Tag: Definition

Definition!

What is a Definition? It is a statement of the meaning of a term (a word, phrase, or other set of symbols). As well as, Descriptions can classify into two large categories, intentional purposes (which try to give the essence of a term) and extensional purposes (which proceed by listing the objects that a term describes).

Another important category of definitions is the class of ostensive illustrations, which convey the meaning of a term by pointing out examples. Also, A term may have many different senses and multiple meanings and thus require multiple reports.

A statement of the meaning of a word or word group or a sign or symbol dictionary definitions. The statement expresses the essential nature of something, a product of defining.
The action or process of stating the meaning of a word or word group.

What is Waste Management? Meaning and Definition
Waste Management: First Meaning of Waste, “Waste (or wastes) are unwanted or unusable materials. It is any substance which is discarding after primary use, or it is worthless, defective and of no use”. “Waste management or waste disposal are all the activities and actions required to manage waste from its inception to its final disposal. This includes amongst other things collection, transport, treatment, and disposal of waste together with monitoring and regulation. It also encompasses the legal and regulatory framework that relates to waste management encompassing guidance on recycling”. Also learn, What is Revenue Management?

Here is the article explains What is Waste Management? Meaning and Definition.

Waste can take any form that is either solid, liquid, or gas, and each have different methods of disposal and managing. Also, Waste management normally deals with all types of waste whether it was created in forms that are industrial, biological, household, and special cases where it may pose a threat to human health. It is producing due to human activity such as when factories extract and process raw materials. It is intended to reduce the adverse effects of waste on health, the environment, or aesthetics.

Sorts or kinds or Types of Waste:

From a wide perspective, waste can be arranged into four significant sorts as metropolitan waste, mechanical waste, biomass waste, and biomedical waste. With more explicit terms, waste can be ordered as:
- Strong or Solid Waste: Solid refuse comprises the number of things found in families alongside some business just as in modern areas.
- Fluid or Liquid Waste: Households and businesses create fluid waste.
- Natural or Organic Waste: Consisting of natural material, for example, food, nursery, and grass clippings natural waste incorporates creature and plant-based material and degradable carbon; for example, paper, cardboard, and wood, generally found in family units.
- Rural or Agricultural Waste: Waste created by farming incorporates waste from harvests and animals.
- Bio-clinical or medical Waste: Bio-clinical waste methods any waste, which is producing during the conclusion, treatment, or inoculation of individuals or creatures.
- Recyclable Rubbish: Recyclable junk comprises all waste things that convert into items; and, use again as a wide range of metals, paper, and natural wastes.
Meaning of Waste management:

Americans alone are responsible for producing a hope 220 million tons of waste a year. This number is far more than any other nation in the world. Because of this fact both the government and environmental associations have developed numerous methods of dealing with the problem. It is that solution, a rather complex issue that encompasses more than 20 different industries. Also, Waste management is the collection, transportation, and disposal of garbage, sewage, and other waste products.

As well as, It is a process of treating solid wastes and offers a variety of solutions for recycling items that don’t belong to trash. It is about how garbage can use as a valuable resource. Also, Waste management is something that every household and business owner in the world needs. They dispose of the products and substances that you have using safely and efficiently. Also learn, How to Creating an Entrepreneurial Culture?

Definition of Waste management:

As defined,

“The collection, transportation, and disposal of garbage, sewage, and other waste products. Waste-management encompasses management of all processes and resources for proper handling of waste materials, from the maintenance of waste transport trucks and dumping facilities to compliance with health codes and environmental regulations.”

You will find there are eight major groups of waste management methods, each of them divided into numerous categories. Those groups include source reduction and reuse, animal feeding, recycling, composting, fermentation, landfills, incineration and land application. You can start using many techniques right at home, like reduction and reuse, which works to reduce the amount of disposable material used.

Reference
- Meaning – //en.wikipedia.org/wiki/Waste_management and //www.conserve-energy-future.com/waste-management-and-waste-disposal-methods.php
- Definition – //www.businessdictionary.com/definition/waste-management.html
- Photo Credit URL – //news.nationalgeographic.com/content/dam/news/2017/12/13/e-waste-tons/01-e-waste-millions-tons.jpg
March 12, 2018
What is Organizational Structure for Corporate Entrepreneurship?
An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Also learn, Why is Intrapreneurship Better than Entrepreneurship? This article explains to Organizational Structure for Corporate Entrepreneurship. Organizations need to be efficient, flexible, innovative and caring to achieve sustainable competitive advantage. Organizational structure can also consider as the viewing glass or perspective through which individuals see their organization and its environment.

Learn, Entrepreneurial, What is Organizational Structure for Corporate Entrepreneurship?

Corporate entrepreneurship (also called intrapreneurship) is defined by Guth and Ginsburg as;

“The birth of new business within existing organizations, that is, internal innovation or venturing; and the transformation of organizations through the renewal of the key ideas on which they are built, that is, strategic renewal.”

The organizational structure affects organizational action in two ways:
1. It provides the foundation on which standard operating procedures and routines rest.
2. It determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.
Organizational Structures for Corporate Entrepreneurship:

Burgelman proposes that the use of a particular organizational structure should determine by:
1. The strategic importance of the new business to the corporation. and.
2. The relatedness of the unit’s operations to those of the corporation.
The combination of these two factors results in nine organizational structures for corporate entrepreneurship.

1] Direct Integration:

A new business with a great deal of strategic importance and operational relatedness must be a part of the corporation’s mainstream. Product champion-people who are respected by others in the corporation and who know how to work the system need to manage these projects.

2] New Product Business Department:

A new business with a great deal of strategic importance and partial operational relatedness should be a separate department. Organize around an entrepreneurial project in the division where skills and capabilities can share.

3] Special Business Units:

A new business with a great deal of strategic importance and low operational relatedness should be a special new business unit with specific objectives and time horizons.

4] Micro New Ventures Department:

A new business with uncertain strategic importance and high operational relatedness should be a peripheral project. Which is likely to emerge in the operating divisions continuously. Each division thus has its new ventures department.

5] New Venture Division:

A new business with the uncertain strategic importance that is only partly related to present corporate operations belongs in a new venture division. It brings together projects that either exists in various parts of the corporation or can acquire externally, sizable new businesses are built.

6] Independent Business Units:

Uncertain strategic importance coupled with no relationship to present corporate activities can make external arrangements attractive. Also read, The Corporate Entrepreneurship Categories and Organizational Thinking.

7] Nurturing and Contracting:

When an entrepreneurial proposal might not be important strategically to the corporation but is strongly related to present operations. Top management might help the entrepreneurial unit to spin-off from the corporation. This allows a friendly competitor, instead of one of the corporation’s major rivals, to capture a small niche.

8] Contracting:

As the required capabilities and sills of the new business are less related to those of the corporation. The parent corporation may spin off the strategically unimportant unit yet keep some relationship through a contractual arrangement with the new firm. The connection s useful in case the new firm eventually develops something of value to the corporation.

