Category: Business

In the present-day world, when people have reached the level at which the humankind deserves being called the informational civilization, managing information becomes one of the most important processes.

Hence the need to coordinate the knowledge acquisition processes and stream them the required way appears. Moreover, the interest in the processes of knowledge acquisition, processing and storage has increase over the past few years, launching a million of theories concerning knowledge acquisition processes and the means to control them.

In his book Knowledge management in theory and practice, Kimiz Dalkir splits the knowledge management procedure in several stages that are required to process a specific bit of information for its further application. Speaking of the significance of these processes, one must admit that each of them serves a certain purpose and, therefore, their significance must not be underrated.

They make a chain of reactions in a human brain, and, once one of these processes is taken out, the chain is broken. Hence, every single element serves its purpose and is extremely important. However, when considering the stage at which the interruption into the process and its further cancellation leads to the most drastic events, one must take a closer look at the knowledge production processes in the McElroy KM cycle (Dalkir, 2005).

To the given stage, new knowledge is being produced, which the goal of information processing actually is. Therefore, the given process is the most important. As Cope and Freeman explain, Demand-side KM is focused on knowledge production, the demand for new knowledge (Cope & Freeman, 2002, 39).Since during the stage of knowledge production processes, new knowledge is generated, the given stage is crucial for the KM process.

Another peculiar stage that the KM process involves is the one at which various problems are solved. At the given stage, the key decision points are made, which means that the stage of decision making is the point at which the acquired knowledge are tested and applied to practice.

Previously only a theoretical concept, the acquired knowledge obtains a practical foil for its further use, thus, completing the knowledge management cycle. On the one hand, it can be argued that the given process is far from being significant, since it does not presuppose either acquiring any additional knowledge, or analyzing the information in order to evaluate it and shape into a specific theory. Indeed, there are little to no discoveries that can be made in the process of knowledge application.

In addition, the process of testing a certain theory has nothing to do with obtaining the information, which alone means that the given stage does not have much in common with information processing. On the other hand, though, the process of knowledge application can and must be related to the knowledge management cycle, since it presupposes the use of the newly acquired information. When defining the most significant stage in a KM process, one has to choose the issue that is going to be taken as the goal of the KM cycle.

For McElroy, the goal was to pout the acquired knowledge to practice: For McElroy, the role of KM is to enhance an organizations capacity to learn and adapt (Cope & Freeman, 2002, 39). If the goal is to make efficient use of knowledge, which is exactly the point that McElroy made, the process of knowledge application should be considered the most important one in the KM cycle.

Reference List

Cope, B. & Freeman, R. (2002). Developing knowledge workers in the printing and publishing industries. Melbourne, AU: RMIT University.

Dalkir, K. (2005). Knowledge management in theory and practice. Burlington, MA: Elsevier.

The importance of clear understanding of various essentials of a contract is critical in business world. This has been evident in times of dispute in any given transaction. The cases taken to court require that all critical essentials of a contract must have been in place. Failure to proof all essentials of a contract leads to automatic nullification of any given contract.

The key essentials are the offer, acceptance and consideration. There are other essentials of a contract such as the legal purpose, maturity of obligation, certainty of the matter and finally the existence of competent parties.

An offer is the show of will to enter into a contract. The offer should contain date for it to valid. If not so the offer is deemed valid only when accepted and if rejected it ceases to be valid. For example if a party offers for a sale of a car and the other party heeds to the offer. The other when it calls for renegotiation it can be refused or granted the chance depending with the discretion of the one making the offer. This is due to the fact that the offer become invalid after it was rejected in the first place.

The offer should also contain various specifications such as the quality, price and place of delivery among many others. If the offer is accepted and the party accepting has undertaken its obligation then the contract becomes binding on both parties. The offer can be in writing or not. Despite the aforementioned fact there are exceptions on which the offer must be in writing.

The transactions on real estate or the ones which are worthy$ 500 and above must be in written offers. The person making the offer may sometimes be paid to keep the offer open (Koffman, 2007, p. 257). In such situation the offer can remain open for a period of ninety days.

The other essential of a contract is the acceptance of the offer. This is expression of agreement with terms of the offer. This can be demonstrated by the action of customer keeping the goods or by failure to reject within a given time. The acceptance can take three ways. One of them is the conditional acceptance.

Here the contract made after material change of the original offer and thus it is a counteroffer. The other form of acceptance is the expressed acceptance. In this case the offer is accepted in its original form. Finally the other form is the implied acceptance in which the acceptance is communicated by the conduct of the buyer (Richards, 2007, p. 67). For example failure to reject goods and specified time limit is taken as acceptance.

Consideration is a very key aspect of a contract. It entails a promise from one party to another after the other party fulfils a certain act (Richards, 2007, p107). This benefit may take form of interest, profit, right or even responsibility but it must have value. The value attached to the promise is not necessarily monetary value.

The other essentials of a contract include the fact that the persons contracting are legally binding. This means that they are not for example minors. Also the subject matter which is being contracted should be legal. Contracts on illegal subject are not valid. The parties to the contract should have clear understanding of what the contract entails. Finally, the certainty of the terms of contract should be determinable (Koffman, 2007, p. 91).

It is evident that good understanding of essentials of a contract is very critical in business sector. Poor knowledge in contracting means failure in business. Here we have seen various essential elements of a contract.

Reference List

Koffman, L. (2007). The Law of Contract. California. Bell & Bain.

Richards, P. (2007). Law of Contract. New York. Barnes & Noble.

Introduction

The paper attempts to describe the environmental scanning of a country in which PPQ Parts will expand its business, and it also discusses the internal strengths and weaknesses of the country. Additionally, it includes discussion of both short and long term goals and strategies incorporating limitations and benefits of entering into the desired market. The location decided for expansion for PPQ Parts is Germany.

Environmental Scanning

Economy

Germany is a developed economy that has a vast supply of specialized knowledge and expertise. The German economy had surpassed a global recession which occurred in 2009, but since then it has recovered losses that occurred in the recession. Germany has expertise in both exports and extensive knowledge base in manufacturing.

Germany is amongst worlds top 10 strongest economies. The foreign direct investment in the country increased by 45% in the year 2009, where overall FDI decreased around the world by 37%. The country has recorded a consistent 2.2% increase in GDP of the country on a quarterly basis and 9% on an annual basis. The small and medium enterprises contribute to the larger portion of the economy of the country.

Generally, it is the larger firms that contribute towards the economic growth, but the case is opposite in Germany where SMEs and MMs contribute 99% of the overall companies with significant innovative products. The labor market in Germany is slow, but it is gaining strength. It is a formidable prospect to invest in the particular country where the spending rate of consumers is high due to high standards of living, and therefore, it would be financially beneficial for PPQ Parts to enter the market with small SUVs (Bolgar, 2010).

Competition

The automotive industry of Germany is the biggest in the European Union with almost 35% of the global market share employing a large of skilled individuals. The country is the birthplace of automobiles, and it is in the fourth place amongst countries producing automobiles.

Amongst the top producers of small SUVs BMW, Mercedes-Benz, and Volkswagen top the list. The competition is fierce in the saturated market of SUVs. However, the small SUVs category market is still untapped. The automobile industry constitutes over 20% revenues of the total German economy (GTAI, 2012).

Political Stability

Germany is an active member of the European Union, and it uses Euro as its currency. The country has a federal democracy, and the political situation has been continuously on the road to stability since World War II. The country is politically stable, but over the years it has experienced problems of Euro. The government has taken steps to resolve Euro debt crisis by having a certain amount of control over their budgets and changes in the economic policies of member states (AMB Company Inc, 2012).

Internal Strengths

The profit margin of the company is equal to the average profit margin of the entire industry in the United States. The company employs over 5,000 employees, which shows that the company is a large employer. PPQ Parts takes an interest in the social corporate responsibility while investing 0.5% of the total profits in charity and community building activities.

The company plans to expand its business internationally to diversify its product portfolio and earn higher revenues. PPQ Parts has a worldwide market share of 5% of the small SUVs market, which reflects that the company is performing well, but it has targeted to achieve more in the next 4 years. The company has a positive stance to create a strategic plan for 4 years that could yield positive results for the company.

Weaknesses

The turnover rate of employees of the company is at 28%, which is comparatively higher than the industry average of 25%. The turnover rate of employees is high due to many reasons including low salary, low incentives and motivation provided to employees, and poor working conditions. The company mostly operates in the United States with almost 80% of its revenues generated from this market, which means that the international existence is low.

The shares of the company are trading at $10 per share, which represents that investors have a little interest in the company. The company plans to expand 80% of its business outside United States, but the company does not have many resources to go international. The company is new in the international market and has limited experience which might become a problem for the company in the future.

Short-Term Goals

1. Employees Appreciation. The employee turnover rate can be reduced through employee appreciation and motivating them to deliver their best. If a company becomes as a good employer then more employees will seek jobs, and the turnover rate could be reduced from 28% to 17%.
2. Increase shares. The company focuses on increasing stock prices per share by $22. To achieve this goal, the company needs to become efficient and reliable in profit making. The growth and profit making ability decides the share price of the company.
3. Improving Human Resource. PPQ Parts aims to its work force by 10,000, which can be achieved by growth in the international presence of the company. Extended operations in different countries would result in an increase in its labor force.

