...Chapter 03 - Markets, Organizations, And The Role Of Knowledge CHAPTER 3 MARKETS, ORGANIZATIONS, AND THE ROLE OF KNOWLEDGE CHAPTER SUMMARY This chapter answers three primary questions: How do market systems work? What are the relative advantages of market systems compared to central planning in large economies? Why do we observe so much economic activity conducted within firms in market economies? In addition to covering the basic principles of exchange and supply-and-demand analysis, the chapter introduces two concepts that are critical to the subsequent development in the book: specific knowledge and contracting costs. The chapter also makes the important point that individuals have incentives to choose value-maximizing organizational arrangements. An appendix presents the basics of present value analysis and the valuation of common stock. It also discusses the concept of stock market efficiency. This appendix provides useful background material (for example, when instructors want to discuss the stock market reactions to events). CHAPTER OUTLINE GOALS OF ECONOMIC SYSTEMS PROPERTY RIGHTS AND EXCHANGE IN A MARKET ECONOMY Dimensions of Property Rights Managerial Application: Patent for Priceline.com Managerial Application: Property Rights Insecurity in Columbia Gains from Trade Managerial Application: While Animosity between the Governments of Venezuela and the U. S. Grow, So Does Trade Managerial Application: Strategic Business Planning—Ignoring Economics of Trade Academic...
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...This article was downloaded by: [Hong Kong Polytechnic University] On: 3 June 2010 Access details: Access Details: [subscription number 738313287] Publisher Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 3741 Mortimer Street, London W1T 3JH, UK The International Review of Retail, Distribution and Consumer Research Publication details, including instructions for authors and subscription information: http://www.informaworld.com/smpp/title~content=t713735234 Knowledge and knowledge sharing in retail internationalization: IKEA's entry into Russia Anna Jonssona; Ulf Elga a Department of Business Administration, School of Economics and Management, Lund University, Sweden To cite this Article Jonsson, Anna and Elg, Ulf(2006) 'Knowledge and knowledge sharing in retail internationalization: IKEA's entry into Russia', The International Review of Retail, Distribution and Consumer Research, 16: 2, 239 — 256 To link to this Article: DOI: 10.1080/09593960600572316 URL: http://dx.doi.org/10.1080/09593960600572316 PLEASE SCROLL DOWN FOR ARTICLE Full terms and conditions of use: http://www.informaworld.com/terms-and-conditions-of-access.pdf This article may be used for research, teaching and private study purposes. Any substantial or systematic reproduction, re-distribution, re-selling, loan or sub-licensing, systematic supply or distribution in any form to anyone is expressly forbidden. The publisher does...
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...major influence in the operations of an organization. A workforce that is knowledgeable, adaptable, and receptive to new changes ensures the efficiency of the work system. According to Mello (2011), “An organization is only as strong or as weak as its employees, and the skills, backgrounds, and motivation these employees bring to their jobs will therefore be a key factor in the organization’s overall performance” (p.108). Planning could be in the form of performing a need analysis regarding human capital as it can help assess what is needed in terms of skills and capabilities in order for an organization to gain a competitive advantage. Planning can also include evaluating the external and internal market to evaluate what compensation and benefits are needed in order to attract the right employees. Evaluating what competitors offer and building a strategy to attract the right personnel can also result in attaining a high quality work force. Furthermore, it is essential for an organization that once they have the required skills from the current human capital pool that these be updated along with the goals and strategies of the organization. Having outdated skills would make a company lag in the outside market and to possibly be set in a disadvantage position. Cost-effective utilization of labor Managing labor effectively can reduce costs for any organization. This is true if there are evaluation methods in place and the organization is constantly monitoring the human capital...