9] Complete Spin-Off:

If both the strategic importance and the operational relatedness of the new business are negligible. The corporations are likely to completely sell off the business to another firm or the present employees in some form of ESOP (Employee Stock Ownership Plan). The corporation also could sell off the unit through a leveraged buy-out executives of the unit buy. Also, the unit from the parent company with money from a third source, to be repaid out of the unit’s anticipated earnings.

Entrepreneurial Organizational Structure:

The organizational structure of an entrepreneurial company often has two central requirements based on the nature and size of the business. Because they are innovators, these businesses must develop organizational structures. That promotes frequent interaction and communication among their marketing, sales and production departments. Because they are often smaller businesses that aren’t able to fully departmentalize because they have large sales of one product. They must maximize their management resources through multitasking.

1] Theory Originator:

The theory of an entrepreneurial organizational structure was developing by McGill University professor and management expert Henry Mintzberg. He proposed theories about five different types of organizational structures, including one well suited for operating an entrepreneurial organization. Others have since expanded on his theories, first proposed in the 1970s, as markets and technologies have evolved.

2] Flat vs Hierarchical Structure:

Smaller businesses with few employees that continue to evolve. Their product development and marketing often use a flat organizational structure rather than a hierarchical one. A traditional hierarchical organizational structure organizes a company based on departments. With each department having a leader and subordinates reporting to the department head.

These departments work independently, reporting to a president, chief executive officer or executive management team. A flat organizational structure consists of individuals or small groups that work collaboratively, all reporting to the owner or CEO. A flat structure can require managers to take on or participate in more than one task to maximize scarce human resources.

3] Planning Structure:

An entrepreneurial structure should facilitate cooperative planning rather than top-down strategic and marketing planning. Which features execution of plans assigned to different departments. Marketing activities include product development, pricing strategies, brand creation, and distribution channel selection that occur before any promotions take place.

For example, at a larger business with a hierarchical organizational structure. Also, the marketing department might develop the product and then tell the production department to determine how to make it. In an entrepreneurial organization, all team members are involving in product planning.

So, they can share their concerns or make suggestions about whether they can make the product. At large companies, marketing will know the capabilities of its production department. While at an entrepreneurial company, marketing will pitch an idea, asking production. Information technology, sales, and finance if they can bring the idea to market.

4] Communication Structure:

An entrepreneurial organization holds regular team meetings to discuss ideas before a decision is creating. While a more traditional organizational structure uses meetings of department heads to announce their progress and tell subordinates what has been deciding. An entrepreneurial company might create an intranet or a communication system based on the Cloud to exchange project status in real-time.

A Cloud-based system puts information on a secure Internet site that people can access with a password from anywhere. An intranet resides on a company’s servers. Using such a system, each team member will have his responsibilities but will update his progress on a master document that all other team members can access from their computers at any time of the day.

What is Organizational Structure for Corporate Entrepreneurship? Google Image Searching.

Reference:

1. Structures – //www.mbaknol.com/strategic-management/corporate-entrepreneurship/
2. Entrepreneurial – //yourbusiness.azcentral.com/entrepreneurial-organizational-structure-16071.html
3. Photo Credit URL – //conditionaldesign.org/workshops/3d-straw-structure/resources/09-img-5455-edit.jpg
March 6, 2018
What is Corporate Entrepreneurship? Meaning and Definition
Corporate Entrepreneurship Definition and Meaning – Major current researches are based on the studies of Joseph A. Schumpeter (1883 – 1950); An Austrian-American economist and political scientist. He was the first economist who determined entrepreneurs as the main agents of economic growth which create new products, find and develop new methods of production, and allocate other innovations to stimulate economic evolution. Also learn, What is Intrapreneurship? This article explains Corporate Entrepreneurship Meaning and Definition. According to the “creative destruction” the entrepreneurs continually displace, substitute, or destroy existing products or methods of production with new ones. The positive outcomes of these processes are the opportunity to create new technologies and new products to satisfy the changes in customer’s needs and the improvement of overall economic activities.

Learn, Understanding, and explain Corporate Entrepreneurship (CE) meaning and definition.

What is Corporate Entrepreneurship (CE)? It is a set of activities to enhance a company’s ability to innovate, take a risk, and seize the opportunities that are allocated in the market. Also, Corporate entrepreneurship is targeting the new business establishment, new market allocation with further business pursuing, or both.

Robert A. Burgelman (1983) refers to CE to the company’s activity in diversification through internal development. The process of such diversification involves new resources to help the firm to extend its activity in the new spheres of opportunities.

Such diversification through internal resources development represents the process of individual entrepreneurship in the corporate one. Thus, corporate entrepreneurship is a result of combining the entrepreneurial activities of multiple participants.

Meaning of Corporate Entrepreneurship:

Corporate entrepreneurship (also know as intrapreneurship) is defined by Guth and Ginsburg as;

“The birth of new business within existing organizations, that is, internal innovation or venturing; and the transformation of organizations through the renewal of the key ideas on which they are built, that is, strategic renewal.”

A large corporation that wants to encourage innovation and creativity within its firm must choose a structure. That will give the new business unit an appropriate amount of freedom while maintaining some degree of control at headquarters. Also learn, What is the Difference Between an Intrapreneur and Entrepreneur?

Burgelman proposes that the use of particular organizational design should determine by;
- The strategic importance of the new business to the corporation, and.
- The relatedness of the unit’s operations to those of the corporation.
A combination of these two factors results in nine organizational designs for corporate entrepreneurship.

Definition of Corporate Entrepreneurship:

Though its definition is somewhat contentious, the concept of corporate entrepreneurship is generally believing to refer to the development of new ideas and opportunities within large or establish businesses. Directly leading to the improvement of organizational profitability and an enhancement of competitive position or the strategic renewal of an existing business.

Within that system, the notion of innovation is at the very core of CE – the two inseparably bound together and responsible for driving calculated and beneficial risk-taking. Taking it one step further, corporate entrepreneurship may even significantly alter the balance of competition within an industry or create entirely new industries through this act of internal innovation. As well as learn, Why is “The Language of Business” also called Accounting?

Why the Need for Corporate Entrepreneurship?

Corporate entrepreneurship or Intrapreneurship is an important element in large and medium organizations. Also, Intrapreneurship exists within the organizations. It plays an important role in organizational and economic development. Intrapreneurship leads not only to new ventures, but it also leads to other innovative activities and orientations. Such as the development of new products, technologies, services, strategies, and competitive postures.

In good or bad economic times, companies seek innovations to remain competitive. Intrapreneurs are more intelligent and can perceive the big picture. They are self-motivating and optimistic. These people are action-orient and move quickly to get things done.

A corporate entrepreneur is a person who focuses on innovation and creativity to transform dreams into a profitable reality. A charismatic leader in a company instills an entrepreneurial philosophy in the employees in an organization. These entrepreneurs must have leadership characteristics. They must be visionary and flexible. Entrepreneur encourages teamwork and builds a coalition of support. For the team, performance entrepreneur understands the organization environment they persist continuously trying to give their best.

