Human Resource Management and Personnel Management
“Personnel management is the responsibility of all those who manage people, as well as a description of the work of specialists. Personnel managers advise on, formulate, and implement personnel policies such as recruitment, conditions of employment, performance appraisal, training, industrial relations, and health and safety. There are various models of personnel management, of which human resource management is the most recent.”
http://dictionary.bnet.com/definition/Personnel+Management.html
In this definition of personnel management, it shows that human resource management is a model of personnel management. For me, they are somewhat similar, both manages humans or the people of an organization.
“Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.”
http://en.wikipedia.org/wiki/Human_resource_management
I definitely agree with this statement, without the people who contributed to a company’s success, everything is useless. Human Resource Management is the heart of an organization and it plays a significant role in motivating the employees to become professionals and to bring out the best in them.
“When it comes to handling all the responsibilities associated with maintaining a workforce, personnel management has the most legal and financial responsibilities of the whole organization, without which the overall success of the business is at risk.”
http://it.toolbox.com/wiki/index.php/Personnel_Management
The overall success of an organization depends to its people or personnel. The nicer they are managed, the better the work. In this way, employees are encouraged to do the best they can for the organization.
“Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise (Cherrington, 1995, p. 5).”
http://www.answers.com/topic/human-resource-management
Humans are an organization's greatest assets; without them, everyday business functions such as managing cash flow, making business transactions, communicating through all forms of media, and dealing with customers could not be completed. In order to maximize organizational effectiveness, human potential—individuals' capabilities, time, and talents—must be managed.
“Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.”
-Susan M. Heathfield-
http://humanresources.about.com/od/glossaryh/f/hr_management.htm
Yes, this definition is precisely true. Human Resource Management deals with issues concerning the most vital element of an organization, the people.
HRM Assignment 9
Interview a personnel/human resource manager on his concept on the nature, scope and role of human resource management. Do you agree with him? Explain. Is his concept similar to that of the management of his organization? If not, ask him how the differences are settled.
Human Resource Management
The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.
The strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.
Nature of Human Resource Management
Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include:
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees deve¬lop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good results.
• It helps an organization meet its goals in the future by providing for competent and well-moti¬vated employees.
• It tries to build and maintain cordial relations between people working at various levels in the organization.
• It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, econo¬mics, etc.
Role of Human Resource Management
PLANNING AND ORGANIZING FOR WORK, PEOPLE AND HRM
• STRATEGIC PERSPECTIVE
Develop Human Resource plans and strategies aligned to the organization’s strategic direction and business strategy. Provide tools and tactics to enhance execution of these strategies. Integrate HRM with current and pending legislation and socio-political changes. Integrate Human Resource Management with general organisational management. Manage the interface between HRM processes and systems. Formulate and communicate HRM policies. Scan the environment (both international and national) and identify emerging trends that will affect the organization and the management of people therein. Assess the long-term impact of short-term decisions on people. Manage people related
issues accompanying mergers, alliances and acquisitions. Express (embody) the
philosophy and values regarding people management in the organisation.
• CHANGE MANAGEMENT
Advise management on implications of change for employees. Co-ordinate &
facilitate the change process. Facilitate changed relationships. Provide support
structures for employees during change. Deliberate and proactive
management of the changing environment and its implications for work and
the organization.
• CORPORATE WELLNESS MANAGEMENT
Develop and communicate policies and procedures with regard to the management of well being. Manage occupational health and safety. Manage wellbeing (Employee Assistance programs & Health Promotion programs).
PEOPLE ACQUISITION AND DEVELOPMENT
STAFFING THE ORGANIZATION
As anexample, each of the functions of this role is further unpacked in terms of
activities.
Human Resource Planning (linked to strategic perspective)
Determining requirements of jobs
Recruitment of staff for the organisation
Selection of human resources
Placement of staff
Induction and orientation
Management of a-typical employment situations.
Managementof termination
TRAINING &DEVELOPMENT
• PERFORMANCE MANAGEMENT
• INDUSTRIAL RELATIONS
ADMINISTRATION OF POLICIES, PROGRAMMES & PRACTICES
• COMPENSATION MANAGEMENT
• INFORMATION MANAGEMENT
• ADMINISTRATIVE MANAGEMENT
• FINANCIAL MANAGEMENT
According to Mr. Alex Somera, an HR Personnel of Emcor, the Human Resource Department of Emcor is the responsible for managing the Human Resources. For looking for possible employees to fill in vacancies, to analyze cause of the problems of unusual behavior of employees in the working environment. The human Resource department is also responsible for the development of the morale of every employee from the simplest laborer to the highest position in the organization. He also said that all of the transaction regarding the employee can be found in the Human Resource-Department for example like the processing of the Salary, Accounting Division, assist the employee for their basic needs like medication, loan etc. He said that the main purpose of the HRM is to attain the needs of the employees. The welfare of the employees is the topmost priority of the HRD, He said that the human force is the responsible that is why the organization generates, the employees are the reason and responsible for the survival of the industry that is why they have to take care of them, they are the one who builds and keep the organization survive but they could also be the reason to destabilize the industry.
I agree with Mr. Alex Somera, no company will survive without taking care of their human resources. An employee would always complain if there are any irregularities in the organization. If the HRD won’t take action on that, that would cause a problem, maybe it will take effect on the working performance of their employees.
Human Resource Management
The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.
The strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.
Nature of Human Resource Management
Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The various features of HRM include:
• It is pervasive in nature as it is present in all enterprises.
• Its focus is on results rather than on rules.
• It tries to help employees deve¬lop their potential fully.
• It encourages employees to give their best to the organization.
• It is all about people at work, both as individuals and groups.
• It tries to put people on assigned jobs in order to produce good results.
• It helps an organization meet its goals in the future by providing for competent and well-moti¬vated employees.
• It tries to build and maintain cordial relations between people working at various levels in the organization.
• It is a multi-disciplinary activity, utilizing knowledge and inputs drawn from psychology, econo¬mics, etc.
Role of Human Resource Management
PLANNING AND ORGANIZING FOR WORK, PEOPLE AND HRM
• STRATEGIC PERSPECTIVE
Develop Human Resource plans and strategies aligned to the organization’s strategic direction and business strategy. Provide tools and tactics to enhance execution of these strategies. Integrate HRM with current and pending legislation and socio-political changes. Integrate Human Resource Management with general organisational management. Manage the interface between HRM processes and systems. Formulate and communicate HRM policies. Scan the environment (both international and national) and identify emerging trends that will affect the organization and the management of people therein. Assess the long-term impact of short-term decisions on people. Manage people related
issues accompanying mergers, alliances and acquisitions. Express (embody) the
philosophy and values regarding people management in the organisation.
• CHANGE MANAGEMENT
Advise management on implications of change for employees. Co-ordinate &
facilitate the change process. Facilitate changed relationships. Provide support
structures for employees during change. Deliberate and proactive
management of the changing environment and its implications for work and
the organization.
• CORPORATE WELLNESS MANAGEMENT
Develop and communicate policies and procedures with regard to the management of well being. Manage occupational health and safety. Manage wellbeing (Employee Assistance programs & Health Promotion programs).
PEOPLE ACQUISITION AND DEVELOPMENT
STAFFING THE ORGANIZATION
As anexample, each of the functions of this role is further unpacked in terms of
activities.
Human Resource Planning (linked to strategic perspective)
Determining requirements of jobs
Recruitment of staff for the organisation
Selection of human resources
Placement of staff
Induction and orientation
Management of a-typical employment situations.
Managementof termination
TRAINING &DEVELOPMENT
• PERFORMANCE MANAGEMENT
• INDUSTRIAL RELATIONS
ADMINISTRATION OF POLICIES, PROGRAMMES & PRACTICES
• COMPENSATION MANAGEMENT
• INFORMATION MANAGEMENT
• ADMINISTRATIVE MANAGEMENT
• FINANCIAL MANAGEMENT
According to Mr. Alex Somera, an HR Personnel of Emcor, the Human Resource Department of Emcor is the responsible for managing the Human Resources. For looking for possible employees to fill in vacancies, to analyze cause of the problems of unusual behavior of employees in the working environment. The human Resource department is also responsible for the development of the morale of every employee from the simplest laborer to the highest position in the organization. He also said that all of the transaction regarding the employee can be found in the Human Resource-Department for example like the processing of the Salary, Accounting Division, assist the employee for their basic needs like medication, loan etc. He said that the main purpose of the HRM is to attain the needs of the employees. The welfare of the employees is the topmost priority of the HRD, He said that the human force is the responsible that is why the organization generates, the employees are the reason and responsible for the survival of the industry that is why they have to take care of them, they are the one who builds and keep the organization survive but they could also be the reason to destabilize the industry.
I agree with Mr. Alex Somera, no company will survive without taking care of their human resources. An employee would always complain if there are any irregularities in the organization. If the HRD won’t take action on that, that would cause a problem, maybe it will take effect on the working performance of their employees.
HRM Assignment 8
On the assumption that you heard/read the SONA of the President last month (July 2009), identify at least 3 areas related to Human Resource Management and explain how these areas can improve our quality of life.
Last July 27,2009 Gloria Macapagal- Arroyo’s SONA for 2009 was delivered at the joint session of the Congress of the Philippines. And the president cited areas that are related to Human Resource Management (HRM).
NAPC MICROFINANCE UNIT
Pursuant to the mandates stipulated in Title II of Republic Act 8425, the National Anti-Poverty Commission, through the Microfinance Unit (MFU), works toward the development of an enabling policy environment for the microfinance industry and ensure that microfinance services reach their target clientele -- the poor. The MFU was created as a separate unit of the NAPC Secretariat in June 2004 by virtue of Special Order No. 2004-22. Since then the Unit has made remarkable gains in the monitoring, policy review, gender mainstreaming, replication of best practices and educating the poor in microfinance.
NAPC’s Thrusts and Functions in Microfinance:
RA 842 the following thrusts and functions of NAPC towards the development of the microfinance sector:
* Development of a policy environment, especially in the area of savings generation
* Rationalization of existing government programs for credit/guarantee
* Utilization of existing government financial entities for provision of MF products/ and services for the poor
* Promotion of mechanisms necessary for implementation of MF services, including indigenous MF practices
The law also mandates NAPC to monitor the utilization of the People’s Development Trust Fund (PDTF) and perform the following activities:
* Source funds for the establishment of/and augmentation of PDTF
* Recommend the accreditation of organizations/institutions acting as resource partners for institutional development
* Ensure that validation/monitoring activities are conducted for PDTF-funded projects
* Promote research and development work on livelihood & MF technology, publications/communications programs for poor beneficiaries
OFW
In good times and bad, overseas Filipinos keep our nation resilient. Their remittances of $16 billion last year were a record. I know that this is not a sacrifice joyfully borne. This is work where it can be
found—in faraway places, among strangers with different cultures. It is lonely work, it is hard work. That is why we are working to create good paying jobs here at home, so that
overseas work will just be a career choice, not the only option for a hardworking Filipino.
Meanwhile, we should make their sacrifices worthwhile. We should take stronger measures to preserve and enhance the value of their hard earned wages. That means stronger consumer protection for overseas Filipinos investing in property and products back home. For them, I am activating an
Investors Protection Task Force.
