing market environment
and the advent of new ______________.
(c
a) Technology
b) Technique
c) Innovation
Notes
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d) Improvement
2. Management advisors use their ___________ to assist their clients in making the
in
planned adjustments more efficient.
a) Learning
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b) Skill
c) Knowledge
d) Technique
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3. ______________________ are frequently forced to adapt to a certain industry of their
choice as they advance in their careers, eventually becoming “experts” in the field.
a) Business Professional
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b) Management Professional
c) Law Professional
si
4. Managing mentors can work for _____________ and consultancy niches, strategic
companies and institutions, and after a few years of experience.
a) Big Firms
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ve
b) MNCs
c) Large Scale Industries
d) Traditional Firms
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5. Consultation is also beneficial for persons who enjoy ___________ because you will
frequently work in cities other than your hometown.
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a) Travelling
b) Management Process
c) Office Work
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d) Work from Home

6. The ___________ is to decide what your customers really want when they buy your
product or book your services.
m
a) Second Step
b) First Step
c) Third Step
)A
d) Final Step
7. ____________ are basically the total amount of material used in the production of
goods or the delivery of services.
(c
a) Cost
b) Price

c) Expense
Notes
e
d) MRP
8. Market fluctuations due to demand and supply strength or competitive strength or
in
prices of related items often affect ____________.
a) Product Price
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b) Marginal Price
c) Cost Price
d) All of the above
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9- Often, well-known brand name designers place __________ based on consumer
perceptions of how a product affects their image.
a) Low Price
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b) Mid-Price
c) Same Price
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d) High Price
10- ____________ have a lot to share and will have a network of other mentors with
slightly different skills or knowledge that can be helpful to the client.
a) Adviser
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b) Consultant
c) Counselors
d) Lawyer
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11- ___________ find a balance between honoring the day-to-day operations of the
organization and maintaining the momentum of the project to keep pace with the
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deadlines.
a) Counselor
b) Adviser
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c) Lawyer
12- A dangerous and common mistake made by ________________ is that they do not
understand their clients’ business.
m
a) Professional
b) Inexperience
)A
c) Experience
d) All of the above
Exercise
(c
1. What is the role of Management Consultant? Explain.

2. What are the advantages of Being as a consultant?

3. How can a consultant helpful for his client?

Notes
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4. How many types of Consulting Fee?
5. Describe Value Based Pricing.
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6. Define Consultant-Client Relationship.
7. Explain Models of Consulting.
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8. Why Do Management Consultants Fail?
9. What types of challenges Face by the Global Consulting Industry?
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10. What are Ethical Standards?
Learning Activities
1. Prepare a presentation on how to consultant firm make profit though Consulting.
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2. Discuss how a mentor play an essential role in Small Firms growth.
3. Describe the life of a Consultant in PowerPoint Presentation.
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1. (a)
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3. (b)
4. (d)
5. (a)
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6. (b)
7. (c)
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8. (a)
9. (d)
10. (c)
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11. (b)
12. (a)

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1. Zalewski Jacqueline M: Working Lives and in-House Outsourcing, Taylor &

Francis Ltd, First Edition.
2. Vergil Fields: Outsourcing: Principles and Practices, Larsen and Keller
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Education, First Edition.

3. Tunstall T.: Outsourcing and Management, Palgrave Macmillan, First Edition.
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Module - IV: Cross Cultural Management

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Systems and Processes
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●● Concept of Organisational Culture
●● Types of Organisational Culture
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●● Strength of Organisational Culture
●● Functions of Organisational Culture
●● Importance of Culture to the Organisation
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●● How Organisational Culture Impacts Performance and Satisfaction
●● Edgar Schein’s Model of Organisational Culture
●● Hofstede Model of Organisational Culture
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●● Handy’s Types of Organisational Culture
●● How are Cultures Created and Maintained?
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Cross Cultural Issues and Perspectives
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Introduction
Cross-cultural management is a study of management in a multicultural setting.
It includes a look at how community culture affects management and administrative
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behaviour, as well as a look at the cultural tendencies of individual managers and

employees. Their particular ideals, understanding, and reactions to their cultural status
and knowledge are excellent on a personal level. Multicultural science, sociology, and
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anthropology, as well as comprehensive management and ethical standards for the

organisation and associated areas of international human resource management, are
among the fields that have contributed. The cultural environment in which it will be
administered, the varied duties of the international administrator, the impact of culture
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on organisational structure and processes, and international and cultural governance

are all subjects that come up frequently.
Managing cross-cultural challenges in the international business management

is akin to the “Hygiene” factor of the “Dual-factor Motivation” theory. In management
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of international business, embracing the cultural diversity of the country may or may
not bring success, but not doing so will surely increase the chances of stagnation or
failure. The world is becoming smaller day-by-day and therefore, the entrepreneurs &
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managers involved in the international businesses will have to become more sensitive
to the challenges emanating from the cultural and ethnic landscape of the countries
they work in. In the last 2 decades, cross-cultural challenges in the international
business management have become prominent as the companies have started
expanding across the territorial boundaries. Even leading management schools
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have started incorporating cross-cultural challenges as part of the curriculum of the

international business management.

Culture is the “acquired knowledge that people use to anticipate events and
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interpret experiences for generating acceptable social & professional behaviors. This
knowledge forms values, creates attitudes and influences behaviors”. Culture is learned
through experiences and shared by a large number of people in the society. Further,
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culture is transferred from one generation to another. In the figure below, it is specified
that what are the elements of the culture?
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4.1 Organizational Culture
Organizational culture reflects member views, internal performance, interactions
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with the outside world, and future expectations by incorporating organisational
expectations, experiences, philosophies, and values that shape member behaviour.
Culture is defined by shared attitudes, beliefs, customs, and written and unwritten
standards that have evolved over time and are accepted as valid (Business Dictionary).
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The concept, values, principles, systems, symbols, language, ideas, beliefs, and
organisationalpractises are all part of culture (Inaliti, 2004).
To put it another way, organisational culture is “how things are done here” (Deal &
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Kennedy, 2000).
While the preceding definitions of culture focus on the function of construction in

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the workplace, other definitions place a greater emphasis on employee behaviour and
how corporate culture influences employee behaviour.
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Organizational culture, according to this definition, is a set of common assumptions
that guide what happens in organisations by defining appropriate behaviour in various
settings (Ravasi& Schultz, 2006). The way people and groups interact with consumers
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and stakeholders is influenced by organisational culture. Additionally, organisational

culture can have an impact on how employees identify with their company (Schrodt,
2002).
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Other phrases used interchangeably in the business world are “company culture,”
“work culture,” and “business culture.”
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The values, expectations, and processes that guide and inform the activities of all
team members are referred to as organisational culture. Consider it a set of attributes
that define your business. An active corporate culture produces attributes that can
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prohibit even the most successful businesses from performing well, whereas an
inactive corporate culture produces qualities that can prevent even the most successful
organisations from performing well.

Although both can assist explain the culture, do not mix it with the organization’s
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policies or statement of goal. Not news releases or policy statements, but consistent
and honest behaviour creates culture. If you observe how the. You can see how the
CEO responds to a crisis, how the team adapts to the needs of new customers, or how
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the management corrects an employee who makes a mistake.
The Denison Organizational Culture Model
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Figure: Denison Organisational Culture Model
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The Denison Model’s four qualities, Mission, Adaptability, Involvement, and

Consistency, measure the behaviours that are fueled by the beliefs and assumptions
that make up an organization’s culture. These characteristics are color-coded to assist
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you in answering critical questions regarding your company’s culture.
Business leaders play a crucial role in establishing and maintaining a positive

workplace culture. The relationship between leadership and culture, on the other hand,
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is one-sided. While leaders are the primary architects of culture, the type of leadership
that is conceivable is influenced by the existing culture (Schein, 2010).
Leaders must recognise their responsibility in protecting or changing the culture of

their organisations. A highly ingrained and deeply rooted culture represents how individuals
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should act and can aid employees in achieving their objectives. When an employee
believes that the leader is aiding him or her in achieving the goal, this code of conduct
promotes optimum job satisfaction (Tsai, 2011). Organizational culture, leadership, and job
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happiness, according to this viewpoint, are all intricately interwoven. Leaders can build, and
be created or influenced, by the many different cultures in the workplace.
The Importance of Culture in Your Company

Every facet of your business, from timing and voice to contract terms and
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employee perks, is influenced by organisational culture. The more work ethic your
employees have, the more comfortable, supported, and respected they will feel.

Companies that place a significant emphasis on culture can weather challenging times
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and changes in the business environment.
When it comes to hiring people and outperforming competitors, culture is a major
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advantage. About half of employees will leave their position in order to find a profitable
job in a better-organized firm, according to 77 percent of employees who evaluate
business culture before applying.
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Communication is the exchange of information, and culture in communication refers to
the impact of communicators’ cultural features on this process. A culture is a group of people’s
collection of common qualities, and it consists of accessing present state, establishing vision,
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removing roadblocks, establishing practises, communicating, and reinforcing it.
Consider the companies Microsoft and Salesforce. Both technology-based

organisations are world-class players with well-known brands, thanks in part to their
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emphasis on culture. Satya Nadella, who took over as CEO of Microsoft in 2014, has
replaced Steve Balmer, who was known for his antagonism. He began a programme
to change the company’s culture, which resulted in increased competitiveness. of
lifelong learning Employees were urged to develop themselves rather than brag.
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Microsoft’s stock is now valued at $1 trillion, making it one of the world’s most valuable
corporations, alongside Apple and Amazon.
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Salesforce is a company that prioritises business culture and has seen great
success over its history. Marc Benioff, the co-founder, chairman and co-CEO of
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Salesforce, an enterprise cloud computing company. has instilled philanthropic values
that have driven the company for the previous two decades. All new Salesforce workers
volunteer for a portion of their first day, earning 56 hours of compensated volunteer time
every year. Salesforce has become one of the best places to work in the United States,
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according to Fortune, and it has done so without putting a profit on the line: To date, the
stock price of Salesforce has climbed by more than 26% year over year.
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Attributes of a Large Organizational Culture

Each organization’s culture is distinct, and it is critical to preserve what makes
yours unique. However, the most successful businesses’ traditions represent specific
qualities that you must cultivate.
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When a company’s goals and its employees’ motivations all point in the same
direction, it is said to be aligned. Various companies strive to maintain constant
alignment with their vision, mission, and objectives.
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Public praise, a thank-you card, or a promotion are all examples of appreciation. A

culture of appreciation is one in which all team members frequently acknowledge and
thank others for their contributions.
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In any organisation, trust is crucial. Team members can express themselves and
rely on others to be more assertive when trying something new in a culture of trust.
Organizational Culture
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When it comes to making decisions, analysing findings, and forming partnerships,

all parties need to be honest with one other. This cultural component emphasises
honesty and transparency.

Organizations that innovate get more out of their available technologies, resources,
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and markets. Using creative thinking in all elements of your business, including your
cultural practises, is what creative culture entails.
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Employees with mental security receive the assistance they need to put
themselves in danger and respond honestly. Remember that mental security begins
at the group level, not the individual level, thus managers must take the lead in
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establishing a safe workplace in which everyone feels at ease contributing.
Let us look at how to create a good culture in your company now that you know
what it looks like.
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8 Steps to Creating an Effective Organization Culture
Building a positive organisational culture necessitates the creation and
implementation of a strategy with measurable objectives. The eight stages outlined
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below should serve as a road map for establishing a culture of continuity that will benefit
your entire firm in the long run.
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1. Excel with recognition
Recognizing all team members’ efforts has a far-reaching, beneficial impact on
corporate culture. Individuals tend to perceive themselves as part of the complete
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team when they see the success of others on the team. Even the busiest employees
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want to know what is going on at work, and they are wary if they are not informed - 76
percent of employees believe management gives them special attention. Experts agree
that when a company makes employee awareness a priority, key measures including
employee engagement, retention, and productivity rise.
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Respect should be something that happens on a regular basis, not just on special
occasions or anniversaries, if you want it to become part of your culture. Encourage
team members to place a greater emphasis on social acknowledgment than on
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monetary recognition. Companies that invest in public recognition have four times the
ability to improve stock prices, quadruple the possibilities of raising NPS points, and
double the chances of improving individual performance.
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Financial recognition is also critical.. Consider implementing a point-based

recognition system that allows employees to accumulate significant points balances
quickly. Instead of receiving a traditional cup or trophy for years of service, they will be
delighted to look forward to redeeming their points and earning a meaningful reward for
themselves.
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Recognition should be clearly related to company ideals and particular activities

in order to develop other cultural traits. Finally, because they are the cultural leaders
of your entire firm, leadership must take the lead in your attempts to be appreciated.
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Include a track record in your leadership training, and provide managers great advice
on how to see others and why it matters.
2. Enable Employee Voice

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It is critical to create a culture that informs response and supports employee voice,
as failing to do so can result in lost income and retrenched personnel.

First, you must collect feedback using the appropriate listening tools, such as pulse
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interviews and workplace chatbots, that allow employees to easily convey how they
are feeling at the time. After that, examine the data to identify what works and what
doesn’t. This not only improves your culture, but it also has other advantages, such
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as increased employee happiness and revenues. According to a Clutch survey, 68
percent of employees who received regular feedback felt fulfilled in their professions,
and Gallup discovered that firms with managers who received feedback on their own
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strengths made an 8.9% profit.
Be sure to pay attention to the intricacies of input that may reveal cultural issues
in addition to gathering feedback using the methods indicated above. Pay attention
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to employees’ body language, for example, as it can reveal a lot even when they are
unwilling to disclose. Video conferences can assist maintain this silent word channel
open when working with a remote team. Managers should use all of their meetings with
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employees as opportunities to meet with them, listen to their comments, and act as a
trusted mentor.
3. Make Your Leaders Cultural Advocates
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The success of your company’s efforts to create a positive workplace culture is
in the hands of team leaders and managers. For example, if your workplace culture
establishes specific norms and your leadership team fails to set an example - or even
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shows the opposite conduct - the effort is undermined. Members of the team will detect
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a misalignment between proclaimed values and actual behaviour. They may even begin
to replicate the inappropriate behaviour because they believe the authorities have
rewarded it.
Your leadership team may assist in the development of the culture you require by
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making it a priority in all elements of their work. They must speak freely and honestly
about the organization’s culture and principles, and they must be willing to incorporate
feedback from employees in their attempts to represent the culture. While 76 percent of
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executives say their company’s value system is well-publicized, only 31% of employees
concur. Employees will emulate your culture if they witness leaders living it.
4. Live By Your Company Standards

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The core of your company’s culture is its values. While making a machine
statement is a wonderful start, living up to corporate standards entails striving for
excellence in all aspects of your company. Support policies, HR regulations, benefit
schemes, and even out-of-office outreach activities are all considered optional. Your
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employees, coworkers, and customers will notice and appreciate how your company
incorporates its values into its daily operations. Employees can also be identified by
acts that demonstrate your values, demonstrating that they are more than just words
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and encouraging employees to develop a culture that reflects the values you wish to
see.
5. Create Communication Between Team Members

Establishing strong ties between team members is necessary for creating
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a workplace culture that can withstand hardship, but with extended and intense
communication, forming those links can be difficult. Even if you work remotely,

encouraging teamwork and participating in team-building events are two great methods
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to motivate your team and improve communication.
Identify and foster similar personal interests among group members, particularly
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among those from various generations who may struggle to bond. This can lead to
new levels of empathy and understanding, which are crucial in the development of
communication, innovation, and conflict resolution.
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6. Focus on learning and development
Apprentices and firms that invest in employee development help to promote
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a positive workplace culture. Steps to teach, train, and assign new tasks to staff are
excellent methods to demonstrate your team that you care about their performance.
A learning culture has a significant impact on business. According to Find Cours’

most recent benchmark study, organisations with the most active employees had a
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1.5-fold chance of prioritising soft skill development. It was also shown that businesses
that increased their sales in the previous financial year had twice the chance to adopt
new learning technologies and three times the chance to expand their learning and
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development spending.
7. Keep The Tradition In Mind From Day One

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Internal conflicts may emerge if an employee’s viewpoint differs from the
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company’s culture. During the onboarding process and afterwards, organisations
should recognise and reinforce the culture. Values should be communicated and
practises and processes should be taught.
Ask questions about cultural equity during hiring, such as what matters to
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the interviewer and why he or she wants to work for your company. However, these
considerations should not be the only factor in deciding whether or not to run for office,
as the major parties maintain an open mind to a range of viewpoints that can help keep
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their culture fresh.
During the onboarding process, you should also prioritise creating public relations
so that workers have the information they need to understand your company’s culture
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and values. This relationship will remain for the duration of your employment with the
organisation, ensuring that cultural norms are consistently reinforced..
8. Customize The Work Experience

Because your employees want personal information as modern customers, you
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must focus on strategies to assist each team member in identifying your culture. Pulse
surveys and job mapping are useful tools for determining how essential your people
are and what a strong company culture looks like. Take what you have learned and
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tailor your actions to make your team’s experience unique. When you start treating your
employees the same way you treat your clients, you will undoubtedly create a culture
that supports individual members of your team.
Improving Culture Has Been Simplified

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Even if your organization’s culture develops without your input, it may not be
healthy or productive without it. As you build your corporate culture, keep these three

basic methods in mind: communication, acknowledgment, and action. You may improve
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communication with your staff, start developing a culture of recognition, and guarantee
that all members of your team practise your culture in action by following the steps in
this guide.
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With Achievers Recognize and Achievers Listen, your firm may begin implementing
all three tactics. Your company can utilise Achievers Recognise to provide a pleasant
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and straightforward user experience for employees by using point-based and
community-based recognition. Staff may provide you useful feedback by logging in and
doing heart questionnaires with Achievers Listen, so you can understand what aspects
of your culture are working and what needs to be improved.
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Figure: Organisational Culture

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4.1.1 Concept of Organizational Culture

One of the major issues in education and education research, organisational
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theory, and management practise is organisational culture. There are good reasons for
this: the cultural aspect of an organization’s life is vital to all parts of its operations. Even
in businesses where cultural concerns receive little attention, ideas, interpretations, and
shared cultural beliefs (shared) nature guide what individuals in the firm think, feel, and
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do. The fact that managers believe culture is too soft or complex to be concerned with,
or that no unique business culture exists, does not negate the importance of culture. In
a sense, the organization’s top members remain “in charge of the culture,” highlighting
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what is significant and what is not, and defining how the business world should be
understood. Organizations that take ‘number management’ seriously may cultivate
and propagate a culture of praising performance indicators and the behaviours that
surround them.
Business culture is gaining traction in many modern firms, and it is being

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given more attention. The key concern is that “culture leaders want to intervene and
regulate the presence so that there is no divergence between individual aspirations

and the goals of the organisation in which they work” (Gray, 2005: 68). Even when top
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management recognises the value of culture, there is frequently a lack of a deeper
grasp of how people companies operate culturally. High hopes for attaining cultural
control are rarely realised. Culture is both vital and complex, as well as difficult to
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comprehend and ‘use’ thoughtfully. Managers and companies have different levels of
awareness and interest in culture. It is not always easy to locate someone with a high
level of cultural understanding who can guide your actions. Many managers’ writing and
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thinking are influenced by their need for rapid remedies.
Instead, it is a well-defined framework and language in which the concepts are

contextual - culture, definition, symbol - plans are required for supervisors, managers,
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and others to understand and assign titles to organisational performance. It is easy
to exaggerate the significance of company culture in practise, growth, and success.
The company custom was highlighted in the early 1980s by literature on the subject
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of the finest firms in the United States (Peters and Waterman, 1982) and the secrets
behind the most successful Japanese companies at the time (e.g. Ouchi, 1981). These
publications, together with journalistic works, have created a widespread view that
corporate culture is the most essential factor influencing business performance.
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The difficulties that numerous businesses have raised have shattered this belief.
Some years after the publication of their book, Peter and Waterman were ‘leading’ as
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to a fall in the performance of Japanese companies in recent years. During the first
half of the 1990s, other ‘business’ business recipes partially replaced traditional culture
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with an emphasis on ‘people.’ as the latest fashion for companies and executives.
Others Beyond the immediate and isolated portion of organisational ownership, there
is a cultural interest (Albert and Whetten, 1985; Ashforth et al., 2010). However, there
is a strong case to be made for a link between corporate culture and performance.
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Managers frequently highlight cultural accomplishments, such as rapid progress.

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‘Companies prosper or lose based on the traditions they establish,’ says the
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CEO of CompUSA, the largest US retailer of personal computers (Puffer, 1999: 34).
Many well-known management authors and academics agree. Speaking about
values is fashionable in business circles, according to Kanter (2008: 44), but “leading
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organisations, we have learned, standards are the essential consideration.” Traditional
sources of success, such as product and process technology, access to regulated
markets, and a level economy, according to Pfeffer (1994: 6), are less important today
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than ever before, ‘leaving the organization’s culture and skills, derived from the way
people are treated, as very important’.
Knowledge is thought to be a vital aspect in attaining long-term profitability and
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corporate success, and information difficulties are inextricably tied to company culture
(Davenport and Prusak, 1998). Alvesson and Kärreman, 2001; Jonsson and Foss,
2011; McDermott, 1999) argue that knowledge management is partly a question
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of cultural management. The way corporations and other organisations work, from
strategic transformation to day-to-day leadership, management and staff relationships
with customers, and the way information is structured, shared, kept, and used, culture is
crucial.
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My primary objective, though, is not to preach culture as a necessary component
of business intelligence, growth, and success. It is difficult to establish explicit and
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causal relationships between culture and other factors. Attempting to do so readily
implies a reductionist view of a culture, significantly limiting its theoretical potential
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and value. Alternatively, it is in my best interest to supply new recipes for managing
culture successfully. Mine, because understanding an organization’s life in all of its
splendour and diversity is vital. The critical importance of sharing The essence of any
cultural concept is the description of any connected action. As Smircich (1985) points
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out, organisations exist as programmes for exchanging definitions at various levels. For
the desired work to be completed, the concept of common sense, which is taken for
granted, as well as beliefs and explanations, are required. There is no need for future
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ambiguity or in-depth definition interpretation and re-interpretation as a result of this

engagement. Because the power of cultural thinking in an organisation is enhanced by
the presence of organisational staff - managers and other individuals who contribute
to the company’s existence - it aids in the decision-making process. Individuals can
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be encouraged to accomplish the “correct” things in terms of efficiency by ideas and

thinking, but they can also be encouraged to generate fresh independent views
about governance, legends, fashion, and a variety of other topics through ideas and
thinking. To encourage in-depth contemplation on a diverse range of widely accessible
components of values, beliefs, and considerations in industries, occupations and
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organisations, we must also learn about cultures themselves.

