Jackie Rice Bashed for Social Experiment of Wish Ko Lang: Go Beyond the Surface

The released video (whether a market strategy or whatnot) of Jackie Rice castigating and demeaning an old lady has gone viral, getting mix reactions from netizens. According to the disclaimer (of the original uploader), the video was part of Wish Ko Lang's social experiment to look for a good samaritan.

In a released statement, Wish Ko Lang states:

Pero bago mag-react, ang tagpong ito ay isa lamang social experiment na nilatag ng Wish Ko Lang! Ano kaya ang gagawin ng mga makakasaksi nito, kuhanan sa cellphone ang galit na artista at i-upload sa social media? O pumagitna at ayusin ang problema?

With the reactions of several netizens, I want to discuss few things.

A. Social Experiment

A social experiment seeks to know the thoughts, emotions and behavior of human subjects regarding a specific stimulus (scenario, action, or condition).

Some netizens cried why this kind of experiment that would just generate negative comments and reactions. The social experiment is always a two-edged one. Positive and negative. For a simple reason: human subjects.

If social experiments will only generate positive comments or reactions, then it defeats the purpose. It must be able to show the behavior of people in “regular” interactions or day-to-day situations. To cry that Wish Ko Lang goes beyond the norm is wrong, out of context, and even superficial. The social experiment was a success because it fires up something – negative and positive.

B. Double Standard – Degrading and Demeaning People is Always WRONG

There are those who say that to castigate an old lady like that is wrong, or even immoral. While I definitely agree that such action is wrong, immoral, and not worthy of being human, I don't definitely agree on the message these reactions carry: It is okay to castigate anybody provided that they are not old ladies.

Let us be clear with this. Regardless of age, gender, race, status in life, education, and other dividing categories, TO DEMEAN, DEGRADE, or in any way SHAME a person is WRONG.

This means that while netizens are aghast and are crying foul over what Jackie Rice did in the social experiment, to bash Jackie Rice (which is foremost uncalled for) is DOUBLE STANDARD. Is it okay to bash and demean Jackie Rice because she is not an old lady? NO.

Simply, let us be clear with our reactions or actions. We may defend an angle but we fail to have real CONVICTIONS and PRINCIPLES.

C. Ask, Inquire, Know, Conclude

(Assume. All are acquainted with the scientific method.) The scientific method shows that conclusion is the last part of the process. Why? Conclusions are made only when proper observation, complete knowledge, and all angles are already taken into account. There is no short cuts. (Though we love copying chemistry experiments; why not? They are really hard to fathom.)

This is also true with life. When we see something, we cannot just judge. We need to ask. Why was she slapped? Why was he gunned?And more whys. If you see two people fighting and the other guy shoot the one on the ground, what do you know? You only know that a person has been shot and all details pertaining to it. Nothing else. You cannot say that the one who shoot the guy on the ground is a criminal. That would be hasty. What if the guy on the ground owned the gun and it was but self defense? There are several angles to know and understand.

If only we read and ask more, we will all know that it was but for a show, a social experiment. It could have made the difference.

Never judge without knowing all facts.

Final Words

Emotions may sometime put us in a tin can. It is hard to move, hard to think, hard to be sensible. When we allow our emotions to rule us, our wit leaves us.

Rage. People kill because of emotions. And after: I don't know what I did, I was very angry. I did not mean to. This is just the extreme side. (I am an extremist when it comes to scenario building.)

To be kind to people is foremost of all. It is to be humane because we are humans. This is not a requirement. This is nature. Let us remember that being human means being humane to ALL, not to just a few, not just when we are not the ones doing it.

There are times we just ignore the old man lying in the street. Right?

There are times we bash a former friend because of some “talks”. Right?

There are times we just raise our brows when someone, something we don't like. Right?

We all live with these prejudices and mistakes. Guilty as charged. It is just time to learn. Live.

There.

Ethical Contribution: Social Responsibility and Saudi Arabia

Ethical Contribution: Social Responsibility and Saudi Arabia

Introduction

In today's business environment, one of the most important issues is corporate social responsibility or CSR. According to Bueble (2009), CSR can be defined by looking at what the organization is responsible for and what are the things that motivate them to do it. For Vogel as qtd in Bueble, 2009) defined CSR as the "policies and programs of private firms that go beyond legal requirements as a response to public pressures and social expectations (4)." This definition illustrates CSR as the commitment of the organization to do what is not required of them, but what they are expected of them. The government sets forth the guideline and regulation for the basic concerns that should be done by the organization, but CSR is more than the guideline of the government, it is all about the expectation of the society.