Labor Protection programs that will generate jobs and employment, protect the Filipino workers here and abroad as well as promote their welfare by ensuring that the terms and conditions of their work, such as wages, working hours and safety measures are humane and just.
Tax Revenues
“We will work to increase tax effort through improved collections and new sin taxes to further our capacity to reduce poverty and pursue growth. Revenue enhancement must come from the Department of Finance plugging leaks and catching tax and customs cheats. I call on tax paying citizens and tax paying businesses, help the BIR and stop those tax cheats”.
This will help the improvement because the returns can be a benefit to all. The infrastructures, the roads, and any other government projects help the people. Though many claims that they cannot feel the benefit from the taxes they’re paying, still, it cant be denied that, sometimes, we were just trying to ignore the existence of the projects that the government give back to our community.
Education
“Ang magandang edukasyon ay susi sa mas magandang buhay, the great equalizer that allows every young Filipino a chance to realize their dreams”, president Arroyo.
"It seeks to mainstream early childhood development in basic education. Our children are our most cherished possession. In their early years we must make sure they get a healthy start in life. They must receive the right food for a healthy body, the right education for a bright and inquiring mind—and the equal opportunity for a meaningful job".
-We built 95,000 classrooms, created 60,000 teaching jobs, and allocated P1.5 billion for teacher training, especially for 100,000f English teachers. One of the most difficult Millennium Development Goal is Education for All by 2015, meaning, universal primary education. Almost no country will achieve it. But we are still trying. We built schools in over a million villages where there were none so that the children can save on transportation going to school. We eliminated miscellaneous fees for primary school. School uniforms are no longer required for public school.
In private high schools, we finance half of the students.
Expand and improve comprehensive early childhood care and education, especially for the most vulnerable and disadvantaged children.
Ensure that the learning needs of all young people and adults are met through equitable access to appropriate learning and life-skills programs.
Improve all aspects of the quality of education and ensure excellence of all so that recognized and measurable learning outcomes are achieved by all, especially in literacy, numeracy and essential life skills.
References:
http://coolbusteratyourservice.blogspot.com/2009/06/pgma-sona-2009-full-text.html
http://www.gov.ph/sona/sona2009/2009_SONA_TECHNICAL_REPORT.pdfhttp://jlp-law.com/blog/state-of-the-nation-address-sona-2009/
Last July 27,2009 Gloria Macapagal- Arroyo’s SONA for 2009 was delivered at the joint session of the Congress of the Philippines. And the president cited areas that are related to Human Resource Management (HRM).
NAPC MICROFINANCE UNIT
Pursuant to the mandates stipulated in Title II of Republic Act 8425, the National Anti-Poverty Commission, through the Microfinance Unit (MFU), works toward the development of an enabling policy environment for the microfinance industry and ensure that microfinance services reach their target clientele -- the poor. The MFU was created as a separate unit of the NAPC Secretariat in June 2004 by virtue of Special Order No. 2004-22. Since then the Unit has made remarkable gains in the monitoring, policy review, gender mainstreaming, replication of best practices and educating the poor in microfinance.
NAPC’s Thrusts and Functions in Microfinance:
RA 842 the following thrusts and functions of NAPC towards the development of the microfinance sector:
* Development of a policy environment, especially in the area of savings generation
* Rationalization of existing government programs for credit/guarantee
* Utilization of existing government financial entities for provision of MF products/ and services for the poor
* Promotion of mechanisms necessary for implementation of MF services, including indigenous MF practices
The law also mandates NAPC to monitor the utilization of the People’s Development Trust Fund (PDTF) and perform the following activities:
* Source funds for the establishment of/and augmentation of PDTF
* Recommend the accreditation of organizations/institutions acting as resource partners for institutional development
* Ensure that validation/monitoring activities are conducted for PDTF-funded projects
* Promote research and development work on livelihood & MF technology, publications/communications programs for poor beneficiaries
OFW
In good times and bad, overseas Filipinos keep our nation resilient. Their remittances of $16 billion last year were a record. I know that this is not a sacrifice joyfully borne. This is work where it can be
found—in faraway places, among strangers with different cultures. It is lonely work, it is hard work. That is why we are working to create good paying jobs here at home, so that
overseas work will just be a career choice, not the only option for a hardworking Filipino.
Meanwhile, we should make their sacrifices worthwhile. We should take stronger measures to preserve and enhance the value of their hard earned wages. That means stronger consumer protection for overseas Filipinos investing in property and products back home. For them, I am activating an
Investors Protection Task Force.
Labor Protection programs that will generate jobs and employment, protect the Filipino workers here and abroad as well as promote their welfare by ensuring that the terms and conditions of their work, such as wages, working hours and safety measures are humane and just.
Tax Revenues
“We will work to increase tax effort through improved collections and new sin taxes to further our capacity to reduce poverty and pursue growth. Revenue enhancement must come from the Department of Finance plugging leaks and catching tax and customs cheats. I call on tax paying citizens and tax paying businesses, help the BIR and stop those tax cheats”.
This will help the improvement because the returns can be a benefit to all. The infrastructures, the roads, and any other government projects help the people. Though many claims that they cannot feel the benefit from the taxes they’re paying, still, it cant be denied that, sometimes, we were just trying to ignore the existence of the projects that the government give back to our community.
Education
“Ang magandang edukasyon ay susi sa mas magandang buhay, the great equalizer that allows every young Filipino a chance to realize their dreams”, president Arroyo.
"It seeks to mainstream early childhood development in basic education. Our children are our most cherished possession. In their early years we must make sure they get a healthy start in life. They must receive the right food for a healthy body, the right education for a bright and inquiring mind—and the equal opportunity for a meaningful job".
-We built 95,000 classrooms, created 60,000 teaching jobs, and allocated P1.5 billion for teacher training, especially for 100,000f English teachers. One of the most difficult Millennium Development Goal is Education for All by 2015, meaning, universal primary education. Almost no country will achieve it. But we are still trying. We built schools in over a million villages where there were none so that the children can save on transportation going to school. We eliminated miscellaneous fees for primary school. School uniforms are no longer required for public school.
In private high schools, we finance half of the students.
Expand and improve comprehensive early childhood care and education, especially for the most vulnerable and disadvantaged children.
Ensure that the learning needs of all young people and adults are met through equitable access to appropriate learning and life-skills programs.
Improve all aspects of the quality of education and ensure excellence of all so that recognized and measurable learning outcomes are achieved by all, especially in literacy, numeracy and essential life skills.
References:
http://coolbusteratyourservice.blogspot.com/2009/06/pgma-sona-2009-full-text.html
http://www.gov.ph/sona/sona2009/2009_SONA_TECHNICAL_REPORT.pdfhttp://jlp-law.com/blog/state-of-the-nation-address-sona-2009/
MIS Assignment 7
Reflection:
"Human beings are the most important, potent and critical, resource of any organization, and yet the least understood and the worst managed of its resources"
Human beings are the most important, potent and critical, resource of any organization because human beings constitute an organization’s most important and vital factor in its success or failure. Through and by men, the money, machines, materials, methods and markets are acquired and utilized. The accomplishment of the goals of an organization depends upon the availability and utilization of all these ingredients the interaction of which are people-caused. The acquisition, utilization, and development of financial, material, technological, and market resources which may be exhaustible are dependent on human resources. An organization may start with zero funding, but with creative, resourceful, hardworking and honest people, it becomes financially viable. On the other hand, a plethora of financial and material resources in an organization may go down the drain if handled by an incompetent and dishonest staff.
Yet the least understood and the worst managed of its resources
Unlike material and financial assets, human beings, by their nature , are highly dynamic and elusive, defying foolproof quantitative analysis and predictability. The challenge of management is not so much in its money, machines, methods, markets but in its people. They are least understood because every man or each one us has its own mind, style and uniqueness, complex in any ways. Also the personal goals of an individual are not realized, because there is and incongruence between individual goals and the organization’s goal and this is likely result in conflict.
Human resources are the worst managed because some companies look at people as an expense items and as factors of production. Hence, relatively fewer funds are provided for activities like screening, selection, training and education. The budget is nil for human resources planning, counseling and research. The management would rather put its money in production, marketing or finance where the returns are visible and countable. This is because their work orientation’s priorities are on organization and management welfare which is mainly for profit.
“Companies are truly unusual in their ability to achieve extraordinary results through ordinary people.”
"Human beings are the most important, potent and critical, resource of any organization, and yet the least understood and the worst managed of its resources"
Human beings are the most important, potent and critical, resource of any organization because human beings constitute an organization’s most important and vital factor in its success or failure. Through and by men, the money, machines, materials, methods and markets are acquired and utilized. The accomplishment of the goals of an organization depends upon the availability and utilization of all these ingredients the interaction of which are people-caused. The acquisition, utilization, and development of financial, material, technological, and market resources which may be exhaustible are dependent on human resources. An organization may start with zero funding, but with creative, resourceful, hardworking and honest people, it becomes financially viable. On the other hand, a plethora of financial and material resources in an organization may go down the drain if handled by an incompetent and dishonest staff.
Yet the least understood and the worst managed of its resources
Unlike material and financial assets, human beings, by their nature , are highly dynamic and elusive, defying foolproof quantitative analysis and predictability. The challenge of management is not so much in its money, machines, methods, markets but in its people. They are least understood because every man or each one us has its own mind, style and uniqueness, complex in any ways. Also the personal goals of an individual are not realized, because there is and incongruence between individual goals and the organization’s goal and this is likely result in conflict.
Human resources are the worst managed because some companies look at people as an expense items and as factors of production. Hence, relatively fewer funds are provided for activities like screening, selection, training and education. The budget is nil for human resources planning, counseling and research. The management would rather put its money in production, marketing or finance where the returns are visible and countable. This is because their work orientation’s priorities are on organization and management welfare which is mainly for profit.
“Companies are truly unusual in their ability to achieve extraordinary results through ordinary people.”
HRM Assignment 6
What do you think will the 21st -century corporations look like?
We are currently living in the 21st century – the Information Age. Corporation targets to go global, where technology plays the most important role. The Corporation is undergoing radical transformation, the new Industrial Revolution.
The corporation's fate over the next century is as fascinating to contemplate as it is difficult to predict. But as a general proposition, there is no reason to think that the corporation has reached the limits of its adaptive powers. Over the decades, it has proven a remarkably flexible vehicle for spreading commercial risk (and reward) and for organizing investment on a great scale over vast geographic distances. As we speed ahead into a future that is unknowable by definition, it is useful to pause and glance in the rearview mirror. Today's corporation is not an empty vessel waiting to be filled by the future. It is the product of a long and tumultuous history, of opportunities grasped and crises overcome--and it is all the stronger for it.
The Net gives everyone in the organization, the ability to access a mind-boggling array of information in just a click, from anywhere. Instead of seeping out over months or years, ideas can be spread out around the globe in the blink of an eye. That means that the 21st century Corporation must adapt itself to management via the Web. Already, old business models that emphasized fixed assets, working capital, and economies of scale have become increasingly vulnerable to nimbler organizations that employ new technologies to reduce costs.
