In this report, an attempt is made to critically evaluate and analyze the business model. This report identified critical issues relating to the case study. It is useful in developing an understanding in this context. In this report, various tools and techniques are used for analyzing the improvement process of the business. This report helps makes an assessment of the business based on the value chain and identifies the best practice for improvement and management of the business.
It is the distinctive arrangement of positions of authority in an organization. It describes typically how different tasks are like communications, rights and duties are directed towards the achievement of organizational objectives. Organizational structures differ depending on the organization's objectives which determine how the responsibility, roles, and power are assigned to the different levels of management. It means that the configuration of a firm will determine the methods in which it pedals and executes its operations.There are different types of organization structure these are the purposeful structure, project structure, divisional structure and the matrix structure (Tv Choice Productions, 2014)
According to Schement, (2002)a purposeful structure is a set up whereby a company gulfs its effort to dissimilar branches but under an organizational regulationeach unit depends on workers knowledge and skill for self-support. Communication and harmonization in the functional structure are restrictive to organizational boundaries.
Divisional structure is more applicable to large enterprises, which have different smaller groups within its chain of command and which are various locations producing various products. This means that the employees have got different skills working on different units and are from different locations making the needs readily available. Divisional structure is however costly to implement due to the evolvement of new departments that need have a centralized area of control that is not dependable to another department (Mackenzie, 2008).
Matrix structure is a combination of the functional and the division structures. It is more complex than the two in that it is used by multinational companies. It allows functional and divisional purposes to be incorporated in one business.it also allows decentralized control of businesses that is efficient to use by the support systems. In matrix configuration functional managers are in charge of generalized resources like planning and arrangement of time, marketing using adverts and quality control while the division managers are in control of a solitary product and are accredited to prepare product approaches and also hinge on the functional managers for the needed resources(Wills, 2010). Project structure can be described as a temporary organization designed to research on solutions to project ideas to be used for development by using team specialists coming from various departments. The team that will be picked focuses on all their skills to obtain the best results. On completion of the project, the team members go back to their respective areas of work in the organization.
A structure also depends on the organizations’ objectives and goals. The two most common used structures are centralized and decentralized structures. A centralized organization is whereby the topmost authorities are located in one central office commonly referred to as the headquarters. Most decisions are made in the top most offices of the headquarters meaning that decision making is hierarchical (Czarniawska-Joerges, 2006).
In centralized institutions, the topmost management and executive only decide upon decisions that control the everyday operations. However, for normal operations to continue running smoothly, the management puts in place policies that are to be followed. All persons including the top most executives are accountable for the productivity of the organization. Typically the organization owners improve the company’s assignments and operations and then establish the objectives for managers and staffs to follow.These owners will set in place guidelines but will also have to allow the executive managers to implement their own styles (Pehnt, 2006).
Centralized institutions depend on the management and the owners for decision making. These brings forth to delay of feedbacks to every situations presented thus making the operations become sluggish.
In a decentralized institution, daily operations and decision making are given to middle level managers to give room for the top management to handle the critical issues and decisions. Employees are given an independence to go on with their operations and make their own decisions but they are accountable for the results obtained. These aids in implementing the best ideas gained from the experience they have had (Pehnt, 2006). Decentralized institutions offer the owners of the organizations with time to perform other duties rather than always making the final decisions.
According to Rutan, Hewitt,& Wedin, 2009,decision making is more prompt than in centralized institutions. The reason being, that the executives can make decisions without any approval from the owners. This will allows the businesses to act quickly to where critical solutions are required since wastage of time means losing incomes from consumers. Decentralization also facilitates the process of expanding businesses in that it allows new units of the business to be independent. It therefore means that the unit can react more easily on the specific necessities of the business probably those that prevent the business from expanding.
Organizational structures therefore determine how the business operates by providing a basis on which typical operating techniques and procedures are sketched and also governed. Individuals use the sketched procedures to participate in decision making and to evaluate, to what extent their assessments going to shape the firm’s activities.
