Vision An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future.

It is intended to serves as a clear guide for choosing current and future courses of action. See also mission statement. A hallucination, in the broadest sense of the word, is a perception in the absence of a stimulus. In a stricter sense, hallucinations are defined as perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception, in that they are vivid, substantial, and located in external objective space. The latter definition distinguishes hallucinations from the related phenomena of dreaming, which does not involve wakefulness; illusion, which involves distorted or misinterpreted real perception; imagery, which does not mimic real perception and is under voluntary control; and pseudohallucination, which does not mimic real perception, but is not under voluntary control. [1] Hallucinations also differ from "delusional perceptions", in which a correctly sensed and interpreted stimulus (i.e. a real perception) is given some additional (and typically bizarre) significance.Hallucinations can occur in any sensory modality visual, auditory, olfactory, gustatory, tactile, proprioceptive, equilibrioceptive, nociceptive, thermoceptive and chronoceptive.A mild form of hallucination is known as a disturbance, and can occur in any of the senses above. These may be things like seeing movement in peripheral vision, or hearing faint noises and/or voices. Auditory hallucinations are very common in paranoid schizophrenia. They may be benevolent (telling the patient good things about themselves) or malicious, cursing the patient etc. Auditory hallucinations of the malicious type are frequently heard like people talking about the patient behind their back. Like auditory hallucinations, the source of their visual counterpart can also be behind the patient's back. Their visual counterpart is the feeling of being looked-stared at, usually with malicious intent. Frequently, auditory hallucinations and their visual counterpart are experienced by the patient together.Hypnagogic hallucinations and hypnopompic hallucinations are considered normal phenomena. Hypnagogic hallucinations can occur as one is falling asleep and hypnopompic hallucinations occur when one is waking up. Mission Mission : defines the business , the needs of covering their products and services, the market in which it is developed and the public image of the company. Definition: A mission statement is a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?" The mission statement articulates the company's purpose both for those in the organization and for the public. For instance, the mission statement of Canadian Tire reads (in part): Canadian Tire is a growing network of interrelated businesses... Canadian

Tire continuously strives to meet the needs of its customers for total value by offering a unique package of location, price, service and assortment. The mission statement of Rivercorp, business development consultants in Campbell River, B.C., is: To provide one stop progressive economic development services through partnerships on behalf of shareholders and the community. As you see from these two examples, mission statements are as varied as the companies they describe. However, all mission statements will "broadly describe an organization's present capabilities, customer focus, activities, and business makeup" (Glossary, Strategic Management: Concepts and Cases by Fred David). The difference between a mission statement and a vision statement is that a mission statement focuses on a companys present state while a vision statement focuses on a companys future. Every business should have a mission statement, both as a way of ensuring that everyone in the organization is "on the same page" and to serve as a baseline for effective business planning. See How to Write a Mission Statement to learn how to write one of your own. Common Misspellings: Mision statement, misson statement. Examples: Slogans derived from some mission statements serve as the basis of successful ad campaigns, such as the B.C. Credit Unions' "people before profits" campaign. Objective A goal is a desired result an animal, person or a system envisions, plans and commits to achievea personal or organizational desired end-point in some sort of assumed development. Many people endeavor to reach goals within a finite time by setting deadlines.It is roughly similar to purpose or aim, the anticipated result which guides reaction, or an end, which is an object, either a physical object or an abstract object, that has intrinsic value. Goal-setting ideally involves establishing specific, measurable, attainable, realistic and time-targeted objectives.[1] Work on the goal-setting theory suggests that it can serve as an effective tool for making progress by ensuring that participants have a clear awareness of what they must do to achieve or help achieve an objective. On a personal level, the process of setting goals allows people to specify and then work towards their own objectives most commonly financial or career-based goals. Goal-setting comprises a major component of personal development. A goal can be longterm or short-term.Short-term goals expect accomplishment in a short period of time, such as trying to get a bill paid in the next few days. The definition of a short-term goal need not relate to any specific length of time. In other words, one may achieve (or fail to achieve) a short-term goal in a day, week, month, year, etc. The time-frame for a short-term goal relates to its context in the overall time line that it is being applied to. For instance, one could measure a short-term goal for a month-long project in days; whereas one might measure a short-term goal for someones lifetime in

months or in years. Planners usually define short-term goals in relation to a long-term goal or goals. Individuals can set personal goals. A student may set a goal of a high mark in an exam. An athlete might run five miles a day. A traveler might try to reach a destination-city within three hours. Financial goals are a common example, to save for retirement or to save for a purchase. Managing goals can give returns in all areas of personal life. Knowing precisely what one wants to achieve makes clear what to concentrate and improve on, and often subconsciously prioritizes that goal. Goal setting and planning ("goal work") promotes long-term vision and short-term motivation. It focuses intention, desire, acquisition of knowledge, and helps to organize resources. Efficient goal work includes recognizing and resolving all guilt, inner conflict or limiting belief that might cause one to sabotage one's efforts. By setting clearly defined goals, one can subsequently measure and take pride in the achievement of those goals. One can see progress in what might have seemed a long, perhaps impossible, grind. Achieving personal goals Achieving complex and difficult goals requires focus, long-term diligence and effort. Success in any field requires forgoing excuses and justifications for poor performance or lack of adequate planning; in short, success requires emotional maturity. The measure of belief that people have in their ability to achieve a personal goal also affects that achievement. Long term achievements rely on short-term achievements. Emotional control over the small moments of the single day makes a big difference in the long term. Internal analysis review of an organization's strengths and weaknesses that focuses on those factors within its domain. A detailed internal analysis will typically give a business a good sense of its basic competencies and the desirable improvements that it can make to help meet the requirements of potential customers within its intended market. The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets. Any analysis of company strengths should be market oriented/customer focused because strengths are only meaningful when they assist the firm in meeting customer needs. Weaknesses refer to any limitations a company faces in developing or implementing a strategy (?). Weaknesses should also be examined from a customer perspective because customers often perceive weaknesses that a company cannot see. SWOT Analysis SWOT is an acronym used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a

specific company. A SWOT analysis should not only result in the identification of a corporations core competencies, but also in the identification of opportunities that the firm is not currently able to take advantage of due to a lack of appropriate resources. (Wheelen, Hunger pg 107) The SWOT analysis framework has gained widespread acceptance because it is both simple and powerful for strategy development. However, like any planning tool, SWOT is only as good as the information it contains. Thorough market research and accurate information systems are essential for the SWOT analysis to identify key issues in the environment Analyzing external environment 1. Identify Market. 2. Identify environment factor (s). / Focus on factor (s) which most impact your business 3. Classify as threat or opportunity & estimate magnitude of threat/opportunity 4. Evaluate importance of factor and its impact on product/market Super premium branded disposable diapers for children in California Diaper Rash Market Special Occasion Market Versus Hospitals Daycare Operations Private Label Components of External Environment Competition Rivalry among competitors (Porter) Threat of new entrants (Porter) Threat of substitute products (Porter Market/Customers Size/Potential Growth Rate Seasonality Bargaining power of buyers (Porter) Sensitivity to price Industry Bargaining power of suppliers (Porter) Industry profitability Barriers to entry/exit Steps in Analyzing Environment 1. Identify factor 2. Focus on factor (s) which most impact your busineClassify as threat or opportunity & magnitude of threat/opportunityEvaluate importance of factor and its impact on product/market. Stratrgie formulation

INTRODUCTION It is useful to consider strategy formulation as part of a strategic management process that comprises three phases: diagnosis, formulation, and implementation. Strategic management is an ongoing process to develop and revise future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates. Diagnosis includes: (a) performing a situation analysis (analysis of the internal environment of the organization), including identification and evaluation of current mission, strategic objectives, strategies, and results, plus major strengths and weaknesses; (b) analyzing the organization's external environment, including major opportunities and threats; and (c) identifying the major critical issues, which are a small set, typically two to five, of major problems, threats, weaknesses, and/or opportunities that require particularly high priority attention by management. Formulation, the second phase in the strategic management process, produces a clear set of recommendations, with supporting justification, that revise as necessary the mission and objectives of the organization, and supply the strategies for accomplishing them. In formulation, we are trying to modify the current objectives and strategies in ways to make the organization more successful. This includes trying to create "sustainable" competitive advantages -- although most competitive advantages are eroded steadily by the efforts of competitors. A good recommendation should be: effective in solving the stated problem(s), practical (can be implemented in this situation, with the resources available), feasible within a reasonable time frame, costeffective, not overly disruptive, and acceptable to key "stakeholders" in the organization. It is important to consider "fits" between resources plus competencies with opportunities, and also fits between risks and expectations. There are four primary steps in this phase: * Reviewing the current key objectives and strategies of the organization, which usually would have been identified and evaluated as part of the diagnosis * Identifying a rich range of strategic alternatives to address the three levels of strategy formulation outlined below, including but not limited to dealing with the critical issues * Doing a balanced evaluation of advantages and disadvantages of the alternatives relative to their feasibility plus expected effects on the issues and contributions to the success of the organization * Deciding on the alternatives that should be implemented or recommended. In organizations, and in the practice of strategic management, strategies must be implemented to achieve the intended results. The most wonderful strategy in the history of the world is useless if not implemented

successfully. This third and final stage in the strategic management process involves developing an implementation plan and then doing whatever it takes to make the new strategy operational and effective in achieving the organization's objectives. The remainder of this chapter focuses on strategy formulation, and is organized into six sections: Three Aspects of Strategy Formulation, Corporate-Level Strategy, Competitive Strategy, Functional Strategy, Choosing Strategies, and Troublesome Strategies. THREE ASPECTS OF STRATEGY FORMULATION The following three aspects or levels of strategy formulation, each with a different focus, need to be dealt with in the formulation phase of strategic management. The three sets of recommendations must be internally consistent and fit together in a mutually supportive manner that forms an integrated hierarchy of strategy, in the order given. Corporate Level Strategy: In this aspect of strategy, we are concerned with broad decisions about the total organization's scope and direction. Basically, we consider what changes should be made in our growth objective and strategy for achieving it, the lines of business we are in, and how these lines of business fit together. It is useful to think of three components of corporate level strategy: (a) growth or directional strategy (what should be our growth objective, ranging from retrenchment through stability to varying degrees of growth - and how do we accomplish this), (b) portfolio strategy (what should be our portfolio of lines of business, which implicitly requires reconsidering how much concentration or diversification we should have), and (c) parenting strategy (how we allocate resources and manage capabilities and activities across the portfolio -- where do we put special emphasis, and how much do we integrate our various lines of business). Competitive Strategy (often called Business Level Strategy): This involves deciding how the company will compete within each line of business (LOB) or strategic business unit (SBU). Functional Strategy: These more localized and shorter-horizon strategies deal with how each functional area and unit will carry out its functional activities to be effective and maximize resource productivity. CORPORATE LEVEL STRATEGY This comprises the overall strategy elements for the corporation as a whole, the grand strategy, if you please. Corporate strategy involves four kinds of initiatives:

* Making the necessary moves to establish positions in different businesses and achieve an appropriate amount and kind of diversification. A key part of corporate strategy is making decisions on how many, what types, and which specific lines of business the company should be in. This may involve deciding to increase or decrease the amount and breadth of diversification. It may involve closing out some LOB's (lines of business), adding others, and/or changing emphasis among LOB's. * Initiating actions to boost the combined performance of the businesses the company has diversified into: This may involve vigorously pursuing rapid-growth strategies in the most promising LOB's, keeping the other core businesses healthy, initiating turnaround efforts in weak-performing LOB's with promise, and dropping LOB's that are no longer attractive or don't fit into the corporation's overall plans. It also may involve supplying financial, managerial, and other resources, or acquiring and/or merging other companies with an existing LOB. * Pursuing ways to capture valuable cross-business strategic fits and turn them into competitive advantages -- especially transferring and sharing related technology, procurement leverage, operating facilities, distribution channels, and/or customers. * Establishing investment priorities and moving more corporate resources into the most attractive LOB's. It is useful to organize the corporate level strategy considerations and initiatives into a framework with the following three main strategy components: growth, portfolio, and parenting. These are discussed in the next three sections. What Should be Our Growth Objective and Strategies? Growth objectives can range from drastic retrenchment through aggressive growth. Organizational leaders need to revisit and make decisions about the growth objectives and the fundamental strategies the organization will use to achieve them. There are forces that tend to push top decision-makers toward a growth stance even when a company is in trouble and should not be trying to grow, for example bonuses, stock options, fame, ego. Leaders need to resist such temptations and select a growth strategy stance that is appropriate for the organization and its situation. Stability and retrenchment strategies are underutilized. Some of the major strategic alternatives for each of the primary growth stances (retrenchment, stability, and growth) are summarized in the following three sub-sections. Growth Strategies

All growth strategies can be classified into one of two fundamental categories: concentration within existing industries or diversification into other lines of business or industries. When a company's current industries are attractive, have good growth potential, and do not face serious threats, concentrating resources in the existing industries makes good sense. Diversification tends to have greater risks, but is an appropriate option when a company's current industries have little growth potential or are unattractive in other ways. When an industry consolidates and becomes mature, unless there are other markets to seek (for example other international markets), a company may have no choice for growth but diversification. There are two basic concentration strategies, vertical integration and horizontal growth. Diversification strategies can be divided into related (or concentric) and unrelated (conglomerate) diversification. Each of the resulting four core categories of strategy alternatives can be achieved internally through investment and development, or externally through mergers, acquisitions, and/or strategic alliances -- thus producing eight major growth strategy categories. Comments about each of the four core categories are outlined below, followed by some key points about mergers, acquisitions, and strategic alliances. 1. Vertical Integration: This type of strategy can be a good one if the company has a strong competitive position in a growing, attractive industry. A company can grow by taking over functions earlier in the value chain that were previously provided by suppliers or other organizations ("backward integration"). This strategy can have advantages, e.g., in cost, stability and quality of components, and making operations more difficult for competitors. However, it also reduces flexibility, raises exit barriers for the company to leave that industry, and prevents the company from seeking the best and latest components from suppliers competing for their business. A company also can grow by taking over functions forward in the value chain previously provided by final manufacturers, distributors, or retailers ("forward integration"). This strategy provides more control over such things as final products/services and distribution, but may involve new critical success factors that the parent company may not be able to master and deliver. For example, being a world-class manufacturer does not make a company an effective retailer. Some writers claim that backward integration is usually more profitable than forward integration, although this does not have general support. In any case, many companies have moved toward less vertical integration (especially backward, but also forward) during the last decade or so, replacing significant amounts of previous vertical integration with outsourcing and various forms of strategic alliances.

2. Horizontal Growth: This strategy alternative category involves expanding the company's existing products into other locations and/or market segments, or increasing the range of products/services offered to current markets, or a combination of both. It amounts to expanding sideways at the point(s) in the value chain that the company is currently engaged in. One of the primary advantages of this alternative is being able to choose from a fairly continuous range of choices, from modest extensions of present products/markets to major expansions -- each with corresponding amounts of cost and risk. 3. Related Diversification (aka Concentric Diversification): In this alternative, a company expands into a related industry, one having synergy with the company's existing lines of business, creating a situation in which the existing and new lines of business share and gain special advantages from commonalities such as technology, customers, distribution, location, product or manufacturing similarities, and government access. This is often an appropriate corporate strategy when a company has a strong competitive position and distinctive competencies, but its existing industry is not very attractive. 4. Unrelated Diversification (aka Conglomerate Diversification): This fourth major category of corporate strategy alternatives for growth involves diversifying into a line of business unrelated to the current ones. The reasons to consider this alternative are primarily seeking more attractive opportunities for growth in which to invest available funds (in contrast to rather unattractive opportunities in existing industries), risk reduction, and/or preparing to exit an existing line of business (for example, one in the decline stage of the product life cycle). Further, this may be an appropriate strategy when, not only the present industry is unattractive, but the company lacks outstanding competencies that it could transfer to related products or industries. However, because it is difficult to manage and excel in unrelated business units, it can be difficult to realize the hoped-for value added. Mergers, Acquisitions, and Strategic Alliances: Each of the four growth strategy categories just discussed can be carried out internally or externally, through mergers, acquisitions, and/or strategic alliances. Of course, there also can be a mixture of internal and external actions. Various forms of strategic alliances, mergers, and acquisitions have emerged and are used extensively in many industries today. They are used particularly to bridge resource and technology gaps, and to obtain expertise and market positions more quickly than could be done through internal development. They are particularly necessary and potentially useful when a company wishes to enter a new industry, new markets, and/or new parts of the world.

