Describe about a Reflection and comment upon “we have moved from an economy of hands to an economy of heads”?
“We have moved from an economy of hands to an economy of heads”
Knowledge is an indispensable asset of the business where the people within the organization are treated as the human assets who have organizational skills, abilities, competencies, experience and ideas. In this regard, the intellectual capital has gained prominence more than the physical assets of an organization. Gary Hamel put forward this notion of economy of heads and hands transformation. The knowledge society in which the individuals reside can be segregated into knowledge workers and knowledge managers (Amine Chatti, 2012). The knowledge workers are regarded as the success backbone of any business. In this competitive environment, knowledge have gained the importance more than any other aspect in order to survive in the market. I agree to the above statement as the economy of heads is regarded as the leaders of a company who are highly skilled, talented and driven employees (Pedrini, 2007). The organizational changes and the economic turmoil as well as the technical changes have complex the business scenario. It is important for any business acquire certain amount of competitive advantage so that the company can survive in the competitive environment. The best way to exercise the best leadership skill within an organization is to attract the best people.
The company generally engages in the movement of hands to heads so that the managerial decisions taken by the managers will prove to be beneficial for the company. The best employees can be retained and cultivated by creating challenging environment for them so that they can realize their skills and knowledge. The heads of an organization make up to be a differentiator, which is in other words, is known as Intellectual Capital, which is an asset of the organization (Freeze & Kulkarni, 2007). This intellectual capital considers all types of informational resources, which increase the profit, acquire and attract new customers, innovate existing products and create new products and enhance the business status of the organization. In the 21st century, the increase in the intellectual capital is inevitable due to the increased competition and technological advances. So the companies will have to nurture the best intellectual capital ('Special issue on business model innovation through an intellectual capital lens', 2012).
For example, an organization called Trilogy Software Inc. initiated an extraordinary step towards the recruitment of best engineers directly from the campus. The proposition of the Trilogy was that instead of working as product manager for big companies like Microsoft Corp., it would have been a major impact if they worked for Trilogy by promoting the company to the next stage of competition (Businessweek.com, 2015). When the new employees are hired they attend the Trilogy University founded by the President and co-founder of Trilogy, Joe Liemandt where they receive a three month long intensive training. This enables them to enhance their skills, abilities and ideas.
This week the focus was on the principles of management. The management can be defined as the process through which the available resources are effectively and efficiently utilized in order to meet the organizational goals of a company. In this week, the course highlighted the four functions of the management, which is the planning, organizing, leading and controlling. In real life for the efficient operation of any business, there must be a sound implementation and coordination of the functions. I have learnt that for the initiation of the business planning is the most important factor.
The planning process can be implemented through the creation of a detailed action plan that includes the goals and objectives of the organization. I have learnt that the goals must aim to maximize the sales and profit of the organization (Kozminski, 2013). The next is organizing the functions of the company. In this case, it is learnt that the limited available resources need to be efficiently distributed among the factors of production. In this regard the employees are also assigned with the relevant roles and responsibilities for their efficient performance. Then from the next function, I learnt that the leadership skill is very important for establishing connection between the employees and the employers so that the performance is enhanced at the interpersonal level (Ogilvie & Ogilvie, 2013).
The last function deals in controlling which is done after the evaluation of all the other functions of the organization. Suppose after the planning process and the implementation process, the goals and objectives of the organization are not met then it is the responsibility of the managers to take the necessary corrective actions to attain the organizational goals. If the managers practice the functions then their operations are effective in terms of achieving the operational, tactical and strategic goals of the organization. Thus, the readings and the discussion help us to understand that for the efficient functioning of the organization, the principles of the management must be considered.
As a learner, I have learnt that planning in the management sector is very important and essential segment of operation. On the other hand, the organized plan of the company must be brought to action in order to achieve the organizational goals and objectives of the organization. It is also learnt that implementation of the plan in the management of the organization must be enhanced in order to meet the expectation of the organization. It is learnt that leading the team and controlling the activities of the team in the organization is equally important as planning the events and activities to be carried out in the organization.