Tag: Employee

Difference Between Employee and Industrial Relations
Learn about the difference employee industrial relations. Understand the significance of interpersonal dynamics and employer-worker relationships in organizations. Define Employment relations, distinguish between the terms “industrial relations” and “employee relations” and identify the different disciplinary inputs which comprise the study of employment relations. The term employee relations lays stress upon the processes of interpersonal relationships among individuals as well as the behavior of individuals as members of groups. The term industrial relations use widely in industrial organizations and refers to the relations between the employers and workers in an organization, at any specifies time. Also, learn and Understand Entrepreneurship Theories and Empirical Research.

Learn, What is the Difference Between Employee and Industrial Relations?

Thus, while the problem of employee relations are personal in character and are relate to the behavior of individuals where moral and social element predominate, the term industrial relation is comprehensive covering human relations and the relations between the employers and workers in an organization as well as matters regulated by law or by specific collective agreement arrived at between trade unions and the management. Roles of HR Management in Organizations on Difficult Times.

However, the concept of industrial relations has undergone a considerable change since the objective of evolving sound and healthy industrial relations today is not only to find out ways and means to solve conflicts or resolve difference but also to secure unreserved cooperation and goodwill to divert their interest and energies toward the constructive channel.

The problems of industrial relations are, therefore, essentially problems that may solve effectively only by developing in conflicting social groups of an industrial undertaking, a sense of confidence, dependence, and respect and at the same time encouraging them to come closer to each other for removing misunderstanding if any, in a peaceful atmosphere and fostering industrial pursuits for mutual benefits.

Employment relations in general:

Employment or human relations cover all types of interactions among employees such as cooperative efforts, interpersonal and group relationships. The purpose of employment relations is to deal with the people, the business employees, and the issues arising from their employment. Acquiring, developing, maintaining, and motivating staff in all aspects that are cover by the employment relations area. Employment relations are necessary as the employee is the most important part of a business and turn it either into a successful unit or drive it to catastrophe.

‘Industrial relations‘ is generally understood to refer to the relationship between employers and employees collectively. The term is no longer widely used by employers but summons up a set of employment relationships that no longer widely exist, except in specific sectors and, even there, in modified form. What is an e-HR (Electronic Human Resource)?

The term ‘employee relations‘ conceived as a replacement for the term ‘industrial relations‘ but its precise meaning in today’s workplaces needs clarification. Business managers have come to recognize that their employees are the most important part of a business and through effective management, a business can gain a competitive advantage.

The skills, knowledge, and creativeness of employees is the main potential that a business has over its competitors, and thus the realization that the employee has the most influence over important aspects such as its profitability, competitiveness, and adaptability has led to the idea that managing these human resources to develop their maximum capabilities.

Human resource management or employee relations is the process of finding the people the business needs, developing their skills, knowledge, talents, careers. Motivating and maintaining their commitment to the business.

History;

The turn from industrial relations to employee relations can spot on several different dimensions. From a peak of some 12 million-plus, union membership has fallen to around 7 million today. Between 1980 and 2000, the coverage of collective agreements contracted from over three-quarters to under a third of the employed workforce.

The Workplace Employment Relations Survey (WERS) 1998 showed that union officials spent most of their time not on negotiating pay and conditions but in supporting grievances on behalf of individual members. Even where collective bargaining continues, its impact on the exercise of management discretion was greatly diminishing.

Industrial relations:
- Became inevitably associated with trade unions, collective bargaining, and industrial action;
- Had too strong a tendency to view the world of work as synonymous with the heavy extractive and manufacturing sectors of employment, sectors which were dominated by male manual workers working full-time and which are in decline in nearly all developed economies.
Using the term employee relations enables the adoption of a broader concept that:
- Encompasses the now dominant service sector which, in many developed countries, now employs more than 70 percent of the workforce, and the changes in the composition of the labor force such as more women working and more part-time, temporary and fixed-term contracts;
- Include non-union as well as union scenarios and relationships.
The meaning of employee relations with employers:

Some broad conclusions emerging from research are:
- Employee relations can see primarily as a skill-set. Or a philosophy, rather than as a management function or well-defined area of activity.
- Despite well-publicized instances of industrial action, the emphasis on employee relations continues to shift from ‘collective’ institutions. Such as trade unions and collective bargaining, to the relationship with individual employees.
- The ideas of ’employee voice’ and the ‘psychological contract’ have been accepted by employers. Reflected in their employee relations policies and aspirations.
- Employee relations skills and competencies are still seen by employers as critical to achieving performance. Benefits through a focus on employee involvement, commitment, and engagement.
- Employee relations sees as strategic in terms of managing business risk. Both the downside risk of non-compliance with an expanding body of employment law. The upside risk of failing to deliver maximum business performance.
- Nearly two-thirds of unionized employers regard the relationship between management and unions as either positive or very positive.
- Public sector managers are more likely than those in the private sector to see union influence as strong. With, almost three-quarters reporting union influence as significant or very significant.
Disciplinary inputs of employment relations:

Many national labor laws contain provisions on the employment relationship. Despite certain similarities, however, not all national labor laws provide exhaustive or equal coverage of the subject. Some provisions deal with the regulation of the employment contract as a specific contract. Its definition, the parties, and their respective obligations. Other provisions are intending to facilitate

recognition of the existence of an employment relationship and prescribe administrative and judicial mechanisms for monitoring compliance. In general terms, the employment relationship creates a legal link between a person who performs work. The person for whose benefit the work is performed in return for remuneration. Under certain conditions established by national law and practice.

