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Service Organization

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Human capital and Service Organization

Where do large scale computerisation, application of information and telecommunication technology in the work-processing of service institutions carry the human worker? Is he relegated to the background? Can Computers and Internet provide banking services independently, replacing totally human worker?

Computers or Internet or even a robot or thinking gadget with artificial intelligence cannot replace human capital in business or industry, either service, manufacturing or any other category. Computers are fast, accurate, work tirelessly. They process and provide large voluminous output within seconds, but they replace only programmable repetitive human tasks. Computers cannot conduct a Board Meeting or A.G.M. of a Company. Human innovative genius and talents are not substituted by computers. In fact computers spare human worker exclusively to attend to his specialised field. Innovation and creativity are the sole attributes of human genius, while machines perform as per programmed logic.

But human skill and innovation can thrive only when properly developed and utilised. What factors will provide for excellence in human services?

The answer is provided by the Website of Social Entrepreneurs Inc. 6121 Lakeside Dr. #160, Reno, NV 89511 (U.S.A)[http://www.socialent.com. ].This is the Website of a consultancy organization specialised in different fields of organisational management.

The Website states that:

"Human service organizations are often faced with limited resources. Desiring to do the most possible good for the community, the temptation exists to focus virtually all time and energy on client services, paying little attention to administrative and managerial effectiveness. This can create substantial risk for the organization in the long run. Countless examples exist of agencies operating important programs that experienced major shakeups or were forced to close down altogether because of inadequate financial management, insufficient management support to program staff, or being in a situation where the Board and Executive Director simply do not have the information they need to properly guide the organization. The solution is to invest in organizational development activities that ensure an effective management and administrative infrastructure is in place to guide the organization and fully support the efforts of staff and volunteers alike so they can provide the best possible service to the community."

Speaking about need for effective organisation structure and design the website propounds:

"Many people are promoted into management positions without ever receiving the proper training to show them how to be effective managers. This forces the person to learn management skills through trial-and-error, which is highly frustrating to both the manager and their staff. The results are often high staff turnover, low morale, and low productivity."

In an article titled "FIVE BUSINESS TRENDS EVERY HUMAN SERVICE ORGANIZATION SHOULD UNDERSTAND" described as "A PRIMER FOR SURVIVAL AND LEADERSHIP" placed in its WebPages http://socialent.aztech-cs.com/resources/articles/five_business/ it defines the five "business trends" as under:

"Of all of the forces driving the evolution of business in the 1990's, five particular trends stand out for their likelihood to markedly change the administration and delivery of human services within the next five years. These trends are:

  1. Quality and outcomes management

  2. Business and process reengineering

  3. Knowledge management

  4. Capabilities-based competition

  5. "Collaborate, consolidate or die"

"The goal of this article is certainly to educate, but more importantly to encourage an open-minded view by human service providers toward adopting proven business techniques in ways that will enhance, not compromise, their mission. It will be the leaders in human services, not the followers, that will attract the resources and other forms of support necessary to thrive in the long run!"

By way of introductory remarks on the subject these WebPages describe as under:

Today's Business Revolution

"Across almost all industries and around the globe, the business world is undergoing radical changes that have gained considerable momentum in the past five years. Among the forces that have been driving the reinvention of many businesses are:

  • The shift from an industrial economy to a service economy where knowledge is king.

  • New operating and competitive strategies, where higher quality at a lower cost is not a lofty ideal but is a condition that is required for many businesses to even attempt to survive.

  • Transformations through technology, such as automation of previously manual tasks and computer networking that allows collaborative work to be performed across many different locations.

  • The emergence of a truly global economy.

  • Major shifts in consumer demographics, expectations, and buying patterns.

"Businesses that have not been willing to change have been crushed, even large firms that have been around for many decades. The largest corporation in the world at the time, IBM, posted record losses that were unthinkable only a few years before. Montgomery Ward and Woolworth's, which had been leaders in the retail world since the turn of the century, are now in bankruptcy or undergoing tremendous downsizing.

"What do these business challenges have to do with human services? The writing is on the wall: business trends will also revolutionize the human services world. The first salvo has been fired with the reinvention of health care delivery. Health care, as a social service with one foot squarely planted in the for-profit arena and the other foot struggling to sustain its nonprofit status, gives us valuable insight into the future of many other social services. In the 1990's alone, the health care industry has experienced every one of the five trends highlighted in this article. Health care providers have been forced to measure the quality of care and prove outstanding patient outcomes, they have reengineered many administrative processes along with how many patient services are delivered, all while going through a dizzying series of partnerships and mergers. Those providers that could not adapt are being eliminated, at a rate of over 100 hospitals and 1000 physician practices a year.

"It is not unthinkable that the same forces that have reshaped health care could reach education, child care, senior services, and many other types of social services. While this prospect may seem sobering, it is also important to recognize - and seize - the opportunity to embrace the business trends and benefit from them. It is with this opportunity in mind that we offer an overview of five particularly significant trends."

The informative article is reproduced with their permission in this Website in five pages, each describing one particular trend.

Summarising these five trends the article further states as under:

"A common thread across all of the trends is that they require a willingness to change. Change is unnerving to many, but absolutely essential to long-term success in the next millennium. Even very large, profitable organizations in the business world have learned this lesson the hard way. Smaller organizations with limited resources will disappear much faster.

"The other common theme is that human service programs can no longer survive through a pure charitable mission without adopting leading edge business methods. The positive part is that the business techniques described here can provide significant value if applied properly and diligently, driven by the leadership of the organization. They are not nuisances to be tolerated, they are opportunities to be embraced. The result can be more clients served and served better, fulfilling charitable missions in a way that attracts more community support and improves the motivation and satisfaction of everyone involved in the organization."

To view more about human capital please move to webpage on the subject in the project on knowledge management titled Human Capital & its Attributes.


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