Long-Term Goals

1. Increase Innovativeness. PPQ Parts should increase innovativeness by investing more on Research and Development. The new products and changes in its existing designs would account for more recognition worldwide and increase in its revenues (Heizer, Render, & Rajashekhar, 2009).
2. Expansion. The company shall expand its business worldwide to increase their international presence. Up till now, the company has just 20% of its operations outside the US. Entrance in Germany will allow it to enter in the European markets.
3. Increase Market Share. The company aims to increase worldwide market share by 5%, which can be accomplished by entering into different economies across the globe. The products should be in accordance with the demand of the overall population of particular countries (Heizer, Render, & Rajashekhar, 2009).
4. Revenue Goal. The company aims to increase its profit margin from 6% to 13%. This can be accomplished through an increase in its production and lower cost of operations, which would eventually make profits to pile up.

Benefits and Limitations

Benefits

Germany offers opportunities for cost effective production. The country has a strong presence of skilled labor, which allows high productivity rate and quality standards. The location of Germany is central in Europe, which provides ways for exporting easily to other European countries through freeways, waterways, and railways.

The country has a large number of small and medium sized companies; therefore, chances of survival for a smaller company are higher than a large manufacturing firm. PPQ Parts has an advantage to invest in the particular country to increase its global presence. The company can expand its business further by investing in different European countries (PKF, 2010).

Limitations

Corporate taxes, as well as, individuals taxes are comparatively higher in Germany as compared to other European countries. Taxation is the only serious concern for PPQ Parts (PKF, 2010).

Reference List

AMB Company Inc. (2012). AMB Country Risk Report. Berlin: AM Best Company Inc.

Bolgar, C. (2010). Foreign Investors Flock to Europes Economic Motor. Web.

GTAI. (2012). The Automotive Industry in Germany. Berlin: Germany Trade and Invest.

Heizer, J., Render, B., & Rajashekhar, J. (2009). Operations Management. New Delhi: Pearson Education India. PKF. (2010). Doing business in Germany. Hamburg: PKF.

Business processing model refers to the manner in which concepts are handled in a firm, as opposed to what is being done. This is the main distinction between this concept and system modeling. It facilitates in deciding the nature of business undertakings, therefore, facilitates competent decision making as pertains to the concepts to be adopted. They record daily activities, making it is easier to determine processes that can be managed easily and those that need upgrading.

This concept, if adopted by Wood House Day Spa in Cincinnati, Ohio will be of immense benefit to their undertaking. This firm concentrates on promoting personal health through diet and other fitness activities. Clients are taken through a plethora of training regimes, both in the gym and outdoor events.

They undergo regular massage sessions and have access to a spa. In addition to this, Wood House has a retail outlet for their beauty products and food supplements. Since it is a new company, they offer their services at affordable costs and have ambitions of transforming themselves into market leaders. In order to achieve this, it is imperative that they adopt a suitable Internet based business processing model.

Business model and Its Importance

In order for one to achieve success in online marketing, they should staunchly believe in the philosophy that success relies on consumers, as opposed to purchasers. Computers characterize life for a majority of the populace. With these in mind, they should be willing to avail free information on their products online, since a majority of persons will not be willing to spend on commodities they do not know.

The utility model is flexible enough and can serve them well, helping them achieve their goal. It contends that although users consider service a necessity, reliability is essential, and this may limit utilization of capacity.

Functional stipulation for Internet use and benefits of a Website

Electronic retailing is among the fastest growing online ventures at the moment. By designing a website, they will publicize their products on a large scale, without any restrictions. They also stand a chance of earning proceeds if people will want to advertise on their portal.

Wood House can post information about their organization and products on select websites, with links to their portal for further information. They stand to benefit a great deal from this since most people prefer remote shopping. Delivery services can be outsourced from other companies hence keeping their overhead low.

Communication with their customers will be swifter and more reliable. They can establish email addresses and premium numbers as to serve as hotlines for use incase of any emergency. Random clients can also be picked to participate in online surveys to help them improve their product and service quality. In line with this, the Manufacturer Direct concept is the best model they can adopt.

This front provides them with several models, most notably the purchase model, which will allow them to sell their goods directly to their purchasers. They will enjoy all profits arising from the sales. For their therapeutic products, they can adopt the lease model.

They will allow customers to access to services for a specified duration before billing them as agreed upon. This method can be used for regular customers. Lastly, the Brand-Integrated integrated approach can also be used to interact with customers and sell them products. Wood House will formulate messages with information on the products and relay them to target audiences. In order to achieve this, they require a server.

Technological stipulation for Implementation and software utilized

IBM Super computer are aptly suited for this job. Personal computers, most preferably desktop computers are necessary. They will require word processing software to create material for their clients and format converters to make them up loadable. JavaScript is the best programming language they can use to design their website.

References

Bono, E and Heller, R. (2006). Internet Commerce: You cant afford to bide your time with new technology. Web.

Fox, S. C. (2008). Internet Riches: The Simple Money-Making Secrets of Online Millionaires. New York: AMACOM Div American Mgmt Assn

Rappa, M. A. (2004). The utility business model and the future of computing services. IBM Systems Journal Vol. 43 No 1.

Rappa, M (2010). Business Models on the Web. Digital enterprise Retrieved from http://digitalenterprise.org/models/models.html

Introduction

Technology is necessary in the current business management strategies. Any business that has not incorporated it in its framework is not equipped to compete. In fact, it has been a tool that has been adopted everywhere by organisations, schools, churches amongst many relevant bodies for their smooth running.

The current business environment that is characterised by intensive application of technology differs significantly from the past when things were done manually and for a long time. In the past, companies have instituted measures aimed at establishing themselves in the market.

Where this strategy has worked for some, other companies have ended up failing. One only wonders why some companies would succeed by using one aspect of technology while other companies fail. The secret however lies in the utilisation of the technological innovations adapted by an individual company, as well as how well it is able to integrate it in the system for efficiency and profitability.

Some technological innovations are expensive to acquire and maintain in companies. When not utilised appropriately, they can cause the downfall of the company or end up locking the much-needed capital. Some market leaders may adapt a technological change and end up losing their leadership status in the industry.

The observation has continued to amaze many people especially those in the field of management. Most of the organisations, which at one time led in the innovation of a product, have not been able to re-invent themselves in innovations that followed with most of them not being able to cope with the market changes.

In the computer industry, some companies were involved in developing the various defining systems in history. While these companies continued to dominate this field, other companies surpassed them in the innovation of one system thus changing the course of history. Some of the reasons behind the failure by these previously successful firms have been the managerial myopia or organisational lethargy, insufficient resources, or expertise (Bruton & White, 2011, p.23).

The failure of large organisations, companies, and institutions is due to the introduction of innovation dates in history. An example is the spinning of cotton, which is recorded to have failed at some point in history after the introduction of synthetic fibres in the industry. Most of the companies, which used to spin at this period in time and did not adapt properly to this change were out phased though this move was not because of lack of innovation.

The reasons behind the failure of some of these organisations can be traced to other factors, which are not necessarily related to the new technologies introduced at the time. Now, all companies operating anywhere in the world have a degree of technological innovation in their ranks. Most of them are using out-dated technologies. Lack of exposure, resistance to change, or ignorance may be some of the reasons why such companies are holding to the past when new and convenient technologies are in place ready for use.

Small-scale companies use technology in acquisition of products, marketing, management, and the sale of their products to the customers. This strategy does not mean that the companies are not successful, as evidenced by the degree of success enjoyed by small-scale companies. Those that have struggled to succeed by introducing innovations have in some instances failed to do so thus ruling out technology as a cause of their failure.

A question emerges therefore as to the causes of failure of previously successful organisations after the introduction of technological innovations in their operations. This essay discusses the reasons behind the failure of formerly competitive companies in many industries after the introduction of changes in technological innovation.

Literature Review

Organisational changes are described as a necessity that is described as paving way for profitability, efficiency, and better performance in any company. One of the changes that companies have struggled with over the past is the change in technology. In the contemporary business environment, a company has to make the right changes in technological innovation to remain relevant in its industry.

History has shown that those organisations that do not adapt appropriately to changes in innovation have ended up vanishing or struggling to maintain profitability. Changes in technology are thought to lead to new products, organisational approaches, and in turn new customers (Bruton, & White, 2011, p.23).

Any of the changes to be implemented in an organisation, including those dealing with technological innovations, require a certain amount of financial input from the company. This means that the money may not go to projects that are more important to the company. These projects may have been more important to the company than the perceived change.

Some researchers have suggested that the cause of market decline in some of these companies is due to the denial of necessary products to the existing customers while aiming to attract new customers with new products (Bruton, & White, 2011, p.18). Market leaders in the organisational categories are responsible for most of the introduced innovations in their category. When these changes do not address the needs of their current customers, the companies tend to lag behind other companies in the market.

In establishing the causes of organisational failure in relation to the introduction of technological innovations, it is important to understand the criteria used to allocate resources to technological innovations in the organisations. Researchers have analysed these factors in the past. Two distinct lines of thought exist (Bruton, & White, 2011, p.20).

The first one was suggested by Pfeffer and Salancik (1978, p.34) who used explanations outside the organisations to explain the pattern of resource allocation for activities involving innovation. They called the pattern resource dependence. They used the explanation to explain that companies usually depend on the allocations and resources they get without influencing decision making on innovations.

The discretion that is traditionally reserved for the organisation managers is not available in this option. The organisations decision-making is dependent on external forces. The external forces directing the allocation of resources in the organisations include customers and investors in the organisation, as these are the people who are thought to offer the needed resources for organisational survival (Pfeffer & Salancik, 1978, p.34).

Several technological innovations in the major organisations (Pfeffer, & Salancik, 1978, p.34) have supported this line of thought in the past. In the organisations studied, the development of technological innovations was necessitated by the emergence of other technologies perceived to be a threat to the organisation in general (Pfeffer, & Salancik, 1978, p.34). Bower (1970, p. 38) came up with the other line of thought, which opposed the resource dependence line of thought.