Despite their extensive use, a large share of alliances, mergers, and acquisitions fall far short of expected benefits or are outright failures. For example, one study published in Business Week in 1999 found that 61 percent of alliances were either outright failures or "limping along." Research on mergers and acquisitions includes a Mercer Management Consulting study of all mergers from 1990 to 1996 which found that nearly half "destroyed" shareholder value; an A. T. Kearney study of 115 multibillion-dollar, global mergers between 1993 and 1996 where 58 percent failed to create "substantial returns for shareholders" in the form of dividends and stock price appreciation; and a Price-Waterhouse-Coopers study of 97 acquisitions over $500 million from 1994 to 1997 in which twothirds of the buyer's stocks dropped on announcement of the transaction and a third of these were still lagging a year later. Many reasons for the problematic record have been cited, including paying too much, unrealistic expectations, inadequate due diligence, and conflicting corporate cultures; however, the most powerful contributor to success or failure is inadequate attention to the merger integration process. Although the lawyers and investment bankers may consider a deal done when the papers are signed and they receive their fees, this should be merely an incident in a multi-year process of integration that began before the signing and continues far beyond. Stability Strategies There are a number of circumstances in which the most appropriate growth stance for a company is stability, rather than growth. Often, this may be used for a relatively short period, after which further growth is planned. Such circumstances usually involve a reasonable successful company, combined with circumstances that either permit a period of comfortable coasting or suggest a pause or caution. Three alternatives are outlined below, in which the actual strategy actions are similar, but differing primarily in the circumstances motivating the choice of a stability strategy and in the intentions for future strategic actions. 1. Pause and Then Proceed: This stability strategy alternative (essentially a timeout) may be appropriate in either of two situations: (a) the need for an opportunity to rest, digest, and consolidate after growth or some turbulent events - before continuing a growth strategy, or (b) an uncertain or hostile environment in which it is prudent to stay in a "holding pattern" until there is change in or more clarity about the future in the environment. 2. No Change: This alternative could be a cop-out, representing indecision or timidity in making a choice for change. Alternatively, it may be a comfortable, even long-term strategy in a mature, rather stable environment, e.g., a small business in a small town with few competitors.

3. Grab Profits While You Can: This is a non-recommended strategy to try to mask a deteriorating situation by artificially supporting profits or their appearance, or otherwise trying to act as though the problems will go away. It is an unstable, temporary strategy in a worsening situation, usually chosen either to try to delay letting stakeholders know how bad things are or to extract personal gain before things collapse. Recent terrible examples in the USA are Enron and WorldCom. Retrenchment Strategies Turnaround: This strategy, dealing with a company in serious trouble, attempts to resuscitate or revive the company through a combination of contraction (general, major cutbacks in size and costs) and consolidation (creating and stabilizing a smaller, leaner company). Although difficult, when done very effectively it can succeed in both retaining enough key employees and revitalizing the company. Captive Company Strategy: This strategy involves giving up independence in exchange for some security by becoming another company's sole supplier, distributor, or a dependent subsidiary. Sell Out: If a company in a weak position is unable or unlikely to succeed with a turnaround or captive company strategy, it has few choices other than to try to find a buyer and sell itself (or divest, if part of a diversified corporation). Liquidation: When a company has been unsuccessful in or has none of the previous three strategic alternatives available, the only remaining alternative is liquidation, often involving a bankruptcy. There is a modest advantage of a voluntary liquidation over bankruptcy in that the board and top management make the decisions rather than turning them over to a court, which often ignores stockholders' interests. What Should Be Our Portfolio Strategy? This second component of corporate level strategy is concerned with making decisions about the portfolio of lines of business (LOB's) or strategic business units (SBU's), not the company's portfolio of individual products. Portfolio matrix models can be useful in reexamining a company's present portfolio. The purpose of all portfolio matrix models is to help a company understand and consider changes in its portfolio of businesses, and also to think about allocation of resources among the different business elements. The two primary models are the BCG Growth-Share Matrix and the GE Business Screen (Porter, 1980, has a good summary of these). These models consider and display on a two-dimensional graph each major

SBU in terms of some measure of its industry attractiveness and its relative competitive strength The BCG Growth-Share Matrix model considers two relatively simple variables: growth rate of the industry as an indication of industry attractiveness, and relative market share as an indication of its relative competitive strength. The GE Business Screen, also associated with McKinsey, considers two composite variables, which can be customized by the user, for (a) industry attractiveness (e.g, one could include industry size and growth rate, profitability, pricing practices, favored treatment in government dealings, etc.) and (b) competitive strength (e.g., market share, technological position, profitability, size, etc.) The best test of the business portfolio's overall attractiveness is whether the combined growth and profitability of the businesses in the portfolio will allow the company to attain its performance objectives. Related to this overall criterion are such questions as: * Does the portfolio contain enough businesses in attractive industries? * Does it contain too many marginal businesses or question marks? * Is the proportion of mature/declining businesses so great that growth will be sluggish? * Are there some businesses that are not really needed or should be divested? * Does the company have its share of industry leaders, or is it burdened with too many businesses in modest competitive positions? * Is the portfolio of SBU's and its relative risk/growth potential consistent with the strategic goals? * Do the core businesses generate dependable profits and/or cash flow? * Are there enough cash-producing businesses to finance those needing cash * Is the portfolio overly vulnerable to seasonal or recessionary influences? * Does the portfolio put the corporation in good position for the future? It is important to consider diversification vs. concentration while working on portfolio strategy, i.e., how broad or narrow should be the scope of the company. It is not always desirable to have a broad scope. Singlebusiness strategies can be very successful (e.g., early strategies of McDonald's, Coca-Cola, and BIC Pen). Some of the advantages of a narrow scope of business are: (a) less ambiguity about who we are and what we do; (b) concentrates the efforts of the total organization, rather than stretching them across many lines of business; (c) through extensive hands-on experience, the company is more likely to develop distinctive competence; and (d) focuses on long-term profits. However, having a

single business puts "all the eggs in one basket," which is dangerous when the industry and/or technology may change. Diversification becomes more important when market growth rate slows. Building stable shareholder value is the ultimate justification for diversifying -- or any strategy. Generic strategies Michael Porter has described a category scheme consisting of three general types of strategies that are commonly used by businesses to achieve and maintain competitive advantage. These three generic strategies are defined along two dimensions: strategic scope and strategic strength. Strategic scope is a demand-side dimension (Michael E. Porter was originally an engineer, then an economist before he specialized in strategy) and looks at the size and composition of the market you intend to target. Strategic strength is a supply-side dimension and looks at the strength or core competency of the firm. In particular he identified two competencies that he felt were most important: product differentiation and product cost (efficiency). He originally ranked each of the three dimensions (level of differentiation, relative product cost, and scope of target market) as either low, medium, or high, and juxtaposed them in a three dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cube. But most of the 27 combinations were not viable. n his 1980 classic Competitive Strategy: Techniques for Analysing Industries and Competitors, Porter simplifies the scheme by reducing it down to the three best strategies. They are cost leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow in scope while both cost leadership and differentiation are relatively broad in market scope. Empirical research on the profit impact of marketing strategy indicated that firms with a high market share were often quite profitable, but so were many firms with low market share. The least profitable firms were those with moderate market share. This was sometimes referred to as the hole in the middle problem. Porters explanation of this is that firms with high market share were successful because they pursued a cost leadership strategy and firms with low market share were successful because they used market segmentation to focus on a small but profitable market niche. Firms in the middle were less profitable because they did not have a viable generic strategy. Porter suggested combining multiple strategies is successful in only one case. Combining a market segmentation strategy with a product differentiation strategy was seen as an effective way of matching a firms product strategy (supply side) to the characteristics of your target market segments (demand side). But combinations like cost leadership with product differentiation were seen as hard (but not impossible) to implement due to the potential for conflict between cost minimization and the additional cost of value-added differentiation.

Since that time, empirical research has indicated companies pursuing both differentiation and low-cost strategies may be more successful than companies pursuing only one strategy.[1] Some commentators have made a distinction between cost leadership, that is, low cost strategies, and best cost strategies. They claim that a low cost strategy is rarely able to provide a sustainable competitive advantage. In most cases firms end up in price wars. Instead, they claim a best cost strategy is preferred. This involves providing the best value for a relatively low price. This strategy involves the firm winning market share by appealing to cost-conscious or price-sensitive customers. This is achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return on investment, the firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve this. The first approach is achieving a high asset turnover. In service industries, this may mean for example a restaurant that turns tables around very quickly, or an airline that turns around flights very fast. In manufacturing, it will involve production of high volumes of output. These approaches mean fixed costs are spread over a larger number of units of the product or service, resulting in a lower unit cost, i.e. the firm hopes to take advantage of economies of scale and experience curve effects. For industrial firms, mass production becomes both a strategy and an end in itself. Higher levels of output both require and result in high market share, and create an entry barrier to potential competitors, who may be unable to achieve the scale necessary to match the firms low costs and prices. The second dimension is achieving low direct and indirect operating costs. This is achieved by offering high volumes of standardized products, offering basic no-frills products and limiting customization and personalization of service. Production costs are kept low by using fewer components, using standard components, and limiting the number of models produced to ensure larger production runs. Overheads are kept low by paying low wages, locating premises in low rent areas, establishing a cost-conscious culture, etc. Maintaining this strategy requires a continuous search for cost reductions in all aspects of the business. This will include outsourcing, controlling production costs, increasing asset capacity utilization, and minimizing other costs including distribution, R&D and advertising. The associated distribution strategy is to obtain the most extensive distribution possible. Promotional strategy often involves trying to make a virtue out of low cost product features. The third dimension is control over the supply/procurement chain to ensure low costs. This could be achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, instituting competitive bidding for contracts, working with vendors to keep inventories low using methods such as Just-in-Time purchasing or Vendor-Managed Inventory. Wal-Mart is famous for squeezing its suppliers to ensure low prices for its goods. Dell

Computer initially achieved market share by keeping inventories low and only building computers to order. Other procurement advantages could come from preferential access to raw materials, or backward integration. Some writers assume that cost leadership strategies are only viable for large firms with the opportunity to enjoy economies of scale and large production volumes. However, this takes a limited industrial view of strategy. Small businesses can also be cost leaders if they enjoy any advantages conducive to low costs. For example, a local restaurant in a low rent location can attract price-sensitive customers if it offers a limited menu, rapid table turnover and employs staff on minimum wage. Innovation of products or processes may also enable a startup or small company to offer a cheaper product or service where incumbents' costs and prices have become too high. An example is the success of low-cost budget airlines who despite having fewer planes than the major airlines, were able to achieve market share growth by offering cheap, no-frills services at prices much cheaper than those of the larger incumbents. A cost leadership strategy may have the disadvantage of lower customer loyalty, as price-sensitive customers will switch once a lower-priced substitute is available. A reputation as a cost leader may also result in a reputation for low quality, which may make it difficult for a firm to rebrand itself or its products if it chooses to shift to a differentiation strategy in future. SUPPLEMENTARY STRATRGY Supplementary Strategy 1: International Engagement The National Commission will continue to manage New Zealands relationship with the international organisation in consultation with the Ministry of Foreign Affairs and Trade through New Zealands Permanent Delegate to UNESCO based at the New Zealand Embassy in Paris. In the 2010-2011 biennium the focus will be on influencing the content of UNESCOs programme and budget for 2012-2013 (the 36C/5) in line with the interests of New Zealand and the Pacific sub-region through the consultation process culminating in the adoption of this document at the UNESCO General Conference in October 2011. Supplementary Strategy 2: Managing Stakeholder Relationships The National Commission will engage with a range of stakeholders on UNESCO matters in consultation with relevant Ministers. The Commission will engage with government departments it is associated with it under its constitution through inter alia engagement in the work of its subcommissions. Co-operating bodies will be kept informed of developments and provided with opportunities to engage in the Commissions work. The Youth Bureau will be revitalised. Existing formal partnerships will be continued and enhanced where appropriate and new partnerships will be explored. Supplementary Strategy 3: Communications The National Commission will seek to maximise the visibility of its activities with the aim of promoting UNESCOs key messages. Principal mechanisms

will be the Commissions website, regular electronic newsletters and the online publication of an annual review document. Media releases will be issued and strategies developed for major events in the Commissions calendar. Supplementary immunization Mass immunization campaigns, known as National Immunization Days (NIDs) or supplementary immunization activities (SIAs), are one of the four pillars of eradication. This supplementary immunization is intended to complement not replace routine immunization. The aim of mass campaigns is to interrupt circulation of poliovirus by immunizing every child under five years of age with two doses of oral polio vaccine, regardless of previous immunization status. The idea is to catch children who are either not immunized, or only partially protected, and to boost immunity in those who have been immunized. This way, every child in the most susceptible age group is protected against polio at the same time instantly depriving the virus of the fertile seedbed on which its survival depends. National Immunization Days (NIDs) National Immunization Days are conducted in two rounds, one month apart. Because oral polio vaccine does not require a needle and syringe, volunteers with minimal training can serve as vaccinators, increasing the number of vaccinators well beyond the existing trained health staff. Three to five years of NIDs are usually required to eradicate polio, but some countries require more time, especially those where routine immunization coverage is low. NIDs are normally conducted during the cool, dry season because logistics are simplified, immunological response to oral polio vaccine is improved and the potential damage to heat-sensitive vaccine is reduced. Synchronized NIDs Increasingly, neighbouring countries are coordinating, or "synchronizing" their National Immunization Days. This ensures that children crossing borders for any reason are identified and immunized. It also allows health teams to cross borders and immunize children in pockets of territory otherwise isolated by rivers or mountains, or on islands that may be less accessible from the other side. This approach was first used between countries of eastern Europe and central Asia, in a successful campaign called "Operation MECACAR." Massive synchronized campaigns among west and central African countries have taken place repeatedly following importations of poliovirus: in March 2010, 85 million children were vaccinated in 19 countries. Political, religious

and traditional leaders teamed up to launch the activities, and tens of thousands of vaccinators went house-to-house over three days to administer the vaccine directly to every child. Similar synchronized efforts have been undertaken along the borders of Afghanistan and Pakistan. Globalization strategy Global strategy as defined in business terms is an organization's strategic guide to globalization. A sound global strategy should address these questions: what must be (versus what is) the extent of market presence in the world's major markets? How to build the necessary global presence? What must be AND (versus what is) the optimal locations around the world for the various value chain activities? How to run global presence into global competitive advantage? [1] Academic research on global strategy came of age during the 1980s, including work by Michael Porter and Christopher Bartlett & Sumantra Ghoshal. Among the forces perceived to bring about the globalization of competition were convergences in economic systems and technological change, especially in information technology, that facilitated and required the coordination of a multinational firm's strategy on a worldwide scale. [2] [3] A global strategy may be appropriate in industries where firms are faced with strong pressures for cost reduction but with weak pressures for local responsiveness. Therefore, it allows these firms to sell a standardized product worldwide. However, fixed costs (capital equipment) are substantial. Nevertheless, these firms are able to take advantage of scale economies and experience curve effects, because it is able to massproduce a standard product which can be exported (providing that demand is greater than the costs involved). Global strategies require firms to tightly coordinate their product and pricing strategies across international markets and locations, and therefore firms that pursue a global strategy are typically highly centralized During the last half of the twentieth century, many barriers to international trade fell and a wave of firms began pursuing global strategies to gain a competitive advantage. However, some industries benefit more from globalization than do others, and some nations have a comparative advantage over other nations in certain industries. To create a successful global strategy, managers first must understand the nature of global industries and the dynamics of global competition. Efficiency o Economies of scale from access to more customers and markets o Exploit another country's resources - labor, raw materials o Extend the product life cycle - older products can be sold in lesser developed countries

