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Notice (8): Undefined variable: file [APP/View/Elements/side_bar.ctp, line 60]Code Context// $file = 'http://aabhiyan:QUVLg8Wzs2F7G9N7@nepalstock.com.np/api/indexdata.xml';if(!$xml = simplexml_load_file($file)){$viewFile = '/var/www/html/newbusinessage.com/app/View/Elements/side_bar.ctp' $dataForView = array( 'articles' => array( (int) 0 => array( 'Article' => array( [maximum depth reached] ) ), (int) 1 => array( 'Article' => array( [maximum depth reached] ) ) ), 'current_user' => null, 'logged_in' => false ) $articles = array( (int) 0 => array( 'Article' => array( 'id' => '2644', 'article_category_id' => '170', 'title' => 'Evolve Or Ease Out Non-performing Employees', 'sub_title' => '', 'summary' => null, 'content' => '<div> <strong>--By Purna Man Shakya</strong></div> <div> </div> <div> A study shows that 60 per cent of a workforce includes average workers based on a 20-60-20-percent rule. Half of the remaining 40 per cent consists of top performers, and the other half includes poor performers. The poor performers can cause the most harm if employers don’t address their productivity problems. Employees who get away with underperforming create laziness in the workplace that hampers the productivity of others. So, in order not to retain non-performing employees three major steps should be taken.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Identify performers from the non-performers</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Explore reasons of non-performance</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Corrective actions and administering formal discipline</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Identify performers from the non-performers</strong></span></div> <div> Generally saying performers make positive contributions in the achievement of both team and organizational goals and non-performers hardly make such contributions. So, identification of performers is the major strategic step towards non-retaining non-performing employees. Performers normally exhibit following behaviours: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are efficient in terms of communication, workloads handling, change management, managing personal and professional developments.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They prefer to work closely with co-workers and exhibit inspirational leadership. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are good at planning their own futures and also use the work they do with the employers to help them grow their ambitions. They are often mentors and trainers in the workplace because they thrive on helping others improve their productivity. They can determine what they must accomplish, set goals and organize themselves to achieve these goals efficiently. They also actively try to improve their performance, which means they actively find resources they need. It also means they tend to learn from their own mistakes. Usually they are better at self-direction.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They recognize that they are their own bosses and the employer is a consumer. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are fearless when it comes to doing what it takes to succeed. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Performers also generate many of a company’s new ideas because they tend to look for ways to improve procedures to maximize their own productivity. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They adhere to policies, procedures, and regulations </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They also participate in meetings and other activities for the meaningful outputs.</div> <div> </div> <div> Failing to comply with the above behaviours will qualify a person to be a non-performer.</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Explore reasons of non-performance</strong></span></div> <div> Secondly we should explore reasons of non-performance. Reasons of non-performance can be discussed under four dimensions:</div> <div> </div> <div> <span style="font-size: 14px;"><strong>a. Employee</strong></span></div> <div> The employee may:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Lack requisite technical skills, public relation skills, and work ethics.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>May be an acceptable performer but is unhappy and wants a different position.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have an undisclosed learning disability or medical condition affecting performance</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have problems with authority: rejects idea that someone will judge their work</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have mental health challenges: depression, personality disorder, post-traumatic stress disorders, etc.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>b. Poor employee grooming by supervisor</strong></span></div> <div> Sometimes supervisors also contribute in grooming poor employees. An employee has the capacity to perform at a higher level but is not been given initial tools and direction to create an opportunity for success. The employees have different assumptions, about what is considered good performance by the supervisor. This situation is often created when supervisor fails to meet regularly with the employees. The supervisor is called as a poor communicator when an employee does not understand relative priorities of various tasks, does not know company policies or procedures and also does not understand what supervisor likes, wants or dislikes.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>c. Job</strong></span></div> <div> Sometimes the person is capable and knows what to do but the volume is just too high for one person to handle. Another issue is whether the employee has enough information and tools to complete their work in an optimum fashion or not. When unrelated or obviously different tasks are thrown together, it may be difficult to find the unique individual who is good at all of them. An example would be a position that requires high-level people relational skills and high-level scientific skills. Sometimes poor job design also contributes towards non-performance. Some of the potential job design issues are:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Job volume is based on extremely high performer and person is new</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Job contains too many unrelated accountabilities</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Quality standards are impossible to meet</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The job qualifications used in recruitment don’t actually match what is required for the position.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>d. Workplace atmosphere</strong></span></div> <div> Most of us have experienced a toxic workplace environment in which good employees are so distracted by stress and drama that they cannot properly attend to job performance. Here are potential environmental issues that might be a source of non-performance.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The workplace atmosphere is excessively negative with toxic co-workers, bosses and power struggles. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>A powerful informal leader controlling activities.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Good people aren’t consistently praised/rewarded and so become disinterested.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Negative conduct is not redirected so that co-workers are stressed by co-worker’s abusive behaviour.</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Corrective actions and administering formal discipline</strong></span></div> <div> Dealing with a non-performing staff member is one of the most difficult tasks one faces as a manager. Before taking actions all the options should be considered carefully. Formal discipline is one option, but this can be awkward and disruptive to the team, and may have legal implications. Formal discipline should be used only as a last resort tool when all else has failed. As per Labour Law of Nepal employees cannot be terminated on performance ground but can be terminated on the ground of misconduct. But due to employee union’s influence it is being hard to terminate employees even on misconduct ground. So, formal disciplinary action, such as formal warnings, suspension or termination should be exercised only when all other options are exhausted. If an organization does everything in its power to help a non-performing employee and still remains unsuccessful, it may have to resort to formal discipline. Four less-severe strategies are explained below. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>a. Counsel to correct poor behaviour or performance.</strong></span></div> <div> Counselling is a pre-planned informal discussion with a team member. The goal is to raise awareness that a problem exists and correct behaviour. During a counselling meeting, problem should be clearly stated; employee should be asked for his/her thoughts about the situation. There should be clarity on both sides on “what needs to be done differently now onwards along with clarity on action plan”. The counselling should end up with encouragement and should set up follow up meeting to discuss results.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>b. Confront inappropriate behaviour.</strong></span></div> <div> Confrontation is an unplanned response to an urgent need to intervene when an employee exhibits poor performance or behaviour. An example may be when a manager witnesses an action that compromises company safety regulations, policies, or procedures. </div> <div> Confrontation should: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>include observation, inquiry, and listening</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>acknowledge the effort and explain the concern</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>teach corrective action</div> <div> </div> <div> <span style="font-size: 14px;"><strong>c. Document both good and bad performance.</strong></span></div> <div> If the problem intensifies, employee’s performance and behaviour should be documented which will be useful while defending organization legally in future. Documentation should be fair, consistent, and objective. In addition, documentation should note corrective actions and results- good or bad. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>d. Measure performance.</strong></span></div> <div> Measurement of performance gives foundation for raises, promotions, and corrective actions. Without measurable performance objectives, organization gets open to all kinds of arguments. In the case of disciplinary action, the arguments may have legal implications. Organization must be able to demonstrate objectively the events leading up to disciplinary action. The evidence must speak for itself. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>e. Withdrawing responsibilities</strong></span>.</div> <div> This step should be taken as a tool to demotivate and harass non-performing staffs for encouraging him/her to take voluntary retirement.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>f. Administer formal discipline as a last resort.</strong></span></div> <div> If all else fails to bring compliance, organization must be prepared to enter into the disciplinary process. Discipline is a formal process with serious implications and can put organization in a position to defend itself legally. Generally there are three outcomes of the formal disciplinary process, and in two of the three possible outcomes, organization will lose the employee: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will live up to the expectations and successfully correct his or her behaviour or performance.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will not live up to the expectations and will eventually be terminated.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will resign outright.</div> <div> </div> <div> When taking formal disciplinary action company’s policy should be followed. Progressive disciplinary action may consist of first level warning, second level warning, stopping pay increment, suspension without pay and termination. At the same time upper management, human resources, legal counsel and any other parties with an interest in action should be consulted before taking such actions. Discipline must be applied consistently in all situations. It should be kept in mind that the organization acts in accordance with the country’s laws, any existing contracts and any collective bargaining agreement.</div> <div> </div> <div> The bottom line of termination is; it should be done with proper homework in order to provide safety to the organization and staffs.