Over the centuries, this line has been studied and altered to adapt to the changes in technologies. In this proposal, it is suggested that most of the changes in technological innovation in organisations are influenced by factors internal to the organisation (Bower, 1970, p. 38). As Bower observed, managers in an organisation hold the key to decision making regarding technological innovations in organisations where this policy exists (Bower, 1970, p. 38).

The managers involved in the decision-making as regards to technological innovations are those in the middle levels of organisational management. They choose whether to share the innovation with their counterparts or keep it. It is also observed that one of the factors affecting this type of organisational innovation is the compromise of risk and career management (Bower, 1970, p. 37).

Managers who are in the lower ranks are likely to support innovations they perceive as being acceptable to the customers and therefore more likely to succeed. They do this at the expense of other innovative changes that they may be thinking of as a way of preventing any risk for their careers.

Both lines of thought are important in understanding the determinants of technological innovations adopted by a particular organisation. It is from the demand of the customers that technological innovations emerge in organisations.

However, if the innovations are not structured to meet the needs of most of the customers to the organisation, the organisation ends up wasting valuable resources besides losing the grip of the market. Organisations, which adopt innovations only to address the needs of few customers who are remote and in emerging markets, find it difficult to cope with market competition.

Another explanation that has been forthcoming as to why leading companies fail in technological innovations includes competition from emerging companies (Bower, 1970, p. 46). Most of the technological innovations that have been observed are mainly from new companies. The existing ones have the financial and market advantage. However, they fail to compete thus only continuing to invest in traditional technologies.

It is observed that where innovations are introduced in the market by new companies, entrants have an advantage over the existing organisations, as they enjoy the attackers advantage over the incumbent companies (Bower, 1970, p. 38).

The causes of the failure for the companies with the entry of innovation can also be explained based on the destruction of technological innovations existing in these companies when new technologies are introduced (Bower, 1970, p. 38). An organisation may be well adapted to using a certain kind of technological innovation in its operations.

With the entry of newer technological innovations, the old ones are discarded. There develops a difficulty in adapting to the new change. The valuable loss in time and resource in the process costs the organisation valuable market share. The new technology adapted may not be better than the existing technological innovation. It may also not serve as expected for the organisation hence qualifying as another reason for organisational failure with the introduction of new technological innovations.

Most of the firms operating in various sectors of the economy are using innovations that were in the industry for a period of five or more years because, based on the above discussions on the causes of organisational failure after technological innovation, most of the organisations are now exercising caution in their approach to technological innovation (Christensen, 1997, p. 45).

With the advent of globalisation however, companies are competing through technological innovation with those winning ending up earning a greater market share.

The causes of failure in organisations can therefore be explained in a number of ways depending on the researcher and the industry in which the research was done. In the field of information and technology, the success of a company is dependent on the degree to which it embraces technological innovations. An organisations philosophy and culture may lead to its downfall even with the introduction of innovative technologies (Christensen, 1997, p. 45).

Some researchers and business managers have suggested that some organisations focus so much on the needs of their current customers and end up overlooking their other needs in the industry (Utterback, 1995, p.138). Overhead costs in an organisation may also be as high as to limit the adoption of new technological innovations. This situation denies them of profits and revenues.

Smaller competitors who are not focused on the needs of their small number of clients are, therefore, likely to adopt new strategies in technological innovation thus ending up leap-frogging their larger competitors in the industry.

The other group of organisations, which may enjoy success in technological innovations, is the outsider industries (Utterback, 1995, p.138). These organisations have little to lose in pursuing radical innovations&They have no infrastructure of existing technology to defend or maintain (Utterback, 1995, p.38). They therefore end up competing with the existing large organisations.

The reasons that the existing organisations are unable to compete adequately with these companies are because they have huge investments in the current technology&emotionally, they and their fortunes are heavily bound up in the status quo&From a practical point of view, their managerial attention is encumbered by the system they have (Utterback, 1995, p.139).

Some of the organisations, which have ended up being surpassed in history due to their policy on innovation, include Bell Labs and the inventor of the Radio technology (Utterback, 1995, p.140). Bell Labs did not see it necessary to have a patent for its laser use in telecommunications. Other companies used the technology combined with fibre optics to make a very powerful combination (Utterback, 1995, p.141).

Marconis invention of the radio was also followed by the use of this technology by other organisations. This move has led to the development of one of the strongest media tools (Christensen, 1997, p. 46). The managers and organisations involved in the above innovations may have approached the industry differently. However, their miscalculations led to other organisations surpassing them in the same technological innovations.

Previous research findings have categorised technological innovations as being sustaining or disruptive to the existing capabilities of the industry players (Christensen, 1997, p. 46). Innovations, which are destructive to competence, are mainly from outsiders in the industry while competence-enhancing innovations may come from existing players in the industry as well as outsiders (Christensen, 1997, p. 46).

Sustaining technologies are also described as concentrating on the needs of the current customers in an organisation, and are geared towards improving the parameters (Utterback, 1995, p.138).

On the other hand, disruptive technologies bring a value proposition different from that provided by the existing technologies (Christensen, 1997, p. 47). Products developed because of destructive technologies are typically inferior in terms of performance, but are often cheaper, simpler, smaller, and frequently more user friendly (Christensen, 1997, p. 46).

Managing Technology and Innovation

As noted above, technological innovation can be a cause of success or failure of a company or an industry. It is therefore important to know how to manage this technology for the benefit of the organisation. One of the causes of failure discussed is the uncertainty that technological innovations introduce to an organisation. Some authors reveal a period of suspense that exists between technical feasibility and commercial viability (Bower, 1970, p. 38).

Some companies rush into innovations and end up burning while others watch as new companies adapt the innovations, which drive them out of business. Whether it is a product innovation or process innovation, companies should not take a very cautious approach. However, a well-calculated decision-making should be the way to go for them.

One of the services that have been affected by technological innovations includes that in the health industry, which has been the beneficiary of the digital transformation that has taken place over the past decade (Bower, 1970, p. 47). The challenge with technological innovations in the health sector is the availability to the general population. For most of the innovations, which have been adapted in the health industry, the bulk of consumers are unable to afford them because they are expensive.

The delivery of these innovations in the industry has been in a disorganised and chaotic manner that defies the very purpose of the innovation at times (Bower, 1970, p. 48). The innovations have also been adopted by the payer with the health providers and the patients taking a back seat in adopting them (Utterback, 1995, p.138).

Management of these innovations in the health sector requires the involvement of all parties concerned with the industry. The first step that could prove to involve all the key players including the providers and the patients is the adoption of cost effective technologies. The health industry needs to adopt those innovations that are cheap for the consumers and are easily applicable to the providers.

The next thing in the management is adopting technologies with which patients and providers can relate to and apply directly in their practice. Should the technological innovations be too complex for consumers, consumer knowledge may be enhanced by carrying out empowerment and training.

Another example in the management of technological innovations is in the digital imaging industry. The introduction of digital imaging in the 1980s caused uncertainty in the film industry, as organisations were not sure of the impact that the Digital Still Camera would bring to the industry (Utterback, 1995, p.138).

The argument was based on the perceived low quality that this innovation would introduce in the industry. However, with time, there was the emergence of a digital design that was incorporated into the conventional film designs thus leading to the development of better film quality.

Digital imaging technology has led to the destruction of the conventional photographic technology. However, with adequate management, there has been the creation of opportunities that were not available in its era. This exposition shows that, with effective management of new technological innovations, organisations should be able to re-invent themselves and adapt to the changes.

Management is therefore the main difference between organisations, which experience disruptive or sustaining effects from innovations. It is therefore important that organisations are able to manage new technological innovations for their benefit.

Variables

There are a number of variables used in the internal or external innovation in organisations. One of the variables is the result of a market analysis or a study by the organisation on the trends in their market (Bower, 1970, p. 38). One of the driving factors for innovation is the influence from market trends.

Almost all organisations have an elaborate sales and marketing team that monitors changes in these trends. The consumer is the priority for many organisations. Should they adopt a new trend, the organisation is in most instances compelled to change with them. The feedback from consumers is used to effect these technological changes in organisations.

Another variable that is used in determining technological innovation in organisations is competition. Organisations are frequently conducting studies to determine their competitive advantages and positions in the market. When they establish that their competitors have an edge over them, some of the changes that are adopted include the adoption of technological innovations.

An example is the car manufacturing industry where organisations are frequently developing new models to remain viable in the industry. This variable is significant in any industry. In fact, it is one of the strongest driving forces in technological innovation.

A variable that is internal to the organisation and leading to the creation and adoption of new technologies is the result of creative thinking. Based on the competitiveness of the personnel in an organisation, new technologies may be driven by their creative thinking. This situation has been observed mainly in the information technology industry where technological innovations are changing every single day. To manage these variables, an organisation needs to appreciate and encourage the development of ideas within its ranks.

Nature of Technology and its challenges

Some of the challenges that technological innovations face include indifference of the employees, isolation, and hostility (Utterback, 1995, p.138). Most of the management teams regard innovation as a necessary process for their companies, but some of them just say it for communication without believing or meaning it. They therefore end up doing little beyond speaking when it comes to innovation. As much as people may consider this case attributable to the managers personality, studies have found management to be involving.

For most of them, they transform from management to leadership, which is challenging for them. The adoption and success of technological innovations in an organisation is however dependent on the mind frame of the managers concerned. If they do not believe in these innovations, therefore, the organisations end up adopting this stand. This direction may be costly to the organisation as those that take a different stand on the same innovations may surpass it.

To deal with this problem, organisations need to have a detailed policy on innovation with the decision being made by a number of managers. There is also a need for a frequent review of an organisations management status with managers being encouraged to adopt innovative thinking.

