The Management of Small and Medium Enterprises - Free Essay Example

Sample details Pages: 7 Words: 2006 Downloads: 9 Date added: 2017/06/26 Category Management Essay Type Research paper Did you like this example? SMEs The small scale industries play very heavy role in fuelling the overall economic growth. The small scale industries set up by entrepreneurs have contributed to the increased shares in the overall production, exports and capacity utilization of SMEs. The significance of SMEs in giving large-scale employment is of a supreme importance. Don’t waste time! Our writers will create an original "The Management of Small and Medium Enterprises" essay for you Create order In generally the whole of articles the overall performance of the SMEs has been examined in intensity on the basis of the different parameters. Most of the economies do not enjoy place advantage in terms of raw materials and reach to nearby markets because of most of its industries and on top of that it is true tough because of SMEs. The industries which have developed are mostly dependent on money from other countries for satisfying the demand. As far as the arrangement of the products manufactured by these true industries is concerned, reliance on outside markets is quite considerable. Products in what one the region has come to specialize include textiles, sports, electrical and electronic products, agricultural products, machinery, etc. According to my understanding, in order to grasp better conduct of any business, a substantial thing is to select the right form of organization since the amount of capital, risk and control; etc the whole of depends on the form of the busin ess organization. There are lots of issues that the SMEs face in order to survive. They are Sources of Funds The main source of funds was from personal and family sources. The entrepreneurs in developing countries depend mostly on family funds while those in developed economies try to tap some nearby sources like allies. However in developed economies the resources come from the government as well as banks. External Motivating Factors There are a number of factors, which motivate a person to enter into any industry. Some factors are internal whereas others are external. Among the external factors are incentives to start up the new ventures encouraged by low barriers to entry into entrepreneurial activities. Heavy demand for the product, high profit margin and other external factors are other reasons for the SMEs to open the business into new territories. Managerial Performance of Small Scale Units An effort has been made to scrutinize a variety of managerial problems like production, marketing, finance, organization behavior and the institutional support of the SMEs. Since the large number of SMEs become sick due to various managerial factors, hence, in order to capture the trend, a preliminary survey has to be carried out and in-depth analysis of various managerial problems should be undertaken. Similarly, various behavioral and socio economic factors of industrial entrepreneurs like age, group, belief, education, leadership qualities and motivational factors also play an important role in the working of the SMEs units. Government Policy/Incentives Government Policy and the incentives provided for the promotion of SMEs have had a positive effect on the performance of SMEs. Since the problems faced by SMEs are quite different and unusual, hence the respective governments are making necessary changes in the policies from time to time by introducing the provision of subsidy, incentives and infrastructural facilities to encourage the output of the SMEs. Labor Management Problems Since majority of the SMEs are labor intensive, they often face of the labor unrest and issues with the trade unions, hence it is quite suitable to find a reason for unrest/labor problems which respective governments have failed to do so and is creating unnecessary problems and a barrier for the SMEs to improve their performance. INTERNAL PROBLEMS OF SMEs Planning related problems Technical Feasibility : insufficient technical know-how Location disadvantage obsolete production process Economic viability : High cost of inputs Break-even point too high unprofitable size of project Choice of idea weak structure Faculty planning Poor Project implementation Lack of strategies Lack of vision insufficient connections Lack of Motivation Under estimation of financial requirements Unduly large investment in fixed assets Over estimation of demand Implementation Cost increases resulting from delays in getting licenses and sanctions, etc. and insufficient liquidity in the market. General Problems Production management: unsuitable product mix pitiable quality control pitiable capacity utilization High cost of production pitiable inventory management Inadequate maintenance and replacement Lack of timely and adequate modernization etc. High wastage Poor production Labor Management : Very high wage structure Inefficient handling of labor problems Excessive manpower Poor labor productivity Poor labor relations Marketing management : Dependence on a single customer of a limited number of products Poor sales realization Defective pricing policy Booking of large orders at fixed prices in an inflationary market Weak market organization Lack of market feedback and market research Lack of knowledge of marketing techniques immoral sales/ purchase practices Financial Management Poor financial planning inaccurate costing factual dividend policy General financial indiscipline and application of funds fo r unauthorized purposes shortage of funds