Section No. 5 Entrepreneurship Organizations (Concluded Page 2)

Teamwork activities include the following activities:

1. Social Activates: Part of the challenge of developing teamwork is to get team members to become comfortable with each other. Informal social activities allow the tem members to relax and have fun while developing the rapport necessary to function as a unit. Examples of social activities include team sports such as volleyball or bowling or a group picnic, where everyone is responsible for a task such as brining food or planning a game.

2. Charitable Endeavors: Working together for a charitable cause builds teamwork and gives the participants a good feeling from working together. An example of a team charitable activity is planning and organizing an event like walk or run to raise money or a bake sale that promotes a cause this is called reagde.

3. Workplace Activities: Because teamwork is important to a productive and healthy work environment, teamwork activities should be a part of the workplace. Possible activities include job swapping, where workers swap jobs with each other to develop empathy. It also requires workers to help each other to learn the jobs. Another idea is to start a team newsletter that provides the latest information on activities and accomplishments of the team members.

4. Projects: Projects require that team members work together to achieve a common goal. Projects can involve activities like putting puzzles together or cleaning up or rebuilding a property. Projects typically involve assigning each team member a specific task that he is responsible for completing, which helps to develop trust within the team.

5. Outdoor Activities: If members of the team are relatively fit, outdoor activities are a way for the team to get away from the “normal” environment. Activities such as camping, hiking, mountain biking or whitewater rafting allow the team members to relax while enjoying the fresh air, and the sense of being “away from it all” can lead to bonding within the team.

Networked Organization:Organization:Basically, an organization in its simplest form (and not necessarily a legal entity, e.g., corporation) is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from one person to tens of thousands.

Networked Organization: As organizations restructure to respond to their environment, there has been a growing recognition of the need for new kinds of organizational structures. The networked Organization is the one such response. It has been defined by Lipnack and Stamps as: (continued)

Page 2 of 8

“where independent people and groups act as independent nodes, link across boundaries, to work together for a common purpose; it has multiple leaders, lots of voluntary links and interacting levels.”

The notion of a network implies nodes and links. The nodes can be people, teams or even organization-networks operate at many levels. Common examples are distributed geographic teams in large organizations, or small organizations operating as networks to compete against large corporations. The links are the various coordination and “agreement” mechanisms. In a network, high degrees of informal communications (both face-to-face and over electronic networks) achieve success where formal authority and communications in hierarchical organizations often fail. Two way links and reciprocity across the links are what makes networks work.

Types of Organizational Structures and Its advantages: Following are the major types as:

1. Matrix Organizational Structures:The advantages of matrix organizational structures involve recruiting and isolating talent into particular groups specifically designed to accomplish a task. Matrix organizational structures are the most sophisticated of the various models to implement.

2. Network Organizational Structures:Network organizational structures heavily rely or entirely involve outsourcing tasks critical to the business's main objective. Advantages of network organizational structures involve exporting legal liability and manufacturing costs of making a product; another advantage may involve arbitrage potential. Other advantages include:

1. Being Closer to the Customer: There is rapid commutation between those at the sharp-end and those who support them.

2. Maximizing the knowledge potential of an enterprise: network members tap into expertise wherever it ma reside.

3. Minimizing disruption: A network has resilience to operate even if some parts fail (e.g. in a natural disaster).

4. Responsiveness and adaptive-ness: Like an amoeba, a network is sensitive to stimuli and adjust accordingly.

3. Bureaucratic Organizational Structures:Advantages of bureaucratic organizational structures involve implementing a tightly focused set of policies and guidelines supervising activities for a specific and predictable outcome.

4. Functional Organizational Structures:

This kind of organizational structure classifies people by the functions they perform. An advantage of functional organizational structures is to identify and place employees within assigned activities that best utilize their talents.5. Line Organizational Structures:

Page 3 of 8

Line organizational structures are ideal for businesses required to act quickly. For example, line organizational structures involve a dynamic interaction between employee and supervisor, allowing for the rapid exchange of ideas; as a result, the business can implement decisions quickly. This kind of structure works well for small businesses.

Process of Becoming a Networked Organization: OrHow to Become a Networked Organization:

Despite all the Business Process Reengineering (BPR) and management change programmes taking place, shifting a bureaucracy to a network is no easy task. Following are the number of key principles to follow, particularly for the growing number of organizations who employ knowledge workers.

1. Teams are the organization units that create focus and allow work to proceed.

2. The most productive work teams for many kinds of work, especially knowledge work are small multi-disciplinary group, e.g. 5-8 people with a variety of backgrounds.

3. Many ‘meetings’ are not productive for knowledge work – they are really assemblies, gatherings, committees which may be used to pass information (often ineffectively), motivate (or de-motivate), provide a sense of importance. Their most valuable use in creating and maintaining a sense of belonging, cohesion and reinforcing values.

4. Every knowledge worker should belong to at least two separate teams. This helps the organization achieve cross functional co-operation that helps the individual gain a broader perspective.

5. Every team must have a clear purpose if it is to act as a team and not as a collection of individuals. It must have its own vision, mission and goals which reinforce those of its partners.

6. Every team should develop a strong set of cultural norms and values. Hence regular team meetings should take place.

7. Each team should identify other teams carrying out related or dependent activities. It should draw a network diagram showing:

*Itself (with its mission) at the center*An inner ring of teams (nodes) where interdependencies are high (formal relationships)*an outer ring of collaborative teams (mostly information sharing), where possible major activity sequencing should be shown (who provides what to whom)

8. Individual members of teams should be encouraged to maintain their personal and professional networks, even beyond the identifiable needs of the current team.

9. Some ‘slack’ should be build into the network. A certain amount of duplication/overlap should not be viewed as bad. This slackness permits a higher quality of output, plus a resilience to corpe with the unexpected.