</div> <div style="text-align: right;"> <em>(Based on a discussion organised by Real Solutions, a Human Resource consulting firm recently)</em></div> <div> </div>', 'published' => true, 'created' => '2014-02-20', 'modified' => '2014-12-22', 'keywords' => 'new business age management gyan news & articles, management gyan news & articles from new business age nepal, management gyan headlines from nepal, current and latest management gyan news from nepal, economic news from nepal, nepali management gyan economic news and events, ongoing management gy', 'description' => 'Performers generate many of the company’s new ideas because they tend to look for ways to improve procedures to maximize their own productivity.', 'sortorder' => '2487', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 1 => array( 'Article' => array( 'id' => '2542', 'article_category_id' => '170', 'title' => 'Evolving A Favorable Entrepreneurial Framework In Nepal', 'sub_title' => '', 'summary' => null, 'content' => '<div> </div> <div> </div> <div> <strong>--By Wim Lancsweert</strong></div> <div> </div> <div> The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. Empirical analysis, investigating the relationship between entrepreneurship and economic growth at the country and regional level has indicated that a country’s development depends greatly on a dynamic entrepreneurship sector. It also shows that the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity and with the quantity and quality of entrepreneurial supply.</div> <div> </div> <div> Entrepreneurship is difficult to analyze using the traditional tools of economics e.g. calculus and general equilibrium models. These equilibrium models are central to mainstream economics but they exclude entrepreneurship. Both Schumpeter and Kirzner, who brought entrepreneurship on center stage, argue that entrepreneurs do not tolerate equilibrium. Schumpeter introduced the notion of creative destruction as a competitive process in which entrepreneurs are continuously looking for new ideas that will render their rivals’ ideas obsolete. The fundamental element that induces that creative destruction is innovation. We have evolved from the traditional, neo-classical theory which holds that the economic growth of a country is driven by enhancement to capital and labour input and have come to realize that the level of technological innovation contributes significantly to economic performance, particularly at the firm and industry level. So innovation can be easily linked to output and productivity growth. </div> <div> </div> <div> Entrepreneurship is the missing link between investments in new knowledge and economic growth, but it is also conducive to innovative activity and unrestrained competition. It is the efforts of an individual, the entrepreneur, who goes against the odds in translating a vision into a successful business enterprise. It is a process of searching and exploiting an opportunity, a previously unexploited opportunity. So, entrepreneurship can be defined as “undertaking the organization and management of an enterprise involving innovativeness, independence and risk, as well as the opportunity for profit” (Timmons and Spinelli 2006, 10)</div> <div> </div> <div> As mentioned earlier, entrepreneurship is difficult to analyze, using traditional econometric models. However, there is now a multi-country survey effort, known as the Global Entrepreneurship Monitor (GEM) project, which is making headway in understanding how different types of entrepreneurship affect development. The GEM research programme is an annual assessment of the national level of entrepreneurial activity. Initiated in 1999 with 10 countries, expanded to 21 in the year 2000 and 69 countries in 2012, the program covers both developed and developing countries. It measures the Total Entrepreneurial Activity (TEA), defined as percentage of adult population (18 – 64 years old) that is either actively involved in starting a new venture or is the owner/manager of a business that is less than 42 months old. Its objectives are:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To allow for comparisons with regard to the level of entrepreneurial activity among different economies.</div> <div> •To determine the extent to which entrepreneurial activity influences economic growth within individual economies</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To identify the factors which encourage and/or hinder entrepreneurial activity</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To guide the formulation of effective and targeted policies aimed at stimulating entrepreneurship</div> <div> </div> <div> </div> <div> It is widely recognized that, in examining the relation between entrepreneurship and economic growth, a distinction should be made between ‘necessity entrepreneurship,’ which is having to become an entrepreneur because you have no better option, and “opportunity entrepreneurship,” which is an active choice to start a new enterprise, based on the perception that an unexploited or underexploited business opportunity exists. While it is easy to see that starting a new business to exploit a perceived business opportunity would lead to economic development, it is also possible that necessity entrepreneurship may not lead to economic development. Being pushed into entrepreneurship (self-employment) because all other options for work are either absent or unsatisfactory can even lead to underdevelopment.</div> <div> </div> <div> Innovation is not the only important prerequisite for entrepreneurship development, there are other conditions, major features of a country’s socio-economic milieu, that are expected to have a significant impact on the entrepreneurial sector. Much research has been done on creating an environment where entrepreneurship can flourish and grow. Besides the personal traits, like alertness, creativity, ambition, perseverance, that, according to experts, lie at the origin of successful entrepreneurship, there are conditions, favourable to enhance entrepreneurial activity, which are largely dependent on government interventions.</div> <div> </div> <div> <img alt="Business Plan" src="/userfiles/images/mg1%20(Copy).jpg" style="width: 550px; height: 385px; margin-left: 10px; margin-right: 10px;" /></div> <div> </div> <div> These Entrepreneurial Framework Conditions (EFCs), favourable to enhance the rate of entrepreneurial activity, can be:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Cultural : open mindedness, acceptance of risk, long term orientation, “business culture”: a more business friendly environment</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Institutional: stability in government, regulatory incentives (taxation, property rights...)</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Financial: access to finance, credit, available financial resources, including grants and subsidies</div> <div> </div> <div> The GEM - 2009 Report names education and training in entrepreneurial skills as one of the entrepreneurial framework conditions that can create a favourable environment in which entrepreneurship can flourish.</div> <div> </div> <div> “The extent to which training in creating or managing small, new, or growing business is incorporated within the educational and training system at all levels. Subsequent empirical studies have shown that there are two distinct sub-dimensions to this EFC: primary and secondary school level entrepreneurship education and training, and post-school entrepreneurship education and training”</div> <div> </div> <div> Values of entrepreneurship and innovation can be instilled in the students by introducing entrepreneurship in the curriculum from primary school level. </div> <div> </div> <div> The government’s priority should be on how to become a nation of entrepreneurs, the job-creators, rather than a nation of job-seekers or providing employment to everyone.</div> <div> </div> <div> The European Union, confronted with rapidly increasing unemployment, has recently introduced an action plan, called the Entrepreneurship 2020 Action Plan to unleash Europe’s entrepreneurial potential, aimed at fostering entrepreneurship as the main driver for economic growth. Currently 11 % of European citizens are entrepreneurs, 45% would like to be their own boss if they could.</div> <div> </div> <div> Entrepreneurial education and training is one of the major action areas. Surveys suggest that between 15% and 20% of students who participate in a mini-company programme in secondary school will later start their own company. This figure is about three to five times compared to similar figure for the general population. Other initiatives will be taken at the higher education level and the key competence, “entrepreneurship”, will be imbedded into curricula across primary, secondary, vocational, higher and adult education before the end of 2015.</div> <div> </div> <div> The European Commission will finance programmes aimed at developing a market for microfinance in Europe, and make resources for micro-financing available to member states and regions. Member states will be invited to consider the need for simplification of tax legislation, making it more favourable for early stage businesses, and make use of structural funds resources to set up microfinance support schemes.</div> <div> </div> <div> In order to create a more “business friendly” environment, the Commission will step up entrepreneurship promotion activities and appoint known entrepreneurs as National Entrepreneurship Ambassadors to become “the face of entrepreneurship” in their countries. The member states will also be invited to improve the efficiency of national insolvency laws, including the length and costs of the period of discharge from bankruptcy.</div> <div> </div> <div> By reducing administrative complexities and simplifying employment legislation, flexibility of time and place of work will be greatly enhanced. Member states are invited to reduce time for licensing necessary to start a business activity to one month by 2015.</div> <div> </div> <div> Europe will also open paths into entrepreneurship for demographic groups that are underrepresented within the entrepreneurial population: women, seniors, migrants and the unemployed.</div> <div> </div> <div> Looking at the situation in Nepal and examining the entrepreneurial framework, a favourable socio-economic environment seems to be lacking. In the “Doing Business Report” 2014, published by the World Bank, 29 October 2013, assessing regulations in 189 countries on the ease of doing business, Nepal ranks 105, which is below average. The report deals with areas like starting a business, getting credit, registering property, enforcing contracts, resolving insolvency, paying taxes, trading across borders and protecting investors. Clearly, regulatory hurdles, corruption, political intervention etc. influence this score and the absence of significant regulatory reforms accounts for the limited progress in ranking over the years.</div> <div> </div> <div> <img alt="Management Gyan" src="/userfiles/images/mg2%20(Copy).jpg" style="margin-left: 10px; margin-right: 10px; width: 550px; height: 336px;" /></div> <div> </div> <div> Several Nepali authors argue that the first step to building an entrepreneurial ecosystem would be finding ways to tackle the stigma held by this society towards entrepreneurship and profit-making. In order to create a supportive environment to entrepreneurial activity, the government should look into emphasizing entrepreneurial sensitization in order to instill a mindset of entrepreneurship.</div> <div> </div> <div> Entrepreneurial education and training should be imbedded into the curricula across primary, secondary, vocational, higher and adult education. A particular focus should be on women’s entrepreneurship, regarded by many as a crucial way to fight poverty and gender inequity in society.</div> <div> </div> <div> The curriculum must be revised and teachers trained in teaching entrepreneurial skills with due attention to the gender issues involved. Simply introducing children to businesses owned by women could go a long way to changing the perception of women and work and could encourage leadership by women from an early age.</div> <div> </div> <div> By implementing the right policies the government of Nepal can help provide the conditions needed to tap the immense potential in business opportunities and encourage bright men and women to explore and exploit these opportunities, generating employment opportunities, raising income and breaking the vicious circle of poverty.</div> <div> </div> <div> <em>(Wim Lancsweert is VSO Education Livelihoods Linkage Coordinator in Kathmandu, Nepal.)</em></div>', 'published' => true, 'created' => '2014-01-28', 'modified' => '2014-02-08', 'keywords' => 'new business age management gyan news & articles, management gyan news & articles from new business age nepal, management gyan headlines from nepal, current and latest management gyan news from nepal, economic news from nepal, nepali management gyan economic news and events, ongoing management gy', 'description' => 'The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. Empirical analysis, investigating the relationship between entrepreneurship and economic growth at the country and regional level has indicated that a country’s development depends greatly on a dynamic entrepreneurship sector. It also shows that the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity and with the quantity and quality of entrepreneurial supply.', 'sortorder' => '2388', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ) ) $current_user = null $logged_in = falseinclude - APP/View/Elements/side_bar.ctp, line 60 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