Over trading Unfavorable gearing or keeping adverse debt-equity ratio Administrative Management : Lack of professionalism Lack of feedback to management Lack of control Lack of timely diversification unnecessary expenditure on Research and Development External Problems Infrastructural : Location Power Water Communication Non-availability or irregular supply of critical raw materials or other inputs Transport bottlenecks Financial : Capital Working capital Long-term funds Recovery Marketing Taxation Raw material Industrial and financial regulations Inspections Technology Government policy Administrative Hurdles Rampant corruption Lack of direction Competitive and volatile Environment Innovation and SMEs Innovation worthy of the name is a test, and so it is easy to predict that organizations will always have difficulty in doing it efficiently. A lot of opinion leaders have debated that innovation activity is something that must necessarily be cut off from the rest of the organization. Amount of  prudence that  may  occupy  can or cannot be adjusted to  revolutionary  technologies or not?  Can the organization sustain with its current base of familiar customers or not?, changing a strategic paradigm will bring a change or not?, breaking out of prevailing patterns of decision making, adjusting the product architecture, and learning from experience will bring change in the motivation levels and will it take the organization forward or not?, being any and all of these, it is understandable that managers always seek to bring in innovation through the business processes. The four activities that stemmed out of the articles about innovation Market-technology Linkage It seeks to link purchaser needs with the organizations technical capabilities such that the product has integrity, i.e.- its design reflects the firms technological, manufacturing, and marketing capabilities, customers needs, and market structure. Techniques because of the performance of this linkage include exposure to lead users and close interaction with (potential) customers through, for example, team visits of customer premises to determine in what manner the product might best meld with the customers processes or own product offering. Market-technology linking attempts to bridge inside and outside. The development of one organization identity in terms of the value it provides to customers may be a passage of bridging inside and outside and breaking the strong inward pull of day-to-day operations from one side allowing the different functions- most notably, perhaps, marketing and manufacturing-to invoke common context for their interactions. Organizing for Creative Problem-Solving This describes the coordination of interdependent activities: understanding the constraints people in various functions face, anticipating their needs, and pulling scattered information together from one side constant interaction. The tension here is between aged and new: the new product may require new suppliers, new procedures, novel parts and it must compete in the resource-allocation process through products profoundly embedded in the organization through existing ways of working. However, a capacity to see the organization as process is also vital if the complexity of innovation is to be managed. It is crucial for everyone to view the organization as a process; individuals can see how their work flows into the work of others and how products involve. Monitoring and Evaluation These two constitute the third put of activities underlying innovation, and describe the need to lay upon n-going cost/benefit analysis to the innovation effort. Given inherent ambiguity, innovators be obliged o rely on others to assess progress, which involves, for example, accepting the judgment of others and integrating diverse views without compromising the project. Phase and budget reviews are two techniques that provide assistance, yet this particular activity is also problematic. One may rely on abstracted processes of formal control to coordinate a broad variety of activities. Commitment to the Innovation Process This aspect comprises the final put of activities; a commitment that is greater degree of depending than regular act because of the ambiguity inherent in innovation. Teamwork may provide the satisfaction of both accountability and confidence and so help generate commitment; career paths, broad interpretation of work roles, and operational autonomy all contribute to broadening it. The tensions between independence and responsibility are embodied in the issue of commitment, and this is single of the most challenging tradeoffs in theory in the manner that spring as in practice. And because, over time, individuals will announce to different supervisors, be on distinct teams, and form new act relationships, generating such a sense of commitment is an organization-wide issues and cannot be assigned to the project level. But in emphasizing control within organizations single also emphasizes individual accountability, through systems of measurement and exact job definition, to an extent th at encourages individuals to limit their personal responsibility. Innovation and Society In method to grasp any debating of capacities because of innovation it is therefore, necessary to receive into record the social context and we also have to consider the institution that form them. Diverse institutional arrangements have lack of vision encourage different forms of organizational activity. A theory of innovation in the context of developing countries like Cyprus and even Austria allows us to see more clearly in what manner