Leading-edge technology will enable workers on the bottom rungs of the organization to seize opportunity as it arises. Employees will increasingly feel the pressure to get breakthrough ideas to market first. Thus, the corporation will need to nurture an array of formal and informal networks to ensure that these ideas can speed into development. In the near future, companies will call on outside contractors to assemble teams of designers, prototype producers, manufacturers, and distributors to get the job done. Emerging technologies will allow employees and freelancers anywhere in the world to converse in numerous languages online without the need for a translator.
And this rapid flow of information will permeate the organization. We could imagine that orders will be fulfilled electronically without a single phone call or piece of paper. The ''virtual financial close'' will put real-time sales and profit figures at every manager's fingertips via the click of a wireless phone or a spoken command to a computer. And in just a blink of an eye, everything you wanted to know about your company will come in just a second.
In the beginning, the global company was defined as one that simply sold its goods in overseas markets. Later, global companies assumed a manufacturing presence in numerous countries. The company of the future will call on talent and resources--especially intellectual capital--wherever they can be found around the globe, just as it will sell its goods and services around the globe. Indeed, the very notion of a headquarters country may no longer apply, as companies migrate to places of greatest advantage. The new global corporation might be based in the U.S. but do its software programming in Sri Lanka, its engineering in Germany, and its manufacturing in China. Every outpost will be seamlessly connected by the Net so that far-flung employees and freelancers can work together in real time. All this work will be done in an instant. With the use of the internet, speed is the biggest impact in terms of actions, deliberations, and information. And it leaves the old, process-oriented corporation in a total revamp. With everything from product cycles to employee turnover on fast-forward, there is simply not enough time for deliberation.
It is said that the very core of the 21st century Corporation is technology. It simply means that human minds and hands have been removed from an organization's most routine tasks and replaced them with computers and networks. Having this ideal to digitize everything from employee benefits to accounts receivables to product design cuts time, cost, and people from operations, resulting in huge savings and vast improvements in speed.
The truly great 21st century companies will recognize that the real power of technology is not just the ability to make a business more efficient but also its potential to spark transformative change. Much of that change will involve the company's relationship with its customers. In an era of unprecedented choice, in which prices and product specs for almost anything are only a click away, companies will have to offer a lot more than bargain prices.
True 21st century corporations will also learn to manage an elaborate network of external relationships. That far-reaching ecosystem of suppliers, partners, and contractors will allow them to focus on what they do best and farm everything else out. And it will let them quickly take advantage of fleeting opportunities without having to tie up vast amounts of capital. Outsourcing and partnering, of course, are hardly new. But in the coming century, such alliances will become more crucial.
Because of the spark of the rapid development of new technologies, particularly the Internet, the corporation is undergoing a radical transformation that is reaching far across the globe and in every corner of the world. From the early practices, features and structures, corporation in the 21st century will show off beyond what we can imagine.
Reference:
http://www.businessweek.com/common_frames
We are currently living in the 21st century – the Information Age. Corporation targets to go global, where technology plays the most important role. The Corporation is undergoing radical transformation, the new Industrial Revolution.
The corporation's fate over the next century is as fascinating to contemplate as it is difficult to predict. But as a general proposition, there is no reason to think that the corporation has reached the limits of its adaptive powers. Over the decades, it has proven a remarkably flexible vehicle for spreading commercial risk (and reward) and for organizing investment on a great scale over vast geographic distances. As we speed ahead into a future that is unknowable by definition, it is useful to pause and glance in the rearview mirror. Today's corporation is not an empty vessel waiting to be filled by the future. It is the product of a long and tumultuous history, of opportunities grasped and crises overcome--and it is all the stronger for it.
The Net gives everyone in the organization, the ability to access a mind-boggling array of information in just a click, from anywhere. Instead of seeping out over months or years, ideas can be spread out around the globe in the blink of an eye. That means that the 21st century Corporation must adapt itself to management via the Web. Already, old business models that emphasized fixed assets, working capital, and economies of scale have become increasingly vulnerable to nimbler organizations that employ new technologies to reduce costs.
Leading-edge technology will enable workers on the bottom rungs of the organization to seize opportunity as it arises. Employees will increasingly feel the pressure to get breakthrough ideas to market first. Thus, the corporation will need to nurture an array of formal and informal networks to ensure that these ideas can speed into development. In the near future, companies will call on outside contractors to assemble teams of designers, prototype producers, manufacturers, and distributors to get the job done. Emerging technologies will allow employees and freelancers anywhere in the world to converse in numerous languages online without the need for a translator.
And this rapid flow of information will permeate the organization. We could imagine that orders will be fulfilled electronically without a single phone call or piece of paper. The ''virtual financial close'' will put real-time sales and profit figures at every manager's fingertips via the click of a wireless phone or a spoken command to a computer. And in just a blink of an eye, everything you wanted to know about your company will come in just a second.
In the beginning, the global company was defined as one that simply sold its goods in overseas markets. Later, global companies assumed a manufacturing presence in numerous countries. The company of the future will call on talent and resources--especially intellectual capital--wherever they can be found around the globe, just as it will sell its goods and services around the globe. Indeed, the very notion of a headquarters country may no longer apply, as companies migrate to places of greatest advantage. The new global corporation might be based in the U.S. but do its software programming in Sri Lanka, its engineering in Germany, and its manufacturing in China. Every outpost will be seamlessly connected by the Net so that far-flung employees and freelancers can work together in real time. All this work will be done in an instant. With the use of the internet, speed is the biggest impact in terms of actions, deliberations, and information. And it leaves the old, process-oriented corporation in a total revamp. With everything from product cycles to employee turnover on fast-forward, there is simply not enough time for deliberation.
It is said that the very core of the 21st century Corporation is technology. It simply means that human minds and hands have been removed from an organization's most routine tasks and replaced them with computers and networks. Having this ideal to digitize everything from employee benefits to accounts receivables to product design cuts time, cost, and people from operations, resulting in huge savings and vast improvements in speed.
The truly great 21st century companies will recognize that the real power of technology is not just the ability to make a business more efficient but also its potential to spark transformative change. Much of that change will involve the company's relationship with its customers. In an era of unprecedented choice, in which prices and product specs for almost anything are only a click away, companies will have to offer a lot more than bargain prices.
True 21st century corporations will also learn to manage an elaborate network of external relationships. That far-reaching ecosystem of suppliers, partners, and contractors will allow them to focus on what they do best and farm everything else out. And it will let them quickly take advantage of fleeting opportunities without having to tie up vast amounts of capital. Outsourcing and partnering, of course, are hardly new. But in the coming century, such alliances will become more crucial.
Because of the spark of the rapid development of new technologies, particularly the Internet, the corporation is undergoing a radical transformation that is reaching far across the globe and in every corner of the world. From the early practices, features and structures, corporation in the 21st century will show off beyond what we can imagine.
Reference:
http://www.businessweek.com/common_frames
HRM Assignment 5
Visit and identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes.
Downsizing is an extremely relevant issue to organizations today in that it has become the most prevalent dilemma in recent years. The current tendency of organizations to restructure and ultimately to downsize has a major negative impact on the organizations themselves, on their surviving and terminated employees, on the government, and on society as a whole. In fact, it is everyone's problem, and it seems to have become more the rule than the exception that it used to be in the not too distant past. The current adverse economic climate has been persistent and long-lasting. As a result, many organizations that were operating inefficiently have been driven out of business, and most of those that have survived were forced to restructure in order to streamline their operations and achieve operating cost savings that would ensure their continued competitiveness both on the local and global markets.
There are many reasons why an organization may need to lay off employees in the current business environment that includes mergers and acquisitions, outsourcing key operations, and eliminating less-than-optimal business lines are just a few. However, at the heart of any layoff decision is the need to remain financially viable and competitive both now and in the future. It can therefore be tempting to continue the cost-saving measures as you select an outplacement services provider for your downsized employees. However, the choices you make can seriously impact your company’s reputation and profitability in the future.
One company that has undergone HR downsizing was Motorola Inc.
Motorola Inc. is laying off 2,600 employees across the company, resultingin a pretax charge of $104 million for the first quarter, the Schaumburg-basedtelecommunications equipment-maker disclosed in a regulatory filing Thursday.
In a separate statement, Motorola said the layoffs are part of a previouslyannounced plan to cut costs by $500 million this year. Executives haddisclosed the cost-reducing program at the beginning of 2008 and warned thatit could mean job losses. Motorola’s employee head count totaled 66,000 at theend of 2007, according to the annual report it filed in February.
The company reports second-quarter earnings on April 24 and is expecting afurther decline in sales and global market share for its cell phone unit.Motorola previously announced that it also is planning to split the handsetdivision into an independent, publicly traded company with a new chiefexecutive who has yet to be hired.
A sizable portion of the 2,600 lost jobs will come from Singapore, where the company is planning to halt cell phone manufacturing by the end of thisyear. The shuttering of those operations will result in the loss of 700 jobs.Motorola said in its 2007 annual report that Singapore, along with China andBrazil, are the company’s largest cell phone manufacturing facilities, and thelion’s share of its handsets are made in Asia.
Other major reductions are to take place in Plantation, Fla., where Motorola will let go of 354 employees, and in a Birmingham, England, facilitythat will lose 120 jobs.
Motorola said the reductions were made across all three of its business units, as well as on the corporate level. Since becoming chief executive in January, Greg Brown has seen significant turnover in senior executives. In February he took direct control of the cell phone unit from Stu Reed, who subsequently left Motorola, and later hired new heads of finance and human resources. Brown also restructured marketing operations, with the chief marketing officer leaving the company.
Crisis of any kind is always an opportunity for change. Anytime ever are people more willing to accept new solutions than when they become necessary. Beyond the spectrum of this crisis, solutions streamline the costs of personnel are always much needed. Processes related to these solutions are delicate and requires attention: for example the right sizing of staff can not do than without a systematic analysis of staffing needs for a longer time span.
When:
• The company goes through a period of crisis (financial, etc) more difficult than usual;
• It is necessary to reorganize and streamline the current activity, for optimal use of available resources;
• It is necessary to restructure the company by the waiver of certain activities or by reducing a significant
amount of their share in total activities;
• There are conflicts between employees and management that has to be resolved;
• Downsizing is necessary.
Methodology
Downsizing can be effective if implemented appropriately. Companies must be careful to avoid sending the wrong messages to employees, shareholders and the media. Successful downsizing requires managers to:
• Evaluate the overall impact of downsizing. The total cost of downsizing-including both financial and non-financial costs-must be taken into account. Managers must calculate the present value of all costs and benefits associated with the cuts, including severance packages, lower employee productivity due to disorder or talent loss, eventual rehiring expenses, future rightsizing costs and the lost opportunity costs associated with not having the appropriate manpower to accelerate out of the downturn. Investing in areas customers care about-while competitors are cutting back-helps position the company to take or sustain the lead once conditions improve. The value created from downsizing should exceed the cost of lower employee morale and potential damage to the company's reputation;
• Develop a smooth downsizing process. It is crucial that managers invest aggressively in upfront planning for the job cuts. A company typically forms a committee to determine the appropriate level of downsizing and creates a process that takes into account the best interests of the company and the shareholders. Other important activities are training managers to conduct layoffs and assisting former employees in their job searches.