The determination of the existence of an employment relationship should guide by the facts of what was agree upon. Perform by the parties, and not on how either or both of the parties describe the relationship. This knows in law as the principle of the primacy of fact. The legislation adopts in some countries since the end of the twentieth century contains provisions refocusing.

Extra knowledge;

The employment relationship to extend the scope of the law and hence its protection to new categories of workers; to combat disguised or fraudulent employment relationships and improve compliance with the law, and to ease the burden of proof on the worker in particular. When seeking to prove the existence of an employment relationship in a given case.

To conclude, employment relations involve the body of work concerned with maintaining employer-employee relationships. That contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals which arise out of or affect work situations.” Why is the Need Entrepreneurship for Small Business?

Parallel to this regulatory response to the growing concern at the lack of protection for workers. Who are in fact in an employment relationship which might be ambiguous or disguise? There has also been a continuing tendency in case law to apply. The traditional approach to the employment relationship to new and complex situations.
November 21, 2017
What is Master the Art of Scheduling?
What is Master the Art of Scheduling?

“Where are you on the schedule?” Develop the ability to predict the amount of time as a sequence of key tasks that a project should take. And yet we all work with software developers who hate the pressure of committing to a schedule because to complete work usually takes “as long as it takes.” But you can’t effectively run a business without the confidence to work toward a schedule.

When you recognize the value of time management skills, you become the overseer of your life, with your schedule as your command center. Many people think that creating a schedule is as easy as jotting down the time and activity on a piece of paper. However, scheduling is so much more than that.

A well-planned schedule of everyday tasks is more than just a reminder of what needs to be done. It also allows you to make time for important tasks that are in line with your goals. It makes you become aware of how you spend your time each day. It helps you to recognize areas that need adjustments so that you can achieve balance between your personal life and your profession. So how should you schedule your time each day? What are the tools you need to become a “master scheduler?” Here are the strategies to learn:

Gather Your Scheduling Tools

In general, you would need three essential scheduling tools, and these are:

A daily planner,

A weekly planner, and

A monthly planner

The daily planner helps to keep you on the right track each day. It enables you to concentrate on exactly what tasks need to be done and how much time you have for each.

The weekly planner serves as your overview of the events planned out for that week as well as the tasks that you need to accomplish. It helps you get to see what is ahead of you, because focusing only on the everyday tasks might cause you to forget about what is in store for tomorrow, or the day after that.

Now, you might think that you do not need a monthly planner if you have a weekly one. However, it always helps to have all the dates of the month laid out on a single page. This will enable you to see the important dates of that month and plan your week and days around them.

However, it is possible to keep a monthly planner without the weekly planner. Just make sure that there is enough space for you to jot down your weekly tasks on the monthly planner.

There are plenty of planners whether digital or printed out there, so choose your layout carefully. Most of the time, you will find that many planners already have daily, weekly, and monthly sections. This is helpful, especially if you want to carry your planner around. Take care not to purchase more than one type of planner, because you would only end up feeling confused as to which one you should write your next set of tasks.

One suggestion on how to organize your different planners is that you should have a portable daily planner, and a desktop or wall-mounted weekly and/or monthly planner. This is because you will likely need to check your daily planner constantly throughout the day, while you only need to jot things down and review your weekly/monthly planner once a week. A large monthly planner is helpful as well, because you will want to see everything at a single glance.

Once you have your scheduling tools, the next step is to create a scheduling routine.

Create a Scheduling Routine

Do you take time at the end of each day to plan for the following day? If you do not, then now is the best time to build this habit. A master scheduler should set aside a time each day to plan for tomorrow, each week for the week ahead, and each month to review everything and plan for the next month.

In most cases, it will only take ten to twenty minutes to plan for the following day and thirty minutes to plan for the week and month ahead. However, the time you would invest in planning will save you from many problems in the future.

After you have set a fixed “scheduling” time, you should then establish a routine on how to schedule your time. Here are the recommended steps:
1. Time-block non-negotiable appointments
Certain parts of the day may be out of your control; such as board meetings or dentist appointments. You should secure them all first, otherwise you might end up with overlapping appointments.

It must be emphasized that you should also time-block the hours when you will be sleeping. Have to establish a fixed sleeping schedule to stay healthy and sharp the following day. Do not rob yourself of sleeping hours by cramming on certain tasks. Instead, focus on planning your day carefully so that you will have time to accomplish them all.
1. Schedule your Important Tasks
At this point, you would be able to see the times lots during the day when you do not have anything scheduled yet. If so, then you can refer to your list of priorities to allocate the different tasks into your day, week, or month.

For example, if your most important task for the day is to write a thousand words for your personal book project, and if you do not have anything scheduled between seven and ten a.m., then you can block this task within this time.
1. Schedule your Urgent Tasks
After you have secured the times lots for your important tasks, you should then move on to blocking in the urgent ones. It helps to use a different colored-pen or highlighter to separate the important from the urgent.

Do not forget to factor in breaks and an allowance in time for emergencies. In other words, you should never time-block one task after another without at least ten minutes of contingency time. This way, you will not be behind schedule in the next task when there was an unexpected extension in the task before it.

Here is an example:
- Important Task —- 7:00 am to 9:00 am
- Contingency Time —- 9:00 am to 9:15 am
- Urgent Task —- 9:15 am to 11:30 am
1. Review your schedule and make adjustments if necessary
Once you have your entire day planned out, you can go back and assess your schedule as a whole. If you notice that you have spread yourself too thin, consider delegating certain tasks to others, rescheduling them, or canceling them altogether. Once you are satisfied with your schedule, the only thing left to do is to take action.