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Half of the remaining 40 per cent consists of top performers, and the other half includes poor performers. The poor performers can cause the most harm if employers don’t address their productivity problems. Employees who get away with underperforming create laziness in the workplace that hampers the productivity of others. So, in order not to retain non-performing employees three major steps should be taken.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Identify performers from the non-performers</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Explore reasons of non-performance</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Corrective actions and administering formal discipline</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Identify performers from the non-performers</strong></span></div> <div> Generally saying performers make positive contributions in the achievement of both team and organizational goals and non-performers hardly make such contributions. So, identification of performers is the major strategic step towards non-retaining non-performing employees. Performers normally exhibit following behaviours: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are efficient in terms of communication, workloads handling, change management, managing personal and professional developments.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They prefer to work closely with co-workers and exhibit inspirational leadership. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are good at planning their own futures and also use the work they do with the employers to help them grow their ambitions. They are often mentors and trainers in the workplace because they thrive on helping others improve their productivity. They can determine what they must accomplish, set goals and organize themselves to achieve these goals efficiently. They also actively try to improve their performance, which means they actively find resources they need. It also means they tend to learn from their own mistakes. Usually they are better at self-direction.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They recognize that they are their own bosses and the employer is a consumer. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are fearless when it comes to doing what it takes to succeed. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Performers also generate many of a company’s new ideas because they tend to look for ways to improve procedures to maximize their own productivity. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They adhere to policies, procedures, and regulations </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They also participate in meetings and other activities for the meaningful outputs.</div> <div> </div> <div> Failing to comply with the above behaviours will qualify a person to be a non-performer.</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Explore reasons of non-performance</strong></span></div> <div> Secondly we should explore reasons of non-performance. Reasons of non-performance can be discussed under four dimensions:</div> <div> </div> <div> <span style="font-size: 14px;"><strong>a. Employee</strong></span></div> <div> The employee may:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Lack requisite technical skills, public relation skills, and work ethics.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>May be an acceptable performer but is unhappy and wants a different position.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have an undisclosed learning disability or medical condition affecting performance</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have problems with authority: rejects idea that someone will judge their work</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have mental health challenges: depression, personality disorder, post-traumatic stress disorders, etc.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>b. Poor employee grooming by supervisor</strong></span></div> <div> Sometimes supervisors also contribute in grooming poor employees. An employee has the capacity to perform at a higher level but is not been given initial tools and direction to create an opportunity for success. The employees have different assumptions, about what is considered good performance by the supervisor. This situation is often created when supervisor fails to meet regularly with the employees. The supervisor is called as a poor communicator when an employee does not understand relative priorities of various tasks, does not know company policies or procedures and also does not understand what supervisor likes, wants or dislikes.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>c. Job</strong></span></div> <div> Sometimes the person is capable and knows what to do but the volume is just too high for one person to handle. Another issue is whether the employee has enough information and tools to complete their work in an optimum fashion or not. When unrelated or obviously different tasks are thrown together, it may be difficult to find the unique individual who is good at all of them. An example would be a position that requires high-level people relational skills and high-level scientific skills. Sometimes poor job design also contributes towards non-performance. Some of the potential job design issues are:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Job volume is based on extremely high performer and person is new</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Job contains too many unrelated accountabilities</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Quality standards are impossible to meet</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The job qualifications used in recruitment don’t actually match what is required for the position.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>d. Workplace atmosphere</strong></span></div> <div> Most of us have experienced a toxic workplace environment in which good employees are so distracted by stress and drama that they cannot properly attend to job performance. Here are potential environmental issues that might be a source of non-performance.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The workplace atmosphere is excessively negative with toxic co-workers, bosses and power struggles. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>A powerful informal leader controlling activities.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Good people aren’t consistently praised/rewarded and so become disinterested.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Negative conduct is not redirected so that co-workers are stressed by co-worker’s abusive behaviour.</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Corrective actions and administering formal discipline</strong></span></div> <div> Dealing with a non-performing staff member is one of the most difficult tasks one faces as a manager. Before taking actions all the options should be considered carefully. Formal discipline is one option, but this can be awkward and disruptive to the team, and may have legal implications. Formal discipline should be used only as a last resort tool when all else has failed. As per Labour Law of Nepal employees cannot be terminated on performance ground but can be terminated on the ground of misconduct. But due to employee union’s influence it is being hard to terminate employees even on misconduct ground. So, formal disciplinary action, such as formal warnings, suspension or termination should be exercised only when all other options are exhausted. If an organization does everything in its power to help a non-performing employee and still remains unsuccessful, it may have to resort to formal discipline. Four less-severe strategies are explained below. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>a. Counsel to correct poor behaviour or performance.</strong></span></div> <div> Counselling is a pre-planned informal discussion with a team member. The goal is to raise awareness that a problem exists and correct behaviour. During a counselling meeting, problem should be clearly stated; employee should be asked for his/her thoughts about the situation. There should be clarity on both sides on “what needs to be done differently now onwards along with clarity on action plan”. The counselling should end up with encouragement and should set up follow up meeting to discuss results.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>b. Confront inappropriate behaviour.</strong></span></div> <div> Confrontation is an unplanned response to an urgent need to intervene when an employee exhibits poor performance or behaviour. An example may be when a manager witnesses an action that compromises company safety regulations, policies, or procedures. </div> <div> Confrontation should: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>include observation, inquiry, and listening</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>acknowledge the effort and explain the concern</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>teach corrective action</div> <div> </div> <div> <span style="font-size: 14px;"><strong>c. Document both good and bad performance.</strong></span></div> <div> If the problem intensifies, employee’s performance and behaviour should be documented which will be useful while defending organization legally in future. Documentation should be fair, consistent, and objective. In addition, documentation should note corrective actions and results- good or bad. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>d. Measure performance.</strong></span></div> <div> Measurement of performance gives foundation for raises, promotions, and corrective actions. Without measurable performance objectives, organization gets open to all kinds of arguments. In the case of disciplinary action, the arguments may have legal implications. Organization must be able to demonstrate objectively the events leading up to disciplinary action. The evidence must speak for itself. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>e. Withdrawing responsibilities</strong></span>.</div> <div> This step should be taken as a tool to demotivate and harass non-performing staffs for encouraging him/her to take voluntary retirement.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>f. Administer formal discipline as a last resort.</strong></span></div> <div> If all else fails to bring compliance, organization must be prepared to enter into the disciplinary process. Discipline is a formal process with serious implications and can put organization in a position to defend itself legally. Generally there are three outcomes of the formal disciplinary process, and in two of the three possible outcomes, organization will lose the employee: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will live up to the expectations and successfully correct his or her behaviour or performance.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will not live up to the expectations and will eventually be terminated.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will resign outright.</div> <div> </div> <div> When taking formal disciplinary action company’s policy should be followed. Progressive disciplinary action may consist of first level warning, second level warning, stopping pay increment, suspension without pay and termination. At the same time upper management, human resources, legal counsel and any other parties with an interest in action should be consulted before taking such actions. Discipline must be applied consistently in all situations. It should be kept in mind that the organization acts in accordance with the country’s laws, any existing contracts and any collective bargaining agreement.</div> <div> </div> <div> The bottom line of termination is; it should be done with proper homework in order to provide safety to the organization and staffs.</div> <div style="text-align: right;"> <em>(Based on a discussion organised by Real Solutions, a Human Resource consulting firm recently)</em></div> <div> </div>', 'published' => true, 'created' => '2014-02-20', 'modified' => '2014-12-22', 'keywords' => 'new business age management gyan news & articles, management gyan news & articles from new business age nepal, management gyan headlines from nepal, current and latest management gyan news from nepal, economic news from nepal, nepali management gyan economic news and events, ongoing management gy', 'description' => 'Performers generate many of the company’s new ideas because they tend to look for ways to improve procedures to maximize their own productivity.', 'sortorder' => '2487', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 1 => array( 'Article' => array( 'id' => '2542', 'article_category_id' => '170', 'title' => 'Evolving A Favorable Entrepreneurial Framework In Nepal', 'sub_title' => '', 'summary' => null, 'content' => '<div> </div> <div> </div> <div> <strong>--By Wim Lancsweert</strong></div> <div> </div> <div> The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. Empirical analysis, investigating the relationship between entrepreneurship and economic growth at the country and regional level has indicated that a country’s development depends greatly on a dynamic entrepreneurship sector. It also shows that the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity and with the quantity and quality of entrepreneurial supply.