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Figure: The Organizational Culture Triangle
The above figure talks about the organizational culture triangle, explaining in detail
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about the outward orientation, inward orientation, inward-outward orientation.
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Organizational culture studies have been done since the 1940s, but they are
rare and dissolved until the 1980s’ ‘prosperity of corporate culture.’ The organization’s
cultural interest from the workforce, in particular, has been low during the last ten
years. It is, to some extent, tied to industry among workers. It appears to have a larger
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interest in new, more modern, and more demanding firms than in older, more balanced
businesses. Many information technology (IT) firms, for example, have been recognised
for their contributions to the development and preservation of corporate cultures.
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The goal of recognising, producing, sharing, and utilising knowledge in a better

organised manner usually results in a greater interest in the organization’s culture.
However, in times of transition, such as during mergers and acquisitions, culture is
frequently sought after, even in firms where cultural management is not a top concern.
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To make sense of a surge in interest, it appears logical to identify a set of

characteristics or paths of development, notably in the 1980s. The fertile environment
generated by Japanese firms’ growth and the related problems contributed to an
inflated image of business culture as a global tool of rivalry and ‘beauty.’ At the time,
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the US and other Western economies were suffering, thanks in part to the purposeful
exploitation of pop writers and consultants. However, there is a combination of the
most crucial factors as well as long-term reasons for the continued fascination with
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organisational culture.
4.1.2 Types of Organizational Culture

An organization’s culture is formed by its processes, beliefs, policies, and values.
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The way employees interact with each other and with persons outside the organisation
is determined by organisational culture.

Let’s understand the different types of organizational culture:

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Normative Culture: Organizational norms and processes are determined in
advance in that culture, and rules and regulations are established in accordance with
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existing guidelines. Employees are responsible and follow the company’s policies to the
letter. No employee can dare to break the rules and stick to the ones that have already
been established.
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Pragmatic Culture:
Clients and external organisations are prioritised in the pragmatic culture. In a
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pragmatic culture, customer satisfaction is the most important factor. Customers are
treated as Gods by such businesses, and they are not bound by any rules. Every
employee works hard to ensure that his or her customers are satisfied so that they can
expect additional business from them.
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Academy Culture: Talented people are hired by organisations that have a school
culture. Roles and responsibilities are assigned based on the employees’ backgrounds,
qualifications, and work experience. Organizations that adhere to school culture place
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a greater emphasis on retraining existing employees. They make certain that a variety
of in-service training programmes are created to improve employee skills. Managers
make genuine attempts to improve employees’ knowledge in order to enhance their
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professional abilities. The cultural school’s staff stays with the organisation for a long
period and develops within it. That ceremony is carried out in educational institutions,
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universities, and hospitals.
Baseball Team Culture: The baseball team’s culture prioritises the staff as the
most significant component of the company. Employees are an organization’s true
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assets, and they play a critical part in its success. People in such a culture are more
sophisticated and less concerned about their company. This is a tradition followed by
advertising agencies, event management organisations, and financial institutions.
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Team Culture:
Club culture organisations place a greater emphasis on the people they hire.
People are hired based on their academic credentials and hobbies. Everyone
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performs their finest work. Employees with the potential to be high-level are promoted
accordingly, and analysis is a regular aspect of the culture.
Fortress Culture: Employees in some firms are unsure about their jobs and future
prospects. These organisations are modelled like fortifications. If the company does not
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function well, employees are fired. When a company fails, it is the people that suffer the
most. The stock market follows a similar pattern.
Tough Guy Culture: Answers are important in the culture of a strong young man.
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Employees’ work is closely watched and their performance is evaluated on a regular

basis. Team leaders are assigned to answer queries and provide guidance to team
members as needed. Employees are employed on a regular basis in such a culture.
Bet your company Culture: Organizations that follow your company’s betting
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culture make decisions that involve a large amount of risk and the consequences are
also unexpected. The principles and policies of such an organization are designed to
address critical issues and take time to achieve results.
Process Culture: Employees in such a culture, as the term implies, follow the
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organization’s policies and procedures. Such firms are unconcerned about feedback
and performance evaluations. Employees follow all applicable rules and regulations, as
well as workplace policies. This is a tradition that all government entities observe.
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Figure: Types Of Organisational Culture
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Four Types of Organizational Culture
The most well-known types of organisational culture are classified. Competitive
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Standards Framework The University of Michigan’s Kim Cameron and Robert Quinn
recognised four distinct forms of organisational culture.
With one exception, each firm has its own mix of these four forms of organisational
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culture. The larger the company, the more likely it is that it will have multiple cultures.
This could be good for the company, but it could also be bad or difficult as you strive to
build a culture of belonging to a scattered organisation in the region and throughout the
world.
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The four traditions of the organization Cameron and Quinn identified are:
a. Adhocracy Culture - dynamic, business Create Culture.

b. Family culture - a culture that is people-centered, friendly and co-operative.
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c. A culture of governance - a culture of governance that is systematic, systematic.

d. Market culture - results-based, competitive results Competitive Culture.
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Adhocracy Culture
The phrases ‘ad hoc’ and ‘bureaucracy’ are combined to form Adhocracy. As
a result, firms with a governance culture are more adaptable and less bound by
bureaucratic procedures and policies. Speed is typically considerably faster when new
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ideas and continual development are emphasised, and the current situation, while it
may work, will be challenged.

An adhocratic culture drives many start-ups and technological organisations, such

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as Apple, Google, and Facebook, since it allows them to develop. This is critical for their
product’s success as well as the market’s ever-changing and highly competitive nature.
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However, adhocratic culture will not be possible for the entire organisation when
beginners become outstanding professionals, as they have in these firms. Certain jobs
or business divisions will require greater structure, and slowing down may be beneficial
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to the corporation in certain areas, such as ethics and compliance. As a result,
individual units may be assigned an adhocracy culture to ensure that the organisation
remains clever and competitive in the marketplace.
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Developing A Culture Of Adhocracy
It may be difficult to create a true adhocracy culture that includes a high-risk
business plan, depending on your industry. Employees can exchange fantastic ideas
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that can assist drive performance by using chat strategies and sessions. Prizes that are
well-designed inspire teams to think beyond the box as well.
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Family Tradition
‘Clan’ refers to a group of related families or a group of people who have similar
interests. Small or family-owned enterprises with inherently incompatible race cultures are
prevalent. Employees, regardless of their position or circumstances, are kept updated.
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Tom’s of Maine, Redmond (Real Salt), and Chobani, for example, are tribal
practises that prioritise their employees.
This practise strives to foster group collaboration by ensuring that all employees
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are treated equally. They are at ease giving honest and genuine responses. As skills
and values are passed down from generation to generation, there may be a larger
emphasis on employment counselling and training in addition to teamwork. This
)A
approach frequently involves a large number of employees, resulting in exceptional

customer service. However, the disadvantage of this culture is that it is difficult to
sustain as the company grows. As the company grows, performance may become less
focused and flexible.
(c
Promoting Family Culture

To cultivate family culture in your company, your first step is to turn to your
employees. Communication is essential to a successful team culture, so let your team
know you are open to receiving feedback. Find out what they value, what they would
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like to see change, what ideas they have to help develop the company.
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The above figure demonstrates about the culture creation and culture maintenance
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, its values, preference, demands, leadership, assumptions, selection attrition, rewards
systems and more.
The culture of domination:

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Hierarchy Culture is a common business culture in the US. It describes the

structure, procedures, and standards of authority. Employees in this culture know
exactly where they fit into the set of rules - who is responsible for them, who they report
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to, and what the rules say. It is compulsory in this culture to do the right thing.
Tasks are clearly defined, and tasks are often simplified. Financial institutions,
health insurance organizations, and oil and gas companies all have a culture of
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governance. This type of company culture enables them to manage risk better, be
more stable and efficient. However, it may prevent them from innovating, speeding up,
and responding to rapid changes in their markets and industries. They may lack the
necessary flexibility in today’s and future markets.
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Culture of governance
Cultural governance is governance of culture. It includes cultural policy made by
governments but extends also to cultural influence exerted by non-state actors and to
)A
policies which influence culture indirectly.
Promoting a culture of governance:

The first step in establishing a culture of succession is to press your processes
(c
button. If the command string has some spaces, fill them out. Consider all teams and
the department to ensure that they have clear long-term and short-term goals.

Customs on the market:

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Market culture
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Market culture is all about profit margins and pre-competition living. It is aimed
at results with a strong external focus to ensure customer satisfaction. Examples of
companies driven by market culture are Tesla, Amazon, and General Electric.
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Innovation is critical to the success of these organizations, so there is an ongoing need
to be more innovative and find new or improved products on the market ahead of their
competitors. While this type of culture can protect the long life of the business, employees
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are often exhausted due to high expectations and an ongoing need for productivity. There
may also be less emphasis on work experience or employee satisfaction.
Promoting market culture:
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Market culture is tied to the company line. Therefore, first consider each position
within your organization. Calculate the ROI of all the roles and provide sound
production benchmarks. Consider rewarding top players to promote the same career.
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Other forms of organizational culture:
Cultures can be divided and defined in granular ways. The reason is that each
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organization is shaped differently by its own vision, mission and leadership. Groysberg,
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Lee, Price, and Cheng pointed to the following organizational traditions in their research
published in the Harvard Business Review (2018).
●● Culture of Purpose - Company leaders and employees share common sense

standards for changing the world and ensuring that global resources are allocated
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to those living on the fringes.

●● Organizational culture - Focuses on research, innovation, innovation, learning and
development.
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●● Organizational culture - Fun and a sense of humor are what define the culture.
●● Organizational culture of outcomes - Identified by meeting targets, achieving
goals, and being driven to work.
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●● Corporate culture - Defined by strong leadership and confident employees. It’s a

competitive workplace where employees strive to be the best in their field.
●● Organizational safety culture - It can avoid risks when leaders are successful in
promoting security by planning and taking a listed or minimized risk and doing
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what has worked in the past.

●● Order organization organization - It is usually defined by rules, procedures and
)A
where employees have a clearly defined role.

●● A culture of caring organization - It will be characterized by a place that cares for
its employees and where there can be strong and honest interaction.
4.1.3 Strength of Organizational Culture

(c
Organizational culture contains values, beliefs, attitudes, and behaviors that

employees share and apply on a daily basis in their work.

Culture determines how employees define where they work, how they understand
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the business, and how they see themselves as part of the organization. Culture is
also the driver of decisions, actions, and ultimately the overall functioning of the
organization.
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So, what role do employees have in defining the culture of your company?
●● Good and bad from employees
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●● Some of the good things we hear are:
●● This is a fun place to work.
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●● We are directed to the results.
●● Everyone here cares.
●● This is a great place to learn and grow.
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●● In contrast, here are a few negative comments we hear from employees in other
organizations:
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●● You cannot speak without fear of punishment.
●● I do not feel honest to do my job.
●● We work in the tails.
●●
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I do not see how my work contributes to the overall goals of the company.
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The above figure illustrates about cultural strength, functions of strong cultures
and organizational outcomes.
Cultures are created by nature or by deliberate planning and consistency and

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action. Leading organizations understand their culture and take careful steps to manage
and promote it effectively.
Strong Traditions:
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Culture is considered strong when there is a combination of beliefs, values,

customs, and practices. Strong cultures often incorporate their beliefs, rules of conduct,
customs, and practices into public demonstrations so that employees can apply these
cultural aspects in decision-making throughout the organization. Strong traditions
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include:
A strong one leader who articulates beliefs, ethics, traditions, and practices that are
in line with customer needs, strategic direction, and competitive situations.
The organization’s commitment to running its business as it is guided by culture.

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The organization’s unwavering commitment to supporting its key stakeholders -
business partners, suppliers, employees, customers, and shareholders (if any) - and by
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expanding its community, community, and environment.
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Features of a Strong Culture:
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Strong cultures lend themselves better to high performance. High-performance
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cultures are prone to outcomes and tend to establish an environment where there is
constructive pressure to act. In a highly efficient culture, there are a few healthy factors
that improve organizational performance, such as:
1. Tools for Strengthening Culture: This includes things like ceremonies, symbols,
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language, rules of conduct, and policies. Strong cultures use these tools to produce
extraordinary performance from ordinary people. Strong traditions use ceremonies
and symbols to emphasize what the company values. Events and symbols help to
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recognize and celebrate efficient employees and help to build emotional bonds
between all employees. The language used in the slogans and policies helps to reflect
the company’s core values and provides shared understanding among employees.
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2. People’s Trends: Strong cultural organizations show their concern for their employees
in a variety of ways. These include:
Treat employees with dignity and respect
Provide employees with sufficient independence to succeed and participate

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Hold managers at all levels accountable for the growth and development of the
people they report to
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Using the full range of rewards and results to strengthen high performance
behavior
Set clear performance standards for all employees
3. Outcomes-based: Effective cultures invest a lot of time and resources to ensure

(c
that employees who perform well and meet performance standards are identified
and rewarded. Controls are put in place to collect, analyze, and interpret employee
performance data. Success rates are used to select and reward the best employees.

4. Emphasis on Success and Virtue: Highly efficient cultures create an environment in

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which there is constructive pressure to be the best. Managers pursue processes and
policies, and invest in resources needed to motivate people to do their best.
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Figure: Strenghtening Organisational Culture
Emotional ties can have a substantial impact on organisational success. When the
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Corporate Executive Board surveyed 50,000 employees at 59 worldwide organisations
in 2004, they discovered that emotional elements were four times more successful than
rational considerations in engaging employees. Emotional elements have an impact on
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employee and consumer engagement, according to research conducted by the Gallup
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Organization. Gallup, Hewitt Associates, and other studies have found a correlation
between employee engagement and favourable business outcomes like productivity,
profitability, customer happiness, and staff retention. Unfortunately, current research
reveals that over three out of every four American workers, or more than 101 million
people, are disengaged at work. Given this data, it would be reasonable to take a firm
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stance on the soft concerns that have previously been disregarded.
Leaders are seeing the value of cultivating a culture that values people and
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brings together leaders, employees, and customers. We define the main aspects in a
culture that encourage emotional connection in our book, Fired Up or Burned Out. The
underlying aspect of human value is the subject of this article.
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4.1.4 Functions of Organizational Culture

Organizational culture is a set of indicators that gradually develop in production
and management, agreed upon and followed by all employees, as well as elements
of the Organization’s mission, vision, purpose, spirit, values and business philosophy,
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and ideas in production and production. management practices, management system,

behavior of employees with an external image. In short, organizational culture is
a cultural phenomenon among businesses, its appearance is inseparable from
)A
the development of modern business theory and operation, from a management

perspective, organizational culture is an application management tool to achieve
administrative objectives, hence, organizational culture. it is not only a cultural
phenomenon, but also has a meaning as a management tool.
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The above figure explains in detail about the four functions of organizational
culture, like:
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●● Collective commitment facilitates commitment to an organizational culture.
●● Social systems stability promotes social system stability to an organizational culture.
●● Sense making device shapes behaviour by helping employees, and make sense
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of their surroundings.
●● Organizational identity gives members an organizational identity.
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First, organizational culture is guided by a sense of business management,
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cultural patterns of pursuit and accomplishment of specific business objectives,
in a sense, organizational culture is a business management culture. Second,
organizational culture is a culture with a common purpose, group awareness, and
relevant organizations and institutions. Thirdly, the organization’s culture is “economic
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culture”. It is gradually built into the production process and management functions of
business and corporate employees, leaving the business activities of the business, it is
impossible to have a corporate culture, let alone good management.
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Organizational Cultural Activities

Organizational culture is an immortal pillar of organizational development, cultural
development also has a strong unifying effect, not only bringing spirit to the staff,
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but also promoting a sense of pride and responsibility, developing a team spirit of
organizational work. , thus, to improve the overall efficiency of the business.
Steady role: Organizational culture can play a guiding role in directing value and
ethics to businesses and their individual members. This direction differs from traditional
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management that focuses on strong teaching or system, emphasizing directing the

conduct of business members from forming an organizational culture, making people
accept the same values in culture invisibly.
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Motivational work: Positive ideas and a code of conduct can create a strong sense
of purpose and the ability to drive continuously. A good organizational culture is a self-
motivating ruler for employees, a ruler that can compare their behavior, identify gaps,
can create the power to improve. At the same time, businesses with shared values,
beliefs, and values that can become a powerful spiritual pillar can produce a sense of
(c
identity, belonging, and security, to the extent that they play a role in encouraging one
another. .

Collaborative work: The strength of a group depends on the unity of the

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organization, the integration of the internal structure of the organization and the ability
to control. Organizational integration, co-ordination and control can be made “strong
communication” as a discipline system, but not in a more efficient way with “internal
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commitment” such as shared values, beliefs, and codes of conduct.
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Responsible work: A good organizational culture has a binding effect on
the thinking and behavior of each employee. After a long period of formation of
organizational culture, written or conference rules and regulations are formulated,
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codes of conduct and codes of conduct for the conduct of employees, at this rate, reach
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the control of the thinking and behavior of employees.
Take McDonald’s as an example, Quality, Service, Cleanliness, Value, McDonald’s,

formed from top to bottom throughout the company to have a high business vision,
strong and promising, the idea of promoting health and directing employees continues
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to work. progress. McDonald’s focuses on prudent management, cultivating staff

awareness for “information that determines success or failure”, improving good
corporate governance, building a strong team with good information, using good
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information to control staff behavior, and good organizational boundaries. the culture in
the system can be fully displayed. McDonalds also developed their sense of belonging
through the use of uniforms; strengthening staff awareness; taking care of each other,
helping each other; promoting flexible management to encourage employees to
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succeed in the work process in order to build a flexible internal cohesive partnership
between employees. Scientific management is considered to improve the social feeling
of the working class.
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4.1.5 Importance of Culture to the Organization:

A common platform where people work together for profit and livelihood is called
an organization. The place where people see the dream of making it bigger is called an
)A
organization. Every organization has its own unique style of work that often contributes
to its culture. The beliefs, ideas, values and values of an organization form its own
culture. Workplace culture governs the way employees conduct themselves and others
outside the organization.
(c
Culture determines how employees communicate in their work. A healthy culture

encourages employees to remain motivated and loyal to management.

Workplace culture also goes a long way in promoting healthy competition in the
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workplace. Employees try their best to do better than their colleagues and gain the
recognition and appreciation of management. It is the workplace culture that motivates
employees to work.
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Every organization should have guidelines for employees to work effectively. The
organizational culture represents the predefined policies that guide employees and
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give them a sense of direction in the workplace. Everyone is clear about their roles and
responsibilities in the organization and knows how to do the tasks ahead of time.
No two organizations can have the same work ethic. It is the organization’s culture
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that makes it unique. Work culture goes a long way in creating an organizational
brand image. Work culture gives ownership to the organization. In other words, the
organization is known for its culture.
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Corporate culture brings all employees together in one place. Employees should
be treated equally and no one should feel neglected or neglected in the workplace. It is
important for employees to properly organize the culture of the organization in order to
deliver their quality better.
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A work culture includes employees from a variety of backgrounds, families and with
different mental and emotional states. Culture gives employees a sense of unity in the
workplace.
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8 reasons why organizational culture is important
Here are seven reasons why organizational culture is important:
●● Increased employee engagement

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●● Decreased income
●● Strong brand identity
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●● High productivity
●● The power of conversion
●● Top players
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●● Active ride
●● A healthy group environment
●● Increased employee engagement
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The work environment that governs the organization’s culture is driven by purpose
and clear expectations. This motivates and motivates employees to become more
involved in their work activities and interactions with others. It also leads to higher levels
)A
of employee engagement, which drives production. Having strong relationships with the
organization and its people creates a positive environment that is difficult to ignore.
Decreased income:
People who feel valued and respected in the company are less likely to leave.
(c
That is why it is important for brands to promote a winning organization culture that
underpins their core values and a statement of purpose. Happy employees say less

profit, which saves companies time and money in hiring. Companies that have a strong
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culture need to take steps to maintain and improve.
High productivity
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When employees have the resources and tools they need to be successful, it
helps to increase productivity and overall performance levels. Organizational culture
contributes to the creation of a workplace in ways that unite people of the same ability.
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Those who share the same backgrounds and skills may quickly work together when
doing company projects.
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Strong brand identity
The organizational culture of an organization represents its image and dignity
in society. People make ideas about businesses based on their interactions within
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and outside the company. If it lacks the organization’s culture or has a weak image,
customers may be reluctant to do business with anyone associated with the product.
Businesses with a strong brand identity tend to attract more businesses and job
candidates with similar values to support their mission.
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The above image demonstrates the importance of culture. The organizational

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culture has four parts known as organizational identity, sense making device, social
system stability and collective commitment.
The power of conversion

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Not all businesses have the power to turn ordinary employees into perfect product
promoters, but only those with a strong organizational culture do. Companies that
recognize the efforts of their employees and celebrate the success of the team are
)A
more likely to see a change in employees as they gain a sense of accomplishment.
Some organizations follow a tradition in which all employees, regardless of

who they are appointed to, should be in office on time. Such a practice encourages
employees to be punctual, which ultimately benefits them. It is an organizational
tradition that makes individuals effective professionals.
(c
Every employee is clear about his or her roles and responsibilities and strives to
accomplish tasks in a timely manner according to set guidelines. Policy making has
never been a problem for organizations where people follow established norms. New
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employees also try their best to understand the work culture and make the organization
a better place to work.
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Work ethic promotes positive relationships among employees. No one takes the
job as a burden and molds it according to tradition.
Organizational culture that produces the best for each team member. In a culture
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where managers are more focused on the reporting system, employees no matter how
busy they are will send their reports at the end of the day. No one should force a person
to work. Culture develops a habit for the individual that makes them successful at work.
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4.1.6 How Organizational Culture Impacts Performance and

Satisfaction
A common structure where people from different fields, academic qualifications,
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interests and vision come together and use their skills to earn money is called
organization. The effectiveness of an organization depends on the efforts of each
individual. Each person should give as much as he or she can in order to accomplish
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the tasks he or she will need.
Every organization has a unique style of operation that is often called its culture.
The beliefs, policies, principles, and ideas of an organization form its own culture.
Organizational culture is nothing but the result of interaction between long-term

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employees. The behavior of a person and co-workers as well as outsiders creates a

culture. The management approach of employees in its own way also contributes to the
culture of the organization.
)A
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Employees who work full-time in any particular organization tend to make certain
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rules and follow certain policies such as their comfort and consistency. Such policies
and procedures developed by employees over a long period of time to make the
workplace a more enjoyable and creative environment. Culture often gives employees a
sense of direction in the workplace.
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The culture of the organization however will never last. It changes over time.
Organization A was a well-known event management firm. Tom, Sandra, Peter

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and Jack represent the management. All four were in their 30’s and thus focused on
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hiring talented young people. No wonder this organization follows the tradition of the
youth. The staff were aggressive, on their feet and eager to do something new all the
time. The organization followed a culture of violence in which the best performers were
respected and rewarded accordingly. Testing and promotion came quickly and the
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response was immediate. Managers also encourage formal gatherings, dinners to bring
employees closer and increase the level of comfort.
After demonstrating their ingenuity for some years, Tom, Sandra, and Peter
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decided to move on to better opportunities. Tim, Maria, and Sara all in their 50s stepped
into their shoes and took the reins along with Jack, the only remaining member of the
former team. They did not in any way justify the previous operating style. They bring
in their people from their previous organizations and thus cause problems for existing
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employees. Managers were very supportive of punctuality and did not encourage
teams; meeting at work. There was no response or awards. The staff were not
enthusiastic and did not bother to do something new.
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)A
Figure: Organistional Culture and Leadership Performance

(c

The culture of a corporation is largely influenced by its leadership. Through goal-

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setting, opportunity, and recognition, leaders can promote organisational values by
assisting their employees in growing and developing. Employees should be elevated
through frequent one-on-one meetings and regular two-way feedback.
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Is there a change in work ethic?
A change in management has changed the whole operating style.
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Reasons to change work culture
New bosses, new team leader, new manager brings change to organizational
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culture. A new but transparent employee can have new ideas, concepts and test his or
her level as much as possible to apply it. He would want the staff to work as he said.
His work ethic, behavior and ideas will definitely bring about a change in work culture.
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Loss of funds, collapse, market volatility also lead to a change in the culture of the
organization’s work. When an organization falls into a loss, it fails to provide salaries
and balances to employees as it did in the beginning.
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Finding new clients can lead to a change in work culture. Employees may need to
make changes in their work practices to meet the expectations of new customers.
Employees themselves may realize that they need to make a change in their
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attitude, perception and style of work in order to achieve the goals at a faster pace.
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Such self-esteem changes the work culture.
work culture represents the ideas, principles, policies and beliefs of an

organization. Individual style of work, his or her behavior and interactions also
contribute to the culture of the organization.
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There are a number of factors that lead to a change in organizational culture.