As with any other skill, it takes constant practice to become better at scheduling and managing your time well. Nevertheless, it takes more than just scheduling and planning to do a great job every day without feeling burned out. That is because you also need to develop an efficient system. Read the post How to Make Establish an Efficient System? to learn more about that.
March 24, 2017
How to Learn of Hone Your Ability to Concentrate?

How to Learn of Hone Your Ability to Concentrate?

The ability to concentrate is a skill that becomes stronger over time. Through constant practice, you will be able to concentrate more effectively for an extended period of time. However, if you constantly find it difficult to focus on tasks, or if you find yourself wasting your time on unimportant activities, then you need to address this problem as soon as possible.

Ability: Human Resource Management; An acquired or natural capacity or talent that enables an individual to perform a particular job or task successfully. See also aptitude. Law; The power to carry out a legal act or satisfy a legal obligation.

Concentrate: A concentrate is a form of substance which has had the majority of its base component (in the case of a liquid: the solvent) removed. Typically, this will be the removal of water from a solution or suspension, such as the removal of water from fruit juice. One benefit of producing a concentrate is that of a reduction in weight and volume for transportation, as the concentrate can be reconstituted at the time of usage by the addition of the solvent. Completely different to clustered.

The good news is that there are tested-and-proven tips on how you can concentrate better. Apply the following tips and notice how you will then be able to finish your important tasks on time.

Eliminate distractions

Distractions come in all shapes and sizes. It could be the uncomfortable chair you are sitting on, the messy desk you have to work on, or the loud noises from outside. Whatever your case may be, it is important to get rid of them before you begin your task. That way, you can no longer use them as an excuse to procrastinate.

Here are some suggestions:

I. Hang up a “do not disturb” sign.

II. Play instrumental “concentration enhancing” music to drown out the background noise.

III. Set your phone on silent mode and store it away.

IV. Block certain websites that keep you from focusing.

Focus on one task at a time

Multi-tasking keeps you from being able to provide quality output. It also stresses your mind out, whether you are aware of it or not. This is because you are not really “accomplishing” multiple things at once, but rather you are rapidly switching from one task to another.

Instead, set aside a time block for a particular task and do absolutely nothing else except that task within that time frame. You could even set a timer so that you will not have to glance at the clock every now and then to check how much time you have left.

Take short breaks between tasks

Most people – even the most productive ones out there – can concentrate on an important task for no more than two hours at a time. Likewise, it takes approximately fifteen minutes of rest to replenish this concentration “energy.” Therefore, you can use this as a rule of thumb to schedule breaks.

For instance, after working non-stop on a task for two hours straight, set a timer to signal you to take a fifteen-minute break. Then, do something relaxing, such as taking a walk or having a snack. After fifteen minutes, you will be ready to take on another two-hour long task, give or take.

Focus on challenging tasks during your peak hours

Identify which part of the day you feel most confident and energized, and use this time to work on the tasks that require the most concentration. For most people, mornings are the times when they feel as if they can handle anything. For others, this happens during the evenings when everyone else is exhausted from work.

Reward yourself after accomplishing a challenging task

Our minds are programmed to repeat a certain behavior if we are rewarded for it. Therefore, to condition yourself to practice improving your concentration each day, do not forget to reward yourself after a job well done. It could be something as simple as playing a video game for an hour, watching an episode of your favorite television show, or enjoying a delicious, albeit sinful, snack. That way, you can be more driven to finish the task so that you can get your reward.

Aside from these tips, it always helps to remind yourself to take good care of your body. Always make it a priority to get enough hours of sleep, eat nutritious meals, and hydrate throughout the day. When your body is healthy and full of energy, it is only natural for your mind to be sharp and focused.

At this point, you must be excited to start working on your tasks. However, you might want to learn how to manage your schedule first, especially if you have multiple tasks to handle each day. Find out how you can acquire this skill in the post What is Master the Art of Scheduling?

March 24, 2017
How to Set the Right Goals?
How to Set the Right Goals?

A goal is a desired result or possible outcome that a person or a system envisions, plans and commits to achieve: a personal or organizational desired end-point in some sort of assumed development. Many people endeavor to reach goals within a finite time by setting deadlines.

It is roughly similar to purpose or aim, the anticipated result which guides reaction, or an end, which is an object, either a physical object or an abstract object, that has intrinsic value.

Setting the Goals

Goal setting may involve establishing specific, measurable, achievable, relevant, and time-bounded (SMART) objectives, but not all researchers agree that these SMART criteria are necessary.

Research on goal setting by Edwin A. Locke and his colleagues suggests that goal setting can serve as an effective tool for making progress when it ensures that group members have a clear awareness of what each person must do to achieve a shared objective. On a personal level, the process of setting goals allows individuals to specify and then work toward their own objectives (such as financial or career-based goals). Goal-setting comprises a major component of personal development and management.

Goals can be long-term, intermediate, or short-term. The primary difference is the time required to achieve them.

Short-term goals

Short-term goals expect accomplishment in a short period of time, such as trying to get a bill paid in the next few days. The definition of a short-term goal need not relate to any specific length of time. In other words, one may achieve (or fail to achieve) a short-term goal in a day, week, month, year, etc. The time-frame for a short-term goal relates to its context in the overall time line that it is being applied to. For instance, one could measure a short-term goal for a month-long project in days; whereas one might measure a short-term goal for someone’s lifetime in months or in years. Planners usually define short-term goals in relation to long-term goals.

