Efficiency versus Competition


Is big business efficiency more important than preventing competition? Many big companies claim that their large size makes possible many operating economies.  Today’s complex technology, far-flung markets, complicated financial systems, and transnational competition make bigness essential for survival and efficient operation. Placing restrictions on today’s corporate growth just to preserve a competitive ideal formed during the eighteenth and nineteenth centuries seems to make little economic sense. On the other hand, others point out that competition stands at the heart of private enterprise ideology and that small businesses, consumers, and workers should be protected against big business expansion even though it may mean a loss of efficiency.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Aging Crisis


Not a company exists whose management doesn’t say, at least for public consumption, that it wants an organization flexible enough to adjust quickly to changing market conditions, lean enough to beat any competitor’s price, innovative enough to keep its products and services technologically fresh, and dedicated enough to deliver maximum quality and consumer service.

So, if managements want companies that are lean, nimble, flexible, responsive, competitive, innovative, efficient, customer-focused, and profitable, why are so many. Companies are bloated, clumsy, rigid, sluggish, non-competitive, uncreative, inefficient, disdainful of customer needs, and losing money. The answers lie in how these companies do their work and why they do it that way.

Corporations do not perform badly because workers are lazy and managements are inept. Just the same, the record of industrial and technological accomplishment over the past century is proof enough that managements are not inept and workers do work.

Inflexibility, unresponsiveness, the absence of customer focus, an obsession with activity rather than result, bureaucratic paralysis, lack of innovation, high overhead—these are the legacies of industrial leadership. These characteristics are not new; they have not suddenly appeared. They have been present all along. If costs are high they can be passed on to customers. If customers are dissatisfied, they have nowhere else to turn. If new products are slow in coming, customers will wait. The important managerial job is to manage growth, and the rest doesn’t matter. Now that growth has flattened out, the rest matters a great deal.

The business problem is that in 21st century with companies designed during the nineteenth century to work well in the twentieth—we need something different.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Creative Management Operations


Operations management was a major area of organizational creativity in the era of scientific management during the late 19th and early 20th centuries. It got a recharge in the 1950s and 1960s when mathematics and computer science were utilized through operations research models to schedule production, arrive at optimal inventory levels, and so forth. The superior productivity and quality of Japanese manufacturing induced a further revolution in operations management in the 1970s and 1980s, and management vocabulary was enriched by Just-in-time (JIT), Kanban, Total Quality Management (TQM), quality circles, continuous improvement, and so forth. And yet there is much scope for operations-related creativity.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Job Enrichment and Redesign


Although the extreme division of labor was successful with the uneducated workers of 20th century, it doesn’t make as much sense today. For one thing, highly specialized jobs rarely satisfy today’s better-educated and more sophisticated workers, many of whom know more about the technical aspects of their work than their supervisors do. Moreover, machines have taken over some of the specialized tasks previously performed by workers. Faced with these changes, many companies are attempting to boost productivity by reorganizing the way jobs are done. One type of job reorganization is job enrichment—giving workers a more vivid sense of where they fit into the organization by making their jobs less specialized and giving them more meaningful work to do.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Law in Business


A person who is involved in business is also involved in the law concerning business. Making contracts and using negotiable instruments—both of which are legal concepts—are the essence of business. Business and law were closely associated even when there were few lawyers and business managers spent relatively little time with them. The growing importance of law in business, however, is shown by the rapid increase in the use of lawyers by people in business. In recent years, the number of corporate counsel, the full-time lawyers who are employed by corporations; has been growing faster than the number in any other category of attorneys. Law firms that serve primarily business people have also been expanding at a great rate. Even the smallest businesses turn to lawyers frequently.

In the past quarter century there has been a qualitative as well as a quantitative change in the concern of business managers with law. In earlier times, business managers generally employed lawyers only in emergencies. A lawyer might be engaged if a summons to appear in court was received, if a businessperson could not collect a debt that was due, or if a supplier’s goods were defective and no settlement could be reached. Lawyers are still sought out when such things happen today. However, more and more, business managers employ lawyers to help them plan to avoid such emergencies and comply with a rapidly growing mass of legal rules imposed on business operations by government bodies. This use of lawyers by business people is called preventive law.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Public-private partnership


In this era of modernization in many aspects of public administration, most developing countries continue to follow century-old concepts and structures. They seriously need structural adjustment thereby launching legislative and administrative reforms, which stress a reconsideration of the role of the public administration in the conditions of democratization and market-economy. A greater emphasis needs to be placed on effectiveness of the public administration. The practice and legislation of such countries should affect patterns of the role of public sector and influence fundamental features of the system of governance. A common goal should be to introduce a more contractual, participative, discretionary style of relationship: between different levels and agencies in administrative apparatus; between the decision-making authorities and operating units; and between administrative agencies and producing units, public or private.