Changes in management, bad financial conditions, a review of goals and objectives
bring about a change in organizational culture.
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Accepting changes in the work culture is the hardest thing to do for an employee.
Not all employees can happily adapt to organizational changes.
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Employees need time to adapt to a new culture. Miracles are instantaneous and
habits do not change suddenly. Employees should spend some time understanding
and adapting to a new culture. One has to work with an open mind and accept things
willingly. Don’t stay asleep because it does not bring a solution. Employees should try
their best to accept changes with a smile and work appropriately. One should never
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rush. Managers must also give employees time to adapt to the new culture. Do not
pressure anyone to accept changes immediately.
Employees must develop new strategies, a new action plan and policies to address
)A
new challenges. Try to find specific reasons for the change. Previously successful ideas
may now no longer work. One should not be firm. Sit with your team leader, discuss all
the options and try to apply something that can work better in a new culture and benefit
you and your organization.
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The employee must change his or her behavior and system of cultural thinking.
Flexibility is important. Adaptation to the workplace always pays off over time.

Remember that everything happens in the best possible way. One should always try to
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look for the good in life rather than criticize things that are beyond our control.
Janet worked for a well-known company. Employees at her company have a
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reputation of never arriving at the office on time. Workers were not subjected to any
severe norms or regulations. Janet enjoyed her work ethic because she was not under
any pressure to arrive to work on time.
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Her organisation soon hired someone from his competitor to head it. She
made various modifications to the work ethic, the most important of which was the
establishment of regular work hours for all employees. Employees were expected to
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follow the company’s standards and policies.
Status A
Janet found acclimating to her new culture incredibly challenging. She fell asleep
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amid his coworkers, unable to accept the quick change in work ethic, and saw his job
as a burden.
Condition B
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Janet cheerfully accepted the adjustment and tried her hardest to adjust. She was
astute enough to see how this adjustment would benefit the company. Every morning,
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she would get up early and be on time for work. Every day, he gave his all and received
praise from his superiors and managers. Which situation do you think is the best?
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Obviously Condition B
One should always keep in mind that small changes in personal behavior can
make an organization a better place to work.
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A few tips to fix a changing organizational culture.

●● Give it time to adjust
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●● Be flexible
●● Work with an open mind
●● Never lie in bed
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●● Look at the positive side

●● Make some plans
●● Don’t get too attached to someone at work
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All of the aforementioned points imply that hard work is required. Consider 13
organisations appearing on Fortune’s annual Best Companies to Work For list and
earning a high mid-year return of 495 percent rather than 170 percent (Russel 3000) or
156 percent (S&P 500 ). However, how can you tell if you are on the correct track? The
)A
solution is to quantify your culture.
Consider that 64% of firms continue to limit employee participation to a single

year. This is despite the development of instruments that enable standardisation
of measurements, which, with sufficient information, is the optimal method. When
(c
assessing culture, there are numerous variables to consider. Here are a few
examples:Legal: How legal is your culture? Is there a dress code? Are your people

overly concerned about working to support their career, or are they working to achieve
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organizational goals as a group?
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Transparency: Some businesses want to keep their data safe, especially when it
comes to income and profits. It is also possible that this information is only available
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to officials and their immediate circle.. Is your organization managed by a high level of
transparency, where everyone is given access to financial information and taught how it
goes across the organization, as you can see in a company that does Great Business
Game or manages an open book?
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Groups or Individuals: Some organizations are highly collaborative when all work
is done by groups; it’s all about motivating and celebrating the team’s performance.
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Some organizations work on the other side of the spectrum by rewarding individual
contributions and performance, such as paying bonuses based on meeting personal
goals or assignments. This is not a judgment of value — it is a measure of what your
culture looks like.
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Performance Tracking: When it comes to performance, some organizations

measure how well they perform in terms of performance; everything is balanced and
well done. At the same time, there are many organizations that do not measure their
performance to the same degree. Think of something like DMV, where people are able
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to do their jobs. However, they are not focused on improving their performance by
delivering unique and fast customer service.
New innovation: Some organizations are innovating, where everyone is focused on

)A
coming up with the next best idea for changing the game. Part of the culture is based
on the competitive idea of winning their competition by creating the next good name. On
the other hand, organizations may be less concerned about what comes next as they
focus more on increasing the market opportunities they have in front of them.
(c
Frugality: Some companies use a low-cost strategy to market their products. To do

so, they adopt a savings attitude when looking at their cents and make decisions about
such matters as travel and their supervisors may even fly coaches to save money.

Humor: Humor can be an important tool in some organizations to help reduce

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stress and help to promote teamwork and understanding. In some cultures, perhaps
the actuary segment of an insurance company where critical decisions are made about
disasters, you should not expect to hear a lot of laughter.
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Consensus: An interesting part of an organization’s culture is to understand
how it tolerates outsiders or makes people conform to its values. There are other
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organizations that are open to allowing their employees to do work in any way they
like. But there are also organizations that strongly expect people to conform to a certain
standard, perhaps to the extent that people look very similar based on the way they
dress and even the way they cut their hair. Which means it’s about to be the most
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delusional time of the year, as well.
You can strengthen your organization’s culture and boost employee performance.
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4.2 Models of Organizational Culture
The cultural models of the organization play a major role in the success - or failure
- of any company. The most intelligent and enthusiastic worker can succeed in an
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environment that embraces a sacred way of management. But that person may not be
able to reach his full potential within the governing body.
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Years ago, most organizations looked the same. The honcho head was high.
That person was in charge of a management team full of people in charge of other
management teams and so on - up to a low-level employee. This traditional structure is
often referred to as the organizational culture of the class.
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Today, new organizational models of cultures are emerging, prompting many

businesses to rethink their cultural approach completely.
Here are five examples of organizational culture. Which is best for your
organization?
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1. Family traditions
As the name suggests, family traditions take a family-like approach to performance.
)A
Instead of competing with each other, employees are incredibly cooperative and
employers are committed to their employees. This, in turn, drives staff engagement and
loyalty.
Family traditions certainly have their advantages. But critics argue that it is difficult
(c
to innovate in these areas of the family. In the quest for unity, dissenting ideas may not
be shared more often with organizations that are dominated by national ideologies.

2. Holiness
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Instead of having a diverse management team, many businesses embrace
the sanctity of organizational governance. Simply put, power and responsibility are
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distributed throughout the various stages of holocracy. Instead of being considered a
small manager, employees are expected to complete all their tasks independently. By
design, holacracies are flat, efficient structures that can be weighed down by arrogant
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bureaucracies.
This does not mean that holacracies are chaotic, on the contrary. In holacracies,
roles are clearly defined. Everyone knows exactly what is expected of them.
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3. Meritocracy
A good idea is a good idea. Does it really matter if it comes from a CEO or an
intern from college you just hired?
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Some organizations are meritocracies. These areas are built on the premise that
the best idea always wins, no matter what the circumstances. It does not matter who
you are or what you come for. All ideas are listened to and discussed, and the best is
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real.
What’s worse in this regard, of course, is that meritocracies may work better on
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paper than they work on. For example, Bridgewater, one of the largest hedge funds
in the world, is a meritocracy. But it’s hard to imagine that Ray Dalio, the company’s
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founder, has a voice that sounds as often as that of a first-year analyst. In other words,
when Dalio speaks, the whole company listens. The same cannot be said of all others
who work there.
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4. Denison
According to the Denison organization model, there are four main components of any
successful organization: flexibility, goal, consistency, and participation. Companies need
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to know where they are going; they need sufficient flexibility to adapt to changing market
conditions; they need compliance; and they need the support of participating staff.
Managers in Denison organizations remain focused on these four quadrants to

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ensure that their companies stay on track.
5. Adhocracy
The world is moving fast. Organizations with strong management structures may
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not be able to comply. On the other hand, there are adhocracies: companies that
embrace creativity and creativity. Businesses that are governed by this model tend to
be flexible and adaptable very quickly.
)A
In adhocracies, roles are not clearly defined. Employees do what they do best -
and try to avoid building anything like bureaucracy.
Due to the nature of the fly-by-the-seat-of-your-adhocracies adhocracies, critics

argue that they end up with half-baked ideas that have never been fully explored. It can
(c
also be difficult to find the right staff to make adhocracies successful; most employees
need at least some guidance, after all.

Every company works differently, and there is no solution equal to one of the
Notes
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organization’s cultural models. Depending on your vision, purpose, and values, you will
need to experiment with different models and find the one that works for you - not the
one you need to work on.
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Cultural Models: Spotlight
Specialists who have attempted to study the larger cultural background of the
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organization and the cultural aspects of the organization have developed different
models to explain and refine their research. In fact, it has been quite a process to
divide and divide the business culture into examples that have allowed our current
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perspective. In view of this, it is also noteworthy that a particular model of selection
and use has a profound effect on the success or failure of an organization. Therefore,
in order to make the best choice, we may need to reexamine the cultural examples
available to us. In simple terms, organizational culture can be thought of as an
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organization’s path to success.
1. William Schneider’s Reengineering Alternative
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First, William Schneider’s cultural model incorporates two dimensions in which the
model reflects decision-making and attention.
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Decision-making as size extends beyond the scope of the individual to the
individual. The model takes an impersonal approach based on facts and data or
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resembles a personal approach, which provides the importance of feeling the gut and
emotions. Similarly, the second aspect of attention is to paint the spectrum between
realities, where the organization views reality as the main influence rather than the
possibility.
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These estimates continue to form four quadrants divided into,
Interaction
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Ability
Planting
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Control
Schneider Culture Model

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Command
Decision making: Company
Note: True
)A
This quadrant focuses on the above-mentioned factors in size, selective analysis

and response to existing problems, roaming of available available data and supporting
information. In general, this model promotes order, by touching the integrity of the
embedded culture.
(c
Interaction

Making decisions: People

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Note: True
Cooperation, on the other hand, is in direct opposition to the dominant culture.
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Here, organizations thrive on teamwork. This approach leads to the participation of the
whole culture, and the importance given to the resulting emotional environment.
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Ability
Decision making: Company
Note: It is possible
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Highly opposed to co-operation, the cultural model of skills encourages and builds
a strong environment, thus preferring height and pursuit of beauty.
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Planting
Making decisions: People
Note: It is possible
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The farming quadrant is set in the opposite direction, so the change is different.
The farming quadrant differs in the domain of attention and the culture of collaboration
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and thrives on what is best, more than what is already there. This tradition aims to
develop and ultimately equip people in the organization.
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4.2.1 Edgar Schein’s Model of Organizational Culture

Edgar Schein has proposed a corporate culture model in which fundamental
concepts shape values and values shape habits and behaviors, which are an integral
)A
part of culture. Organizations do not practice culture in one day and actually learn
from what happened in the past and then start practicing it every day thus creating a
workplace culture.
Schein believed in a three-tiered organisational structure..

(c
1. Artifacts
These mark the face of culture in all organizations.
The visible part of the culture can be perceived by the visitor or ‘outsider’ in the
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form of the following features:
Physical Artifacts can be found in buildings and interiors, visual space, and
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distribution and office building, decoration, style, and even monuments and medals
awarded at selected times.
Language conveys traditions through expressions, levels, and types of sounds,
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slogans, and special expressions.
Stories and myths surrounding employees indicate what kind of people or actions
are considered heroes, how certain situations should be handled, what should not
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be done, what happens in this organization if one acts in a certain way, and so on.
Most interesting are the stories that tell of what happens to ‘our’ organization when a
high-level person breaks the law, what happens when an organization has to choose
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between profits and people, what happens if you make a mistake here / there. These
stories can talk about another day-in-the-job-here, or about important events and the
previous glory of the organization.
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Technology is part of culture, because it reflects and shapes values and
speculation through function, materials, and knowledge.
Visual traditions reflected in ceremonies and objects, social norms, leadership

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practices, and work ethic reflect the ‘way of doing things’.
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Art objects are visible, but that does not mean they can be easily understood and
everyone equally. In fact, art objects can be confusing to an observer who is tempted
to use easily accessible labels and imaginative ideas when he or she recognizes them.
Therefore, cultural designers and students should avoid going into too much detail
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about the artifact, as well as over-integration and labeling.
Edgar Schein Organisational Culture Model

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2. Values
Compared to the basic assumptions, the values are higher in recognition and
reflect the ideas assigned to members as ‘the way things should be’. When we say
(c
‘opinion’ it means that when it comes to imitation, these members may or may not act
according to their own principles. Values help organization members classify situations
and actions as undesirable or desirable.
Prices rarely lead directly to basic assumptions even after prices have been
Notes
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quoted, listed, and sorted according to their value. The viewer can only find that the
numbers do not form a pattern, or are contradictory, or do not conform to the observed
behavior.
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3. Assumptions
Guessing is a type of belief that is easily taken for granted and has never been
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disputed. The basic guessing pattern changes between members of a social group and
forms the core of the culture in any organization.
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When basic assumptions are understood, artifacts appear solitary and confusing
and values are intertwined. Schein (1985) provided six types of speculations that form
the paradigm of all organizations:
1. Guessing what is ‘truth’ in physical and social matters, how truth and truth are
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determined, and whether truth will be revealed or discovered.
2. Guessing the importance of time in the group, how time should be defined and
measured.
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3. Speculation about how the environment should be managed and shared, the
symbolic description of the human environment, the role that space plays in shaping
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interpersonal relationships, and the boundaries between intimacy and privacy.
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4. Basic assumptions about the inner or final aspects of human nature, whether human
nature is basically good or bad, and whether it can be perfected.
5. Opinions about the organization’s relationship with its environment, about job
understanding and playfulness, and how much work and activity should be appropriate.
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6. Individual freedom or team cooperation, which is the cornerstone of leadership - even

if it should be a traditional authority., legislation, or charisma. Methods for resolving
disputes and making decisions that are appropriate.
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4.2.2 Hofstede Model of Organizational Culture

Hofstede, better known as Geert Hofstede, suggested that national and regional
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factors influence the culture of the organization and ultimately affect the behavior of
employees in the organization.
Hofstede identified five factors that affect the workplace culture.
5 Workplace Culture Items - Hofstede

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1. Power DIstance
The energy level indicator means the difference in the work culture in terms of the
)A
power given to employees. There are some organizations that believe in appointing
party leaders or party leaders who are responsible for their teams and have the
challenge of getting the best out of members. Team members should respect their team
leaders and act on their orders and advice.
(c
However, in some organizations, every employee is responsible for his or her own
work. No special person is assigned to manage the staff. People do not respond to

anyone but themselves. Every employee receives equal treatment from management
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and must take ownership of his or her work.
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Organization A - Non-hierarchical
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Here power is distributed equally to all employees, regardless of their position.
Everyone is entitled in full equality to a fair and public hearing by an independent and
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impartial tribunal, in the determination of his rights and obligations and of any criminal
charge against him.
Organization B - Hierarchical
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Conversely, within group B those in senior positions will enjoy special management
from management and team leaders will be given more responsibilities compared to
other team members.
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2. Masculinity Vs Femininity: This refers to the impact of gender diversity on

institutional culture. Organizations, where male employees dominate their female
counterparts, will follow different principles compared to organizations where women
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have a greater say in organizational decisions. Responsibilities may also vary

according to the gender of the employees.
In this regard, however, it is important to note that although women are still under-
represented in leadership positions the organizational structure changes rapidly, so one
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needs to examine models like Hofstede carefully when applying them in today’s context.
3. Individualism vs. Collectivism

)A
There are organizations that rely heavily on cooperation. Here people with similar
interests come together and work together as a team. These organizations believe that
the effect is greater when people exchange ideas, discuss things on their own in order
to come up with new ideas. In such a situation employees share healthy relationships
and provide assistance when needed.
(c

Notes
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However some organizations follow a tradition where people do not believe in
working as one unit and prefer to work individually.
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4. Indulgence/ Restraint
This feature deals with the ambiguity of unusual or unusual situations presented to
employees. The indicator refers to the level of tolerance of employees under comfortable
and comfortable conditions. Organizations generally aim to reduce these types of situations
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for their employees and ensure that they are suitable for these types of challenges.
5. Long Term Orientation

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Hofstede’s new dimension is based on a study conducted in Hong Kong by Michael

Bond, who found that Hofstede’s prior four cultural dimensions did not fully reflect Asian
cultural perspectives. It also reflects Kluckhohn and Strodbeck’s time orientation.
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But it is not just a matter of time. “Long Term Orientation” refers to the development
of qualities geared toward future benefits, such as perseverance and thrift, according
to Hofstede. Short Term Orientation, on the other hand, promotes virtues associated
with the past and present, such as respect for tradition, maintaining one’s ‘face,’ and
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performing social obligations.

)A
(c

Notes
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4.2.3 Handy’s Types of Organizational Culture
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The 4 types of organizational culture known as Charles Handy are as follows:
1. Power Culture
2. The Role of Culture
3. Work Culture
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4. Person / Support Culture
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The culture of power:

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When you think of a spider in the center of a net, the best way to look at how the
life force is transferred to an organization that has all the important spiders sitting in the
center is an important element in which the whole organization lies. institution, around
)A
social gatherings and departments with varying degrees of influence. The closer you
get to a spider, the greater the impact. They will tend to seduce people who are power-
hungry and politically minded, who put themselves in danger and who do not realize
how much protection they have. Managing resources will be the key energy source for
this particular lifestyle, with a few individual components in the middle.
(c
Greatness is the cultural concern of power. They think that it is difficult to integrate
too many tasks and maintain control; they tend to be successful in producing new, more
liberal organizations, even though they often maintain significant economic control.
This type of culture relies heavily on people instead of committees. They can
Notes
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appear strong and resilient and their success may be accompanied by high profits and
low morals as people fail and get out of the competitive environment.
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Role of role
The role of the role can be defined as a structure based on beams and columns:
every beam and column has a certain function to play continuously to maintain the
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structure; people are active people even though the work continues even after the
person leaves.
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The location will be the first power supply in the role line. Everyone is entitled
in full equality to a fair and public hearing by an independent and impartial tribunal, in
the determination of his rights and obligations and of any criminal charge against him.
private power is not accepted and special power is only accepted in its proper place.
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Procedures and guidelines have become major sources of influence. Otherwise, the
role of culture finds it difficult to adjust for change; they are often slow to recognize their
need and respond appropriately. Such an organization is found right where the economy
of the economy is most important compared to freedom or perhaps where specialized
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technology and professionalism are often more important when compared to product
development or system costs - for example, in many public service organizations. .
Work culture r
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Work culture is a way of life or project-based, and its accompanying framework can
be better represented as a web. Few hair strands on the web are stronger or thicker
than others, and more strength and impact can be found on the web, in the folds. Work
cultures are often linked to organizations using a matrix or perhaps project-based
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building projects.
Ordering from these companies can be difficult. Essential control is maintained by

senior executives, who focus on the distribution of tasks, resources and people, but use
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little daily control over management strategies or perhaps methods, without violating
ethical principles. This works best in favorable situations and where there are resources
that people can justify using. However, when resources are not readily available,
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senior executives begin to feel the need to control strategies beyond results, and team
managers may begin to compete for resources, using political influence.
Work ethic in working groups is likely to decline and work is declining significantly
on its own, so that employees can begin to articulate their goals. This necessitates the
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arrival of procedures and rules, the use of space or perhaps the order of materials used
by managers to purchase completed work. Therefore, the work ethic of the workplace
tends to shift to work or perhaps a culture of power when resources are limited and the
whole organization fails.
)A
Individual culture
Personal / supportive culture
Human culture is an unusual way of life. It does not exist in a number of organizations,
(c
though most people support its limited numbers. This particular type of culture is
represented by the loose cluster or perhaps the constellation. In this particular culture,

anyone can be the focus area; if there is an organization or structure, it exists and then
Notes
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brings and helps the people within it, to fulfill their passions without any escaping purpose.
Obviously, not many organizations are able to exist in this type of culture, and they
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create it, because organizations often have a specific business goal in addition to the
secret intentions of the people who put them together. Moreover, control systems, as well
as administrative categories, are impossible in these countries without consensus. Although
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this organization does not usually have the power to expel a person, but a person can make
an organization. Influence is discussed and the power base, if necessary, is usually expert;
that is, people do what they do best and are known for their expertise.
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Although it will be rare to find an organization where human culture is prevalent,
you often meet people who love this type of culture, but who find themselves working
in many orthodox companies. Professionals in organizations, such as IT specialists in
corporate organization, clinic coordinators, government architects who are local trainers
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and faculty educators benefit from their work ethic.
Such people are not easy to manage. As an expert, some work is often very easy
to get, and they may not accept everyone as a source of greater power than their own.
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The power of the position which is not supported by the power of the service means
nothing to such people, and the power of coercion is rarely attainable. They may stop
being influenced by group practices or perhaps interacting with colleagues, which may
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be expected to balance their preferences. This leaves the human body - and such
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people are often not impressed by personality.
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Figure: Practical Model: Organizational culture versus organizational structure
Organizational culture is a part of the organisational structure of an organisation,

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but the structure is also a part of the culture of an organisation It can also be said that
the structure is a way for the culture to be put in place, while the culture tells how the
company should be set up.
)A
According to Charles Handy and Roger Harrison, organizational culture cannot be

separated from other aspects of the organization. Especially the culture and structure
and are closely connected. Where low power distribution can be found, there are clear
hierarchical structures.
(c
In the case of an additional power distribution, horizontal (functional) and vertical

(functional) leadership positions may arise. In addition, Handy & Harrison believes that
organizations should take into account the conflicting interests between individuals and

the interests of the organization.