In any endeavor, the first step is to establish a clear goal. The more detailed and clear it is, the easier it will be for you to make choices and establish steps that you need to take towards accomplishing it.

However, before getting into the subject of setting goals, let us first talk about the Goal-Setting Theory of Locke and Latham. Learning this will help you visualize the results that you truly want and need.

Dr. Edwin Locke, the author of the article “Toward a Theory of Task Motivation and Incentives”, published in 1968, explained that people become motivated towards doing their job when they are given clear goals as well as proper feedback. He also pointed that having a specific and challenging goal motivates people to boost their performance.

Twelve years later, Locke and Dr. Gary Latham published “A Theory of Goal Setting and Task Performance,” their seminal work. It not only highlighted the significance of setting definite and challenging goals, but also provided five key components that will guide you to set them successfully. These are Clarity, Challenge, Commitment, Feedback, and Task Complexity. Here are the steps on how you can use them:

Establish clear goals.

It is important to be detailed with what you want to accomplish. By doing so, you can track your progress and determine which areas you need to improve on and which ones are helping you to get closer to your goal.

Perhaps the most efficient way to establish goals is by applying the SMART criteria. This was first explained by George T. Doran in the November 1981 issue of Management Review. It has since become the primary tool used in setting goals.

“SMART” stands for Specific, Measurable, Achievable (or Assignable), Relevant, and Time-bound. Here is how you can apply each criterion:
1. Specific – the goal has to be so clear it leaves no room for doubt. Detail what is important to you, what you expect from it, how you will know when it happens, and so on.
2. Measurable – this puts emphasis on the need for measurable factors to help determine whether you are improving or not. Without measurable factors, you would find it impossible to stay motivated.
3. Assignable or Achievable – a goal may be specific and measurable, but it can be unachievable if it is unrealistic. It is important to ensure that you can either achieve the goal-related tasks yourself, or assign some of the tasks to someone who can.
4. Relevant – it is important to work towards a goal that is in line with your principles and purpose in life. For instance, you can consider whether the goal is worth the time, energy, and resources and if it is of true value to you.
5. Time-bound – a time frame is an essential part of goal setting, because it helps you commit and increases your focus. A goal that is not time-bound is usually shipped off to “someday” land and never seen again. Therefore, you must set a target date.
Here is an example of a SMART goal: “I will finish writing the first draft of my twenty-thousand-word romance fiction novel entitled “Oceans Away from Sarah” before December 25, 2016.”

Ensure that the goals are challenging

The more challenging yet realistic a goal is, the more motivated you will be to accomplish it. First, consider whether the goal you want makes you feel excited. Why does the thought of accomplishing it makes you feel good? Visualize the goal and determine the steps you need to take to turn it into a reality.

Commit yourself to the goal

Committing to your goal means that you are going to devote your time, energy, and resources to accomplish it. It also means you recognize its importance in your life and that you will not give up. It also helps to remember that plans can change, but the goal should remain the same.

Track your Progress to Get Feedback

As you work towards your goal, you must continuously enhance your skills, plans, and tools. That way, you can become even more efficient and effective. The only way to know how and what to improve on is by receiving feedback.

Feedback is easily given by a team leader and one’s peers in major projects, but if you are on your own, then you need to track your own progress to receive it. Therefore, you must create a way to measure your progress as soon as you start working towards your goal. Through these standards, you can determine how far along you are.

Calibrate the complexity of the task

If a certain task towards your goal is too challenging it becomes unrealistic, you can take a step back and make the necessary adjustments. In other words, do not charge head-on if you are unprepared for it, because you will only end up feeling too pressured. This is dangerous, because it can cause you to give up altogether.

Instead, consider the factors that are causing the task to be too complex. Reflect on whether you need more time, additional skills, or better tools for it. Maybe you need to break it down into smaller, more manageable parts. It is also possible that you need to delegate it to an expert. All these adjustments may even help you achieve your goal more efficiently.

Once you have established a clear goal, the next step is to generate tasks that are in line with it. By doing so, you would then be able to determine the time you need to accomplish it. How to Set Your Organize Priorities? posts will help you to identify which tasks are important each day, and which ones to set aside.
March 24, 2017
Do You Really Want to your Own a Business?
Do You Really Want to your Own a Business?

If “Yes” So, this article of post little help you How to Start. “Hope springs eternal in the human breast,” said English poet and essayist Alexander Pope several centuries ago. He wasn’t describing people expanding or starting a business, but he may as well have been. Everyone who goes into business for themselves hopes to meet or surpass a set of personal goals.

A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Businesses serve as a form of economic activity and are prevalent in capitalist economies, where most of them are privately owned and provide goods and services allocated through a market to consumers and customers in exchange for other goods, services, money, or other forms of exchange that hold intrinsic economic value. Businesses may also be social non-profit enterprises or state-owned public enterprises operated by governments with specific social and economic objectives. A business owned by multiple private individuals may form an incorporated company or jointly organize as a partnership. Countries have different laws that may ascribe different rights to the various business entities.

The word “business” can refer to a particular organization or to an entire market sector (for example: “the financial sector”) or to the sum of all economic activity (“the business sector”). Compound forms such as “agribusiness” represent subsets of the concept’s broader meaning, which encompasses all activity by suppliers of goods and services.

Sole Ownership: A sole proprietorship (ownership), also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business. All assets of the business belong to a sole proprietor, including, for example, a computer infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as any real property owned by the sole proprietor.

While your particular configuration is sure to be unique, perhaps you will agree with some of the ones I have compiled over the years from talking to hundreds of budding entrepreneurs.

