November 19, 2016

Cost Of Ignorance - Knowledge Has Value

Ignorance - The Ultimate Expense

22 November 2016

James Morgan and Jeffrey K. Liker use this section heading in the book "Toyota Product Development System (page 213)", to highlight the need to develop deep knowledge in various persons working in an organization. In the absence of critical and advanced knowledge, brain storming is a suboptimal tool and solutions arrived will be suboptimal. Organizations need to have learning orientation and periodically they have to scan the environment to acquire new knowledge and include them in their mental as well as physical knowledge bases. The learning either explicit or tacit has to be converted into practice as appropriate to realize the benefits of learning or acquiring knowledge through explicit and tacit channels. Toyota gives explicit attention to learning, experimenting and practice to come out with quality products from the product development processes as well as manufacturing process.

10 July 2016

I saw a post in a Linkedin Community on Ignorance and wrote the comment that I developed the concept, Cost of Ignorance long back.  The search of my blog posts took me to a post in 2008.

6 September 2008

Marketing and Marketing Concept

I am writing articles on Google Knol platform with an intention to develop a management knowledge revision encyclopedia on the platform. I am calling it a revision encyclopedia as I want it to be useful to people who have studied the related texts and for the purpose of revising and refreshing their knowledge they read these articles. Knowledge workers have to make efforts to make sure that they bring all the appropriate principles into play when they are solving a problem or deciding an issue. Unless they make efforts to frequently revise the principles in various subjects related to management, managers cannot assure themselves or assure others that they are using all the relevant knowledge and taking right decisions.

Performing artists spend hours every day practicing their art and perform for three or four hours on a day. Many knowledge worker in contrast work a minimum of 8 hours per day. So they cannot study their knowledge material for an appreciable amount of time. But expecting them to spend at least half hour to sharpen their knowledge base in the brain is reasonable. Cost of ignorance is quite a large figure in the world. Knowledge workers also incur it and incur it for the organizations they are serving despite having certificates that attest that they have studied knowledge bases in a satisfactory manner. Knowledge base needs to be revised to make it useful when needed.

I specifically highlight the idea:

Cost of ignorance is quite a large figure in the world. Knowledge workers also incur it and incur it for the organizations they are serving despite having certificates that attest that they have studied knowledge bases in a satisfactory manner. Knowledge base needs to be revised to make it useful when needed.

The idea was again mentioned in 

26 April 2009

Narayana Rao K.V.S.S.

My aim is to provide revision or review articles for graduates of industrial engineering and management so that they can refresh their knowledge periodically. My effort of writing articles in all the subjects of the curriculum is to demonstrate that by appropriate committed effort, we can retain our learning of multiple subjects over a long period of time. 

Only when we retain a large number of principles in our brain, we take decisions properly when the occasion comes. According to me we are all incurring a huge amount of cost of ignorance.

My advocacy is the that knowledge workers have to make special efforts to retain, revise, refresh and update their knowledge.

I am happy to see that the idea has now captured the attention of many persons in the world



November 12, 2016

Leadership - Books - Bibliopgrahy - Information

Leadership in Administration: A Sociological Interpretation

Philip Selznick
University of California Press, 1959 - 162 pages

"Philip Selznick has profoundly affected how all serious students of organizations think about their subject. Leadership in Administration is, perhaps, his masterpiece: a lucid, rigorous, yet humane analysis of the essential task of leadership that brilliantly reaffirms the organic, value-infused character of a successful enterprise, whether private or public. The central concepts of the book--'mission,' 'distinctive competence'--have become so much a part of our vocabulary that we sometimes forget they had to be invented and that Selznick invented them. His reminder that the true exercise of leadership transcends a concern with mere efficiency is even more appropriate in today's era of quasi-scientific thought about organizations than it was when, presciently, he first set it forth in 1957."--James Q. Wilson, Harvard University

Organizational Culture and Leadership
Edgar H. Schein
John Wiley & Sons, 24-Mar-2006 - Business & Economics - 464 pages

In this third edition of his classic book, Edgar Schein shows how to transform the abstract concept of culture into a practical tool that managers and students can use to understand the dynamics of organizations and change. Organizational pioneer Schein updates his influential understanding of culture--what it is, how it is created, how it evolves, and how it can be changed. Focusing on today's business realities, Schein draws on a wide range of contemporary research to redefine culture, offers new information on the topic of occupational cultures, and demonstrates the crucial role leaders play in successfully applying the principles of culture to achieve organizational goals. He also tackles the complex question of how an existing culture can be changed--one of the toughest challenges of leadership. The result is a vital resource for understanding and practicing organizational effectiveness.

November 1, 2016

November - Management Knowledge Revision

November (Strategic Management & Financial Management)

Strategic Management

First week

What is Strategy - Review Notes
The Strategic Management Process - Review Notes

Analysis of Firm's External Environment for Strategy Making

Financial Management

An Overview of Financial Management - Introduction to Financial Management of Companies
Financial Markets and Institutions

Financial Statements and Taxes
Financial Statement Analysis for Financial Decision Making

Time Value of Money
Determination of Interest Rates in Financial Markets

Bond Valuation
Risk and Rates of Return on Financial Assets

Third Week

Valuation of Common Stock and Preferred Stock
Cost of Equity and Debt Capital

Capital Assets - Projects - Proposals Appraisal
Capital Budgeting and Risk Analysis of Projects

Capital Structure and Leverage
Dividend Policy

Working Capital Management
Financial Management of Inventory

Management of Investment in Accounts Receivable
Management of Cash and Marketable Securities

Fourth Week

Long Term Finance for Companies - USA
Financial Management Aspects of Mergers and Acquisitions

Role of Finance Managers in Enterprise Risk Management
International Finance and Financial Management in Multinational Company

December Revision Plan

One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December

Updated  2 November 2016,  28 November 2016