</div> <div> </div> <div> Entrepreneurship is difficult to analyze using the traditional tools of economics e.g. calculus and general equilibrium models. These equilibrium models are central to mainstream economics but they exclude entrepreneurship. Both Schumpeter and Kirzner, who brought entrepreneurship on center stage, argue that entrepreneurs do not tolerate equilibrium. Schumpeter introduced the notion of creative destruction as a competitive process in which entrepreneurs are continuously looking for new ideas that will render their rivals’ ideas obsolete. The fundamental element that induces that creative destruction is innovation. We have evolved from the traditional, neo-classical theory which holds that the economic growth of a country is driven by enhancement to capital and labour input and have come to realize that the level of technological innovation contributes significantly to economic performance, particularly at the firm and industry level. So innovation can be easily linked to output and productivity growth. </div> <div> </div> <div> Entrepreneurship is the missing link between investments in new knowledge and economic growth, but it is also conducive to innovative activity and unrestrained competition. It is the efforts of an individual, the entrepreneur, who goes against the odds in translating a vision into a successful business enterprise. It is a process of searching and exploiting an opportunity, a previously unexploited opportunity. So, entrepreneurship can be defined as “undertaking the organization and management of an enterprise involving innovativeness, independence and risk, as well as the opportunity for profit” (Timmons and Spinelli 2006, 10)</div> <div> </div> <div> As mentioned earlier, entrepreneurship is difficult to analyze, using traditional econometric models. However, there is now a multi-country survey effort, known as the Global Entrepreneurship Monitor (GEM) project, which is making headway in understanding how different types of entrepreneurship affect development. The GEM research programme is an annual assessment of the national level of entrepreneurial activity. Initiated in 1999 with 10 countries, expanded to 21 in the year 2000 and 69 countries in 2012, the program covers both developed and developing countries. It measures the Total Entrepreneurial Activity (TEA), defined as percentage of adult population (18 – 64 years old) that is either actively involved in starting a new venture or is the owner/manager of a business that is less than 42 months old. Its objectives are:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To allow for comparisons with regard to the level of entrepreneurial activity among different economies.</div> <div> •To determine the extent to which entrepreneurial activity influences economic growth within individual economies</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To identify the factors which encourage and/or hinder entrepreneurial activity</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To guide the formulation of effective and targeted policies aimed at stimulating entrepreneurship</div> <div> </div> <div> </div> <div> It is widely recognized that, in examining the relation between entrepreneurship and economic growth, a distinction should be made between ‘necessity entrepreneurship,’ which is having to become an entrepreneur because you have no better option, and “opportunity entrepreneurship,” which is an active choice to start a new enterprise, based on the perception that an unexploited or underexploited business opportunity exists. While it is easy to see that starting a new business to exploit a perceived business opportunity would lead to economic development, it is also possible that necessity entrepreneurship may not lead to economic development. Being pushed into entrepreneurship (self-employment) because all other options for work are either absent or unsatisfactory can even lead to underdevelopment.</div> <div> </div> <div> Innovation is not the only important prerequisite for entrepreneurship development, there are other conditions, major features of a country’s socio-economic milieu, that are expected to have a significant impact on the entrepreneurial sector. Much research has been done on creating an environment where entrepreneurship can flourish and grow. Besides the personal traits, like alertness, creativity, ambition, perseverance, that, according to experts, lie at the origin of successful entrepreneurship, there are conditions, favourable to enhance entrepreneurial activity, which are largely dependent on government interventions.</div> <div> </div> <div> <img alt="Business Plan" src="/userfiles/images/mg1%20(Copy).jpg" style="width: 550px; height: 385px; margin-left: 10px; margin-right: 10px;" /></div> <div> </div> <div> These Entrepreneurial Framework Conditions (EFCs), favourable to enhance the rate of entrepreneurial activity, can be:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Cultural : open mindedness, acceptance of risk, long term orientation, “business culture”: a more business friendly environment</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Institutional: stability in government, regulatory incentives (taxation, property rights...)</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Financial: access to finance, credit, available financial resources, including grants and subsidies</div> <div> </div> <div> The GEM - 2009 Report names education and training in entrepreneurial skills as one of the entrepreneurial framework conditions that can create a favourable environment in which entrepreneurship can flourish.</div> <div> </div> <div> “The extent to which training in creating or managing small, new, or growing business is incorporated within the educational and training system at all levels. Subsequent empirical studies have shown that there are two distinct sub-dimensions to this EFC: primary and secondary school level entrepreneurship education and training, and post-school entrepreneurship education and training”</div> <div> </div> <div> Values of entrepreneurship and innovation can be instilled in the students by introducing entrepreneurship in the curriculum from primary school level. </div> <div> </div> <div> The government’s priority should be on how to become a nation of entrepreneurs, the job-creators, rather than a nation of job-seekers or providing employment to everyone.</div> <div> </div> <div> The European Union, confronted with rapidly increasing unemployment, has recently introduced an action plan, called the Entrepreneurship 2020 Action Plan to unleash Europe’s entrepreneurial potential, aimed at fostering entrepreneurship as the main driver for economic growth. Currently 11 % of European citizens are entrepreneurs, 45% would like to be their own boss if they could.</div> <div> </div> <div> Entrepreneurial education and training is one of the major action areas. Surveys suggest that between 15% and 20% of students who participate in a mini-company programme in secondary school will later start their own company. This figure is about three to five times compared to similar figure for the general population. Other initiatives will be taken at the higher education level and the key competence, “entrepreneurship”, will be imbedded into curricula across primary, secondary, vocational, higher and adult education before the end of 2015.</div> <div> </div> <div> The European Commission will finance programmes aimed at developing a market for microfinance in Europe, and make resources for micro-financing available to member states and regions. Member states will be invited to consider the need for simplification of tax legislation, making it more favourable for early stage businesses, and make use of structural funds resources to set up microfinance support schemes.</div> <div> </div> <div> In order to create a more “business friendly” environment, the Commission will step up entrepreneurship promotion activities and appoint known entrepreneurs as National Entrepreneurship Ambassadors to become “the face of entrepreneurship” in their countries. The member states will also be invited to improve the efficiency of national insolvency laws, including the length and costs of the period of discharge from bankruptcy.</div> <div> </div> <div> By reducing administrative complexities and simplifying employment legislation, flexibility of time and place of work will be greatly enhanced. Member states are invited to reduce time for licensing necessary to start a business activity to one month by 2015.</div> <div> </div> <div> Europe will also open paths into entrepreneurship for demographic groups that are underrepresented within the entrepreneurial population: women, seniors, migrants and the unemployed.</div> <div> </div> <div> Looking at the situation in Nepal and examining the entrepreneurial framework, a favourable socio-economic environment seems to be lacking. In the “Doing Business Report” 2014, published by the World Bank, 29 October 2013, assessing regulations in 189 countries on the ease of doing business, Nepal ranks 105, which is below average. The report deals with areas like starting a business, getting credit, registering property, enforcing contracts, resolving insolvency, paying taxes, trading across borders and protecting investors. Clearly, regulatory hurdles, corruption, political intervention etc. influence this score and the absence of significant regulatory reforms accounts for the limited progress in ranking over the years.</div> <div> </div> <div> <img alt="Management Gyan" src="/userfiles/images/mg2%20(Copy).jpg" style="margin-left: 10px; margin-right: 10px; width: 550px; height: 336px;" /></div> <div> </div> <div> Several Nepali authors argue that the first step to building an entrepreneurial ecosystem would be finding ways to tackle the stigma held by this society towards entrepreneurship and profit-making. In order to create a supportive environment to entrepreneurial activity, the government should look into emphasizing entrepreneurial sensitization in order to instill a mindset of entrepreneurship.</div> <div> </div> <div> Entrepreneurial education and training should be imbedded into the curricula across primary, secondary, vocational, higher and adult education. A particular focus should be on women’s entrepreneurship, regarded by many as a crucial way to fight poverty and gender inequity in society.</div> <div> </div> <div> The curriculum must be revised and teachers trained in teaching entrepreneurial skills with due attention to the gender issues involved. Simply introducing children to businesses owned by women could go a long way to changing the perception of women and work and could encourage leadership by women from an early age.</div> <div> </div> <div> By implementing the right policies the government of Nepal can help provide the conditions needed to tap the immense potential in business opportunities and encourage bright men and women to explore and exploit these opportunities, generating employment opportunities, raising income and breaking the vicious circle of poverty.</div> <div> </div> <div> <em>(Wim Lancsweert is VSO Education Livelihoods Linkage Coordinator in Kathmandu, Nepal.)</em></div>', 'published' => true, 'created' => '2014-01-28', 'modified' => '2014-02-08', 'keywords' => 'new business age management gyan news & articles, management gyan news & articles from new business age nepal, management gyan headlines from nepal, current and latest management gyan news from nepal, economic news from nepal, nepali management gyan economic news and events, ongoing management gy', 'description' => 'The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. Empirical analysis, investigating the relationship between entrepreneurship and economic growth at the country and regional level has indicated that a country’s development depends greatly on a dynamic entrepreneurship sector. It also shows that the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity and with the quantity and quality of entrepreneurial supply.', 'sortorder' => '2388', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ) ) $current_user = null $logged_in = falsesimplexml_load_file - [internal], line ?? include - APP/View/Elements/side_bar.ctp, line 60 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