Independence: A search for freedom and independence is the driving force behind many businesspeople. Wasn’t it Johnny Paycheck who wrote the song “Take This Job and Shove It?”

Personal Fulfillment: For many people, owning a business is a genuinely fulfilling experience, one that lifetime employees never know.

Lifestyle Change: many people find that while they can make a good income working for other people, they are missing some of life’s precious moments. With the flexibility of small business ownership, you can take time to stop and smell the roses.

Respect: Successful small business owners are respected, both by themselves and their peers.

Money: You can get rich in a small business, or at least do very well financially. most entrepreneurs don’t get wealthy, but some do. If money is your motivator, admit it.

Power: When it is your business, you can have your employees do it your way. There is a little Ghengis Khan in us all, so don’t be surprised if power is one of your goals. If it is, think about how to use this goal in a constructive way.

Right Livelihood: From natural foods to solar power to many types of service businesses, a great many cause-driven small businesses have done very well by doing good.

If owning a small business can help a person accomplish these goals, it’s small wonder that so many are started. Unfortunately, while the potential for great success exists, so do many risks. Running a small business may require that you sacrifice some short-term comforts for long-term benefits. It is hard, demanding work that requires a wide variety of skills few people are born with. But even if you possess (or more likely acquire) the skills and determination you need to successfully run a business, your business will need one more critical ingredient: money.

You need money to start your business, money to keep it running, and money to make it grow. This is not the same thing as saying you can guarantee success in your small business if you begin with a fat wallet. now, let me confess to one major bias here. I believe that most small business owners and founders are better off starting small and borrowing, or otherwise raising, as little money as possible. Put another way, there is no such thing as “raising plenty of capital to ensure success.” Unless you, as the prospective business founder, learn to get the most mileage out of every dollar, you may go broke and will surely spend more than you need to. But that doesn’t mean that you should try to save money by selling cheap merchandise or providing marginal services. In today’s competitive economy, your customers want the best you can give them at the best price. They will remember the quality of what they get from you long after they have forgotten how much they paid.

In practical terms, that means you must buy only the best goods for your customers. Anything that affects the image your business has in your customer’s mind should be first-rate. It also means that you shouldn’t spend money on things that don’t affect the customer. For example, unless you’re a real estate broker your customers probably won’t care if you drive an old, beat-up car to an office in a converted broom closet, as long as you provide them an honest product or service for an honest price. Save the nice car, fancy office, and mobile telephone until after your business is a success.

Self-Evaluation Exercises

Here’s a question to ponder: Are you the right person for your business? Because running a business is a very demanding endeavor that can take most of your time and energy, your business probably will suffer if you’re unhappy. Your business can become an albatross around your neck if you don’t have the skills and temperament to run it. Simply put, I’ve learned that no business, whether or not it has sound financial backing, is likely to succeed unless you, as the prospective owner, make two decisions correctly:
- You must honestly evaluate yourself to decide whether you possess the skills and personality needed to succeed in a small business.
- You must choose the right business.
A small business is a very personal endeavor. It will honestly reflect your opinions and attitudes, whether or not you design it that way. Think of it this way: The shadow your business casts will be your shadow. If you are sloppy, rude, crafty, or naively trusting, your business will mirror these attributes. If your personal characteristics are more positive than those, your business will be more positive, too. To put this concretely, suppose you go out for the Sunday paper and are met by a newsie who is groggy from a hangover and badmouths his girlfriend in front of you. chances are that next Sunday will find you at a different newsstand.

I’m not saying you need to be psychologically perfect to run a small business. But to succeed, you must ask people for their money every day and convince a substantial number of them to give it to you. By providing your goods or services, you will create intimate personal relationships with a number of people. It makes no difference whether you refer to people who give you money as clients, customers, patients, members, students, or disciples. It makes a great deal of difference to your chances of ultimate success if you understand that these people are exchanging their money for the conviction that you are giving them their money’s worth.

The following self-evaluation exercises will help you assess whether you have what it takes to successfully run a small business. Take out a blank sheet of paper or open a computer file.

Your Strong and Weak Points

Take a few minutes to list your personal and business strengths and weaknesses. Include everything you can think of, even if it doesn’t appear to be related to your business. For instance, your strong points may include the mastery of a hobby, your positive personality traits, and your sexual charisma, as well as your specific business skills. Take your time and be generous.

To provide you with a little help, I include a sample list for Antoinette Gorzak, a personal friend who has what she hopes is a good business idea: a slightly different approach to selling women’s clothing. You’ll get to know her better as we go along. Her strengths, weaknesses, fantasies, and fears are surely different from yours. So, too, almost certainly, is the business she wants to start. So be sure to make your own lists—don’t copy Antoinette’s.

Your list of strong and weak points will help you see any obvious conflicts between your personality and the business you’re in or want to start. For example, if you don’t like being around people but plan to start a life insurance agency with you as the primary salesperson, you may have a personality clash with your business. The solution might be to find another part of the insurance business that doesn’t require as much people contact.

Unfortunately, many people don’t realize that their personalities will have a direct bearing on their business success. An example close to the experience of folks at nolo involves bookstores. In the years since nolo began publishing, they have seen all sorts of people, from retired librarians to unemployed Ph.D.’s, open bookstores. A large percentage of these stores have failed because the skills needed to run a successful bookstore involve more than a love of books.