Operational flexibility - shift production as costs, exchange rates, etc. change over time

Strategic o First mover advantage and only provider of a product to a market o Cross subsidization between countries o Transfer price Risk o Diversify macroeconomic risks (business cycles not perfectly correlated among countries) o Diversify operational risks (labor problems, earthquakes, wars) Learning o Broaden learning opportunities due to diversity of operating environments Reputation o Crossover customers between markets - reputation and brand identification Sumantra Ghoshal of INSEAD proposed a framework comprising three categories of strategic objectives and three sources of advantage that can be used to achieve them. Assembling these into a matrix results in the following framework: The Nature of Competitive Advantage in Global Industries A global industry can be defined as: An industry in which firms must compete in all world markets of that product in order to survive. An industry in which a firm's competitive advantage depends on economies of scale and economies of scope gained across markets. Some industries are more suited for globalization than are others. The following drivers determine an industry's globalization potential. 1. Cost Drivers o Location of strategic resources o Differences in country costs o Potential for economies of scale (production, R&D, etc.) Flat experience curves in an industry inhibits globalization. One reason that the facsimile industry had more global potential than the furniture industry is that for fax machines, the production costs drop 30%-40% with each doubling of volume; the curve is much flatter for the furniture industry and many service industries. Industries for which the larger expenses are in R&D, such as the aircraft industry, exhibit more economies of scale than those industries for which the larger expenses are rent and labor, such as the dry cleaning industry. Industries in which costs drop by at least 20% for each doubling of volume tend to be good candidates for globalization.

Transportation costs (value/bulk or value/weight ratio) => Diamonds and semiconductors are more global than ice.

2. Customer Drivers o Common customer needs favor globalization. For example, the facsimile industry's customers have more homogeneous needs than those of the furniture industry, whose needs are defined by local tastes, culture, etc. o Global customers: if a firm's customers are other global businesses, globalization may be required to reach these customers in all their markets. Furthermore, global customers often require globally standardized products. o Global channels require a globally coordinated marketing program. Strong established local distribution channels inhibits globalization. o Transferable marketing: whether marketing elements such as brand names and advertising require little local adaptation. World brands with non-dictionary names may be developed in order to benefit from a single global advertising campaign. 3. Competitive Drivers o Global competitors: The existence of many global competitors indicates that an industry is ripe for globalization. Global competitors will have a cost advantage over local competitors. o When competitors begin leveraging their global positions through cross-subsidization, an industry is ripe for globalization. 4. Government Drivers o Trade policies o Technical standards o Regulations The furniture industry is an example of an industry that did not lend itself to globalization before the 1960's. Because furniture has a high bulk compared to its value, and because furniture is easily damaged in shipping, transport costs traditionally were high. Government trade barriers also were unfavorable. The Swedish furniture company IKEA pioneered a move towards globalization in the furniture industry. IKEA's furniture was unassembled and therefore could be shipped more economically. IKEA also lowered costs by involving the customer in the value chain; the customer carried the furniture home and assembled it himself. IKEA also had a frugal culture that gave it cost advantages. IKEA successfully expanded in Europe since customers in different countries were willing to purchase similar designs. However, after successfully expanding to several countries, IKEA ran into difficulties in the U.S. market for several reasons:

Different tastes in furniture and a requirement for more customized furniture. Difficult to transfer IKEA's frugal culture to the U.S. The Swedish Krona increased in value, increasing the cost of furniture made in Sweden and sold in the U.S. Stock-outs due to the one to two month shipping time from Europe More competition in the U.S. than in Europe Country Comparative Advantages Competitive advantage is a firm's ability to transform inputs into goods and services at a maximum profit on a sustained basis, better than competitors. Comparative advantage resides in the factor endowments and created endowments of particular regions. Factor endowments include land, natural resources, labor, and the size of the local population. In the 1920's, Swedish economists Eli Hecksher and Bertil Ohlin developed the factor-proportions theory, according to which a country enjoys a comparative advantage in those goods that make intensive use of factors that the country has in relative abundance. Michael E. Porter argued that a nation can create its own endowments to gain a comparative advantage. Created endowments include skilled labor, the technology and knowledge base, government support, and culture. Porter's Diamond of National Advantage is a framework that illustrates the determinants of national advantage. This diamond represents the national playing field that countries establish for their industries. Diversification strategy diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally very interesting[clarification needed] entering a promising business outside of the scope of the existing business unit. Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix he different types of diversification strategies The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm. Generally, the final strategy involves a combination of these options. This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company. There are three types of diversification: concentric, horizontal, and conglomerate.

Concentric diversification This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage. For example, a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. The technology would be the same but the marketing effort would need to change. It also seems to increase its market share to launch a new product that helps the particular company to earn profit. For instance, the addition of tomato ketchup and sauce to the existing "Maggi" brand processed items of Food Specialities Ltd. is an example of technological-related concentric diversification. The company could seek new products that have technological or marketin g synergies with existing product lines appealing to a new group of custome rs.This also helps the company to tap that part of the market which remains untapped, and which presents an opportunity to earn profits. Horizontal diversification The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. In a competitive environment, this form of diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity and instability. In other words, this strategy tends to increase the firm's dependence on certain market segments. For example, a company that was making notebooks earlier may also enter the pen market with its new product. When Horizontal diversification is desirable? Horizontal diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity and instability. Another interpretation Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current operations. For example, Avon's move to market jewelry through its doorto-door sales force involved marketing new products through existing channels of distribution. An alternative form of that Avon has also undertaken is selling its products by mail order (e.g., clothing, plastic products) and through retail stores (e.g.,Tiffany's). In both cases, Avon is still at the retail stage of the production process. Conglomerate diversification (or lateral diversification) Main article: Conglomerate (company)

The company markets new products or services that have no technological or commercial synergies with current products but that may appeal to new groups of customers. The conglomerate diversification has very little relationship with the firm's current business. Therefore, the main reasons of adopting such a strategy are first to improve the profitability and the flexibility of the company, and second to get a better reception in capital markets as the company gets bigger. Even if this strategy is very risky, it could also, if successful, provide increased growth and profitability. Goal of diversification According to Calori and Harvatopoulos (1988), there are two dimensions of rationale for diversification. The first one relates to the nature of the strategic objective: Diversification may be defensive or offensive. Defensive reasons may be spreading the risk of market contraction, or being forced to diversify when current product or current market orientation seems to provide no further opportunities for growth. Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using retained cash that exceeds total expansion needs. The second dimension involves the expected outcomes of diversification: Management may expect great economic value (growth, profitability) or first and foremost great coherence and complementary to their current activities (exploitation of know-how, more efficient use of available resources and capacities). In addition, companies may also explore diversification just to get a valuable comparison between this strategy and expansion. Risks Diversification is the riskiest of the four strategies presented in the Ansoff matrix and requires the most careful investigation. Going into an unknown market with an unfamiliar product offering means a lack of experience in the new skills and techniques required. Therefore, the company puts itself in a great uncertainty. Moreover, diversification might necessitate significant expanding of human and financial resources, which may detract focus, commitment, and sustained investments in the core industries. Therefore, a firm should choose this option only when the current product or current market orientation does not offer further opportunities for growth. In order to measure the chances of success, different tests can be done[2]: The attractiveness test: the industry that has been chosen has to be either attractive or capable of being made attractive. The cost-of-entry test: the cost of entry must not capitalize all future profits. The better-off test: the new unit must either gain competitive advantage from its link with the corporation or vice versa. Because of the high risks explained above, many companies attempting to diversify have led to failure. However, there are a few good examples of successful diversification:

Strategic execution From Vivendi to Webvan, the shortcomings of a bad strategy are usually painfully obvious -- at least in retrospect. But good strategies fail too, and when that happens, it's often harder to pinpoint the reasons. Yet despite the obvious importance of good planning and execution, relatively few management thinkers have focused on what kinds of processes and leadership are best for turning a strategy into results. As a result, says Wharton management professor Lawrence G. Hrebiniak, MBA-trained managers know a lot about how to decide a plan and very little about how to carry it out. " Making Strategy Work: Leading Effective Execution and Change (Wharton School Publishing). "Even though they are good managers, over time they really have to learn through the school of hard knocks, through experience, which means they make a lot of mistakes." This lack of expertise in execution can have serious consequences. In a recent survey of senior executives at 197 companies conducted by management consulting firm Marakon Associates and the Economist Intelligence Unit, respondents said their firms achieved only 63% of the expected results of their strategic plans. Michael Mankins, a managing partner in Marakon's San Francisco office, says he believes much of that gap between expectation and performance is a failure to execute the company's strategy effectively. While execution can go wrong for a variety of reasons, one of the most basic may be allowing the focus of the strategy to shift over time. The attempt by Hewlett-Packard, after it acquired Compaq, to compete with Dell in PCs through scale is a classic example of goal-shifting -- competing on price one week, service the next, while trying to sell through often conflicting, high-cost channels. The result: CEO Carly Fiorina lost her job and HP still must resolve some key strategic issues. The first step is to define the challenge. Ultimately, argues Richard Steele, a partner in Marakon's New York office, the challenge of execution is mostly a matter of synchronization -- getting the right product to the right customer at the right time. Synchronization is hard for a variety of reasons, including the fact that "any large company these days sells multiple products to multiple customers in multiple geographies. In order to pursue the scale benefits of size -- those benefits of scale through consolidation -- you now have more and more complexity across the matrix." For example, Steele says, a regional manufacturing initiative in Europe may involve reconfiguring 15 different supply chains and understanding the markets of 15 different countries. "It's really tough to do." Another classic example of mis-synchronization: United Air Lines' TED, which attempted to set up a competitive subsidiary to compete against upstarts such as Southwest. This was a good idea as far as it went, but United tried to compete using its same old cost structure -- the main reason it was losing markets to the low-cost airlines in the first place.

At other times, plans fail simply because they don't get communicated to all the people involved. "I've done consulting where a major strategic thrust has been developed, and a month or two later I go down four or five levels and ask people how they're doing. They haven't even heard of the program," Hrebiniak says. Strategies also flop because individuals resist the change. For example, headquarters might want more standardization in a product, but a local marketing executive disagrees with the idea. "He might say, 'I need more nuts in my chocolate bar' or 'I need a different pack size,'" Steele says. "You can only get the cost benefit and you can only consolidate if everybody agrees that we are actually going to execute the strategy." Many times, there can be sound reasons for resistance. Sometimes a strategy might make sense at the highest level, but its full impact on the whole organization has not been fully considered, according to Steele. For example, imagine that the general strategy calls for promoting one brand throughout the company while taking resources away from another brand. That might make sense in one market, yet be completely counterproductive elsewhere. Faced with the choice to promote a product that's considered an advantaged brand in one market but lags in his own, a country manager is likely to try to fight or circumvent the strategy. "Human nature will say, 'I'm not going to synchronize with you. I'm not going to spend the money where you want me to spend it. And I'm going to fight it,'" Steele says. "And that's what he does." Cultural factors can also hinder execution. Companies sometimes try to apply a tried-and-true strategy without realizing that they are operating in markets that require a different approach. Even such a world-beater at execution as Wal-Mart, for instance, has sometimes made some missteps because of culture. One example: When Wal-Mart first moved in to Brazil, it tried to lay down terms with suppliers in the same way it does in the U.S., where it carries huge weight in the market. Suppliers simply refused to play, and the company was forced to reevaluate its strategy. Internal cultural factors may also present problems. Steele points out that marketers typically move from brand to brand over two-year cycles. At the same time, operations executives advance at a slower, steadier five-year pace, which gives each of them very different perspectives both about the organization's past and its future. Employee incentives may create friction as well. "We hope for A but reward B. We say, 'Do this under the strategy,' but the incentives have been around for 25 years and they reward something else totally," Hrebiniak says. Yet the biggest factor of all may be executive inattention. Once a plan is decided upon, there is often surprisingly little follow-through to ensure that it is executed, the experts at Wharton and Marakon note. One culprit: "Less than 15% of companies routinely track how they perform over how they thought they were going to perform," says Mankins. Instead, only the first year's goals are measured -- and executives often set firstyear goals deliberately low in order to meet a threshold for a bonus. He

argues that this lack of introspection makes it easier for companies to ignore failed plans. And ignoring failure makes it that much harder to identify execution bottlenecks and take corrective action. According to Mike Perigo, a partner in Marakon's San Francisco office, frequent communication is essential if plans are to be executed well. "We have found that very effective companies have regular dialogues between the leadership team and unit managers," he says. People versus Process What should be done? Mankins says that there are two schools of thought about the best way to improve execution. One school emphasizes people: Just put the right people in place and the right things will get done. However, within the people school, there are also divisions. Some experts insist that the right people are hired, not made. "The idea is you get A players, you pay them a lot of money, and you pay them for the performance they generate -- irrespective of what may be happening in some other business or region," Mankins says. Others within the people camp think that the key is to improve executive performance through training, and improve the average employee's performance through the creation of a culture of accountability. For example, W. James McNerney, Jr., the chairman and CEO of 3M, argues that by improving the average performance of every individual by 15%, irrespective of what his or her role is, a company can achieve and sustain consistently superior performance. A second school emphasizes process rather than people, Mankins says. Larry Bossidy, the CEO of Honeywell and co-author of Execution: The Discipline of Getting Things Done, is one of the leading proponents of this school. Hrebiniak is also a firm advocate of better processes. "If you have bad people, sure, you're not going to do anything well. But how many organizations go out and hire bad people? They all hire good people. So something else must get in the way," he argues. Mankins, however, believes both propositions have merit. "I don't believe those two schools of thought are competing. I think they're just two sides of the same coin," he says. Marakon's research suggests that companies that have delivered the best results to shareholders combine both approaches. Looking at stock performance going back to 1990, Mankins says, they found that the majority of companies in the top quartile of performance combine attention to process with attention to executive development. Cisco, 3M, and GE are all companies that have emphasized both. Bossidy's Honeywell, on the other hand, has focused principally on process -- and has achieved only average performance. Five Keys to Getting the Job Done Whatever perspective is ultimately seen as the most helpful, there seem to be some tangible things companies can do to improve the chances of success. Experts at Wharton and Marakon agree that, like everything else in business management, improving execution is an ongoing process.

