Role of Knowledge Management in Improving Performance of Operations Departments

Introduction Knowledge is arguably the most important asset an organization has. Its good management is crucial if the organization is to succeed in a competitive environment. In the past, many organizations did not recognize this and few resources were dedicated to managing the knowledge that the organizations had.Advertising We will write a custom research paper sample on Role of Knowledge Management in Improving Performance of Operations Departments specifically for you for only $16.05 $11/page Learn More However, this has changed in the course of the last decade and knowledge management (KM) has emerged as an important field that provides the rationale for managing knowledge in order to achieve the increased productivity of the organization. Baskerville and Alina (2006) note that knowledge management has become such an important concept that many executives today characterize their most important task as â€Å"leveraging organizational knowledgeâ₠¬  (p.83). It has been recognized the KM plays a crucial role in the accomplishment of organizational goals and KM has therefore become one of the necessary tools for modern organizations. Against this background, this paper will set out to discuss the role that knowledge management plays in improving the performance of operations departments of an organization. The paper will demonstrate how KM strategies can help an organization to improve its performance and therefore remain competitive. Overview of Knowledge Management Knowledge is a â€Å"justified personal belief† and it is a mix of framed experiences, values, contextual information, and expert insights. It provides the framework through which new information or experience is evaluated or incorporated. Knowledge is a very important and strategic resource for an organization. However, it can only be utilized properly if an organization makes an effort to discovery patterns and rules where knowledge works. This can only be achieved through the proper management of the knowledge; a task that is essential for a business to improve its efficiency and effectiveness in delivering of services and goods to its clients. Knowledge management is defined by King (2009, p.4) as the â€Å"planning, organizing, motivating, and controlling of people, processes and systems in the organization to ensure that its knowledge-related assets are improved and effectively employed†. KM aims to increase competition between organizations and increase the level of effective decision making. Management of the knowledge base is a very important issue and King (2009) proposes that for KM to be optimal, a large number of employees should be relied upon to contribute their knowledge. Relying on specialists to enter and manage the knowledge base greatly limits the effectiveness of KM Systems. Role of KM in Performance Improvement KM helps the organization to identify the factors which lead to superior performance and capita lize or make further improvements on these aspects. Baskerville and Alina (2006) state that for many organizations, these factors include: organizational creativity, high quality of products and services offered by the organization, and enhanced effectiveness of operations.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The operations department can use KM to identify these factors and once this has been done, the department is able to make improvements on them and hence increase its productivity. KM plays a very important role in enabling the department to make the best use of organizational knowledge. This kind of knowledge is very beneficial since most of it is laboriously developed over a long duration of time through the trial and error method. Baskerville and Alina (2006) state that most organizations fail to make good use of this knowledge because they lack KM systems and t herefore, the organization does not know what it knows. Decision making is one of the most important roles of management in any organization. The quality of decisions made often determines the future success of a business and with this consideration, many organization invest resources in measures to assist in the decision making process. KM plays a very major role in the decision making process of operations departments (King 2009). Normally, knowledge has a more critical function in decision making process than resource and data. KM helps to sort the knowledge and define it as accurate and non-accurate knowledge. The managers are then able to make the best decision since they can identify the contexts where the knowledge works by using KM. Increased productivity is a core goal for all organizations and for this to be achieved; the performance of each employee has to be optimal. KM assists in increasing employee performance since it increases the interaction between co-workers. Ther e is therefore a higher level of knowledge sharing among employees and this increases the chances of organizational goals being met. Employees are able to keep track of projects in progress and easily obtain the assistance of their peers though KM. As has been noted, the productivity of the operations department depends on the ability of the individuals who make up the departmental team. Therefore, the productivity of the department is dependent on the skills possessed by the employees. When some employees lack proper skills, the total output of the entire department is reduced. KM assists in ensuring that all employees possess the desired level of skills. This is achieved since KM assists in the sharing of knowledge between employees and at the same time the prevention of non-educated employees (Baskerville Alina 2006).Advertising We will write a custom research paper sample on Role of Knowledge Management in Improving Performance of Operations Departments specifically for yo u for only $16.05 $11/page Learn More In an increasingly competitive market, innovation and creativity have become the defining characteristics of successful organizations. Big profitable organizations such as Microsoft and Wal-Mart are continuously looking for new ideas and innovations in order to stay ahead of their competition. Innovation has today become paramount to the growth of a company and in most cases it comes from individuals in the company. This innovation can then be utilized to advance the goals and objectives of an organization. Skinner (2007) asserts that the presence of innovation alone is not good enough; innovations must be â€Å"disseminated and ‘reach’ target users for uptake and utilization to be possible† (p.53). KM assists in the innovation process of the department in a number of ways. To begin with, it increases knowledge sharing among employees which results in the generation of new ideas and innovations by the employees. KM also captures the reasons behind the adoption of disseminated innovation and the practitioners are therefore made aware of new innovations and the relative advantages that they offer. Skinner (2007) reveals that previous experiences as articulated