General and Specific Skills Your Business Needs

Businesses need two kinds of skills to survive and prosper: Skills for business in general and skills specific to the particular business. For example, every business needs someone to keep good financial records. on the other hand, the tender touch and manual dexterity needed by glassblowers are not skills needed by the average paving contractor. Next, take a few minutes and list the skills your business needs. don’t worry about making an exhaustively complete list, just jot down the first things that come to mind. make sure you have some general business skills as well as some of the more important skills specific to your particular business.

If you don’t have all the skills your business needs, your backers will want to know how you will make up for the deficiency. For example, let’s say you want to start a trucking business. You have a good background in maintenance, truck repair, and long distance driving, and you know how to sell and get work. Sounds good so far—but, let’s say you don’t know the first thing about bookkeeping or cash flow management and the thought of using a computer makes you nervous. Because some trucking businesses work on large dollar volumes, small profit margins, and slow-paying customers, your backers will expect you to learn cash flow management or hire someone qualified to handle that part of the business.

Your Likes and Dislikes

Take a few minutes and make a list of the things you really like doing and those you don’t enjoy. Write this list without thinking about the business—simply concentrate on what makes you happy or unhappy.

If you enjoy talking to new people, keeping books, or working with computers, be sure to include those. Put down all the activities you can think of that give you pleasure. Antoinette’s list is shown as an example.

As a business owner, you will spend most of your waking hours in the business, and if it doesn’t make you happy, you probably won’t be very good at it. If this list creates doubts about whether you’re pursuing the right business, I suggest you let your unconscious mind work on the problem. most likely, you’ll know the answer after one or two good nights’ sleep.

Specific Business Goals

Finally, list your specific business goals. Exactly what do you want your business to accomplish for you? Freedom from 9 to 5? money—and if so, how much? more time with the children? making the world or your little part of it a better place? It’s your wish list, so be specific and enjoy writing it.

How to Use the Self-evaluation Lists?

After you’ve completed the four self-evaluation lists, spend some time reading them over. Take a moment to compare the skills needed in your business to the list of skills you have. do you have what it takes?

Show them to your family and, if you’re brave, to your friends or anyone who knows you well and can be objective. of course, before showing the lists to anyone, you may choose to delete any private information that isn’t critical to your business. If you show your lists to someone who knows the tough realities of running a successful small business, so much the better. You may want to find a former teacher, a fellow employee, or someone else whose judgment you respect.

What do they think? do they point out any obvious inconsistencies between your personality or skills and what you want to accomplish? If so, pay attention. Treat this exercise seriously and you will know yourself better. oh, and don’t destroy your lists. Assuming you go ahead with your business and write your business plan, the lists can serve as background material or even become part of the final plan.

You have accomplished several things if you have followed these steps. You have looked inside and asked yourself some basic questions about who you are and what you are realistically qualified to do. As a result, you should now have a better idea of whether you are willing to pay the price required to be successful as a small businessperson. If you are still eager to have a business, you have said, “Yes, I am willing to make short-term sacrifices to achieve long-term benefits and to do whatever is necessary—no matter the inconvenience— to reach my goals.”

Reality Check: Banker’s Analysis

Banks and institutions that lend money have a lot of knowledge about the success rate of small businesses. Bankers are often overly cautious in making loans to small businesses. For that very reason it makes sense to study their approach, even though it may seem discouraging at first glance.

Banker’s Ideal

Bankers look for an ideal loan applicant, who typically meets these requirements:
- For an existing business, a cash flow sufficient to make the loan payments.
- For a new business, an owner who has a track record of profitably owning and operating the same sort of business.
- An owner with a sound, well-thought-out business plan.
- An owner with financial reserves and personal collateral sufficient to solve the unexpected problems and fluctuations that affect all businesses.
Why does such a person need a loan, you ask? He or she probably doesn’t, which, of course, is the point. People who lend money are most comfortable with people so close to their ideal loan candidate that they don’t need to borrow. However, to stay in business themselves, banks and other lenders must lend out the money deposited with them. To do this, they must lend to at least some people whose creditworthiness is less than perfect.

Measuring Up to the Banker’s Ideal

Who are these ordinary mortals who slip through bankers’ fine screens of approval? And more to the point, how can you qualify as one of them? Your job is to show how your situation is similar to the banker’s ideal.

A good bet is the person who has worked for, or preferably managed, a successful business in the same field as the proposed new business. For example, if you have profitably run a clothing store for an absentee owner for a year or two, a lender may believe you are ready to do it on your own. All you need is a good location, a sound business plan, and a little capital. Then, watch out Neiman-Marcus!

Further away from a lender’s ideal is the person who has sound experience managing one type of business, but proposes to start one in a different field. let’s say you ran the most profitable hot dog stand in the Squaw valley ski resort, and now you want to market computer software in the Silicon Valley of California. In your favor is your experience running a successful business. on the negative side is the fact that computer software marketing has

no relationship to hot dog selling. In this situation, you might be able to get a loan if you hire people who make up for your lack of experience. At the very least, you would need someone with a strong software marketing background, as well as a person with experience managing retail sales and service businesses. naturally, both of those people are most desirable if they have many years of successful experience in the software marketing business, preferably in California.

Use the Banker’s Ideal

It’s helpful to use the bankers’ model in your decision-making process. Use a skeptical attitude as a counterweight to your optimism to get a balanced view of your prospects. What is it that makes you think you will be one of the minority of small business owners who will succeed? If you don’t have some specific answers, you are in trouble. most new businesses fail, and the large majority of survivors do not genuinely prosper.

