Organizational resources acquitions

FINANCIAL VIABILITY: Your Yardstick for Organization Achievement, Part 3 (last)  July 16, 2012 – 01:18 pm

Dr. John Psarouthakisis a Distinguished Visiting Fellow-Professor, Institute of Advanced Studies in the Humanities, University of Edinburgh, Scotland. Founder and former CEO, JPIndusries, Inc., a Fortune 500 industrial corporation. He is the Executive Editor of

FINANCIAL VIABILITY AND THE DYNAMIC SYSTEM MODEL OF MANAGEMENT
(see also, in this journal,  articles: Dynamic Management of Growing Firms-Parts 1 through 4)

Profit is a yardstick of how well the entire system functions.  When the system runs efficiently, money, time, and other resources are left over; the firm makes a profit.  Some firms watch the short-term costs so closely that long term opportunities are overlooked.  On the other hand, several consecutive quarters of the operating loss caused by recent heavy investment will test survivability.  Profit is what the firm has available to it to combat entropy and the general uncertainty of the environment.

Further, profitability is one powerfully important way to judge the efficiency of different solutions chosen to resolve the seven organization issues of the DSP model.  If coordination can be handled through direct observation by the owner, why waste money on elaborate controls and time consuming meetings with managers? If design of the machine can be done in someone’s basement, why build a laboratory?   The CEO’s challenge is to find the solution suitable to the needs of the firm at a given size and complexity.

Source: The Business Thinker

Practitioner Press International Strategic Organizational Change, Second Edition
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In Defense...continued

But a participatory economy enjoys advantages in managing this trade off compared to capitalism. Most importantly, direct recognition of 'social serviceability' is a more powerful incentive to innovation in a participatory economy, which reduces the magnitude of the trade off since more innovation will occur in a participatory economy than in capitalism for the same speed of adjustments. Secondl... Economy. Forthcoming.
Levy, David. 1991. Book Review: Seeking a Third Way. Dollars and Sense 171 November 1991: 18-20.
Pramas, Jason. 1991. A Roundtable on Participatory Economics. Z Magazine July/August 1991: 73-74.
Weisskopf, Thomas. 1992. Toward a Socialism for the Future in the Wake of the Demise of the Socialism of the Past. Review of Radical Political Economics 24 (3&4).

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