The recent organization configuration of service adhesive LTD. Shows that it is centralized and will be more productive on the basis of employees being more independent to make their own choices which deems to be to ensure maximum efficiency and profitable. Each employee will be accountable for his or her activities. For it to be more effective, it needs to implement the divisional structure which will give different team members a collection of divided responsibilities to produce the adhesives. Divisional structure will utilize the plan to compete and operate as a separate center if it ever thinks of opening new branches (Grandori, 2001)
Short-term contract employments
Short term contracts employees are people who grasp explicit or implicit contracts of employments which are expected to last longer than the period used to describe casual workers, but shorter than the one used to define regular workers. Explicit contracts are mainly used in formal firm’s transactions, agreements and sales of property. Implicit contracts refer to self-implementation of long term agreements made between two parties regarding the future exchange of merchandises and services (Weddell, Baird, & Hayes, 2008).
Temporary employees have the opportunity to fully accomplish permanent employment eminence after their contract period has lapsed and also when their performance of production is promising.
Short term contracts have recently been on the rise mainly due to increased competition in the market both internationally and locally. Organizations and firms use the short term contracts to expand a specific proportion of their business. It means that short term contracts are also used to either introduce a company into the market or improve the productivity of the firm in the market.
According to (Weddell, Baird, & Hayes, 2008) short term contracts are mostly deserved due to some of their unique advantages. Companies use short term contracts which encourage competition in the market. For instance, since there are more opportunities in the market, prices tend to lower to reasonable costs. These contracts do not require demanding mechanisms for management or supervision; poor performance will lead to the lack of renewal. The level of details in transactions that happen within the short term contracts environs is less, and they are periodically reviewed.
Short-term contracts also have disadvantages in that they can improve hinder efficiency and innovations within a firm. The high cost is due to lack of similarities by the bidders. Short-term bidders have an information advantage than other bidders. The shorter the contract time, the less likely bidders are to obligate capital for the design, figure and investment of a new competence specifically for the organizations’ running.
The lack of similarity between the dealers will cause a disadvantageous effect on the team structure, which is the case with the service adhesive LTD. Short term contracts will hinder long term investments given that the return on the investments will also take an extended period and the returns are also inevitable in that they can be a profit or loss (Prebil, & Drnovs?Ek, 2012).
Short term effects are rated according to the nature of the problems presented so as to provide organizations with great opportunities that are existent in the market. Companies should also put in place ways in which they can equalize the bidders to have a unified team structure that is meant to impact the company positively as well as equip the dealers with the right material to upgrade themselves to get prioritized occupations (Prebil, & Drnovs?Ek, 2012).
Traditional and team based working structures
The main differences between the two work structures are:
Authority: traditional work system leaders are the highest priority in that they make the final decisions. Authority often comes with the time the individual has been in power, the more the time the leader has been in authority the, more powerful he or she will be. While in the team, based structure power is supreme in a united team. The team leaders allow decisions to be made from the best ideas of the group (Aldag& Kuzuhara, 2015).
Traditional chiefs maintained the ownership of information. They only release information if other leaders under forceful circumstances require it. It is from keeping this information that makes them sustain power and control. In a team-based environment, information is shared among all team members. It enhances a creative approach whereby information is improved and also can be used as a problem-solving info.
In a traditional structure, decisions are made in the highest office of the organization that is later passed to the team members. While in team-based structure, decisions are made all members, they are then evaluated, and the best choices are selected as agreed by all team members.
Resources are allocated for use only when they are deemed necessary by the highest management in the traditional structure. Thus the delay in projects and sometimes the teams are forced to use no resources due to the stressful procedures they have to go through before they finally are allocated with the resources they require. While in team-based, team leaders allow their teams to quickly access the resources needed saving the time of developments and also the speed at which the resources are being used (Markram, 2005)
The responsibilities in traditional structures are definite and do not change for individuals working in organizations using the traditional structure. It reduces the worker's ability to be creative and innovative. In team-based structures, groups are encouraged to toil together to share their opinions to come up with quick and profound solutions to specific problems they require to solve.
Disputes in traditional cultures are regularly dealt with on individual basis with no concerns of validating the origin of the conflicts making it inappropriate for coming up with profound solutions to solving a problem. Disputes in a team based structured are settled by a group or a panel of disciplinarians of the organization. The team identifies the cause of the conflicts and quickly solves it to avoid wastage of time and rapidly keep the jobs moving forward.