Companies use downsizing to:
• Reduce costs;
• Rightsize resources relative to market demand;
• Signal that the company is taking proactive steps to adjust to changing business needs;
• Take advantage of cost synergies after a merger;
• Release the least-productive resources.
References:
http://archives.chicagotribune.com/2008/apr/04/business/chi-fri-motorola-8k-jobcuts-motapr04
http://en.allexperts.com/q/Human-Resources-2866/Downsizing.htm
Downsizing is an extremely relevant issue to organizations today in that it has become the most prevalent dilemma in recent years. The current tendency of organizations to restructure and ultimately to downsize has a major negative impact on the organizations themselves, on their surviving and terminated employees, on the government, and on society as a whole. In fact, it is everyone's problem, and it seems to have become more the rule than the exception that it used to be in the not too distant past. The current adverse economic climate has been persistent and long-lasting. As a result, many organizations that were operating inefficiently have been driven out of business, and most of those that have survived were forced to restructure in order to streamline their operations and achieve operating cost savings that would ensure their continued competitiveness both on the local and global markets.
There are many reasons why an organization may need to lay off employees in the current business environment that includes mergers and acquisitions, outsourcing key operations, and eliminating less-than-optimal business lines are just a few. However, at the heart of any layoff decision is the need to remain financially viable and competitive both now and in the future. It can therefore be tempting to continue the cost-saving measures as you select an outplacement services provider for your downsized employees. However, the choices you make can seriously impact your company’s reputation and profitability in the future.
One company that has undergone HR downsizing was Motorola Inc.
Motorola Inc. is laying off 2,600 employees across the company, resultingin a pretax charge of $104 million for the first quarter, the Schaumburg-basedtelecommunications equipment-maker disclosed in a regulatory filing Thursday.
In a separate statement, Motorola said the layoffs are part of a previouslyannounced plan to cut costs by $500 million this year. Executives haddisclosed the cost-reducing program at the beginning of 2008 and warned thatit could mean job losses. Motorola’s employee head count totaled 66,000 at theend of 2007, according to the annual report it filed in February.
The company reports second-quarter earnings on April 24 and is expecting afurther decline in sales and global market share for its cell phone unit.Motorola previously announced that it also is planning to split the handsetdivision into an independent, publicly traded company with a new chiefexecutive who has yet to be hired.
A sizable portion of the 2,600 lost jobs will come from Singapore, where the company is planning to halt cell phone manufacturing by the end of thisyear. The shuttering of those operations will result in the loss of 700 jobs.Motorola said in its 2007 annual report that Singapore, along with China andBrazil, are the company’s largest cell phone manufacturing facilities, and thelion’s share of its handsets are made in Asia.
Other major reductions are to take place in Plantation, Fla., where Motorola will let go of 354 employees, and in a Birmingham, England, facilitythat will lose 120 jobs.
Motorola said the reductions were made across all three of its business units, as well as on the corporate level. Since becoming chief executive in January, Greg Brown has seen significant turnover in senior executives. In February he took direct control of the cell phone unit from Stu Reed, who subsequently left Motorola, and later hired new heads of finance and human resources. Brown also restructured marketing operations, with the chief marketing officer leaving the company.
Crisis of any kind is always an opportunity for change. Anytime ever are people more willing to accept new solutions than when they become necessary. Beyond the spectrum of this crisis, solutions streamline the costs of personnel are always much needed. Processes related to these solutions are delicate and requires attention: for example the right sizing of staff can not do than without a systematic analysis of staffing needs for a longer time span.
When:
• The company goes through a period of crisis (financial, etc) more difficult than usual;
• It is necessary to reorganize and streamline the current activity, for optimal use of available resources;
• It is necessary to restructure the company by the waiver of certain activities or by reducing a significant
amount of their share in total activities;
• There are conflicts between employees and management that has to be resolved;
• Downsizing is necessary.
Methodology
Downsizing can be effective if implemented appropriately. Companies must be careful to avoid sending the wrong messages to employees, shareholders and the media. Successful downsizing requires managers to:
• Evaluate the overall impact of downsizing. The total cost of downsizing-including both financial and non-financial costs-must be taken into account. Managers must calculate the present value of all costs and benefits associated with the cuts, including severance packages, lower employee productivity due to disorder or talent loss, eventual rehiring expenses, future rightsizing costs and the lost opportunity costs associated with not having the appropriate manpower to accelerate out of the downturn. Investing in areas customers care about-while competitors are cutting back-helps position the company to take or sustain the lead once conditions improve. The value created from downsizing should exceed the cost of lower employee morale and potential damage to the company's reputation;
• Develop a smooth downsizing process. It is crucial that managers invest aggressively in upfront planning for the job cuts. A company typically forms a committee to determine the appropriate level of downsizing and creates a process that takes into account the best interests of the company and the shareholders. Other important activities are training managers to conduct layoffs and assisting former employees in their job searches.
Companies use downsizing to:
• Reduce costs;
• Rightsize resources relative to market demand;
• Signal that the company is taking proactive steps to adjust to changing business needs;
• Take advantage of cost synergies after a merger;
• Release the least-productive resources.
References:
http://archives.chicagotribune.com/2008/apr/04/business/chi-fri-motorola-8k-jobcuts-motapr04
http://en.allexperts.com/q/Human-Resources-2866/Downsizing.htm
MIS Journal
September 27, 2009
Our group agreed to meet today for us to continue our documentation for our major paper. Supposedly, we had to meet 2:00 pm at McDonalds Bajada but due to some circumstances we had started our documentation 6:30 pm. We divided the task, the SWOT analysis was assigned to Edsa and Emilio, and the STEEP analysis was assigned to Karen. The first 3 hours of our documentation was going well but the next hours were strenuous.
It was already 12:00 am when we left at McDonald.
September 25, 2009
On this day, we had our interview at ANFLOCOR. We arrived there at 12:30 pm and we had to wait 30 minutes because office time is 1:00 pm.
We had so many questions that we asked from Mr. Giovanni Pimentel, the IT-Senior Manager of ANFLOCOR. The questions were more about on STEEP and SWOT analysis. We asked him about the Sociological, Technological, Economical, Environmental, and Political factors that are external to the organization. Then, we asked him about the Strengths, Weaknesses, Opportunities and Threats of their organization. We also asked him about the structure of their company and a brief history of there IS.
We ended our interview at 2:30 pm.
September 25, 2009
During the last few days we have been checking our email account but there is still no reply from Sir Giovanni. So we decided to call them. Fortunately, we were able to talked t Sir Giovanni. We first asked for an apology (thank God! He understands.). Finally, we will have our interview this Friday, September 25, 2009 at 1:00 pm.
September 14, 2009
We sent an email for Sir Giovanni, saying sorry and asking for a reschedule of interview… if we can still.
September 13, 2009
We checked our email and read Sir Giovanni’s reply which was sent on September 10, 2009. Sir Giovanni said that he will be vacant on September 11, 2009 at 1pm. Since, September 11 had already passed and we weren’t able to be there, we felt sorry for ourselves and we were so downhearted and afraid that Sir Giovanni might not allow us to interview him anymore.
September 09, 2009
We went at ANFLOCOR before 8:00 in the morning. Sir Giovanni has not yet arrived and the girl on the reception said that Sir Giovanni will be having an important meeting on that morning, so we might not be entertained. Sir Giovanni’s secretary said that we really cant be entertained so she gave their contact number for us to call and confirm our next interview.
Later that day, we checked our email and figured out that Sir Giovanni had actually sent us a message telling that we can interview him 1pm that day.
August 26, 2009
We sent on email to Sir Giovanni requesting for a third interview.
August 20, 2009
We browsed through internet for STEEP and SWOT analysis examples. After an in-depth study about what and to come up with STEEP and SWOT. We immediately formulated questions for our adopted company.
August 17-19, 2009
We started making the possible contents of our ISNA. After making the draft of our table of contents, we decided the task among the members. The introduction was assigned to Edsa, background information about the company to Edsa and Emilio and the purpose, scope and objective of the study and the approaches to systems building was assigned to Karen.
August 11, 2009
We started to researched and study for our major paper. We browsed the internet looking for articles that are related to our study. We did a research about the STEE and SWOT analysis and examples of it. We also did research about the background information of ANFLOCOR and what is a holding company. Moreover, we researched about the agile method and waterfall method and we also looked for examples of Information System Needs Assessments. After we had gathered such information we discussed and studied it.
August 12, 2009
Again, we consulted Sir Gamboa fro our ghant chart. Luckily, he approved it and it is ok for posting.
August 10, 2009
By this time, we consulted Sir Gamboa for our ghant chart. Unfortunately, we had some mistakes that we hadn’t noticed so we had to revise our ghant chart.
August 06,2009
This day is our schedule for our second interview. We arrived at the ANFLOCOR approximately 8:00 am. The interview started 8:15 am. We asked the IT-senior manager about their strategic transitions in there IS, how their organization does used Information System for competitive advantage and the factors to consider when planning a new system. We also asked him whether their system is in-source or out-source, what are the hardware and software used and how does they manage it e.g. maintenance and back-up. Also we asked him regarding the company’s approached to system building, the SWOT of the company, the problems and issues they had encountered and the flow of their major business and IS operations. However, he refused to give us the information about the flow of their major business and IS operation.
Lastly, we had a picture taking with him and we ended our interview past 9:00 am.
August 04, 2009
Our group decided to discuss or review the slides presentation of the reports so that we can formulate guide questions for our interview. So we met up at the boarding house of one of our group mate after our classes. But before that we did a research on the library and internet for other references.
July 27, 2009
On this day, we had our first ever interview in ANFLOCOR with Mr. Giovanni Pimentel, senior manager – IT and Management Services of ANFLOCOR Company. The scheduled time was 8am, and we were there just on time but only Edsa and Emilio was there to conduct the interview.
The interview was all about the basic information in management information system of the company. It goes smoothly yet a little nervous in our part, we felt intimidated and challenge as well. We asked questions such as the role MIS in their company, how it affect, in what way and some sort of things. We also threw the same questions we had during the class sharing like hacking, resistance, and etc. He shared to us the company background of the company, their services, what kind of company is ANFLOCOR, the history of there is, about their personnel and department, the sub-company it has and a lot more. General thoughts regarding their company was tackled and discussed.
During the interview we informed him regarding the ISNA or major paper we have, if it is okay to conduct a series of interview for the information we needed to complete the study. He told us that he is willing to be interviewed but he also informed us that e cannot give us the confidential information.
Before the interview ended, we also had a picture taking with Sir Pimentel and informed him that we will have another interview with him. It was a good start for our major paper though.
July 23, 2009
After a few days, July 23, we visited our prospect companies and presented a letter asking for interview and ANFLOCOR was one of it. Fortunately, the said company accepted the request and told us to follow-up the request letter on the following day. After a day, we made a call to the company and luckily the senior manager of MIS department gave us a schedule date for interview.
July 15, 2009
On July 15, 2009, we managed to gathered/researched basic information of our prospect company to be adopted from the visitation we had. Through the use of internet we acquired information such as company’s background and company’s profile that is needed for the approval of company adaptation.