Notes
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Especially when there is a low level of cooperation, it makes sense to make clear
agreements about who is in charge of what activities. Handy and Harrison also point out
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that the types of cultures mentioned above are the right kind, in fact rarely present in
the purest form. Instead, most organizations have a mix of genres.
Delegation of power refers to the high level of organization (management or owner)
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that is open to functioning from the ground up or down. In the case of a downward
spiral, the power distribution is very high; employees are expected to take responsibility
for themselves, decide their jobs and make independent decisions.
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In the case of a complete downward spiral, there is almost no power distribution;
management or owner is completely in control and is the only person who makes decisions.
The level of cooperation, as the name implies, is about the level of co-operation
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between the various departments and employees. A low level of cooperation means
that everyone is self-employed and does not need the help of colleagues.
A high level of cooperation, on the other hand, involves close, non-essential
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partnerships between partners. Finally, the combination of these two approaches
results in four organizational cultures: Role Culture, Power Culture, Personal Culture
and Work Culture:
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4.3 Creating and Maintaining Organizational Culture
With a large number of metrics, training, reporting, staffing problems, clinical
schedules and other daily activities, culture sometimes takes a back seat on the leaders
list of priorities. What many health care leaders forget is that culture participates in
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everything a leader does, integrating certain ideas and behaviors to help employees act
as a team.
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Having a healthy company culture promotes harmony and promotes inspiration

throughout the organization. Merriam-Webster defines culture as “a set of attitudes,
values, goals, and shared values that define an institution or organizationCulture is
more than that; it affects all employees throughout the organization. It influences how
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employees feel every morning when they get up and get ready for work day. Culture is
the way employees feel about their job while at work, and the way they feel after leaving
office, whether that is personal or working away. Culture is a way of life.
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)A
(c

Notes
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Figure: Visual Elements of Culture
The most frequently used visual elements are the firm’s quality policy, quality
certifications, vision, mission, and values, as well as some paintings and, if the room is
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a main meeting space, any honours the company has earned. Then there are various
additional common areas, such as the cafeteria, the reception area, and the break-out
places.
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Having a healthy organization is like having a strong glue stick that helps build
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relationships and respect. This in turn creates trust; the unreliable team will struggle
to achieve the goals. When a team reaches a certain level of trust with each other,
employees participate and feel a sense of belonging; this, in turn, reduces profits. Low
profits help build meaningful relationships between staff and their patients, helping the
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organization to bring efficiency to patient care.
A strong, cohesive team helps companies go through any significant changes.

Whenever a company or department undertakes a process improvement process, such
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as the Lean Six Sigma process, having a different internal culture and trustworthy team
is needed to move us forward. For a leader to make effective use of new tools, a good
culture will help the team work together and support each other during adaptation.
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The role of cultural recruitment

Hiring the right people starts with having the details of a job offer that transcends
a company brand. Consider adding a specific function to a job posting - anything from
asking a candidate to create a short video or color email to his / her favorite hiring
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manager. This function serves as a filter to determine which candidates are focusing on
detail.
)A
With an internal appointment, consider evaluating the candidate for the analysis
of strengths, weaknesses, opportunities and threats (SWOT), and describe the skills,
character, knowledge and accomplishments. Distinguishing between a candidate and
a character is important for the interviewer to be the cultural representative of the
organization. Will the candidate be in line with the company’s culture?
(c
Final Thoughts : Another way is to empower candidates by providing them with

their training time line ride following their acceptance of the offer. Internal training

provides the finest opportunity to acclimate new employees to their workplace and the
Notes
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reason they perform what they do. It is critical to communicate the company’s policy,
vision, and values during internal training. Values are fundamental, as they direct
persons in their daily activities. Prices take into account both internal and external
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company behaviour toward providers/colleagues, as well as patients and referrals.
Numerous firms overlook the “First Day,” the first chance to create a favourable
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impression on a new employee. Businesses can create an effective commitment that
includes critical information and communication for new employees. By doing so,
new employees’ heads and hearts will be exposed to corporate culture. For instance,
leaders can receive flowers or a “party card reception” kit in exchange for a simple
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“party reception” signed by employees and providers. Consider creating a “popular
staff card” that includes basic questions about a new team member’s hobbies, favourite
movies, and so on. This will assist leaders in connecting with their team on a personal
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level and forming a strong bond.
Follow-up after hiring

Having a timetable to evaluate new appointments, which includes arranging a
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three-week post-employment meeting with a prospective recruiter to help resolve any
issues. Monthly tracking should continue until 90 days of testing / testing takes place.
On 90 days inspection, the company must officially accept the job. This may include
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providing shirts or jackets with company logos, office keys, or other official items.
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The next step is to maintain a good and productive culture. Keeping good people
is just as important in promoting culture. A 2018 Gallup Employee Engagement survey
reported that a third of employees are in the “celebrity” category; these workers are
beginners and make a lot of money. About half of the workforce can be categorized
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as “immediately.” This large group has the potential to be transformed into stars, which
is why most of the leader’s time needs to be spent with them. Finally, about 1 in 8
employees is defined as “unemployed.”
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(c
When it comes to maintaining a strong organizational culture, communication and

repetition are essential. Daily meetings, weekly planning, monthly meetings, annual
strategic planning meetings and annual corporate retreats should be established in
order to build and develop a culture of communication and trust. These communication
Notes
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channels help prevent confusion and mistrust. Transparency, involving staff in decisions
and assisting departments in resolving problems is important for employees. When this
level of cooperation occurs, trust and mutual respect becomes evident.
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Continuing education
Continuing to train all staff will help the team feel more confident in their work.
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Next, this will help to make patients more comfortable with the services offered. The
teaching staff includes departmental training and training for their positions, as well
as various training where possible, which enhances the team’s status and helps
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employees realize that they are working together. It is important that leaders expect the
same regardless of their position or years of service. Discipline is one of the keys to
being a just leader, as well as a culture of consistent driving, especially when it comes
to misconduct. Leaders must hold employees accountable for their use of tracking
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metrics. Two simple ways to get staff to respond using a spreadsheet to help track daily
progress or to have a weekend debate to move on to the weekly accomplishments.
These tools help ensure fairness and help keep employees accountable.
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Stay tuned
Negotiations are an alternative to maintaining the organization’s culture and should
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take place at least once a year without annual staff assessments. They are short, informal
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meetings with leaders and staff to ask how they feel about their job. Sitting discussions are
important as they help the organization understand what makes employees and providers
more content, and serve as a guide to dealing with company problems. Detecting problems
before leaving the interview, where it may be too late to correct the behavior or process, is
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necessary when making changes in time. If an organization has strong staff, it should strive
daily to listen and improve its culture, work ethic and processes.
Thank your team on a job well done on a regular basis

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Employee surveys: Conducting a quarterly employee survey is another technique

to gauge employee engagement. These surveys should be anonymous because
they give employees and providers a way to voice their concerns, praise, and share
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suggestions for improvement. Leadership should provide feedback to employees after

completing anonymous research. Leaders should explain why and what changes are
taking place. This communicates to employees that their input is valued.
Promoting Growth: In today’s health-care environment, employee incentive

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packages might aid to split the organisation. Grants are an excellent approach to
motivate staff and, as a result, create a unique culture. Study assistance, financial
assistance for attending conferences, prolonged vacation time, flexible schedules
)A
or assignments, and/or empowering employees through self-regulation are some

examples. Consider publicising the “Employee Promise,” which states that the company
has an open departmental culture that encourages employees to grow at any moment.
A large part of the compensation is also related to the group and the sense that
each member is recognized, which can be achieved in a variety of ways at no cost. A
(c
large incentive budget may not be possible; However, there are less expensive options

that can help promote the group, such as:

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●● Celebrating years of service
●● Recognizing the success of the year
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●● Rewarding staff based on core values
●● Forwarding thank you cards, emails or comments from patients
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●● Having a recommendation board where staff and suppliers can praise each other
throughout the month
●● To give back to the community through service events or by volunteering for a
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community service organization.
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Employees are often dismissed because they have no “reason” or serious intention
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to come to work without pay. Having unemployed workers creates high profits, which
can be very costly as leaders have to take time and resources to fill positions and train
new employees to return to full-time employment. It also creates less self-esteem for
patients. For maximum benefit, patients may look at other options to meet their health
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care needs.
4.3.1 How are Cultures Created and Maintained?

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How Are Customs Created?

Where do cultures come from? Understanding this question is important in
understanding how they can be changed. Organizational culture is shaped as the
)A
organization faces external and internal challenges and learns how to deal with
them. When an organization’s way of doing business provides effective adaptation to
environmental challenges and ensures success, those values are maintained. These
principles and methods of doing business are taught to new members as a way of doing
business (Schein, 1992).
(c
The most important factors in building an organizational culture include founder

values, preferences, and industry needs.

Industrial Requirements
Notes
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While the founders undoubtedly have a strong influence on corporate culture,
industry factors also play a role. Companies within the same industry can sometimes
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have very different cultures. At the same time, sector characteristics and demands
serve as a catalyst for creating similarities between organizational cultures. For
example, in spite of these differences, many companies in the insurance and banking
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industries are stable and law-abiding, many companies in the high-tech industry have
new cultures, and those in nonprofit industries may focus on people. If the industry is
one of many industries with regulatory requirements — for example, banks, healthcare,
and more reliable industries (such as nuclear power plants) —then we can expect a
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greater number of laws and regulations, a corporate framework, and a more sustainable
culture. The impact of industry on culture is also important to know because this shows
that it is not possible to imitate the culture of a company in other industries, although it
may seem attractive to outsiders.
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How Are Customs Preserved?
As the company grows, its cultural values are refined and strengthened. The
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company’s initial price values have an impact on its future values. It is possible to
think of organizational culture as a living thing that protects itself from external forces.
The culture of the organization determines what types of people are employed by the
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organization and what types of people are excluded. In addition, once new employees
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are hired, the company recruits new employees and teaches them how things are done
in the organization. We call these processes attraction-selection-attrition and boarding
processes. We will also explore the role of leaders and reward systems in shaping and
maintaining an organizational culture.
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Attraction-Choice-Appearance
The organization’s culture is maintained through a process known as attraction-
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selection-attrition (ASA). First, employees are attracted to organizations where they

can enter. A person with a competitive personality may feel comfortable and may
choose to work in a company where competition between people is common. Some
may choose to work in a work-focused workplace. Studies show that employees with
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different personality traits find different cultures appealing. For example, in the Five
Major Characteristics, employees who show emotional personality are less likely to be
attracted to established cultures, while those who are open to experience may be more
likely to be drawn to developing cultures (Judge & Cable, 1997).
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Of course, this process is incomplete, and price matching is the only reason why
a candidate is attracted to a company. There may be other, stronger attractions such
as good benefits. At this point in the process, the second part of the ASA framework
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prevents them from entering: selection. Just as candidates are looking for places to
enter, companies are also looking for people to join their current corporate culture.
Many companies employ people to adapt to their culture, rather than to work for a
specific task.
For example, Southwest Airlines prides itself on hiring staff based on personality
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and attitude rather than specific job-related skills, which they learn after hiring.
Companies use different strategies to exclude candidates that do not match company

values. For example, Google relies on many discussions with future peers. By
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introducing the candidate to a few future colleagues and learning what these colleagues
think about the candidate, it becomes easier to assess the level of competence.
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Even after a company selects qualified individuals for the organization, there may
be some new employees who do not qualify. Some nominees may have the ability to
impress recruits and show high levels of organizational accuracy even though they
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do not really have the company’s values. In any case, the organization will eventually
evict people who have been evacuated. Attrition refers to a natural process in which
unsuitable candidates will leave the company. Research shows that the instability of a
person’s organization is one of the most important factors in employee benefits (Kristof-
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Brown, et. Al., 2005; O’Reilly, et. Al., 1991).
As a result of the ASA process, a company attracts, selects, and retains people
who share its core values, while those individuals who differ by key values will be
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excluded from the organization during or after the recruitment process. Therefore,
organizational culture will function as a defensive animal when disruptive substances
are kept out. To support the existence of these defenses, studies show that
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organizations display a certain level of similarity in relation to the personality and values
of members of the organization (Giberson, et. Al., 2005).
Registration of New EmployeesOne way in which organizational values,

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values, and ethics are communicated to employees is through board (also called
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organizational process). Onboarding refers to the process by which new employees
learn the attitudes, knowledge, skills, and attitudes needed to function effectively within
the organization. When an organization is able to successfully negotiate with new
employees to become part of the organization, new employees feel confident about
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their ability to work, feel that they will feel accepted by their peers, and understand
and share the ideas, values, and values that are part of the organization. custom. This
understanding and confidence transforms into new employees with better performance
and higher job satisfaction, stronger organizational commitment, and longevity in the
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company (Bauer et al., 2007). There are many factors that play a role in successfully
recruiting new employees. New employees can participate in a number of activities
to help increase their chances of success in a new organization. Organizations also
engage in a variety of activities, such as adapting programs or matching new staff and
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mentors, which may be easier to do.
4.3.2 Cross Cultural Issues and Perspectives

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Cross-cultural psychology is a subfield of psychology concerned with the influence

of cultural variables on human behaviour. While many aspects of human mind and
behaviour are universal, cultural variances can result in unexpected disparities in how
people think, feel, and act.
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Certain cultures, for example, may place a premium on individualism and the value
of personal liberty. Other cultures, on the other hand, may place a stronger premium
on collectivism and collaboration among group members. Such distinctions can have
a significant impact on a variety of facets of life. Cross-cultural psychology is also
(c
becoming an increasingly important field of study as researchers seek to comprehend

both the contrasts and similarities between people from other cultures worldwide.
Since 1972, when the International Association of Cross-Cultural Psychology (IACCP)
was founded, this discipline of psychology has continued to grow and develop. Today,
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an increasing number of psychologists are examining how behaviour varies across
cultures.
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Many people consider culture to be an all-encompassing group. , E, like!
Americans, we must deal with cultural differences in our daily lives. Cultural differences
often lead to humorous disagreements, but they can also have a profound effect on
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one’s work.
Cultural conflicts between workers should be avoided and leave a good impression.
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4.4 Case Study

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Case Study: Assessing the Organizational Climate Factors inside a Four Stars
Hotel from Romania (Andreea Marin-Pantelescu, Laura-Cristina Maniu)
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India is attempting to force the market for company developers in a changing
world and development from an economic standpoint.. As in recent years Romania has
become an important destination for foreign investors, business tourism has had a good
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opportunity to develop, considering the number of foreign tourists arriving on business
trips.
Business tourism has continued to grow, from 2010 to date, by between 10%
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and 20% per annum (INS, 2014). The area has great potential, both in Bucharest
and in other cities, with over 60% of new arrivals being business and only 40% of
entertainment. Business people travel means hotels and tourism companies are an
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important source of income. These companies need highly trained staff who are highly
motivated to perform their duties to satisfy hotel customers (Kotler and Keller, 2007). It
is important for the hotel, its staff to enjoy working in this field, motivated by the desire
to succeed in providing quality tourism services to hotel customers.
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Strong competition between hotels determines the nature of the strong culture
and the operational climate of the organization. The culture of an organization is the
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personality of the company, which is distinct, as are its employees (Denison, 1996).
There are other factors that make an organization unique. This could be member
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behavior, problem-solving approaches and people linked to the organization, improved
standards, cultures, and
symbols chosen to represent the organization (Pro Vobis, 2003). It is very

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important that managers and other employees know and relate to the organization’s
culture in order to achieve the company’s goals.
Organizational climate can be understood as a “superficial” manifestation of an

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organizational culture and reflects the attitude of employees towards the culture that
exists within the organization (Hutu, 1999). Climate is “an internal human environment
of an organization” created as a result of a conflict between the expectations of
employees and the resources of the organization (Ganescu, 2011).
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The current paper seeks to explore the factors that ensure the effectiveness of the
organization. These factors contribute to creating a more efficient environment within
the organization.
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A marketing study was conducted among the staff of a 4-star hotel in Bucharest,
which is part of a well-known overseas hotel chain. The study aimed to highlight the
views, opinions and suggestions of staff on the 13 organizational climate issues
presented by Professor Constantin Ticu (2008), and are:
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●● Clarify goals and activities related to clear work strategies both in the group as
individuals within the organization.
●● Good interpersonal relationships related to the quality of interpersonal
relationships, communication and professional collaboration between employees
(c
and management.

●● Encouraging inspiration, in relation to the motivation program that exists in the

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organization.
●● Operational support, in conjunction with existing organizational infrastructure to
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achieve the tasks performed.
●● Effective leadership, about management and leadership style.
●● Purpose objective, with regard to the existence of staff evaluation criteria.
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●● Organizational integrity, related to job integrity and the distribution of resources to
employees and the way they are treated or rewarded for their work.
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●● Identification and company, taking into account the extent to which employees
achieve the organization’s values and principles, are involved and contribute to
achieving the goals of the organization.
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●● The level of decision-making, about the level of freedom in decision-making and
the level of communication with staff in decision-making at the organizational level.
●● Organizational Learning, about motivational workplace, i
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●● an environment conducive to continuous development and innovation.
●● Renewable work, in terms of satisfaction with the work done, and the support
provided for its implementation and acceptance.
●●
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Overcrowding, about high workloads and lack of time dedicated to personal life.
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●● Personal safety, in terms of job security, career future and college relationships.
Hotel staff are asked to check their behavior and standard the attitudes described
in the question are presented in everyday work, at the company level. In addition to
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each of the analyzed elements, employees were asked to identify problems related
to various aspects of the organization’s work, in order to identify the causes of those
problems and to suggest solutions to improve hotel efficiency.
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The questionnaire was completed by staff from various hotel departments,

subject to disclosure conditions. Employees were required to rate marks from 0 to 5
organizational climate conditions within the hotel.
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The socio-demographic characteristics of the researched employees:

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Most hotel bookers have moderate specialized courses, and this is possible
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because most of the hotel staff are students of the tourist center. Second, we can
find middle-class employees (40% of hotel staff), such as guards, dishwashers,
chambermaids, metal boys, porters, valet parking, etc., and these positions are not
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required. Higher education. Finally, highly qualified hotel staff (11.72%) include assistant
managers, managers, sales and marketing agents.
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Most hotel staff fall into the age group of 20-25 years, which is a good thing,
because this is a very good time for employee formation, and the employee has not
yet started his or her work style. The second largest age group of hotel staff is between
25 and 30 years old, and in this category some hotel managers are included, this fact
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shows that active youth are valued and represent undeniable strength. In terms of
social factors, the hotel is well-organized according to professional courses and staff
training programs (because no more people are qualified or in the position within the
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hotel) and the age of the staff allows for the development of a clean environment. and a
clear organizational climate.
The research results and implications
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In the current study it was very important to see the opinion of the staff about the
hotel organization’s culture, selected by the following criteria: length of service and
their work experience. The first crew consisted of less than one year of service within
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the hotel. In their view the lowest points of these factors were due to personal security,
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which means job security, the future of the job and working relationships. Very young
employees need to be integrated into the hotel team and this requires time and training
and sleeping arrangements. Not every time new employees get “warmth and kisses”
from older employees, but there is a lot of work to do and overwork. Higher points were
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the organizational fairness factor and objective assessment factor which means that the
activities and distribution of resources to employees and the way they are treated or
rewarded for their work are recommended by new employees and the hotel repeals the
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terms of service. objective assessment of new employees.

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Graph no.1. The organizational climate factors of the hotel seen from the
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perspective of the employees with less than one year of service and work experience in
the hospitality activity
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The length of the service reflects the attachment formed between older employees
compared to new employees. Opinions of senior staff members about the operational
climate of the organization within the hotel differ from the views of new employees. The
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opinion expressed by the senior staff about the hotel situation is very important and it is
best to consider it in order to develop a hotel organization culture in the future.
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Graph no.2. The organizational climate factors of the hotel seen from the
perspective of the employees with 1 and 3 years of service and work experience in the
hospitality activity
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As can be seen, the points obtained are low and close, with a very low value for
the following factors: personal security, quality of decisions, effective leadership and
impartiality of the organization. The highest points were the following: revitalizing work,
organizational learning and clear goals and objectives.
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Employees with work experience and service length between 1 and 3 years within
the hotel are supported by management to perform their duties and their suitability is
recognized.
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In a more efficient climate we find the fact that when officials grow up inside a
hotel, employees take for granted the company’s values and principles and contribute
increasingly to achieving the goals of the organization.
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Also in the working climate, but close to the functioning of the climate is the clarity
of the objectives and functions, which shows that employees are well aware of the
assigned tasks.
Some of the problems identified by staff are: lack of staff training, low investment in
training, lack of motivation and reward system, overcrowding, breach of procedures and
(c
staff flexibility. The leading causes of these problems are poor pay, lack of training, poor
decision-making and lack of communication.