The organisation also needs to select managers with a history of involvement in technological innovations. For an organisation to eradicate and effectively deal with this problem, there is a need to have a department dealing with the adoption of technological innovation.

Managers may also fail to adopt technological innovations based on their hostility to the innovations. Some of the reasons cited by the managers to stop the adoption of innovations include budgetary constraints, organisations regulations, and limited resources. Isolation is also a common cause of failure to adopt technological innovation, as one manager cannot effectively institute the innovation changes.

The inception of innovation in technology in an organisation is a team effort that requires participation of all members of the organisation. This effort will help to solve the problem of isolation in reference to the adoption of new technological innovations.

Other challenges associated with technology in organisations include the slow process of adoption and acclimatisation. With the introduction of new technologies, employees in an organisation may find it hard to adapt the change. This case may cost the organisation. This challenge can be eliminated through adequate training of the personnel before the adoption of the innovations, slow and stepwise adoption of the changes, and the introduction of a board to facilitate and oversee the transition.

Another problem that is associated with technology is the cost associated with changes. In many times when making innovative changes, companies are often faced with financial challenges, which are in the acquisition or development of the technological innovation, placement and adoption into the organisation, and effective running.

This challenge may also be dealt with through adequate preparation and planning, and the adoption of those innovations that are cost effective. As noted earlier, one of the challenges of technology is the destruction that it may bring to an organisation. This may however, be dealt with by a careful planning and adoption of only relevant technological innovations.

For most of the organisations that have adopted destructive technologies, the decision was ill informed: it was reached at a rate that was too fast for the organisation leading to its eventual burning. Technology does not always lead to the fall of major organisations. Those that carefully adopt may end up succeeding.

Issues in Implementing an Innovation

Managers should be ready to deal with the issues that are likely to develop with the implementation of technological innovations. One of the issues likely to develop includes how to deal with the success that the innovation may bring. When the management is not able to anticipate success of a technological innovation, the duration of this success may be limited. The organisation may find it hard to survive in the same market. The management therefore needs to plan for any outcomes of technological innovations to ensure continued success.

Another issue that the management should address is the competence of the people entrusted with the implementation of the technological innovation in an organisation. Some managers are not as competent in relation to some of the employees below them in handling technological changes. Competing interests may therefore develop. The management therefore needs to institute measures to ensure that this competition does not happen.

One of the measures is to have a team involved in the smooth transition of the technological innovation. Before the organisations can adopt any technological innovations in their practice, it is important to study the effect of the same innovations on other companies in the market. This attempt will help them establish whether adopting the technologies will lead to success or destruction of the organisations.

Another issue associated with technological innovation in organisations is the development of sustaining the new technology. Often, firms have experienced problems in maintaining a working innovation in their companies due to a number of reasons. One of them is the rapid change in technology in a way that the organisation is not able to keep up. With each innovation, the trend may be over before an organisation fully adapts to it. With this situation, the organisation runs out of business before the changes made become fully utilised.

Another issue with technology is getting the market to adopt it once implemented in an organisation. A company may engineer a good product that may be useful to many customers. However, with the indifference that the customers demonstrate, depending on the industry, they take long to adapt it.

This case leads to the organisation losing ground and thus failing to be impressive. The management can deal with these problems by instituting a framework for adequate feedback. Customers should be allowed to give their suggestions on the innovations, which should then be implemented in the policy of the organisation.

The management may also introduce technology to a market and then do vigorous marketing, which will contribute towards consumer awareness. An organisation, which intends to introduce an innovation in the market, should therefore have well-oiled marketing machinery in place before it does so.

These are not all the issues associated with technology. With adoption of the same in organisations, the personnel may not be well prepared thus leading to a reduction in the intended efficiency. This case can be avoided by adequate preparation of the organisations personnel, adopting the technology in phases, and training them after the adoption.

With the development of new technological innovations, most organisations have often adopted them fully besides discarding the existing ones. Although this move may increase the efficiency of the organisations processes or improve the quality of the output, the consumers of the new product may not be as many in relation to those of the previous product. This case may cause the downfall of the organisation.

Recommendations

For organisations to stay relevant, they have to adopt technological innovations, which are beneficial both to them and to their customers. Managers need to keep in touch with technological changes in the industry. This strategy will help their organisations to maintain profitability. Disruptive technologies are hard to pre-empt in an industry. Managers need to study them in retrospect (Pfeffer, & Salancik, 1978, p.34). The products causing the destruction from new firms should be studied with recommendations being made.

Organisations should also have small empowered teams to dabble in new technologies by encouraging them to come to the market quickly in a bid to keep making performance improvements as feedback from customers pours in (Utterback, 1995, p.138). Before realising this outcome, organisations need to have a working system through which they can get feedback from their customers for use in making new technological changes.

Another method that successful organisations can adopt is building a strong management team that is aware of the challenges associated with technological innovations. This move will make the implementation of any technological innovations to be adopted smooth. Regular training of the personnel involved in the organisations is also necessary, as it will ensure that they keep in touch with the changes.

Summary

Most of the literature reviewed suggests that technological innovations have been responsible for the failure of many large organisations in the past. The reasons behind the observed failure to address the needs of the immediate customers include resource allocation. Resource allocation for technological innovations is affected by a variety of factors with researchers categorising them into external resource dependence and the internal factors affecting resource allocation.

Technological innovations have also been categorised into two based on their effect on the existing capabilities in an organisation. They can therefore be disruptive or sustaining the existing capabilities.

An organisation needs to have a properly laid plan on how to deal with technological innovations including the training of managers, analysis of customer feedback, and performing an effective analysis. Technology can cause many changes in an organisation. The management therefore needs to be adequately prepared to deal with them. Destructive technologies are hard to monitor. Organisations should pre-empt and prevent their negative effects.

Conclusion

In conclusion, technological innovations are necessary for the success of organisations. In the past however, successful organisations have ended up failing with the introduction of these technologies. Some of the causes of this failure include the development of weak policies and implementation structures. However, most of the causes of organisational failure after the introduction of new technological innovations are external to the organisation and hence hard to predict and control.

Entrants into an industry are better equipped to adopt technological innovations compared to existing firms because of the security they experience. They do not have old technologies to guard or complex processes. They therefore find it easy to put in place and use innovations compared to their counterparts in the industry. This challenge can be dealt with if managers in successful organisations adopt a policy that facilitates transition to innovations.

Reference List

Bower, J. (1970). Managing the Resource Allocation Process. Irwin: Homewood, IL.

Bruton, G., & White, M. (2011). Strategic Management of Technology and Innovation. South-Western: Cengage Learning.

Christensen, C. (1997). The Innovators Dilemma. Boston: Harvard Business School Press.

Pfeffer, J., & Salancik, G. (1978). The External Control of Organisations: A Resource Dependence Perspective. New York: Harper & Row.

Utterback, J. (1995). Developing technologies: The Eastman Kodak Story. The McKinsey Quarterly, 1(1), 130-143.

Introduction

Establishing a medical care facility can double up as a business venture or an entity for the general well being of the society. Demand for quality medical care is on the rise as population takes an increasing trend; to be a successful business man in this sector, one requires being a professional in the sector.

In this paper we will consider how a budget of $100million can be utilized by a group of 20 medical practitioners as they establish a health care facility in a locality with a population of 500,000 people; it will be located 30miles down town, it will consider financial, legal, and alternative health care models reinforced by your knowledge of strategic planning and capital budgeting.

Project Management/ Starting Up a New Business

Before one decides to take a profit making venture in a certain area, he/she should interpolate probability of success in the business. This comes before looking for funds for the project and continues further. After one has realized that it is possible that the said business can be a success, the next step is to project manage the start up.

Business venture

The first thing before one sets out to start a business is the survey of the location that one wants to make an establishment. This is because; the success of the business is dependent on how well he is going to capture customers to buy from him. Different places require different set ups for their success.

In our case, it is a medical facility that is located 30miles from the main town; when it comes with the case of a hospital; the most important thing is the quality that patients are likely to get. The distance is crucial yes, but patients are willing to travel for longer distances if they will get quality medical attendance; with this the venture is not threatened by distance (Shane, 2003).

Project Management

Before undertaking a project, but after realizing that the business venture is likely to be a success, the next step is project management. This is the point that financial outlay is considered; there are different ways to consider if projects will be viable; they include;

The pay back method of analyzing projects has been interpolated as the most easy and straight forward method of project analysis. The method is simply looking at the period of time that a certain project is going to take to recoup the amount of money that the investor has invested. What this means is that the method recommends not to be interested by the benefits that a certain project is going to bring but the interest should be on how long will the project take for you to get the money that had been invested.

Initial outlay ($100million) = gains from the business X payback period.

The next method of evaluating the project is using net present value, this involves taking into account the duration that the project is likely to be in operation then discount the income using cost of capital, if the NPV is a positive number then a project is viable.

N.P.V. = (discounted outflows  initial capital)

= (discounted outflow  $100millions)

If NPV is positive, then the project is viable, if it is negative then the project should not be started.

Financial Consideration

Capital outlaw in a business is an important aspect to consider when starting up; the capital initially employed in the business should be recouped in a certain period of time. If the capital was financed from a loan then it must be repaid; so there is need to ensure that a business will do well enough to cater for its financial obligation.

This will be in consideration of business risk; business risk is the uncertainty on to whether the kind of business that one has engaged in will be of success. This is in both existing business when they want to extend their business to other areas of a start up business. When investing in some kind of a business there is the initial and subsequent running expenses. In a business environment the proceeds from the business should cover all this and there will remain a portion that is the profit of the investor.