Many people start their own business because they can’t stand working for others. They don’t have a choice. They must be either boss or bum. They are more than willing to trade security for the chance to call the shots. They meet a good chunk of their goals when they leave their paycheck behind. This is fine as far as it goes, but in my experience, the more successful small business owners have other goals as well.

A small distributor we know has a well thought-out business and a sound business plan for the future. Still, he believes that his own personal commitment is the most important thing he has going for him. He puts it this way: “I break my tail to live up to the commitments I make to my customers. If a supplier doesn’t perform for me, I’ll still do everything I can to keep my promise to my customer, even if it costs me money.” This sort of personal commitment enables this successful business owner to make short-term adjustments to meet his long-range goals. And while it would be an exaggeration to say he pays this price gladly, he does pay it.

Note: This article of “Do You Really Want to your Own a Business?” from Internet and book of How to Write a Business Plan, only for share knowledge with help.
March 16, 2017
What is CSR?

What is CSR (Corporate Social Responsibility)?

Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society. A business’s CSR can encompass a wide variety of tactics, from giving away a portion of a company’s proceeds to charity, to implementing “greener” business operations.

Definition of Corporate Social Responsibility (CSR)

The movement aimed at encouraging companies to be more aware of the impact of their business on the rest of society, including their own stakeholders and the environment. Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.

CSR is a concept with many definitions and practices. The way it is understood and implemented differs greatly from each company and country. Moreover, CSR is a very broad concept that addresses many and various topics such as human rights, corporate governance, health and safety, environmental effects, working conditions and contribution to economic development. Whatever the definition is, the purpose of CSR is to drive change towards sustainability.

Although some companies may achieve remarkable efforts with unique CSR initiatives, it is difficult to be on the forefront on all aspects of CSR. Considering this, the example below provides good practices on one aspect of CSR environmental sustainability.

Corporate Social Responsibility

Example; Unilever is a multinational corporation, in the food and beverage sector, with a comprehensive CSR strategy. The company has been ranked “Food Industry leader’ in the Dow Jones Sustainability World Indexes for the 11 consecutive years and ranked 7th in the ‘Global 100 Most Sustainable Corporations in the World.”

One of the major and unique initiatives is the ‘sustainable tea’ program. On a partnership-based model with the Rainforest Alliance (an NGO), Unilever aims to source all of its Lipton and PG Tips tea bags from Rainforest Alliance Certified™ farms by 2015. The Rainforest Alliance Certification offers farms a way to differentiate their products as being social, economically and environmentally sustainable.

Other Definitions

The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts used the following definition:

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large The same report gave some evidence of the different perceptions of what this should mean for a number of different societies across the world. Definitions as different as CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government of Ghana, through to CSR is about business giving back to society from the Philippines.

Traditionally in the United States, CSR has been defined much more in terms of a philanthropist model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.

What is the Social Responsibility of Business?

Ever since Milton Friedman famously proclaimed “The Social Responsibility of Business is to Increase its Profits” (NYTimes 1970), pundits have pondered whether his purist interpretation was really the only way.

Profit is certainly a lot easier to quantify than something like ‘happiness’, but the intangible benefits of good, honest business clearly go way beyond pure finance Must the word ‘profit’ always refer to money in the strictest sense?

Collected on this page are various interpretations of the idea of “social responsibility” and the responsibility of business to take an active, passive or indifferent role in building a more sustainable world.

There are a few broad categories of social responsibility that many of today’s businesses are practicing:

I) Environmental efforts: One primary focus of corporate social responsibility is the environment. Businesses regardless of size have a large carbon footprint. Any steps they can take to reduce those footprints are considered both good for the company and society as a whole.

II) Philanthropy: Businesses also practice social responsibility by donating to national and local charities. Businesses have a lot of resources that can benefit charities and local community programs.

III) Ethical labor practices: By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility. This is especially true of businesses that operate in international locations with labor laws that differ from those in the United States.

IV) Volunteering: Attending volunteer events says a lot about a company’s sincerity. By doing good deeds without expecting anything in return, companies are able to express their concern for specific issues and support for certain organizations.

Examples of Corporate Social Responsibility

While many companies now practice some form of social responsibility, some are making it a core of their operations. Ben and Jerry’s, for instance, uses only fair trade ingredients and has developed a sustainability program for dairy farms in its home state of Vermont. Starbucks has created its C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably grown and processed coffee by evaluating the economic, social and environmental aspects of coffee production. Tom’s Shoes, another notable example of a company with CSR at its core, donates one pair of shoes to a child in need for every pair a customer purchases.

However, Stevens said companies need to really understand what their core social purpose is and how that aligns with their stated mission, to create a cohesive CSR strategy.

For example, Stevens said that Kashi, a Kellogg’s brand, wants to increase organic farming and is one of the few certified organic kinds of cereal. Since only 1 percent of U.S. farmland is actually organic, the breakfast brand worked with Quality Insurance International to help certify new organic farmers across the nation.

March 10, 2017
Social Responsibility

What is Meant by Social Responsibility?

Social responsibility is an ethical framework and suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. A trade-off may exist between economic development, in the material sense, and the welfare of the society and environment, though this has been challenged by many reports over the past decade. Social responsibility means sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone whose any action impacts the environment. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals.

Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. For instance, if a company follows the United States Environmental Protection Agency (EPA) guidelines for emissions of dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns. “A significant element of current thinking about privacy, however, stresses “self-regulation” rather than market or government mechanisms for protecting personal information”. According to some experts, most rules and regulations are formed due to public outcry, which threatens profit maximization and therefore the well-being of the shareholder, and that if there is not outcry there often will be limited regulation.