The solutions developed by the staff were: an inclusive package that includes
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higher salaries, the opportunity for professional development, more job placement,
more employment in the hotel’s needy departments and the removal of excess control.
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Graph no.3. The organizational climate factors seen from the perspective of the
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hotel managers
Another important objective of the study was to examine hotel managers’

perceptions of the characteristics of the weather organization. Their opinion was very
important in our research.
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From the point of view of management, the hotel’s situation is efficient and they
provide employees with clear objectives and tasks to perform their duties.
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Also, the management agrees that the inside of the hotel is very busy and we may
experience a high level of loaded work and a lack of time dedicated to personal life.
Work at a hotel is “continuous burning”, and when everyone is relaxed, at the hotel
everyone is working.
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Finally, inside the hotel, management saw the opportunity to promote positions as
low and difficult to reach.
Conclusion
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At the level of any organization, climate can be a barrier to organizational

development. It is important for the organization to align its policies with those of the
organization. The role of specialized staff is determined when it comes to the successful
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operation of the hotel, as well as the delivery of necessary services. Training helps
employees develop the skills needed to do their job, especially for key employees who
meet directly with clients. Also, managers should encourage employees who help them
to deliver quality service.
(c
Some of the problems noted by staff within the hotel were: lack of staff training,
low investment in training, lack of motivation and reward system, overcrowding, criminal
procedures and staff rotation. The leading causes of these problems are poor pay, lack

of training, poor decision-making and lack of communication. The solutions developed

Notes
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by the staff were: an inclusive package that includes higher salaries, the opportunity for
professional development, more job placement, more employment in the hotel’s needy
departments and the removal of excess control. The research hotel has an effective
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organizational climate and space to develop specific features such as: personal
security, interpersonal relationships, operational support, organizational learning, and
overwork. The identification of a company feature achieves high scores in every case
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study and this is good news for the culture and functioning of the hotel organization.
Summary
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●● Organizational culture reflects member views, internal performance, interactions
with the outside world, and future expectations by incorporating organisational
expectations, experiences, philosophies, and values that shape member
behaviour.
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●● Business leaders play a crucial role in establishing and maintaining a positive
workplace culture. The relationship between leadership and culture, on the other
hand, is one-sided. While leaders are the primary architects of culture, the type of
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leadership that is conceivable is influenced by the existing culture.
●● Leaders must recognise their responsibility in protecting or changing the culture of
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their organisations. A highly ingrained and deeply rooted culture represents how
individuals should act and can aid employees in achieving their objectives. When
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an employee believes that the leader is aiding him or her in achieving the goal, this
code of conduct promotes optimum job satisfaction.
●● When it comes to hiring people and outperforming competitors, culture is a major
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advantage. About half of employees will leave their position in order to find a
profitable job in a better-organized firm, according to 77 percent of employees who
evaluate business culture before applying. Organizational culture is also one of the
most important predictors of employee happiness and one of the key reasons why
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nearly two-thirds of employees (65 percent) stay in their positions.

●● Salesforce is a company that priorities business culture and has seen great
success over its history. Marc Benioff, the business’s founder and CEO, has
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instilled philanthropic values that have driven the company for the previous two
decades. All new Salesforce workers volunteer for a portion of their first day,
earning 56 hours of compensated volunteer time every year.
●● Large corporations cultivate a business-oriented culture; thus, performance is
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crucial. Skilled workers in these organisations encourage one another to succeed,

resulting in higher earnings and productivity, as demonstrated above.
●● Employees with mental security receive the assistance they need to put
)A
themselves in danger and respond honestly. Remember that mental security

begins at the group level, not the individual level, thus managers must take the
lead in establishing a safe workplace in which everyone feels at ease contributing.
●● Building a positive organisational culture necessitates the creation and
implementation of a strategy with measurable objectives. The eight stages outlined
(c
below should serve as a road map for establishing a culture of continuity that will
benefit your entire firm in the long run.

●● Recognizing all team members’ efforts has a far-reaching, beneficial impact on

Notes
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corporate culture. Individuals tend to perceive themselves as part of the complete
team when they see the success of others on the team. Even the busiest
employees want to know what is going on at work, and they are wary if they are
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not informed - 76 percent of employees believe management gives them special
attention.
●● The success of your company’s efforts to create a positive workplace culture is in
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the hands of team leaders and managers. For example, if your workplace culture
establishes specific norms and your leadership team fails to set an example - or
even shows the opposite conduct - the effort is undermined.
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●● The core of your company’s culture is its values. While making a machine
statement is a wonderful start, living up to corporate standards entails striving
for excellence in all aspects of your company. Support policies, HR regulations,
benefit schemes, and even out-of-office outreach activities are all considered
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optional. Your employees, coworkers, and customers will notice and appreciate
how your company incorporates its values into its daily operations.
●● Identify and foster similar personal interests among group members, particularly
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among those from various generations who may struggle to bond. This can lead to
new levels of empathy and understanding, which are crucial in the development of
communication, innovation, and conflict resolution.
●●
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Internal conflicts may emerge if an employee’s viewpoint differs from the
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company’s culture. During the onboarding process and afterwards, organisations
should recognise and reinforce the culture. Values should be communicated and
practices and processes should be taught.
●● One of the major issues in education and education research, organisational
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theory, and management practice is organisational culture. There are good

reasons for this: the cultural aspect of an organization’s life is vital to all parts of
its operations. Even in businesses where cultural concerns receive little attention,
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ideas, interpretations, and shared cultural beliefs (shared) nature guide what
individuals in the firm think, feel, and do.
●● Business culture is gaining traction in many modern firms, and it is being given
more attention. The key concern is that “culture leaders want to intervene
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and regulate the presence so that there is no divergence between individual

aspirations and the goals of the organisation in which they work”.
●● Knowledge is thought to be a vital aspect in attaining long-term profitability and
corporate success, and information difficulties are inextricably tied to company
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culture.
●● The goal of recognising, producing, sharing, and utilising knowledge in a better
organised manner usually results in a greater interest in the organization’s culture.
)A
However, in times of transition, such as during mergers and acquisitions, culture

is frequently sought after, even in firms where cultural management is not a top
concern.
●● Academy Culture: Talented people are hired by organisations that have a
school culture. Roles and responsibilities are assigned based on the employees’
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backgrounds, qualifications, and work experience. Organizations that adhere to

school culture place a greater emphasis on retraining existing employees.

●● Baseball Team Culture: The baseball team’s culture priorities the staff as the most
Notes
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significant component of the company. Employees are an organization’s true
assets, and they play a critical part in its success. People in such a culture are
more sophisticated and less concerned about their company. This is a tradition
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followed by advertising agencies, event management organisations, and financial
institutions.
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●● Team Culture: Club culture organisations place a greater emphasis on the people
they hire. People are hired based on their academic credentials and hobbies.
Everyone performs their finest work. Employees with the potential to be high-level
are promoted accordingly, and analysis is a regular aspect of the culture.
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●● Fortress Culture: Employees in some firms are unsure about their jobs and future
prospects. These organisations are modelled like fortifications. If the company
does not function well, employees are fired. When a company fails, it is the people
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that suffer the most. The stock market follows a similar pattern.
●● Tough Guy Culture: Answers are important in the culture of a strong young man.
Employees’ work is closely watched and their performance is evaluated on a
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regular basis. Team leaders are assigned to answer queries and provide guidance
to team members as needed. Employees are employed on a regular basis in such
a culture.
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Bet your company Culture: Organizations that follow your company’s betting
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culture make decisions that involve a large amount of risk and the consequences
are also unexpected. The principles and policies of such an organization are
designed to address critical issues and take time to achieve results.
●● Process Culture: Employees in such a culture, as the term implies, follow the
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organization’s policies and procedures. Such firms are unconcerned about

feedback and performance evaluations. Employees follow all applicable rules and
regulations, as well as workplace policies. This is a tradition that all government
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entities observe.
●● ‘Clan’ refers to a group of related families or a group of people who have similar
interests. Small or family-owned enterprises with inherently incompatible race
cultures are prevalent. Employees, regardless of their position or circumstances,
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are kept updated.

●● Motivational work: Positive ideas and a code of conduct can create a strong sense
of purpose and the ability to drive continuously. A good organizational culture is
a self-motivating ruler for employees, a ruler that can compare their behavior,
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identify gaps, can create the power to improve.

●● Collaborative work: The strength of a group depends on the unity of the
organization, the integration of the internal structure of the organization and the
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ability to control.
●● Workplace culture also goes a long way in promoting healthy competition in the
workplace. Employees try their best to do better than their colleagues and gain
the recognition and appreciation of management. It is the workplace culture that
(c
motivates employees to work.

●● A common structure where people from different fields, academic qualifications,

interests and vision come together and use their skills to earn money is called
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organization. The effectiveness of an organization depends on the efforts of
each individual. Each person should give as much as he or she can in order to
accomplish the tasks he or she will need.
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●● Employees who work full-time in any particular organization tend to make certain
rules and follow certain policies such as their comfort and consistency. Such
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policies and procedures developed by employees over a long period of time to
make the workplace a more enjoyable and creative environment. Culture often
gives employees a sense of direction in the workplace.
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●● Compared to the basic assumptions, the values are higher in recognition and
reflect the ideas assigned to members as ‘the way things should be’. When we say
‘opinion’ it means that when it comes to imitation, these members may or may not
act according to their own principles. Values help organization members classify
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situations and actions as undesirable or desirable.
●● Proper considerations of human relationships, appropriate ways of distributing
power and responsibilities, related affiliate relations compared to competition,
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individual independence or team cooperation, which is the basis of leadership -
even if it should be a traditional authority.
●● Work culture is a way of life or project-based, and its accompanying framework
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can be better represented as a web. Few hair strands on the web are stronger or
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thicker than others, and more strength and impact can be found on the web, in the
folds. Work cultures are often linked to organizations using a matrix or perhaps
project-based building projects.
●● Continuing to train all staff will help the team feel more confident in their work.
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Next, this will help to make patients more comfortable with the services offered.
The teaching staff includes departmental training and training for their positions,
as well as various training where possible, which enhances the team’s status and
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helps employees realize that they are working together.

●● The company’s culture, especially during its early years, is bound to be based
on the personality, background, and values of its founder or founders, as well
as their vision for the future of the organization. When entrepreneurs start their
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own business, the way they want to do business determines the rules of the
organization, the structure of the company, and the people they hire to work with.
●● Founder values become part of the business culture to the extent that it helps the
company succeed. For example, Ben and Jerry’s public service was introduced to
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the company because the founders strongly believed in these stories.

●● Differences in lifestyle, beliefs, customs and laws between different countries,
religions, communities and individuals. Many people consider culture to be an all-
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encompassing group. , E, like! Americans, we must deal with cultural differences

in our daily lives. Cultural differences often lead to humorous disagreements, but
they can also have a profound effect on one’s work.
Glossary
(c
●● Belief System: Belief System is the way in which a culture collectively constructs
a model or framework for how it thinks about something. A religion is a particular

kind of belief system. Other examples of general forms of belief systems

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are ideologies, paradigms and world-views also known by the German word
Weltanschauung.
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●● Globalization: A disputed term relating to transformation in the relationship
between space, economy and society. The International Monetary Fund defines
globalization as “the growing economic interdependence of countries worldwide
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through increasing volume and variety of cross-border transactions in goods and
services, free international capital flows, and more rapid and widespread diffusion
of technology”.
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●● Stereotypes: Stereotypes (or “characterizations”) are generalizations or
assumptions that people make about the characteristics of all members of a group,
based on an inaccurate image about what people in that group are like.
●● Capitalism: Economic or socio-economic system in which production and
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distribution are designed to accumulate capital and create profit. A characteristic
feature of the system is the separation of those who own the means of production
and those who work for them.
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●● Attachment Theory: A theory of the formation and characterization of relationships
based on the progress and outcome of an individual’s experiences as an infant in
relation to the primary caregiver.
●●
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Prejudice: Over-generalized, oversimplified or exaggerated beliefs associated with
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a category or group of people. These beliefs are not easily changed, even in the
fact of contrary evidence.
●● Simulation: A research method that tries to imitate crucial aspects some real-world
situation in order to understand the underlying mechanism of that situation.
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●● Cultural values: The individual’s desirable or preferred way of acting or knowing

something that is sustained over time and that governs actions.
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●● Nationalities: Ethnic groups that have, once had, or wish to have or regain,
autonomous political status (their own country).
●● Myth: Story told in one’s culture to explain things like the creation of the world, and
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the behaviour of its inhabitants.

●● Trait: Describes regularities in behaviour, especially with reference to an
individual’s personality.
●● Wealth: All a person’s material assets, including income, land, and other types of
m
property. It is the basis of economic and often social status.

●● Strength: Power, status or resources associated with a social influence agent in
social impact theory.
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●● Westernization: The acculturative influence of Western expansion on native

cultures.
●● Qualitative Research: Qualitative research involves the gathering of data through
methods that involve observing forms of behavioure.g., conversations, non-verbal
(c
communication, rituals, displays of emotion, which cannot easily be expressed in

terms of quantities or numbers.

●● Paradigm: Paradigm is the set of fundamental assumptions that influence how

Notes
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people think and how they perceive the world.
●● Uncertainty Avoidance: Uncertainty Avoidance is one of the Hofstede dimensions,
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which he defines as “the extent to which the members of a culture feel threatened
by uncertain or unknown situations.”
●● Sub-Culture: A part or subdivision of a dominant culture or an enclave within it with
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a distinct integrated network of behaviour, beliefs and attitudes. The subculture
may be distinctive because of the race, ethnicity, social class, gender or age of its
members.
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●● Indigenous Peoples: Those peoples native to a particular territory that was later
colonized, particularly by Europeans.
●● Helping Behaviour: Prosocial behaviour that benefits others more than the person.
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Different from prosocial cooperation, in which mutual benefit is gained.
●● Diffusion: Diffusion is the borrowing of cultural traits between societies, either
directly or through intermediaries.
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●● Cross-Cultural Communication Skills: Cross-Cultural Communication Skills refers
to the ability to recognize cultural differences and similarities when dealing with
someone from another culture and also the ability to recognize features of own
behaviour, which are affected by culture. r
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1. _____________ is defined by shared attitudes, beliefs, customs, and written and
unwritten standards that have evolved over time and are accepted as valid.
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a) Environment
b) Culture
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c) Surrounding
d) Life
2. Respect should be something that happens on a ___________, not just on special
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occasions or anniversaries, if you want it to become part of your culture.

a) Monthly basis
b) Weakly
c) Regular Basis
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3. _________________ may emerge if an employee’s viewpoint differs from the
)A
company’s culture.
a) Internal Conflict
b) External Conflict
c) Misunderstanding
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d) All of the above

4. _____________ is thought to be a vital aspect in attaining long-term profitability and

Notes
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corporate success, and information difficulties are inextricably tied to company culture.
a) Learning
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b) Thinking
c) Lesson
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d) Knowledge
5. Clients and external organisations are prioritised in the pragmatic culture. In a
pragmatic culture, _________________ is the most important factor.
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a) Employee Satisfaction
b) Customer Satisfaction
c) Managerial Guidelines
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6. An _____________ culture drives many start-ups and technological organisations,
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such as Apple, Google, and Facebook, since it allows them to develop.
a) Collaborative Culture
b) Purpose Culture
c) Adhocratic Culture
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d) Complete Culture
7. ____________ is critical to the success of these organizations, so there is an ongoing
need to be more innovative and find new or improved products on the market ahead
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of their competitors.
a) Innovation
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b) Upgrading
c) Evaluation
d) All of the above
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8. A _____________ includes employees from a variety of backgrounds, families and

with different mental and emotional states.
a) Functional Culture.
b) Team Culture
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c) Work Culture
d) Organisational Culture
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9. The cultural models of the organization play a major role in the success - or failure -
of any ___________.
a) Firm
b) Office
(c
c) Company
d) Workshop
10. The energy level indicator means the difference in the work culture in terms of the
Notes
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power given to ___________.
a) Employee
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b) Worker
c) Daily wage worker
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d) Businessmen
11. Having a healthy company culture promotes harmony and promotes ___________
throughout the organization.
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a) Motivation
b) Inspiration
c) Respect
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d) Position
12. ____________ are an alternative to maintaining the organization’s culture and
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should take place at least once a year without annual staff assessments.
a) Negotiation
b) Bargaining
c) Pitching
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Exercise
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1. Explain the Concept of Organisational Culture?

2. How many types of Organisational Culture?
3. What is the Strength of Organisational Culture?
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4. Describe the Functions of Organisational Culture.

5. Explain the importance of Culture to the Organisation.
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6. How Organisational Culture Impacts Performance and Satisfaction?

7. Describe Edgar Schein’s Model of Organisational Culture.
8. What is the Hofstede Model of Organisational Culture?
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9. Explain Handy’s Types of Organisational Culture

10. How are Cultures Created and Maintained?
11. Explain Cross Cultural Issues and Perspectives
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Learning Activities
1. How organisational culture affect work place of the company?
2. Prepare a PowerPoint presentation on functions of Organisational Culture.
(c
3. Prepare a case study on different organisation and their different culture.


Notes
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1. (b)
2. (c)
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3. (a)
4. (d)
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5. (b)
6. (c)
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7. (a)
8. (c)
9. (c)
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10. (a)
11. (b)
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12. (a)

1.
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Madhavan: Cross Cultural Management, Oxford University Press, 2016 Edition.
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2. Balslev Anindita N.: Cross-Cultural Conversation, Taylor & Francis, 2019
Edition.
3. Dr. David C. Thomas, Mark F. Peterson: Cross-Cultural Management, SAGE
Publications, 2017 Edition.
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m
)A
(c

Module - V: Economic, Social and Ethical Issues in

Notes
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Management
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●● Evaluating the General Environment
●● Economic Environment
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●● Social Environment
●● The Global Competitive Environment
●● Business War Game
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●● Introduction to Business Ethics
●● Stakeholders Reasons for Conflict of Interests among Stakeholders
●● Corporate Governance and Ethics
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●● Power and Politics
●● Initiatives on Corporate Governance by the Government
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Introduction
Social and ethical issues currently receive considerable attention in academic
research and professional practice in management accounting. One reason for this
development is that companies face increasing pressures to address actively concerns
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with regard to the social and environmental impacts of their business activities. As a
result, assuming responsibility for such impacts has become strategically important.
At the same time, corporate scandals and instances of ethical misconduct, such
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as the Volkswagen Emissions Scandal, the Toshiba Accounting Scandal and the
Libor Scandal, undermine public confidence in companies. In response to pressure to
conduct their business in ways that meet the requirements of sustainable development,
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companies are gradually integrating sustainability-related issues into their measurement

and control systems.
There is another reason for the rising prominence of social and environmental
issues and that is rooted in the domain of management accounting itself. The function of
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management accounting is to provide information that facilitates and influences decision-

making in companies. This function potentially involves a wide range of social and ethical
issues, including honesty in managerial reporting, standards of integrity and ethical conduct,
responsible supply chain management, and the dysfunctional effects of incentive systems.
)A
In the field of management accounting and control, as in other management

disciplines, such as strategic management, human resource management and
organizational behaviour, research on social and ethical issues has a long tradition.
At the latest with the establishment of Accounting, Organizations and Society in 1976
(c
and Anthony Hopwood’s encouragement for research on the social role of accounting
and social accounting, social and ethical issues have become important topics in
management accounting research.
This special issue seeks to provide a snapshot of research that is primarily

Notes
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concerned with social and ethical issues that touch on the spheres of management
accounting and control. Although we are well aware of the interactions and potential
trade-offs between economic, social and environmental issues in the context of
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sustainability, we decided to focus this special issue on social and ethical aspects.
While economic issues have always been at the core of management accounting
research and environmental issues started attracting considerable interest from
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accounting scholars from the late 1990s onwards, social and ethical aspects have
remained on the margins of management accounting research.
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5.1 Adaptation to Changing Environment in General and
Economic Environment
Adaptability necessitates change. Individuals, communities, and organisations alter
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their activities, life lessons and settings to take advantage of new opportunities, making
adaptation a frequent practise in the human world. However, due to negative external
developments, adaptation is frequently forced into societies and habitats. Efforts to
si
adapt to these changes frequently include lowering risk and enhancing adaptability,
in fact, improving the resilience of people, places and lifestyles. However, much of
the theoretical and practical research on resilience comes from a different academic
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perspective than that of adaptation.
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In this chapter, we look at the relationship between resilience and adaptation in
the context of evolution. We examine how resilience offers new or distinct approaches
to understanding adaptation and examining tactics for promoting change adaptation.
Based on contemporary governance research, adaptability, and robust response
tactics, we believe that adaptation to local change is best planned as a systemic
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challenge.
5.1.1 Evaluating the General Environment

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The environment of the organisation comprises aspects that can be easily altered
as well as factors that may be beyond its control. The final group of objects is said to
reside in a natural setting. Managers should keep watch of trends and events as they
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develop and strive to anticipate the effects of these trends and events since the general
environment has a substantial impact on organisational success.
Managers can use PESTEL analysis to arrange aspects in a shared environment

and understand how these factors affect industries and enterprises within it. PESTEL
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is an anagram, which means it’s a word made up of bits and pieces of other words.
PESTEL breaks down the six elements of a shared environment into six categories:
1. Political
)A
2. Economic
3. Social
4. Technological
(c
5. Environmental
6. Legal

Wise executives evaluate each of the six components for key possibilities and
Notes
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risks, as well as to fine-tune their company’s strategies.
●● P means “Politics”
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The political section focuses on the government’s role in shaping the business.
This category includes tax policies, changes in trade and tax restrictions, and
government stability (see Figure 3.4 “Political Factors”). Immigration policy is part of a
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broader local politics that has far-reaching implications for a variety of organisations.
What should be done about the heated debate over illegal immigration from Mexico to
the United States? Some hospital administrators have stated that immigrants illegally
O
suppress the healthcare system because they rarely pay for medical treatment and
hospitals are unable to legally evict them from the emergency room.
Proposals for business assistance are frequently included in political campaigns.
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Meanwhile, farmers argue that tightening immigration laws is risky because
farmers rely heavily on low-wage jobs obtained by illegal immigrants. Farmers, in
particular, would face significant increases in vegetable prices if they were forced to hire
si
only legal workers. Subway and other restaurant chains then pay exorbitant prices for
lettuce, tomatoes, and other perishables. Subway will then have to decide whether to
absorb these costs or pass them on to customers in the form of an additional fee for
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subscribers. Any changes in immigration policy will have an effect on hospitals, farmers,
restaurants, and a variety of other organisations.
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●● E for “Economic”
The economic sector is concerned with the economic conditions in which
businesses function. It takes into account a variety of variables, including interest rates,
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inflation rates, gross domestic product, unemployment rates, underused inflation rates,
and general growth or recession. The late-2000s economic crisis had a catastrophic
effect on numerous organisations. Consumers are finding it more difficult to purchase
U
expensive, non-essential products such as vehicles and televisions as a result of

increased unemployment. During the economic crisis, bank failures resulted in a severe
collapse of the credit markets. This harmed homeowners significantly as the demand
for new housing dwindled as it became more difficult to obtain a mortgage.
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Certain firms, on the other hand, prosper during times of adversity. Retailers
offering huge discounts, such as Dollarama and Walmart have seen a spike in client
traffic as people look for methods to amass wealth. Similarly, eateries such as Subway
provide reduced costs to attract consumers, while high-end establishments such as The
m
Keg work hard to retain them.