July 6, 2009
In our group we started our major paper on July 6, 2009 by searching of what company to be adopted. List of companies were presented to seek for approval from our MIS-instructor. During these days, presenting of different companies were made tow or more times, prior to this, we also started to visit some of the company to ask for permission to conduct a study. Throughout of the visited, some of the companies declined from our request namely: Concentrix and some of the companies which don’t have a MIS.
Our group agreed to meet today for us to continue our documentation for our major paper. Supposedly, we had to meet 2:00 pm at McDonalds Bajada but due to some circumstances we had started our documentation 6:30 pm. We divided the task, the SWOT analysis was assigned to Edsa and Emilio, and the STEEP analysis was assigned to Karen. The first 3 hours of our documentation was going well but the next hours were strenuous.
It was already 12:00 am when we left at McDonald.
September 25, 2009
On this day, we had our interview at ANFLOCOR. We arrived there at 12:30 pm and we had to wait 30 minutes because office time is 1:00 pm.
We had so many questions that we asked from Mr. Giovanni Pimentel, the IT-Senior Manager of ANFLOCOR. The questions were more about on STEEP and SWOT analysis. We asked him about the Sociological, Technological, Economical, Environmental, and Political factors that are external to the organization. Then, we asked him about the Strengths, Weaknesses, Opportunities and Threats of their organization. We also asked him about the structure of their company and a brief history of there IS.
We ended our interview at 2:30 pm.
September 25, 2009
During the last few days we have been checking our email account but there is still no reply from Sir Giovanni. So we decided to call them. Fortunately, we were able to talked t Sir Giovanni. We first asked for an apology (thank God! He understands.). Finally, we will have our interview this Friday, September 25, 2009 at 1:00 pm.
September 14, 2009
We sent an email for Sir Giovanni, saying sorry and asking for a reschedule of interview… if we can still.
September 13, 2009
We checked our email and read Sir Giovanni’s reply which was sent on September 10, 2009. Sir Giovanni said that he will be vacant on September 11, 2009 at 1pm. Since, September 11 had already passed and we weren’t able to be there, we felt sorry for ourselves and we were so downhearted and afraid that Sir Giovanni might not allow us to interview him anymore.
September 09, 2009
We went at ANFLOCOR before 8:00 in the morning. Sir Giovanni has not yet arrived and the girl on the reception said that Sir Giovanni will be having an important meeting on that morning, so we might not be entertained. Sir Giovanni’s secretary said that we really cant be entertained so she gave their contact number for us to call and confirm our next interview.
Later that day, we checked our email and figured out that Sir Giovanni had actually sent us a message telling that we can interview him 1pm that day.
August 26, 2009
We sent on email to Sir Giovanni requesting for a third interview.
August 20, 2009
We browsed through internet for STEEP and SWOT analysis examples. After an in-depth study about what and to come up with STEEP and SWOT. We immediately formulated questions for our adopted company.
August 17-19, 2009
We started making the possible contents of our ISNA. After making the draft of our table of contents, we decided the task among the members. The introduction was assigned to Edsa, background information about the company to Edsa and Emilio and the purpose, scope and objective of the study and the approaches to systems building was assigned to Karen.
August 11, 2009
We started to researched and study for our major paper. We browsed the internet looking for articles that are related to our study. We did a research about the STEE and SWOT analysis and examples of it. We also did research about the background information of ANFLOCOR and what is a holding company. Moreover, we researched about the agile method and waterfall method and we also looked for examples of Information System Needs Assessments. After we had gathered such information we discussed and studied it.
August 12, 2009
Again, we consulted Sir Gamboa fro our ghant chart. Luckily, he approved it and it is ok for posting.
August 10, 2009
By this time, we consulted Sir Gamboa for our ghant chart. Unfortunately, we had some mistakes that we hadn’t noticed so we had to revise our ghant chart.
August 06,2009
This day is our schedule for our second interview. We arrived at the ANFLOCOR approximately 8:00 am. The interview started 8:15 am. We asked the IT-senior manager about their strategic transitions in there IS, how their organization does used Information System for competitive advantage and the factors to consider when planning a new system. We also asked him whether their system is in-source or out-source, what are the hardware and software used and how does they manage it e.g. maintenance and back-up. Also we asked him regarding the company’s approached to system building, the SWOT of the company, the problems and issues they had encountered and the flow of their major business and IS operations. However, he refused to give us the information about the flow of their major business and IS operation.
Lastly, we had a picture taking with him and we ended our interview past 9:00 am.
August 04, 2009
Our group decided to discuss or review the slides presentation of the reports so that we can formulate guide questions for our interview. So we met up at the boarding house of one of our group mate after our classes. But before that we did a research on the library and internet for other references.
July 27, 2009
On this day, we had our first ever interview in ANFLOCOR with Mr. Giovanni Pimentel, senior manager – IT and Management Services of ANFLOCOR Company. The scheduled time was 8am, and we were there just on time but only Edsa and Emilio was there to conduct the interview.
The interview was all about the basic information in management information system of the company. It goes smoothly yet a little nervous in our part, we felt intimidated and challenge as well. We asked questions such as the role MIS in their company, how it affect, in what way and some sort of things. We also threw the same questions we had during the class sharing like hacking, resistance, and etc. He shared to us the company background of the company, their services, what kind of company is ANFLOCOR, the history of there is, about their personnel and department, the sub-company it has and a lot more. General thoughts regarding their company was tackled and discussed.
During the interview we informed him regarding the ISNA or major paper we have, if it is okay to conduct a series of interview for the information we needed to complete the study. He told us that he is willing to be interviewed but he also informed us that e cannot give us the confidential information.
Before the interview ended, we also had a picture taking with Sir Pimentel and informed him that we will have another interview with him. It was a good start for our major paper though.
July 23, 2009
After a few days, July 23, we visited our prospect companies and presented a letter asking for interview and ANFLOCOR was one of it. Fortunately, the said company accepted the request and told us to follow-up the request letter on the following day. After a day, we made a call to the company and luckily the senior manager of MIS department gave us a schedule date for interview.
July 15, 2009
On July 15, 2009, we managed to gathered/researched basic information of our prospect company to be adopted from the visitation we had. Through the use of internet we acquired information such as company’s background and company’s profile that is needed for the approval of company adaptation.
July 6, 2009
In our group we started our major paper on July 6, 2009 by searching of what company to be adopted. List of companies were presented to seek for approval from our MIS-instructor. During these days, presenting of different companies were made tow or more times, prior to this, we also started to visit some of the company to ask for permission to conduct a study. Throughout of the visited, some of the companies declined from our request namely: Concentrix and some of the companies which don’t have a MIS.
MIS: Assignment 9
Identify an information environment of your choice and write an essay to address the following questions:
• What should be your role within this environment?
• How can the principles of information organization and representation help you in performing this role?
• What are the challenges facing you in performing the role? How will you address these challenges?
The flow of information has changed the way we live in today world. Information is the backbone of every system. Every morning when we read a newspaper having out so much information we came to know the latest happening in the world (of course in details), yeah you are right even the internet .
We can take the example of banking. It is very to transact any amount of money from part of the world to other with help of e-commerce. We can purchase anything online with help of debit and credit cards. This has made our lives more and more simple.
Now days if we want to buy to something and are not getting it nearby store then we can simply search for that thing on internet and then order it on the internet. We will get it delivered at our doorstep with just few clicks of mouse. Similarly if we want to travel around the world we can book airline tickets online and even book rooms for our hotels (of course at competitive rates). People are working on the internet without really having to go outside to their workplace.
Companies can share technologies online. Even the doctors can guide the other doctors while operating on a patient with the help of Information Technology.
A whole new world is coming in our way.
E-Commerce
Electronic commerce, commonly known as (electronic marketing) e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.
A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web.
Electronic commerce that is conducted between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.
Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce.
On the consumer level, electronic commerce is mostly conducted on the World Wide Web. An individual can go online to purchase anything from books or groceries, to expensive items like real estate. Another example would be online banking, i.e. online bill payments, buying stocks, transferring funds from one account to another, and initiating wire payment to another country. All of these activities can be done with a few strokes of the keyboard.
On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce today.
My role within this environment
Electronic commerce is here to stay. No matter how big the dot-com crisis was or how far the e-entrepreneurs' shares fell in the market, the fact remains that there is still confidence in electronic trading. At least it would appear that investors are confident in e-companies again.
However, not only trust of venture capitalists is of importance -- consumers also have to have faith in on-line business. After all, without consumers there is no e-business. Interacting lawyers, technicians and economists are needed to create a trustworthy electronic commerce environment.
To achieve this environment, thorough and inter-disciplinary research is required and that is exactly what this book is about. Researchers of the project Enabling Electronic Commerce from the Dutch universities of Tilburg and Eindhoven have chosen a number of e-topics to elaborate on trust from their point of view.
This volume makes clear that the various disciplines can and will play a role in developing conditions for trust and thus contribute to a successful electronic market.
How can the principles of information organization and representation help you in performing this role?
The quality of "findability" is the ability of a user to find the information they need, regardless of whether he or she has touched it before, knows exactly where it is, or knows in which repository it resides. To manage unstructured content effectively and efficiently, it must be organized. Structure is needed to address the underlying challenge of managing content.
It helps me to...
Understand my content
The first step in coming to grips with content in any organization is to clarify your business goals. What exactly are they? Why do you need to organize this data? What strategic goal will it achieve? This basic question is often overlooked when starting a project. If there is no legitimate business reason to add metadata or build an enterprise-wide taxonomy or business classification scheme, then doing so is nothing more than a waste of money.
Get it organized. To organize information, we use a sequential process. The steps are as follows: hypothesis, audit, inventory, analyze, clean up and enrich, reorganize, and migrate. Going through each of these steps one at a time will help you achieve your goals quickly and efficiently.
Analysis, cleanup, and enrich. During the inventory you should begin to identify groups of information that belong together, such as invoices, contracts, case files, etc. You should start to capture those attributes in the form of various fields of metadata that can be added to the inventory list. This can be metadata that helps you identify, structure, or administer an object. Every bit of metadata added to an object takes time and money, so its purpose must be extremely well defined and thought through. There is no substitute for a clear metadata strategy.
Reorganize and migrate. This step is where you decide what information is relevant and should be moved into the new environment, grouping together what belongs together and migrating it from the chaotic environment that you’ve been working in to an organized and logical environment.
Establishing virtual personas
An effective means of dealing with the challenge of identifying user groups and understanding their needs is to create virtual “personas”. These are fictitious characters created to represent each of the user types within your organization, distinguished by the way they approach and consume information. These personas should be realistic and bestowed with as much detail as necessary to mimic the needs of the actual user groups.
Don’t get lost in the process
An important caveat: Don’t lose sight of the fact that information is only part of the overall user experience and it’s important not to get lost in organizing data for its own sake. Searching is one way to retrieve information and get access to it. No search engine by itself, however, will provide the perfect solution and meet the needs of all users at the same time without some careful tuning and without considering some of the alternatives and different kinds of search.
What are the challenges facing you in performing the role? How will you address these challenges?
Protecting Online Privacy
As the network technology we utilize becomes more advanced so do the security issues surrounding these technologies. Evolving from the days of "sneaker net" to gigabit ethernet has introduced seemingly infinite risks associated with our public and private networks.
