CSS Solved Business Administration Past Papers | Discuss the following with examples in relation to the services sector: 1- Management Information System, 2- Globalization across different cultures, 3- Meaning and importance of entrepreneurship, 4- Reinventing Organization
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Management Information System
Managers in the globalized era rely heavily on information to assess the performance of employees and the organization. However, it has become increasingly difficult to manage and assess large amounts of data in hard form; therefore, several information systems have emerged. A management information system is one of the software that helps in providing managers with the required data on a regular basis.
“A computerized system that provides information and support for effective managerial decision-making”
“An information system designed to produce reports for management and others within the organization”
- Types of MIS
The management information system is linked with the organization’s database and operating information system. Management information system produces several types of reports meant to cater to different needs.
- Information reporting system
A system that organizes information in the form of pre-specified reports that managers use in day-to-day decision making
- Decision support system
An interactive computer-based system that uses computer models and specialized databases to support organizations decision making
- Executive information system
A management information system designed to facilitate strategic decision-making at the highest levels of management by providing executives with easy access to timely and relevant information.
Globalization Across Different Cultures:
Globalization has emerged as the biggest reality of the 21st century that has infiltrated different cultures. It has resulted in the diffusion of commodities, ideas and services on the one hand and on the other hand, it has resulted in the standardization of cultural expressions across the globe. One evident and universal example is the presence of McDonald’s across the globe.
“The process by which one culture’s experiences, values and ideas are disseminated throughout the world through various means”
“Spread of different cultures, customs, or ideas of a place or people to rest of the world.”
- Factors behind globalization across different cultures:
- Migration of people into different countries
- Intercultural communication especially through social media
- The emergence of Multinationals to explore new markets for economic benefit.
- Benefits of Globalization across different cultures
- Similarities in need and market:
Globalization has facilitated a great deal in creating unanimous demand and market segments across the globe. For example, the demand for internet service providers or fast food has become unanimous. Therefore, it has made it easy for companies like KFC, Wateen and Vodafone to compete in several markets.
- Economic growth:
Another major advantage is associated with economic growth as people, ideas, and products interact. People migrate from one culture to another, and even companies expand across several markets in search of economic benefits. Companies like Amazon and PayPal are providing services across different countries with standard service delivery.
- New ideas and trends:
Frequent changes in fashion, garments and accessories are associated mainly with globalization across different cultures; interestingly, people absorb new trends and cultures from other societies, hence, creating new demand.
- Drawbacks for globalization across different cultures:
- Challenges for small local businesses to survive, especially in the developing world.
- Widening of economic inequality and exploitation of labour.
- The environment has suffered the most due to continuously increasing economic activities.
Meaning and Importance of Entrepreneurship:
Entrepreneurship is the backbone of the economy that indicates its growth stability and future prospects. Small businesses are the secret behind every successful economy; in recent the service sector has also seen a steady in entrepreneurship.
Meaning of Entrepreneurship:
“Someone who recognizes a viable idea for business product or service and carries it out”.
“Businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture.”
“The process of initiating a business venture, organizing the necessary resources and assuming the associated risk and reward.”
“The process of seeking business opportunities under the conditions of risk.”
- Importance of Entrepreneurship:
- Job Creation:
One biggest importance of entrepreneurship is its ability to create jobs. Research indicates that the age of a business matters more than its size. Companies like Amazon and Airlift employ thousands of people to provide delivery services.
One of the hallmarks of entrepreneurship is innovation. The number of small business entrepreneurs is steadily on the rise due to their focus on innovation. From internet service providers to companies like Amazon, innovation has been the key to their success. Moreover, the trend of online services in different sectors is also a form of entrepreneurship.
- Assisting big Businesses:
Another considerable importance of entrepreneurship is its ability to assist big businesses. Most of the big businesses outsource their services to smaller entrepreneurs; for e.g., Microsoft outsources its code-writing functions to many small entrepreneurs. Similarly, many other mega service providers like Amazon, airlift etc., use the service of small distribution companies.
- Job Creation:
Reinventing Organization is a book written by Fredric Laloux and published in 2014. The book explores the new paradigms of organizational design that go beyond the concept of traditional hierarchy and bureaucratic models. This book presented the concept of Teal organization, the one in which the organization is able to take advantage of the collective intelligence of its employees, hence creating a more fulfilling and meaningful work experience. Laloux identified five stages of organizational structure:
- Red paradigm:
The first real organization emerged about 10000 years ago; however, it had no clear division of labour, hierarchy or system of accountability.
- Amber paradigm:
About 4000 years ago, the concept of institution emerged, driven mainly by religion. These organizations had a strict division of work and processes.
- Orange paradigm:
This era brought about the birth of modern-day organizations that worked on resource allocation, appraisal and incentives. Growth and innovation were the mainstay.
- Green paradigm:
At this stage, organizations started thinking beyond success and failure. Their main focus shifted towards building long-term relationships and value for its clients.
- Teal paradigm:
Laloux advocated that we were about to enter a new paradigm that resembled Maslow’s self-actualization level. The concept of teal organization is built on three key principles:
Giving employees the freedom of decision-making and taking responsibility for work.
Encouraging the employees to consider their organization as their second home so that they do not differentiate between their personal and professional life.
- Evolutionary purpose:
Organizations have a purpose to exist that is known as the mission or vision; employees are encouraged to align their personal ambitions with that of the organization.
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