Due to its strict structural arrangement, traditional organizations take a lot of time for performance rates to be announced as well as get the feedbacks from upper most offices. These delays are typically caused by the procedural structure that individuals have to go through before they can arrive at the first offices in the organization.
According to Burton, Obel, & DeSanctis, (2011) time-based organizational structures provide a collaborative environment whereby all members are treated equally thus sharing of information and data is smoothly shared It provides a friendly environment in that feedbacks responses are quick, and criticism among the team leaders is minimal.
However, Traditional organizational structures have served most firms ever since the industrial evolution. It benefited the administrations in that the employees already knew their roles and responsibilities, this made it easier for the organization structures make predictable moves and due to their complex structure, the firms were organized as functions and duties were not shared.
Transitioning from traditional organizational work structure to team-based work structure
In today’s economic development, companies are shifting from the tradition organization structure to fit in the competitive market. The traditional organization is structured, and it is hierarchical. Employees and staff follow a specified chain of command, for instance, the CEO has the final say in operations that are associated with the company. As much as the CEO is the last word, the organization has different departments controlled and supervised by the managers. The managers then report to the head of departments who supervises the directors. The most sensitive and critical issues are then presented to the CEO by the head of departments (Serour, 2005).
Several organizations are shifting to the team based structure. The team structure is the new type of configuration whereby a team with similar skills and power work towards a common goal. The team-based structure has no boundaries of employee interactions. They are less hierarchical compared to the traditional based structure that is organized. An organization using team-based structure necessitates all employees to participate in decision-making processes. A decision is chosen upon what impact it will have on the organization returns. Communication in traditional organizations is also structured in that it always begins from the top (Reilly, 2007).
Exchanges in both forms of structures vary in that. The traditional organizational structure is rigid making communication to be formal that is the use of letters and emails is quite common. Compared to the team-based structure which is less constructed. It is more flexible than the traditional structure in that it involves the use of social media sites for information and data sharing.
Communication could be a barrier for Service Adhesives LTD since transiting from the old formal methods of communication to the social like form of communication would have to involve some strategies and policy implementation.
It also has to strategize its corporate performance according to the team based structure this means that it has to reduce the organic methods it uses in to perform different operations for instance meetings, managers were used to scheduling and control meetings. Managers used to set the agendas for the meetings and also used to monitor the flow of the meetings from one theme to another.
Transitioning to team-based structure means that Service Adhesives LTD managers don’t have to burden themselves with traditional meetings structure methods of leading and controlling the meeting. Team based sessions allow the participants to connect from different locations using the web-based conferencing software. Interaction is through videos and audios. Transitioning from traditional methods to team-based methods drastically changes the roles of various departments in the organization, for instance, Managers don’t have to govern the meeting proceedings as the team participants are allowed to arrange meetings on their own.
According to Australian National Audit Office, Dahlenburg, Crossley, & Pejovic, (2005)ineffective improvements are mainly brought about by strict structural development that requires one to follow a procedure to arrive at the top most executives in the organization. A strict chain of command reduces the level at which the HR offices have a mutual understanding since they start comparing their levels that are who is superior to the others, in the hierarchical structure. This form of behavior is common in companies using the traditional organizational structure making it hard for the cooperative activity to be fully effective in maintaining a profound labor force system.
Tactical workforce planning is a process that is used to analyze, forecast and plan the various team management activities and talents in accordance with individual’s abilities. Tactical labor force planning support in ensuring that the teams aligned with different duties are at the right places at the right time and are executing the duties as required. As much as the organization is using the team based structure, it still requires a workforce planning to back up the policies that are to be utilized in the team based structure
The primary objective of a workforce program is to aid organizations in ensuring that vacant positions are filled in by the right and competent employees who can strategize a way to achieve the required objectives and goals. Workforce plans are mainly managed by the human resources. Their primary role is to ensure that the organization's goals are easily achieved using the simplest and cost effective methods that can be applied.
For the human resources to actually come up workforce strategy, they must first come up with a workforce development which involves educating and training the participants to participate in the workforce plan strategy. For organizations to ensure there is an effective workforce development, HRs ensure that those recruited have the required skills and talent to create a profound workforce management team
Improving the workforce planning system requires well-structured strategy. Different companies use different strategies to improve the workforce that is in use. Some of the strategies used include:
Improving the communication system even if it was working appropriately as required by the management. Effective communication is beneficial in that it improves the interactions of the organization workforce as well as enhancing communication with the consumers.