broad characteristics of an alliance to act to defeat economic disadvantages through their influences on organizational-level behavior. Innovation in Developing Countries In the context of developing economies, technology has been the traditional point of concentration of researches while conduct with the egress of the describing of capacities because of innovation. Innovations are generally believed to be centered on transfer of technology, appropriate condition intervention and provision of incentives because of innovation. Consequently, innovation in developing countries had primarily get a move of economists who analyze like issues at either the country or industry level; at most good studies have considered only the very large environment that environs organizations. It is even that market forces are considered to be responsible because of all change that occurs in society and the sustainable competitive advantages are the chief way to formulate a corporate strategy geared towards innovation. Any observed act on innovation in developing countries is at the level of organizations is noticeably poor. Thus change in the context of development h as typically been treated in conditions of efficiency and a principle of adopting most good practices. The only assurance of change in a developing society that is considered heavy enough is technological and the single passage in what one capacities because of innovation be able to be developed is from one side adopting best practices. Successful product-innovation adds value because of the customer, and is achieved from one side the unfolding of underlying capacities which can be related to action. However, just in the manner that single organization cannot confide to successfully exist out of re-engineering its processes and in the manner that a proceed capacity, the extent to what the capacities themselves are attainable is really influenced from one side the sort of organization that draws its members. Such a framework should be of especial use to entrepreneurs doing ownership in developing countries. It provides an instrument for evaluating the likely usefulness of Western man agerial practices, and for intellect what necessarily to change because of innovation is to become a part of any firms on-going activities. Conclusion Providing as it does multidisciplinary perspectives on entrepreneurship (SMEs) and innovation in the context of economic and social development, the 20 articles can be essential read for even management experts, managerial trainers, designers of entrepreneurship development programmes and even policy makers.

The Violence Of African American Communities - 953 Words

With the many conversations about the African-American communities and their issues with gang violence, government assistance, and the lack of jobs in their communities it is clear to say that the American Dream or even a moderate lifestyle was not created for all African Americans and Minorities and since we found a way to be noticed, heard, and felt like they’re rightfully a part of something America wants to now label it â€Å"war or Drugs† and â€Å"gang Violence† thus creating Gang Injunctions in those predominantly of color communities. Now I am not stating that the violence is not present, innocent lives are not being taken, nor are drugs consuming our communities, but what I am saying is that they act as if there is no other approach that could help clean up the streets, provide piece and harmony among all communities, and solve issues for the betterment of the community. Instead they are removing them from their communities, threatening them from going t o their neighborhood, and as a consequence they get jail time, an institution that already houses half if not more than half of our black men. The gang injunction initiative is set up to tear apart the minority communities through driving up the prices and making them move, especially if they have a family member who is under the injunction’s rules. Its ironic how they put them in such enclosed space, while they make suburban home for the economically fit causing them to commute and now they are systematically removing themShow MoreRelatedThe Prevalence Of Gun Violence Essay1457 Words   |  6 PagesPrevalence of Gun Violence In African American Communities Introduction Each year homicide and assault-related injuries result in an estimated $16 billion in combined medical and work loss (http://www.huffingtonpost.com/2012/10/17/education-gun-violence-presidential-debate-2012_n_1974740.html). 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The Use of Money as a Motivational Factor in the Workplace Free Essays

string(101) " known that different people are motivated by different factors just as they are gifted differently\." Haohan Wu Vladimir V Kalugin PHIL 305 08. 19. 