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...International Bulletin of Business Administration ISSN: 1451-243X Issue 11 (2011) © EuroJournals, Inc. 2011 http://www.eurojournals.com Role of Knowledge Management to Bring Innovation: An Integrated Approach Kashif Akram Lecturer, Department of Commerce The Islamia University of Bahawalpur (Pakistan) E-mail: kashifdms@yahoo.com Tel: +92 63 9240298 or +92 334 7266860 Suleman Hafeez Siddiqui Lecturer, Department of Management Sciences The Islamia University of Bahawalpur (Pakistan) E-mail: sulman.siddiqui@yahoo.com Tel: +92 63 9240298 or +92 322 5172513 Muhammad Atif Nawaz Lecturer, Department of Economics The Islamia University of Bahawalpur (Pakistan) E-mail: atifnawaz_iub@yahoo.com Tel: +92 63 9240298 or +92 314 6864997 or +92 333 3030313 Tauqir Ahmad Ghauri Lecturer, Department of Management Science The Islamia University of Bahawalpur (Pakistan) Ph. +92 63 9240298 Cell +92 333 6183035 E-mail: tauqir.lec@gmail.com Amjad Khawar Hayat Cheema Lecturer, Department of Economics The Islamia University of Bahawalpur (Pakistan) E-mail: khawar790@hotmail.com Tel: +92 63 9240298 or +92 321 4076799 Abstract Purpose: The basic objective of the study is to reconcile the literature on knowledge management and innovation in organizations. The study seeks to examine and elaborate the linkage between knowledge management process and innovation process to dig out the important relationships and flows of activities. Design/Methodology/Approach: The study is induced using qualitative methodology...
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...Six Key Systems in Markets and Organizations Alfredo A. Brown MGT 5012- Dr. Bahaudin G. Mujtaba Introduction Markets and organizations are just like any other aspect in business. They have moving parts. Business is like a well-oiled machine with moving parts that create the final product. It is necessary for all the parts to be in good shape and working effectively. Without all six key systems in markets and organizations flowing smoothly and properly a business or business system cannot function properly as a “well-oiled machine”. Results can be quite dramatic based on the effectiveness and functionality of these six key systems; when one of the systems is off it affects the rest of the markets and organizations around it. On the other hand, when all six of these systems are working in sync and effectively, societies can flourish and advance in knowledge on a personal and organizational level. Division of Labor and the Mission System It is amazing sometimes to think why certain people have certain jobs and why those jobs are in the field they are in. Why is it necessary to have a CFO, CEO, manager, cashier, or even a custodian? The answer is simply, the division of labor. Just like the key systems as a whole, the division of labor is much like a machine with moving parts. People become employees, employees divide the labor, the labor results in a product or service, which subsequently results in value or profit...
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...Introduction……………………………………………………………………………………3 The organization……………………………………………………………………………… 3 Job Description of a manager in an organization......................................................................4 Organizational Structure...........................................................................................................6 Internal and external interactions of Managers.........................................................................8 Recommendation......................................................................................................................9 Conclusion...............................................................................................................................10 References...............................................................................................................................10 Introduction Organizations can be considered as a system which consists of a numerous number of people who coordinate and work together to achieve the common goal. Organizational behavior is the set of actions performed by the individuals or the attitudes of the individuals in a particular organization. For a manager it is very essential to study and understand the organizational behavior as it will assist him to identify and correct problems, establish necessary changes etc. Management or managers plays a vital role in organizational behavior and in achieving its goals (R.L, M, and N, 2010). The role of managers is considered...
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...Abstract. This paper tries to emphasize why in the era of globalization human resources are viewed as a source of competitive advantage? Therefore, the aim of this paper is to reveal that human resources management is essential to ensure the success of any organization which is based on the belief that an organization gains competitive advantage by using its people effectively and efficiently. Regarding this new challenge of HRM, this paper strives to identify whether the HRM can be considered as a source of competitive advantage of the firms or not? Finally the result of this study highlights the value of human resources (HR) and its strategic activities which have an influence on organizations performance and competitive abilities. 1. Introduction The term ‘human resource management’ (HRM) is simply the reflection of three words that does not provide much enlightenment. Where, ‘human’ implies it has something to do with people; ‘management’ places it in the domain of business and organization; but ‘resource’ is a highly ambiguous concept that many people find difficult to relate to [1],[2]. Now the question arises what exactly is the ‘HRM’? According to Storey [3], HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce. On the other hand, concerning to HRM, American Management Association (AMA), mentioned it can be described as the organizational function...