However, they say there are steps any company can take that should provide some incremental gains. For example: Develop a model for execution. Strategic yardsticks are plentiful. Michael Porter's theory of comparative advantage, for instance, gives strategists a way to conceptualize market leadership goals. In the evaluation of narrower plans, William Sharpe's capital asset pricing model, or more recent schema such as real options theory, can play a similar role. But when it comes to managing change, there are few such guidelines. Hrebiniak, who offers such guidelines in his book, notes that it's important for managers to "have a model [identifying] the critical variables that define -- at least for the manager -- the things they have to worry about when they put together an implementation plan. Without that, managers will say something like, 'We just hand the ball off to someone and let them run with it,' and that's the execution plan. That isn't going to go anywhere." Choose the right metrics. While sales and market share are always going to be the dominant metrics of business, Mankins says that more and more of the best companies are choosing metrics that help them evaluate not only their financial performance, but whether a plan is succeeding. For example, when a large cable company realized that the speed at which it penetrated a new market correlated directly with the number of service representatives it had in the field, executives began tracking the progress of how quickly representatives were being added in particular territories. But Hrebiniak warns that it's important to choose metrics in a package so that they can change if market conditions change. For example, sales of cars might be a good metric for a car manufacturer, but if interest rates rise, sales will likely suffer. A good set of metrics takes that into account. What should business units that don't touch customers use as a metric? Hrebiniak says he is often told by lawyers, human resource officers or information officers that the success of what they do can't be measured in numbers. His advice: Ask internal clients what would change for them if your department were good or bad -- or didn't exist? Sometimes questions like that can lead to good ideas for performance metrics. Don't forget the plan. As noted above, plans are often simply agreed to and then forgotten. One way advocated by Mankins to keep the plan on center stage is to separate executive meetings about operations from those focused on strategy. While Hrebiniak holds that strategy only succeeds when it is integrated into operations, Mankins and his colleagues argue that day-today concerns often so overwhelm the executive team that such an agenda management process is the only way to keep executive attention focused on the organization's progress. Assess performance frequently. Performance monitoring is still an annual affair at most companies. However, according to Mankins, plan assessments at many of the leading

companies happen at much more frequent intervals than they did in the past. "The reason why Wal-Mart is so good at execution is it knows daily if what it is doing in each of its stores gets results or not," Mankins says. For example, when Wal-Mart learned this year that its Christmas sales strategy hadn't worked just eight days after the close of the season, it was able to mitigate the damage in a way it wouldn't have if results had been slower in coming. By shortening the performance monitoring cycle -- from quarter-byquarter to month-by-month or week-by-week -- top management can get more "real-time" feedback on the quality of execution down the line. Communicate. Hrebiniak says that companies often go wrong by creating a cultural distinction between the executives who design a strategy and people lower down in the corporate hierarchy who carry it out. Asking ongoing questions about the status of a plan is a good way to ensure that it will continue to be a priority. BUILDING COMPETENT ORGANIZATION A local neighborhood found itself in the middle of a drastic demographic shift. Its residents, who used to be primarily people of European descent, is now 30% African American and 10% Hispanic. The neighborhood association, which was used to operating within a European cultural context, is struggling with engaging the new residents. The association's board has put ads in the local newspaper about the association's activities, posted announcements about meeting times, and mailed out newsletters. Yet, its membership has not increased nor diversified. The new residents view the neighborhood association as an organization that is run by and serves the European American residents only. The association has not acknowledged or welcomed the new residents in any of its materials. It has made no effort to contact the African American and Hispanic leaders and to invite them to join the neighborhood association. It was continuing to operate the way it has always operated without realizing that the newcomers have their own forms of social organization and ways to support their members. In order for the neighborhood association to engage the newcomers, it had to learn about the social organization and leadership of the new groups and ways to communicate with them in a culturally appropriate manner. Each organization and its individual members should keep in mind that change is not easy for humans. Many of us resist it and are dragged into the process kicking and screaming -- and that makes it difficult for everyone else. But when we learn to understand others we improve our chances of making things better in an increasingly multicultural world. There will be situations where people can be right on both sides of an issue or belief -- sometimes there may not be one right answer to a question. It is essential to approach the change process knowing that compromise, patience, and understanding must be a central theme. This leads us to the beginning of building culturally competent organizations.

Culture is defined as the shared traditions, beliefs, customs, history, folklore, and institutions of a group of people. Culture is shared by people of the same ethnicity, language, nationality, or religion. It's a system of rules that are the base of what we are and affect how we express ourselves as part of a group and as individuals. We all develop in some type of culture. Our environment determines what we learn, how we learn it, and the rules for living with others. These rules are transmitted from one generation to the next and are often adapted to the times and locale. The rules are absorbed by children as they develop, whether through word-of-mouth or just "osmosis." Organizations have a "culture" of policies, procedures, programs, and processes, and incorporate certain values, beliefs, assumptions, and customs. Organizational cultures largely echo mainstream culture in its sense of time orientation, perception, and use of time. An organizational culture may not lend itself to cultural competence, so that's where skill building comes in. A culturally competent organization brings together knowledge about different groups of people -- and transforms it into standards, policies, and practices that make everything work. There are four levels to these concepts: "Cultural knowledge" means that you know about some cultural characteristics, history, values, beliefs, and behaviors of another ethnic or cultural group. "Cultural awareness" is the next stage of understanding other groups -- being open to the idea of changing cultural attitudes. "Cultural sensitivity" is knowing that differences exist between cultures, but not assigning values to the differences (better or worse, right or wrong). Clashes on this point can easily occur, especially if a custom or belief in question goes against the idea of multiculturalism. Internal conflict (intrapersonal, interpersonal, and organizational) is likely to occur at times over this issue. Conflict won't always be easy to manage, but it can be made easier if everyone is mindful of the organizational goals. "Cultural competence" brings together the previous stages -- and adds operational effectiveness. A culturally competent organization has the capacity to bring into its system many different behaviors, attitudes, and policies and work effectively in cross-cultural settings to produce better outcomes. Cultural competence is non-threatening because it acknowledges and validates who people are. By focusing on the organization's culture, it removes the need to place blame and assume guilt. Since becoming culturally competent focuses on the "how-to" of aligning policies and practices with goals, everyone is involved in the process. This "inside-out" model relieves the outsiders (or excluded groups) from the responsibility of doing all the adapting. A Cultural Competence Model: 5 Essential Principles

1. Valuing diversity Valuing diversity means accepting and respecting differences between and within cultures. We often presume that a common culture is shared between members of racial, linguistic, and religious groups, but this may not be true. A group might share historical and geographical experiences, but individuals may share only physical appearance, language, or spiritual beliefs. Our cultural assumptions can lead us to wrong conclusions. As people move to new areas and meld with other cultures it creates a kaleidoscope of subcultures within racial groups. Gender, locale, and socioeconomic status can sometimes be more powerful than racial factors. For example, a Vietnamese couple may immigrate to America, and raise their children in a suburban area. As a result, the children may identify much more with European American popular culture than the Vietnamese culture of their parents. Understanding situations such as this can lead to a better understanding of the complexity of diversity. 2. Conducting cultural self-assessment The most important actions to be conscious of are usually the ones we take for granted. For instance, physical distance during social interactions varies by culture. If a staff member of an organization routinely touches the arm of whomever she is talking to, this might be misread in some cultures. Such miscommunication can be avoided if the organization does cultural selfassessment. Each organization has a culture. Surveys and discussion can help members become more aware of the organization's way of doing things and can help it adjust to other cultures. This assessment is a continuing process towards cultural competence. 3. Understanding the dynamics of difference Many factors can affect cross-cultural interactions. Bias due to historical cultural experiences can explain some current attitudes. For example, Native Americans and African Americans, among other groups, have experienced discrimination and unfair treatment from dominant cultures. Mistrust coming out of these experiences may be passed on to the next generations of these groups, but ignored within the dominant culture. An oppressed group may feel mistrust toward the dominant culture, but members of the dominant culture may be unaware of it or not understand it. Organizations planning to interact with varying cultures need awareness of such a dynamic if they want to be effective. Remember that organizations can be intergenerational. A group that worked with an ineffective, culturally incompetent organization 15 years ago, may not know that the group has the same name but is in a "second life" -- a new staff, a new board, and a new approach to working with the community. This means the organization has some work to do, and must be aware of this dynamic in order to be newly effective. Being proactive rather than reactive about change produces a synergistic organization. Anticipating change is a basic dynamic in the development of synergy. Synergy is more than just teamwork. It's the magic that happens when people are truly working

together, understanding one another deeply, and in total agreement about their beliefs and goals, at least as far as their work goes. Synergy happens only if people treat each other with respect and effectively communicate with each other. 4. Institutionalizing cultural knowledge Cultural knowledge should be integrated into every facet of an organization. Staff must be trained and be able to effectively utilize knowledge gained. Policies should be responsive to cultural diversity. Program materials should reflect positive images of all cultures. 5. Adapting to diversity Values, behaviors, attitudes, practices, policies, and structures that make it possible for cross-cultural communication guide a culturally competent organization. When you recognize, respect, and value all cultures and integrate those values into the system, culturally competent organizations can meet the needs of diverse groups. Establilishing policy procedure The University establishes administrative policies to align operations, set behavioral expectations across the University system, and communicate policy roles and responsibilities when appropriate to do so through a broad policy in accordance with the criteria below. Criteria University-wide administrative policies must: be warranted in order to (a) implement Board of Regents policy; (b) achieve compliance with laws, rules, or regulations; or (c) address a risk to the institution that cannot be adequately addressed elsewhere; apply institution-wide or campus-wide; have significant impact, including but not limited to, the number of people and colleges/units impacted and the level and number of risk factors involved; and promote operational efficiency and effectiveness. Administrative policies will either require or prohibit specific actions of faculty, staff, or students, as well as external individuals who use University resources or services, as appropriate. The President's Policy Committee (PPC) has delegated authority from the President to establish administrative policies. The PPC will assist policy owners in identifying an appropriate level of monitoring needed for the activity. Policy owners must consult with representatives from target audiences during the development phase of both new and significantly revised policies. Policy owners must periodically review and monitor their policies and procedures for accuracy, efficiency, and effectiveness. Policy owners must also ensure that all monitoring and enforcement activities are appropriate for the level of risk managed.

Campus-Specific Administrative Policy Development Individual campuses may develop campus-specific policies when: there is no matching University-wide policy or when unique campus requirements cannot be accommodated within a matching U-wide policy; and when the policy satisfies the criteria for University-wide administrative policies. The Director of the University Policy Program will assist the campuses in ensuring alignment with the specifications above. Campus policy owners may not develop policies that are inconsistent with, or less restrictive than, any Board of Regents or U-wide Administrative policy. Administrative policies that are specific only to the Twin Cities campus or pertain to multiple campuses and include the Twin Cities campus, will follow the development and approval process specified in the attached procedures, given the size of the campus and the number of individuals governed by a Twin Cities campus policy. Relationship of Administrative Policy with Local Policy Colleges and departments may develop local policies, whether or not a corresponding administrative policy exists. If a corresponding administrative policy exists, they may adopt a more, but not less, restrictive local policy, except where an administrative policy specifically prohibits units from establishing policies that differ from the corresponding administrative policy. Units may not develop local policies that are inconsistent with Board of Regents or Administrative Policies. REASON FOR POLICY The policy, procedure and process were created to reduce risk and comply with University and legal requirements, through the setting of behavioral expectations (requirements) across the University system and the communicating of policy roles and responsibilities. The required process by which the policies are developed, reviewed, and maintained promotes consistency, efficiency and transparency and reflects best practice in higher education. PROCEDURES Developing a New Administrative Policy Routine Maintenance of Administrative Policy Comprehensively Reviewing Existing Administrative Policies The Human Equation: Establishing Policy and Procedure is the final of the six-session online course for specialty outdoor retailers. Throughout the series, Dan Mann of The Mann Group will walk you through steps to successfully manage your Human Resources activities, covering everything from hiring and ring, performance reviews, compensation, dealing with difficult employees, team building, effective meetings, staff motivation, and much more

No one likes the term policy. Nonetheless, having clarity about your systems and procedures can make your life much simpler. This session will address the areas you must have policy and procedure for and help you know what to do to get everyone on board. We will explore dealing with difficult employees, and provide you with a useful termination procedure. Discipline procedures should be designed to solicit improvement, not force people out. We will show you how. Establishing Policy and Procedure is free for OIA members and $99 for nonmembers. All sessions in The Human Equation series are recorded and available for on-demand viewing: Keep your business's basic procedures and policies well documented. Whenever a policy or procedure question comes up, your business's employees can check this manual. Here are some of the things you'll find in any good policies and procedures manual: Welcome statement by the CEO Equal-employment opportunity (EEO) policy statement (including sexual and other forms of harassment) Company history and overview Employment at-will (if applicable) Company mission statement and values Essential company rules, such as work hours, business ethics, smoking, dress code, sick days, and so on Performance appraisal procedures Disciplinary procedures (you must have a lawyer carefully review this section) Health, safety, and security rules and procedures, including fire-exit maps Benefit, pension, and deferred-income programs Parking and transportation information, including maps Here's some advice for creating a procedures manual: Separate company policies from job-specific procedures. Try to make a distinction in your employee manual between policies that apply to everyone in the company (general hours, payroll, vacation, and so on) and procedures that relate specifically to how people do their individual jobs. Keep it simple. Employee manuals dont need to be literary works, but they do need to be clear and concise. Pay attention to legalities. Anything that you put in writing about your companys policies or procedures automatically becomes a legal document, and someone may use it against you in a wrongful dismissal suit. Make sure that an expert in employment law reviews the manual before you publish it. Control the distribution. Every employee who receives a manual should sign a document that acknowledges his or her receipt and understanding of the manual. You dont want the manual to circulate

outside the company and the manual needs to contain a clear statement to this effect. Make the layout reader-friendly. The layout should enhance rather than interfere with the readers ability to grasp the manual's contents. Be consistent; use bullets, not paragraphs; avoid small type; and use graphics to add interest. Whatever else your employee manual does, make sure that it doesnt do any of the following: Make promises you cant keep. Publish procedures you dont follow or cant enforce. Say anything that someone may construe as discriminatory. Use the phrase termination for just cause without specifying what you mean. Budget A budget (from old French bougette, purse) is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.[1]A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out. 2. Enable the actual financial operation of the business to be measured against the forecast. 3. Establish the cost constraint for a project, program, or operation. udget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include: To control resources To communicate plans to various responsibility center managers. To motivate managers to strive to achieve budget goals. To evaluate the performance of managers To provide visibility into the company's performance Why do we produce budgets? Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:

To control resources To communicate plans to various responsibility center managers. To motivate managers to strive to achieve budget goals. To evaluate the performance of managers To provide visibility into the company's performance Business start-up budget The process of calculating the costs of starting a small business begins with a list of all necessary purchases including tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance), working capital, sources and collateral. The budget should contain a narrative explaining how you decided on the amount of this reserve and a description of the expected financial results of business activities. The assets should be valued with each and every cost. All other expenses are like labour factory overhead all freshmen expenses are also included into business budgeting. Corporate budget The budget of a company is often compiled annually, but may not be. A finished budget, usually requiring considerable effort, is a plan for the shortterm future, typically one year (see budget year). While traditionally the Finance department compiles the company's budget, modern software allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget. If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an 'out of control' signal, and the share price could suffer as a result. Event management budget A budget is a fundamental tool for an event director to predict with reasonable accuracy whether the event will result in a profit, a loss or will break-even. A budget can also be used as a pricing tool. There are two basic approaches or philosophies when it comes to budgeting. One approach is telling you on mathematical models, and the other on people. The first school of thought believes that financial models, if properly constructed, can be used to predict the future. The focus is on variables, inputs and outputs, drivers and the like. Investments of time and money are devoted to perfecting these models, which are typically held in some type of financial spreadsheet application. The other school of thought holds that its not about models, its about people. No matter how sophisticated models can get, the best information comes from the people in the business. The focus is therefore in engaging the managers in the business more fully in the budget process, and building accountability for the results. The companies that adhere to this approach have their managers develop their own budgets. While many companies

would say that they do both, in reality the investment of time and money falls squarely in one approach or the other. Government budget For more details on this topic, see Government budget. The budget of a government is a summary or plan of the intended revenues and expenditures of that government. Budget types Sales budget an estimate of future sales, often broken down into both units and dollars. It is used to create company sales goals. Production budget an estimate of the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material. Created by product oriented companies. Cash flow/cash budget a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. Marketing budget an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service. Project budget a prediction of the costs associated with a particular company project. These costs include labor, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. A cost estimate is used to establish a project budget. Revenue budget consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies. Expenditure budget includes spending data items. Structural & reengineering When companies have geographically dispersed locations performing similar processes, economies of scale and process standardization become very real cost drivers. Strategic Impact Solutions experience in the structural reengineering of processes located at multiple sites has given our clients solutions for cutting significant operational costs. Likewise, during these engagements our consultants have gained extensive experience in consolidating servicing operations at the local, regional and international levels. During consolidation engagements, the core differentiator between us and our competition is that we not only provide a thorough operational, financial and macroeconomic analysis and deliver a consolidation plan, but we are also willing to put our money where our mouth is and work on the smooth implementation of that plan. Some of the structural reengineering services we offer include:

Local, regional and international consolidations of operations Process standardization (to be implemented as either a stand alone service or in conjunction with consolidation) Network and Information Technology redesigns for consolidation projects Organizational redesigns for consolidation projects Imatinib, a selective, small-molecule tyrosine kinase inhibitor, has lifesaving clinical activity in certain cancers, but questions have been raised about the potential for cardiac toxicity through inhibition of its target, ABL kinase. In this issue of the JCI, Fernndez et al. describe a novel method by which the ABL-inhibitory activity of imatinib was deleted by modifying its chemical structure (see the related article beginning on page 4044). The anticancer activity of the reengineered agent, called WBZ_4, was instead preserved against gastrointestinal stromal tumors in both in vitro and in vivo models via inhibition of KIT tyrosine kinase, and the desired safety was demonstrated with less cardiotoxicity of WBZ_4 compared with imatinib via the inhibition of JNK. The study shows that structural reengineering of a kinase-inhibitory drug to improve tolerability while preserving efficacy is feasible.