The Web can be a dangerous place for consumers and businesses. One recent report says credit card fraud is now 12 times higher online than in-store, while another report pegs online fraud at four times the old-fashioned kind. No matter how you slice it, that’s a pretty scary statistic.
But we must also realize that the Web is driving double-digit sales growth and that online fraud still accounts for less than 1.2 cents out of every dollar spent online. As IT professionals, do we have a challenge managing Web security? Yes, we do, but it’s manageable.
Ease of use, flexibility and economy need to be built into the way we manage Web commerce risk. Today, the customer is asked to provide several layers of information for authentication: user ID, password, credit card number and possibly other identifying information such as his or her date of birth, address or zip code. If this information checks out with the credit card company and the business, the customer is allowed to complete the transaction.
But the natural corollary to all these layers of authentication is that consumers are wary of the Web. They know that a social security number entered online could wind up in an identity thief’s hands. They know that a phone number or e-mail address given for “questions about your order” could quickly turn into dinnertime sales pitches or junk e-mails flooding their inboxes. And they want it to stop.
Lack of Confidence Costs
Have you ever considered what you’re losing in online business by not managing security better? It’s estimated that electronic commerce would double if people had greater confidence that their privacy was protected on the Web. In fact, the lack of confidence in privacy outpaces all other concerns--including price and ease of use--in inhibiting people from buying on the Web.
Harris Interactive says 70 percent of consumers worry that their online transactions aren’t secure, and 75 percent are concerned that companies will share their personal information with others. Those fears reduced U.S. online purchasing by $15 billion last year, according to the latest consumer research.
The biggest mistake IT professionals make in assessing Web security is focusing on the challenge and not looking at the business opportunity. If you help build online relationships with customers based on trust, they will ask you to add them to your mailing lists, they will want you to recommend products from marketing partners, and they will stick by you forever.
Solution…
Privacy is the number one concern of Internet users; it is also the top reason why non-users still avoid the Internet. Survey after survey indicates mounting concern. While privacy faces threats from both private and government intrusions, the existing motley patchwork of privacy laws and practices fails to provide comprehensive protection. Instead, it causes confusion that fuels a sense of distrust and skepticism, limiting realization of the Internet's potential.
A unique combination of tools -- legal, technical, and self-regulatory -- is being designed to address the privacy concerns of Internet users. Top-priority objectives include setting limits on government access to personal information, ensuring that new information and communication technologies are designed in ways that protect rather than diminish privacy, and developing appropriate federal legislation to set baseline standards for consumer privacy. This guide is intended to educate Internet users about online privacy, and offer practical suggestions and policy recommendations.
Ways to Protect Your Privacy Online
• Learn how to read online privacy policies
• Opt-out and use any other privacy options offered
• Get a separate account for your personal e-mail
• Teach your kids not to give out personal information online without permission
• Be careful when using social networking sites and picture/video sharing sites
• Learn about - and use - the privacy features in your browser
• Make sure that online transactions are secure
• Learn how to spot phishing and other scams
• Reject or delete unnecessary cookies
• Use security software and promptly install security upgrades
• Safeguard important files and communications
• Use anonymizer tools, but cautiously
• Use strong passwords and protect them
• Use common sense
References:
http://www.ebizq.net/topics/ecm/features/1695.html?page=2
http://en.wikipedia.org/wiki/Electronic_commerce#Business_applications
• What should be your role within this environment?
• How can the principles of information organization and representation help you in performing this role?
• What are the challenges facing you in performing the role? How will you address these challenges?
The flow of information has changed the way we live in today world. Information is the backbone of every system. Every morning when we read a newspaper having out so much information we came to know the latest happening in the world (of course in details), yeah you are right even the internet .
We can take the example of banking. It is very to transact any amount of money from part of the world to other with help of e-commerce. We can purchase anything online with help of debit and credit cards. This has made our lives more and more simple.
Now days if we want to buy to something and are not getting it nearby store then we can simply search for that thing on internet and then order it on the internet. We will get it delivered at our doorstep with just few clicks of mouse. Similarly if we want to travel around the world we can book airline tickets online and even book rooms for our hotels (of course at competitive rates). People are working on the internet without really having to go outside to their workplace.
Companies can share technologies online. Even the doctors can guide the other doctors while operating on a patient with the help of Information Technology.
A whole new world is coming in our way.
E-Commerce
Electronic commerce, commonly known as (electronic marketing) e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.
A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web.
Electronic commerce that is conducted between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.
Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce.
On the consumer level, electronic commerce is mostly conducted on the World Wide Web. An individual can go online to purchase anything from books or groceries, to expensive items like real estate. Another example would be online banking, i.e. online bill payments, buying stocks, transferring funds from one account to another, and initiating wire payment to another country. All of these activities can be done with a few strokes of the keyboard.
On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce today.
My role within this environment
Electronic commerce is here to stay. No matter how big the dot-com crisis was or how far the e-entrepreneurs' shares fell in the market, the fact remains that there is still confidence in electronic trading. At least it would appear that investors are confident in e-companies again.
However, not only trust of venture capitalists is of importance -- consumers also have to have faith in on-line business. After all, without consumers there is no e-business. Interacting lawyers, technicians and economists are needed to create a trustworthy electronic commerce environment.
To achieve this environment, thorough and inter-disciplinary research is required and that is exactly what this book is about. Researchers of the project Enabling Electronic Commerce from the Dutch universities of Tilburg and Eindhoven have chosen a number of e-topics to elaborate on trust from their point of view.
This volume makes clear that the various disciplines can and will play a role in developing conditions for trust and thus contribute to a successful electronic market.
How can the principles of information organization and representation help you in performing this role?
The quality of "findability" is the ability of a user to find the information they need, regardless of whether he or she has touched it before, knows exactly where it is, or knows in which repository it resides. To manage unstructured content effectively and efficiently, it must be organized. Structure is needed to address the underlying challenge of managing content.
It helps me to...
Understand my content
The first step in coming to grips with content in any organization is to clarify your business goals. What exactly are they? Why do you need to organize this data? What strategic goal will it achieve? This basic question is often overlooked when starting a project. If there is no legitimate business reason to add metadata or build an enterprise-wide taxonomy or business classification scheme, then doing so is nothing more than a waste of money.
Get it organized. To organize information, we use a sequential process. The steps are as follows: hypothesis, audit, inventory, analyze, clean up and enrich, reorganize, and migrate. Going through each of these steps one at a time will help you achieve your goals quickly and efficiently.
Analysis, cleanup, and enrich. During the inventory you should begin to identify groups of information that belong together, such as invoices, contracts, case files, etc. You should start to capture those attributes in the form of various fields of metadata that can be added to the inventory list. This can be metadata that helps you identify, structure, or administer an object. Every bit of metadata added to an object takes time and money, so its purpose must be extremely well defined and thought through. There is no substitute for a clear metadata strategy.
Reorganize and migrate. This step is where you decide what information is relevant and should be moved into the new environment, grouping together what belongs together and migrating it from the chaotic environment that you’ve been working in to an organized and logical environment.
Establishing virtual personas
An effective means of dealing with the challenge of identifying user groups and understanding their needs is to create virtual “personas”. These are fictitious characters created to represent each of the user types within your organization, distinguished by the way they approach and consume information. These personas should be realistic and bestowed with as much detail as necessary to mimic the needs of the actual user groups.
Don’t get lost in the process
An important caveat: Don’t lose sight of the fact that information is only part of the overall user experience and it’s important not to get lost in organizing data for its own sake. Searching is one way to retrieve information and get access to it. No search engine by itself, however, will provide the perfect solution and meet the needs of all users at the same time without some careful tuning and without considering some of the alternatives and different kinds of search.
What are the challenges facing you in performing the role? How will you address these challenges?
Protecting Online Privacy
As the network technology we utilize becomes more advanced so do the security issues surrounding these technologies. Evolving from the days of "sneaker net" to gigabit ethernet has introduced seemingly infinite risks associated with our public and private networks.
The Web can be a dangerous place for consumers and businesses. One recent report says credit card fraud is now 12 times higher online than in-store, while another report pegs online fraud at four times the old-fashioned kind. No matter how you slice it, that’s a pretty scary statistic.
But we must also realize that the Web is driving double-digit sales growth and that online fraud still accounts for less than 1.2 cents out of every dollar spent online. As IT professionals, do we have a challenge managing Web security? Yes, we do, but it’s manageable.
Ease of use, flexibility and economy need to be built into the way we manage Web commerce risk. Today, the customer is asked to provide several layers of information for authentication: user ID, password, credit card number and possibly other identifying information such as his or her date of birth, address or zip code. If this information checks out with the credit card company and the business, the customer is allowed to complete the transaction.
But the natural corollary to all these layers of authentication is that consumers are wary of the Web. They know that a social security number entered online could wind up in an identity thief’s hands. They know that a phone number or e-mail address given for “questions about your order” could quickly turn into dinnertime sales pitches or junk e-mails flooding their inboxes. And they want it to stop.
Lack of Confidence Costs
Have you ever considered what you’re losing in online business by not managing security better? It’s estimated that electronic commerce would double if people had greater confidence that their privacy was protected on the Web. In fact, the lack of confidence in privacy outpaces all other concerns--including price and ease of use--in inhibiting people from buying on the Web.
Harris Interactive says 70 percent of consumers worry that their online transactions aren’t secure, and 75 percent are concerned that companies will share their personal information with others. Those fears reduced U.S. online purchasing by $15 billion last year, according to the latest consumer research.
The biggest mistake IT professionals make in assessing Web security is focusing on the challenge and not looking at the business opportunity. If you help build online relationships with customers based on trust, they will ask you to add them to your mailing lists, they will want you to recommend products from marketing partners, and they will stick by you forever.
Solution…
Privacy is the number one concern of Internet users; it is also the top reason why non-users still avoid the Internet. Survey after survey indicates mounting concern. While privacy faces threats from both private and government intrusions, the existing motley patchwork of privacy laws and practices fails to provide comprehensive protection. Instead, it causes confusion that fuels a sense of distrust and skepticism, limiting realization of the Internet's potential.
A unique combination of tools -- legal, technical, and self-regulatory -- is being designed to address the privacy concerns of Internet users. Top-priority objectives include setting limits on government access to personal information, ensuring that new information and communication technologies are designed in ways that protect rather than diminish privacy, and developing appropriate federal legislation to set baseline standards for consumer privacy. This guide is intended to educate Internet users about online privacy, and offer practical suggestions and policy recommendations.
Ways to Protect Your Privacy Online
• Learn how to read online privacy policies
• Opt-out and use any other privacy options offered
• Get a separate account for your personal e-mail
• Teach your kids not to give out personal information online without permission
• Be careful when using social networking sites and picture/video sharing sites
• Learn about - and use - the privacy features in your browser
• Make sure that online transactions are secure
• Learn how to spot phishing and other scams
• Reject or delete unnecessary cookies
• Use security software and promptly install security upgrades
• Safeguard important files and communications
• Use anonymizer tools, but cautiously
• Use strong passwords and protect them
• Use common sense
References:
http://www.ebizq.net/topics/ecm/features/1695.html?page=2
http://en.wikipedia.org/wiki/Electronic_commerce#Business_applications
MIS: Assignment 8
As a student, I were invited by the Dean of the Institute of Computing to attend a seminar-workshop on information systems planning with some of the faculty members. In one of the sessions, a discussion of outsourcing came up. I have been asked to present your evaluation about outsourcing the information systems functions of the school.