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Half of the remaining 40 per cent consists of top performers, and the other half includes poor performers. The poor performers can cause the most harm if employers don’t address their productivity problems. Employees who get away with underperforming create laziness in the workplace that hampers the productivity of others. So, in order not to retain non-performing employees three major steps should be taken.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Identify performers from the non-performers</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Explore reasons of non-performance</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Corrective actions and administering formal discipline</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Identify performers from the non-performers</strong></span></div> <div> Generally saying performers make positive contributions in the achievement of both team and organizational goals and non-performers hardly make such contributions. So, identification of performers is the major strategic step towards non-retaining non-performing employees. Performers normally exhibit following behaviours: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are efficient in terms of communication, workloads handling, change management, managing personal and professional developments.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They prefer to work closely with co-workers and exhibit inspirational leadership. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are good at planning their own futures and also use the work they do with the employers to help them grow their ambitions. They are often mentors and trainers in the workplace because they thrive on helping others improve their productivity. They can determine what they must accomplish, set goals and organize themselves to achieve these goals efficiently. They also actively try to improve their performance, which means they actively find resources they need. It also means they tend to learn from their own mistakes. Usually they are better at self-direction.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They recognize that they are their own bosses and the employer is a consumer. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are fearless when it comes to doing what it takes to succeed. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Performers also generate many of a company’s new ideas because they tend to look for ways to improve procedures to maximize their own productivity. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They adhere to policies, procedures, and regulations </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They also participate in meetings and other activities for the meaningful outputs.</div> <div> </div> <div> Failing to comply with the above behaviours will qualify a person to be a non-performer.</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Explore reasons of non-performance</strong></span></div> <div> Secondly we should explore reasons of non-performance. Reasons of non-performance can be discussed under four dimensions:</div> <div> </div> <div> <span style="font-size: 14px;"><strong>a. Employee</strong></span></div> <div> The employee may:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Lack requisite technical skills, public relation skills, and work ethics.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>May be an acceptable performer but is unhappy and wants a different position.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have an undisclosed learning disability or medical condition affecting performance</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have problems with authority: rejects idea that someone will judge their work</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have mental health challenges: depression, personality disorder, post-traumatic stress disorders, etc.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>b. Poor employee grooming by supervisor</strong></span></div> <div> Sometimes supervisors also contribute in grooming poor employees. An employee has the capacity to perform at a higher level but is not been given initial tools and direction to create an opportunity for success. The employees have different assumptions, about what is considered good performance by the supervisor. This situation is often created when supervisor fails to meet regularly with the employees. The supervisor is called as a poor communicator when an employee does not understand relative priorities of various tasks, does not know company policies or procedures and also does not understand what supervisor likes, wants or dislikes.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>c. Job</strong></span></div> <div> Sometimes the person is capable and knows what to do but the volume is just too high for one person to handle. Another issue is whether the employee has enough information and tools to complete their work in an optimum fashion or not. When unrelated or obviously different tasks are thrown together, it may be difficult to find the unique individual who is good at all of them. An example would be a position that requires high-level people relational skills and high-level scientific skills. Sometimes poor job design also contributes towards non-performance. Some of the potential job design issues are:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Job volume is based on extremely high performer and person is new</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Job contains too many unrelated accountabilities</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Quality standards are impossible to meet</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The job qualifications used in recruitment don’t actually match what is required for the position.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>d. Workplace atmosphere</strong></span></div> <div> Most of us have experienced a toxic workplace environment in which good employees are so distracted by stress and drama that they cannot properly attend to job performance. Here are potential environmental issues that might be a source of non-performance.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The workplace atmosphere is excessively negative with toxic co-workers, bosses and power struggles. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>A powerful informal leader controlling activities.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Good people aren’t consistently praised/rewarded and so become disinterested.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Negative conduct is not redirected so that co-workers are stressed by co-worker’s abusive behaviour.</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Corrective actions and administering formal discipline</strong></span></div> <div> Dealing with a non-performing staff member is one of the most difficult tasks one faces as a manager. Before taking actions all the options should be considered carefully. Formal discipline is one option, but this can be awkward and disruptive to the team, and may have legal implications. Formal discipline should be used only as a last resort tool when all else has failed. As per Labour Law of Nepal employees cannot be terminated on performance ground but can be terminated on the ground of misconduct. But due to employee union’s influence it is being hard to terminate employees even on misconduct ground. So, formal disciplinary action, such as formal warnings, suspension or termination should be exercised only when all other options are exhausted. If an organization does everything in its power to help a non-performing employee and still remains unsuccessful, it may have to resort to formal discipline. Four less-severe strategies are explained below. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>a. Counsel to correct poor behaviour or performance.</strong></span></div> <div> Counselling is a pre-planned informal discussion with a team member. The goal is to raise awareness that a problem exists and correct behaviour. During a counselling meeting, problem should be clearly stated; employee should be asked for his/her thoughts about the situation. There should be clarity on both sides on “what needs to be done differently now onwards along with clarity on action plan”. The counselling should end up with encouragement and should set up follow up meeting to discuss results.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>b. Confront inappropriate behaviour.</strong></span></div> <div> Confrontation is an unplanned response to an urgent need to intervene when an employee exhibits poor performance or behaviour. An example may be when a manager witnesses an action that compromises company safety regulations, policies, or procedures. </div> <div> Confrontation should: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>include observation, inquiry, and listening</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>acknowledge the effort and explain the concern</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>teach corrective action</div> <div> </div> <div> <span style="font-size: 14px;"><strong>c. Document both good and bad performance.</strong></span></div> <div> If the problem intensifies, employee’s performance and behaviour should be documented which will be useful while defending organization legally in future. Documentation should be fair, consistent, and objective. In addition, documentation should note corrective actions and results- good or bad. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>d. Measure performance.</strong></span></div> <div> Measurement of performance gives foundation for raises, promotions, and corrective actions. Without measurable performance objectives, organization gets open to all kinds of arguments. In the case of disciplinary action, the arguments may have legal implications. Organization must be able to demonstrate objectively the events leading up to disciplinary action. The evidence must speak for itself. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>e. Withdrawing responsibilities</strong></span>.</div> <div> This step should be taken as a tool to demotivate and harass non-performing staffs for encouraging him/her to take voluntary retirement.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>f. Administer formal discipline as a last resort.</strong></span></div> <div> If all else fails to bring compliance, organization must be prepared to enter into the disciplinary process. Discipline is a formal process with serious implications and can put organization in a position to defend itself legally. Generally there are three outcomes of the formal disciplinary process, and in two of the three possible outcomes, organization will lose the employee: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will live up to the expectations and successfully correct his or her behaviour or performance.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will not live up to the expectations and will eventually be terminated.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will resign outright.</div> <div> </div> <div> When taking formal disciplinary action company’s policy should be followed. Progressive disciplinary action may consist of first level warning, second level warning, stopping pay increment, suspension without pay and termination. At the same time upper management, human resources, legal counsel and any other parties with an interest in action should be consulted before taking such actions. Discipline must be applied consistently in all situations. It should be kept in mind that the organization acts in accordance with the country’s laws, any existing contracts and any collective bargaining agreement.</div> <div> </div> <div> The bottom line of termination is; it should be done with proper homework in order to provide safety to the organization and staffs.</div> <div style="text-align: right;"> <em>(Based on a discussion organised by Real Solutions, a Human Resource consulting firm recently)</em></div> <div> </div>', 'published' => true, 'created' => '2014-02-20', 'modified' => '2014-12-22', 'keywords' => 'new business age management gyan news & articles, management gyan news & articles from new business age nepal, management gyan headlines from nepal, current and latest management gyan news from nepal, economic news from nepal, nepali management gyan economic news and events, ongoing management gy', 'description' => 'Performers generate many of the company’s new ideas because they tend to look for ways to improve procedures to maximize their own productivity.', 'sortorder' => '2487', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 1 => array( 'Article' => array( 'id' => '2542', 'article_category_id' => '170', 'title' => 'Evolving A Favorable Entrepreneurial Framework In Nepal', 'sub_title' => '', 'summary' => null, 'content' => '<div> </div> <div> </div> <div> <strong>--By Wim Lancsweert</strong></div> <div> </div> <div> The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. Empirical analysis, investigating the relationship between entrepreneurship and economic growth at the country and regional level has indicated that a country’s development depends greatly on a dynamic entrepreneurship sector. It also shows that the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity and with the quantity and quality of entrepreneurial supply.