The most used engineering terminology can be confusing to the average consumer. Understanding the common jargon used in structural engineering can help you communicate with your architect, engineer, or construction manager more effectively. Beam A structural member, usually horizontal, with a main function to carry loads cross-ways to its longitudinal axis. These loads usually result in bending of the beam member. Examples of beams are simple, continuous, and cantilever. Beam-Column This is a structural member whose main function is to carry loads both parallel and transverse to the longitudinal axis. Cantilever Cantilever refers to the part of a member that extends freely over a beam, which is not supported at its end. Collateral Load Collateral load is additional dead loads (not the weight of people and not the weight of the building itself), such as plumbing, duct work, ceilings, and other components of the structure. Column A column is a main vertical member that carries axial loads from the main roof beams or girders to the foundation parallel to its longitudinal axis. Continuity Continuity is the term given to a structural system describing the transfer of

loads and stresses from member to member as if there were no connections. Damping Damping is the rate of decay of amplitude for floor vibrations. Dead Load Dead load describes the loads from the weight of the permanent components of the structure. Deflection Deflection is the displacement of a structural member or system under a load. Dynamic Load This type of load varies over time. Footing A footing is a slab of concrete under a column, wall, or other structural to transfer the loads of the member into the surrounding soil. Foundation A foundation supports a building or structure. G-Type Joist Girder A type of Joist Girder using joists located at panel points where diagonal webs intersect the top chord of the joist only. Gable A gable is located above the elevation of the eave line of a double-sloped roof. Gage Gage can refer to the thickness of a sheet of material or the distance between centerlines in a set of holes, usually perpendicular to the joist or joist girder. Girder A girder is the main horizontal member spanning between two main supports and carries other members or vertical loads within the structure. Grade The ground elevation of the soil. Header A member that carries other supporting members and is placed between other beams. Hip Roof A roof sloping from all four sides of a building. Joist A structural load-carrying member with an open web system which supports floors and roofs utilizing hot-rolled or cold-formed steel and is designed as a simple span member. Kip 1000 pounds. Live Load Non-permanent loads on a structure created by the use of the structure.

Load An outside force that affects the structure or its members. Modulus of Elasticity (E) The value is usually 29,000 ksi for structural steels and is also called Youngs Modulus. It calculates the slope of the straight-line portion of the stress-strain curve in the elastic range. Moment Moment is the tendency of a force to cause a rotation about a point or axis which in turn produces bending stresses. Moment of Inertia (I) A measure of the resistance to rotation offered by a members geometry and size. Pitch Pitch is the slope of a member defined as the ratio of the total rise to the total width Reaction Reaction is the force or moment developed at the points of a support. Seismic Load Loads produced during the seismic movements of an earthquake. Shear Forces resulting in two touching parts of a material to slide in opposite directions parallel to their plane of contact. Span The distance between supports. Structural Steels Steels suitable for load-carrying members in a structure. Strut A structural brace that resists axial forces. Stud A vertical wall member used to attach other structures, such as walls. Torsion Loads A load that causes a member to twist about its longitudinal axis. A couple or moment in a plane perpendicular to the axis produces simple torsion. These most used structural engineering terminology definitions provide a baseline understanding of engineering jargon for the average consumer. Detailed definitions can be obtained from visiting a professional engineering website or professional journal. Information & communication Information and Communications Technology or Information and Communication Technology,[1] usually abbreviated as ICT, is often used as an extended synonym for information technology (IT), but is usually a more general term that stresses the role of unified communications[2] and the integration of telecommunications (telephone lines and wireless signals), computers, middleware as well as necessary software, storage, and audio-visual systems, which enable users to create, access, store, transmit, and manipulate information. In other words, ICT consists of IT as

well as telecommunication, broadcast media, all types of audio and video processing and transmission and network based control and monitoring functions.[3] The expression was first used in 1997[4] in a report by Dennis Stevenson to the UK government[5] and promoted by the new National Curriculum documents for the UK in 2000. The term ICT is now also used to refer to the merging (convergence) of audio-visual and telephone networks with computer networks through a single cabling or link system. There are large economic incentives (huge cost savings due to elimination of the telephone network) to merge the audio-visual, building management and telephone network with the computer network system using a single unified system of cabling, signal distribution and management. This in turn has spurred the growth of organizations with the term ICT in their names to indicate their specialization in the process of merging the different network systems. information Communication Technology (ICT) is often perceived as a useful strategy to transform education systems and a means by which students can develop basic competencies and skills needed for a knowledge economy. The main focus of this course is on how a countrys education system and policy can be enriched through the applications of ICT. The course is organized to help policymakers to address the imperative that traditional, formal education systems are facing by raising awareness and understanding about essential elements of an effective application of ICT. The course will review ICT in relation to education policy, relevant strategies, and best practice. The exchange of first-hand experience of ICT use in education policy and its implementation would help policymakers grasp a systematic view in strengthening the competitiveness of their education systems by applying ICT more effectively. Audience The audience for the course will be approximately 35-40 mid-level government officials in developing countries throughout the world, with a focus on those in the early stages of planning or implementing programs that integrate ICT into educational initiatives Reward system A reward or reinforcement is something that, when presented after a behavior, causes that behavior to increase in intensity and/or frequency. Certain neural structures, called the reward system are critically involved mediating the effects of reward. Reward as a behavioral effect Reward or reinforcement is an objective way to describe the positive value an individual ascribes to an object, behavioral act or an internal physical

state. Primary rewards include those that are necessary for the survival of species, such as food, sexual contact, or successful aggression.[2] Secondary rewards derive their value from primary rewards. Money is a good example. They can be produced experimentally by pairing a neutral stimulus with a known reward. Things such as pleasurable touch and beautiful music are often said to be secondary rewards, but such claims are questionable. For example, there is a good deal of evidence that physical contact, as in cuddling and grooming, is an unlearned or primary reward [3]. Rewards are generally considered more desirable than punishment in modifying behavior.[4] Discovery of the reward system Skinner box In a fundamental discovery made in 1954, researchers James Olds and Peter Milner found that low-voltage electrical stimulation of certain regions of the brain of the rat acted as a reward in teaching the animals to run mazes and solve problems.[5][6] It seemed that stimulation of those parts of the brain gave the animals pleasure, [5] and in later work humans reported pleasurable sensations from such stimulation. When rats were tested in Skinner boxes where they could stimulate the reward system by pressing a lever, the rats pressed for hours at a rate up to 2000 times per hour.[6] Research in the next two decades established that dopamine is one of the main chemicals aiding neural signaling in these regions, and dopamine was suggested to be the brains pleasure chemical.[7] Anatomy of the reward system The major neurochemical pathway of the reward system in the brain involves the mesolimbic and mesocortical pathway. Of these pathways, the mesolimbic pathway plays the major role, and goes from the ventral tegmental area via the medial forebrain bundle to nucleus accumbens, which is the primary release site for the neurotransmitter dopamine. Dopamine acts on D1 or D2 receptors to either stimulate (D1) or inhibit (D2) the production of cAMP. Modulation by drugs Main article: Drug addiction Almost all drugs causing drug addiction increase the dopamine release in the mesolimbic pathway[8], e.g. opioids, nicotine, amphetamine, ethanol and cocaine. After prolonged use, psychological drug tolerance and sensitization arises. Psychological drug tolerance The reward system is partly responsible for the psychological part of drug tolerance. One explanation of this is a sustained activation of the CREB protein, causing a larger dose to be needed to reach the same effect. Sensitization Sensitization is an increase in the user's sensitivity to the effects of the substance, counter to the effects of CREB. A transcription factor, known as delta FosB, is thought to be involved by activating genes that causes sensitization. The hypersensitivity that it causes is thought to be

responsible for the intense cravings associated with drug addiction, and is often extended to even the peripheral cues of drug use, such as related behaviors or the sight of drug paraphernalia. Every company needs a strategic reward system for employees that addresses these four areas: compensation, benefits, recognition and appreciation. The problem with reward systems in many businesses today is twofold: They're missing one or more of these elements (usually recognition and/or appreciation), and the elements that are addressed aren't properly aligned with the company's other corporate strategies. A winning system should recognize and reward two types of employee activity-performance and behavior. Performance is the easiest to address because of the direct link between the initial goals you set for your employees and the final outcomes that result. For example, you could implement an incentive plan or recognize your top salespeople for attaining periodic goals. Rewarding specific behaviors that made a difference to your company is more challenging than rewarding performance, but you can overcome that obstacle by asking, "What am I compensating my employees for?" and "What are the behaviors I want to reward?" For example, are you compensating employees for coming in as early as possible and staying late, or for coming up with new ideas on how to complete their work more efficiently and effectively? In other words, are you compensating someone for innovation or for the amount of time they're sitting at a desk? There's obviously a big difference between the two. The first step, of course, is to identify the behaviors that are important to your company. Those activities might include enhancing customer relationships, fine-tuning critical processes or helping employees expand their managerial skills. When business owners think of reward systems, they typically put compensation at the top of the list. There's nothing wrong with that, since few people are willing or able to work for free. But the right strategy should also include an incentive compensation plan that's directly linked to the goals of your company for that period. You might want to include some type of longer-term rewards for key individuals in your organization. Historically, this has often included some form of equity ownership. Motivating people Whatever your motivation, marketing, meeting or personal development needs, Motivating People can provide the skills and expertise you require. Your people are your companys most valuable asset and our people know just how to motivate them, raise your communications profile and develop their skills to enhance their effectiveness. Motivating People is a unique alliance that combines the talents of some of the regions most experienced professionals to provide realistic and effective solutions to the challenges facing business today.

Seven Steps to Motivating People at Work 1. Ask Ask people questions. There are two goals of asking questions. To find out what people are passionate about and to make sure that they know you care about what they think. If you are at a loss as to what motivates people, their passions are a great start. Do not fall into the error of asking, What are you passionate about and taking what they say at face value. Look for body language signs that reinforce their stated passion. In an era of self help by means of television, radio and new age music, almost everyone is convinced they need to be passionate about something and quite often make it up, even to themselves. It is better to have a conversation, asking how things could be done better around here. Respond with further questions to explore. The phrase, Tell me more works well to open up the conversation further. Have several conversations like this and as trust develops you will find out what motivates people without having to ask. Having a conversation with people where you are genuinely interested in their responses builds self esteem for the person to whom th 2. Involve For major and minor changes, go further than asking for advice and opinions; involve people in analysis and design of solutions. It is not necessary to set up quality circles as part of a complete quality management system. Involve people in the definition of the problem and they will own it. Involve them in the analysis to create solutions and they will own the solution alternatives. Involve them in the design of the implementation and they will own the outcome. 3. Communicate When you are anticipating change, let people know what your intentions are. Tell them the goal. Tell them the rationale. Tell them the consequences and timing of what you intend to do. Tell them the consequences and timing of doing nothing. Tell them the process by which things will happen. Tell them how to find out more information. Tell them how to make sure their comments and thoughts are to be included. Listen to what they think. Listen to what they would rather do. Listen to their aspirations. Listen to how changing things impacts them. Do this for good news and bad news. Do this as early as possible, often and by several different mediums. Do this for big events and do it on a small scale for small events, such as responding to a conversation you started by asking, How can we do things better around here. In day-to-day business life communicate the standards to which you expect people to perform. Make them explicit standards, not implicit. Do not ask for a public toilet to be clean. Develop a standard on what clean is. The standard will include as a minimum, what is to be done, the measure by which it is evaluated and time elements.

People are not de-motivated by certainty. They are, however, de-motivated by the uncertainty created by the whirlpool of rumor and denial resulting from a vacuum of information when change is anticipated. They are demotivated by the duplicity of informal standards when none is formally set. 4. Appreciate Appreciate peoples achievements in public. Even those who shun the limelight will appreciate being commended in a low key way in public. Be specific. Do not say, I just want to commend Jim for the great job he is doing. The assembled group, including Jim, is likely to have two or more views on what behaviors Doing a great job reflects. Say instead, I want to commend Jim for going out of his way to help our customer stay in business. Jim not only came in on Saturday morning when the customer called in a panic, but he personally delivered the part. Jim did not have to do that. In choosing to do so, he has helped us all get a reputation for superior service. Nobody is left in doubt as to what behavior, with what consequences, is being commended. It is this precise behavior which will be reinforced. 5. Reprimand Reprimand in private. People will talk and the fact a reprimand has been given will be known. Embarrassing people in public will de-motivate. Reprimanding in a constructive manner will motivate. Reprimand as soon as possible after the event and be as specific about the behavior which is unacceptable and the rationale as to why it is unacceptable as for appreciating behavior. Be specific about the consequences of repeating the behavior. Ask for advice on what can be done to help the person stop the behavior. Work together to eliminate the unacceptable behavior. If the reprimand does not work, counsel to improve or find employment where the behavior is acceptable. Do not shirk your responsibility to all the other people exhibiting acceptable behaviors, so that a distinction between acceptable and unacceptable behavior is made. 6. Build Build peoples strengths and help them eliminate their weaknesses. Make it unacceptable to continue in a position where a weakness is a liability for the team. However, make it acceptable to have a weakness on which people are willing to work. Help them help themselves. Allow more skilled team members to help them. Monitor progress and appreciate progress. Identify, appreciate and build peoples strengths, especially those who have weaknesses they are working on. Use all resources at your disposal you can afford. Not only use coaching and training but ask people to train and coach others. Nothing makes people realize their true strengths and weaknesses more than when they are asked to teach. Nothing builds self esteem like being successful at teaching someone else well and watching their behavior change.