in the KM system will inform user’s current practices. In addition to this, they will integrate their existing knowledge as they adopt and implement new innovations. Many organizations are faced with the need to improve their organizational performance so that they can acquire greater benefits and better cope with the changes they constantly face. A chief consideration in KM is that the best outcomes can be achieved if the organization is engaged in a continuous learning process. This means that the efficiency and effectiveness of the operations department can only be guaranteed if the members of the department are willing to learn before, during and after activities. Chen and An-Pin (2006) suggests that KM enhances t he learning process of the individual through the provision of the necessary information. It then focuses on knowledge flows and the process of creation, organization, and retrieval of knowledge. The capability of workers is enhanced since their core competencies are supported by KM. By using staff knowledge, the department is able to improve its processes and therefore operate in the most efficient and effective way. Businesses are constantly seeking ways to decrease their operational costs and therefore increase their profit margins. KM offers a good way of achieving this by helping to get rid of some of the activities that previously cost the organization. Some KM systems automate tasks previously performed manually such as the training of new staff members therefore decreasing the costs associated with such actions (Chen An-Pin 2006).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In a company that has a high number of new employees either due to high rate of employee turnover or business growth that necessitates hiring new employees, such a KM assists greatly in keeping training costs manageable. The KM also makes sure that knowledge transfer takes place in a seamless manner and the new employees are able to gain the necessary knowledge to work efficiently in the shortest time possible. Profitable growth strategies can only be achieved by understanding the needs of the customers and responding appropriately to them. Many organizations therefore invest significant resources in an attempt to increase the knowledge of their managers on the key drivers of customer satisfaction. Chen and An-Pin (2006) highlights that when business leaders have an expanded knowledge of the key drivers of customer satisfaction and business process excellence, the can engage in strategies that expand their consumer base and hence increase the company’s profitability. The rela tionship that the organization has with its customer base is also important and organizations seek ways to improve these relations. KM helps to achieve these goals by assisting in the development of customer relationships and therefore increasing shareholder equity. A common reality for most organization is that key staff can leave at any time. The loss of such key personnel is normally accompanied by a loss of knowledge which is of critical use to the organization. Shaw and Baker (2003) states that this â€Å"knowledge erosion† which is caused by people leaving the organization or even changing jobs within it can be damaging to the organization since knowledge plays a crucial role in decision making and running the organization. KM can help deal with this by enabling a department to have a â€Å"memory† that goes beyond the people in it. This knowledge is archived and remains with the specific department even if the key staff is lost. Discussion While many organizatio ns acknowledge the importance of KM, many of them do not know how to go about implementing it. Razi and Abdul-Karim (2010) reveal that contemporary organizations have spent billions of dollars in the implementation of KM and from this, only marginal improvements have been attained with failure rates at the implementation stage ranging up to 70%. The risks of failure during KM implementations are therefore high and if an organization is to reap the benefits of KM, ways of mitigating these risks need to be looked at. Research indicates that there is a relationship between workers and successful KM implementation and as such, organizations need to determine the individual members responsible for KM implementation. These members are responsible for the creation, promotion and identification of knowledge in the organization and their role in KM is crucial. Having a KM system in place is a good move but it is not enough; there also needs to be a metric for measuring the relative success o f KM strategies. Chen (2008) suggests that performance evaluation should be an integral part of the KM plan of any company. Such performance evaluation will help the department to better understand its KM level and offer a basis to improve its KM. Conclusion Knowledge management has emerged as a potent way of increasing the efficiency of an organization. It helps organizations to accomplish their objectives and remain profitable in an increasingly competitive market. This paper set out to discuss the role that knowledge management plays in improving the performance of operations departments in an organization. The paper began by describing what KM is and its relative significance in organizational growth. The paper has demonstrated how a lack of KM can seriously hinder operational departments. It has revealed that for knowledge to be of optimal use, it has to be shared among various parties in the organization. The development of skills and professional qualification in the companyà ¢â‚¬â„¢s staff can also be assisted by KM. While some organizations may have questions as to whether it is worthwhile to invest in KM, this paper has demonstrated that here are numerous benefits that the operations department can get from KM implementation. References Baskerville, R Alina, D 2006, â€Å"The theoretical foundations of knowledge management†, Knowledge Management Research Practice, 4(1): 83–105. Chen, M An-Pin, C 2006, â€Å"Knowledge management performance evaluation: a decade review from 1995 to 2004†, Journal of Information Science, 32 (1): 17–38. King, WR 2009, Knowledge Management and Organizational Learning, Springer, Boston. Chen, R 2008, An Evaluation Method for Enterprise Knowledge Management Performance Based on Linguistic Variable, International Seminar on Business and Information Management, Shandong, China Razi, M Abdul-Karim, N 2010, An Instrument to Assess Organizational Readiness to Implement Knowledge Management Process, Proceedings Knowledge Management 5th International Conference, Georgia. Shaw, D Baker, B 2003, â€Å"Achieving closure through knowledge management strategy. Electronic Journal on Knowledge Management, 1(2): 197-204. Skinner, K 2007, â€Å"Developing a tool to measure knowledge exchange outcomes†, The Canadian Journal of Program Evaluation, 22(1): 49–73. This research paper on Role of Knowledge Management in Improving Performance of Operations Departments was written and submitted by user Muhammad S. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

