Increasing Knowledge Intensity


Knowledge (information, intelligence, and expertise) is the basis of technology and application. In the 21st Century competitive landscape, knowledge is a critical organizational resource  and is increasingly a valuable source of competitive advantage. Because of this, many companies now strive to transmute the accumulated knowledge of individual employees into a corporate asset. Some argue that the value of intangible assets, including knowledge, is growing as a proportion of total shareholder value. The probability of achieving strategic competitiveness in the 21st Century competitive landscape is enhanced for the firm that realizes that its survival depends on the ability to capture intelligence, transform it into usable knowledge, and diffuse it rapidly throughout the company. Firms that accept this challenge shift their focus from merely obtaining the information to exploiting the information to gain a competitive advantage over rival firms.

 

Conditions in the 21st Century competitive landscape shows that firms must be able to adapt quickly to achieve strategic competitiveness and earn above average returns. The term strategic flexibility describes a firm’s ability to do this. Strategic flexibility is a set of capabilities firms use to respond to various demands and opportunities that are a part of dynamic and uncertain competitive environments. Firms should develop strategic flexibility in all areas of their operations. Such capabilities in terms of manufacturing allow firms to “switch gears—form, for example, rapid product development to low cost—relatively quickly and with minimum resources.

 

To achieve strategic flexibility, many firms have to develop organizational slack. Slack resources allow the firm some flexibility to respond to environmental changes. When the changes required are large, firms may have to undergo strategic reorientations. Such reorientations can drastically change a firm’s competitive strategy. Strategic reorientations are often the result of a firm’s poor performance. For example, when a firm earns negative returns, its stakeholders are likely to place pressure on the top executives to make major changes. To be strategically flexible on a continuing basis, a firm has to develop the capability to learn. The learning continuously provides the firm with new and current sets of skills. This allows the firm to adapt to its environment as it encounters changes.

 

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

Corporate Structure in the Global Economy


Corporate structures will be increasingly expected to deal with tension-producing forces, as well as compressive ones. Among them is the tendency for companies to become increasingly spread thin as they respond to an expanding multitude of masters. And it is likely that both employees and their governments will take their turn demanding greater attention to their particular needs and requirements. On top of these whiplash-inducing pressures will be the ongoing operational tensions arising from the continuing use of speed as a competitive weapon.

 

As if these ongoing pushes and pulls will not be enough of a challenge, most businesses will also face the requirement to be more flexible than ever in deploying and redeploying resources to mact the moving targets provided by customers’ requirements and competitors’ advances. The globalizing marketplace tends to be unforgiving when corporate inertia or bureaucracy limits flexibility. This degree of organizational elasticity—stretching to accommodate special situations, then returning to the original shape to meet regular demands—is already a necessity in many industries. Soon it will be mandatory in most.

 

A measure of plasticity will be needed, as well. The ability to change an organization’s shape, to adapt to new markets or to reconfigure around emerging capabilities, will be another dynamic quality in the repertoire of the new corporation. This attribute—the ability to reorganize completely every several years without succumbing to terminal brittleness—is a rarity in most companies today. But it will be common among those that thrive into this 21st Century.

 

Just as architects have never found a single, always appropriate building block for every structure, organization designers are also unlikely to find one. But the old building blocks of narrowly defined jobs used in tandem with traditional supervision are not working. Perhaps the lead of the architect can be followed, and companies can learn to select organizational building blocks that can be adjusted to cope with the forces they face at a particular time. In keeping with what has worked for the architect, organization planners can:

  • Reinforce jobs to ensure they have the strength to resist the tensions and compressions they must increasingly cope with.
  • Use the organizational equivalent of composites—teams—when job reinforcement alone is insufficient to provide the company with an appropriate degree of flexibility.
  • Make sure that the company’s managers are in load-bearing roles—ones vital to the organization’s structural integrity—and act as drivers of the business’s ongoing adaptability, rather than mere definers of unneeded internal walls.

 Reinforced jobs, composite teams, and load-bearing managers—these may well be the most useful raw materials from which the structure of the corporation is shaped.

 

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

The Job Analysis


Job analysis is the procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it.

Organizations consist of positions that have to be staffed. Job analysis produces information used for writing job descriptions—a list of what the job entails thus enwrapping duties, responsibilities, reporting relationships, working conditions, and supervisory responsibilities—and job specifications—what kind of people to hire for the job.

The supervisor or HR specialist normally collects one or more of the following types of information via the job analysis:

  • Work activities. First, he or she collects information about the job’s actual work activities, such as selling, teaching, or painting. This list may also include how, why, and when the worker performs each activity.
  • Human behaviors. The specialist may also collect information about human behaviors like sensing, communicating, deciding, and writing. Included here would be information regarding job demands such as lifting weights or walking long distances.
  • Machines, tools, equipment, and work aids. This category includes information regarding tools used, materials processed, knowledge dealt with or applied (such as finance or law), and services rendered (such as counseling or repairing).
  • Performance standards. The employer may also want information about the job’s performance standards (in terms of quantity or quality levels for each job duty, for instance). Management will use these standards to appraise employees.
  • Job context. Included here is information about such matters as physical working conditions, work schedule, and the organizational and social context—for instance, the number of people with whom the employee would normally interact. Information regarding incentives might also be included here.
  • Human requirements. This includes information regarding the job’s human requirements, such as job-related knowledge or skills (education, training, work experience) and required personal attributes (aptitudes, physical characteristics, personality, interests).

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