7. Delegate Delegate your responsibilities to people who have the competence to execute some of your tasks. State clearly what is expected, setting a standard which is mutually understood. Delegate the authority. Do not double check them as routine. At the beginning of delegation monitor their output as part of an greed standard of handing over delegation. At an agreed level of execution quality, stop monitoring except for normal quality audit purposes. Make sure the data required to execute the tasks is easily accessible. At work, being responsible, having the competency, authority and tools to be responsible and having the trust of your colleagues, superiors and subordinates is the most powerful motivator of all. Find something, even the smallest thing that an individual can actually be responsible for and you will be on the road to a motivated workforce. Organization culture Organizational culture is the collective behavior of humans that are part of an organization, it is also formed by the organization values, visions, norms, working language, systems, and symbols, it includes beliefs and habits.[1] It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving, and even thinking and feeling.[2] Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. [3] Ravasi and Schultz (2006) state that organizational culture is a set of shared mental assumptions that guide interpretation and action in organizations by defining appropriate behavior for various situations. At the same time although a company may have "own unique culture", in larger organizations, there is a diverse and sometimes conflicting cultures that coexist due to different characteristics of the management team.[4] The organizational culture may also have negative and positive aspects.[4] Usage Organizational culture refers to culture in any type of organization be it school, university, not-for-profit groups, government agencies or business entities. In business, terms such as corporate culture and company culture are sometimes used to refer to a similar concept.[5][6] Although the idea that the term became known in businesses in the late 80s and early 90s is widespread,[7][8] in fact corporate culture was already used by managers and addressed in sociology, cultural studies and organizational theory in the beginning of the 80s.[9][10] The idea about the culture and overall environment and characteristics of organization, in fact, was first and similarly approached with the notion of organizational climate in the 60s and 70s, and the terms now are somewhat overlapping.[11][12] Part of or equivalent to As a part of organization Culture as a variable takes on the perspective that culture is something that an organization has. Culture is just one entity that adds to the

organization as a whole. Culture can be manipulated and altered depending on leadership and members. This perspective believes in a strong culture where everyone buys into it[clarification needed].[13] The same as the organization Culture as Root Metaphor takes the perspective that culture is something the organization is. Culture is basic, but with personal experiences people can view it a little differently. This view of an organization is created through communication and symbols, or competing metaphors.[13] The organizational communication perspective on culture views culture in three different ways: Traditionalism: Views culture through objective things such as stories, rituals, and symbols Interpretivism: Views culture through a network of shared meanings (organization members sharing subjective meanings) Critical-Interpretivism: Views culture through a network of shared meanings as well as the power struggles created by a similar network of competing meanings Types of organizational cultures Several methods have been used to classify organizational culture. While there is no single "type" of organizational culture and organizational cultures vary widely from one organization to the next, commonalities do exist and some researchers have developed models to describe different indicators of organizational cultures. Some are described below: Hofstede Main: Hofstede's cultural dimensions theory Hofstede (1980) looked for national differences between over 100,000 of IBM's employees in 50 different countries and three regions of the world, in an attempt to find aspects of culture that might influence business behavior. He suggested about cultural differences existing in regions and nations, and the importance of international awareness and multiculturalism for the own cultural introspection. Cultural differences reflect differences in thinking and social action, and even in "mental programs", a term Hofstede uses for predictable behaviour. Hofstede relates culture to ethnic and regional groups, but also organizations, profession, family, to society and subcultural groups, national political systems and legislation, etc. Hofstede suggests of the need of changing "mental programs" with changing behaviour first which will lead to value change and he suggests that however certain groups like Jews, Gypsies and Basques have maintained their identity through centuries without changing. Hofstede demonstrated that there are national and regional cultural groupings that affect the behavior of organizations and identified four dimensions of culture in his study of national cultures: Power distance (Mauk Mulder, 1977) - Different societies find different solutions on social inequality. Although invisible, inside organizations power inequality of the "boss-subordinates relationships" is functional

and according to Hofstede reflects the way inequality is addressed in the society. "According to Mulder's Power Distance Reduction theory subordinates will try to reduce the power distance between themselves and their bosses and bosses will try to maintain or enlarge it", but there is also a degree to which a society expects there to be differences in the levels of power. A high score suggests that there is an expectation that some individuals wield larger amounts of power than others. A low score reflects the view that all people should have equal rights. Uncertainty avoidance is the coping with uncertainty about the future. Society copes with it with technology, law and religion (however different societies have different ways to addressing it), and according to Hofstede organizations deal with it with technology, law and rituals or in two ways - rational and non-rational, where rituals being the non-rational. Hofstede listed as rituals the memos and reports, some parts of the accounting system, large part of the planning and control systems, and the nomination of experts. Individualism vs. collectivism - disharmony of interests on personal and collective goals (Parsons and Shils, 1951). Hofstede brings that society's expectations of Individualism/Collectivism will be reflected by the employee inside the organization. Collectivist societies will have more emotional dependence of members on their organizations, when in equilibrium - organization is expected to show responsibility on members. Extreme individualism is seen in the US, in fact in US collectivism is seen as "bad". Other cultures and societies than the US will therefore seek to resolve social and organizational problems in ways different than the American one. Hofstede says that capitalist market economy fosters individualism and competition and depends on it but individualism is also related to the development of middle class. Research indicates that some people and cultures might have both high individualism and high collectivism, for example, and someone who highly values duty to his or her group does not necessarily give a low priority to personal freedom and selfsufficiency.[citation needed] Masculinity vs. femininity - reflect whether certain society is predominantly male or female in terms of cultural values, gender roles and power relations. O'Reilly, Chatman, and Caldwell Two common models and their associated measurement tools have been developed by OReilly et al. and Denison. OReilly, Chatman & Caldwell (1991) developed a model based on the belief that cultures can be distinguished by values that are reinforced within organizations. Their Organizational Profile Model (OCP) is a self reporting tool which makes distinctions according seven categories - Innovation, Stability, Respect for People, Outcome Orientation, Attention to Detail, Team Orientation, and Aggressiveness. The model is not intended to

measure how organizational culture effects organizational performance, rather it measures associations between the personalities of individuals in the organization and the organization's culture. Employee values are measured against organizational values to predict employee intentions to stay, and predict turnover.[14] This is done through instrument like Organizational Culture Profile (OCP) to measure employee commitment.[14] Daniel Denisons model (1990) asserts that organizational culture can be described by four general dimensions Mission, Adaptability, Involvement and Consistency. Each of these general dimensions is further described by the following three sub-dimensions: Mission - Strategic Direction and Intent, Goals and Objectives and Vision Adaptability - Creating Change, Customer Focus and Organizational Learning Involvement - Empowerment, Team Orientation and Capability Development Consistency - Core Values, Agreement, Coordination/Integration Denisons model also allows cultures to be described broadly as externally or internally focused as well as flexible versus stable. The model has been typically used to diagnose cultural problems in organizations. Deal and Kennedy Deal and Kennedy (1982) defined organizational culture as the way things get done around here. Deal and Kennedy created a model of culture that is based on 4 different types of organizations. They each focus on how quickly the organization receives feedback, the way members are rewarded, and the level of risks taken.[15] Deal and Kennedy's Four Cultures: Work-hard, play-hard culture[15] This has rapid feedback/reward and low risk Resulting in: Stress coming from quantity of work rather than uncertainty. High-speed action leading to high-speed recreation. Examples: Restaurants, software companies. Tough-guy macho culture[15] This has rapid feedback/reward and high risk, resulting in the following: Stress coming from high risk and potential loss/gain of reward. Focus on the present rather than the longer-term future. Examples: police, surgeons, sports. Process culture[16][15] This has slow feedback/reward and low risk, resulting in the following: Low stress, plodding work, comfort and security. Stress that comes from internal politics and stupidity of the system. Development of bureaucracies and other ways of maintaining the status quo. Focus on security of the past and of the future. Examples: banks, insurance companies. Bet-the-company culture This has slow feedback/reward and high risk, resulting in the following: Stress coming from high risk and delay before knowing if actions have paid

off. The long view is taken, but then much work is put into making sure things happen as planned. Examples: aircraft manufacturers, oil companies. Edgar Schein According to Schein (1992), culture is the most difficult organizational attribute to change, outlasting organizational products, services, founders and leadership and all other physical attributes of the organization. His organizational model illuminates culture from the standpoint of the observer, described by three cognitive levels of organizational culture. At the first and most cursory level of Schein's model is organizational attributes that can be seen, felt and heard by the uninitiated observer collectively known as artifacts. Included are the facilities, offices, furnishings, visible awards and recognition, the way that its members dress, how each person visibly interacts with each other and with organizational outsiders, and even company slogans, mission statements and other operational creeds. Artifacts comprise the physical components of the organization that relay cultural meaning. Daniel Denison (1990) describes artifacts as the tangible aspects of culture shared by members of an organization. Verbal, behavioral and physical artifacts are the surface manifestations of organizational culture. Rituals, the collective interpersonal behavior and values as demonstrated by that behavior, constitute the fabric of an organization's culture The contents of myths, stories, and sagas reveal the history of an organization and influence how people understand what their organization values and believes. Language, stories, and myths are examples of verbal artifacts and are represented in rituals and ceremonies. Technology and art exhibited by members or an organization are examples of physical artifacts. The next level deals with the professed culture of an organization's members - the values. Shared values are individuals preferences regarding certain aspects of the organizations culture (e.g. loyalty, customer service). At this level, local and personal values are widely expressed within the organization. Basic beliefs and assumptions include individuals' impressions about the trustworthiness and supportiveness of an organization, and are often deeply ingrained within the organizations culture. Organizational behavior at this level usually can be studied by interviewing the organization's membership and using questionnaires to gather attitudes about organizational membership. At the third and deepest level, the organization's tacit assumptions are found. These are the elements of culture that are unseen and not cognitively identified in everyday interactions between organizational members. Additionally, these are the elements of culture which are often taboo to discuss inside the organization. Many of these 'unspoken rules' exist without the conscious knowledge of the membership. Those with sufficient experience to understand this deepest level of organizational culture usually become acclimatized to its attributes over time, thus reinforcing the invisibility of their existence. Surveys and casual interviews

with organizational members cannot draw out these attributesrather much more in-depth means is required to first identify then understand organizational culture at this level. Notably, culture at this level is the underlying and driving element often missed by organizational behaviorists. Using Schein's model, understanding paradoxical organizational behaviors becomes more apparent. For instance, an organization can profess highly aesthetic and moral standards at the second level of Schein's model while simultaneously displaying curiously opposing behavior at the third and deepest level of culture. Superficially, organizational rewards can imply one organizational norm but at the deepest level imply something completely different. This insight offers an understanding of the difficulty that organizational newcomers have in assimilating organizational culture and why it takes time to become acclimatized. It also explains why organizational change agents usually fail to achieve their goals: underlying tacit cultural norms are generally not understood before would-be change agents begin their actions. Merely understanding culture at the deepest level may be insufficient to institute cultural change because the dynamics of interpersonal relationships (often under threatening conditions) are added to the dynamics of organizational culture while attempts are made to institute desired change. Factors and elements Gerry Johnson (1988) described a cultural web, identifying a number of elements that can be used to describe or influence organizational culture: The Paradigm: What the organization is about, what it does, its mission, its values. Control Systems: The processes in place to monitor what is going on. Role cultures would have vast rulebooks. There would be more reliance on individualism in a power culture. Organizational Structures: Reporting lines, hierarchies, and the way that work flows through the business. Power Structures: Who makes the decisions, how widely spread is power, and on what is power based? Symbols: These include organizational logos and designs, but also extend to symbols of power such as parking spaces and executive washrooms. Rituals and Routines: Management meetings, board reports and so on may become more habitual than necessary. Stories and Myths: build up about people and events, and convey a message about what is valued within the organization. These elements may overlap. Power structures may depend on control systems, which may exploit the very rituals that generate stories which may not be true. According to Schein (1992), the two main reasons why cultures develop in organizations is due to external adaptation and internal integration. External adaptation reflects an evolutionary approach to organizational culture and suggests that cultures develop and persist because they help

an organization to survive and flourish. If the culture is valuable, then it holds the potential for generating sustained competitive advantages. Additionally, internal integration is an important function since social structures are required for organizations to exist. Organizational practices are learned through socialization at the workplace. Work environments reinforce culture on a daily basis by encouraging employees to exercise cultural values. Organizational culture is shaped by multiple factors, including the following: External environment Industry Size and nature of the organizations workforce Technologies the organization uses The organizations history and ownership Communicative Indicators There are many different types of communication that contribute in creating an organizational culture:[17] Metaphors such as comparing an organization to a machine or a family reveal employees shared meanings of experiences at the organization. Stories can provide examples for employees of how to or not to act in certain situations. Rites and ceremonies combine stories, metaphors, and symbols into one. Several different kinds of rites that affect organizational culture: o Rites of passage: employees move into new roles o Rites of degradation: employees have power taken away from them o Rites of enhancement: public recognition for an employees accomplishments o Rites of renewal: improve existing social structures o Rites of conflict reduction: resolve arguments between certain members or groups o Rites of integration: reawaken feelings of membership in the organization Reflexive comments are explanations, justifications, and criticisms of our own actions. This includes: o Plans: comments about anticipated actions o Commentaries: comments about action in the present o Accounts: comments about an action or event that has already occurred Such comments reveal interpretive meanings held by the speaker as well as the social rules they follow. Fantasy Themes are common creative interpretations of events that reflect beliefs, values, and goals of the organization. They lead to rhetorical visions, or views of the organization and its environment held by organization members.