This is not always the case as one may invest and then only losses are accruing from the investment; the risk that the firm will have to undertake is that of possibility that the business leads into a loss. On the other side, this is a normal situation that must be faced in business. The most important thing is to do a good study of the market situation before you invest.

In our case the target population is 500,000 people, what is important to note is the kind of medical care that the population requires. If there is an area that the current medical care fails to satisfy the population then it is important to focus in this area more than those that are highly populated by practitioners.

I would recommend for professional service like dentals, surgery, ENTs, mortuary, and gynecology among others. Clinical services though an important and inevitable part in any hospital set up should not be emphasized a lot since patients can have alternatives in other hospitals.

An outlay of $100million is enough to lay good medical facilities. Sustainability is another important issue when managing a certain project. For example, all health care policies are projects that require a long-term use of money. They can only be successful if there is adequate flow of money throughout the life of the project. During the evaluation, it is the time that the real cost of the project be calculated. This is then weighed upon the desired results.

If a businessman enters in an area that he cannot survive he is putting himself in a financial risk. This is the risk that the business will not be able to meet the long term and medium term financial obligations. This obligation means the financed capital obligation, the shareholders interests, and the cost of capital.

If the business has taken a loan to be able to finance the various projects then there must be a way that the loan will have to be paid. These will be involving the principal and the interest parts of the payment. The business can only be able to do this if it is run at a gain.

The shareholders, debenture holders, and interest creditors also invested in the business with the expectation that they are going to get a gain from their investment. The business has this obligation to fulfill. The risk here is whether the amount of profit that is being derived from the business will be enough to cater for all these expenses? There is the exposure of a companys strength as the company law provides that the financial statements of any company must be prepared.

They have some disclosures that they must give and thus if the business is not doing well it will hinder future decisions of potential investors. This has the possibility of limiting the level of growth in the future because it cannot access equity from the issue of shares. It can also lead to reduced confidence on the part of investor, which may have a negative effect to the business (Livingston, 2008).

Alternative Medical Care

Competition is a good element in the business arena since it ensures that quality of goods and services provided are good; it is the one that keeps the businessmen on their toes to ensure that they earn customer loyalty. In the medical practice, quality and professional service is crucial since it involves the health of human beings.

Health care is provided by the government at a subscribed rate as one of the functions of the government. The number of government hospitals in the location and the kind of services that they provide should be interpolated to ensure that there is a need that they are not satisfying the customers.

In many countries, government hospitals are not efficiently managed and thus people seem to have a fading trust on their services. There are times that a huge number of people wait for services; this compromises the quality they offer as well as patient customer relationship. These are some of the areas that should be looked into and taken advantage of.

The private sector and nongovernmental medical care is another area that where patients are treated; here they have better services than government hospitals but they suffer limited facilities. Our initial capital, $100million is a good amount to make a better facility than those of private sector. Another area that has been of great concern in the medical sector is human expertise; we are lucky that we already have 20 qualified medical practitioners; in this case we will have a comparative advantage.

The cost of labor is likely to be minimized since we can give services at a lower rate. Leadership is another factor that can be used to keep off competition; the success of an organization is dependent on the quality of decision made by its manager. One of the major attributes that make a good manager stand out is his or her decisiveness.

The quality of decisions made by a manager is reflected in the performance of his or her organization. Other than the control by decision of the management, customers influence almost all parts of a business. The available target customers needs should be well understood so as when deciding the kind of business to engage in, one is aware of the available customer segment.

By segment we mean the class, social status, age, and income level. One must align himself to the interest of the customer and by so doing there will be continued business. When a business is established, the success will be dependent on the quality of the good/services that it will offer to the market. They must be those that satisfy the needs of the customer. As the business, he should listen what other people have to say about the entire process (Schmenner, 1995).

Capital Budgeting

Capital budgeting is ensuring that the finances available for various long term developments are utilized in the most efficient way. In our case we have a budget of $ 100million that should be used to establish a medical facility. This money can be divided into two:-

a) Capital good purchase

b) Operational expenses

Capital Good Purchases

This is building of the facility and buying of facilities to be used in the business. To budget for this expense, a research should be done on the current level of technology that is in the market as well as their cost. Capital good purchase should have its special budget; it should consider the probable costs of all capital goods which will be required to establish the business. Lets assume that our capital goods budget is $80million. A sample budget looks like;

A frame work of a probable capital budget

Operating Expenses Budget

Before a business breaks even, there are expenses that should be taken into consideration; these include salaries and operating expenses. The initial capital outlay should consider this.

A frame work of a probable operational budget

Legal

Laws are set to regulate the way things are done in the economy; there are trade laws and professional regulations that a business should consider. The countries trade law requires that before starting a business its construction be approved by the relevant authorities. If the business has been approved, then a permit to start construction is given. Local council is mostly involved in this planning; they have to approve the site given for the construction.

After completion of construction, there is approval by medical practitioners body; they must ensure that the facility meets the standards set for the same, if they dont meet the standard, then they are licensed to start operation. Professional body will look into the quality of the facilities adopted as well as the qualifications of the staffs.

If they are convinced that everything is set, then they give approval and go ahead. Council licenses, health licenses, and sanitation licenses should be looked for before start up.

Taxation is another legal responsibility that the business will have, measures should be put in place to ensure that at no one point will there be a conflict with the government. This is the functions of accounting department.

Strategic Planning

A hospital set up requires physical and human resources for its operations. How well the resources are blend determine the success of the facility and the quality of services that it is going to give to the people. There are various departments that should be planned effectively to ensure that success is attained.

Taking S.W.O.T. analysis is crucial;

Internal Analysis

Strengths

The strength of an organization is vested on how well it understands and utilizes the available resources that it has, both internal and external. The leadership of the organization should be in the forefront in utilizing a companys strengths and it must start with deliberate measures to understand its environs. It has a high capital outlay and experts in medical professional. This is the great strength that the business can utilize for its prosperity.

Opportunities

The need for quality health care is increasing with awareness for need for good health and increased population. Opportunities / chances of success of the company are dependent on both the internal and external assessment criteria of the organizations profile of operation. Some of the underlying opportunities for this company in regard to the macro environment are the diversification of its medical professional expertise.

Weaknesses and Threats

Every business is faced with difficulties when entering a certain market; there can be danger if the business is not able to face the risks that it will be exposed to from its incorporation. The following are the areas that should be planned for a great success;

Human Resources Planning

A medical facility is a service entity whereby patients are attended by professionals in all areas; the role of the management is to ensure that there are qualified and adequate human resources at any one time of need.

Human resources planning is an attempt to forecast how many and what kind of employees are required or will be required in future and to what extent this demand is likely to be met. It involves the comparison of organizations current human resources and the likely future needs and consequently, the establishment of programs for hiring, training, redeploying, and possibly discarding employees.

The main aim of human resources planning is to ensure that there is the right number of employees, at the right time, at the right place, and the right cost. The human resource department is given the mandate of ensuring that adequate employees are available at all times in the organization; it has both quantitative and qualitative aspects. Qualitative means the right number of employees and qualitative means employees with right skills (Rodkey, Glover, Janes, Grether, Tolman, & McCabe, n.d).

Physical Resource Management

In a hospital, other than having qualified human resource, they must have the physical facilities that they are using; there are long term assets and recurrent budget assets and this should be looked into. Who manages what is of great importance. Some facilities will call for professionals to maintain them and retain them in their working conditions.

On the other hand when buying the resources, the management should ensure that it buys original and up-to date facilities. Procurement department is another area that should be looked into and enforced, this is a crucial department that should be given all the necessary support. Suppliers of various good should be recognized and contracted accordingly (Porter, 1980).

Customer Care

The focus on the customer (in our case patients) has forced the businesses to have a customer center that works as the reception or a call center. This has assisted patients to get the initial help, which can form an attitude about the services that they are likely to get from the hospital.

Of late after a patient have reported to a hospital, general check up are conducted as he waits to see the doctor, this include weight measurement, height, body pressure, and body temperature. This works in two ways; the customer is kept busy as the queue moves and confidence with the facilities services is built in this first interaction. The same good customer service should extend to the doctors and nurses. With good customer service then the business is more likely to succeed.

Social Corporate Responsibilities

To capture the attention of the general population, it is important for a business to venture in social corporate responsibilities. In the case of a hospital, it can take the shape of free medical checkups. This will help the people realize the type of service offered at the facility. This is also a marketing tool (Wheelen & Hunger, 1998).

Conclusion

Starting up a new business is taking a risk; however if the decision is well thought there are numerous benefits that come up with investing in business.

Before one is set to start there are short and long term parameters that he should consider to ensure that there will be continuity in the business. The future is unpredictable and so even the smallest details about something should be interpolated before starting up.

When one is starting a business, he should consider financial, legal, and alternative health care models reinforced by his knowledge of strategic planning and capital budgeting. A health care facility with a capital outlay of $100million and located 30miles from a town of 500,000 populations is a viable business if all the measures discussed above are taken into consideration.

Reference List

Livingston, J (2008). Founders at work: stories of startups early days. Berkeley, CA; New York: A press.

Porter, M. (1980). Competitive strategy. New York: Free Press.

Rodkey, R., Glover, C., Janes, G., Grether, E., Tolman, C., & McCabe, G. (n.d). Accounting, Business Methods, Investments, and the Exchanges. American Economic Review, 19(2), 289-300. Retrieved from SocINDEX with Full Text database

Schmenner, R. (1995). Service operations management. Upper Saddle River, NJ: Prentice Hall

Shane, S. (2003). A General Theory of Entrepreneurship: the Individual-Opportunity Nexus. New York: Edward Elgar

Wheelen, L., & Hunger, J. (1998). Strategic Management and Business Policy: Entering 21st Century Global Society. Massachusetts: Addison Wesley

No risk truck company risk identification

The No Risk Truck Company is a company based on manufacturing of heavy and medium duty contractor and construction trucks. Therefore, just like any other business unit, it is entitled to its equal share of risk in its daily routines as long as it is in operation. A risk can be defined as any activity or event that posses a degree of harm either by causing loss or another kind of misfortune to the business or its employees.