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...(Define HRM and roles and responsibilities) • HRM consists of the “people practices” at an organization. The policies, practices and systems that influence employees' behaviour, attitudes, and performance. • HRM process steps: (1) Analyze and design jobs, (2) recruit and select employees, (3) Training and development (prepares employee to carry out their jobs), (4) Performance management to ensure employee output matches organizations goals. • HR departments plan and administer pay and benefits. They perform activities in support of employee and labour relations (communication programs and collective bargaining). This requires establishment of HR policies. • Management relies on HR professionals for compliance with legislation, and support for company strategies (ie; workforce planning and change management. • HRM contributes to company performance. Influencing who is employed and how they work. If well managed, HR can be a competitive advantage by adding to “productivity, profits, and customer satisfaction”. L02 (HRM can support organizational strategies) • HR Professionals (HR P's) should know, and may contribute to development, of company strategy. • HR practices vary depending on type of strategy. Productivity improvements require HR leadership with effective feedback and rewards. When hiring for international operations abroad, they need to consider the differences in business practices. Even small businesses in local markets find that qualified...
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...an organization achieve its objectives. Strategic management as a professional field and discipline originated during the period of the half twentieth century, the 1950s with Igor Ansoff, Michael porter, Alfred Chandler and Henry Mintzeberg as the one of the main contributors in the development of the field of strategic management . During the 1950s, after the Second World War, academicians, researchers and practitioners basically paid very little attention to the practical concepts of strategy developed and embraced during the war. After normalcy and stability was achieved most business persons and investors started focusing and laying more emphasis on efficient and effective production in order to restore what was lost during the war. Consequently, production firms and organizations moved and shifted from an emphasis on operations, budgeting and controlling areas to more emphasis on planning aspects (Freeman, 2010). This arose as result of the dynamic environment that businesses were operating in and the urgent need for solutions which eventually demanded future planning taken at a larger perspective and view. This led to many businesses requiring the urgent need of having a corporate policy. With these, the seminar work of Chandler of 1962 placed and positioned the concept of strategy as a unique business function from marketing, sales, finance and production. In this case strategy was defined to comprise and involve planning on the long term goals of an organization (Freeman...
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...Emerging role of Knowledge Management with special reference to educational sector Chitranshi Verma Research Scholar & Faculty in Centre of Management Studies, G.S.College of Commerce & Economics,Jabalpur(chitranshi.verma@gmail.com) Purpose of the study: To find the effective use of new concepts like knowledge management in the education sector. Research Methodology: The study on this topic would mainly be conducted through the available secondary data. Globalization has brought in new opportunities to developing countries. Greater access to developed country markets and technology transfer hold out promises for improved productivity & higher living standards. It is a very positive force that has lifted the developing countries. With its advent various new concepts have emerged, one of them is knowledge management. Introduction- Knowledge Management (KM) comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizational processes or practice. Knowledge management is the process of transforming information and intellectual...
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...learning organization is something done BY people, not something done TO people or FOR people by someone else. So, the role of HR has to be in encouraging, facilitating, and supporting a move towards learning organizations. HR can never accomplish this themselves. Then, if executives want to move towards a learning organization, they should direct their operating units to do so, and direct HR to move into a supportive role. If it's the other way around, where HR gets the responsibility, it never works. Knowledge management (KM) "any practice or process of creating, acquiring, capturing, sharing and using knowledge, wherever it resides, to enhance learning and performance in organisations (Scarborough 1999). Knowledge management involves converting knowledge sources by classifying related information then circulating to make the information to take place. Not all information is knowledge or all knowledge is important. According to Blackler (1995), "knowledge is multifaceted and complex, implicit and explicit, physical and mental, verbal and encoded". He also categorises knowledge in four as: embedded (technological - collective), enculturel (Values, beliefs - collective), embodied (practical knowledge - individual), and embraced (theoretical understanding - individual). Contrast on Blackler, Nonaka (1991) proposes that knowledge could be either individual or collective, cannot be both. Yet another argument comes from Scarborough and Carter (2000). They believe that knowledge appears...