Using the latest models for research and acquiring information from the market to adapt to changes that are experienced in the market field mostly by the team members who are involved in the field work.
It is always advisable for an organization to start with the less costly activities to ease the burden of the workforce to tackling the tough expensive activates which are critical to the organization's development.
To smoothly enhance the workforce capabilities, it is important for the managements to standardize workforce takes place in day to day daily basis.
Environment examination is a strategy that most companies use to gather information intelligence on how to conduct their business operations under the given prevailing factors at hand.
The future trend is a forecast that organizations use to evaluate the trends and issues identified during the environmental scanning.
Major demand and supply factors are required to be transitioned from previously used methods to the current methods to fit in the market.
The team based structure is beneficial but it also has some implications that lead to failure of achieving the required objectives with the time specified. Some of the major complications experienced in a team-based structure include:
Communication barriers, lack of a clear communication system leads to poor sharing of information and data between the team members and the organization itself.
The risks a team member takes is not mostly recognized and rewarded by the organization.
The methods of measuring the progress and results of the team members are biased, and at most times it is discriminatory.
Conflicts are a common problem in team-based structure. How the management handles the issue should be questionable.
Many are the times when team members are assigned to duties that are above their capabilities. The assignment of labor that is challenging to an individual mainly leads to poor performance in work given thus lowering the productivity of the organization.
Leadership qualities are somehow not fully defined as roles are equally distributed to different departments in the organization. The time-based structure is not as structural as the traditional based structure in that the CEO has the final say.
The team based structure requires a well-organized tactical labor force that can identify and overcome the internal and external barriers involved in the management system and while addressing the team members with distinct duties.
Service adhesive Ltd previous initiatives failed mainly due to getting used to using the traditional organizational system. Due to its structural development, individuals find it hard to transit to the team based system which is less structural and also offers the team members with the empowerment to carry out their duties without strict supervision.
In the group-based method, tasks are divided among the team members. The functions are offered multiple and they differing. Duties are allocated in accordance to the individual’s talent and skill to conducting them in the specified time required. Traditional method didn’t involve these strategic moves thus the reason people find it in vain to get used to the time-based organization structure. It is also hard for the management to allocate duties to the team members since they were used to the traditional structural method where management only new a few individuals due to the restrictions involved in the system.
Workforce planning becomes a strategy whereby the service adhesive Ltd will have to undertake to familiarize them with the team based basic method.
Employee empowerment is the provision of employees with an assured degree of independence and responsibility for easier decision making regarding their organizational tasks. It allows employees in lower divisions make decisions concerning the various hitches that are involved in the organization at a particular level. It, therefore, means that employee empowerment comes with accountability according to the results obtained (Klidas, 2001).
Employee empowerment has unique advantages in that it leads to increased managerial response to sensitive information that can cause a positive or an adverse effect. It also increases productivity since the employees are privileged and committed to performing their duties under less or no supervision is given that they have been allocated various positions to perform their operations.
Using the time-based structure; most employers implement the empowerment strategy especially when it comes to the division of duties. Providing the employees with the opportunity to gain control over their work gives them the confidence and commitment to perform to their level best.
Employee empowerment is also accompanied by self-desire to empowerment. Self-empowerment is the act of developing self-confidence and independence to performing an operation without supervision. Self-empowerment requires one to be prepared to be accountable for the work done. Self-empowerment leads to gaining strength when one is offered a bigger role to perform under the conditions provided. It also prepares one to work under stressful and harsh conditions and still produce outstanding results that will be a benefit to the individual as well as the organization.
When different managerial departments efficiently conduct employee empowerment under the specified policies and rules given, the body also becomes economically empowered. Economic empowerment is mainly meant to recognize the value of the employee's value in respect to their self –worth. Employee empowerment undergoes several challenges, especially in today’s economy. Some of the potential disadvantages are:
Lack of experience which increases the risk of productivity being low. Responsibility should be handled by experienced personnel who already know the tricks involved in the field to avoid deteriorating economically.