If the Dean of the Institute of Computing will invite me to attend a seminar-workshop these are the things that I will present in my evaluation about outsourcing the information systems functions of the school:
Outsourcing is subcontracting a service such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering cost or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources.
Outsourcing has assumed strongly negative connotations in certain circles. To some, outsourcing today means low-cost labour, performing low-value work in substandard or even exploitative conditions. When combined with offshoring, outsourcing has led to rising unemployment and other economic and social ills. Outsourcing and offshoring have become symbols of globalisation’s adverse side effects, and so both practices have become politically volatile.
Reasons for outsourcing
Organizations that outsource are seeking to realize benefits or address the following issues:
• Cost savings. The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations.[15]
• Focus on Core Business. Resources (for example investment, people, infrastructure) are focused on developing the core business. For example often organizations outsource their IT support to specilaised IT services companies.
• Cost restructuring. Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from fixed to variable cost and also by making variable costs more predictable.
• Improve quality. Achieve a step change in quality through contracting out the service with a new service level agreement.
• Knowledge. Access to intellectual property and wider experience and knowledge.[16]
• Contract. Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.[17]
• Operational expertise. Access to operational best practice that would be too difficult or time consuming to develop in-house.
• Access to talent. Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.[4][18]
• Capacity management. An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
• Catalyst for change. An organization can use an outsourcing agreement as a catalyst for major step change that can not be achieved alone. The outsourcer becomes a Change agent in the process.
• Enhance capacity for innovation. Companies increasingly use external knowledge service providers to supplement limited in-house capacity for product innovation.[19][20]
• Reduce time to market. The acceleration of the development or production of a product through the additional capability brought by the supplier.
• Risk management. An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.[21]
• Venture Capital. Some countries match government funds venture capital with private venture capital for startups that start businesses in their country.[1]
• Tax Benefit. Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country.
Drawbacks of Outsourcing
Outsourcing can provide considerable benefits to your company. However, there are definitely a number of drawbacks that you need to be aware of in order to make a good assessment:
• Management & Control Problems
Effectively managing the operation of a department within your own company is challenging enough. Effectively controlling an offshore operation is difficult due to the geographical distance, time-zone difference, and lack of face-to-face communication.
• Failure to Deliver
With external sources, you are trusting a third party to deliver a certain quantity/quality of deliverables. Should your provider fail to deliver, you are likely to suffer the consequences despite the Service Level Agreements (SLAs) you had in place.
• Exposure
Outsourcing exposes a certain part of your business to a third party. Unless you completely shield your offshore operation, you might expose your company to a breech of confidentiality, malicious use of system access, and other vulnerabilities in your organization.
• Negative Reputation
Outsourcing has gained a negative reputation and even though studies have proven otherwise, the general public opinion remains that offshoring eliminates domestic jobs. Your employees, clients, and partners might not appreciate the fact that you are offshoring certain business processes especially if that means that you are terminating a part of your domestic operation.
• Company Value
The major risk of outsourcing is that you may not be building the value of your company in terms of personnel, in-house knowledge, and infrastructure. In this case, the value of an outsourcing agreement with a provider will be less effective than an internal department.
If I had to take a position I would choose in-sourcing.
In-Sourcing is the opposite of outsourcing; that is in sourcing (or contracting in) is often defined as the delegation of operations or jobs from production within a business to an internal (but 'stand-alone') entity that specializes in that operation. In sourcing is a business decision that is often made to maintain control of critical production or competencies. An alternate use of the term implies transferring jobs to within the country where the term is used, either by hiring local subcontractors or building a facility.
Why Insource?
Insourcing can also reduce variability and help the manufacturer develop and test line extensions with a higher degree of security than with outsourcing. A manufacturer’s response to a crisis, such as tampering, destruction, or compromise, can also be quicker than if its goods are with an outsourcer. However, both insourcing and outsourcing can help an OEM recover from catastrophes, or alleviate short- or long-term capacity issues.
Insourcers can also enjoy improved responsiveness over contract partners. Because they are closer to their customers, insourcers can react more quickly than those that are simply managing a larger supply chain. With the control of insourcing, relationships can be leveraged for additional cost savings. Insourcing is particularly suited for noncommodity products, because companies can provide competitive quotes and lower their cost of goods sold. Finally, if companies do not achieve quality enhancements through outsourcing, they should consider keeping control in-house.
There are cost benefits to insourcing, of course. Average salaries and benefits for qualified staff in Manila are about a third of market rates in other major cities throughout the world, and even lower than high-cost jurisdictions, such as London and New York.
Rents, utilities and other fixed costs are also more affordable in Manila, and they are expected to remain so for the foreseeable future.
As a result, the firm’s global marketing team saves more than half a million dollars annually by doing most of its graphic design and desktop publishing work in Manila. In addition, we have realised similar savings by consolidating much of our software-development work globally in GSM.
Advantages of In-Sourcing
• Substantial cost savings
• Increased Professional Resources
• Direct Management
• Reduced Operational Expenses
• Extended Productivity Hours
What about Outsourcing?
The quick answer to the outsourcing question used to be cost reductions. This still holds true for certain products and contexts. With the right partner, outsourcing can provide significant production scale without capital investment.
For small companies with limited access to capital, outsourcing provides a means to manage cash flow and inventories. Outsourcing is a good option for commodity manufacture, because third parties can offer economies of scale that individual companies cannot reach on their own.
The benefits of minimal capital investment and cash flow, however, may be offset by the increased inventory needed to support the long lead times inherent in outsourced manufacturing.
Managing outsource partners may result in greater personnel costs and a loss of flexibility and control. It’s also important to understand the implications of outsourcing for inventory and cash flow management. A common issue is deciding when an OEM should pay for its product (upon receipt, ex-works, etc.).
In fact, industry experts note that a key factor driving insourcing has been the failure of outsourcing to achieve the consistent, long-term, and significant cost savings that clients anticipate.3
Estimates from Compass Sourcing Services indicate that large outsourcing contracts show, on average, a cost reduction of 15% in the first 18 months of the agreement. However, experts also say that because of growing demand for services and sales charges of many outsourcing contracts, the client’s costs are often 30% higher than those of a well-managed internal operation by the end of the term.3
Another possible drawback of outsourcing material is quality. Although this problem is alleviated by choosing an outsourcer that emphasizes quality, there is a risk that the quality of the product will not meet the expectations of the manufacturer.
There are three key issues to balance in making the decision to outsource or insource manufacturing, as follows:
• The complexity of the product design. Commodity-type products can benefit from the economies of scale and purchasing power of their contract manufacturers.
• The maturity of the product design. Companies should be cautious about outsourcing brand-new products.
• The stability of the market need. Allowing the product and the market to stabilize before considering an outsourcing partner helps ensure a successful transition.
Products that may require future improvements or updates to address market needs may be difficult to outsource because partners may be unwilling to share in the cost of production changes. Depending on the lead times for manufacture, the volume of in-process inventory may be significant. Finally, OEMs must make sure that partners are willing to alter their processes to accommodate individual needs.
For success in outsourcing, it is critical to pick the right partner. No contract is bulletproof. It is important to understand that unexpected things will happen. OEMs must put plans in place to be ready to manage them when they do. Unforeseen changes in ownership or management can seriously alter a partnership and the terms of supply, price, and quality.
What is best for the organization?
If the organization has a number of non-core processes which are taking plenty of time, effort and resources to perform in-house, it would be wise to outsource these non-core functions. Outsourcing in this case, would help you save on time, effort, manpower and would also aid you in making quicker deliveries to your customers.
If the require expertise services in areas which do not fall under your core competency, then outsourcing will be a good option as you can get access to expertise services. For reducing costs and making faster deliverables, outsourcing is again a good option.
If the work involves production, then it would be more ideal for your organization to opt for insourcing, as you can save on transportation costs and exercise a better control over your project.
It is not necessary to choose outsourcing over insourcing or vice versa. The organization can outsource and insource at the same time. By outsourcing and insourcing simultaneously, you can have the best of what both offers and your business can get a competitive advantage!
References:
http://www.in-source.com/benefit.html
http://www.devicelink.com/mddi/archive/07/03/027.html
If the Dean of the Institute of Computing will invite me to attend a seminar-workshop these are the things that I will present in my evaluation about outsourcing the information systems functions of the school:
Outsourcing is subcontracting a service such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering cost or making better use of time and energy costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources.
Outsourcing has assumed strongly negative connotations in certain circles. To some, outsourcing today means low-cost labour, performing low-value work in substandard or even exploitative conditions. When combined with offshoring, outsourcing has led to rising unemployment and other economic and social ills. Outsourcing and offshoring have become symbols of globalisation’s adverse side effects, and so both practices have become politically volatile.
Reasons for outsourcing
Organizations that outsource are seeking to realize benefits or address the following issues:
• Cost savings. The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations.[15]
• Focus on Core Business. Resources (for example investment, people, infrastructure) are focused on developing the core business. For example often organizations outsource their IT support to specilaised IT services companies.
• Cost restructuring. Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from fixed to variable cost and also by making variable costs more predictable.
• Improve quality. Achieve a step change in quality through contracting out the service with a new service level agreement.
• Knowledge. Access to intellectual property and wider experience and knowledge.[16]
• Contract. Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.[17]
• Operational expertise. Access to operational best practice that would be too difficult or time consuming to develop in-house.
• Access to talent. Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering.[4][18]
• Capacity management. An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
• Catalyst for change. An organization can use an outsourcing agreement as a catalyst for major step change that can not be achieved alone. The outsourcer becomes a Change agent in the process.
• Enhance capacity for innovation. Companies increasingly use external knowledge service providers to supplement limited in-house capacity for product innovation.[19][20]
• Reduce time to market. The acceleration of the development or production of a product through the additional capability brought by the supplier.
• Risk management. An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation.[21]
• Venture Capital. Some countries match government funds venture capital with private venture capital for startups that start businesses in their country.[1]
• Tax Benefit. Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country.
Drawbacks of Outsourcing
Outsourcing can provide considerable benefits to your company. However, there are definitely a number of drawbacks that you need to be aware of in order to make a good assessment:
• Management & Control Problems
Effectively managing the operation of a department within your own company is challenging enough. Effectively controlling an offshore operation is difficult due to the geographical distance, time-zone difference, and lack of face-to-face communication.
• Failure to Deliver
With external sources, you are trusting a third party to deliver a certain quantity/quality of deliverables. Should your provider fail to deliver, you are likely to suffer the consequences despite the Service Level Agreements (SLAs) you had in place.
• Exposure
Outsourcing exposes a certain part of your business to a third party. Unless you completely shield your offshore operation, you might expose your company to a breech of confidentiality, malicious use of system access, and other vulnerabilities in your organization.