Now a day’s market is highly competitive, to survive organizations trying to be more innovative. Companies want innovative people to work for them. Intrapreneurial techniques have been using throughout the world, some with failure and some with great success. As well as reading, How to Explain the Most Important Characteristics of Organizational Culture? and. Also learn, What are Factors affecting Organizational Change? External and Internal!

Why should established organizations consider corporate entrepreneurship?

Corporate entrepreneurship is especially crucial for large companies. Enabling these organizations – that are traditionally averse to risk-taking – to innovate, driving leaders and teams toward an increased level of corporate enterprising. In addition to the obvious benefits obtained through innovation. This approach also provides the organizational benefit of setting the stage for leadership continuity.

In a simpler view, corporate entrepreneurship can also consider a means of organizational renewal. For in addition to its focus on innovation. There also exists an equal drive toward venturing. These two work in unison as the company undertakes innovations across the entire organizational spectrum, from product and process to technology and administration.

Also, venturing is a primary component in the process, pushing larger companies to enhance their overall competitiveness in the marketplace by taking bigger risks. Examples of these risks, as seen in a large-scale organization, may include the redefinition of the business concept, reorganization, and the introduction of system-wide changes for innovation.

Setting up the corporate entrepreneurship environment:

In modern business, one of the primary tasks of the business leader is to foster an environment in which entrepreneurial thinking is encouraged and readily takes place. Promoting this culture by freely encouraging creativity (and thereby innovation). Also, business leaders motivated toward corporate entrepreneurship must continuously strive to exude and build trust. Embracing the risk to fail and inspiring those around them to take similar calculated risks.

But there is more to an environment of corporate entrepreneurship than simply inciting inspiration. It also relies heavily on a system of continuous analysis and feedback, potentially including the following two steps:

Step 1:

Set a broad direction for achievement, reevaluating it periodically for any new information. That may have surfaced regarding changes in the business environment. Including competitive products and markets in which the firm is operating. Constant evaluation is essential at this stage as even the most finely-tuned direction can still lead to catastrophic failure if the approach is no longer working.

Step 2:

Reinforce efforts across the entire organization that coincide with the current plan for achievement. The task of a leader or senior manager is often that of the analyst. Continuously promoting strategy while making adjustments based on their beliefs related to organizational goals and the feedback they receive from business units.

As these business units continue to experiment with existing products and services. As well as, innovate and develop new ones, senior executives can magnify the stated goals to reinforce those business unit initiatives and thereby achieve the highest degree of success.

What is Corporate Entrepreneurship? Meaning and Definition. Also, the Image is online take.

Reference:

1. Meaning – //www.mbaknol.com/strategic-management/corporate-entrepreneurship/
2. Definition, Establish and Step – //www.businessdictionary.com/article/726/corporate-entrepreneurship-and-its-importance-in-large-companies/
3. Need – //www.mbaknol.com/modern-management-concepts/the-need-for-corporate-entrepreneurship/
4. Photo Credit URL – //bienveillus.fr/wp-content/uploads/2017/02/Bienveillance-au-Travail.jpg
March 5, 2018
What is Bookkeeping? Meaning and Definition!

Bookkeeping; The activity or occupation of keeping records of the financial affairs of a business. Book Keeper is the recording of financial transactions and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by a person or an organization or corporation. There are several standard methods of book-keeping. Such as the single-entry bookkeeping system and the double-entry bookkeeping system but, while they may be thought of as “real” book-keeping, any process that involves the recording of financial transactions is a bookkeeping process. Also learn, “The Language of Business” called Accounting, but Why?

Learn, What is Bookkeeping? Meaning and Definition!

It is usually performing by a bookkeeper. A bookkeeper (or book-keeper) is a person who records the day-to-day financial transactions of a business. They are usually responsible for writing the daybooks. Which contain records of purchases, sales, receipts, and payments.

The bookkeeper is responsible for ensuring that all transactions whether it is a cash transaction or credit transaction are records in the correct daybook, supplier’s ledger, customer ledger, and general ledger; an accountant can then create reports from the information concerning the recording of the financial transactions by the bookkeeper.

It refers mainly to the record-keeping aspects of accounting. They involve preparing source documents for all transactions, operations, and other events of the business. The bookkeeper brings the books to the trial balance stage: an accountant may prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.

History of Bookkeeping.

The origin of book-keeping is lost in obscurity, but recent researches would appear to show that some method of keeping accounts has existed from the remotest times. Babylonian records have been finding dating back as far as 2600 B.C., written with a stylus on small slabs of clay.

The term “waste book” was used in colonial America referring to book-keeping. The purpose was to document daily transactions including receipts and expenditures. This was recorded in chronological order, and the purpose was for temporary use only.

The daily transactions would then record in a daybook or account ledger in order to balance the accounts. The name “waste book” comes from the fact that once the waste book’s data were transfers to the actual journal, the waste book could discard

Meaning of Bookkeeping.

Since the principles of accounting rely on accurate and thorough records, book-keeping is the foundation of accounting. Bookkeepers often have to exercise analytical skills and judgment calls. When recording business events since the source for most accounting information in the system.

Book-keeping involves the recording, daily, of a company’s financial transactions. With proper bookkeeping, companies can track all information on their books to make key operating, investing, and financing decisions. Bookkeepers are individuals who manage all financial data for companies. Without bookkeepers, companies would not be aware of their current financial position, as well as the transactions that occur within the company.

Accurate bookkeeping is also crucial to external users. Which include investors, financial institutions, or the government that needs access to reliable information to make a better investment or lending decisions. Simply put, the entire economy relies on accurate and reliable book-keeping for both internal and external users.

Definition of Bookkeeping.

Bookkeeping, often called record-keeping, is the part of accounting that records transactions and business events in the form of journal entries in the accounting system. In other words, book-keeping is how data is entering into an accounting system. This can either be done manually on a physical ledger pad or electronically in an accounting program like Quickbooks.

“Systematic recording of financial aspects of business transactions in appropriate books of account”.

Understand Bookkeeping for Example.

A good example of a business event that requires analytical skills is the trade-in of a vehicle. The bookkeeper must review the transaction and determine how much the old vehicle trade-in value was and the price paid for the new vehicle. He or she must also find out whether any loans require for the new purchase and how much cash was paid for the transfer. Also read, Types of Accounting in a Business.

As you can see, bookkeepers generally must have a good understanding of accounting principles and GAAP in general. Once the business event has been evaluating, the bookkeeper makes a journal entry in the general ledger to remove the old vehicle and associate accumulate depreciation and record. The purchase of the new vehicle with any applicable gains or losses on the transition.

The entire process of analyzing an event and recording the transaction in the accounting system is a good example of bookkeeping. Many times accounting and book-keeping are using interchangeably, but this is incorrect. Accounting has a much more broad definition than simply recording transactions in an accounting system.