</div> <div> </div> <div> Entrepreneurship is difficult to analyze using the traditional tools of economics e.g. calculus and general equilibrium models. These equilibrium models are central to mainstream economics but they exclude entrepreneurship. Both Schumpeter and Kirzner, who brought entrepreneurship on center stage, argue that entrepreneurs do not tolerate equilibrium. Schumpeter introduced the notion of creative destruction as a competitive process in which entrepreneurs are continuously looking for new ideas that will render their rivals’ ideas obsolete. The fundamental element that induces that creative destruction is innovation. We have evolved from the traditional, neo-classical theory which holds that the economic growth of a country is driven by enhancement to capital and labour input and have come to realize that the level of technological innovation contributes significantly to economic performance, particularly at the firm and industry level. So innovation can be easily linked to output and productivity growth. </div> <div> </div> <div> Entrepreneurship is the missing link between investments in new knowledge and economic growth, but it is also conducive to innovative activity and unrestrained competition. It is the efforts of an individual, the entrepreneur, who goes against the odds in translating a vision into a successful business enterprise. It is a process of searching and exploiting an opportunity, a previously unexploited opportunity. So, entrepreneurship can be defined as “undertaking the organization and management of an enterprise involving innovativeness, independence and risk, as well as the opportunity for profit” (Timmons and Spinelli 2006, 10)</div> <div> </div> <div> As mentioned earlier, entrepreneurship is difficult to analyze, using traditional econometric models. However, there is now a multi-country survey effort, known as the Global Entrepreneurship Monitor (GEM) project, which is making headway in understanding how different types of entrepreneurship affect development. The GEM research programme is an annual assessment of the national level of entrepreneurial activity. Initiated in 1999 with 10 countries, expanded to 21 in the year 2000 and 69 countries in 2012, the program covers both developed and developing countries. It measures the Total Entrepreneurial Activity (TEA), defined as percentage of adult population (18 – 64 years old) that is either actively involved in starting a new venture or is the owner/manager of a business that is less than 42 months old. Its objectives are:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To allow for comparisons with regard to the level of entrepreneurial activity among different economies.</div> <div> •To determine the extent to which entrepreneurial activity influences economic growth within individual economies</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To identify the factors which encourage and/or hinder entrepreneurial activity</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To guide the formulation of effective and targeted policies aimed at stimulating entrepreneurship</div> <div> </div> <div> </div> <div> It is widely recognized that, in examining the relation between entrepreneurship and economic growth, a distinction should be made between ‘necessity entrepreneurship,’ which is having to become an entrepreneur because you have no better option, and “opportunity entrepreneurship,” which is an active choice to start a new enterprise, based on the perception that an unexploited or underexploited business opportunity exists. While it is easy to see that starting a new business to exploit a perceived business opportunity would lead to economic development, it is also possible that necessity entrepreneurship may not lead to economic development. Being pushed into entrepreneurship (self-employment) because all other options for work are either absent or unsatisfactory can even lead to underdevelopment.</div> <div> </div> <div> Innovation is not the only important prerequisite for entrepreneurship development, there are other conditions, major features of a country’s socio-economic milieu, that are expected to have a significant impact on the entrepreneurial sector. Much research has been done on creating an environment where entrepreneurship can flourish and grow. Besides the personal traits, like alertness, creativity, ambition, perseverance, that, according to experts, lie at the origin of successful entrepreneurship, there are conditions, favourable to enhance entrepreneurial activity, which are largely dependent on government interventions.</div> <div> </div> <div> <img alt="Business Plan" src="/userfiles/images/mg1%20(Copy).jpg" style="width: 550px; height: 385px; margin-left: 10px; margin-right: 10px;" /></div> <div> </div> <div> These Entrepreneurial Framework Conditions (EFCs), favourable to enhance the rate of entrepreneurial activity, can be:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Cultural : open mindedness, acceptance of risk, long term orientation, “business culture”: a more business friendly environment</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Institutional: stability in government, regulatory incentives (taxation, property rights...)</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Financial: access to finance, credit, available financial resources, including grants and subsidies</div> <div> </div> <div> The GEM - 2009 Report names education and training in entrepreneurial skills as one of the entrepreneurial framework conditions that can create a favourable environment in which entrepreneurship can flourish.</div> <div> </div> <div> “The extent to which training in creating or managing small, new, or growing business is incorporated within the educational and training system at all levels. Subsequent empirical studies have shown that there are two distinct sub-dimensions to this EFC: primary and secondary school level entrepreneurship education and training, and post-school entrepreneurship education and training”</div> <div> </div> <div> Values of entrepreneurship and innovation can be instilled in the students by introducing entrepreneurship in the curriculum from primary school level. </div> <div> </div> <div> The government’s priority should be on how to become a nation of entrepreneurs, the job-creators, rather than a nation of job-seekers or providing employment to everyone.</div> <div> </div> <div> The European Union, confronted with rapidly increasing unemployment, has recently introduced an action plan, called the Entrepreneurship 2020 Action Plan to unleash Europe’s entrepreneurial potential, aimed at fostering entrepreneurship as the main driver for economic growth. Currently 11 % of European citizens are entrepreneurs, 45% would like to be their own boss if they could.</div> <div> </div> <div> Entrepreneurial education and training is one of the major action areas. Surveys suggest that between 15% and 20% of students who participate in a mini-company programme in secondary school will later start their own company. This figure is about three to five times compared to similar figure for the general population. Other initiatives will be taken at the higher education level and the key competence, “entrepreneurship”, will be imbedded into curricula across primary, secondary, vocational, higher and adult education before the end of 2015.</div> <div> </div> <div> The European Commission will finance programmes aimed at developing a market for microfinance in Europe, and make resources for micro-financing available to member states and regions. Member states will be invited to consider the need for simplification of tax legislation, making it more favourable for early stage businesses, and make use of structural funds resources to set up microfinance support schemes.</div> <div> </div> <div> In order to create a more “business friendly” environment, the Commission will step up entrepreneurship promotion activities and appoint known entrepreneurs as National Entrepreneurship Ambassadors to become “the face of entrepreneurship” in their countries. The member states will also be invited to improve the efficiency of national insolvency laws, including the length and costs of the period of discharge from bankruptcy.</div> <div> </div> <div> By reducing administrative complexities and simplifying employment legislation, flexibility of time and place of work will be greatly enhanced. Member states are invited to reduce time for licensing necessary to start a business activity to one month by 2015.</div> <div> </div> <div> Europe will also open paths into entrepreneurship for demographic groups that are underrepresented within the entrepreneurial population: women, seniors, migrants and the unemployed.</div> <div> </div> <div> Looking at the situation in Nepal and examining the entrepreneurial framework, a favourable socio-economic environment seems to be lacking. In the “Doing Business Report” 2014, published by the World Bank, 29 October 2013, assessing regulations in 189 countries on the ease of doing business, Nepal ranks 105, which is below average. The report deals with areas like starting a business, getting credit, registering property, enforcing contracts, resolving insolvency, paying taxes, trading across borders and protecting investors. Clearly, regulatory hurdles, corruption, political intervention etc. influence this score and the absence of significant regulatory reforms accounts for the limited progress in ranking over the years.</div> <div> </div> <div> <img alt="Management Gyan" src="/userfiles/images/mg2%20(Copy).jpg" style="margin-left: 10px; margin-right: 10px; width: 550px; height: 336px;" /></div> <div> </div> <div> Several Nepali authors argue that the first step to building an entrepreneurial ecosystem would be finding ways to tackle the stigma held by this society towards entrepreneurship and profit-making. In order to create a supportive environment to entrepreneurial activity, the government should look into emphasizing entrepreneurial sensitization in order to instill a mindset of entrepreneurship.</div> <div> </div> <div> Entrepreneurial education and training should be imbedded into the curricula across primary, secondary, vocational, higher and adult education. A particular focus should be on women’s entrepreneurship, regarded by many as a crucial way to fight poverty and gender inequity in society.</div> <div> </div> <div> The curriculum must be revised and teachers trained in teaching entrepreneurial skills with due attention to the gender issues involved. Simply introducing children to businesses owned by women could go a long way to changing the perception of women and work and could encourage leadership by women from an early age.</div> <div> </div> <div> By implementing the right policies the government of Nepal can help provide the conditions needed to tap the immense potential in business opportunities and encourage bright men and women to explore and exploit these opportunities, generating employment opportunities, raising income and breaking the vicious circle of poverty.</div> <div> </div> <div> <em>(Wim Lancsweert is VSO Education Livelihoods Linkage Coordinator in Kathmandu, Nepal.)</em></div>', 'published' => true, 'created' => '2014-01-28', 'modified' => '2014-02-08', 'keywords' => 'new business age management gyan news & articles, management gyan news & articles from new business age nepal, management gyan headlines from nepal, current and latest management gyan news from nepal, economic news from nepal, nepali management gyan economic news and events, ongoing management gy', 'description' => 'The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. Empirical analysis, investigating the relationship between entrepreneurship and economic growth at the country and regional level has indicated that a country’s development depends greatly on a dynamic entrepreneurship sector. It also shows that the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity and with the quantity and quality of entrepreneurial supply.', 'sortorder' => '2388', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ) ) $current_user = null $logged_in = false $xml = falseinclude - APP/View/Elements/side_bar.ctp, line 133 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