How to Structure a Business Report

How to Structure a Business Report How to Structure a Business Report The content of a business report will depend on what you are writing about. Even the writing style may depend on who you are writing for (although clear, concise and formal is usually best). However, there is a general structure that most business reports follow. In this post, then, we’ll look at how to structure a business report for maximum clarity and professionalism. 1. Title Page Every business report should feature a title page. The title itself should clearly set out what the report is about. Typically, you should also include your name and the date of the report. 2. Summary Most business reports begin with a summary of its key points. Try to include: A brief description of what the report is about How the report was completed (e.g., data collection methods) The main findings from the research Key conclusions and recommendations A paragraph or two should suffice for this in shorter business reports. However, for longer or more complex reports, you may want to include a full executive summary. 3. Table of Contents Short business reports may not need a table of contents, especially if they include a summary. But longer reports should set out the title of each section and the structure of the report. Make sure the headings here match those used in the main text. You may also want to number the sections. 4. Introduction The introduction is the first part of the report proper. Use it to set out the brief you received when you were asked to compile the report. This will frame the rest of the report by providing: Background information (e.g., business history or market information) The purpose of the report (i.e., what you set out to achieve) Its scope (i.e., what the report will cover and what it will ignore) These are known as the â€Å"terms of reference† for the business report. 5. Methods and Findings If you are conducting original research, include a section about your methods. This may be as simple as setting out the sources you are using and why you chose them. But it could also include how you have collected and analyzed the data used to draw your conclusions. After this, you will need to explain your findings. This section will present the results of your research clearly and concisely, making sure to cover all the main points set out in the brief. One tip here is to break the findings down into subsections, using headings to guide the reader through your data. Using charts and illustrations, meanwhile, can help get information across visually, but make sure to label them clearly so the reader knows how they relate to the text. 6. Conclusions and Recommendations The last main section of your report will cover conclusions and recommendations. The conclusion section should summarize what you have learned from the report. If you have been asked to do so, you should also recommend potential courses of action based on your conclusions. If you are not sure what to suggest here, think back to the objectives set out in your brief. 7. References If you have used any third-party sources while writing your report, list them in a bibliography after the main report. This could include other business documents, academic articles, or even news reports. The key is to show what you have based your findings and conclusions upon. 8. Appendices (If Applicable) Finally, you may have gathered extra documentation during your research, such as interview transcripts, marketing material, or financial data. Including this in the main report would make it too long and unfocused, but you can add it to an appendix (or multiple appendices) at the end of the document. It will then be available should your reader need it. Summary: How to Structure a Business Report If you are writing a business report, aim to structure it as follows: Title Page – Include a clear, informative title, your name, and the date. Summary – A brief summary of what the report is about, the data collection methods used, the findings of the report, and any recommendations you want to make. Table of Contents – For longer reports, include a table of contents. Introduction –Set out the brief you were given for the report. Methods and Findings – A description of any methods of data collection and analysis used while composing the report, as well as your findings. Conclusions and Recommendations – Any conclusions reached while writing the report, plus recommendations for what to do next (if required). References – Sources used in your report listed in a bibliography. Appendices – If you have supporting material (e.g., interview transcripts, raw data), add it to an appendix at the end of the document. Don’t forget, too, that a business report should be clear, concise, and formal. And if you would like help making sure that your business writing is easy to read and error free, just let us know.