Accounting is using to identify events that need to record, recording the transactions of these events, and communicating. The effects of these transactions with people inside and outside of the company. As you can see, it is only a small part of the broader definition of accounting.

Importance of Bookkeeping.

Proper book-keeping gives companies a reliable measure of their performance. It also provides information on general strategic decisions and a benchmark for its revenue and income goals. In short, once a business is up and running, spending extra time and money on maintaining proper records is critical.

Many small companies don’t actually hire full-time accountants to work for them because the costs are usually higher. Instead, small companies generally hire a bookkeeper or outsource the job to a professional firm. One important thing to note here is that many people who intend to start a new business sometimes overlook it. The importance of trivial matters such as keeping records of every penny spent.

What is Bookkeeping? Meaning and Definition!

Reference

1. What is it? History – //en.wikipedia.org/wiki/Bookkeeping
2. Meaning, Importance – //www.myaccountingcourse.com/accounting-dictionary/bookkeeping
3. Definition, Example – //corporatefinanceinstitute.com/resources/knowledge/accounting/bookkeeping/
4. Photo Credit URL – //www.apatax.ca/wp-content/uploads/2017/11/accounting-and-bookkeeping-firm-surrey.jpg

March 4, 2018
Why is Intrapreneurship Better than Entrepreneurship?

Intrapreneur generally has the burning vision which helps them to improve the organization as an Intrapreneur you have the company name and a marketing channel at your back which can increase the chances of success of your enterprise. Intrapreneur does not need to risk his funds but as an entrepreneur have to risk your finances. Also learn, Intrapreneurs Inside an Entrepreneurs, This article explains to Why is Intrapreneurship Better than Entrepreneurship? Especially if capital for your idea is easier to come from inside the organization, Intrapreneurs better than entrepreneurs. The success of the enterprise needs continuous assesses of the companies technologies to stay competitive. If the Intrapreneur wants to bypass the existing company distribution channel still the company name matters. For the right person, an intrapreneur is invigorating and addicting. The company provides him security with the freedom and creativity of the entrepreneur.

Learn, Why is Intrapreneurship Better than Entrepreneurship? Deeply Explanation.

Are you in a place in your career where you are willing to take a gamble? Are you prepares to bet it all on yourself and roll the dice on your future? Or has that time come and gone and now you’re just looking for stability for you and your family? Or maybe you’re stuck in the middle.

Maybe you’re weighing the pros and cons of both paths and you’re desperately trying to decide between entrepreneur versus intrapreneur. The former revels in the idea of being their boss and making all the big decisions. While the latter is motivated by leading initiatives within the confines of corporate America.

This article helps you compare the two career paths and decide which one is right for you.

An entrepreneur is someone who, through his or her skills and passion. Creates business and is willing to take full accountability for its success or failure. An intrapreneur, on the other hand, is someone who utilizes his or her skill, passion and innovation to manage or create something useful for someone else’s business… with entrepreneurial zest.

Though both are visionary, it is the entrepreneur who spots an opportunity in the marketplace and has the courage and zeal to turn this opportunity into a business. In contrast, however, the Intrapreneur uses his or her passion. Drive and skills to manage the business or create something new and useful for the business.

The main disparity between an entrepreneur and an intrapreneur is that an entrepreneur has the freedom to act on his or her whim; whereas, an intrapreneur may need to ask for management’s approval to make certain changes in the company’s processes. The Product design or just about any innovation he or she needs to implement. Since an intrapreneur acts on innovative impulses, this may result in conflict within the organization. It is important for organizations who are implementing intrapreneurship, to create an atmosphere of mutual respect among employees.

The works environment:

One of the biggest differences between being an entrepreneur and intrapreneur is going to be your place of business and its culture.

In 2012, 52 percent of entrepreneurs decide to make their venture a home-based business—something many agree is a very attractive aspect of entrepreneurship. Meanwhile, just 10 percent of internal employees spent at least one day a week working from home—something you probably wish you could do more often.

But the work environment is about more than just location—it’s also about company culture. As an entrepreneur, you’ll shape the culture that surrounds your business. Meanwhile, intrapreneurs often join a preexisting culture that requires acclimation. It’s important to remember that an organization’s culture is something that can make you love or hate your job.

It doesn’t matter if it’s your home, a small shop or even a large corporate office. Entrepreneurs and intrapreneurs need to be comfortable with their work environment and company culture. Start thinking about which environment and culture bests fits your interests as you consider your entrepreneurial or intrapreneurial career path.

Responsibilities:

Becoming an entrepreneur puts the responsibility clearly on your shoulders. From accounting and marketing to customer service and social media. You are solely responsible for getting things done—a reality that is sometimes difficult to manage with only so many hours in a day. As an intrapreneur, however, you’re often tasking to work in one specializing area. That might mean working in accounting, marketing, customer service or social media, but rarely will an intrapreneur assign to all four departments.

Start thinking about if you would prefer to take ownership by juggling many different balls at the same time or simply focusing on a single set of responsibilities.

Risks & rewards:

The fact is that both entrepreneurs and intrapreneurs face risks. But, not all risks are equal. Entrepreneurs need to embrace the financial risk of forming their businesses, but the potential for financial gain may offset that risk. On the other hand, intrapreneurs enjoy the perks of a steady paycheck and health benefits but their employment is generally considering “at-will”. Which means the organization can terminate their employment at any time.

The difference between entrepreneurs and intrapreneurs, as it relates to risks versus rewards, is always going to be a personal decision. And they are most certainly not always financially driven. Be honest with yourself about how much risk you are comfortable with and which rewards you value the most.

Motivation:

Deep down, both entrepreneurs and intrapreneurs are motivating to make an impact on their businesses or organizations. But motivation comes in many forms for many people.

If you see yourself as someone who is motivated by things such as money. The personal achievement or fulfilling a lifelong dream, you might be fit to be an entrepreneur. But if your primary motivation is financial stability, love of what you are doing and putting others ahead of you, perhaps becoming an intrapreneur is a better fit.

Finding your path:

Deciding to become an entrepreneur can be very rewarding as it offers a variety of perks related to scheduling flexibility and control in making decisions. Meanwhile, intrapreneurs who work hard for a company often enjoy additional resources, financial stability, and greater responsibilities.

At the end of the day, deciding on entrepreneurship versus intrapreneurship as a career path can be a tough decision. It’s important to be thinking about which path best matches your dreams, interests, and aspirations.

So now Which one Better for You, Is Intrapreneurship Better than Entrepreneurship? Either way, the choice is yours.

Why is Intrapreneurship Better than Entrepreneurship? Also, the image by Online.

Reference:

1. Compare – //www.ourknowledge.asia/blog-posts–articles/entrepreneur-or-intrapreneur-whats-the-difference
2. Difference – //www.rasmussen.edu/degrees/business/blog/entrepreneurship-vs-intrapreneurship-career-path/
3. Photo Credit URL – //estatico2.diariolibre.com/binrepository/2000×1333/0c0/0d0/none/10904/JNET/image_content_9378637_20180111174929.jpg

March 3, 2018
What is Intrapreneur? Meaning and Definition!