When individuals are given the independence to perform duties based on their decisions, they tend to lack uniformity in decision making thus leading to biased consistency in the organizations.
When employees are given the freedom to make, their decisions they at most times get used to the routine till they break the boundaries of authority.
The service adhesive LTD will find it hard to transit to using the employee empowerment strategy in that it will have to change the role of some of the various departments it has. Employee empowerment gives an individual an opportunity to diversely share the roles in the workforce but only if an experience is at hand. The other problem would be that it would have to train the employees on the new role it will be providing them and also requires new management which will be in charge of those participating in the employee empowerment strategy.
Continuous improvement – a method used to identify opportunities for streamlining work and helping the organization reduce the waste, this helps the company identify the best saving opportunities. For this reason it’s a widely used method by many companies around the world. Most of the problems in the industry could be dealt in with the first hand or just then immediately. For adhesive to ensure that they production out together with product quality and line efficiency were being skillful remarkably well. Time wastage – time wastage was their when it came to upgrade to new machinery and learn about their competition who’s tech was on time. The visit to the competitor shows how and why the company was not making profit. The technological leap by their competitor was edging them out. The technology being used brought time efficiency when it comes to large production. With such steps, it brings adhesive lost a lot of time when it came to number of the number of employees to large machine brought efficient and output.
Waste storage and transport: the first thing we should know is that the storage and transport waste is controlled by waste act and ruling. Their overall coaching was that the waste was to be stored in the most of suitable containers and the plastics were to be placed in the most ideal location so as not to empty and cause environmental damage to both human and human health. The adhesive company was quite out of technology when it came to this. They still dealt with old fashion machinery that brought less efficiency. The machinery being old and rusty brought the fact that high end waste was higher when you got to compare their waste to their modern rival. They lack a lot of things that come out with the technology that was stated in the paragraph. The new employee employed by the adhesive company lack basic industrial education and training. The cant communicate and that means that they can’t come to a conclusion between the two rivals. The problem being the new part time employees can’t read the machinery instruction, yet the company fired the support/backbone of the factory. The lack of basic education meant high level illiteracy. They produce high levels waste compared to the original bunch of employees that used to work there. The reason for saying that was because they can’t read then they can’t work the machinery.
Money waste: adhesive was making profit from before, their death they set aside, when they sacked their employees. The first mistake was employing uneducated people who brought poor production to the industry mix. The poor production of non-quality products may have led to loss in their customer as compared to the first products they had previously hired. They took time to pay off the original employees was enough time to include new machinery that would have cut down on the most of the prices. The money brought by the newer machine would have decrease spending by the company to hire more employees and increase their production.
The reasons why they needed to keep the old personnel compared to the new words
Cost – the adhesive turnover rate typically incurred higher costs. The adjusting of advertising, training together other than operation, the process of replacing a new employee is usually quite high (Stark& Du Plessis, 2004). If they were to retain the official employees then the cost of recruiting a new bunch. Productivity – when they hired the new employee’s, it will take significant time and energy usually to train a new person for the job you want to hire. The productivity of the company may have taken a one down. He Company would spend less by keeping the overall goal of the client. Competitors-the releasing of old employees would let Competitor Company recruit the old after leaving the job. The reason would be they would have to look for work in the same bracket of business. They would have to apply the skills in the new company. Positive work culture- usually happened when employees work together after many years, they adopt traits from each other.
The continuous collaboration will lead to adopting qualities from their work place, they would get in sync. The reason for this was to improve performance and applying knowledge with the rest of the team. Client satisfaction – the client satisfaction is one of the most important thing for Adhesive and it was largely determined by the client’s insight, devotion gratification. The bad thing is that clients develop a relationship with the employees, and the reality is that there is a high risk of the client leaving with that employee to the new place of employment, this would In return result to loss of revenue for the organization.
They stand out amongst the most widely documented misrepresentations with ERP executions is that associations are set up for the struggle. Relationships need to distinguish and comprehend the attainment drivers, as well as to make a move on related initial suggestions that bolster them. Attainment is branded as getting what you need with the ERP implementation, on time, on the spending plan and with a discerning Return on Investment (ROI).