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Half of the remaining 40 per cent consists of top performers, and the other half includes poor performers. The poor performers can cause the most harm if employers don’t address their productivity problems. Employees who get away with underperforming create laziness in the workplace that hampers the productivity of others. So, in order not to retain non-performing employees three major steps should be taken.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Identify performers from the non-performers</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Explore reasons of non-performance</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Corrective actions and administering formal discipline</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Identify performers from the non-performers</strong></span></div> <div> Generally saying performers make positive contributions in the achievement of both team and organizational goals and non-performers hardly make such contributions. So, identification of performers is the major strategic step towards non-retaining non-performing employees. Performers normally exhibit following behaviours: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are efficient in terms of communication, workloads handling, change management, managing personal and professional developments.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They prefer to work closely with co-workers and exhibit inspirational leadership. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are good at planning their own futures and also use the work they do with the employers to help them grow their ambitions. They are often mentors and trainers in the workplace because they thrive on helping others improve their productivity. They can determine what they must accomplish, set goals and organize themselves to achieve these goals efficiently. They also actively try to improve their performance, which means they actively find resources they need. It also means they tend to learn from their own mistakes. Usually they are better at self-direction.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They recognize that they are their own bosses and the employer is a consumer. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They are fearless when it comes to doing what it takes to succeed. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Performers also generate many of a company’s new ideas because they tend to look for ways to improve procedures to maximize their own productivity. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They adhere to policies, procedures, and regulations </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>They also participate in meetings and other activities for the meaningful outputs.</div> <div> </div> <div> Failing to comply with the above behaviours will qualify a person to be a non-performer.</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Explore reasons of non-performance</strong></span></div> <div> Secondly we should explore reasons of non-performance. Reasons of non-performance can be discussed under four dimensions:</div> <div> </div> <div> <span style="font-size: 14px;"><strong>a. Employee</strong></span></div> <div> The employee may:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Lack requisite technical skills, public relation skills, and work ethics.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>May be an acceptable performer but is unhappy and wants a different position.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have an undisclosed learning disability or medical condition affecting performance</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have problems with authority: rejects idea that someone will judge their work</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Have mental health challenges: depression, personality disorder, post-traumatic stress disorders, etc.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>b. Poor employee grooming by supervisor</strong></span></div> <div> Sometimes supervisors also contribute in grooming poor employees. An employee has the capacity to perform at a higher level but is not been given initial tools and direction to create an opportunity for success. The employees have different assumptions, about what is considered good performance by the supervisor. This situation is often created when supervisor fails to meet regularly with the employees. The supervisor is called as a poor communicator when an employee does not understand relative priorities of various tasks, does not know company policies or procedures and also does not understand what supervisor likes, wants or dislikes.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>c. Job</strong></span></div> <div> Sometimes the person is capable and knows what to do but the volume is just too high for one person to handle. Another issue is whether the employee has enough information and tools to complete their work in an optimum fashion or not. When unrelated or obviously different tasks are thrown together, it may be difficult to find the unique individual who is good at all of them. An example would be a position that requires high-level people relational skills and high-level scientific skills. Sometimes poor job design also contributes towards non-performance. Some of the potential job design issues are:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Job volume is based on extremely high performer and person is new</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Job contains too many unrelated accountabilities</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Quality standards are impossible to meet</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The job qualifications used in recruitment don’t actually match what is required for the position.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>d. Workplace atmosphere</strong></span></div> <div> Most of us have experienced a toxic workplace environment in which good employees are so distracted by stress and drama that they cannot properly attend to job performance. Here are potential environmental issues that might be a source of non-performance.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The workplace atmosphere is excessively negative with toxic co-workers, bosses and power struggles. </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>A powerful informal leader controlling activities.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Good people aren’t consistently praised/rewarded and so become disinterested.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Negative conduct is not redirected so that co-workers are stressed by co-worker’s abusive behaviour.</div> <div> </div> <div> <span style="font-size: 16px;"><strong>Corrective actions and administering formal discipline</strong></span></div> <div> Dealing with a non-performing staff member is one of the most difficult tasks one faces as a manager. Before taking actions all the options should be considered carefully. Formal discipline is one option, but this can be awkward and disruptive to the team, and may have legal implications. Formal discipline should be used only as a last resort tool when all else has failed. As per Labour Law of Nepal employees cannot be terminated on performance ground but can be terminated on the ground of misconduct. But due to employee union’s influence it is being hard to terminate employees even on misconduct ground. So, formal disciplinary action, such as formal warnings, suspension or termination should be exercised only when all other options are exhausted. If an organization does everything in its power to help a non-performing employee and still remains unsuccessful, it may have to resort to formal discipline. Four less-severe strategies are explained below. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>a. Counsel to correct poor behaviour or performance.</strong></span></div> <div> Counselling is a pre-planned informal discussion with a team member. The goal is to raise awareness that a problem exists and correct behaviour. During a counselling meeting, problem should be clearly stated; employee should be asked for his/her thoughts about the situation. There should be clarity on both sides on “what needs to be done differently now onwards along with clarity on action plan”. The counselling should end up with encouragement and should set up follow up meeting to discuss results.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>b. Confront inappropriate behaviour.</strong></span></div> <div> Confrontation is an unplanned response to an urgent need to intervene when an employee exhibits poor performance or behaviour. An example may be when a manager witnesses an action that compromises company safety regulations, policies, or procedures. </div> <div> Confrontation should: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>include observation, inquiry, and listening</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>acknowledge the effort and explain the concern</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>teach corrective action</div> <div> </div> <div> <span style="font-size: 14px;"><strong>c. Document both good and bad performance.</strong></span></div> <div> If the problem intensifies, employee’s performance and behaviour should be documented which will be useful while defending organization legally in future. Documentation should be fair, consistent, and objective. In addition, documentation should note corrective actions and results- good or bad. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>d. Measure performance.</strong></span></div> <div> Measurement of performance gives foundation for raises, promotions, and corrective actions. Without measurable performance objectives, organization gets open to all kinds of arguments. In the case of disciplinary action, the arguments may have legal implications. Organization must be able to demonstrate objectively the events leading up to disciplinary action. The evidence must speak for itself. </div> <div> </div> <div> <span style="font-size: 14px;"><strong>e. Withdrawing responsibilities</strong></span>.</div> <div> This step should be taken as a tool to demotivate and harass non-performing staffs for encouraging him/her to take voluntary retirement.</div> <div> </div> <div> <span style="font-size: 14px;"><strong>f. Administer formal discipline as a last resort.</strong></span></div> <div> If all else fails to bring compliance, organization must be prepared to enter into the disciplinary process. Discipline is a formal process with serious implications and can put organization in a position to defend itself legally. Generally there are three outcomes of the formal disciplinary process, and in two of the three possible outcomes, organization will lose the employee: </div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will live up to the expectations and successfully correct his or her behaviour or performance.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will not live up to the expectations and will eventually be terminated.</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>The employee will resign outright.</div> <div> </div> <div> When taking formal disciplinary action company’s policy should be followed. Progressive disciplinary action may consist of first level warning, second level warning, stopping pay increment, suspension without pay and termination. At the same time upper management, human resources, legal counsel and any other parties with an interest in action should be consulted before taking such actions. Discipline must be applied consistently in all situations. It should be kept in mind that the organization acts in accordance with the country’s laws, any existing contracts and any collective bargaining agreement.</div> <div> </div> <div> The bottom line of termination is; it should be done with proper homework in order to provide safety to the organization and staffs.</div> <div style="text-align: right;"> <em>(Based on a discussion organised by Real Solutions, a Human Resource consulting firm recently)</em></div> <div> </div>', 'published' => true, 'created' => '2014-02-20', 'modified' => '2014-12-22', 'keywords' => 'new business age management gyan news & articles, management gyan news & articles from new business age nepal, management gyan headlines from nepal, current and latest management gyan news from nepal, economic news from nepal, nepali management gyan economic news and events, ongoing management gy', 'description' => 'Performers generate many of the company’s new ideas because they tend to look for ways to improve procedures to maximize their own productivity.', 'sortorder' => '2487', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ), (int) 1 => array( 'Article' => array( 'id' => '2542', 'article_category_id' => '170', 'title' => 'Evolving A Favorable Entrepreneurial Framework In Nepal', 'sub_title' => '', 'summary' => null, 'content' => '<div> </div> <div> </div> <div> <strong>--By Wim Lancsweert</strong></div> <div> </div> <div> The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. Empirical analysis, investigating the relationship between entrepreneurship and economic growth at the country and regional level has indicated that a country’s development depends greatly on a dynamic entrepreneurship sector. It also shows that the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity and with the quantity and quality of entrepreneurial supply.