Intrapreneur: An employee of a large corporation who is given the freedom and financial support to create new products, services, systems, etc., and does not have to follow. The corporation’s usual routines or protocols. A manager within a company that promotes innovative product development and marketing. Also learn, What is Intrapreneurship?

Learn, What is Intrapreneur? You may better understand their Meaning and Definition.

An intrapreneur is an employee who is given the authority and support to create a new product without having to concern about whether or not. The product will actually become a source of revenue for the company. Unlike an entrepreneur, who faces personal risk when a product fails to produce revenue. An intrapreneur will continue to receive a salary even if the product fails to make it into production.

Meaning of Intrapreneur:

An intrapreneur is an inside entrepreneur or entrepreneurship within a large firm. Who utilizes innovative abilities without causing the dangers related to those exercises. Also, Intrapreneurs are typical representatives inside an organization who are allocating to take a shot at an extraordinary thought or undertaking, and they are training to build up the venture as a business visionary would. Additionally, they for the most part have the assets and capacities of the firm available to them.

Intrapreneurs and Innovation:

Similarly, as a business person begins an organization as a method for giving a decent or administration, intrapreneurs look for strategies, advances, and applications that will help increment an organization’s profitability. As an intrapreneur constructs the fitness for perceiving and tackling significant issues. He likewise fabricates the aptitudes needed to go into business.

Intrapreneurs and Experimentation:

Like how business visionaries to analyze, an intrapreneur has the opportunity and self-sufficiency for proficient development. An intrapreneur has the freedom to examine and comprehend patterns fundamental for arranging the organization’s future. The Intrapreneurs combine their discoveries and decide techniques for remaining in front of their rivals.

An Intrapreneurs and Company Leaders:

Intrapreneurs become an organization’s chief chiefs over the long haul. They push the business ahead and ascend to the top as they comprehend the business from all levels. An organization ought to perceive and advance effective intrapreneurs so the business can succeed and develop. When intrapreneurs work at tackling issues, they cultivate the development of other capable intrapreneurs and incorporate cycles for everyone’s benefit of the whole organization.

Example of an Intrapreneur:

In less than one year of working as eBay’s head of staff of worldwide item the executives, Healey Cipher understood the organization was passing up an enormous business opportunity. Even though most shopper buys made inside 15 miles of a purchaser’s home in actual stores, eBay was offering just internet business administrations for its customers. Since Cipher met numerous retailers, he realized they would need items for actual retail too.

After consulting with eBay’s chief executive officer (CEO), Cipher amassed a group of designers to discover approaches to utilize innovation to improve actual stores. The architects made an intuitive customer-facing facade that Toys R Us in the end introduced. Over the accompanying two years, the specialists did likewise for TOMS, Sony, and Rebecca Minkoff. The code’s prosperity turned into another division of eBay, giving laborers self-sufficiency for tackling issues and pushing the organization ahead.

Definition of Intrapreneur:

An intrapreneur is only a business person inside the limits of the association. Likewise, an intrapreneur is a worker of a huge association, who has the authority of startling inventiveness and advancement in the organization’s items, administrations, and activities, overhauling the cycles, work processes, and frameworks to change them into a fruitful endeavor of the venture.

The intrapreneurs put stock in change and don’t fear disappointment, they find novel thoughts, search for such open doors that can profit. The entire association faces challenges, elevates advancement to improve the exhibition and benefit, assets gives by the association. The employment of an intrapreneur is incredibly testing; consequently, they are acknowledging and compensated by the association in like manner.

Over the most recent couple of years, it has become a pattern that enormous companies name intrapreneurs inside the association, to bring operational greatness and addition upper hand.

An enormous association can challenge to recognize and empower workers. Whose business aptitudes and innovative capacities make them a great contender to take on pioneering parts inside the organization, yet still be substance to hold workers. A few organizations have committed innovative work (R&D) offices. Whose intrapreneurial staff undertakings with investigating thoughts that will enable the organization to remain serious? Different organizations grasp the possibility of nonstop improvement.

An idea acquired from assembling that energizes representatives in research, plan, deals, and creation to function as a group to distinguish new income openings. Numerous effective IT new companies encourage a culture of intrapreneurship casually by permitting workers to seek after. Their own specialized advantages during work hours or by supporting occasions, for example, hackathons or other social coding parties.

What is Intrapreneur? Meaning and Definition; Image from.

March 2, 2018
What is Intrapreneurship? Meaning and Definition!

What is Intrapreneurship? Intrapreneurship is the practice of entrepreneurship by employees within an organization. In 1992, The American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean; “A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation”. Also learn, What is entrepreneurship?

Learn, What is Intrapreneurship? You may understand their Meaning and Definition.

They are entrepreneurs, business people who seize a groundbreaking thought for an item, administration, or cycle and work to carry this plan to fulfillment inside the system of the association. Business visionaries with their developments and committed exertion are seeing as a significant resource by the association, moving others. He fills in like a boss to others in the association. As of late, a few business visionaries are finding employment elsewhere to begin their own endeavors. It is discovered that many are extremely fruitful in their new pursuits and they are making a danger the organizations they left a couple of years back.

Meaning of Intrapreneurship:

Which means of Intrapreneurship: Intrapreneurship is acting as a business visionary inside a bigger association. Business visionaries are generally exceptionally self-inspiring, proactive, and activity situated individuals. Who are all right with stepping up to the plate, even inside the limits of an association, in the quest for a creative item or administration. The ambitious innovator has the solace of realizing that disappointment doesn’t have an individual expense as it accomplishes for a business visionary since the association retains misfortunes emerging from the disappointment.

Intrapreneurship is the demonstration of acting like a business person while working inside a huge association. Intrapreneurship knows as the act of a corporate administration style that coordinates hazard adopting and development strategies. Just as the prize and persuasive methods; that all the more generally consider similar to the area of the business venture.

Definition of Intrapreneurship:

The act of business in a setup firm. Intrapreneurship applies the ‘startup’ style of the executives (described by adaptability, development, and danger taking) to a protected and stable firm. The goal is too quick to track item advancement (by bypassing the organization) to make the most of another chance or to evaluate the possibility of another cycle or plan.

Intrapreneurship includes making or finding groundbreaking thoughts or occasions to make esteem. Where this action includes making another and self-financing association inside or under the protection of a current organization. A business visionary is an individual who rehearses intrapreneurship.

As indicated by this definition, a corporate supervisor who begins another activity for their organization which involves setting up another unmistakable specialty unit and governing body can view as an ambitious innovator.

Interestingly, a corporate supervisor who begins another activity utilizing prior corporate structures isn’t an ambitious innovator. Nor is ahead of an R&D unit inside an association, whose developments are overseen by the association.

Were this R&D pioneer to make another independent association, which plays out its own capacities and sells its own items – yet with solid proceeded with connections to the parent firm, association – it would consider intrapreneurship. Also learn, What is the Difference between Leadership and Entrepreneurship?