Basically, there are two types of risk any investor is worried of. First and fore most, is the non entrepreneurial risk in the form of fire, pollution or embezzlement of funds, to name but a few. The second risk type would know be the entrepreneurial risk which involves the whole process of bringing a business idea into operation. That is, introducing a complete new concept to the market. If the company doesnt set its priorities right then it gets its forecast all wrong and registers loss (Sadgrove, 2005).

The company is a victim to quite a number of risks which include; financial risk which refers to the risk associated with borrowing money to raise capital. At some future date a company is expected to pay up this debt including any interest that might have accumulated. Also, there is the risk of the markets. In this case, since the firm is not a monopoly, despite its dominance in the market, it has no control of the market prices which keep fluctuating.

Political risk also comes into play. The political or economic environment in any region could easily change. This has its effect on the market and eventually the company as it influences sales.

Lastly, there is the risk of advertising. From the excerpt we are informed To help assist customers, the No Risk Track Company offers Premium Care Roadside Assistance. This refers to a type of coverage which ensures that incase of any failure of the trucks on the road, within the geographical limit, there is immediate response to assist your truck to be on the move within no time or providing towing services incase the problem persists.

This comprehensive coverage provided by the firm gives risk a chance, in that it adds to the liabilities of the company in the event a client needs assistance on the road.

In some cases, depending on the company, the policy doesnt clearly indicate the area covered. This may be a problem incase a clients truck has broken down away from any of the distributors. The directors may have introduced such coverage without much thought on many breakdowns, more than the firm can cover. Usually such a move is meant to attract customers to purchase their products.

However, this risk can be managed through each of the following techniques; risk avoidance, loss control, risk retention and lastly risk transfer (Sadgrove, 2005).

Risk avoidance refers to completely shunning a new concept or idea due to the harm associated with it. The No Risk Truck company can opt to avoid the coverage in whole to save on the costs associated with the coverage. However, avoidance is not always an option especially where the benefits outweighs the cost.

When it comes to loss control the issue here is to manage the risk in such a way that harm expected is minimized to reasonable levels. The company for instance could limit the number of clients entitled to the coverage through offering warranty for any failure within a certain period, for instance, or covering clients who purchase trucks worth a certain value.

On the other hand, risk retention can be defined a plan of self insurance whereby an organization holds on to some funds meant to offset those financial needs that arise unexpectedly. The No Risk Truck Company can set aside funds to maintain the risk associated with the coverage. Such funds could be obtained from a proportion of the profits at the end of accounting periods.

Lastly, the company can opt to transfer the risk. This is a situation where the role of any replacement upon loss becomes the responsibility of a specific insurance firm. The company could insure all the trucks it sells in that case.

How to identify and/or evaluate the risk

There are quite a number of strategies to use when identifying risk in a firm. For instance, policy and procedure review can be utilized to portray how the organization functions. This can either be done at the internal or external levels of the organization. However, this strategy can be influenced by the local politics in the organization.

Another strategy that would work well is the analysis of financial statements. This can help reveal risks by forecasting losses coming from a particular sector after a particular event. In our case, the financial analysis would reveal higher costs at the Premium Care Roadside Assistance department.

Lastly, there is the physical inspection strategy. This involves physically carrying out a head count of the failed systems in the company. For the No Risk Trick Company, this would involve counting the number of trucks present for repair and maintenance. Also the number of trips to respond to distress calls by clients and number of breakdown towing. These are expensive activities for the firm therefore the more they occur the more risky it is for the company.

All profit and non profit making organizations have an obligation in managing their risk levels for them to exist or maintain a competitive edge. Risk management refers to the process of addressing risk situations attached to organizations routine activities.

In connection to this, there are things to consider when implementing risk management techniques. For instance, availability of resources in the firm should not be an issue. This is the most important factor to consider as it influences all activities an organization carries out. Availability of resources will spell out clearly how much will be set aside to offset the total cost of the premium roadside assistance, for instance.

Another important factor to consider is the worth of the risk. In the event benefits outweigh the cost then such is a viable option. The company should consider doing whatever it takes to retaining the risk. Here is where the company digs deep into its pockets to fund the risk. In our case, the coverage could woe customers to purchase trucks from the company thus increase sales. As such, the risk is worth undertaking. The risk is viable.

Reference List

Sadgrove, K (2005). Complete Guide to Business Risk Management. Gower house. Gower publishing limited.

Introduction

The Port Authority of New York and New Jersey (PANYNJ) is located between the New York harbor and the Hudson River and was established in 1921 to administer common harbor interests of both New York and New Jersey (Info Please para. 4).

It covers almost 1500 square miles of both states with New York as the centre. PANYNY is mandated with the responsibility of undertaking any project that aims at promoting commerce, trade, and public good. The sources of revenue for PANYNJ include issuance of bonds, charging user fees and also rent collections.

The services and infrastructure provided include:

• George Washington Bridge: This is a suspension bridge that connects Fort Lee, New Jersey and the northern part of Manhattan. It was initially known as Hudson River Bridge and can handle 106 million vehicles in a year, making it one of the busiest in the world.
• Holland tunnel: this tunnel was opened in 1927 and it has nine toll lanes that handle nearly 17 million vehicles. Holland tunnel connects Manhattans Canal and the 12^th and 14^th street found in Jersey. It was Clifford Holland who constructed the tunnel.
• Bayonne Bridge: This is the link between the Island of Staten and New Jersey. This bridge is unique in that it is built over ferry route connecting Port Richmond, New York and Bayonne, New Jersey. The city planners did think of Bayonne Bridge saving commuters from automobile traffic. The commuters came from the state Island-communities and used to work in Lower Manhattan. The bedroom communities came about with the construction of the Bridge.
• Goethals Bridge: this bridge was built to accommodate traffic of automobiles after the First World War. The bridge is among the bridges that join the New Jersey and New York. As a result of being easily accessible, it is the main connector of New Yorks and Brooklyns dwellers.
• Lincoln Tunnel: This tunnel was built after Port Authority of New York and New Jersey had acquired Holland tunnels in 1930. Construction of this tunnel consumed massive quantities of iron and other materials. The port authority of New York and New Jersey is still maintaining and operating this tunnel while looking for ways to deal with congestion.
• Outer bridge crossing: This was opened to traffic in 1928 and is under the maintenance of Port Authority of NY and NJ.
• JFK International Airport: this particular airport is ranked first in terms of the capacity of its cargo center. Due to its expansion, the airport has close to four million squares of feet occupied with offices and warehouse. The space is set aside for cargo operating in New York and Jersey.
• This international airport is based on the Jamaican Bay along the Queens areas in the city of New York. JFK international airport accommodates long-haul international traffic. At least one thousand cargo companies are based at this airport. JFK international airport became the first international airport to use computerized cargo clearing system, making processing cargo faster and boosting security (Petersen 38).
• Newark Liberty Airport: This airport is located in Newark, New Jersey, near the Elizabeth-Port Authority Marine Terminal. Its cargo storage space is smaller than that of JFK international airport, with almost 1.4 million square feet of cargo space in buildings. Some of the cargo handling facilities in Newark Airport includes United Airlines, FedEx cargo complex, United Parcel Services (UPS), Continental airlines and Building 157.

Terminals

Port Authority of New York and New Jersey has been rapidly expanding its container-handling capabilities to coincide with the 2014 completion opening up of the Panama Canal expansion. Volumes of trading are projected to double or even triple in the coming decade. For this reason, the authority is keen on completing the process of expansion. The technologies of Modern rail terminal are the major contributors of the ten berths. Four of the berths are at Maher Terminals.

Three others are at the APM Terminals, a further two at Port Newark Container Terminal in Newark, N.J. The other Terminal for the New York Container is in Staten Island, known as N.Y or port authority of New Jersey and New York.

Types of cargo being handled include:

Containers: Most terminals of Port Authority of New York and New Jersey handle this

Cargo. These terminals include New York Container Terminal, ASI terminals, American stevedoring, Global marine terminal, Port Newark container terminal and Maher terminal.

RO-RO: ASI terminal and Global terminals handle such cargoes in the PANYNJ,

Break-bulk: ASI handles this cargo. It is also known as General cargo.

Some of the cargo handling facilities in use here includes computerized truck gates, forklifts, container handlers, and yard tractors. Others include Straddle Carriers, computer equivehicles. There is also On-Dock Customs Inspection of the United States, station for the On- Dock container freight, yard hustlers and Wheel reefed plugs among others.

Port Authority of New York and New Jersey is headed by an executive director and assisted by deputy director. Currently, it is headed by Christopher Ward with the assistance of Bill Baroni.

Operators of PANYNJ

The main operators of Port of New York and New Jersey are firms such as stevedoring firms, terminal operators, cargo handling companies with a goal to make maximum profits and gain additional market share. The main operations in the port are airlines operations.

Some of the biggest airports in New York include: John Kennedy International Airport, the LaGuardia Airport and Stewart international Airport. Others include New liberty international airport and Teterboro Airport. The JFK airport has up to seven airline terminals fully operating. It has a peripheral taxiways surrounding it, and with more than 125 gates at its terminal.