Social responsibility means that the government (including public corporations), NGOs, business organizations, and individuals have a responsibility to society to eliminate corruption and irresponsible or unethical behavior that might harm its people or the environment.

Corporate social responsibility, therefore, refers to a business’s obligation to set policies, make decisions, and follow courses of action that are desirable in terms of the values and objectives of society — its customers, employees, and people in the community.

Businesses accept social responsibilities when they take their objectives beyond what the business, the economy, and the law require and do what they feel are ethically and socially desirable. For example, such ethical and desirable actions might include raising the safety standards of product and continuously striving to care for the well-being of workers and their customers.

These ethical and desirable actions that businesses may choose to undertake may be well above the legally required standards.

Look at the following examples of Namibian businesses fulfilling their social responsibility towards the Namibian society:

Many companies are increasingly working on cultivating a social responsibility, whatever their actual practices. They are eager to prove that you can save the planet, help the poor and make money at the same time.

As an entrepreneur how can you behave in an ethically social responsible way towards the following?

Employees Responsibility

The main responsibility of any business is towards its employees. It is imperative that a business always looks for ways to support and empower its employees. A happy workforce, a well-motivated and a loyal workforce, leads to improvements in productivity and quality. Your responsibility towards your workers goes beyond just paying them salaries. A socially responsible business tries to ensure that its working environment is free from sexual harassment and discrimination.

Customers Responsibility

Even if you are an entrepreneur, you are also a customer at a business where you buy your products. It is, therefore, important that you live and practice the notion, “Do unto others as you would have them do unto you”. That means that you should treat your customers in the same way as you expect to be treated as a customer by other businesses. A business’s social responsibility actions towards its customers are rewarded by loyal customers and by their word-of-mouth advertising.

Government Responsibility

The acceptance of social responsibility has increased in the government because through policies, the government is forcing businesses to act responsibly. When a firm act in a socially responsible manner, it sets policies, makes decisions and follows courses of action that are desirable in terms of the values and objectives of its different stakeholders. To pay tax is a business’ responsibility towards the Government of a country.

Society/Community Responsibility

Social investment looks at what a business is doing for a community. Businesses can engage in social responsibility programs to help the community fight their social problems, such as drug addiction in impoverished areas or providing recreation activities for the youth. These programs normally aim to improve standards of living and create more stable and peaceful communities.

Corporate Responsibility

Corporate Social Responsibility

Corporate social responsibility or CSR has been defined by Lord Holme and Richard Watts of the World Business Council for Sustainable Development’s publication “Making Good Business Sense” as ” the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.” CSR is one of the newest management strategies where companies try to create a positive impact on society while doing business. Evidence suggests that CSR taken on voluntarily by companies will be much more effective than CSR mandated by governments. There is no clear-cut definition of what CSR comprises. Every company has different CSR objectives through the main motive is the same. All companies have a two-point agenda to improve qualitatively (the management of people and processes) and quantitatively (the impact on society). The second is as important as the first and stakeholders of every company are increasingly taking an interest in “the outer circle”-the activities of the company and how these are impacting the environment and society. The other motive behind this is that the companies should not be focused only on the maximization of profits.

Social responsibility, therefore, is about holding a group, organization or company accountable for the effects it has on the people within the company, people working with the company, the community in which the company operates and those who buy from the company.

How Does an Individual Become Socially Responsible?

The Workshop for Civic Initiatives Foundation (WCIF), Bulgaria, describes ISR in its position statement on Social Responsibility as, “The individual social responsibility includes the engagement of each person towards the community where he lives, which can be expressed as an interest towards what’s happening in the community, as well as in the active participation in the solving of some of the local problems. Under community, we understand the village, the small town or the residential complex in the big city, where lives every one of us. Each community lives its own life that undergoes a process of development all the time. And every one of us could take part in that development in different ways, for example by taking part in cleaning of the street on which he lives, by taking part in organization of an event, connected with the history of the town or the village or by rendering social services to children without parents or elderly people. The individual social responsibility also could be expressed in making donations for significant for the society causes – social, cultural or ecological. There are many ways of donating, as for example donating of goods or donating money through a bank account or online”

Social Responsibility can be “negative,” in that it is a responsibility to refrain from acting (resistance stance) or it can be “positive,” meaning there is a responsibility to act (proactive stance). Being socially responsible not only requires participating in socially responsible activities like recycling, volunteering and mentoring, but to actually make it a lifestyle. Only through a commitment to embrace and embed social responsibility into your personal value and belief system can you truly become socially responsible in all you do.

What is a Social Entrepreneur?

Entrepreneur Social Responsibility

Social entrepreneurs work to solve critical social problems and address basic unmet needs through entrepreneurship. Their innovations create system change, improving the lives of underserved or marginalized groups.

Despite the increased attention that social entrepreneurship has received in recent years, there is no precise definition. Various organizations describe social entrepreneurship differently:

Ashoka defines social entrepreneurs as “individuals with innovative solutions to society’s most pressing social problems” who “find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to move in different directions.”

The Skoll Foundation calls social entrepreneurs “society’s change agents, creators of innovations that disrupt the status quo and transform our world.”

In the Stanford Social Innovation Review, Roger L. Martin and Sally Osberg offer a more rigorous definition. A social entrepreneur is “someone who targets an unfortunate but stable equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity; who brings to bear on this situation his or her inspiration, direct action, creativity, courage, and fortitude; and who aims for and ultimately affects the establishment of a new stable equilibrium that secures permanent benefit for the targeted group and society at large.”

March 10, 2017