While on the other hand, Cramer & Bergmans (2003) define CSR as "the conscious focusing of the company's activities on long-term value creation in three dimensions: profit, people, and planet (114)." Instead of devaluing CSR as a separate division of the company or organization, CSR is attached and embedded to the operations of the business for the achievement of goals and objectives affecting the three dimensions. Of course, the primary concern of the organization is to generate profit or economic return. But along with this goal, it is necessary to ensure that activities or operations of the business provide safety to the people inside and outside the organization. And of course, the environment is another area of concern. Business operations must comply with the basic requirement for environmental sustainability – and organizations should take more than just what are expected of them for environmental protection.

Nonetheless, United Nations Institute for Training and Research or UNITAR (2013) further defined CSR as the incorporation of social and environmental purposes and objectives into the day-to-day operations of the business. It is impossible to separate the business operation from the impact of CSR. By keeping the operations of the business in alignment with the CSR, it is easy for the organization to meet demands and purposes of stakeholders. Simply, CSR in today's context is more than just corporate philanthropy, but it is the coordination of ethical values and respect for people, and the high regard to the environment and society. This broader definition of CSR sets forth the scope of CSR for organizations to look for and ensure that their responsibility is equated with their power.

In this paper, I will be reviewing the corporate social responsibility of Saudi Arabia, using five Saudi Arabia-based companies as the primary references. This analysis will look at the commitment of the organization to improve life of the people, ensure sustainability of the environment, and promote the best welfare of all stakeholders. It is necessary to note that when western corporations look for ways with the role in the society, Middle Eastern companies are way far behind with regards to the proper perception on CSR (Ronnegard, 2013).

Construction Products Holding Company; CPC

According to the Arabian News (2013), the Construction Products Holding Company (CPC) had been recognized for its "role a national company is to ensure that their CSR program enhances the development of the society that they are part of." In the same manner, the company also receive the Corporate Social Responsibility award from the ITP Group of the Arabian Business for the year 2011. These awards and recognitions given to CPC are statements of how the company regards their role and responsibility in the society.

Part of the CSR initiatives of CPC is the youth training programs for individuals who want to learn about the construction industry and all materials, specifications, and manuals that are necessary in this industry (CPC, 2012). Youths are allowed to work in factories of CPC as a commitment of the company's policy to ensure that Saudi Arabian youths know the industry that has an important place to the development of the nation. Simply, CPC works within the education setting for their CSR initiatives. With this initiative, demand for manpower is always met to ensure that the industry gets the necessary support for its growth.

The explanation of the social and ethical contribution of CPC can be traced to the political theories of CSR. Political theories of CSR works on the principle that the power of the organization has a certain level of responsibility. This cements the idea of correlation "between business and society and on the power and position of business and its inherent responsibility (Garriga & Mele, 2004, p. 5)." Following the axiom of this theory, it is to say that CSR becomes an accomplished objective. It simply says that because the company or business is part of the society and that actions of any entity of the society affects each other, it is necessary for business to use power responsibly, either for its own benefit or the benefit of consumers.

Saudi Basic Industries Corporation (SABIC)

According to the CSR Middle East (2013), Saudi Basic Industries Corporation (SABIC) sponsored a training course for the Charity Committee for Orphans Care (ENSAN). The goal of the training is to help personnel of the company to handle or provide multidimensional services to orphans. This will include a training on how to support orphans, on how to build support for them, and how to ensure that they live in a world that will foster their growth and development.

The CSR of SABIC can be considered as truism of ethical theory of CSR. Ethical theories on CSR become the focal point of today's business environment. This is anchored on doing the right thing for the best purpose, rather than allowing businesses to do what they want to achieve their goals. These theories center on the idea of check and balance, respect, and adherence to the norms of the time. It should be that the interest of the organization reflect the legitimate and right interest of stakeholders without hindering the achievement or accomplishment of the interest of the common good. This becomes the fundamental framework most organizations follow in their definition of CSR to ensure that all stakeholders and interests are given attention and are properly addressed.

Looking at SABIC, we can see a wide gap between the nature of the company and that of their CSR. There is a small fraction, or not at all, of benefit that can be derived by a company that works with chemicals, industrial polymers, and other industrial products from an initiative that involve orphans. Therefore, the initiative can be defined as being of “policies and programs of private firms that go beyond legal requirements as a response to public pressures and social expectations (Bueble, 2009).”