In addition to that, JFK has large international air for cargo. The cargo facilities are two, and each has over 200000 square foot of space. JFK airport has more than one million square feet of warehouse designed for station freight operators and freight forwarders. Other operations include foreign trade, wholesaling, financial, shipbuilding and industrial activities.

PANYNJ employs directly almost tens of thousands of people while indirectly employing several tens of thousands in the form of suppliers and service providers in the communities it serves. This is one of the greatest achievements of PANYNJ.

The Port Authority of New York and New Jersey is collaborating with the United States Army Corps of Engineers to increase the depth of port harbors in order to accommodate big vessels and provide a superior ocean access to meet demand of international cargo. New York Jerseys port authority aims at optimally providing the most access and accommodation to the great international cargo demand throughout the area and its surroundings.

Port management Information System

It is important to note that port terminals use management information system. Management Information System (MIS) refers to provision of information to the senior management of firm to aid in accurate decision making process. The main components of a MIS are hardware, the software, the technology and the end user. In this case, the managerial and users are the port operators (UNCTAD 8). PMIS makes it possible for the managers of the ports to make non-routine or non-programmable decisions based on information available. Road Weather Information System (RWIS) is a special kind of PMIS which is useful in detection of lightning, accurate weather forecasting and providing data services to the main airports of PANYANJ (Oyj par. 3).

The advantages of Road Weather Information system are:

Provision of weather monitoring support: This ensures that weather around the 5 airports (John F. Kennedy, LaGuardia, Stewart International, Newark and Teterboro) is accurately predicted. Accuracy of the system is achieved by complete computerization of the operations. Data pertaining to weather can be retrieved quickly and easily since all the data is integrated into one database. PMIS provides up to date information of various PANYNJ departments to management so that they can take appropriate action.

Minimize delays. Since airports require very accurate weather information all the time, use of road weather information system has enabled planes to lift off without unnecessary delays (Oyj par. 6).

The disadvantages of road weather information system are:

There is the possibility of system malfunction, and could bring catastrophes to the organization. This is because the system, just like any other system, is prone to errors. Additionally, poorly programmed or non-secure systems in which data can be manipulated and/or systems requiring constant repairs can easily disrupt routine work flow and can lead to incorrect decisions.

Another shortcoming of RWIS is that it constantly needs maintenance and upgrading for it to function effectively and efficiently. It is expensive to acquire, install such an advanced information system. The end users of the system have to go through thorough training, and this is also costly.

The main reason for the success of Port Authority of New York and New Jersey is the adoption of strategic planning. This enabled them to critically scan both the internal and external environments for opportunities and threats (Port Authority of New York 18). Strategic planning determines the general direction of the organization in the next few years (Shapiro 3).

It shows where a corporation is going over the next year or more, how it is going to get there and how it will know if it got there or not. The strategic plan focuses on organization as a whole. In this case Port of New York and New Jerseys strategic plan zeros in on the whole organization including airports and its seaports.

Conclusion

The Port of New York and New Jersey has witnessed tremendous growth since its inception in 1921. Since then the port has attained rapid growth and in the process, it has overtaken other ports on the east side. With four separate airports connected by extensive and sophisticated rail and road network, Port of New York and New Jersey is the most extensive air, surface, seaport complex in the world.

Works Cited

Comptroller of the currency administrator of National Banks. Management Information System: Comptrollers Handbook. 2000. Print.

Info Pleases. Port authority of New York and New Jersey. 2000. Web.

Oyj, Vaisala. Port authority of New York and New Jersey choose Vaisala weather Information system. 2010. Web.

The Port Authority of New York and Jersey. The port authority of New York and jersey. 2001. Web.

Petersen, John. Airfreight industry-white paper. Georgia: Georgia Institute of Technology. 2007. Print.

Shapiro, Janet. Strategic planning toolkit. Washington DC: Civicus. 1993. Print.

Terminal enhancements: New container terminals to lead facilities into the future. 2010. Web.

UNCTAD. Modern Port Management. Geneva: UNCTAD. 2007. Print.

Introduction

In this day and age, businesses need to carry out risk analyses in order to determine the market usability, security related and operational problems linked to their businesses. This is because the business environment is quite competitive and also because a lot can go wrong at any one time. Small businesses like Carpe Sputum should give this matter even more attention because in the event that one of the risks actually occurs then the business will be adversely affected.

Risk identification

Carpe Sputum has several sources that can be useful in risk identification. It has a permanent workforce of 18 staff members who have plenty of experience with the company so they can provide useful insights. Furthermore, the customers, vendors and suppliers within the company can also be very useful.

On the other hand, because carrying out interviews with these individuals may prove to be a costly affair then it would probably be a good idea to rely on the operational functions of the company. Environmental analyses may also be done and market related assessments can also provide an insight into the risks inherent in this business.

From an environmental examination, the first risk that stands out is the financial risks of the companys capital investments. In order to provide the limbs and medical supplies, Carpe Sputum invested a lot of money into acquiring the capital. The company has risked a set amount of expenditure in production. In the future, the demand for the companys products may dwindle and this could compromise its profitability because future sales will not been realized (Abkowitz, 2008).

Ownership of the assets within this business is another risk in the event that the item stops yielding as much return as was expected. It is not known whether this company owns its assets or has leased them. In case of the former, then the organization should be aware of the repercussions of its actions. Acquiring assets without owning them is always riskier than fully owning them because retrieval cannot occur.

Since the organization is selling most of its products well then chances are some form of marketing has been done. The organization was rather small so it relied on the efforts of its salesmen. It is not known whether these salesmen are paid on commission but if they are not then their efforts may not generate the return expected.

This represents a risk to the company which must pay a fixed amount in salary and health insurance for them even if they do not deliver as much as anticipated. The human resources can also represent another risk associated with their operational occurrences. As staff carry out their tasks, they may be subjected to injuries that could cost the company a lot of money.

The inventory within the organization is also another risk to the company. It is not a guarantee that the limbs and medical supplies will sell. Consequently, the latter organization finds itself in a situation where it is only dealing with this risk in inventory alone. It has not found a way of splitting that risk with another stakeholder who might not be as affected by it. The companys 700, 000 dollar profits could be substantially altered if the limbs do not sell.

Risk evaluation

In order for an effective risk analysis, one must weigh the risks and determine the likelihood of occurrence. The impact of that risk upon the business also needs to be done and this can give the organization a way forward on mitigating them.

The highest risks in this business are associated with injury claims. This is because the risk has already occurred in the past and it has cost the company about 290, 000 dollars over three years. Clearly, the company will be better off preparing for such an eventuality. This also has the capacity to eat into the profits of the company by such a high percentage; therefore it needs to be given to the top most precedence.

The other risks that can be rated medium scale risks are the inventory and market related risks. The salesmen at each location might not deliver yet they are still consuming substantial portions of the firms revenues. This has happened to many small businessmen in the past and can happen to Carpe Sputum. Inventory related risks are also another problem because it is not a guarantee that the company will sell everything it contains so preparations need to be made. This would create real risk to the companys profits (Marx, 2009).

One of the issues that can be classified as low risk is the capital investment. First of all, the company has proved that it is profitable and that the assets it contains are actually productive. However, one may not be sure about how long this can last. It would be a once-in-while issue but if it occurs, the company will be stuck with unproductive capital that it needs to get rid of.

Risk mitigation and management

Insurance will be a good way to protect against a number of the risks. Although the organization is already providing its employees health coverage, it is likely that this cover may not be dealing with eventualities such as injury claims. The organization needs to set up a fund for that.

In terms of the marketing risks associated with the salesmen, the company could introduce a commission based system that would share risks with marketers. If they generate more sales, then they will benefit from higher incomes and would give them a bigger incentive to be efficient. If they generate minimal sales then the company need not pay for this inefficiency because their salaries will not fixed.

The same concept can be transferred to capital risks. This organization needs to lease its assets because this will imply that it does not necessarily own the assets and if they happen to yield minimal returns then it can forfeit the assets without having to dispose of it at a loss.

Lastly, it has not been stated whether the company actually manufactures the products for itself or sources them from somewhere else. In order to reduce inventory risks, it can make a deal with its manufacturers or suppliers to get returns on the sale of the items. This means that the organization splits its risks in exchange for a small portion of its profits.

Contingent planning

The entrepreneur of the business needs to provide a cushion of his inventory by setting aside money that would be sufficient to cover operating costs for the business for six months. In case of an undetected issue, the company would still be able to run because its cash flow will not be interrupted (Pickett and Pickett, 2005).

Another contingency plan would be ensuring employees know exactly what to do in case a business emergency occurs. The company needs to train members one how to react to minimized cash flow when the business returns are low. It also needs to teach them how to respond to theft or loss of the firms property in another way. These fast transitions will mean that the company can be back to profitability as soon as possible and they can be more productive.

Conclusion

The risks identified within this business can be eliminated, transferred or reduced. Those found to be inevitable can be shared with other parties that can take part of the risk and reap some rewards too. The latter category also entails insurance because insurance is risk transference. Those that can be reduced or avoided have been examined critically and some tangible solutions offered,

References

Marx, D. (2009). The price we pay for perfection. NY: Routledge

Abkowitz, M. (2008). Operational risk management. Oxford: OUP

Pickett, S. & Pickett. J. (2005). Auditing for managers: ultimate risk management tool. Chicago: Irwin

Introduction

Employee welfare is one of the critical determinants of organizational performance. Increased global competition has made organizations to apply more innovative mechanisms for employee engagement. Workers also strive to balance their personal lives and demands (Bailyn 2006, p. 21). Evidently, flexibility is required for employees to be able to attain the balance between their work and private life. Notably, greater flexibility in the organization of work processes is important.