A major reform objective in public sector management should be to increase, within the framework of democratic accountability, cost effectiveness in the public provision of goods and services. Both citizens and public administration accept the need for improved quality in the public sector.

They need to hold high the aim of structuring an effective mechanism for achieving policy objectives, determined at central, provincial and local levels for increasing efficiency, effectiveness and accountability in providing public services.

The legality and the efficiency of providing such public services are of great concern. Local authorities are empowered to do something that is intended to assist the carrying out any role.

Outsourcing is a way of contracting out one or more functions to specialist companies. This allows the public entity to concentrate on its core activities. There are three primary reasons for the public administration to outsource. The first is to achieve cost-effective provision of services. The second is to provide a choice for the citizens of producing and supplying public services of different qualities and kinds. The third is simply because there is no alternative due to a lack of staff with the requisite skills; need of relaxing the administrative burden, which somebody other could deal with even better and concentrating the attention on the core administrative matters; short deadlines for implementation. This last reason for outsourcing is to meet the needs, which exceed the capability of the public administration staff, because of a shortage of either staff or skills, or which give added flexibility to the administrative organization.

Thus, the outsourcing can be seen as a process through which relationships are managed and adjusted according to arrangements specified and conditions planned by the administrative authority in the contract documentation. The focus here is not on the legal issues of the contract rather than on the quality of contracting as a mechanism for achieving policy objectives determined at all levels of government for increasing efficiency, effectiveness and accountability. From this perspective the outsourcing by public administration can be considered as a joint commitment to partnership between public and private sector operating as a co-operative device for providing public goods and services.

The trend towards greater satisfaction of public needs and consumer empowerment underlies the role of outsourcing by public administration. The outsourcing is encouraged to secure higher quality of public works and services, whereby contracting managers are located closer to the consumer and so are better able to respond to their needs in actual delivery. The role of consumers and end-clients with respect to outsourcing can thus be increased. The strategies of improving responsiveness through outsourcing on the one hand, and hierarchical distribution of the administrative functions on the other, can be combined in a successful model of public service delivery. The administrative authorities – at federal, provincial and local levels – might participate in the specification of services and in the determination of contractual standards and terms of agreement.

As part of administrative reform outsourcing by public administration should be a high priority. The corresponding legislation should be based on three main principles—transparency, non-discrimination involving open selection criteria and open standards, specifications and standards regulated by law; and open competition.

The framework agreements are significant for ensuring the execution of the administrative power intent of the outsourced functions. The federal, provincial or local governments can use outsourcing as a tool for providing public services when carrying out their functions. They use outsourcing to get public results, which should be achieved when the governments exercise their administrative powers.

The outsourcing in some way can replace the direct administrative action. Such outsourcing has the compulsory nature same as this of the executive action which it replaces. The administration can use administrative or seek lawmaking authority to bring about the result it desires, if it is nonetheless outsourcing. A realistic view is that the process of deciding to outsource as well as the very process of outsourcing is a valid exercise of administrative power. The offered and agreed terms of the contract are also exercising of the administrative power. Once the contract signed, however, the particular relationships issued by outsourcing are moved under the regulations of the private law.

The government functioning can be improved by redefining its role: Policy-making instead of operative decision-making. It should stimulate tools for establishment of working, efficient, rational and fair practice, design of efficient allocation of financial and administrative wherewithal; transparency and control. The government must also realize that developing a training strategy for skills and incentives is badly needed.

The overall proportion of outsourcing in the field of public administration is generally expected to growing. Demand will increase for a variety of reasons.

Successful outsourcing, however, presupposes the existence of an efficient market. In

Pakistan the market for some categories of public goods and services is deficient of professionalism, integrity, and fair play. Such situation is creating conditions for corruption.

From another side, outsourcing itself contributes to developing the market.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight