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    6.3.3.3. Knowledge management adapted, transferred and identified models,methods and tehniques

    The new science and practice of knowledge management are asocieted with theorganization based on knowledge, wich are continue growing. As we said in chapter 6.1., inthe European Union, the construction of an economy based on knowledge was the primaryobjective of the Strategy of Lisabon 2000-2010, and for the current and future periodrepresents the essence of the EU Strategy 2020. The science and practice of knowledgemanagement, wich is in a growing process, incorporates already o valuable set of knowledgemanagement tools.

    In the table nr. 5 we present a selection of the most used and known models, methodsand techniques that are specific to knowledge management identified in a writing of one of

    the authors of this volume in 2011 1.

    Nr. Tools category Name of model, method or technique

    1 Models

    1.1 The knowledge spiral model

    1.2 The Moon Kim model

    1.3 The grow of knowledge in business model

    1.4 The Wiig model of growing and using of knowledge

    1.5 Boisots information space model

    1.6 The model of growing de capacity of the maturity of thestaff , P-CMM

    1.7 ICAS model

    2 Metode

    2.1 The method of knowledge audit

    2.2 Method of amplification efficiency of knowledge flowswithin the organization

    2.3 Method of analysis the social network

    1

    Nicolescu O., Nicolescu C., Organizaia i managementul bazate pe cunotine, Editura Prouniversitaria,Bucureti, 2011.

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    Nr. Tools category Name of model, method or technique

    2.4 Knowledge matrix method

    2.5 Project management method

    2.6 Method of best practises

    2.7 Benchmarking

    3 Tehnici

    3.1 Expert seeker technique

    3.2 Knowledge collection technique

    3.3 The appraisal interview

    3.4 Technique of white pages

    3.5 Analysis following action technique

    3.6 Transduserul

    3.7 K profile

    3.8 Team mates asistance

    3.9 Know-net technique

    3.10 Megaconversation technique

    3.11 Narrative technique

    3.12 Talent Management System

    3.13 Interviews of leaving employees

    3.14 Knowledge Center

    6.3.3.4. Implementation of innovative firms networks

    An organizational-management approach that is not used in Romania, but with bigcompetitive advantages, that makes it indispensable to develop the economy and the industry,is the business network. In essence, the business network is a form of strategyc alliance

    between a large number of companies, situated in different geographic areas, that can worktogether for a common goal. The business networks represents a third potential form of

    organization in the economy, localized between la market and the convential company, thathas a quick growth in the developed countryes. The business network has the goal to produce

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    and/or market in common a performant product, usually of high value and complexity. Themain caracteristics of the business networks are:

    Represents a group of independent companies that have some common majorinterests;

    They develope collaboration relationships between them; They favorise intense and performant innovational proceses; Sharing between firms components important part of knowledge and other resources

    held Acquires substantial global capacity for production and marketing of performance

    products Generates competitive advantage for the companies that take part.

    Depending on the objectives and functionality, the business networks divide in classic

    business networks and innovative networks . The first category is characterized by focus onmanufacture and/or marketing of competitive products, using some innovational elements.The second category, the innovative business networks, represents the mos efficient type of

    business network, its specific feature is focusing on creating and marketing new products,carrying large amounts of value-add and competitive on high competition markets.

    For the Romanian economy it is recommended the using on a large scale both the classic business network, and in specially the innovation business network, in all their forms:complex innovational networks, marketing centered networks, networks dominated bythe supplier od equipments 23 etc. This may incorporate a significant part from the almost

    60.000 companies from industry, as well as universities, research centers, consultingcompanies, market companies, distribution, services, IT etc. The main criterions that arenecessary to be aware are: strategyc compatibility and cultural compatibility.

    The initiative to promote industrial company networks is recommended to belong tothe following organizations and organisms:

    Highly inovative companies which are usually smaller and do not posses enough ies to

    novative capacities, knowledge and other resources to produce and sell performant products in large quantities Universities, research centers and/or research and development companies that have

    invented or have the capacity to create a new and competitive product with highcomplexity and market values

    2 Nicolescu O., Nicolescu C., Modaliti moderne de dezvoltare a activitilor intreprenoriale, n Nicolescu O.,Plumb I., Pricop M., Vasilescu I., Verboncu I., Abordri moderne n managementul organizaiei, Editura

    Economic, Vol. 1, Bucureti, 2003. 3 Po pa I., Reele de firme i clustere n Nicolescu O. (coord.), Sistemul organizatoric al firmei, EdituraEconomic, Bucureti, 2003

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    Employers , SME associations and other professional organizations which havecompanies with complementary resources and converging interests as members andwhich can be valued best by integrating them in a company network

    To the promotion of this strategic economic development method between 2011-2013a considerable contribution can be brought by the resort ministeries and agencies managingstructural funds which, based on the analisys and projections they ify oportunities and perfom,can identify oportunities and potential partners for such networks industries and sectors ofgreat importance for Romania .

    Studies made show that there are favorable premises for innovative companynetwork in areas such as: furniture industry, textile industry, apparel industry, leather andfootwear industry, metallic constructions and products, machinery and electric equipmentindustry, organic agriculture, IT services etc.

    6.3.3.5 Production and/or export cluster development

    The strategic option of company cluster develpoment is practically an evolved solutin ofthe previous option which presents some important specific trates. Synthetic, the cluster can

    be defined as an ensemble of independent companies located in the same geographical areawhich intertwine their activities in order to act as an integrated system, cumulating theadvantages of both diversity and complexity of the companies and of the intense

    collaboration between these activities, similar to a large company. So the main differences between a company cluster and a network are:

    The cluster includes only companies that work in the sqme geographical area-locality or group of localities, rarely exceeding 500-600 square kilometers

    Integration in a cluster is stronger compared to a network and the activities ofits components often overlap

    Clusters mostly bring together small companies coming from the same sphereof activity textiles, furniture, glassware, plastic masses- which are integrated inthe cluster to have acces to resources, activities, knowledge, markets etc. In

    order to benefit from the advantaged of scale economy.

    The economy of Romania recommends the usage of production, export and mixedclusters. The mixed cluster which includes both export and production, has the highest

    performance.

    The advanteges which plead for large scale cluster usage in economy are mostly thefollowing:

    Company cooperation at low costs More innovation possibilities for companies and their specialists

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    Reduction and division of costs and risks for research and development activities Decrease in production time Decrease in product trading time Reduced unit costs due to economies of scale in the cluster

    Enhancement of market entry and maintenance capacity Competitive benefit generation for components

    In Romania the initiative of building networks is recommended to be possesed by thefollowing organisations and organisms:

    County and municipal councils which perform analysis of the specified area, makesstrategies and approves local developmnent plans, being able to indentify the necessityand possibility of clustering, elaborate and partially finance projects that contribute to

    their formation; Regional development agencies which based on the existing analisys and strategiesare able to easily identify the opportunity of cluster formation

    Employers regional and local organizations or local branches of industry employerswho have as members companies in the same area and complementary brancheshaving interests that can be satisfied by taking part in a cluster

    We consider that the easiest and efficient clusters can be formed in the most industriallydeveloped areas- Bucharest, Ploieti, Timioara, Cluj, Oradeati, Bacu, Piteti - wherethousand of companies function and where there also is an industrial tradition and culture.Looking at the manufacturing industries structure in |Romania and the successful approachesin Italy, Spain, Great Britain etc., we think that it is recommended priority setting of clustersfor specific types of equipment and machinery, food products, clothing, computer, smallfurniture and garden accessories etc.

    During the next european programme and funding period 2014-2020, promotingclusters must become a priority for Romania. Stronger involvement of the initiation bodieslisted, appealing to the Cluster Association in Romania, established a few years ago, maycontribute significantly to creating performant clusters in the domestic and internationalmarket.

    6.3.3.6 Establishment of spin-offs

    In the transition to knowledge based economy the strategic option of spin-offs becomes more and more efficient and more frequently used. Essentially, a spin-off consists informing a company in order to promote knowledge generated in universities and/or researchcenters by teachers, researchers and students. The specificity of the new managerial-organizational form consists in combining four types of activities- knowledge acquirement,initiating entrepreneurial demarches to create a new company, industrial and agricultural

    processes etc on one hand and commercial on the other hand, in an academic context.

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    The main premise in promoting this strategic action is given by the existence onresearch-focused universities, especially technical, which have dedicated teachers,researchers and students. It is also necessary that some of them have an entrepreneurial spiritand possess managerial abilities in order to succeed in creating and sustaining a competitivecompany. We recommend using spin-offs to develop the romanian industry, agriculture andservices based on the major advantages they generate:

    operative identification of economic opportunities offered by the new skills aqcuiredin universities

    operative promotion through entrepreneurial actions, pragmatic valences associated toacademic and scientifical knowledge and know-how

    making of new products with highly original content which offers them both nationaland international competitivity

    Capitalization and development of scientific, entrepreneurial, managerial and

    technical talents among teachers, researchers and students Scientific-entrepreneurial sinergy obtainment as a result of combining scientific

    activities with teaching, consulting and entrepreneurial activities

    The initiative of spin-off establishment in Romania is recommended to belong to thefollowing organisations and organisms:

    University and Faculty management teams, especially those of economic andtechnical profile which through managerial, scientific and economic resources

    boost spin-off founding

    Teachers and researchers with creative capacities who generate scientificknowledge and are willing to help create new companies that promote thesecapacities

    Students- especially MA and PhD students- involved in research anddevelopment activities who produce new scientific skills with economicapplicability and who possess the necessary entrepreneurial and managerialqualities to form and maintain a working and competitivie company

    The period between 2012-2020 is best for establishing and developing in all the citiesand neighboring areas where there are technical universities of great research potential. Withno doubt Bucharest, Timioara, Cluj, iai, Galai, Craiova, Oradea and Ploieti are some of thelisted cities.

    6.3.3.7 Developing business incubators

    The experience and performances of numerous developed and developing countries-China, India, Chile, Thailand, Malaesia etc.- demonstrate that creating business incubators is

    beneficial for accelerating and optimizing company development, mostly industrial andservices. The business incubator is an new- formed or early stage company assistanceenvironment that guides them into succeeding. The incubator offers support for a succesfulcompany in three ways:

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    Entrepreuneurial formation environment Direct access to consultants, trainers and investors Market visibility 4

    Using specialized incubators which only incubate companies with a specific profile-industrial, services, communication etc.- is recommended in order to accelerate economicgrowth in the next ten years. These can focus on geographical geophysical areas in whichRomania presents competitive potential and/ or advantages. Multifunctional incubators whichinclude companies from various work areas can also be used.

    The benefits it determines plead for intesified incubator usage for economic progressin Romania:

    Fostering of entrepreneurial spirit Amplification and acceleration of both inland and foreign greenfield investitions in

    economy Raise in new companies survival rate Accelerated consolidation and evolution of new companies, reflected in investment,

    work productivity, turnover and profitability growth Industrial or services investment oportunity indentification Occurence of new jobs and perfectioning of the human resources used Commercial ease of new products due to the assistance given and the incubators

    visibility

    Even though the first business incubators in Romania were established in 1991 theyare rarely used and have modest performances. Considerable economic progress can beobtained in the coming years using business incubators and involving the following:

    Towns and counties managements that have an economic potential,especially in de-industrialized areas that can create such incubators withmodest investments and community funds in order to attract foreign and inlandinvestors

    Regional development agencies which are able to elaborate programmes and projects based on business incubator establishment strategies through whichthey can build modern incubators, with modern facilities, capable to give

    birth to companies, especially services and industrial companies to providecompetitive products on the internal and external market

    Large companies- public or private- which have large production spaces andareas used only partially due to production restrainment and/or modernization.These spaces can be used by creating business incubators while usingmotivational mechanisms for their owners

    4 Piturescu I., Incubatorul de afaceri, n Nicolescu O. (coord.), Sistemul organizatoric al firmei, EdituraEconomic, Bucure ti, 2003.

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    Business incubators can take into account companies in any branch or sub-branch ofthe economy in which entrepreneurs of adequate potential are found.

    Normally the national interest is that of setting up and specializing incubators for the branches and sub-branches identified as having greater competitive potential and advantagesin for the years to come and that are suitable for translocation to other sites: manufacturing of

    pharmaceuticals, medicinal chemicals and natural products, machinery and householdappliances, radio transmitters and TVs, telegraphic and telephonic devices, medicalequipment and apparatus, screening, IT services and so on.

    Business incubators represent irreplaceable strategic methods with a huge ability toenhance the economy, especially manufacturing industries in poor and underdevelopedregions and to reintroduce the areas that have been de-industrialized in the last 20 years in the

    performant industrial circuit.

    6.3.4. Strategic directions of perfecting the public administration management

    Strenghtening governance by institutional capacity and by efficient publicadministration represent an important element in performing the structural reforms. At thismoment, beside the government program, there is no other official document that includes ina coherent conception the new directions of reforming the public administration. After afunctional analysis made at the central public administration level in Romania it is shown thenecessity of adopting a set of measures that must support the continuation of the structural

    reform of the public administration, in wich they included five strategic directions:

    6.3.4.1. Integration of the public policies in the pulic administration management

    It is necessary to establish a set of priorities on medium-term, so that the resources areallocated properly. At the stage of setting priorities, there is no formal process that can ensurethat the public priorities contribute at the orientation of the decisions in allocating resources,or the excistence of structured deliberations on the policys judgement in determining the

    bugets levels. Current regulations forecast that the Romanian strategic planning system mustintroduce a methodology of establishing priorities, but there is no critical stage realized for

    this process, and the decisional forum- The Strategic Planning Council, coordinated by thePrime Minister- never met. Even if there are strategic documents on multi-annual planninghorizon-e.g. Strategy Europe 2020-, there is no formal methodology that can determine thatthis strategy is budgeted on medium term.

    6.3.4.2. Improvement of the public policy elaboration

    In the decision adopting process, the deciders need high quality policy documents. Inthe legislation, Romania created a modern system of the legislation process and theinstitutional network responsible for formulating public policies, both central and ministerial

    levels. Though, the public policies process did not improve enough and continues to erode.The quality of the notes for the strategic-tactical is yet at a low level, being considered non-

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    vital documents. As a result, the most used public policy instrument is the elaboration of projects of lows. Lows doesnt represent in favor or against options, doesnt evalue the social -econimical impact, doesnt establish the costs and doesnt offer an implementation plan. Thisaspects are more complicated as Romania operates with different public policies, bothEuropean and national.

    6.3.4.3. Decreasement of the ad -hoc policies

    Decreasing this type of practices involves planning, discipline in the process and qualitycontrol from the central institutions. In the majority of the European governs the priorities andthe terms for development are planed six months ahead from the moment they need theaprovement from the government. In Romania, the only similar planning instrument is thelegislative list that supports the guvernments program, but only a part of this regulations getto be adopted. The weekly work meeting, coordinated by the the Government GeneralSecretariat, that takes place with two days before the governments meeting, has the potentialof becominga coordinating machinery, but in this context we can not talk about a substance inthe public policies. The use of the additional agenda and of the emergency ordinance must bereduced, because a lot of ministerial proposals continue to be adopted in this way. A progressin this way has been made by reducing this type of practices, but this instrument is still ratherused normally then exceptionally.

    6.3.4.4. Amplification of the information concerning performance of the publicadministration

    An essential responsibility element is the transparent monitoring and reporting the resultscompared with the planning. Such a monitoring does not exist in Romania, with the exceptionof the legislation that supports the government program, the governments targets or when itis imposed by the European Union. Even if in 2005 a rigorous monitoring system was

    provided, it is not working systematic, in addition to offer information to the deciders(e.g.quarterly reports of progress on priorities, annual reports on ministerial strategic plans).

    6.3.4.5. Fortification of the interinstitutional cooperation mechanisms focused on theresources optimization and administrative simplification

    The fortification of the interinstitutional cooperation mechanisms targets the identificationof the horizontal relationships in an institutional perspective, by creating strong horizontallinks between organizations capable of generating width informational flows, fact that is of avery highly importance in the process of establishing policies goals and in the supplyingstrategies of the public services. This goal will be possible by applying the action plans

    proposed during the functional analysis made by the public central management.

    In addition of optimizing the resources it is necessary the expansion of the performanceaudit, from the examination in the economical, efficiency and effectiveness perspective. Theeconomical audit focuses on the managing administrative activities of the public institutions,according to the principles and practices of a performing management. The efficiency audit isfocused on the adequate use of the financial, human, or any other kinds of resources,

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    including the examination of the informational systems and the measurement and monitoringregulations of the evolution of the performance indicators. The effectiveness audit focuses onthe fulfillment of the objectives by the audited entities, as well as the impact of the audit onthe entities activities schedule, compared with the projected impact.

    Continuing the process of administrative simplification aims to introduce newmethods and tools which would help simplifying administrative procedures. Also, thesemethods will help reduce customers costs, thus favouring the activity of economic agents.The administrative simplification means the simplification of processes, procedures andcircuits, by discarding obsolete procedures. At the same time, another aim is to reduce thenumber of public service administrative forms, as well as improving the organisation ofadministrative structures. The premises if this are covered by the appearance of theAdministrative Code, as well as by initiatives to establish a set of standard central publicadministrative costs.

    To continue this structural reform in Romanias public administration, there needs to be anofficial, formal agreement and efficient teamwork between politicians, public administration,economics and society. This will, however, be more difficult to achieve in 2012, as politicalelections take place.

    6.3.5 Priorities and actions towards economic agents management

    6.3.5.1 Priorities

    In 2012, the evolution of economic agents management will be influenced by the nationaland European context, heavily shaped by the evolution of the economic crisis and its effects.Although Romania was aiming to switch to the Euro in 2015 and enter Schengen area in2012, figures from the last 8 months show we are closer to recession.

    An efficient and effective management is essential; therefore these are our suggestions todevelop economic agents on a national level:

    A: The need of the Government to focus on establishing new firms and on helping them out intheir first few years of activity..Governmental programs supporting the founding anddevelopment of micro-enterprises by young entrepreneurs, facilitating access to money, or

    projects such as Mihail Kogalniceanu for small and medium enterprises are good examples.

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    B: Rethinking of state- owned enterprises management strategies, as a lot of them causefinancial loses, affecting national economics. Their management is stuck in the previous,traditional patterns for institutions wholly financed by the state, without adjusting to theirsupposedly developed status as economic operators. The Romanian Government has beenencouraging the restructuring of state-owned enterprises since 2011 and aim:

    Reforming the governing of state-owned enterprises and the approval of respectivelegislations

    C: The modernisation of economic agents management to improve the competitiveness onthe Romanian market. The emphasis is put on vulnerable areas where the management ofcompanies or public institutions can experience a genuine amelioration:

    The employee-employer relationships (rank 137) The level of taxation (rank 135) Clusters development level (rank 116) Usage of newest technology (rank 115) Level of business sophistication ????? wtf (rank 102) Quality of institutions (rank 99) Collaboration between universities and businesses within research (rank 115)

    From this point of view, the following are necessary:

    The promotion and usage of strategic management by creating and applying goodglobal and local strategies

    Promotion of organisational changing models through reengineering for small andmedium enterprises, as well as other categories of economic agents

    Promotion and usage of quality management systems and thus, bringing the products/services to the European standards

    Attracting European funds, international transfer of managerial, technical andtechnological know-how on a large scale to narrow down the difference to the

    average competitiveness level of countries in the EU Promotion of professionalism in management, essential for the economic success

    of Romanian companies

    6.3.5.2 Ways to modernise economic agents management

    In the previous edition of Starea de sanatate a managementului in Romania (2011) we

    argued that 2011 will be a difficult year, economically and socially, and that the conditionsand developments of the economic medium will continue to influence managerial,

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    economical and comercial behaviour of Romanian firms in a negative way. Unfortunately, theassumptions were right. 2012, which started with a change in Government, seems to be just asdifficult, not only for Romania and its organisations, but also for other countries in the EU,regardless if they are using the Euro or not. Furthermore, in 2012, elections are taking place inRomania.

    Management is now the only remaining factor for economical and social progress andit can provide many ways to attenuate or even eliminate the effects of the economic crisis andto ameliorate the performance of economic agents.

    As for the most important strategic recommendations for Romanian enterprises, wewill insist claiming that these are highly dependent on the level of managers implication inthe decision- making process.