Schema Schemata (plural of schema) are knowledge structures a person forms from past experiences, allowing the person to respond to similar events more efficiently in the future by guiding the processing of information. A person's schemata are created through interaction with others, and thus inherently involve communication. Stanley G. Harris (1994) argues that five categories of in-organization schemata are necessary for organizational culture: Self-in-organization schemata: a person's concept of oneself within the context of the organization, including her/his personality, roles, and behavior. Person-in-organization schemata: a person's memories, impressions, and expectations of other individuals within the organization. Organization schemata: a subset of person schemata, a person's generalized perspective on others as a whole in the organization. Object/concept-in-organization schemata: knowledge an individual has of organization aspects other than of other persons. Event-in-organization schemata: a person's knowledge of social events within an organization. All of these categories together represent a person's knowledge of an organization. Organizational culture is created when the schematas (schematic structures) of differing individuals across and within an organization come to resemble each other (when any one person's schemata come to resemble another person's schemata because of mutual organizational involvement), primarily done through organizational communication, as individuals directly or indirectly share knowledge and meanings. Strong/weak cultures Strong culture is said to exist where staff respond to stimulus because of their alignment to organizational values. In such environments, strong cultures help firms operate like well-oiled machines, cruising along with outstanding execution and perhaps minor tweaking of existing procedures here and there. Conversely, there is weak culture where there is little alignment with organizational values, and control must be exercised through extensive procedures and bureaucracy. Research shows that organizations that foster strong cultures have clear values that give employees a reason to embrace the culture. A "strong" culture may be especially beneficial to firms operating in the service sector since members of these organizations are responsible for delivering the service and for evaluations important constituents make about firms. Research indicates that organizations may derive the following benefits from developing strong and productive cultures: Better aligning the company towards achieving its vision, mission, and goals High employee motivation and loyalty

Increased team cohesiveness among the company's various departments and divisions Promoting consistency and encouraging coordination and control within the company Shaping employee behavior at work, enabling the organization to be more efficient Where culture is strong, people do things because they believe it is the right thing to do, and there is a risk of another phenomenon, groupthink. "Groupthink" was described by Irving Janis. He defined it as "a quick and easy way to refer to a mode of thinking that people engage when they are deeply involved in a cohesive in-group, when the members' strivings for unanimity override their motivation to realistically appraise alternatives of action." (Irving Janis, 1972, p. 9) This is a state in which even if they have different ideas, do not challenge organizational thinking, and therefore there is a reduced capacity for innovative thoughts. This could occur, for example, where there is heavy reliance on a central charismatic figure in the organization, or where there is an evangelical belief in the organization' values, or also in groups where a friendly climate is at the base of their identity (avoidance of conflict). In fact, groupthink is very common and happens all the time, in almost every group. Members that are defiant are often turned down or seen as a negative influence by the rest of the group because they bring conflict. Innovative organizations need individuals who are prepared to challenge the status quo, groupthink or bureaucracy, and need procedures to implement new ideas effectively. Healthy organizational cultures Organizations should strive for what is considered a "healthy" organizational culture in order to increase productivity, growth, efficiency and reduce counterproductive behavior and turnover of employees. A variety of characteristics describe a healthy culture, including: Acceptance and appreciation for diversity Regard for and fair treatment of each employee as well as respect for each employees contribution to the company Employee pride and enthusiasm for the organization and the work performed Equal opportunity for each employee to realize their full potential within the company Strong communication with all employees regarding policies and company issues Strong company leaders with a strong sense of direction and purpose Ability to compete in industry innovation and customer service, as well as price Lower than average turnover rates (perpetuated by a healthy culture) Investment in learning, training, and employee knowledge Additionally, performance oriented cultures have been shown to possess statistically better financial growth. Such cultures possess high employee

involvement, strong internal communications and an acceptance and encouragement of a healthy level of risk-taking in order to achieve innovation. Additionally, organizational cultures that explicitly emphasize factors related to the demands placed on them by industry technology and growth will be better performers in their industries. According to Kotter and Heskett (1992), organizations with adaptive cultures perform much better than organizations with unadaptive cultures. An adaptive culture translates into organizational success; it is characterized by managers paying close attention to all of their constituencies, especially customers, initiating change when needed, and taking risks. An unadaptive culture can significantly reduce a firm's effectiveness, disabling the firm from pursuing all its competitive/operational options. Charles Handy Charles Handy (1976), popularized Roger Harrison (1972) with linking organizational structure to organizational culture. The described four types of culture are:[18] "Power Culture" concentrates power among a small group or a central figure and its control is radiating from its center like a web. Power Cultures need only a few rules and little bureaucracy but swift in decisions can ensue. In the "Role Culture" authorities are delegated as such within a highly defined structure. These organizations form hierarchical bureaucracies, where power derives from the personal position and rearly from an expert power. Control is made by procedures (which are highly valued), strict roles descriptions and authority definitions. These organizations have consistent system and are very predictable. In a "Task Culture" teams are formed to solve particular problems. So power derives from expertise with team requiring expertise, it is all a small team approach, where people are highly skilled and specialist in their own markets of experience. These cultures often feature the multiple reporting lines of a matrix structure. "Person Culture" is formed where all individuals believe themselves superior to the organization. It can become difficult for such organizations to continue to operate, since the concept of an organization suggests that a group of like-minded individuals pursue organizational goals. However some professional partnerships operate well as person cultures, because each partner brings a particular expertise and clientele to the firm. Kim Cameron and Robert Quinn See also: Archetype. Kim Cameron and Robert Quinn (1999) made a research on organizational effectiveness and success. Based on the Competing Values Framework, they developed the Organizational Culture Assessment Instrument that distinguishes four culture types.

Competing values produce polarities like flexibility vs. stability and internal vs. external focus - these two polarities were found to be most important in defining organizational success. The polarities construct a quadrant with four types of culture: Clan culture (internal focus and flexible) - A friendly workplace where leaders act like father figures. Adhocracy culture (external focus and flexible) - A dynamic workplace with leaders that stimulate innovation. Market culture (external focus and controlled) - A competitive workplace with leaders like hard drivers Hierarchy culture (internal focus and controlled) - A structured and formalized workplace where leaders act like coordinators. Cameron & Quinn designated six key aspects that will form organizational culture which can be assessed in the Organizational Culture Assessment Instrument (OCAI) thus producing a mix of the four archetypes of culture. Each organization or team will have its unique mix of culture types. Clan cultures are most strongly associated with positive employee attitudes and product and service quality, whereas market cultures are most strongly related with innovation and financial effectiveness criteria. The primary belief in market cultures is that clear goals and contingent rewards motivate employees to aggressively perform and meet stakeholders' expectations; a core belief in clan cultures is that the organizations trust in and commitment to employees facilitates open communication and employee involvement. These differing results suggest that it is important for executive leaders to consider the match between strategic initiatives and organizational culture when determining how to embed a culture that produces competitive advantage. By assessing the current organizational culture as well as the preferred situation, the gap and direction to change can be made visible as a first step to changing organizational culture. Robert A. Cooke Robert A. Cooke, PhD, defines culture as the behaviors that members believe are required to fit in and meet expectations within their organization. The Organizational Culture Inventory measures twelve behavioral norms that are grouped into three general types of cultures: Constructive cultures, in which members are encouraged to interact with people and approach tasks in ways that help them meet their higher-order satisfaction needs. Passive/defensive cultures, in which members believe they must interact with people in ways that will not threaten their own security. Aggressive/defensive cultures, in which members are expected to approach tasks in forceful ways to protect their status and security. Constructive cultures Constructive cultures are where people are encouraged to be in communication with their co-workers, and work as teams, rather than only as individuals. In positions where people do a complex job, rather than

something simple like a mechanic one, this sort of culture is an efficient one.[19] 1. Achievement: completing a task successfully, typically by effort, courage, or skill (pursue a standard of excellence) (explore alternatives before acting) - Based on the need to attain high-quality results on challenging projects, the belief that outcomes are linked to one's effort rather than chance and the tendency to personally set challenging yet realistic goals. People high in this style think ahead and plan, explore alternatives before acting and learn from their mistakes. 2. Self-Actualizing: realization or fulfillment of one's talents and potentialities - considered as a drive or need present in everyone (think in unique and independent ways) (do even simple tasks well) Based on needs for personal growth, self-fulfillment and the realisation of one's potential. People with this style demonstrate a strong desire to learn and experience things, creative yet realistic thinking and a balanced concern for people and tasks. 3. Humanistic-Encouraging: help others to grow and develop (resolve conflicts constructively) - Reflects an interest in the growth and development of people, a high positive regard for them and sensitivity to their needs. People high in this style devote energy to coaching and counselling others, are thoughtful and considerate and provide people with support and encouragement. 4. Affiliative: treat people as more valuable than things (cooperate with others) - Reflects an interest in developing and sustaining pleasant relationships. People high in this style share their thoughts and feelings, are friendly and cooperative and make others feel a part of things. Organizations with constructive cultures encourage members to work to their full potential, resulting in high levels of motivation, satisfaction, teamwork, service quality, and sales growth. Constructive norms are evident in environments where quality is valued over quantity, creativity is valued over conformity, cooperation is believed to lead to better results than competition, and effectiveness is judged at the system level rather than the component level. These types of cultural norms are consistent with (and supportive of) the objectives behind empowerment, total quality management, transformational leadership, continuous improvement, reengineering, and learning organizations.[20][21][22] Passive/defensive cultures Norms that reflect expectations for members to interact with people in ways that will not threaten their own security are in the Passive/Defensive Cluster. The four Passive/Defensive cultural norms are: Approval Conventional Dependent

 Avoidance In organizations with Passive/Defensive cultures, members feel pressured to think and behave in ways that are inconsistent with the way they believe they should in order to be effective. People are expected to please others (particularly superiors) and avoid interpersonal conflict. Rules, procedures, and orders are more important than personal beliefs, ideas, and judgment. Passive/Defensive cultures experience a lot of unresolved conflict and turnover, and organizational members report lower levels of motivation and satisfaction. leadership Leadership has been described as a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task".[1] Other in-depth definitions of leadership have also emerged. Leadership is "organizing a group of people to achieve a common goal". The leader may or may not have any formal authority. Students of leadership have produced theories involving traits,[2] situational interaction, function, behavior, power, vision and values,[3] charisma, and intelligence, among others. Somebody whom people follow: somebody who guides or directs others. Early western history The search for the characteristics or traits of leaders has been ongoing for centuries. History's greatest philosophical writings from Plato's Republic to Plutarch's Lives have explored the question "What qualities distinguish an individual as a leader?" Underlying this search was the early recognition of the importance of leadership and the assumption that leadership is rooted in the characteristics that certain individuals possess. This idea that leadership is based on individual attributes is known as the "trait theory of leadership". The trait theory was explored at length in a number of works in the 19th century. Most notable are the writings of Thomas Carlyle and Francis Galton, whose works have prompted decades of research.[4] In Heroes and Hero Worship (1841), Carlyle identified the talents, skills, and physical characteristics of men who rose to power. In Galton's Hereditary Genius (1869), he examined leadership qualities in the families of powerful men. After showing that the numbers of eminent relatives dropped off when moving from first degree to second degree relatives, Galton concluded that leadership was inherited. In other words, leaders were born, not developed. Both of these notable works lent great initial support for the notion that leadership is rooted in characteristics of the leader. Rise of alternative theories In the late 1940s and early 1950s, however, a series of qualitative reviews of these studies (e.g., Bird, 1940;[5] Stogdill, 1948;[6] Mann, 1959[7]) prompted researchers to take a drastically different view of the driving forces behind leadership. In reviewing the extant literature, Stogdill and Mann found that while some traits were common across a number of

studies, the overall evidence suggested that persons who are leaders in one situation may not necessarily be leaders in other situations. Subsequently, leadership was no longer characterized as an enduring individual trait, as situational approaches (see alternative leadership theories below) posited that individuals can be effective in certain situations, but not others. This approach dominated much of the leadership theory and research for the next few decades. Reemergence of trait theory New methods and measurements were developed after these influential reviews that would ultimately reestablish the trait theory as a viable approach to the study of leadership. For example, improvements in researchers' use of the round robin research design methodology allowed researchers to see that individuals can and do emerge as leaders across a variety of situations and tasks.[8] Additionally, during the 1980s statistical advances allowed researchers to conduct meta-analyses, in which they could quantitatively analyze and summarize the findings from a wide array of studies. This advent allowed trait theorists to create a comprehensive picture of previous leadership research rather than rely on the qualitative reviews of the past. Equipped with new methods, leadership researchers revealed the following: Individuals can and do emerge as leaders across a variety of situations and tasks.[8] Significant relationships exist between leadership and such individual traits as: intelligence[9] adjustment[9] extraversion[9] conscientiousness[10][11][12] openness to experience[11][13] general self-efficacy[14][15] While the trait theory of leadership has certainly regained popularity, its reemergence has not been accompanied by a corresponding increase in sophisticated conceptual frameworks.[16] Specifically, Zaccaro (2007)[16] noted that trait theories still: 1. focus on a small set of individual attributes such as Big Five personality traits, to the neglect of cognitive abilities, motives, values, social skills, expertise, and problem-solving skills; 2. fail to consider patterns or integrations of multiple attributes; 3. do not distinguish between those leader attributes that are generally not malleable over time and those that are shaped by, and bound to, situational influences; 4. do not consider how stable leader attributes account for the behavioral diversity necessary for effective leadership. Attribute pattern approach Considering the criticisms of the trait theory outlined above, several researchers have begun to adopt a different perspective of leader individual

differencesthe leader attribute pattern approach.[15][17][18][19][20] In contrast to the traditional approach, the leader attribute pattern approach is based on theorists' arguments that the influence of individual characteristics on outcomes is best understood by considering the person as an integrated totality rather than a summation of individual variables.[19][21] In other words, the leader attribute pattern approach argues that integrated constellations or combinations of individual differences may explain substantial variance in both leader emergence and leader effectiveness beyond that explained by single attributes, or by additive combinations of multiple attributes. Behavioral and style theories Main article: Managerial grid model In response to the early criticisms of the trait approach, theorists began to research leadership as a set of behaviors, evaluating the behavior of successful leaders, determining a behavior taxonomy, and identifying broad leadership styles.[22] David McClelland, for example, posited that leadership takes a strong personality with a well-developed positive ego. To lead, selfconfidence and high self-esteem are useful, perhaps even essential.[23] A graphical representation of the managerial grid model Kurt Lewin, Ronald Lipitt, and Ralph White developed in 1939 the seminal work on the influence of leadership styles and performance. The researchers evaluated the performance of groups of eleven-year-old boys under different types of work climate. In each, the leader exercised his influence regarding the type of group decision making, praise and criticism (feedback), and the management of the group tasks (project management) according to three styles: authoritarian, democratic, and laissez-faire.[24] The managerial grid model is also based on a behavioral theory. The model was developed by Robert Blake and Jane Mouton in 1964 and suggests five different leadership styles, based on the leaders' concern for people and their concern for goal achievement.[25] Positive reinforcement B.F. Skinner is the father of behavior modification and developed the concept of positive reinforcement. Positive reinforcement occurs when a positive stimulus is presented in response to a behavior, increasing the likelihood of that behavior in the future.[26] The following is an example of how positive reinforcement can be used in a business setting. Assume praise is a positive reinforcer for a particular employee. This employee does not show up to work on time every day. The manager of this employee decides to praise the employee for showing up on time every day the employee actually shows up to work on time. As a result, the employee comes to work on time more often because the employee likes to be praised. In this example, praise (the stimulus) is a positive reinforcer for this employee because the employee arrives at work on time (the behavior) more frequently after being praised for showing up to work on time. The use of positive reinforcement is a successful and growing technique used by leaders to motivate and attain desired behaviors from subordinates. Organizations such as Frito-Lay, 3M, Goodrich, Michigan Bell,

and Emery Air Freight have all used reinforcement to increase productivity. [27] Empirical research covering the last 20 years suggests that reinforcement theory has a 17 percent increase in performance. Additionally, many reinforcement techniques such as the use of praise are inexpensive, providing higher performance for lower costs. Situational and contingency theories Main articles: Fiedler contingency model, Vroom-Yetton decision model, Path-goal theory, and Hersey-Blanchard situational theory Situational theory also appeared as a reaction to the trait theory of leadership. Social scientists argued that history was more than the result of intervention of great men as Carlyle suggested. Herbert Spencer (1884) (and Karl Marx) said that the times produce the person and not the other way around.[28] This theory assumes that different situations call for different characteristics; according to this group of theories, no single optimal psychographic profile of a leader exists. According to the theory, "what an individual actually does when acting as a leader is in large part dependent upon characteristics of the situation in which he functions."[29] Some theorists started to synthesize the trait and situational approaches. Building upon the research of Lewin et al., academics began to normalize the descriptive models of leadership climates, defining three leadership styles and identifying which situations each style works better in. The authoritarian leadership style, for example, is approved in periods of crisis but fails to win the "hearts and minds" of followers in day-to-day management; the democratic leadership style is more adequate in situations that require consensus building; finally, the laissez-faire leadership style is appreciated for the degree of freedom it provides, but as the leaders do not "take charge", they can be perceived as a failure in protracted or thorny organizational problems.[30] Thus, theorists defined the style of leadership as contingent to the situation, which is sometimes classified as contingency theory. Four contingency leadership theories appear more prominently in recent years: Fiedler contingency model, Vroom-Yetton decision model, the path-goal theory, and the HerseyBlanchard situational theory. The Fiedler contingency model bases the leader's effectiveness on what Fred Fiedler called situational contingency. This results from the interaction of leadership style and situational favorability (later called situational control). The theory defined two types of leader: those who tend to accomplish the task by developing good relationships with the group (relationship-oriented), and those who have as their prime concern carrying out the task itself (task-oriented).[31] According to Fiedler, there is no ideal leader. Both task-oriented and relationship-oriented leaders can be effective if their leadership orientation fits the situation. When there is a good leader-member relation, a highly structured task, and high leader position power, the situation is considered a "favorable situation". Fiedler found that task-oriented leaders are more effective in extremely favorable