What is Intrapreneurship? Meaning and Definition; Image from.

March 2, 2018
Organizational Values: Definition, Sources, Advantages, and Disadvantages!

Organizational Values: An organization is an artifact, social entity, has structured activities, nominal boundaries and it is goal-directed. The Concept of Organizational Values: Definition of Organizational Values, Sources of Organizational Values, Advantages of Organizational Values, and Disadvantages of Organizational Values! Influence of Organizational Values on Organizational Practices and Processes. Values can explain in a few perspectives according to various sources.

Learn, Explain Organizational Values: Definition, Sources, Advantages, and Disadvantages!

In ethics, the value represents the importance of physical and abstract objects which is ideally accepted by individual or group. It can also define as qualities that are considering worthwhile that represent an individual’s highest priorities and deeply held driving forces. Values are often admixture with knowledge, norms, and beliefs. Also learned, What are the Participation and Organizational Climate? Organizational Values: Definition, Sources, Advantages, and Disadvantages!

Beliefs can prove right or wrong by one but not values. Beliefs may vary by cohort, time, geographical differences but values are universal, true for anybody at any time, whenever an individual is. Organizational values are ethical codes that guide behavior by putting assumptions into practice. It also serves as qualities that an organization appreciates and would require members of the organization to chase after.

Organizational values are the ideology of an organization and practiced by the organization from the employee treatment, technology development, customer or any other external environment interaction. It is part of the important element that forms an organization’s culture and it emanates deep from an organization’s soul.

Source and Origin of Organizational Values:

Organizational values are closely associated with human values. It can perceive as an extension of human values, which can categorize into two: instrumental and terminal value. Positive, honest, integrity, responsible, helping the needful are some examples of values. Terminal value relate to goals or desired stage, whereas instrumental values relate to what needs to apply to achieve a terminal value. Example: one’s terminal value being to provide a good life to family members, and instrumental value being to be hardworking and responsible in everything aspects.

Organization values that contradict with human values will leave the members of the organization uncertain and confused about their roles. Problems that plague the society will mirror in the organization. Values do not come from conscious intentions but rather, from the highest expression out of the free will. Some organizational values are not consciously created but are part of the fabric of the organization, as a result of founders’ views.

Values might discover and practice by founders during the early days. Values remain unchanged but evolved over the years unnoticeably until the organization decided to encapsulate it in words and lay as a fundamental part of the way the organization thinks.

Extra knowledge:

Some organizational values are creating consciously by the management team who decide to improve company’s performance systematically. Frameworks, methods might introduce to capture the organizational values to reveal findings. Values could derive from the organization’s goals. It is a set of principles that guide an organization to success and through difficult situations. It is not to compromise for short-term expediency or financial gain.

Organizational values are so special that it superseded corporate strategy, technological advantages or market presence to be the power that resides in shaping a successful organization. Organizational values define the acceptable standards which govern the behavior of individuals within the organization. Without such values, individuals will pursue behaviors that are in sync with their value systems, which may lead to behaviors that the organization doesn’t wish to encourage.

Advantages of Organizational Values:

Organizational values promote the healthy growth of an organization. According to Maslow’s hierarchy of needs, humans have a fundamental need to associate with something that they can feel proud. With the tight association, all members have with an organization, the individual’s membership defines and subsequently creates a committed workforce.

Organizational values also let members of the organizations stay motivated. The external motivation by managers is less effective than in a routine-based society and work process. Therefore organizational values should take into consideration to promote intrinsic motivation of the organization’s members.

The nature, role, and function of values are considering a central part of the organizational value foundation of a corporate brand. Organizations with good organizational values perceived as socially responsible corporate and generally well accepted by the public. Brand value increase and therefore drive good returns from the public, in terms of sales, as well as brand image. Organization identity is strong and helps differentiate the organization from competitors.

Organizational values are vital for continuity, consistency, and credibility in a value-creating process. As values ensure everyone in the organization is working towards the same goals by the same principles and adhering to the same standards. Organizational values foster the organization’s morale and protect an organization’s reputation. Values are cognitive, affective and provide directions. It drives organization groups towards the common target.

Disadvantages of Organizational Values:

Values are important to study organizational behavior because the value is the foundation of how people behave. Personal values might contradict with organizational values although values are typically good. Example some organizations’ reward system is based on seniority. People that value performance higher than seniority will tend to need to deal with disappointment when they are bounding by the reward system based on seniority.

Both seniority and performance are good values but in this case, people disappoint due to different value hierarchy. When there is a contradiction, the individual could either place personal values as a top priority against the organizational value and vice versa. When individual prioritized personal values, organizations’ benefits are at risk of sacrifice. Individuals might feel depressed as well when organizational values took over personal values.

Individuals might suffer imbalanced life from practicing organizational values, such as ‘hardworking’ as organizational value and member of the organization might require to practice it and slack in terms of personal life, which is not a good sign from society harmony point of view.

Organizational value somehow define organizations’ goals to a certain extent. It might limit the organization’s pursuit of other achievable goals due to principles and standards generated by the defined organizational values.

Organizational value makes an organization harder to change their existing reputation if an organization decided to change the public’s perception that has long formed. It makes a reputable organization’s journey to a breakthrough existing image, a hard one.

Influence of Organizational Values on Organizational Practices and Processes:

Personal values shape individuals’ attitude and impact an individual’s behavior. Similarly, organizational value also influences how an organization ‘behaves’ because it will then determine the destiny of that organization.

Organization Practices and Processes are then set up, to follow. Serve as guidebooks to ensure the organization is pursuing the right path towards common goals on a day to day execution perspective. These practices and processes served as written controls and guidelines for members of an organization to perform. Their day to day job to achieve common organizational goals.

Business processes are set of living documents although. There should not be frequent changes to review from time to time. Some organizations spend a huge amount of investment to review and redesign processes. The design teams tend to be ambitious to design processes that ‘work on paper’. Issues arise during the execution phase. Situations become more complicated if staffs are not governed by organizational value’s. Policies and practices are as good as the human that man many subsystems and sub-processes.

An organization can have the best-designed processes but still cannot be a world-class organization if humans. As part of the key factor is not behaving how they should be. Other than processes, policies, and practices also include organizational enablers. An enabler is a technical facility or resource that makes it possible to perform a task, activity or processes. Organizational value also influences the organizational enablers directly which consequently impact the organization’s policies and practices.

More read it:

Typical business processes involved in an invoice and servicing customers include billing the customer. Provide after-sales service and responding to customer inquiries. If an organization induce “trust and personal responsibility to every client’s success”. As an organizational value and this is being practiced across the organization including the invoice department. It is almost certain that customers will receive superb customer services and that organization can expect regular return customers without much of marketing effort. But if the invoice department does not practice the organizational value. It is most likely to be the pain point for customers to deal with, and the staffs do not feel their responsibility towards the organization’s success.