)A
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Notes
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Figure: PESTEL
●● S means “Social”
)A
Ketchup was a staple in every American pantry a generation ago, while salsa was
a foreign concept. In the United States, however, food makers now sell more salsa than
ketchup. This shift reflects the social aspects of everyday life. Demographic changes,
such as age and ethnic mix, as well as cultural standards, such as attitudes about
(c
obesity and consumer enthusiasm, are all social variables. Salsa’s increasing popularity
reflects the expanding number of Latinos in the United States over time, as well as
other ethnic groups’ embrace of Latin food.

Changes in social status can sometimes occur from unexpected places. Prior to
Notes
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WWII, the majority of American labourers were men. When millions of men were sent
to Europe and Asia for military service, however, the organisations had little choice but
to rely significantly on women. Many leaders’ attitudes toward women were surprising
in
at the time. Consider the following recommendations from male bosses of female
employees published in the July 1943 issue of Transportation Magazine:
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Older women who have never interacted with the community find it difficult to
adjust and are shy and argumentative. It’s usually a good idea to remind elderly ladies
of the value of friendship and respect.
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Girls who are “husky” - those who are mildly affected - are more aggressive and
efficient than their younger sisters, according to common experience.
Allow enough rest for all of the girls during the day. You must make arrangements
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for the psychology of women. If the female can keep her hair clean, put on new lipstick,
and wash her hands multiple times a day, she will feel more confident and effective.
These malevolent superstitions clashed with the significant donations of female
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labourers during the war. Women’s main function in the assembly of planes, ships,
and other military equipment was to support the military, but their achievements also
influenced the ideas of many male leaders about what women could do in organisations
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if given the chance. Although workplace inequity still persists today, present attitudes
about men and women in the office are far more positive than they were in 1943.
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The broad acceptance of women in the workplace has offered major opportunities for
particular firms in addition to being a positive social change. Women’s business wear
is sold at stores like Talbot’s and Dillard’s. When time constraints force double-paid
families to buy food rather than cook at home, Subway and other businesses benefit.
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●● T means “Technology”
The technology component focuses on the creation of science-based products
U
and services. Changes in the level of new product creation, increasing automation,
and improvements in service delivery are all related factors. The ever-increasing rate
of invention is one of the hallmarks of the modern period. Gordon E. Moore, the founder
of Intel, coined the term “Moore’s law” in 1965. Moore’s law states that every two years
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the efficiency of microcircuit technology nearly doubles. Since its inception, this law has
shown to be extremely accurate.
Moore’s law also implies that electrical gadgets will become smaller but more
powerful over time. In a variety of situations this creates substantial opportunities and
m
hazards. Take, for example, photography. Digital cameras were rather large and created
intermediate images just ten years ago. Digital cameras, on the other hand are getting
smaller, easier and better with each passing year. Digital cameras, compact laptops
)A
and gadgets from Panasonic for example, have all established strong market positions
today. The Kodak film legend was obliged to discard goods that had been successful for
decades at that point. The company declared in 2005 that it will no longer make black
and white photographic paper. The Kodachrome colour film was completed four years
later.
(c
In addition, successful innovations are being adopted at a faster rate than in earlier
generations. In just four years, the Internet has grown to 50 million users. Television,

on the other hand, only took thirteen years to reach the same number of users as
Notes
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radio, which lasted 38 years. Organizations that rely on developing technology will
benefit greatly from this strategy. Apple iPad apps and other tablet devices for example,
can track an ever-increasing number of users. Organizations that rely on detachable
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technology, on the other hand, should be conscious that consumers can abandon it
more quickly. The demand for cable modems may lessen if more Internet users rely on
Wi-Fi services, for example.
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While the impact of technology on technology-based companies like Panasonic
and Apple is obvious. Low-tech enterprises are being shaped by trends and technology
events. Subway began its Subway. Customers can use this service to place orders in
O
advance via text message and avoid waiting in line at the store. Subway is responding
to a trend in the local community by offering this service: the urge to save time in
today’s fast-paced culture.
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●● E means “Environmental”
The environmental component refers to the physical environment in which
businesses operate. It takes into account variables such as natural disasters,
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pollution levels, and climate. For example, the danger of contamination has compelled
communities to chemically clean their water. The food additives improve the safety of
drinking water but impair its taste. This has facilitated the growth of enterprises that
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produce better-tasting water. Rather than drinking inexpensive, pleasant tap water,
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many customers purchase bottled water..
As is the case with many businesses, bottled water producers have benefitted
from but also been threatened by the general public. According to some estimates,
80 percent of plastic bottles wind up in landfills. As a result, some customers have
ni
developed an addiction to crack cocaine. Meanwhile, water filtration devices such as

those supplied by Brita and other businesses are a relatively inexpensive option to
obtain clean, fresh water.
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These solutions are also critical for individuals who feel the need to cut costs as
a result of economic difficulties. While the natural environment provides chances for
bottled water companies (particularly the spread of unsafe water to combat pollution),
they also face risks from the social sector (the social conscience of some consumers)
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and the economic component (financial concerns of other consumers).
● L By the word “Legal”

The legal factor examines the impact of the courts on business. Employment laws,
m
health and safety regulations, anti-discrimination laws and anti-corruption laws are all
examples of significant legal issues.
Intellectual property rights are a worrisome aspect of many corporations’ legal

)A
departments. Intellectual property is created when a studio like Pixar makes a film, a
software firm like Adobe updates a programme or a video game company like Activision
creates a new game. These companies strive to make money by selling copies of
movies, programmes and games to the general public. Intellectual property fraud or the
(c
act of others making and selling unauthorised copies of one’s work, is a severe danger
to such benefits. Many countries like the United States have law enforcement agencies
and courts that help businesses safeguard their intellectual property from criminals.

In other nations, such as China, intellectual property theft is common. Three other
Notes
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common denominators contribute to crime’s seriousness. To begin, China is the world’s
most populous country in terms of socioeconomic class. Second, China’s wealth is
growing at a rapid pace. Third, the rapid growth of computers and communication has
in
made robbery more technologically feasible over time. As a result of these extensive
differences in nature, criminality has become a significant source of discomfort for firms
that generate revenue through intellectual property.
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5.1.2 Economic Environment
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All international economic elements that influence consumer and corporate
purchasing behaviour and hence have an impact on a company’s operations are
referred to as an economic zone. These elements are frequently outside of a company’s
control and they can be significant (great) or little (small) (small).
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The term “economic condition” refers to all components of the economy that
have an impact on business and consumer behaviour. All external influences in the
immediate market and the wider economy are included in the economic situation.
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These elements can have an impact on how a business functions and how effective it
can be.
For different people, the economic position consists of diverse aspects. The
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weather and fertiliser prices for example are key concerns for a farmer.
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On the other hand, the expansion of internet advertising is highly essential in
a TV channel but not the weather. The Internet competes with the advertising sector.
Internet advertising is crucial to a television station. The farmer, on the other hand, is
unconcerned by advertising medium.
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Figure: Economic Environment

m
Significant characteristics include:

a. employment / unemployment
)A
b. Net worth
c. inflation
d. rates of interest
e. taxation rates
(c
f. rate of currency exchange

g. rates of savings
Notes
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h. levels of consumer confidence
i. the economic downturn
in
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O
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Figure: Factors in Economic Environment
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Microeconomic Factors:
●● Competitors - One selling or buying goods or services in the same market as
another. r
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●● Demand - An act of demanding or asking especially with authority.
●● Market Size - Market size is the total number of likely buyers of your product or
service within a given market. This information can be particularly useful to
businesses and entrepreneurs looking to invest in new products.
ni
●● Supply - the quantity or amount (as of a commodity) needed or available

●● Suppliers - A person or organization that provides something needed such as a
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product or service.
●● Distribution channel - A distribution channel is a chain of businesses or
intermediaries through which a good or service passes until it reaches the final
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buyer or the end consumer. Distribution channels can include wholesalers,

retailers, distributors, and even the internet.
Macroeconomic Factors:
●● Unemployment - Unemployment, the condition of one who is capable of working,
m
actively seeking work, but unable to find any work. It is important to note that to be
considered unemployed a person must be an active member of the labour force
and in search of remunerative work.
)A
●● Inflation - Inflation is the decline of purchasing power of a given currency over

time. A quantitative estimate of the rate at which the decline in purchasing power
occurs can be reflected in the increase of an average price level of a basket of
selected goods and services in an economy over some period of time.
(c
●● Interest Rates - The proportion of a loan that is charged as interest to the

borrower, typically expressed as an annual percentage of the loan outstanding.

●● GDP - Gross domestic product (GDP) is the total monetary or market value of all
Notes
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the finished goods and services produced within a country’s borders in a specific
time period. As a broad measure of overall domestic production, it functions as a
comprehensive scorecard of a given country’s economic health.
in
●● Exchange Rates - An exchange rate is the value of one nation’s currency versus
the currency of another nation or economic zone.
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●● Consumer - Consumers can be either an individual or group of people who
purchase or use goods and services solely for personal use, and not for
manufacturing or resale.
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●● Confidence - Consumer confidence, an economic indicator that measures the
degree of optimism that consumers have regarding the overall state of a country’s
economy and their own financial situations.
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What are the Economic Factors?
Economic factors affect the economy, including interest rates, tax rates, laws,
policies, wages, and governmental activities. These factors are not directly related to
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the business but influence the investment value in the future.
Examples of Economic Factors

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There are multiple examples of economic factors. Some of them are as follows: –
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1. Tax rate
2. Exchange rate
3. Inflation
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4. Labor
5. Demand/ Supply
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6. Wages
7. Law and policies
8. Governmental activity
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9. Recession
The following are the features for development of Economic environment:

a. the size of the available market
m
b. the demand for the company’s products or services

c. competition
)A
d. supplier availability and quality

e. the company’s distribution chain’s dependability (i.e., how it receives products from
customers)
While businesses rarely have control over their economic circumstances they can
(c
assess economic conditions prior to entering a certain market or industry or pursuing

other tactics.

5.1.3 Social Environment

Notes
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The ideals, beliefs, custom and practises of a group of people are all included in a
public area. The external social environment as well as the internal social environment
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affects the firm. Both risk and business opportunities are present in the external
environment.
Every community area that has an impact on a project is referred to as the social
nl
environment. It has aspects to do with human interactions.
The community is the focus of the projects. Ensure the community’s requirements
are met. The procedures and activities of a project are influenced by social
O
considerations.
Demographics, community institutions, repressed groups and social change are all
important aspects of the social environment to consider.
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Figure: Social Environment
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Factors in Social Environment

i) Demographics: Demographics refer to the size and distribution of the population.
Size, distribution and population growth in the project region are statistical strengths
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that affect personnel availability in projects.

●● A diverse group of people of various ages
●● Human migration is a complex phenomenon
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●● Employment policies in other countries

ii) Social Centers: This category includes referral groups as well as community groups.
●● Reference Groups: These are organisations that have a direct or indirect
m
impact on the attitudes and behaviours of people with responsibilities or who

work in the field.
●● Social Category: A social category is a social level that is determined by its
)A
members. It is separated into three sections: upper, middle, and bottom.

Members of the class share similar interests, values, and values. Community
classes have an impact on project activity. Projects must tailor their operations
to fit the requirements of certain community groups.
iii) Pressure Groups: These are special interest groups. They take use of the political
(c
process in order to strengthen their position on social concerns. They put pressure on
governments and projects to change laws, regulations and processes to safeguard
their interests.
Oppressive groups: Consumer exploitation, environmental protection, human

Notes
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rights, women’s rights and decent governance are all examples of oppressive groups.
iv) Social Change: Things change as a result of change. A shift in social
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relationships and behaviours is referred to as social change. Social change is aided by
lifestyles and social conventions.
A lifestyle is a way of life expressed by one’s actions, interests, and viewpoints. It
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has an impact on product selection.
5.1.4 The Global Competitive Environment
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Organizations must now compete not just in their ability to penetrate new markets
and achieve a greater quality of living, but also in their ability to efficiently manage
the flow of knowledge in a knowledge-based economy, due to the current condition
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of global competitiveness. Furthermore, issues are being addressed in the pursuit of
global efficiency, local responsiveness and practical information and knowledge transfer
across sub-companies in order to increase competition (Hill, 2011).
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International Businesses (MNEs) adopt international tactics that seek to harness
new global developments but lack the flexibility and efficiency that prevents them from
responding locally, such as General Electric (Barlett and Beamish, 2011). Firms that
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are closer to a multi-home model such as Philips, have stronger local replies but have
difficulty transferring knowledge and skills across all locations (Barlett and Beamish,
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2011). MNEs have chosen the global strategy as a result of high inclusion and rigorous
control over their operations from Head Office, which has inhibited product modification
to satisfy local needs as Matsushita (Hill, 2011) Increasing competitivenessis insufficient
to meet the difficulties that today’s global environment presents (Hill, 2011). No firm can
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generate world-class knowledge and understanding to advance towards a competitive

market by focusing simply on the local environment (Barlett and Beamish, 2011). As a
result, MNEs’ most recent challenge is to generate and communicate knowledge while
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also increasing innovation and learning (Bartlett and Beamish, 2011). As a result, other
firms are moving forward in an international manner in order to acquire these talents;
yet, the industry and management asset that each firm possesses frequently obstructs
the successful application of the international framework.
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The Nature of the International Model

At the same time other resources are being developed that require local
remediation or that can be outsourced, which is a global / local problem that cannot be
m
eradicated; at the same time, other resources are being developed that require local
remediation or that can be outsourced, which is a global / local problem that cannot
be eradicated (Cave, 1998). As a result, the requirement to connect its global value
)A
chain and transfer important talents to all of its subsidiaries must be incorporated
into other sectors, such as Research and Development (R&D), in order to not only
decrease costs but also protect basic skills and basic technologies from competitors
(Barlett and Beamish, 2011). Product change then again necessitates local response
therefore allocating other services such as marketing. It is critical so that fewer national
(c
enterprises can be more flexible in meeting local demands.

There is a need for an organisation that can listen to client preferences in one
Notes
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country, connect you to developed services in another country, and disseminate it
internationally in order to create the ability to innovate in a fast-paced environment.
Subsidiary companies are an international corporate solution that allows for redesigned
in
and connected connections on a local level (Barlett and Beamish, 2011).
In order to establish a multi-faceted organisation, the decision-making process
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should be balanced between global and national managers, taking into consideration
the skills and influences of country managers. For the entire company to benefit from
this technology each subordinate company must be responsible for a specific task
that must be shared with the rest of the organisation so communication channels,
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management systems and information flow must be changed to foster coherence
and cooperation between companies and avoidance of repetitive efforts (Barlett and
Beamish, 2011).
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The ultimate goal is to have access to and make effective use of all of the
company’s resources around the world, including global expertise as well as
confidential local information (Barlett and Ghoshal, 1989). This will result in the creation
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of a multifaceted and adaptable organisation with high reliance across subsidiaries
maximising competitive advantage.
According to Barlett and Ghosal (2002), a business should assess the industry’s
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nature and prospects as well as the competitive environment in which it works. Unilever,
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for example, studied the packaged products industry and discovered that by combining
a well-developed company’s capacity to hear and respond to local branding with new
strategic characteristic. It was able to achieve competitive profit. Consequently, not only
the surroundings must be taken into account but also the company’s creative capacity
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and most crucially the ability to manage such abilities.
When the company’s industry becomes multinational another alternative for

adopting an international model arises. By establishing businesses in other countries
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companies can swiftly develop sensitivity and responsiveness to global markets while
also controlling expenses. Finally, all factors must be studied prior to the deployment of
the international model in order to promote the change of the thinking process resulting
in the creation of a “matrix in management minds” (Barlett and Ghosal, 2002).
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Due to organisational issues achieving an international model is not an easy

process. Organizational structure and strategies are complex and demanding for
management.
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Information Transmission Challenges

Hurdles and barriers to information transfer may provide substantial challenges to
a corporation that employs an international framework to find and disseminate strategic
)A
information as one of its main competitive advantages. Problems with data transfercan
be beneficial to the organisation because external communication methods are less
likely to perform better than internal communication methods. In order to increase the
number of international workers effective information transmission mechanisms are
required (Bartlett, 1986).
(c
The company’s intellectual property can be broken down into people’s finances,
structures and relationships. Information can be idiosyncratic (low value, high

variability), consistent (low value, low variability), core (high value, high variability) or
Notes
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obligatory (high value, high variability) (high value, low variability). The foregoing is
critical knowledge that has been shared with a multinational corporationbut it is also
extremely difficult to relay, owing to its quiet.
in
Confidential information (Ordonez de Pablos, 2006), on the other hand is more
difficult to convey because it only exists when certain people cooperate. For example,
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a marketing department in a subordinate company may have valuable information
but each individual will only contribute a portion of it. To communicate this type of
knowledge, a lot of conversation and engagement is required.
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Sluzanski (1996) identified a number of reasons why the transfer of intellectual
property failed including the information’s features, source, destination and substance.
These include challenges such as local government officials’ hesitancy to accept
change, information complexity, low unit absorption power and lack of information in
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local contexts. The companies under Philips following the multi-industrial structure in
which the administrators of the countries were very powerful and the firm was severely
split to implement the changes effectively were an example of the difficulty of accepting
si
change. Many senior executives devote the majority of their time on national projects,
which has harmed management attitudes and organisational relationships as well as
communication between subordinate firms.
The Role of Regional Headquarters

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Using regional headquarters simplifies the process of delivering information and
eliminates other types of issues (RHQ). Most large MNEs have regional divisions, which
are generally labelled as local, European, Asian and so on. Toshiba, Sony, Samsung
and other high-tech businesses for example, have re-organised their organisations
ni
to give them more responsibility and influence. According to this structure the RHQ is
located between the national units focusing on the area and the global headquarters
based headquarters (HQ) giving it the ability to develop long-term regional strategies
U
while also controlling and evaluating the performance of individual units within the
building (Yongsun and Sohn, 2004).
Some administrative responsibilities are allocated to RHQs and the higher

ity
authorities. These administrative functions allow management efforts to be

concentrated across the region rather than being distributed among individual
regional units as in the Philips example. RHQs can also serve as a filter between
sub-companies and HQ, which is why they can assist simplify the structure of the
international model matrix and set a link clear, well-defined objectives across the
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organisation (Doz and Prahalad, 1990).
Any conflicts that develop in local enterprises can be resolved at RHQ, which
)A
will then send HQ a more concise and comprehensible set of needs. This will avoid
any confusion that may develop if HQ is overburdened with competing demands
in instances where HQ is short on information. Therefore, RHQ promotes optimal
information flow inside the organisation facilitating the implementation of a worldwide
strategy and assisting in the attainment of the ideal blend of globalisation and local
(c
practice. Furthermore, streamlining operations with a single RHQ in each location helps
the company to reduce management levels resulting in increased productivity (Yongsun
and Sohn, 2004).