</div> <div> </div> <div> Entrepreneurship is difficult to analyze using the traditional tools of economics e.g. calculus and general equilibrium models. These equilibrium models are central to mainstream economics but they exclude entrepreneurship. Both Schumpeter and Kirzner, who brought entrepreneurship on center stage, argue that entrepreneurs do not tolerate equilibrium. Schumpeter introduced the notion of creative destruction as a competitive process in which entrepreneurs are continuously looking for new ideas that will render their rivals’ ideas obsolete. The fundamental element that induces that creative destruction is innovation. We have evolved from the traditional, neo-classical theory which holds that the economic growth of a country is driven by enhancement to capital and labour input and have come to realize that the level of technological innovation contributes significantly to economic performance, particularly at the firm and industry level. So innovation can be easily linked to output and productivity growth. </div> <div> </div> <div> Entrepreneurship is the missing link between investments in new knowledge and economic growth, but it is also conducive to innovative activity and unrestrained competition. It is the efforts of an individual, the entrepreneur, who goes against the odds in translating a vision into a successful business enterprise. It is a process of searching and exploiting an opportunity, a previously unexploited opportunity. So, entrepreneurship can be defined as “undertaking the organization and management of an enterprise involving innovativeness, independence and risk, as well as the opportunity for profit” (Timmons and Spinelli 2006, 10)</div> <div> </div> <div> As mentioned earlier, entrepreneurship is difficult to analyze, using traditional econometric models. However, there is now a multi-country survey effort, known as the Global Entrepreneurship Monitor (GEM) project, which is making headway in understanding how different types of entrepreneurship affect development. The GEM research programme is an annual assessment of the national level of entrepreneurial activity. Initiated in 1999 with 10 countries, expanded to 21 in the year 2000 and 69 countries in 2012, the program covers both developed and developing countries. It measures the Total Entrepreneurial Activity (TEA), defined as percentage of adult population (18 – 64 years old) that is either actively involved in starting a new venture or is the owner/manager of a business that is less than 42 months old. Its objectives are:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To allow for comparisons with regard to the level of entrepreneurial activity among different economies.</div> <div> •To determine the extent to which entrepreneurial activity influences economic growth within individual economies</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To identify the factors which encourage and/or hinder entrepreneurial activity</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>To guide the formulation of effective and targeted policies aimed at stimulating entrepreneurship</div> <div> </div> <div> </div> <div> It is widely recognized that, in examining the relation between entrepreneurship and economic growth, a distinction should be made between ‘necessity entrepreneurship,’ which is having to become an entrepreneur because you have no better option, and “opportunity entrepreneurship,” which is an active choice to start a new enterprise, based on the perception that an unexploited or underexploited business opportunity exists. While it is easy to see that starting a new business to exploit a perceived business opportunity would lead to economic development, it is also possible that necessity entrepreneurship may not lead to economic development. Being pushed into entrepreneurship (self-employment) because all other options for work are either absent or unsatisfactory can even lead to underdevelopment.</div> <div> </div> <div> Innovation is not the only important prerequisite for entrepreneurship development, there are other conditions, major features of a country’s socio-economic milieu, that are expected to have a significant impact on the entrepreneurial sector. Much research has been done on creating an environment where entrepreneurship can flourish and grow. Besides the personal traits, like alertness, creativity, ambition, perseverance, that, according to experts, lie at the origin of successful entrepreneurship, there are conditions, favourable to enhance entrepreneurial activity, which are largely dependent on government interventions.</div> <div> </div> <div> <img alt="Business Plan" src="/userfiles/images/mg1%20(Copy).jpg" style="width: 550px; height: 385px; margin-left: 10px; margin-right: 10px;" /></div> <div> </div> <div> These Entrepreneurial Framework Conditions (EFCs), favourable to enhance the rate of entrepreneurial activity, can be:</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Cultural : open mindedness, acceptance of risk, long term orientation, “business culture”: a more business friendly environment</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Institutional: stability in government, regulatory incentives (taxation, property rights...)</div> <div> •<span class="Apple-tab-span" style="white-space: pre;"> </span>Financial: access to finance, credit, available financial resources, including grants and subsidies</div> <div> </div> <div> The GEM - 2009 Report names education and training in entrepreneurial skills as one of the entrepreneurial framework conditions that can create a favourable environment in which entrepreneurship can flourish.</div> <div> </div> <div> “The extent to which training in creating or managing small, new, or growing business is incorporated within the educational and training system at all levels. Subsequent empirical studies have shown that there are two distinct sub-dimensions to this EFC: primary and secondary school level entrepreneurship education and training, and post-school entrepreneurship education and training”</div> <div> </div> <div> Values of entrepreneurship and innovation can be instilled in the students by introducing entrepreneurship in the curriculum from primary school level. </div> <div> </div> <div> The government’s priority should be on how to become a nation of entrepreneurs, the job-creators, rather than a nation of job-seekers or providing employment to everyone.</div> <div> </div> <div> The European Union, confronted with rapidly increasing unemployment, has recently introduced an action plan, called the Entrepreneurship 2020 Action Plan to unleash Europe’s entrepreneurial potential, aimed at fostering entrepreneurship as the main driver for economic growth. Currently 11 % of European citizens are entrepreneurs, 45% would like to be their own boss if they could.</div> <div> </div> <div> Entrepreneurial education and training is one of the major action areas. Surveys suggest that between 15% and 20% of students who participate in a mini-company programme in secondary school will later start their own company. This figure is about three to five times compared to similar figure for the general population. Other initiatives will be taken at the higher education level and the key competence, “entrepreneurship”, will be imbedded into curricula across primary, secondary, vocational, higher and adult education before the end of 2015.</div> <div> </div> <div> The European Commission will finance programmes aimed at developing a market for microfinance in Europe, and make resources for micro-financing available to member states and regions. Member states will be invited to consider the need for simplification of tax legislation, making it more favourable for early stage businesses, and make use of structural funds resources to set up microfinance support schemes.</div> <div> </div> <div> In order to create a more “business friendly” environment, the Commission will step up entrepreneurship promotion activities and appoint known entrepreneurs as National Entrepreneurship Ambassadors to become “the face of entrepreneurship” in their countries. The member states will also be invited to improve the efficiency of national insolvency laws, including the length and costs of the period of discharge from bankruptcy.</div> <div> </div> <div> By reducing administrative complexities and simplifying employment legislation, flexibility of time and place of work will be greatly enhanced. Member states are invited to reduce time for licensing necessary to start a business activity to one month by 2015.</div> <div> </div> <div> Europe will also open paths into entrepreneurship for demographic groups that are underrepresented within the entrepreneurial population: women, seniors, migrants and the unemployed.</div> <div> </div> <div> Looking at the situation in Nepal and examining the entrepreneurial framework, a favourable socio-economic environment seems to be lacking. In the “Doing Business Report” 2014, published by the World Bank, 29 October 2013, assessing regulations in 189 countries on the ease of doing business, Nepal ranks 105, which is below average. The report deals with areas like starting a business, getting credit, registering property, enforcing contracts, resolving insolvency, paying taxes, trading across borders and protecting investors. Clearly, regulatory hurdles, corruption, political intervention etc. influence this score and the absence of significant regulatory reforms accounts for the limited progress in ranking over the years.</div> <div> </div> <div> <img alt="Management Gyan" src="/userfiles/images/mg2%20(Copy).jpg" style="margin-left: 10px; margin-right: 10px; width: 550px; height: 336px;" /></div> <div> </div> <div> Several Nepali authors argue that the first step to building an entrepreneurial ecosystem would be finding ways to tackle the stigma held by this society towards entrepreneurship and profit-making. In order to create a supportive environment to entrepreneurial activity, the government should look into emphasizing entrepreneurial sensitization in order to instill a mindset of entrepreneurship.</div> <div> </div> <div> Entrepreneurial education and training should be imbedded into the curricula across primary, secondary, vocational, higher and adult education. A particular focus should be on women’s entrepreneurship, regarded by many as a crucial way to fight poverty and gender inequity in society.</div> <div> </div> <div> The curriculum must be revised and teachers trained in teaching entrepreneurial skills with due attention to the gender issues involved. Simply introducing children to businesses owned by women could go a long way to changing the perception of women and work and could encourage leadership by women from an early age.</div> <div> </div> <div> By implementing the right policies the government of Nepal can help provide the conditions needed to tap the immense potential in business opportunities and encourage bright men and women to explore and exploit these opportunities, generating employment opportunities, raising income and breaking the vicious circle of poverty.</div> <div> </div> <div> <em>(Wim Lancsweert is VSO Education Livelihoods Linkage Coordinator in Kathmandu, Nepal.)</em></div>', 'published' => true, 'created' => '2014-01-28', 'modified' => '2014-02-08', 'keywords' => 'new business age management gyan news & articles, management gyan news & articles from new business age nepal, management gyan headlines from nepal, current and latest management gyan news from nepal, economic news from nepal, nepali management gyan economic news and events, ongoing management gy', 'description' => 'The importance of entrepreneurship for achieving economic growth in contemporary economies is widely recognized, both by policy makers and economists. Empirical analysis, investigating the relationship between entrepreneurship and economic growth at the country and regional level has indicated that a country’s development depends greatly on a dynamic entrepreneurship sector. It also shows that the impact of entrepreneurship on economic growth varies with the development level of an economy, with the sector of economic activity and with the quantity and quality of entrepreneurial supply.', 'sortorder' => '2388', 'image' => null, 'article_date' => '0000-00-00 00:00:00', 'homepage' => false, 'breaking_news' => false, 'main_news' => false, 'in_scroller' => false, 'user_id' => '0' ) ) ) $current_user = null $logged_in = false $xml = falsesimplexml_load_file - [internal], line ?? include - APP/View/Elements/side_bar.ctp, line 133 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::_renderElement() - CORE/Cake/View/View.php, line 1224 View::element() - CORE/Cake/View/View.php, line 418 include - APP/View/Articles/index.ctp, line 157 View::_evaluate() - CORE/Cake/View/View.php, line 971 View::_render() - CORE/Cake/View/View.php, line 933 View::render() - CORE/Cake/View/View.php, line 473 Controller::render() - CORE/Cake/Controller/Controller.php, line 968 Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200 Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167 [main] - APP/webroot/index.php, line 117
| Currency | Unit |
Buy | Sell |
| U.S. Dollar | 1 | 121.23 | 121.83 |
| European Euro | 1 | 131.65 | 132.31 |
| UK Pound Sterling | 1 | 142.47 | 143.18 |
| Swiss Franc | 1 | 124.29 | 124.90 |
| Australian Dollar | 1 | 71.69 | 72.05 |
| Canadian Dollar | 1 | 83.90 | 84.32 |
| Japanese Yen | 10 | 10.94 | 11.00 |
| Chinese Yuan | 1 | 17.17 | 17.26 |
| Saudi Arabian Riyal | 1 | 32.27 | 32.43 |
| UAE Dirham | 1 | 33.01 | 33.17 |
| Malaysian Ringgit | 1 | 27.36 | 27.50 |
| South Korean Won | 100 | 9.77 | 9.82 |
Update: 2020-03-25 | Source: Nepal Rastra Bank (NRB)
| Fine Gold | 1 tola | 77000.00 |
| Tejabi Gold | 1 tola | 76700.00 |
| Silver | 1 tola | 720.00 |
Update : 2020-03-25
Source: Federation of Nepal Gold and Silver Dealers' Association
| Petrol | 1 Liter | 106.00 |
| Diesel | 1 Liter | 95.00 |
| Kerosene | 1 Liter | 95.00 |
| LP Gas | 1 Cylinder | 1375.00 |
Update : 2020-03-25