Organization Commitment Project Opportunity, Project Team Change Administration, Communiqué and Training Customizations/Modifications Budget Project Closure. Play out the due industriousness of getting the venture progressing nicely by setting up all the vital data and imparting it to the appropriate faculty. The best commendation for this type of a company, including reasons for them being out of technology and manufacturing of their products. They are out of time with tech and need a new exposure. The recommendations include preparing and the reviewing of their business strategy. They had a plan to duplicate their competition workflow. The idea was great as many other companies have done it including countries such as China.
Prepare and reviewing the IT strategy
It desires to attain somewhat other than structure up to an uneven state, the business case to get an endorsement from the higher management or your highest decision-making staff. Moreover, it involves emerging serious execution events, setting baselines and emphases on those movements, and the following implementation after go-live. This is the greatest way to supplement the commercial compensations of ERP.
Preparing and reviewing the ERP strategy
For them to have an ERP plan, they must have the following IT source phase which includes: decisive the essential ERP services. Defining the ERP provision institute. They have to describe the ERP’s style and recording the ERP vendor strategy. They need to look at success and risk factor brought by the stage
Preparing and reviewing the project scope.
It will take a partnership between many associates which comprise the scheme proprietor, backer, and the investor, they will help classify its primary curves of shape and sizes. By defining the program scope you will recognize the job, objects boxes sub-phases resources budget and arrangement. When they define this, they will include the plans of the parameter. It will include the by-products. Through all this, they will classify what principal to the appeal for a new ERP, and this is why it’s significant to be to use enumerating purposes. After all, this the company that will formulate for the process changes and the new ERP by applying the proper changing management strategies and techniques (Young, 2007).
The Enterprise resource planning (ERP) usage will touch on how the institute works by stimulating commercial procedures and altering framework connections. Information technology might not to be the dominant area in care of the undertaking. Senior managers and middle - level executives might be obligated in the creativity from its instigation to its finish. It gives the project the precise deceivability above the connotation and proves the staff when it ends, the meaning of the asset (Weisbord, & Janoff, 2010).
The recommendations will involve the executive in the project sponsorship and include escalation and the primary issue resolution. Finally, this will bring and involved by helping maintain the administrative support while the get informed about the project Team ERP project.
The project team
The midpoint scheme collection ought to be complete of full-time ability, including an initiative administrator and others talking to the mid-zones of the commercial. If a therapy integrator is utilized, the focus undertaking group needs a dressed and firm working connotation with the specialists. Likewise, differentiating a procedure of possessions from the diverse areas of the corporate to give topic mastery.The following are its recommendation: They should authorize the development team to help them make some of the decision. They also need to classify SME from pertinent areas across the organization
The communication, training, and changing of the management
The ERP scheme won't just result in vicissitudes in frameworks, additionally handle and commanding variations. An alteration in the management group will be vital for the overtone to achieve the result. The coldness of the collection will alter dependent upon the amount of the undertaking and degree of fluctuations. Making falls under improvement management, and the most widely documented strategy is to "prepare the coaches." Usually, the creation venders or the therapy integrators will brand the guides, who are legislatures in the implication. This method is most useful since the connotation will wind up with the experienced experts on supervision.
It will have a lot of the thingswhich include the company doing. They include the following of the main important things: they will have to perform a gap analysis facing there prioritize for the difference right. They must have clear anticipation when it comes to the company situation when it regards the customization. When it comes to software vendor releasing the latest part of the
software, they have to prepare to maintain the customization. For them to understand the ERP implementation, they have to study other ERP in the market /industry.
The company must have a representative financial plan that has all the expenses for the application which include all them hardware; staff resources need for the ERP and the software itself. They will have to consider a timely return on investment from the Project. They might decide to cut down the budget in an attempt to improve the ROI.
Make communication systems, for instance, a site, communiqués, street-shows, dine and learns, and so out. Produce long communication between the project group and the memory in general. Key customers ought to be obligated with the endeavor, and it's heartening, as this will help in greeting of the developments. Make a commercial case that validates the arrangements to events and outline practicality, and also the compensations achieved with the developments. Part the occupational case with the related people confidential the association. Contract a stranger to play out a connection status assessment. Be set up to make amid the undertaking and after the pole go-live date.
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