Developing More Information on Emerging Economics

Notes
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Large and profitable enterprises rarely operate across borders unless they
have access to major global markets like China and India. However, good tactics in
in
industrialised countries frequently fail in emerging markets due to unique characteristics
and limitations. One of the causes is that, in contrast to the Western world, where the
middle class reignsthe majority of the population in these countries is divided between
nl
the lower and upper classes with the middle class being significantly smaller. As a
result, corporations may seek to develop additional tactics in order to reach more clients
in the same country.
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International efficiency techniques, national responsibility and information sharing
may not be adequate for a company to compete in the market if it takes an international
strategy. A new skill, community focus (London and Hart, 2004), should be developed to
enable MNEs to utilise the power and knowledge obtained by functioning on the basis
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of pyramid markets (Prahald and Hart, 2002). As the possibility for learning throughout
the world is proposed this ability allows for the production of fresh information rather
than the search for current knowledge within the organisation.
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Strong Evidence
Numerous authors in the books have devised various models for determining
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whether or not a global corporation exists. Following a review of corporate-affiliated
connections it was discovered that each subsidiary firm serves a unique function
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necessitating a unique regulatory strategy for each. Leong & Chin’s (1993) study
of data for several categories in Bartlett and Ghoshal’s’system’ yielded two key
conclusions (1989). First, administrators who identify their organisations as international
failed to meet all of the typology criteria.
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This could indicate that, while the management perceives itself to be an

international organisation they do not meet the standards established by such a
corporation. Second, most domestic companies were the most common encounters
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in the revised sample followed by international and international brands and the less
obvious organisation structure discovered to be an international form.
MNEs, according to Harzing and Noorderhaven (2006) are closer to the proper sort
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of multinational firm because their robust trials revealed improved differences between
sub-companies as well as enhanced information and product flow among subsidiaries.
According to Marin and Bell (2010), sub-companies have a new strategy that involves
both the local economy and their headquarters. They however, do make up a minor
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portion of all sub-companies with ties to the local economy and their headquarters.
Furthermore, research shows that subsidiaries wthat are tightly linked to the
headquarters create more new jobs than subsidiaries that are tied to the host economy
)A
in industrialised countries (Marin and Bell, 2010). These findings lead us to the
conclusion that communication and information transmission have varied requirements
in various contexts and situations. Furthermore, there is a lack of synergy between
subsidiary enterprises, which inhibits innovation.
(c
In winding up, although the authors of the most recent study imply that
wenterprises are nearing an international model it is clear that this is not the case. Few
businesses can meet all of the requirements for a pure organisational form. Obviously,

the manager’s decisions on where you will be placed and how you will be treated
Notes
e
for each job will have an impact. They can build a hybrid model that best meets their
circumstances and the trading of some cost benefits rather than accepting a pure form
of organisation if they are unclear about the definition of the model and its key elements
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as stated by the contrary study of Leong & Chin (1993).
Management Impacts
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Companies must devise strategies to deal with the market’s changing business
climate. The management of rising complexity and diversity as a result ofglobalisation
is a difficult undertaking. Global competition, national responsiveness and innovation
O
are all becoming increasingly important; organisations must compete effectively.
Working groups, committees and project teams when employed properly may handle
the distribution of responsibility and authority. Organizational physiology or the flow
of information can be maintained by maintaining formal and informal relationships
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between managers as well as communication routes (Barlett and Ghosal, 2002).
Formal meetings that assist decision-making and negotiating procedures have less
influence than informal cooperation among members of an international organisation.
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To flow to an integrated network of international models and reach diverse
locations a huge volume of information exchange must take place in a well-planned
manner This can be accomplished by keeping the information forum current in order
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to fulfill the growing need for programme planning and management. According to
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Barlett and Ghosal (2002), informal methods used to establish an organisation’s natural
science can create a network of resources, feed streams, connecting channels and
shortcuts for obtaining information, which modifies decision-making processes and
contributes to their outcomes.
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Given the diversity of international organisations’ workforces, shared management

is frequently a more effective communication tool than structure or procedures (Barlett
and Ghosal 2002). Senior management’s role should be taken seriously because it
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has a substantial impact on business culture and employee ethics. National managers
should prioritise local needs, while global and international managers should monitor
competitors’ progress and coordinate internal information and information flow. (Barlett
and Beamish, 2011)
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A strong business culture is required for the development of an integrated network

(Hill, 2011), as well as for the expansion of knowledge among the firm’s visionary and
operational employees (Barlett and Beamish, 2011). Senior international managers
must ensure the transparency of domain authority and the equitable distribution of
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work (Barlett and Ghosal, 2002). To minimise the likelihood of conflict, all levels of
management must have the ability to speak out; the organisation must also ensure
that no commitments are piled on top of one another. Conclusion-making tasks vary
)A
in breadth and perspective, and they should be managed according to appropriate

management standards or merged to obtain the institution’s best choice.
According to Barlett and Ghosal (2002), employee policies are used to support
not only personal growth and teamwork but also to expedite corporate decisions and
(c
processes and to influence cultural and business values. Unilever is able to solve
conflicting but interdependent needs as a result of this adaptable management model,
which enhances interoperability across all units and dispersed capabilities.

Managers with a global mentality, who can evaluate data independently of a

Notes
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country’s assumptions and apply it to new scenarios, will be critical in developing long-
term relationships. Managers must possess a diverse aptitude for integrating cultural
decisions and strategies into domestic and international markets in order to achieve a
in
global concept; this will aid in the creation of a very varied and integrated organisation
(Beechler, et al. 2007). Managers should keep in mind, however, that no single
technique will work for all businesses, regardless of how well the structure has grown,
nl
because each business’s management values and operating environment are unique.
A war-game is a simulation of a business environment that typically includes a set

of market or consumer representation groups a set of competitors and a number of
O
additional unregulated characteristics or businesses. A sequence of rounds indicating
a specific period of time or stage of the programme is included. In truth all teams are
working at the same time with none of them having all of the knowledge they want
ty
about what their opponents are planning or doing right now or what is truly going on
between the unruly elements. Each team learns the repercussions of its decisions and
actions when they are joined with those of all the other factors depicted in the military
game only after the cycle is completed.
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Making a military game serves a variety of functions depending on the nature of
the corporation. It can for example, assist in the transformation of data and knowledge
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about the market, rivals and other aspects into practical wisdom that can offer genuine
value to editing quality. As soon as the problems of ‘directing awakening’ are identified,
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merely emphasise the prior effectiveness of future initiatives. War-game can provide the
exact blend of hard and gentle delivery for you. The hard effort put in during war-game
is frequently chronicled in the After Action Report, which is normally completed quickly
after war-game is completed. The participants’ “hearts and minds” changes such as
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new ideas, information and abilities generated from the role of war-game are mirrored in
the soft delivery.
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ity
m
Figure: Identifying Business War Game
Business wargaming is a group activity that allows a company to put its present
)A
strategy to the test. Business war games allow you to role-play the strategy of your
competitors before making large-scale investments, which helps you come up with
new plans and ideas. Essentially, it is role playing for business purposes. War gaming
enables you to gain a deeper understanding of your adversaries’ mentality, allowing
you to pressure test and develop new methods. It aids in the anticipation of moves
(c
and the development of countermoves. War game workshops provide a framework for
evaluating the beliefs and assumptions that exist in an organization’s entire business
environment. This could include government legislation, supplier concerns, customer
profiles, industry trends, and other determining variables. War gaming enables the
Notes
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identification of blind spots inside your company and the generation of ideas for
outmanoeuvring your competitors.
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5.2 Different Formats for the Delivery of Counseling Services
The social science topic of behaviour is linked to ethics and social standards.
nl
Business ethics is defined as the study of proper business rules and procedures
pertaining to potentially contentious topics such as business management, internal
trade, bribery, discrimination, corporate social responsibility and honesty duties.
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5.2.1 Introduction to Business Ethics
Certain fundamental principles must be followed by businesses. It must serve
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clients with high-quality goods and services at competitive pricing. It must also refrain
from adultery, deceptive advertising and other wrongdoings.
There are other definitions of business ethics, but Andrew Crane’s and Raymond
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C. Baumhart’s are the most applicable.
According to Crane, “Principles of business ethics are learning business situations,

activities, and decisions in which issues of right and wrong are addressed.”
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Baumhart explains, “Business ethics are ethical principles. An entrepreneur must
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promise that he or she will not harm knowingly.”
Features of Business Ethics

Business principles are divided into eight categories:
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1. Business Ethics - Business ethics are a type of ethics. It tells us what to do and what
not to do. This code of behaviour must be followed by businesses.
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2. It is based on ethical and social values - Business ethics is a discipline that is founded
on ethical and social principles. It establishes ethical and social business norms.
3. Protection of Public Groups - The Code of Business Conduct safeguards consumers,
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employees, small enterprises, the government, shareholders and lenders among

others.
4. Provides a Foundation - Business ethics is the foundation for doing business
correctly. Establish business boundaries in terms of social, cultural, legal, economic
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and other factors.

5. Voluntary - Participation in the Code of Business Conduct is entirely voluntary. It
should be fictitious and unenforced by the law.
)A
6. Requires Education and Guidance - Entrepreneurs should acquire adequate business

ethics education and guidance. Chambers of Commerce and trade associations
should be actively involved in this topic.
7. Related Term - A related term is the Code of Business Conduct. It differs from one
(c
business to the next as well as from one country to the next.

8. A Fresh Look - Business ethics is a fairly new notion. In terms of business principles,
developed countries are more exposed, whilst poor and developing countries fall behind.
Principles of Business Ethics

Notes
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Business ethics are concerned with community groups such as customers,
employees, investors and the local community. The following are the basic norms or
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principles of business ethics:
i. Avoid Consumer Exploitation - Do not deceive or abuse customers through practises

such as incorrect inflation or adultery.
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ii. Avoid Making a Profit - Unethical commercial practises should be avoided, such as
gathering goods, marketing, and selling prohibited or risky commodities for higher
profits.
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iii. Encourage Healthy Competition - Encourage a healthy competitive environment that
provides unique benefits to consumers.
iv. Accuracy Verification - Scale, packing and level of supply to consumers must all be
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accurate.
v. Pay Taxes on Time - Taxes and other government services must be paid on time and
with honesty.
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vi. Acquire Audit Accounting - Business records are correct but accounts must be
maintained. This information must be accessible to all authorised persons and
authorities.
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vii. Employee management - Employees should be paid appropriately and services and
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benefits should be given.
viii. Keep Shareholders and Investors Informed - Shareholders and investors should be
informed about the company’s financial and other significant choices.
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ix. Eliminate Injustice and Discrimination against Employees - Eliminate all types
of injustice and discrimination against employees. Discrimination on the basis of
gender, race, religion, language, ethnicity and other factors should be avoided at all
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costs.
x. No Bribery or Corruption - Do not give prominent people extravagant gifts,
commissions or benefits.
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xi. Reduce Confidentiality Agreements - Entering into private agreements with other
businesses to influence production, distribution, pricing and other aspects of business
is unethical.
xii. Profit Prior to Service - Understand the “service first, benefit second” principle.
m
xiii. Practice Fair Business - In order to deliver specific benefits to consumers, businesses
should be fair, humane, efficient and dynamic.
xiv. Avoid Monopoly - There should be no independent monopolies and the focus should
)A
be on economic power.
xv. Meet Customer Expectations - Tailor your business processes to meet the demands,
requirements and expectations of your customers.
xvi. Uphold Consumer Rights - Uphold fundamental consumer rights.
(c
xvii. Accept Community Duties - Community responsibilities must be respected.

xviii. Satisfying Consumer Needs - The primary goal of any firm is to satisfy the needs of
Notes
e
its customers. This should be the goal of every company action.
xix. Service Motive - Service and customer pleasure should be prioritised over profit
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growth.
xx. Resource Efficiency - Ensuring the most efficient use of resources in order to eliminate
poverty and improve people’s quality of life.
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xxi. Business Objectives - To conduct business in a legal and ethical manner. Avoid doing
anything that is illegal, dishonest or destructive.
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Woodrow Wilson’s Rules
There are four fundamental rules of business behaviour. The following are the four
rules:
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1. Advertising law - Under this guideline, a company must clearly state what it does on
a regular basis.
2. Price law – The customer must be paid the correct amount. Goods that are inferior,
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outmoded or substandard should not be sold at a high price.
3. The law of conscience in business - When it comes to business, entrepreneurs must
have a conscience or a sense of morality that allows them to evaluate what is right
and wrong. r
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5.2.2 Stakeholders: Reasons Conflict of Interests
Stakeholder conflict occurs when different stakeholders have conflicting objectives.
It is an “issue” for the company because it may have an impact on their performance
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and success.
Companies must properly control stakeholder interests in order to avoid conflict.

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Not all stakeholders are aware of the company’s strategy. As a result, businesses must
determine which ones should be prioritised. A corporation’s negative impact on the
company is reduced by efficiently prioritising and cooperating. Finally, it contributes to
the company’s long-term success by fostering a positive relationship with them.
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Reasons for Conflict between Participants

Stockholders, employees, customers, suppliers, lenders, shareholders, local
communities, and governments are examples of firm stakeholders. Who are the most
m
important players? It is dependent on the company’s business plan and the industry in
which it operates. They however do have a different stake in the company such as:
i. Dividends are appealing to shareholders but they also have the opportunity to benefit
)A
handsomely by investing in the company. They want the company to continue to

develop and earn more profits resulting in more dividends and profits handed to
shareholders.
ii. Employees and managers want increased compensation and benefits as well
as a healthy work environment viable career prospects and suitable training and
(c
development programmes. Their performance has an impact on the firm. For

managers their actions have a significant impact on the company’s success.

iii. Customers care about the company’s products, customer service and data security;
Notes
e
they want the company to provide high-quality but affordable products. Another
important factor is business ethics, which is both popular and contemporary. They
like it when businesses are socially and ecologically conscious, rather than merely
in
profit-driven.
iv. Providers are interested in the company purchasing inputs - they want companies
nl
to pay on time, order frequently and buy in volume. They dislike it when businesses
transfer to other carriers resulting in a decrease in revenue.
v. The government is interested in companies who pay their taxes on time and follow
O
the law - the government also expects corporations to run ecologically friendly
operations prevent competition and implement fair labour standards. Jobs and
successful businesses are also attracting attention in the economy.
vi. Debtors want the corporation to pay the principal and interest on time, and they do
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not want it to default on its obligations. As a result, they pay close attention to things
like firm liquidity and solvency. Another element to consider when setting the default
value is credit rating. If a company’s payment capacity is strong it will wish to sign
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additional loan agreements.
vii. Local communities are worried about the company’s job creation and want the
corporation to hire locals. They do however expect the corporation to do business
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in a way that is environmentally friendly does not cause bad external influences and
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supports local community activities.
Each person wishes to safeguard his or her own interests. They want to make
certain that their interests and objectives are met. However, meeting all of a company’s
objectives is unachievable. They frequently have to prioritize which of their hobbies
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should take precedence.
5.2.3 Corporate Governance and Ethics

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This introduction to the special issue on governance and ethics challenges

established theoretical frameworks stressing the risks and consequences and
discussing the various perspectives on companies. New approach to make a lasting
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impression on the new type of participants in governance is the formation of good

morals. As a result one of the most significant elements on which a new agreement
between various actors in the business must be created is moral ideals. Good corporate
governance is defined as the process through which corporate stakeholders attempt
to regulate collective actions via vision and for the benefit of the majority thereby
m
preventing damaging conduct and improving control over company executives’ powers
and responsibilities.
Do ethics strive to promote understanding in the realm of governance? In this

)A
context effective governance should be understood as a participative and open

management system aimed at developing frameworks and general principles for
corporate leaders by imposing transparency, accountability and professionalism
standards. As a result strong ties between ethics and governance should assist
(c
business stakeholders’ conduct themselves in an acceptable, reasonable and

consistent manner in their decisions and actions.

Nevertheless, in addition to these beneficial activities it is important to remember

Notes
e
that the organisation is a business and as such it must create value and make a profit.
Other factors should be considered such as the company’s ability to generate value for
customers and other stakeholders on an equal and responsible basis. Thanks to better
in
and ongoing adaptation of its products and services to changing market needs and
expectations. There are also special media contributions.
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A succession of business crises on both sides of the Atlantic at the turn of the
2000 reignited public interest in corporate governance and ethical debates. A series
of financial scandals rocked the US economic environment with senior executives at
Enron, Andersen and WorldCom found guilty of fraud and misconduct. In Europe too,
O
there have been several instances of bad administration. For example, in 2002, French
market regulators penalised Jean-Marie Messier, the former chairman and CEO of
Vivendi-Universal, € 1 million for financial malfeasance.
ty
Messier was also fined € 1 million by the US Securities and Exchange Commission
and forbidden from holding the post of chief executive officer or director of a US public
business for ten years as a result of his financial malfeasance. Across the Alps in Italy
si
it was revealed in 2003 that the food company and dairy Parmalat had disguised more
than 14 billion Euros in its financial records for years.
Following the discovery by Italian authorities of a series of shell companies set

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up to counterfeit Parmalat and its subsidiaries the company’s former chief executive,
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Calisto Tanzi, was sentenced to prison. In Germany, prosecutors sentenced Peter
Hartz, a Volkswagen board member to two years’ probation and a fine of € 576,000 in
2007 for his role in a fraud and corruption scandal involving former companies used by
a German car manufacturer to finance brides’ brides and members of the company’s
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work council.
Existing knowledge and governance norms have failed to stop these operational
and administrative criminals from causing actual friction between economic participants
U
and destroying a number of companies. Few factors can explain these governance
flaws such as faults in decision-making procedures, insufficient monitoring and
supervision, insufficient board member training or insufficient audits of financial records
and reports.
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Many players have been prompted to respond and alter their decision-making
and behavioural processes as a result of recent events both through the introduction
of new laws and regulations (such as the Sarbanes-Oxley Act in the United States)
and by enhancing their governance. Putting together (including clarification of role and
m
responsibilities, coordination of monitoring and evaluation procedures, accountability,

transparency of results and better training of board members, authorising codes of good
governance practices).
)A
Guillén and O’Sullivan (2004), on the other hand defined business management as
the answer to three specific questions, namely:
a. Who is in charge of the business?

b. What do they plan to do with their newfound power?
(c
c. How do they exercise their authority in terms of beneficiaries?

As a result, a variety of legal, economic, social, political and historical issues

Notes
e
influence business governance. As a result, the urge to do the right thing is a
complicated one.
in
Different perspectives on governance emerged initially in activities relating to
the division of administrative and regulatory functions (Berle and Means, 1932) and
corporate contract analysis namely transaction cost theory (Coase, 1937) and agency
nl
theory (Berle and Means, 1932). (Jensen and Meckling, 1976). As a result, it is the first
line of contractual management documents. It focuses on resolving conflicts of interest,
particularly between shareholders and executives and on lowering agency costs.
O
The purpose of management (both official and informal) under the shareholders’
model is to reduce conflict of interest, particularly between shareholders and managers.
It entailsin particular lowering agency costs as a result of uneven knowledge amongst
shareholders and the existence of an opportunistic approach with competing objectives.
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Is governance all about management and discipline? The goal of corporate ethics is to
align their actions with the interests of shareholders.
The value of shareholders is the performance indicator. Is a management system
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effective if it restricts managers’ ability to estimate value and prohibits management
action from benefiting shareholders? Shareholders are accountable for developing
organisational structures and an institutional management system that can preserve
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investment performance in this vision of managing management knowledge (Shleifer
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and Vishny, 1997).
5.2.4 Why Are Unethical Decisions Leading To Conflicts Taken?

Workplace misbehaviour should not be excessive in order to be costly. It is
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possible that corporate scandals resulting in the arrest of abusive leaders may
make the news. However, the daily inconvenient produced by seemingly tiny
misunderstandings between employees and bosses is just as bad.
U
In the United States, nearly half of the 120 million workers have admitted to sexual
misbehaviour. Misconduct on the job is rampant whether it is a common law offence
like using company time, mistreating others, lying or stealing or a violation of corporate
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Internet policies. These are the factors at play.
1. No Code of ConductIf employees do not know what is correct they are more prone
to make mistakes. They might be immoral if they do not have a code of ethics.
The code of ethics is a powerful tool for combating unethical behaviour. It creates
m
organisational values and places restrictions on their observance. Everyone is

responsible for their actions.
Fear of RetaliationPeople frequently explain why they do not disclose misconduct
)A
by stating that they are concerned about the consequences. They do not want to
jeopardise their effort or provoke the evildoer’s wrath. In some circumstances, they fail
to report the infraction because they are unsure how to do so or fear that their report
would be ignored.
The Impact of Peer PressureIt should be fine if everyone does it, right? What keeps
(c
a person from disclosing his or her costs when his or her coworkers do so without
getting caught? Immorality is a trap that many people fall into. According to experts,

people act inappropriately because they consider dubious behaviour demonstrated by

Notes
e
people like them - such as coworkers - as being more acceptable than that revealed by
persons they see as different.
in
Downhill on the Slope of the SlopeMisconduct begins on a small scale, like as a
mile report. However, if they are not properly managed, they may become disoriented
and lose their way. A few additional bucks from the milestone report could be swallowed
nl
up by massive bogus costs or perhaps outright fraud. People who are faced with
increasing opportunities for wrongdoing frequently explain their actions because it has
become a habit.
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Setting a Bad ExampleThe foundation for good behaviour is laid at the top.
Employees copy their leaders and human personality is the most significant factor in
ethical leadership. According to experts, employees of corporate bosses who are
thought to reflect their personality may be seen as setting a powerful tone. Employees
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may follow in the footsteps of a boss who rushes to work every day.
Ignoring insignificant details will not result in a controversy. However, if left

unchecked misconduct can be quite costly. Identifying the root causes of workplace
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misconduct might help to prevent difficulties and damage.
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Figure: Consequences of Unethical Behaviours

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5.2.5 Power and Politics

Organizational power and politics are an unavoidable fact that no company can
avoid. Even in privately owned and professionally managed sectors one cannot simply
say no to the expansion of contemporary companies and the parallel growth of the
m
executive class through professional administration of firms.
Power and politics are as old as human nature and recorded history one
cannot simply covet the will of those in power and then try to force it. This is the
)A
interdependence of organisational systems in which upper management and senior

leadership often want to do their own thing while people in the middle and those
elevated instead of CEOs and other C level positions strive to fight these powers.
Power Issues in Family Owned Businesses

(c
What interests us the most in our conversation is how family companies frequently
play a large role in power politics? Because family-owned enterprises frequently have

competitors’ power centres that meet with different family members, this is the case. For
Notes
e
example, in organisations like Fidelity, which is a family concern it frequently emerges that
there are multiple power centres each supported by various family members. Indeed, the
reason for picking this model is that the succession conflict in that corporation has been
in
developing in recent years and it is now confronting a strong political majority.
There is no better illustration of successive fights than the Reliance conglomerate
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issue, which saw power clashes amongst various family members following the death
of the family father. Indeed, this issue has become so well-known that several Western
colleges have developed courses on why it occurred who benefitted and who lost and
whether it was for the interest of shareholders or employees.
O
a. The Impact of Power Struggles on Participants
When we discuss the impact of power and politics on shareholders and other
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stakeholders we frequently find that positions and staff suffer significant losses as a
result of power struggles. This is because they notice that the elites are often bickering
and fighting and as a result, they lose authority in their work, which leads to degradation
and recklessness. Furthermore, officeholders may become stuck between conflicting
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factions and believe that they are being targeted by groups whose sole intention is to
achieve their objectives.
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When elephants battle, the grass suffers and whenever there is a power struggle
in the workplace the lower and middle classes are the ones who suffer the most. Yes,
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the wise among them form a group and it is thus safer for them to take sides rather
than be caught in the crossfire. Furthermore, they have discovered that in order
to play a power game it is better to tie their luck to a specific team. Needless to say
all of this contributes to the organization’s productivity and performance. This is why
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many shareholders particularly those from institutions interfere whenever power games
become more powerful and has an impact on financial and corporate performance.
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b. Power and Politics Are Part of Human Nature

However, it should be noted that not all power battles result in negative outcomes
since the winning team is frequently the result of a losing team that is extremely
ity
autonomous or tyrannical. This is true at manufacturers like Hewlett Packard and Apple,
where competitors have forced the importation and recovery of former security guards
for the advantage of the companies. Furthermore, it is usually a good idea to have a
testing and balance mechanism in place inside the company so that any input between
control and control is minimised. It is also beneficial to have direct efforts to oppose
m
since it is healthier for the firm to decide on the best course of action when opinions are
highly distinct and diverge.
Indeed, it is preferable for decision-makers to be surrounded by yes men and

)A
sycophants who have a vested interest in glorifying their masters to listen to a variety of
viewpoints. Furthermore, decision-making that considers all of the options are better on
any given day than combining styles.
To sum up, while power and politics are as old as humanity the way of equality
(c
anytime there is a desire to cross borders means that power and politics should be
evaluated on this point rather than from a negative perspective.