How to Structure a Business Report

How to Structure a Business Report How to Structure a Business Report The content of a business report will depend on what you are writing about. Even the writing style may depend on who you are writing for (although clear, concise and formal is usually best). However, there is a general structure that most business reports follow. In this post, then, we’ll look at how to structure a business report for maximum clarity and professionalism. 1. Title Page Every business report should feature a title page. The title itself should clearly set out what the report is about. Typically, you should also include your name and the date of the report. 2. Summary Most business reports begin with a summary of its key points. Try to include: A brief description of what the report is about How the report was completed (e.g., data collection methods) The main findings from the research Key conclusions and recommendations A paragraph or two should suffice for this in shorter business reports. However, for longer or more complex reports, you may want to include a full executive summary. 3. Table of Contents Short business reports may not need a table of contents, especially if they include a summary. But longer reports should set out the title of each section and the structure of the report. Make sure the headings here match those used in the main text. You may also want to number the sections. 4. Introduction The introduction is the first part of the report proper. Use it to set out the brief you received when you were asked to compile the report. This will frame the rest of the report by providing: Background information (e.g., business history or market information) The purpose of the report (i.e., what you set out to achieve) Its scope (i.e., what the report will cover and what it will ignore) These are known as the â€Å"terms of reference† for the business report. 5. Methods and Findings If you are conducting original research, include a section about your methods. This may be as simple as setting out the sources you are using and why you chose them. But it could also include how you have collected and analyzed the data used to draw your conclusions. After this, you will need to explain your findings. This section will present the results of your research clearly and concisely, making sure to cover all the main points set out in the brief. One tip here is to break the findings down into subsections, using headings to guide the reader through your data. Using charts and illustrations, meanwhile, can help get information across visually, but make sure to label them clearly so the reader knows how they relate to the text. 6. Conclusions and Recommendations The last main section of your report will cover conclusions and recommendations. The conclusion section should summarize what you have learned from the report. If you have been asked to do so, you should also recommend potential courses of action based on your conclusions. If you are not sure what to suggest here, think back to the objectives set out in your brief. 7. References If you have used any third-party sources while writing your report, list them in a bibliography after the main report. This could include other business documents, academic articles, or even news reports. The key is to show what you have based your findings and conclusions upon. 8. Appendices (If Applicable) Finally, you may have gathered extra documentation during your research, such as interview transcripts, marketing material, or financial data. Including this in the main report would make it too long and unfocused, but you can add it to an appendix (or multiple appendices) at the end of the document. It will then be available should your reader need it. Summary: How to Structure a Business Report If you are writing a business report, aim to structure it as follows: Title Page – Include a clear, informative title, your name, and the date. Summary – A brief summary of what the report is about, the data collection methods used, the findings of the report, and any recommendations you want to make. Table of Contents – For longer reports, include a table of contents. Introduction –Set out the brief you were given for the report. Methods and Findings – A description of any methods of data collection and analysis used while composing the report, as well as your findings. Conclusions and Recommendations – Any conclusions reached while writing the report, plus recommendations for what to do next (if required). References – Sources used in your report listed in a bibliography. Appendices – If you have supporting material (e.g., interview transcripts, raw data), add it to an appendix at the end of the document. Don’t forget, too, that a business report should be clear, concise, and formal. And if you would like help making sure that your business writing is easy to read and error free, just let us know.