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...of Human Resources 1. Role of HR 2. HR Competencies 3. Future challenges for HR 4. Transforming process and critical success factors Introduction There has been some very important changes in the economy and business in the past two decades. The economies are merging creating a global market. The role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources. The role of HR has become more vital and important for each organization. It has a broader range of responsibilities and influence on the business path of an organization. Human Resources is switching from administrative and operational role to a strategic role, which makes a bigger impact on the economical well being of a company. HR should not be defined by what it does but by what it delivers – results that enrich the organization’s value to customers, investors, employees. David Ulrich 1. Traditionally HR is viewed that it performs basic functions or roles for an organizations: - Administrative role has been heavily oriented to processing and record keeping. This role has given HR management low...
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...culture on knowledge management Introduction: From 1993 knowledge was an important economic resources and to gain the competitive advantage organization should have emphasis on knowledge. Now a day its knowledge based economy in which knowledge based organizations have focus on the process of knowledge management which is knowledge creation, knowledge acquiring/learning, knowledge sharing and knowledge transferring. Organizational knowledge has two types tacit and explicit knowledge. Tacit knowledge basically subjective and experiential based which cannot be express in words while explicit knowledge based on objective and rational knowledge which can be express in words. According to Maggie Haines, NHS Acting Director of KM “Knowledge management is a process that emphasizes generating, capturing and sharing information know how and integrating these into business practices and decision making for greater organizational benefit.” Leaders play important and significant role in developing and maintenance the culture in an organization. An effective leader should be have understanding of organizational culture so that they can implement knowledge management effectively (S.K. Sharma & A. Sharma, 2010). Organizational culture means believe and value structure in an organization. We have taken two approaches of leadership; transformational and transactional leadership behavior. Problem statement: In developing countries few organizations has focus on knowledge management...
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...Following 5 1.2 Role of staff in effective decision making 7 1.3 Use of information from internal & external sources 9 1.4 Recommendation to improve information and knowledge 11 Reference List 12 Introduction This task understands about how to assess the information and knowledge needs, and I mentioned the roles of staffs who are working in the organization to improve their information and knowledge and also I mentioned the effective of decision making, this task contains how organization use internal and external sources for their organization. And finally I have recommended for some improvement for the organization. Executive summary This task mentioned how to understand information and knowledge which needed for an organization, and also I mentioned how to make an effective decision making within the time period. I found these notes and the balance information from the company showroom. And these information was helpful to the assignment which I have done and I got the internal and external source from my uncles whose the chairmen of MITSHU Marketing (pvt) Ltd. LO 01 Understand how to assess information and knowledge needs 1.1 Select a local company (department) where you can interview on executive staff, prepare a report on the Following Introduction MITSHU Marketing Private Limited was established in 1997. MITSHU is one of the leading importers and distributors of “MITSHU” brand home appliances and have firmly grasped the market development...
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...is rapidly changing, in order for an organization to stay ahead of the competition they must keep up to date information about the environment, the competition and the market segment chosen. The role of marketing has gone through rapid changes that require marketing strategies to be adapted to meet the needs of organization. Many organizations focused all their attention to inventory of a product or service, today the focus is all about the customers. The role of research in marketing Marketing research is the systematic and objective search for information that is relevant to the identification and solution of any problems that might arise in the field of marketing (Kotler & Keller, 2012). Marketing research is important for various reasons; it helps an organization, communicate effectively, identify and understand opportunities, and pinpoint obstacles or problems (Regional Entrepreneurial Collaborative, 2014). Marketing research plays a vital role in any organization that is trying to succeed in an existing competitive market. There are many businesses that compete for the same consumers. In order to maintain a competitive edge against the competition organizations need to stay ahead of the game with up to date information. The only way to obtain up to date information they must perform some research. Marketing a product into an unknown market is risky, organizations must first find out everything they can about that market, as well as evaluate through research...
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