5.2.6 Initiatives on Corporate Governance by the Government

Notes
e
In India, the government has implemented a liberalisation, privatisation and globalisation
(LPG) strategy. Since then a variety of policy measures have been implemented to boost
in
India’s economic development, efficiency and competitiveness. To strengthen corporate
governance both legal and non-legal measures have been implemented.
Concerns regarding non-compliance with financial reporting standards, board of
nl
director responsibility and corporate governance have led to considerable losses for
investors prompting the need for corporate governance.
The failure of international corporations such as Enron, US World Com and Xerox
O
in Japan has been ascribed to a lack of corporate governance and unscrupulous
actions by executives and their finance firms.
The collapse of these international firms underlines the significance of a robust
ty
corporate governance framework that explains the power disparities between the Board
of Directors and management allowing managers to govern while the board of directors
monitors and provides policy guidelines.
si
In India, the SEBI recognised the importance of excellent corporate governance
and established various committees to that end including the Kumar Mangalam Birla
Committee, the Naresh Chandra Committeeand the Narayana Murthy Committee.
r
ve
Initiatives on Corporate Governance in India
Improved financial market performance, better protection of a few shareholders,
increased transparency and higher levels of information disclosure, changing
board structures and streamlining board operations are all part of India’s corporate
ni
governance developments.
Within the 1990s, the Indian government implemented improvements to the

governance structure through laws and government agencies. To meet with the
U
needs of good corporate governance practises and formal laws set by the Securities
and Exchange Board of India a few adjustments to the Companies Act 1956 were
implemented (SEBI). Companies Bill 1997, Companies Act (Amendment), 1999,
Companies Act (Amendment), 2000 and The Companies Amendment Act, 2001 were
ity
all passed to update the Act. There were also voluntary actions taken by industrial
institutions, business organisations and professional organisations to advance the
process.
SEBI has begun a fundamental transformation in order to promote greater

m
governance and the development of efficient financial markets for the long term. SEBI
implemented issuance guidelines for issuers, computerised stock exchanges and
entrance requirements for public offerings, modernization of small market structures
)A
and amended consolidation and withdrawal procedures among other steps. From 1992
to 2000, a slew of laws were passed in this area.
The KM Birla Committee’s recommendations on corporate governance as well as

SEBI rules such as the Large Stocks and Bonds Act of 1997, the Money Laundering Act
(c
of 1997, the Buy Back of Securities Act of 1998, the Employee Stock Option Scheme
and the Employee Stock Option Scheme outreach 1999, have resulted in improved
business governance in India.

The Indian Industry Association (CII), the Department of Corporate Affairs (DCA),
Notes
e
and the Indian Security and Exchange Board created numerous government codes in
the late 1990s and early 2000s (SEBI). On their ideas for greater governance, the three
came to a broad and unanimous agreement.
in
The Indian Industry Association (CII), the Department of Corporate Affairs (DCA),
and the Indian Security and Exchange Board created numerous government codes in
nl
the late 1990s and early 2000s (SEBI). On their ideas for greater governance the three
came to a broad and unanimous agreement.
SEBI established the K M Birla Company Management Committee in May 1999 to
O
recommend methods to improve India’s business governance and to draught a code of
best practises for both required and voluntary provisions.
The Government of India’s DCA has proposed a number of changes to the
ty
Companies Act 1956. In May 2000, it also formed a research team with the goal of
expanding the notion of company governance in India.
In 2002, SEBI established the N.R. Narayana Murthy Committee, which consisted
si
of professionals from the trading room, stock market, professionals and an investment
firm. Among the recommendations made by Naryana Murthy’s committee were
enhancing the audit committee’s responsibilities, risk management, raising disclosure
r
standards, defining the position of appointed directors and disclosing non-executive
directors’ remuneration to shareholders.
ve
The Indian government, through the DCA, has established two committees to
promote business governance in India: the Naresh Chandra Committee and the JJ Irani
Committee. The Naresh Chandra Committee was formed in August 2002 to look at a
ni
variety of business governance issues.
The JJ Iranni Committee was established in December 2004 and the Ministry
of Commerce, Government of India is in charge of offering suggestions regarding
U
participant and investor protection lowering the size of the Company Act, and resolving
the related components of the Companies Act, 1956. The committee was also expected
to evaluate the diverse viewpoints expressed on the participants’ opinion sheet.
ity
The Voluntary Corporate Governance Guidelines were issued by the Ministry of

Corporate Affairs (MCA) in 2009 to strengthen corporate governance procedures in
listed firms in India. Based on the mandatory and unconditional requirement of Article
49 of the Listing Agreement, the Guidelines have given a series of suggestions.
m
5.3 Case Study

Antitrust Case of Microsoft
)A
Microsoft (MS) is the world’s leading provider of computer software and is widely
regarded as a major corporation. In reality, Microsoft has transformed personal
computer operating systems (OS) (PCs). OS software, PCs, software programmes,
interactive media programmes, Internet forums, customer location apps, and specialist
(c
tools in operating software are among MS’s offerings.
MS has created a name for itself over the last two decades, and its market
valuation now surpasses $ 500 billion. With its “MS Office” software, Microsoft first rose
to prominence in 1995, capturing more than 90% of the market. It also dominated the
Notes
e
Internet browser and operating system server markets.
The Department of Justice (DOJ) in the United States has begun an investigation
in
into alleged misconduct by Microsoft, which includes pressuring PC manufacturers to
install “Windows 95” on their free Internet browser. “This kind of product coercion is
an abuse of power and we aim to remove it,” said the Assistant Attorney General for
nl
Antitrust. The legal dispute between Microsoft and the Department of Justice began in
1997.
The DOJ believes Microsoft is moving an arm to install a web browser on Windows
O
95. The DOJ gathered significant documents from MS during the investigation,
including an e-mail conversation in which an employee stated, “The aim of the plan was
to kill Java cross-platform.”
ty
“Screw Sun.... utilise the Java language,” one engineer remarked. It was
discovered that Microsoft had developed and installed its own version of Java on
the Windows platform. The Department of Justice gathered evidence, interviewed
witnesses and developed a case about how Microsoft exploited its financial strength
si
and position to govern itself.
In June of 2000, the United States District Court issued its judgments. MS had
r
broken US laws of dishonesty and abused its administrative power over an OS
judge’s computer based on MS share judgments on an OS with high access barriers
ve
imposed by MS, according to the judgments. As a result, the customer had no choice
but to accept MS’s offer. The judge ordered that Microsoft be split into two smaller
corporations one for Windows operating systems and the other for online commerce.
MS should not break the rules of infidelity, according to the judge.
ni
USA Infidelity Laws

The United States encourages free and fair trade, as well as healthy and vigorous
U
market competition, so that consumers can obtain the most value for their money. No
firm should be able to exercise monopoly power.
Dishonesty policies have two options:

ity
(i) Price and other market transactions that restrict market competitiveness should
be prohibited.
(ii) The formation of a monopoly market should be avoided.
m
Dishonest laws are based on US legislation such as the Sherman Act (1890), the
Clayton Act (1914), and the Federal Trade Commission Act (1914). The Supreme Court,
in a September 2000 decision, rejected the government’s demand to dissolve MS in
)A
order to terminate its monopoly activities.
To protect its independence, Microsoft is likely to escalate the legal struggle and
provide new goods to the market. In September 2001, the Department of Justice
recommended MS to limit their governance initiatives. It is like having more legal battles
with more groups because of the legal struggle between MS and the US government.
(c

Summary
Notes
e
●● Adaptability necessitates change. Individuals, communities, and organisations
alter their activities, life lessons and settings to take advantage of new
in
opportunities, making adaptation a frequent practice in the human world.
●● The environment of the organisation comprises aspects that can be easily altered
as well as factors that may be beyond its control. The final group of objects is said
nl
to reside in a natural setting. Managers should keep watch of trends and events as
they develop and strive to anticipate the effects of these trends and events since
the general environment has a substantial impact on organisational success.
O
●● The political section focuses on the government’s role in shaping the business.
This category includes tax policies, changes in trade and tax restrictions, and
government stability. Immigration policy is part of a broader local politics that has
far-reaching implications for a variety of organisations.
ty
●● The economic sector is concerned with the economic conditions in which
businesses function. It takes into account a variety of variables, including interest
rates, inflation rates, gross domestic product, unemployment rates, underused
si
inflation rates, and general growth or recession.
●● Ketchup was a staple in every American pantry a generation ago, while salsa was
a foreign concept. In the United States, however, food makers now sell more salsa
than ketchup. r
ve
●● Changes in social status can sometimes occur from unexpected places. Prior to
WWII, the majority of American laborer were men. When millions of men were sent
to Europe and Asia for military service, however, the organisations had little choice
but to rely significantly on women.
ni
●● The technology component focuses on the creation of science-based products and

services. Changes in the level of new product creation, increasing automation, and
improvements in service delivery are all related factors. The ever-increasing rate
U
of invention is one of the hallmarks of the modern period. Gordon E.

●● The environmental component refers to the physical environment in which
businesses operate. It takes into account variables such as natural disasters,
pollution levels, and climate. For example, the danger of contamination has
ity
compelled communities to chemically clean their water. These additives improve

the safety of drinking water but impair its taste.
●● The legal department examines the impact of the courts on business. Employment
laws, health and safety regulations, anti-discrimination laws and anti-corruption
m
laws are all examples of significant legal issues.

●● Intellectual property theft is rampant in some countries, such as China. Three
other common denominators contribute to crime being a serious problem.
)A
First and foremost, China is the world’s most populated country by social class.
Second, China’s wealth is fast increasing.
●● The term “economic condition” refers to all components of the economy that have
an impact on business and consumer behaviour. All external influences in the
immediate market and the wider economy are included in the economic situation.
(c
These elements can have an impact on how a business functions and how
effective it can be.

●● The ideals, beliefs, custom and practices of a group of people are all included
Notes
e
in a public area. The external social environment as well as the internal social
environment affects the firm. Both risk and business opportunities are present in
the external environment.
in
●● Pressure Groups: These are special interest groups. They take use of the political
process in order to strengthen their position on social concerns. They put pressure
on governments and projects to change laws, regulations and processes to
nl
safeguard their interests.
●● Oppressive groups: Consumer exploitation, environmental protection, human
rights, women’s rights and decent governance are all examples of oppressive
O
groups
●● Social Change: Things change as a result of change. A shift in social relationships
and behaviors is referred to as social change. Social change is aided by lifestyles
ty
and social conventions.
●● Organizations must now compete not just in their ability to penetrate new markets
and achieve a greater quality of living, but also in their ability to efficiently manage
si
the flow of knowledge in a knowledge-based economy, due to the current condition
of global competitiveness.
●● There is a need for an organisation that can listen to client preferences in one
r
country, connect you to developed services in another country, and disseminate it
internationally in order to create the ability to innovate in a fast-paced environment.
ve
Subsidiary companies are an international corporate solution that allows for
redesigned and connected connections on a local level.
●● Hurdles and barriers to information transfer may provide substantial
ni
challenges to a corporation that employs an international framework to find and

disseminate strategic information as one of its main competitive advantages.
Problems with data transfer can be beneficial to the organisation because
external communication methods are less likely to perform better than internal
U
communication methods.
●● Some administrative responsibilities are allocated to RHQs and the higher
authorities. These administrative functions allow management efforts to be
ity
concentrated across the region rather than being distributed among individual
regional units as in the Philips example.
●● Large and profitable enterprises rarely operate across borders unless they have
access to major global markets like China and India. However, good tactics
in industrialised countries frequently fail in emerging markets due to unique
m
characteristics and limitations.

●● Numerous authors in the books have devised various models for determining
whether or not a global corporation exists. Following a review of corporate-
)A
affiliated connections it was discovered that each subsidiary firm serves a unique
function necessitating a unique regulatory strategy for each.
●● Companies must devise strategies to deal with the market’s changing
business climate. The management of rising complexity and diversity as a
(c
result ofglobalisation is a difficult undertaking. Global competition, national

responsiveness and innovation are all becoming increasingly important.

●● Employee policies, according to Barlett and Ghosal (2002), are utilised not only to
Notes
e
foster personal growth and teamwork but also to streamline corporate choices and
processes as well as to affect cultural and business values. Unilever can address
conflicting but interdependent needs thanks to this flexible management strategy
in
that improves interoperability across all units and scattered capabilities.
●● The social science topic of behaviour is linked to ethics and social standards.
Business ethics is defined as the study of proper business rules and procedures
nl
pertaining to potentially contentious topics such as business management, internal
trade, bribery, discrimination, corporate social responsibility and honesty duties.
●● Stakeholder conflict occurs when different stakeholders have conflicting
O
objectives. It is an “issue” for the company because it may have an impact on their
performance and success.
●● Dividends are appealing to shareholders but they also have the opportunity
ty
to benefit handsomely by investing in the company. They want the company to
continue to develop and earn more profits resulting in more dividends and profits
handed to shareholders.
si
●● A succession of business crises on both sides of the Atlantic at the turn of the 2000
reignited public interest in corporate governance and ethical debates. A series of
financial scandals rocked the US economic environment with senior executives at
r
Enron, Andersen and WorldCom found guilty of fraud and misconduct. In Europe
too, there have been several instances of bad administration.
ve
●● Workplace misbehavior should not be excessive in order to be costly. It is
possible that corporate scandals resulting in the arrest of abusive leaders may
make the news. However, the daily inconvenient produced by seemingly tiny
misunderstandings between employees and bosses is just as bad.
ni
●● Improved financial market performance, better protection of a few shareholders,

increased transparency and higher levels of information disclosure, changing
board structures and streamlining board operations are all part of India’s corporate
U
governance developments.
Glossary
ity
●● Undue influence: Taking advantage of someone’s vulnerability to convince them to

make a decision.
●● Community: Those members of society who are aware, concerned, or in some
way affected by the operations and output of the organization.
m
●● Business Ethics: The principles and standards that guide the behavior of
individuals and groups in the world of business.
●● Intellectual Property: The ideas and creative material developed to solve
)A
problems, carry out applications, educate, and entertain others; the end product of
the creative process.
●● Self-regulation: Regulation of an activity by individuals involved in that activity as
opposed to regulation by the government.
(c
●● Affirmative Action Programs: Programs that involve efforts to recruit, hire, train,
and promote qualified individuals from groups that have traditionally been
discriminated against on the basis of race, gender, or other characteristics.
●● Right: A legal or moral entitlement. Rights generally imply duties or obligations. For
Notes
e
example, if A has a right not be killed then B has a duty not to kill A.
●● Voluntariness: The ability to make a free (un-coerced) choice.
in
●● Justice Theory: A class of moral philosophy that relates to evaluations of fairness,
or the disposition to deal with perceived injustices of others.
●● Codes of Conduct: Formal statements that describe what an organization expects
nl
of its employees.
●● Accountability: Taking personal responsibility for one’s conduct.
O
●● Classified Research: Research that the government keeps secret to protect
national security. Access to classified research is granted to individuals with the
appropriate security clearance on a need-to-know basis.
ty
●● Patent: A right, granted by a government, which allows the patent holder to
exclude others from making, using, or commercializing an invention for a period of
time, typically 20 years. To be patented, an invention must be novel, non-obvious,
and useful. The patent holder must publicly disclose how to make and use the
si
invention in the patent application.
●● Honesty: The ethical obligation to tell the truth and avoid deceiving others. In
science, some types of dishonesty include data fabrication or falsification, and
plagiarism. r
ve
●● Negligence: A failure to follow the standard of care which results in harm to a
person or organization. In science, research that is sloppy, careless, or poorly
planned or executed may be considered negligent.
ni
●● Virtue: A morally good or desirable character trait, such as honesty, courage,

compassion, modesty, fairness, etc.
●● Protocol: A set of steps, methods, or procedures for performing an activity, such as
U
a scientific experiment.
●● Risk: The product of the probability and magnitude (or severity) of a potential
harm.
ity
●● Risk minimization: In human subjects research, the ethical and legal principle
that the risks to the subjects should be minimized using appropriate methods,
procedures (such as Subject selection rules), or other safety measures (such as a
Data and safety monitoring board).
m
●● Privacy: A state of being free from unwanted intrusion into one’s personal space,
private information, or personal affairs.

)A
1. The term _____________________ refers to all components of the economy that

have an impact on business and consumer behaviour.
a) Economic Condition
(c
b) Social Condition
c) Natural Condition


Notes
e
2. The environmental component refers to the ________________ in which businesses
operate. It takes into account variables such as natural disasters, pollution levels,
in
and climate.
a) Virtual Environment
b) Business Environment
nl
c) Physical Environment
d) All of the above
O
3. The _______________ is concerned with the economic conditions in which
businesses function.
a) Primary Sector
ty
b) Service Sector
c) Economic Sector
si
d) Agriculture Sector
4. Demographics, community institutions, repressed groups and social change are all
important aspects of the ______________________ to consider.
a) Social Environment r
ve
b) Physical Environment
c) Business Environment
ni
5. When the company’s industry becomes ______________ another alternative for

adopting an international model arises.
U
a) Multinational
b) National
c) Global
ity
d) All of the above

6. Large and profitable enterprises rarely operate _____________ unless they have
access to major global markets like China and India.
a) Internal Border
m
b) Across Border
c) International
)A
d) National
7. Power and politics are as old as ______________ and recorded history one cannot
simply covet the will of those in power and then try to force it.
a) Mindset
(c
b) Thinking

c) Human Nature
Notes
e
8. Employees copy their leaders and human personality is the most significant factor in
in
ethical _____________.
a) Leadership
nl
b) Management
c) Responsibility
d) Power
O
9. A few additional bucks from the milestone report could be swallowed up by massive
bogus costs or perhaps outright _______________.
a) Fraud
ty
b) Scam
c) Cheating
si
d) All of the above
10. The _____________ put in during war-game is frequently chronicled in the After-
Action Report, which is normally completed quickly after war-game is completed.
a) Hard Efforts
r
ve
b) No Burden
c) Easy Task
ni
11. ___________ who have a global mindset, which entails assessing data independently
of one country’s supposition and applying it to new situations, will be crucial to
U
establishing long-term relationships.

a) Worker
b) Security Guard
ity
c) Manger
d) Supervisor
12. Senior management’s job should be approached with caution as it has a significant
impact on ______________ and employee ethics.
m
a) Economic Culture
b) Company Culture
)A
c) Origination Culture
d) All of the above.
Exercise
(c
1. What is General Environment?

2. Describe Economic Environment.

3. What is Social Environment?

Notes
e
4. What is the Global Competitive Environment?
5. Explain Business War Game.
in
6. Describe Business Ethics.
7. What are thereasons for Conflict of Interests among Stakeholders?
nl
8. Explain Corporate Governance and Ethics.
9. Why are Unethical Decisions Leading to Conflicts Taken?
O
10. Describe Power and Politics.
11. What type of initiatives taken on Corporate Governance by the Government?
Learning Activities
ty
1. Prepare a topic on different types of Business Environment and discuss with your
classmates.
si
2. Why do we need business ethics and corporate governance?
3. Why shareholders are the important part of the organisation?
r
ve
1. (a)
2. (c)
3. (c)
ni
4. (a)
5. (a)
6. (b)
U
7. (c)
8. (a)
ity
9. (a)
10. (a)
11. (c)
12. (b)
m

1. Adam Arvidsson: The Ethical Economy, Columbia University Press, First
)A
Edition.
2. Larry: Managing Social and Ethical Issues in Organizations, Information Age
Publishing, First Edition.
3. Haney: Ethical Issues in Social Work Practice, IGI Global, Second Edition.
(c

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Subject Matter Experts

Module - II: The Process of Management Consulting 68

2.1 The Consulting Process

2.1.3 Action Planning

2.2.1 Strategic and Tactical Plans

2.3 Pricing of Consultancy

2.4.1 Recruitment and Selection

4.1.2 Types of Organisational Culture

4.1.4 Functions of Organisational Culture

4.2 Models of Organisational Culture

4.3 Creating and Maintaining Organisational Culture

4.3.2 Cross Cultural Issues and Perspectives

Module - V: Economic, Social and Ethical Issues in Management 225

5.1.1 Evaluating the General Environment

Module -I : Introduction to Management

element in business. Without proper management, the resources of production (men,

Management is a must to accomplish desired goals through group action. It is

essential to convert the disorganized resources of men, machines, materials and

A business develops in course of time with complexities. With increasing

of management has increased tremendously. Management is essential not only for

objectives can be achieved with the coordinated efforts of several personnel.

The work of a number of persons are properly coordinated to achieve the

Amity Directorate of Distance & Online Education

famous book “The Practice of Management” that, “the emergence of management as

. “Management is an important part of the way people do business, which is done

It is considered as the indispensable institution in the modern social organization

It is management that regulates man’s productive activities through coordinated

Management has achieved an enviable importance in recent times. We are all

Importance of management for the development of underdeveloped economies

The emergence of management in modern times may be regarded as a significant

Amity Directorate of Distance & Online Education

Management is a critical aspect of human activity. Since the beginning of time,

a. Management will be defined conceptually;

e. The reasons for learning management theory;

Figure: The Process of Management

1.1 Modern Management Practices and Issues

Management is the integrating force in all organized activity. Whenever two or

Amity Directorate of Distance & Online Education

Definition of Management (Management Process)

Different Type of Management Styles

In a team management programme, the manager acts as a guide, assisting team

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These risks include:

A manager accomplishes this by serving as a clear communication channel within

The various administrative functions are classified as follows:

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Figure: Scrum Framework

This is a great representation of how a scrum’s brain works. It is a horizontal

Important Points to Remember

1. Managing all business and organisational activities is bringing people together to

Amity Directorate of Distance & Online Education

1.1.2 Quantitative Approach

modelling to determine the optimal solution to a problem. This can be applied to a

methodical, targeted approach to problems or answers. Numerous sectors may be

A critical component of quantitative management is the capacity to collect

This approach enables a more objective assessment of workplace challenges,

generate an objective impression. With independent measures and methodologies, it

Amity Directorate of Distance & Online Education