If an organization is sales-Oriente and take customers as the highest priority. The internal policies making would also align to support the organization’s values. This direction does not only apply to external customers but will also determine inter-departmental interaction mode. One department becomes another department’s internal clients and staffs take cross-departmental interaction seriously instead of having a bureaucracy attitude.

By Research;

World-famous technology leader, Sony’s core values are to be a leader, not the follower. The organizational value has been driving the company to be notable as the ‘first’ to introduce cutting-edge electronic devices, recording, and storage technologies to market all time. Sony refuses to stay in the position of adopting standards of other manufacturers set.

Sony spends millions of dollars in the Research and Development Department every year to sustain as the leader in new product introduction. ‘Walkman’ is a Sony brand trademark originally uses for the portable cassette player. It was invented by Sony’s audio division engineer Nobutoshi Kihara in 1979 and other electronic companies then followed the idea, innovatively. Sony also was the first to launch other electronic products such as Compact Disc players, gaming console, Play Station to name a few.

Organizational Values: Definition, Sources, Advantages, and Disadvantages!

March 2, 2018
Explain are What is Economics? Meaning and Definition with Criticisms!

Learn, What is Economics? Meaning and Definition, with Few different Author and their Criticisms!

Economics is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behavior and interactions of economic agents and how economies work. Microeconomics analyzes basic elements of the economy, including individual agents and markets, their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyzes the entire economy (meaning aggregated production, consumption, savings, and investment) and issues affecting it, including unemployment of resources (labor, capital, and land), inflation, economic growth, and the public policies that address these issues (monetary, fiscal, and other policies). Also learn, What is Demand? Meaning and Definition! What is Economics? Meaning and Definition, with Criticisms!

Meaning of Economics!

Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices on allocating resources to satisfy their wants and needs and try to determine how these groups should organize and coordinate efforts to achieve maximum output.

Economic analysis often progresses through deductive processes, much like mathematical logic, where the implications of specific human activities are considered in a “means-ends” framework.

Economics can generally be broken down into macroeconomics, which concentrates on the behavior of the aggregate economy, and microeconomics, which focuses on individual consumers. Also read, What is Accounting? Meaning and Definition!

Simple Definition of Economics!

The theories, principles, and models that deal with how the market process works. It attempts to explain how wealth is created and distributed in communities, how people allocate resources that are scarce and have many alternative uses, and other such matters that arise in dealing with human wants and their satisfaction.

Few Definition of Economics!

The following points highlight the top four definitions of Economics. The definitions are:

1. General Definition of Economics:

The English word economics is derived from the ancient Greek word oikonomia—meaning the management of a family or a household.

It is thus clear that the subject economics was first studied in ancient Greece.

What was the study of household management to Greek philosophers like Aristotle (384-322 BC) was the “study of wealth” to the mercantilists in Europe between the sixteenth and eighteenth centuries?

Economics, as a study of wealth, received great support from the Father of economics, Adam Smith, in the late eighteenth century.

Since then, the subject has traveled a long and this Greek or Smithian definition serves our purpose no longer. Over the passage of time, the focus of attention has been changed. As a result, different definitions have evolved.

These definitions can conveniently be grouped into three:

(i) Smith’s Wealth definition;

(ii) Marshall’s Welfare definition; and

(iii) Robbins’ Scarcity definition.

2. Adam Smith’s Wealth Definition:

The formal definition of economics can be traced back to the days of Adam Smith (1723-90) — the great Scottish economist. Following the mercantilist tradition, Adam Smith and his followers regarded economics as a science of wealth which studies the process of production, consumption, and accumulation of wealth.

His emphasis on wealth as a subject-matter of economics is implicit in his great book— ‘An Inquiry into the Nature and Causes of the Wealth of Nations or, more popularly known as ‘Wealth of Nations’—published in 1776.

According to Smith: “The great object of the Political Economy of every country is to increase the riches and power of that country.” Like the mercantilists, he did not believe that the wealth of a nation lies in the accumulation of precious metals like gold and silver.

To him, wealth may be defined as those goods and services which command value-in-exchange. Economics is concerned with the generation of the wealth of nations. Economics is not to be concerned only with the production of wealth but also the distribution of wealth. The manner in which production and distribution of wealth will take place in a market economy is the Smithian ‘invisible hand’ mechanism or the ‘price system’. Anyway, economics is regarded by Smith as the ‘science of wealth.’

Other contemporary writers also define economics as that part of knowledge which relates to wealth. John Stuart Mill (1806-73) argued that economics is a science of production and distribution of wealth. Another classical economist Nassau William Senior (1790-1864) argued: “The subject-matter of the Political Economics is not Happiness but Wealth.” Thus, economics is the science of wealth. However, the last decade of the nineteenth century saw a scathing attack on the Smithian definition and in its place, another school of thought emerged under the leadership of an English economist, Alfred Marshall (1842-1924).

Criticisms – Following are the main criticisms of the classical definition:

i. This definition is too narrow as it does not consider the major problems faced by a society or an individual. Smith’s definition is based primarily on the assumption of an ‘economic man’ who is concerned with wealth-hunting. That is why critics condemned economics as ‘the bread-and-butter science’.

ii. Literary figures and social reformers branded economics as a ‘dismal science’, ‘the Gospel of Mammon’ since Smithian definition led us to emphasize on the material aspect of human life, i.e., generation of wealth. On the other hand, it ignored the non-material aspect of human life. Above all, as a science of wealth, it taught selfishness and love for money. John Ruskin (1819-1900) called economics a ‘bastard science.’ The Smithian definition is bereft of changing reality.

iii. The central focus of economics should be on scarcity and choice. Since scarcity is the fundamental economic problem of any society, the choice is unavoidable. Adam Smith ignored this simple but essential aspect of any economic system. Similar, What is Economics of Development? Meaning and Definition!

3. Marshall’s Welfare Definition:

Alfred Marshall in his book ‘Principles of Economics published in 1890 placed emphasis on human activities or human welfare rather than on wealth. Marshall defines economics as “a study of men as they live and move and think in the ordinary business of life.” He argued that economics, on one side, is a study of wealth and, on the other, is a study of man.

Emphasis on human welfare is evident in Marshall’s own words: “Political Economy or Economics is a study of mankind in the ordinary business of life; it examines that part of the individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being.”

Thus, “Economics is on the one side a study of wealth; and on the other and more important side, a part of the study of man.” According to Marshall, wealth is not an end in itself as was thought by classical authors; it is a means to an end—the end of human welfare.

This Marshallian definition has the following important features:

i. Economics is a social science since it studies the actions of human beings.

ii. Economics studies the ‘ordinary business of life’ since it takes into account the money-earning and money-spending activities of man.

iii. Economics studies only the ‘material’ part of human welfare which is measurable in terms of the measuring rod of money. It neglects other activities of human welfare not quantifiable in terms of money. In this connection A. C. Pigou’s (1877- 1959)—another great neo-classical economist—definition is worth remembering. Economics is “that part of social welfare that can be brought directly or indirectly into relation with the measuring rod of money.”

iv. Economics is not concerned with “the nature and causes of the Wealth of Nations.” The welfare of mankind, rather than the acquisition of wealth, is the object of primary importance.