How to Structure a Business Report

How to Structure a Business Report How to Structure a Business Report The content of a business report will depend on what you are writing about. Even the writing style may depend on who you are writing for (although clear, concise and formal is usually best). However, there is a general structure that most business reports follow. In this post, then, we’ll look at how to structure a business report for maximum clarity and professionalism. 1. Title Page Every business report should feature a title page. The title itself should clearly set out what the report is about. Typically, you should also include your name and the date of the report. 2. Summary Most business reports begin with a summary of its key points. Try to include: A brief description of what the report is about How the report was completed (e.g., data collection methods) The main findings from the research Key conclusions and recommendations A paragraph or two should suffice for this in shorter business reports. However, for longer or more complex reports, you may want to include a full executive summary. 3. Table of Contents Short business reports may not need a table of contents, especially if they include a summary. But longer reports should set out the title of each section and the structure of the report. Make sure the headings here match those used in the main text. You may also want to number the sections. 4. Introduction The introduction is the first part of the report proper. Use it to set out the brief you received when you were asked to compile the report. This will frame the rest of the report by providing: Background information (e.g., business history or market information) The purpose of the report (i.e., what you set out to achieve) Its scope (i.e., what the report will cover and what it will ignore) These are known as the â€Å"terms of reference† for the business report. 5. Methods and Findings If you are conducting original research, include a section about your methods. This may be as simple as setting out the sources you are using and why you chose them. But it could also include how you have collected and analyzed the data used to draw your conclusions. After this, you will need to explain your findings. This section will present the results of your research clearly and concisely, making sure to cover all the main points set out in the brief. One tip here is to break the findings down into subsections, using headings to guide the reader through your data. Using charts and illustrations, meanwhile, can help get information across visually, but make sure to label them clearly so the reader knows how they relate to the text. 6. Conclusions and Recommendations The last main section of your report will cover conclusions and recommendations. The conclusion section should summarize what you have learned from the report. If you have been asked to do so, you should also recommend potential courses of action based on your conclusions. If you are not sure what to suggest here, think back to the objectives set out in your brief. 7. References If you have used any third-party sources while writing your report, list them in a bibliography after the main report. This could include other business documents, academic articles, or even news reports. The key is to show what you have based your findings and conclusions upon. 8. Appendices (If Applicable) Finally, you may have gathered extra documentation during your research, such as interview transcripts, marketing material, or financial data. Including this in the main report would make it too long and unfocused, but you can add it to an appendix (or multiple appendices) at the end of the document. It will then be available should your reader need it. Summary: How to Structure a Business Report If you are writing a business report, aim to structure it as follows: Title Page – Include a clear, informative title, your name, and the date. Summary – A brief summary of what the report is about, the data collection methods used, the findings of the report, and any recommendations you want to make. Table of Contents – For longer reports, include a table of contents. Introduction –Set out the brief you were given for the report. Methods and Findings – A description of any methods of data collection and analysis used while composing the report, as well as your findings. Conclusions and Recommendations – Any conclusions reached while writing the report, plus recommendations for what to do next (if required). References – Sources used in your report listed in a bibliography. Appendices – If you have supporting material (e.g., interview transcripts, raw data), add it to an appendix at the end of the document. Don’t forget, too, that a business report should be clear, concise, and formal. And if you would like help making sure that your business writing is easy to read and error free, just let us know.

How to Craft Professional Book Reviews under Time Pressure

How to Craft Professional Book Reviews under Time Pressure How to Craft Professional Book Reviews under Time Pressure Different readers will always be keen on your thoughts about the books youve read if you follow the following advice in this article. When writing professional book reviews, you ought to have two objectives. First, to educate the reader about the content of the book, second, to present an assessment concerning the book’s quality. Before You Begin Writing Start reading the book, from the title, considering the relevant information that can be revealed from the title, preface, and table of contents. As you read the whole book, make notes from the passages to cite in your review, as well as to clarify the following information: What is the book about? Does it fit its genre? What is the writer’s perspective? Do you agree with it? Who is your favorite character, and why? Did the story keep you guessing? What is your favorite part of the book, and why? Is there any part of the book you truly dislike? Which and why? As an audience, can you flow with the authors style, whether formal or informal? Does the author’s conclusion convince you? What did the book achieve? Is more work required? Compare the book with others written by this author, or books in this genre by other writers Your opinion? If you could change something, what might it be? (If you wish you could change the ending, dont reveal it!) Writing Your Review Set the tone of the review. Hook the reader with your opening sentence, so they are keen on reading the rest of the review. Begin with a few sentences describing what the book is really about. Ensure your opening statements directly relate to your critical response to the book and keep them concise. Relevant information about the author including reputation, qualifications, and their previous work should be included in the introduction. The fundamental themes you want to discuss may also be mentioned, as this gives the readers an idea of the context of book analysis. Write a summary of the book. You can begin the overview of the themes and main points in the book after setting up your introduction. The summary needs to be kept short, to the point, and informative. Make use of quotes or paraphrases from the book to back up your summary without uncovering plot twists or giving any spoilers. The crux of the book is the critical analysis, and this is usually done after your summary of the book’s themes end. You have to be clear and direct when writing this. Talk about what you specifically liked about the book, and point out anything you disliked about it. Try not to spend more than one-third of the paper summarizing the book. Avoid plagiarism and ensure your essay is based primarily on evidence drawn from a careful reading of the book. The objective is to give a coherent piece with a reasonable argument. Thus, review the book you read, not the book you wish the author wrote. Wrap up the review. Â  After you have argued your position on the book clearly, sum up your analysis of in few sentences, and this should naturally flow into your conclusion. Talk about questions, which were not covered, pay attention to unsettled points concerning the topic of the analyzed book, and problems that still need to be solved or require deeper analysis. Do not introduce new material at this point. You could suggest the kind of reader youd recommend the book to. For instance, youths, older people, fans of relationship drama/comedy/ mystery stories. Then give the readers your farewell statement, something to think about! Sometimes the best closing is a dilemma that will stick in readers minds. A starred or numerical rating is not a bad idea too. Consider these tips when writing your original book review and enjoy the result.