10. Just as in electronic networks a set of protocols needs to be defined and agreed. These may be implicit (common standards set by cultural values or ‘like minded people’). Often it needs to be made explicit what the various signals mean e.g. trial balloon, idea, request for action, demand, vote, decision etc.

11. Frequent communication throughout the network (including outer ring) must be encouraged. This is particularly valuable for half-baked

Page 4 of 8

ideas, tentative positions. A small group developing its own ‘final communique’ does not foster the network spirit.

12. Also as in electronic communication NAK and NODE NOT RESPONDING are important signals. If something has not registered, or some work is falling behind then a signal to ripple round the network so the repercussions can be analyzed.

13. Enabling technology is the most effective means of enhancing the quality of network communication. Good use of email distribution lists and groupware such as First Class, Net Meeting or Lotus Notes characterizes the truly effective network from the merely efficient.

14. Formal relationships (e.g inner ring) are best cemented by having agreed written processes (hand-offs) and/or common members on both teams. Critical linkages need higher trust and openness rather than higher formality.In a sequenced set of tasks this can be provided by a device known s cascading teams.

15. Recognize the unpredictability of the process for making decisions. Who makes decision will often be ambiguous. In general, decisions should be made when and where they need to be made, by whoever is appropriate.

Reasons for Creation Entrepreneurial Networks:

The age of predictability is over and the age of uncertainty has begun. Intensified global competition, deregulation, and technical advances have triggered an avalanche of change. Under such turbulent circumstances, besides specialization, SMEs seek to take advantages, which arise from manufacturing cooperation, extension of production, common research as well as from division of financial risk among partners. Only by joint effort SMEs can ensure the stability and competitiveness. Small companies are successful in innovation process and introduction of new products.

The flexibility of local manufacturing networks in relation to internal organization of relations of local manufacturing networks and stress advantages of highly specialized small manufacturer in comparison with vertical integrated large companies. Companies can react to changes in demand with high flexibility due to their ability to change its structure and dependence on supply or demand. Productivity of labor increases using twomain approaches: technological innovation and better organization of work, namely simplification and reproduction of working operations. All these factors are used in development of local system of production.

Industrial areas contribute synergetic effects. The network is more fragment in many cases and transforms itself into "network in network". Today’s technological possibilities shorten production cycle and life cycle of products.

Motivation & Compensation:

Motivation is the driving force by which humans achieve their goals. Motivation is said to be intrinsic or extrinsic. The term is generally used for humans but it can also be used to describe the causes for animal behavior as well. This article refers to human motivation. According to various theories,

Page 5 of 8

motivation may be rooted in a basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality. Conceptually, motivation should not be confused with either volition or optimism. Motivation is related to, but distinct from, emotion.

Intrinsic Motivation:Intrinsic Motivation refer to motivation that is driven by an interest or enjoyment in the task, itself, and exists within the individual rather than relying on any external pressure. Intrinsic motivation has been studied by social and educational psychologists since the early 1970s. Students who are intrinsically motivated are more likely to engage in the task willingly as well as work to improve their skills, which will increase their capabilities. Students are likely to be intrinsically motivated if they:

Attribute their educational results to factors under their own control, also known as autonomy,

Believe they have the skill that will allow them to be effective agents in reaching desired goals (i.e. the results are not determined luck),

Are interested in mastering a topic, rather than just rote-learning to achieve good grades.

Extrinsic Motivation:Extrinsic Motivation refers to the performance of an activity in order to attain an outcome, which then contradicts intrinsic motivations. Extrinsic motivations comes form outside of the individual. Common extrinsic motivations are rewards like money and grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives.

Social psychological research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation. In one study, demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations that children who were assigned to an unexpected reward condition. For those children who received no extrinsic reward, Self-determination theory proposes that extrinsic motivation can be internalized by the individual if the task fits with their values and beliefs and therefore helps to fulfill their basic psychological needs.

Page 6 of 8

Figure showing Entrepreneurial motivation and the entrepreneurship process

Compensation:Compensation is a systematic approach to providing monetary value to employees in exchange of work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.

Purposes of Compensation are: Recruit and retain qualified employees. Increase or maintain morale/satisfaction. Reward and encourage peak performance. Achieve internal and external equity. Reduce turnover and encourage company loyalty. Modify (through negotiations) practices of unions.

Types of compensation are: Base Pay Commissions Overtime Pay Bonuses, Profit Sharing, Merit Pay Stock Options Travel/Meal/Housing Allowance Benefits including: dental, insurance, medical, vacation, leaves,

retirement, taxes…

Page 7 of 8

Value System:

A value system is a set of consistent ethic values (more specifically the personal and cultural values) and measures used for the purpose of ethical or ideological integrity. A well-defined value system is moral code.Or

A coherent set of values adopted and /or evolved by a person, organization, or society as a standard to guide its behavior in preferences in all situations.

Categories/Types/Kinds of Value System:

One or more people can hold a value system. Likewise, a value system can apply to either one person or many.

A personal value system is held by and applied to one individual only.A communal or cultural value system is held by and applied to a community/group/society. Some communal value systems are reflected in the form of legal codes or law.

A personal value system is a set of principles or ideals that drive and/or guide ones behavior. Following are the four categories of a Personal Value System:

1. Personal Values: Personal values are those traits that are worth aspiring to, and that define our character.

2. Spiritual Values: the values that are connected to a higher power and gives a sense of purpose beyond material existence.

3. Family Values: To love and care for those we are close to; our children, our parents, other family members and our friends.

4. Career Values: The best use and expression of our talents and skills for the purposes of contributing to society and for monetary compensation.

Page 8 of 8