2012 The Use of money as a Motivational Factor in the Workplace Claim: This paper aims at proving that the use of money as a motivational factor in the work place is equitable to a bribe and should not be allowed. We will write a custom essay sample on The Use of Money as a Motivational Factor in the Workplace or any similar topic only for you Order Now Explanation of the Claim: To start off, there is need to explain as to what motivation means and how money comes into the equation. According to Saddiqui, motivation is the act of giving another person the incentive or a reason to do something (1). That is, giving the individual the hope or support to carry out a particular act. Psychology Today quips that motivation is the desire to do something (2). As such, motivating is the act of creating the desire to do something in an individual. That is, propelling someone towards doing a particular thing as opposed to pushing an individual away. To further explain the aspect of motivation, Bizhelp (para. 1) explains the Herzberg’s Two Factor Theory of motivation, which has it that there are two types. First of all are the factors that motivate the individuals to continue working. These are the factors that make the people appreciate their job; hence they continue putting all their efforts at it. On the other hand, there are the factors, which prevent job satisfaction. These are not, in whichever way, related to the happiness of the individuals. Rather, they just remove the unhappiness from work; hence making the people work more comfortably. In other words, they are referred to as the hygiene factors. Business Plan Hut explains that there are many ways of motivating the employees and those monetary incentives are one of the many ways (para. ). With the concept of motivation well explained, there is the need to look at the definition and explanation of a bribe, so that a comparative analysis of the two can be carried out to show that monetary incentives and the bribe are one and the same. According to the Merriam Webster Dictionary, a bribe is â€Å"money or favor given or compromised in order to influence the judgment or conduct of a person in a position of trust, or something that serves to induce or influence† (1). By bringing these two definitions together, that is the efinition of motivation by money and that of a bribe, it can be seen why this essay takes that monetary motivation is equivalent to a bribe. It comes out quite clearly that money is a major factor in bribing, just as it is when used as a motivation factor. The above explanations bring about a controversial issue as pertains to the issue of using money as a motivational factor. It is, therefore, quite important to look at the issue in more detail so as to come up with a solid argument as to whether money should be used as a motivation factor or not. The argument will be largely based on the definitions given, and will rely on the understanding of the writer as pertains to the issue of money and motivation. These factors will be explained in detail in the following section of the argument. Reasons for the Claim Below are some of the reasons as to why this paper holds that monetary incentives should not be used as a motivation factor within the workplace: 1. From the definitions given above, it can be seen that a bribe is a monetary incentive given to an individual so as to sway his decision or act in a given manner. In other words, it is practically buying an individual so that he can act in a manner that is in accordance with the desire of the individual giving the bribe. The same happens when an individual is given an incentive as a motivation factor. It is aimed at making the individual feel kind of obliged to give a particular service or deliver given results so as to get the incentive. By any means, this is a bribe in disguise, and should not be allowed at all since it leads to the corruption of morals within the organization. 2. Monetary motivation can be seen as a form of manipulation of the employees. This is where they are put in a position where they have to fulfill a particular requirement so that they can have the incentive. Practically, it is the kind of analogy where the employee plays the dangling carrot with the employees. The employees feel or assume that they are working hard so as to get a specific reward, while in the real sense; the employer is playing his cards so as to make the employees work even harder for him. The monetary gain seems so enticing for the employees that they work so hard just to get it, while all the time, the employer gets the lion’s share. The trick works in the exact manner as a bribe. Give something little and get much in return. 3. Monetary incentives can ruin or corrupt the morals within an organization. This can be seen in the cases where the employees understand that they have to achieve something or hit specific standards so that they can get the reward that is promised to them. As such, they can go to whichever ends so as to reach these standards, due to their need for the money. This works the same way as a bribe does. When people are bribed in order to do something, they have to make sure that they use whichever means possible to arrive at the expected result. Whether the means are wrong or right. In other words, there is total disregard of transparency or the ethics code of conduct. 4. Lastly, there is the fact that monetary incentive as a motivation factor can plant conflicts and unnecessary or unhealthy competition amongst the employees. It is well known that different people are motivated by different factors just as they are gifted differently. You read "The Use of Money as a Motivational Factor in the Workplace" in category "Essay examples" As such, when the rewards are given in terms of cash, there is a high possibility that those who get the reward work hard and continue delivering the results while those who do not get the reward are de-motivated. This works out exactly like a bribe. Some people are favored and others are not. Rivalry comes in within the organization and the performance is hindered. This caps the reasons as to why monetary motivation should be avoided. Therefore, there is always the other side of the coin in everything. In this case, there is another argument as concerns the use of monetary motivation, which tries to indicate that it should be allowed. The reasons are as stated