This is because it helps the employees to achieve the critical balance. This essay focuses on the significance of work and private life both to the organization and to employees. Apart from this, it examines issues of organizational behavior, stress and the general welfare of workers. The paper utilizes various motivation theories to cover these topics in a comprehensive manner.

Why Work and Private Life Is Important To Organizational Behavior

The concept of work and private life has gained much importance. An employee requires adequate balance of these two aspects. This balance ensures effective performance and accomplishment of the collective organizational goals. Apparently, this concept remains crucial to all the stakeholders involved in management processes.

Stress is one of the major detrimental impacts that originate from lack of balance between work and private life (Griffin & Moorehead 2012, p. 15). Most studies have indicated that workers develop stress and depression due to unfavourable employment conditions. Stress has become a great public health challenge. It has the capacity to destroy other social and family relationships outside the work environment.

According to psychologists, stress is marked as a highly contagious mental condition. Employees require a high level of motivation within their workplaces. Therefore, innovation emerges as one of the tools that might be applied to achieve the balance between employees work and private lives.

The rate of employee performance depends on many factors. For instance, their training is likely to influence the level of output that an organization expects (Kaiser & Ringlstetter 2011, p. 34). It is imperative that organizations must learn to fit employees into roles that are commensurate with their training. Actions that augment the existing knowledge such as apprenticeship and sustained process of capacity building are also vital.

When an organization recognizes and addresses these concerns, both parties are more likely to benefit. The system minimizes and alleviates stress that might affect the performance, relationships and personal lives of the employees. This helps to improve the quality of life of persons around the worker. These might include their close family members, relatives, friends and fellow workmates.

In essence, a proper balance of work and private life is attainable. Several factors must be considered while motivating the workers. For example, all systems of motivation should comply with the organizations policies. The vision and mission statements of the organization must also be considered during such initiatives.

It is necessary to examine the various behaviours that employees might develop after getting motivation services. These characters form the basic tenets for organizational behavior and culture (NaSwall, Hellgren & Sverke 2008, p. 27). Perhaps, this explains the significance of work and private life in organizational behavior. An effective management of an organization requires that there is a steady balance between work and private life.

This condition is universally applicable to all employees. Indicatively, this is irrespective of the cadre. Even the managers and top executive directors have the same needs just as the implementing team. Motivation has been indicated to play a significant role in the alleviation stress from all employees. Stress is a major determinant of organizational behavior.

People cannot work under stressful and depressive conditions. Conflicts and disagreements in organizations usually arise due to accumulated stress and depression amongst employees.

The principle of scientific management provides a vivid explanation on the importance of motivation. Ideally, payment is one of the mechanisms through which an organization might motivate its workers. This involves the provision of attractive monetary inducements. However, care should be taken and monitoring of performance must be prioritized.

This is because most people do not like working (Mooney 2004, p. 22). Division of labour is a principle that helps to enhance the balance of work and private life. Through this system, work is categorized in units and assigned to all workers. The delegation of these duties follows certain laid down criterion. The kind of training, personal interests and specialization include some of the criterion applied in allocation of these duties.

Division of labour enables employees to perform the tasks that they are best acquainted with. Apart from this, they can apply their innovative skills to assist the organization to improve on service provision. This concept reduces instances of stress and depression to minimal level. Other human resources and occupational safety practices such as ergonomics help to minimize stress and employee suffering (Bailyn 2006, p. 41).

The delegation of work to particular persons helps to limit confusion of roles. Confusion of roles has been noted to cause chaos and conflicts within organizations. These might also have mental implications leading to stress and psychological torture. Constant capacity building initiatives and systems orientation are appropriate for all employees. The human resources department is charged with the responsibility to monitor the social wellbeing of all employees.

Psychological assessments should be performed periodically. The aim is to make sure that all workers are in their right state of mind. Observably, failure to conduct these procedures might lead to compromised systems and development of deviant organizational behavior.

Periodic trainings and refresher courses are appropriate for all employees (Knights & Willmott 2007, p. 58). The human resources department identifies the workers who should attend these courses within the organization. Motivational speaking and encouragement should be integrated within the various training programs.

These might also be accompanied by counselling or psychosocial support therapy and sessions. The concept of group therapy has recently emerged as the best approach for engaging workers. It also helps the management to identify key welfare issues that affect their workers. These processes might be conducted by an external motivational speaker or professional counsellor hired by the organization. The significance of this process is obvious.

Generally, these initiatives make the workers more comfortable with themselves and their external environment. As a result, stress and depression is alleviated from the workers. Ultimately, the organization is set to gain from the innovative, motivated and focused employee.

Most organizations always aim to acquire maximum gains and exploit the full potential of their workers (Aamodt & Aamodt 2010, p. 83). This is only achievable if the worker has a balanced work and private life. It is not necessary for organizations to gain at the expense of its workers.

Such conditions have led to massive rebellion and employee insurgence within some of the words renowned corporations. The management must be ready to control its work processes. This is part of employee wellbeing and commitment to excellence. The process also manages stress and depression likely to arise from job activities. Long working durations without breaks and overtime pays cause stressful work conditions.

Organizational policies should clearly outline its level of commitment to ensuring the welfare of its workers. This must be articulated and practiced in a satisfactory and faithful way by all relevant departments and officers. Increased level of stress might lead to the interference with crucial work process and employee relationships (Griffin & Moorehead 2012, p. 35).

Moreover, anxiety and fear have led to the development of depression amongst employees. This is because systems are designed in such a way that they deprive the workers of their personal and basic rights or entitlements. There are specific job conditions that will influence the organizational behavior in a positive manner.

According to various theoretical models, the social needs of employees form a vital component of successful performance and personal wellbeing. The Mayos theoretical model advances this concept in a transformative and practical approach.

The model is very distinct for this case because it helps to eradicate stressful working conditions or environments. All employees, including the managers, executive directors, supervisors and ground workers must be linked (Kaiser & Ringlstetter 2011, p. 64). This linkage becomes possible and productive through positive and healthy relationships.

Principally, the theory emphasizes on the need for constructive relationships and associations within all work environments. The employees have a personal role to enhance the formation and sustainability of this positive linkage. For instance, they must adopt and practice effective and transformative interpersonal skills amongst themselves. These skills help in the identification and consequent support of compromised workers who might be undergoing stress or depression.

Teamwork and group activities are important supporting instruments in the process of achieving collective goals. They enhance positive integration and socialization amongst workers. These help to strengthen links and relationships that might be necessary for support systems. In order to avert the consequences of stress and depression, organizations must set up various psychosocial support units (NaSwall, Hellgren & Sverke 2008, p. 57).

Engagement of professional counsellors and psychiatrists may help to strengthen the existing support systems and networks within the human resources department. It is significant to have proper communication and feedback processes or channels within the entire organization. Without communication, there is bound to be great misunderstanding. This is might be realized within the different departments and even amongst the workers.

All procedures and process outlines must be well documented and served to every relevant person in the organization. This helps to maintain the organizational processes within a standard operating guideline. The fundamental principle behind work and private life is the satisfaction of ones psychological demands (Mooney 2004, p. 71).

Categorically, it is the mandate of an organizations management to ensure that all employees attain psychological satisfaction. This is recommended at any given point and stage. A critical examination of the Maslows hierarchy of needs indicate the basic or fundamental demands that every man must attain.

These are very applicable in the case of employee emotional and mental satisfaction. It is upon the organization to ensure all employees meet some of these basic needs. They must also assist their workers to attain certain degree of satisfaction and comfort. Analytically, this involves practicing the concept of stewardship (Knights & Willmott 2007, p. 98).

Lack of proper satisfaction may cause serious and negative consequences. Some of these include the emergence of stress and lack of motivation of the workers. Organizations also become redundant with limited progress towards their basic goals and vision. Presently, organizations have devised strategic approaches of dealing with these challenges.

Provision of crucial incentives is one of the common ways through which organizations have supported their workers to meet their needs. A lot of precaution should be taken when organizations resort to offering these incentives. This is majorly due to the notable differences in ranks and roles within of different workers within the organization (Aamodt & Aamodt 2010, p. 103).

Nonetheless, actions related to performance appraisal and employee reimbursement are crucial and must be handled with a lot of sensitivity. It is observable that an integrated management program is necessary for enhancing employee performance. Maximum output is only attainable when there is an operational system balance between work and private life.

Conclusion

Organizations must undertake strategic measures to remain competitive. The increasing rate of technological applications and globalization has revolutionized the human resource market. This trend is observable from a global perspective. Employee welfare is increasingly becoming the core factor in determining the level of performance of different organizations.

To enhance this performance, several important factors must be taken into consideration. Some of these include the aspects of work and private life. Generally, there must be a balance between these two concepts. It is important to indicate that employees must strive to minimize stress and depression.

List of References

Aamodt, G & Aamodt, G 2010, Industrial/organizational psychology: an applied approach, Wadsworth, Belmont, CA.

Bailyn, L 2006, Breaking the mold: redesigning work for productive and satisfying lives, ILR Press, Ithaca, N.Y.

Griffin, W & Moorehead, G 2012, Organizational behavior: managing people and organizations, South-Western/Cengage Learning, Mason, OH.

Kaiser, S & Ringlstetter, J 2011, Strategic management of professional service firms theory and practice, Springer-Verlag Berlin Heidelberg, Heidelberg.

Knights, D & Willmott, H 2007, Introducing organizational behaviour and management, Thomson Learning, London.

Mooney, G 2004, Work: personal lives and social policy, Policy Press in association with the Open University, Bristol.

NaSwall, K, Hellgren, J & Sverke, M 2008, The individual in the changing working life, Cambridge University Press, Cambridge.