or unfavorable situations, whereas relationship-oriented leaders perform best in situations with intermediate favorability. Victor Vroom, in collaboration with Phillip Yetton (1973)[32] and later with Arthur Jago (1988),[33] developed a taxonomy for describing leadership situations, which was used in a normative decision model where leadership styles were connected to situational variables, defining which approach was more suitable to which situation.[34] This approach was novel because it supported the idea that the same manager could rely on different group decision making approaches depending on the attributes of each situation. This model was later referred to as situational contingency theory.[35] The path-goal theory of leadership was developed by Robert House (1971) and was based on the expectancy theory of Victor Vroom.[36] According to House, the essence of the theory is "the meta proposition that leaders, to be effective, engage in behaviors that complement subordinates' environments and abilities in a manner that compensates for deficiencies and is instrumental to subordinate satisfaction and individual and work unit performance".[37] The theory identifies four leader behaviors, achievementoriented, directive, participative, and supportive, that are contingent to the environment factors and follower characteristics. In contrast to the Fiedler contingency model, the path-goal model states that the four leadership behaviors are fluid, and that leaders can adopt any of the four depending on what the situation demands. The path-goal model can be classified both as a contingency theory, as it depends on the circumstances, and as a transactional leadership theory, as the theory emphasizes the reciprocity behavior between the leader and the followers. The situational leadership model proposed by Hersey and Blanchard suggests four leadership-styles and four levels of follower-development. For effectiveness, the model posits that the leadership-style must match the appropriate level of follower-development. In this model, leadership behavior becomes a function not only of the characteristics of the leader, but of the characteristics of followers as well.[38] Functional theory Main article: Functional leadership model Functional leadership theory (Hackman & Walton, 1986; McGrath, 1962) is a particularly useful theory for addressing specific leader behaviors expected to contribute to organizational or unit effectiveness. This theory argues that the leader's main job is to see that whatever is necessary to group needs is taken care of; thus, a leader can be said to have done their job well when they have contributed to group effectiveness and cohesion (Fleishman et al., 1991; Hackman & Wageman, 2005; Hackman & Walton, 1986). While functional leadership theory has most often been applied to team leadership (Zaccaro, Rittman, & Marks, 2001), it has also been effectively applied to broader organizational leadership as well (Zaccaro, 2001). In summarizing literature on functional leadership (see Kozlowski et al. (1996), Zaccaro et al. (2001), Hackman and Walton (1986), Hackman & Wageman (2005), Morgeson (2005)), Klein, Zeigert, Knight, and Xiao (2006) observed

five broad functions a leader performs when promoting organization's effectiveness. These functions include environmental monitoring, organizing subordinate activities, teaching and coaching subordinates, motivating others, and intervening actively in the group's work. A variety of leadership behaviors are expected to facilitate these functions. In initial work identifying leader behavior, Fleishman (1953) observed that subordinates perceived their supervisors' behavior in terms of two broad categories referred to as consideration and initiating structure. Consideration includes behavior involved in fostering effective relationships. Examples of such behavior would include showing concern for a subordinate or acting in a supportive manner towards others. Initiating structure involves the actions of the leader focused specifically on task accomplishment. This could include role clarification, setting performance standards, and holding subordinates accountable to those standards. Transactional and transformational theories Main articles: Transactional leadership and Transformational leadership Eric Berne[39] first analyzed the relations between a group and its leadership in terms of transactional analysis. The transactional leader (Burns, 1978)[40] is given power to perform certain tasks and reward or punish for the team's performance. It gives the opportunity to the manager to lead the group and the group agrees to follow his lead to accomplish a predetermined goal in exchange for something else. Power is given to the leader to evaluate, correct, and train subordinates when productivity is not up to the desired level, and reward effectiveness when expected outcome is reached. Idiosyncrasy Credits, first posited by Edward Hollander (1971) is one example of a concept closely related to transactional leadership. Emotions Leadership can be perceived as a particularly emotion-laden process, with emotions entwined with the social influence process.[41] In an organization, the leader's mood has some effects on his/her group. These effects can be described in three levels:[42] 1. The mood of individual group members. Group members with leaders in a positive mood experience more positive mood than do group members with leaders in a negative mood. The leaders transmit their moods to other group members through the mechanism of emotional contagion.[42] Mood contagion may be one of the psychological mechanisms by which charismatic leaders influence followers.[43] 2. The affective tone of the group. Group affective tone represents the consistent or homogeneous affective reactions within a group. Group affective tone is an aggregate of the moods of the individual members of the group and refers to mood at the group level of analysis. Groups with leaders in a positive mood have a more positive affective tone than do groups with leaders in a negative mood.[42] 3. Group processes like coordination, effort expenditure, and task strategy. Public expressions of mood impact how group members

think and act. When people experience and express mood, they send signals to others. Leaders signal their goals, intentions, and attitudes through their expressions of moods. For example, expressions of positive moods by leaders signal that leaders deem progress toward goals to be good. The group members respond to those signals cognitively and behaviorally in ways that are reflected in the group processes.[42] In research about client service, it was found that expressions of positive mood by the leader improve the performance of the group, although in other sectors there were other findings.[44] Beyond the leader's mood, her/his behavior is a source for employee positive and negative emotions at work. The leader creates situations and events that lead to emotional response. Certain leader behaviors displayed during interactions with their employees are the sources of these affective events. Leaders shape workplace affective events. Examples feedback giving, allocating tasks, resource distribution. Since employee behavior and productivity are directly affected by their emotional states, it is imperative to consider employee emotional responses to organizational leaders.[45] Emotional intelligence, the ability to understand and manage moods and emotions in the self and others, contributes to effective leadership within organizations.[44] Neo-emergent theory Main article: Functional leadership model The Neo-emergent leadership theory (from the Oxford school of leadership) espouses that leadership is created through the emergence of information by the leader or other stakeholders, not through the true actions of the leader himself. In other words, the reproduction of information or stories form the basis of the perception of leadership by the majority. It is well known that the great naval hero Lord Nelson often wrote his own versions of battles he was involved in, so that when he arrived home in England he would receive a true hero's welcome.[citation needed] In modern society, the press, blogs and other sources report their own views of a leader, which may be based on reality, but may also be based on a political command, a payment, or an inherent interest of the author, media, or leader. Therefore, it can be contended that the perception of all leaders is created and in fact does not reflect their true leadership qualities at all. Styles Leadership style refers to a leader's behavior. It is the result of the philosophy, personality, and experience of the leader. Rhetoric specialists have also developed models for understanding leadership (Robert Hariman, Political Style,[46] Philippe-Joseph Salazar, L'Hyperpolitique. Technologies politiques De La Domination[47]). Different situations call for different leadership styles. In an emergency when there is little time to converge on an agreement and where a designated authority has significantly more experience or expertise than the rest of the team, an autocratic leadership style may be most effective;

however, in a highly motivated and aligned team with a homogeneous level of expertise, a more democratic or laissez-faire style may be more effective. The style adopted should be the one that most effectively achieves the objectives of the group while balancing the interests of its individual members.[48] Autocratic or authoritarian style Under the autocratic leadership style, all decision-making powers are centralized in the leader, as with dictators. Leaders do not entertain any suggestions or initiatives from subordinates. The autocratic management has been successful as it provides strong motivation to the manager. It permits quick decision-making, as only one person decides for the whole group and keeps each decision to him/herself until he/she feels it needs to be shared with the rest of the group.[48] Participative or democratic style The democratic leadership style consists of the leader sharing the decisionmaking abilities with group members by promoting the interests of the group members and by practicing social equality. Laissez-faire or free rein style A person may be in a leadership position without providing leadership, leaving the group to fend for itself. Subordinates are given a free hand in deciding their own policies and methods. Narcissistic leadership Main article: Narcissistic leadership Various academics such as Kets de Vries, Maccoby, and Thomas have identified narcissistic leadership as an important and common leadership style. Toxic leadership Main article: Toxic leader A toxic leader is someone who has responsibility over a group of people or an organization, and who abuses the leader-follower relationship by leaving the group or organization in a worse-off condition than when he/she first found them. Performance In the past, some researchers have argued that the actual influence of leaders on organizational outcomes is overrated and romanticized as a result of biased attributions about leaders (Meindl & Ehrlich, 1987). Despite these assertions, however, it is largely recognized and accepted by practitioners and researchers that leadership is important, and research supports the notion that leaders do contribute to key organizational outcomes (Day & Lord, 1988; Kaiser, Hogan, & Craig, 2008). To facilitate successful performance it is important to understand and accurately measure leadership performance. Job performance generally refers to behavior that is expected to contribute to organizational success (Campbell, 1990). Campbell identified a number of specific types of performance dimensions; leadership was one of the dimensions that he identified. There is no consistent, overall definition of

leadership performance (Yukl, 2006). Many distinct conceptualizations are often lumped together under the umbrella of leadership performance, including outcomes such as leader effectiveness, leader advancement, and leader emergence (Kaiser et al., 2008). For instance, leadership performance may be used to refer to the career success of the individual leader, performance of the group or organization, or even leader emergence. Each of these measures can be considered conceptually distinct. While these aspects may be related, they are different outcomes and their inclusion should depend on the applied or research focus. The Ontological/Phenomenological Model for Leadership One of the more recent definitions of leadership comes from Werner Erhard, Michael C. Jensen, Steve Zaffron, and Kari Granger who describe leadership as an exercise in language that results in the realization of a future that wasnt going to happen anyway, which future fulfills (or contributes to fulfilling) the concerns of the relevant parties. This definition ensures that leadership is talking about the future and includes the fundamental concerns of the relevant parties. This differs from relating to the relevant parties as followers and calling up an image of a single leader with others following. Rather, a future that fulfills on the fundamental concerns of the relevant parties indicates the future that wasnt going to happen is not the idea of the leader, but rather is what emerges from digging deep to find the underlying concerns of those who are impacted by the leadership.[49] Contexts Organizations An organization that is established as an instrument or means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Employees receive a salary and enjoy a degree of tenure that safeguards them from the arbitrary influence of superiors or of powerful clients. The higher one's position in the hierarchy, the greater one's presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.
[50]

In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the informal organization that underlies the formal structure. The informal organization expresses the personal objectives and goals of the individual membership. Their objectives and goals may or may not coincide with those of the formal organization. The informal organization represents an extension of the social structures that

generally characterize human life the spontaneous emergence of groups and organizations as ends in themselves. In prehistoric times, humanity was preoccupied with personal security, maintenance, protection, and survival. Now humanity spends a major portion of waking hours working for organizations. The need to identify with a community that provides security, protection, maintenance, and a feeling of belonging has continued unchanged from prehistoric times. This need is met by the informal organization and its emergent, or unofficial, leaders.[51]
[52]

Leaders emerge from within the structure of the informal organization. Their personal qualities, the demands of the situation, or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. Instead of the authority of position held by an appointed head or chief, the emergent leader wields influence or power. Influence is the ability of a person to gain co-operation from others by means of persuasion or control over rewards. Power is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment.[51] A leader is a person who influences a group of people towards a specific result. It is not dependent on title or formal authority. (Elevos, paraphrased from Leaders, Bennis, and Leadership Presence, Halpern & Lubar.) Ogbonnia (2007) defines an effective leader "as an individual with the capacity to consistently succeed in a given condition and be viewed as meeting the expectations of an organization or society." Leaders are recognized by their capacity for caring for others, clear communication, and a commitment to persist.[53] An individual who is appointed to a managerial position has the right to command and enforce obedience by virtue of the authority of his position. However, she or he must possess adequate personal attributes to match this authority, because authority is only potentially available to him/her. In the absence of sufficient personal competence, a manager may be confronted by an emergent leader who can challenge her/his role in the organization and reduce it to that of a figurehead. However, only authority of position has the backing of formal sanctions. It follows that whoever wields personal influence and power can legitimize this only by gaining a formal position in the hierarchy, with commensurate authority.[51] Leadership can be defined as one's ability to get others to willingly follow. Every organization needs leaders at every level.[54] Management Over the years the philosophical terminology of "management" and "leadership" have, in the organizational context, been used both as synonyms and with clearly differentiated meanings. Debate is fairly common about whether the use of these terms should be restricted, and generally reflects an awareness of the distinction made by Burns (1978) between "transactional" leadership (characterized by e.g. emphasis on procedures, contingent reward, management by exception) and

"transformational" leadership (characterized by e.g. charisma, personal relationships, creativity).[40] Group leadership In contrast to individual leadership, some organizations have adopted group leadership. In this situation, more than one person provides direction to the group as a whole. Some organizations have taken this approach in hopes of increasing creativity, reducing costs, or downsizing. Others may see the traditional leadership of a boss as costing too much in team performance. In some situations, the team members best able to handle any given phase of the project become the temporary leaders. Additionally, as each team member has the opportunity to experience the elevated level of empowerment, it energizes staff and feeds the cycle of success.[55] Leaders who demonstrate persistence, tenacity, determination, and synergistic communication skills will bring out the same qualities in their groups. Good leaders use their own inner mentors to energize their team and organizations and lead a team to achieve success.[56] According to the National School Boards Association (USA):[57] These Group Leaderships or Leadership Teams have specific characteristics: Characteristics of a Team There must be an awareness of unity on the part of all its members. There must be interpersonal relationship. Members must have a chance to contribute, and learn from and work with others. The members must have the ability to act together toward a common goal. Ten characteristics of well-functioning teams: Purpose: Members proudly share a sense of why the team exists and are invested in accomplishing its mission and goals. Priorities: Members know what needs to be done next, by whom, and by when to achieve team goals. Roles: Members know their roles in getting tasks done and when to allow a more skillful member to do a certain task. Decisions: Authority and decision-making lines are clearly understood. Conflict: Conflict is dealt with openly and is considered important to decision-making and personal growth. Personal traits: members feel their unique personalities are appreciated and well utilized. Norms: Group norms for working together are set and seen as standards for every one in the groups. Effectiveness: Members find team meetings efficient and productive and look forward to this time together. Success: Members know clearly when the team has met with success and share in this equally and proudly. Training: Opportunities for feedback and updating skills are provided and taken advantage of by team members.

of our every day lives. It provides the foundation for our attitudes and drives our actions. Typically, the first person anyone learns how to motivate is their self. You can't expect to be good at motivating others until you are a master at motivating yourself. My name is Chris Evers and the purpose of my website isn't to sell you a book or a CD on motivation. Instead, my goal is to have everyone that enters this site to have a better understanding of what motivation is and to come away with a few practical ideas they can use in the field. I discuss several different aspects of motivation and explore ways leaders and managers can build a motivating workplace to achieve employee need satisfaction and goal attainment. you find on this site. If there is something you would like to see changed or added to this site please send me an e-mail to chrisevers@rocketmail.com You can also see my most recent thoughts and commentaries on the blog page. My name is Chris Evers and the purpose of my website isn't to sell you a book or a CD on motivation. Instead, my goal is to have everyone that enters this site to have a better understanding of what motivation is and to come away with a few practical ideas they can use in the field. I discuss several different aspects of motivation and explore ways leaders and managers can build a motivating workplace to achieve employee need satisfaction and goal attainment.