below. i. First of all, it is acceptable that there are many ways of achieving a set goal. The same applies in the work place. When there is the need to motivate the employees, there are various methods that can be applied. The use of monetary incentives is just one of them. Therefore, there should be no hullaballoo as to why the monetary motivation is not used. In fact, monetary incentives hit the charts as one of the most effective ways of motivating the employees to achieve the goals of the industry, which puts the organization on the right track to achieving its overall objectives (Anon. , 1). ii. Just like in any other setting, it is agreeable that there are always the positive and the negative sides of any given act. As such, there are the advantages and the disadvantages of using monetary incentives as a form of motivation. As such, there is no need to demonize the act and term it as a bribe. Otherwise, if this was to be taken as the standard in different arguments, then a lot of activities would be written off since there would be the dark side in every single of them. In this case, the focus should be on the positives and the negatives, and whichever wins carries the day. Monetary motivation should not be ruled out even before it has been tried. iii. It is well known that in the business setting, the ultimate goal is to make profits and be the most competitive. This does not come all that easily since there are various hurdles that have to be overcome. Just like in any field, there have to be ways of going about these hurdles. When it comes to the employees, motivation, nothing seems to work out better then the use of the monetary incentives. As such there is no reason as to why this should not be employed in the business setting. iv. Lastly, it can be said that the main reason as to why people seek for employment is so that they can make money. This means that they work hard so that they can achieve this goal. As such, it can be seen that the main reason as to why they are motivated is what they get from the employment. As such, when monetary incentives are used as a motivation factor, they do not come in as a bribe. Rather, they just indicate to the employees that their hard work is all that matters. The more you work, the more you get. Simple and clear. Decision After looking at the reasons and the arguments presented above, this paper goes in favor of the claim. It, therefore, agrees that the use of monetary gains as a motivation factor should not be encouraged in the work place. It is equitable to a bribe, which is ethically and morally wrong. The reasons for taking this stand are well explained in the section that follows. Rebuttals i. While it is acceptable that there are many ways of motivating the employees, it is also important to look at the various outcomes of the different strategies that are applied. In this case, it has been proven that the use of money as a motivation factor has quite a lot of disadvantages that put the organization’s integrity at risk. As such, there is no reason as to why this method should be chosen while there are others that deliver the same result but at a much lower risk. Business entails making wise decisions, and using monetary motivation does not pay out in this case (Burns, 1). ii. As already explained above, being in business entails looking at the prevailing situation, analyzing the benefits and demerits of a given decision then making a decision from this analysis. This calls for a very practical and critical mind that cannot be deceived by the face value of a deal that seems to be so good. For this reason, it is agreeable that the use of money as a motivation factor has its advantages and disadvantages. After weighing both, it appears that the disadvantages are more. Why, then, should an organization take the risk while there are other safer ways of getting the work done? iii. It is commonly said and known that two wrongs do not make a right. In the business sense, it cannot be denied that there are the hurdles that have to be overcome. But just because the hurdles are there, it does not mean that anything passes as long as it aims at dealing with the hurdles. Rather, the spirit of doing things right should apply in this case. The hurdles should be overcome in a manner that does not create more problems. The methods used should be very ethical and straight. v. It is true that the reason as to why people seek employment is so they can make more money and live more comfortable lives. It is also true that people who get into crooked deals such as corruption, vandalism and embezzlement of funds also do so in a bid to make more money and live good lives as well. As such, this cannot be used as the reason fro using money as an incentive. After all, hum an wants are insatiable and money cannot quench them all. Instead of providing a shortcut to making more money, organizations and businesses should focus more on doing this in the right manner. Works Cited Anonymous. Employee Morale. Business Community, 2012. Web, 24th July 2012, http://www. ehow. com/employee-morale/ Bizhelp. Motivation in the Workplace. Bizhelp24. com, July 21, 2012. Web, 24th July 2012, http://www. bizhelp24. com/personal/employment-and-personal-development/motivation-in-the-workplace. html Burns, Gabriel. The Disadvantages of Extrinsic Motivation. Ehow. com, 2012. Web, 24th July 2012, http://www. ehow. com/list_6534932_disadvantages-extrinsic-motivation. html Business Plan Hut. Motivating Employees. Businessplanhut. com, 2012. Web, How to cite The Use of Money as a Motivational Factor in the Workplace, Essay examples