• Negative Reputation
Outsourcing has gained a negative reputation and even though studies have proven otherwise, the general public opinion remains that offshoring eliminates domestic jobs. Your employees, clients, and partners might not appreciate the fact that you are offshoring certain business processes especially if that means that you are terminating a part of your domestic operation.
• Company Value
The major risk of outsourcing is that you may not be building the value of your company in terms of personnel, in-house knowledge, and infrastructure. In this case, the value of an outsourcing agreement with a provider will be less effective than an internal department.
If I had to take a position I would choose in-sourcing.
In-Sourcing is the opposite of outsourcing; that is in sourcing (or contracting in) is often defined as the delegation of operations or jobs from production within a business to an internal (but 'stand-alone') entity that specializes in that operation. In sourcing is a business decision that is often made to maintain control of critical production or competencies. An alternate use of the term implies transferring jobs to within the country where the term is used, either by hiring local subcontractors or building a facility.
Why Insource?
Insourcing can also reduce variability and help the manufacturer develop and test line extensions with a higher degree of security than with outsourcing. A manufacturer’s response to a crisis, such as tampering, destruction, or compromise, can also be quicker than if its goods are with an outsourcer. However, both insourcing and outsourcing can help an OEM recover from catastrophes, or alleviate short- or long-term capacity issues.
Insourcers can also enjoy improved responsiveness over contract partners. Because they are closer to their customers, insourcers can react more quickly than those that are simply managing a larger supply chain. With the control of insourcing, relationships can be leveraged for additional cost savings. Insourcing is particularly suited for noncommodity products, because companies can provide competitive quotes and lower their cost of goods sold. Finally, if companies do not achieve quality enhancements through outsourcing, they should consider keeping control in-house.
There are cost benefits to insourcing, of course. Average salaries and benefits for qualified staff in Manila are about a third of market rates in other major cities throughout the world, and even lower than high-cost jurisdictions, such as London and New York.
Rents, utilities and other fixed costs are also more affordable in Manila, and they are expected to remain so for the foreseeable future.
As a result, the firm’s global marketing team saves more than half a million dollars annually by doing most of its graphic design and desktop publishing work in Manila. In addition, we have realised similar savings by consolidating much of our software-development work globally in GSM.
Advantages of In-Sourcing
• Substantial cost savings
• Increased Professional Resources
• Direct Management
• Reduced Operational Expenses
• Extended Productivity Hours
What about Outsourcing?
The quick answer to the outsourcing question used to be cost reductions. This still holds true for certain products and contexts. With the right partner, outsourcing can provide significant production scale without capital investment.
For small companies with limited access to capital, outsourcing provides a means to manage cash flow and inventories. Outsourcing is a good option for commodity manufacture, because third parties can offer economies of scale that individual companies cannot reach on their own.
The benefits of minimal capital investment and cash flow, however, may be offset by the increased inventory needed to support the long lead times inherent in outsourced manufacturing.
Managing outsource partners may result in greater personnel costs and a loss of flexibility and control. It’s also important to understand the implications of outsourcing for inventory and cash flow management. A common issue is deciding when an OEM should pay for its product (upon receipt, ex-works, etc.).
In fact, industry experts note that a key factor driving insourcing has been the failure of outsourcing to achieve the consistent, long-term, and significant cost savings that clients anticipate.3
Estimates from Compass Sourcing Services indicate that large outsourcing contracts show, on average, a cost reduction of 15% in the first 18 months of the agreement. However, experts also say that because of growing demand for services and sales charges of many outsourcing contracts, the client’s costs are often 30% higher than those of a well-managed internal operation by the end of the term.3
Another possible drawback of outsourcing material is quality. Although this problem is alleviated by choosing an outsourcer that emphasizes quality, there is a risk that the quality of the product will not meet the expectations of the manufacturer.
There are three key issues to balance in making the decision to outsource or insource manufacturing, as follows:
• The complexity of the product design. Commodity-type products can benefit from the economies of scale and purchasing power of their contract manufacturers.
• The maturity of the product design. Companies should be cautious about outsourcing brand-new products.
• The stability of the market need. Allowing the product and the market to stabilize before considering an outsourcing partner helps ensure a successful transition.
Products that may require future improvements or updates to address market needs may be difficult to outsource because partners may be unwilling to share in the cost of production changes. Depending on the lead times for manufacture, the volume of in-process inventory may be significant. Finally, OEMs must make sure that partners are willing to alter their processes to accommodate individual needs.
For success in outsourcing, it is critical to pick the right partner. No contract is bulletproof. It is important to understand that unexpected things will happen. OEMs must put plans in place to be ready to manage them when they do. Unforeseen changes in ownership or management can seriously alter a partnership and the terms of supply, price, and quality.
What is best for the organization?
If the organization has a number of non-core processes which are taking plenty of time, effort and resources to perform in-house, it would be wise to outsource these non-core functions. Outsourcing in this case, would help you save on time, effort, manpower and would also aid you in making quicker deliveries to your customers.
If the require expertise services in areas which do not fall under your core competency, then outsourcing will be a good option as you can get access to expertise services. For reducing costs and making faster deliverables, outsourcing is again a good option.
If the work involves production, then it would be more ideal for your organization to opt for insourcing, as you can save on transportation costs and exercise a better control over your project.
It is not necessary to choose outsourcing over insourcing or vice versa. The organization can outsource and insource at the same time. By outsourcing and insourcing simultaneously, you can have the best of what both offers and your business can get a competitive advantage!
References:
http://www.in-source.com/benefit.html
http://www.devicelink.com/mddi/archive/07/03/027.html
MIS: Assignment 7
On the assumption that you heard/read the SONA of the President last month, (July 2000), identify at least 3 areas related to ICT and identify how these areas can improve our quality of life.
Last July 27,2009 Gloria Macapagal- Arroyo’s SONA for 2009 was delivered at the joint session of the Congress of the Philippines. And the president cited areas that are related to Information and Communications Technology (ICT) . By the way, ICT (Information and Communication Technologies) is an umbrella term that covers all advanced technologies in manipulating and communicating information. The term is sometimes used in preference to information technology (IT), particularly on these two communities: education and government.
Here are some of the areas related to ICT that was stated by our President Arroyo during her SONA:
Telecommunications
“In telecommunications, I instructed the Telecommunications Commission to
act already on the complaints of dropped calls and disappearing loads in
cellphones. We need to amend the Commonwealth-era Public Service Law.
And we need to do it now.”
The main issue was on a sudden load deduction without service being availed or used by the user. This problem was quite a big deal for the people hence, almost all the Filipino has an access and on the use of mobile technology, although I don’t have one. As far as the development of this issue is concern, the congress had made the action to investigate this issue with the telecommunications company. To date, the bill was made into reality; it is clear then with Telecommunications Company and to the people how there services will cope up and respond to the trend of the issue.
BPO
“If in the past electronics flourished, today we are creating wealth by
developing the business process outsourcing (BPO) and tourism sectors as
additional engines of growth. Electronics and other manufactured exports rise
and fall in accordance with the state of the world economy. But BPO remains
resilient. With earnings of $6 billion and employment of 600,000, the BPO
phenomenon speaks eloquently of our competitiveness and productivity.”
The Arroyo Administration’s strategic foresight of using information technology to advantage early on, built the necessary physical and regulatory infrastructure that enabled the Services Sector particularly the Philippine Business Process Outsourcing (BPO) industry, to become one of the main economic growth drivers of the country. The growth in the BPO also improved the country’s Balance of Payments (BOP) and investments.
One of the most important advantages of BPO is the way in which it helps to increase a company’s flexibility. However, several sources have different ways in which they perceive organizational flexibility. Therefore business process outsourcing enhances the flexibility of an organization in different ways.
Let us have a Department of Information and Communications Technology.
Creation of DICT
“Let us have a department of ICT (DICT)!”
Information and communications technology (ICT) is a big help to boost a country's overall competitiveness by improving the efficiency of production processes across sectors and industries, accelerating the growth of knowledge-based services, and empowering people to access unprecedented sources of information and markets,
The strategic importance of ICT to national development and competitiveness is undeniable. Through the establishment of DICT, and it further promote ICT in the country as a tool to create jobs, improve government services, and empower Filipinos.
References:
http://www.gmanews.tv/story/168382/PRESIDENT-ARROYOS-NINTHSTATE-OF-THE-NATION-ADDRESS
http://www.senate.gov.ph/press_release/2008/0603_angara1.asp
http://www.manilatimes.net/national/2009/july/03/yehey/top_stories/20090703top8.html
Last July 27,2009 Gloria Macapagal- Arroyo’s SONA for 2009 was delivered at the joint session of the Congress of the Philippines. And the president cited areas that are related to Information and Communications Technology (ICT) . By the way, ICT (Information and Communication Technologies) is an umbrella term that covers all advanced technologies in manipulating and communicating information. The term is sometimes used in preference to information technology (IT), particularly on these two communities: education and government.
Here are some of the areas related to ICT that was stated by our President Arroyo during her SONA:
Telecommunications
“In telecommunications, I instructed the Telecommunications Commission to
act already on the complaints of dropped calls and disappearing loads in
cellphones. We need to amend the Commonwealth-era Public Service Law.
And we need to do it now.”
The main issue was on a sudden load deduction without service being availed or used by the user. This problem was quite a big deal for the people hence, almost all the Filipino has an access and on the use of mobile technology, although I don’t have one. As far as the development of this issue is concern, the congress had made the action to investigate this issue with the telecommunications company. To date, the bill was made into reality; it is clear then with Telecommunications Company and to the people how there services will cope up and respond to the trend of the issue.
BPO
“If in the past electronics flourished, today we are creating wealth by
developing the business process outsourcing (BPO) and tourism sectors as
additional engines of growth. Electronics and other manufactured exports rise
and fall in accordance with the state of the world economy. But BPO remains
resilient. With earnings of $6 billion and employment of 600,000, the BPO
phenomenon speaks eloquently of our competitiveness and productivity.”
The Arroyo Administration’s strategic foresight of using information technology to advantage early on, built the necessary physical and regulatory infrastructure that enabled the Services Sector particularly the Philippine Business Process Outsourcing (BPO) industry, to become one of the main economic growth drivers of the country. The growth in the BPO also improved the country’s Balance of Payments (BOP) and investments.
One of the most important advantages of BPO is the way in which it helps to increase a company’s flexibility. However, several sources have different ways in which they perceive organizational flexibility. Therefore business process outsourcing enhances the flexibility of an organization in different ways.
Let us have a Department of Information and Communications Technology.
Creation of DICT
“Let us have a department of ICT (DICT)!”
Information and communications technology (ICT) is a big help to boost a country's overall competitiveness by improving the efficiency of production processes across sectors and industries, accelerating the growth of knowledge-based services, and empowering people to access unprecedented sources of information and markets,
The strategic importance of ICT to national development and competitiveness is undeniable. Through the establishment of DICT, and it further promote ICT in the country as a tool to create jobs, improve government services, and empower Filipinos.
References:
http://www.gmanews.tv/story/168382/PRESIDENT-ARROYOS-NINTHSTATE-OF-THE-NATION-ADDRESS
http://www.senate.gov.ph/press_release/2008/0603_angara1.asp
http://www.manilatimes.net/national/2009/july/03/yehey/top_stories/20090703top8.html
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