Capacity in the BeiJing hotel market, after the BeiJing Olympics 2008 Dissertation

Capacity in the BeiJing hotel market, after the BeiJing Olympics 2008 - Dissertation Example Beijing is certainly no exception to this rule. It is important, however, that hotel development not result in a prolonged period of excess room inventory. Hotel overcapacity in China, in particular Beijing, has been a concern since the Chinese borders were opened up back in the late 1970s. Since that time, the number of tourist arrivals has increased nearly every year, providing a boon to nearly aspect of the tourist business. As a consequence, hotel development has escalated as well throughout the past four decades. The issue, however, is that it appears that hotel growth has now exceeded the growth in the overall tourist and business travel segment, resulting in sporadic periods of hotel overcapacity throughout the region. Since Beijing was awarded the Olympic games back at the beginning of this century, new hotel developments quickly drew the interest of tourist officials in anticipation of the record number of visitors that would grace the limits of Beijing during 2008. Hotel de velopment increased in fervour, yet the concern remained about overcapacity. The economic ramifications of such a phenomenon is quite serious. If there are simply too many hotel rooms available for a long stretch of time, hotels must lower rates to fill up existing rooms, which cuts into their bottom line. In the end, hotels fail and shutter their doors, leaving vacant buildings scattered throughout the city. This has occurred in other urban areas throughout China, Asia, and the rest of the world. It is a situation the Beijing is desperately trying to avoid. Now that the Olympics are over, it is time to conduct a feasibility study to determine if the numbers of hotels in Beijing are currently at capacity. At the same time, it is important to discuss what would happen if hotels continue to develop at a rate exceeding the number of visitors to the city. That had been the aim and goal of this project. Beijing is a city that has seemingly limitless potential for tourism operators. From the city itself, millions of tourists can find quality lodging and still be able to explore regions outside of Beijing and return the same day. The variety of tourist attractions, world class shopping malls, entertainment facilities have turned it into a regular holiday destination for people throughout the region, Asia, and internationally. As such, the demand for lodging at in the budget and luxury categories alike continues to grow. Developers, however, must be constantly leery of reaching a situation of overcapacity. As Chapter 2 will discuss, other cites throughout China have already experienced the economic ramifications that come with reaching such a phenomenon, so the industry would be wise to consider this

How SMEs Differ From Their Larger Counterparts Essay - 1

How SMEs Differ From Their Larger Counterparts - Essay Example Some of the main factors that distinguish SMEs from their larger counterparts include layers of management, individual responsibility, communication, speed of decision-making, attitude towards risk, allocation of resources, formal practices, organizational structure, flexibility, marketing and advertising, environment, and politics. Let us discuss each of them in some detail in order to know how these factors create differences between SMEs and large corporations. 2.1 Layers of Management One of the main differences between SMEs and large companies is the layers of management. SMEs generally have very few layers of management as compared to large companies. They have less number of managers and employees because of simple and short organizational structure. The organizational chart of SMEs also looks flat because of fewer layers of management. â€Å"Small business organizational charts are often flat; they look like two or three stacked rows of bricks with one or two bricks on top† (Ingram n.d., p.1).