Criticisms: Though Marshall’s definition of economics was hailed as a revolutionary one, it was criticised on several grounds. They are:

i. Marshall’s notion of ‘material welfare’ came in for sharp criticism at the hands of Lionel Robbins (later Lord) (1898- 1984) in 1932. Robbins argued that economics should encompass ‘non- material welfare’ also. In Real life, it is difficult to segregate material welfare from non-material welfare. If only the ‘materialist’ definition is accepted, the scope and subject-matter of economics would be narrower, or a great part of the economic life of man would remain outside the domain of economics.

ii. Robbins argued that Marshall could not establish a link between economic activities of human beings and human welfare. There are various economic activities that are detrimental to human welfare. The production of war materials, wine, etc., are economic activities but do not promote the welfare of any society. These economic activities are included in the subject-matter of economics.

iii. Marshall’s definition aimed at measuring human welfare in terms of money. But ‘welfare’ is not amenable to measurement since ‘welfare’ is an abstract, subjective concept. Truly speaking, money can never be a measure of welfare.

iv. Marshall’s ‘welfare definition’ gives economics a normative character. A normative science must pass on value judgments. It must pronounce whether a particular economic activity is good or bad. But economics, according to Robbins, must be free from making the value judgment. Ethics should make value judgments. Economics is a positive science and not a normative science.

v. Finally, Marshall’s definition ignores the fundamental problem of scarcity of any economy. It was Robbins who gave a scarcity definition of economics. Robbins defined economics in terms of allocation of scarce resources to satisfy unlimited human wants.

4. Robbins’ Scarcity Definition:

The most accepted definition of economics was given by Lord Robbins in 1932 in his book ‘An Essay on the Nature and Significance of Economic Science. According to Robbins, neither wealth nor human welfare should be considered as the subject-matter of economics. His definition runs in terms of scarcity: “Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses.”

From this definition, one can build up the following propositions:

(i) Human wants are unlimited; wants multiply—luxuries become necessities. There is no end of wants. If food were plentiful, if there were enough capital in the business, if there were abundant money and time—there would not have been any scope for studying economics. Had there been no wants there would not have been any human activity. Prehistoric people had wanted. Modern people also have wanted. Only wants change—and they are limitless.

(ii) The means or the resources to satisfy wants are scarce in relation to their demands. Had resources been plentiful, there would not have been any economic problems. Thus, scarcity of resources is the fundamental economic problem to any society. Even an affluent society experiences resource scarcity. The scarcity of resources gives rise to many ‘choice’ problems.

(iii) Since the prehistoric days, one notices constant effort of satisfying human wants through the scarcest resources which have alternative uses. The land is scarce in relation to demand. However, this land may be put to different alternative uses.

A particular plot of land can be either used for jute cultivation or steel production. If it is used for steel production, the country will have to sacrifice the production of jute. So, resources are to be allocated in such a manner that the immediate wants are fulfilled. Thus, the problem of scarcity of resources gives rise to the problem of choice.

Society will have to decide which wants are to be satisfied immediately and which wants are to be postponed for the time being. This is the choice problem of an economy. Scarcity and choice go hand in hand in each and every economy: “It exists in the one-man community of Robinson Crusoe, in the patriarchal tribe of Central Africa, in medieval and feudalist Europe, in modern capitalist America and in Communist Russia.”

In view of this, it is said that economics is fundamentally a study of scarcity and of the problems to which scarcity gives rise. Thus, the central focus of economics is on opportunity cost and optimization. This scarcity definition of economics has widened the scope of the subject. Putting aside the question of value judgment, Robbins made economics a positive science. By locating the basic problems of economics — the problems of scarcity and choice — Robbins brought economics nearer to science. No wonder, this definition has attracted a large number of people into Robbins’ camp.

The American Nobel Prize winner in Economics in 1970, Paul Samuelson, observes: “Economics is the study of how men and society choose, with or without the use of money, to employ scarce productive resources which could have alternative uses, to produce various commodities over time, and distribute them for consumption, now and in the near future, among various people and groups in society.”

Criticisms: This does not mean that Robbins’ scarcity definition is fault free. His definition may be criticised on the following grounds:

i. In his bid to raise economics to the status of a positive science, Robbins deliberately downplayed the importance of economics as a social science. Being a social science, economics must study social relations. His definition places too much emphasis on ‘individual’ choice. Scarcity problem, in the ultimate analysis, is the social problem—rather an individual problem. Social problems give rise to social choice. Robbins could not explain social problems as well as social choice.

ii. According to Robbins, the root of all economic problems is the scarcity of resources, without having any human touch. Setting aside the question of human welfare, Robbins committed a grave error.

iii. Robbins made economics neutral between ends. But economists cannot remain neutral between ends. They must prescribe policies and make value judgments as to what is good for the society and what is bad. So, economics should pronounce both positive and normative statements.

iv. Economics, at the hands of Robbins, turned to be a mere price theory or microeconomic theory. But other important aspects of economics like national income and employment, the banking system, taxation system, etc., had been ignored by Robbins.

That is why the Robbinsian definition is more popular: Economics is the science of making choices. Modern economics is a science of rational choice or decision-making under conditions of scarcity.

Reference

1. What is Economics – //en.wikipedia.org/wiki/Economics
2. Meaning of Economics – //www.investopedia.com/terms/e/economics.asp
3. Simple Definition of Economics – //www.businessdictionary.com/definition/economics.html
4. Definition by Economist – //www.economicsdiscussion.net/economics-2/definitions/top-4-definitions-of-economics-with-conclusion/14134
5. Photo Credit URL – //telecoms.report/wp-content/uploads/2018/01/cropped-iStock-616902766.jpg

March 1, 2018
What is a Management? Meaning and Definition!

Learn, Management, with their Meaning and Definition!

What is a Management? Meaning and Definition! Management (or managing) is the administration of an organization, whether it is a business, a not-for-profit organization, or government body. Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to accomplish. It’s objectives through the application of available resources, such as financial, natural, technological, and human resources. The term “management” may also refer to those people who manage an organization. Also learn, What is Revenue Management?

Meaning of Management!

Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing. An organization’s resources in order to achieve the objectives of that policy.

Definition of Management!

According to Harold Koontz, “Management is the art of getting things done through and with people in formally organized groups.”

According to Henri Fayol, “To manage is to forecast and to plan, to organize, to command, to coordinate and to control.”

Social scientists study management as an academic discipline, investigating areas such as social organization and organizational leadership. Some people study management at colleges or universities as like major degrees in management include the Bachelor of Commerce (B.Com.) and Master of Business Administration (M.B.A.). Also, the public sector for, the Master of Public Administration (MPA) degree. Individuals who aim to become management specialists or experts, management researchers, or professors may complete the Doctor of Management (DM), the Doctor of Business Administration (DBA), or the Ph.D. in Business Administration or Management.

February 27, 2018