Saudi Aramco

On the other hand, we can trace the value of integrative theory of social responsibility with the way Saudi Aramco responds to the demand of the society. Integrative theories follow the order that business depends on society for its growth, continuity, and development, as such business has inherent responsibility toward society (Gond, et.al., 2010). This means that the society defines the roles of the business, rather than the business defining the society. In this regard, the public opinion becomes an important part to the direction that the business should take. Looking closely, this becomes a truism of the practice today. CSR is more defined on what the society needs at the moment and not on what the business sees the society needs.

Due to the fact that Saudi Aramco is a national company with stakes on important industries such as gas and oil and with a gigantic worth of $10 trillion according to the Financial Times, the organization has great influence in the society (Oxford Business Group, 2009). It must be noted that with a company that has a great influence in the society, the responsibility is also very broad. At the moment, the company has initiatives in the economic growth of Kingdom of Saudi Arabia, in local communities, in educational setting, and in innovation for the protection of the environment (Saudi Arabian Oil Co., 2012).

Looking closely at the integrative theory of social responsibility, we can see that Saudi Aramco has great dependency on the value of the society as the primary factor in its growth. For companies that are involved in activities that involve people, the welfare of the people is central to them. On the other hand, Saudi Aramco understands its environmental responsibility for its continuity and growth and they translated this responsibility into the CSR initiative. It must be noted that although Saudi Aramco started the CSR move for the future direction of the Kingdom, there are several things that should be considered [as discussed in next companies].

National Commercial Bank

As much as the goal of CSR is to promote the common good or “policies and programs of private firms that go beyond legal requirements as a response to public pressures and social expectations (Bueble, 2009),” it is important to note that CSR policy may not really hit the tune of ethical contributions. As per consideration, the National Commercial Bank (NCB) won 'Saudi CSR in the category of Supporting Entrepreneurs and Small Enterprises' from the Chamber of Commerce and Industry. Of course, we need to note that NCB works its best to achieve such recognition from the Chamber of Commerce and Industry; however, there are questions as to the ethical contribution or CSR of the initiative.

Looking back at the definition of CSR, we find the initiative not going “beyond legal requirements as a response to public pressures and social expectations.” The company is just working within the limits and bounds as it is expected. Of course, NCB is expected to promote and support small enterprises as part of its strategy to expand operations, but we can't find it going beyond what is expected of it.

In this standpoint, CSR becomes instrumental only in the creation of wealth and generation of the same. As such, even the philanthropic activities or investments of the company should be in accordance to the value of return of investments or profits in the future. In this theory of instrumental CSR, the organization does not have any obligation or responsibility in a sense, but the organization has interest on the society only when self-enlightened (Esposito, 2009). This means that the organization should not drag the entire stakeholder of the organization to provide CSR, but it should be that the organization maximizes profit for stakeholders to provide the necessary CSR. As much as NCB works on its CSR initiatives, these initiatives are geared toward the direct support of activities and operations that will yield profits to the organization in the future.

ACWA Power

Going to the same direction with the National Commercial Bank, ACWA Power's CSR initiatives is deeply embedded in the educational development of the people. The organization works to hire Saudi Arabians over others. This means that the organization looks forward to the welfare of the people because it believes that the people support the company. There are also graduate programs given to employees for them to grow and there are also new initiatives to create youth programs (ACWA Power, 2013).

Although the organization works to promote a CSR for educational development, we also have a problem with the intent of this initiative. While Construction Products Holding Company (CPC) works with training programs for youths, but they they still get impact, the ACWA Power initiative is purely internal. The CSR works for the benefit of the people within so that they can work well for the benefit of the organization.

The CSR initiative can be reviewed within the range of instrumental theory because it seeks only to work best for its direction. But we can also say that this is under the political theory of CSR because its seeks to deliver the best people for job within an industry that affects the entire Kingdom if a single failure is made.

Suggestions to Promote Social Responsibility

As much as the following issues have been analyzed, it is necessary for the Kingdom of Saudi Arabia to push for the following for improvement of its ethical and social contributions:

• Government. Of course, King Abdullah has called for a proper CSR, and not just making CSR a rhetoric within the business environment (Baker, 2013). However, it is necessary for the government to formulate the base of CSR. As much as CSR is going beyond the requirement, the government should set the requirements. By setting regulations on CSR, the government can enforce awareness and involvement.
• Translate the Change to Smaller Companies. With the five companies cited, we find that the CSR of KSA is purely among big companies. It is the time for the CSR to be translated among small companies. It is impossible to create bigger impacts without the aid of all those within the business environment. It must be noted that not only big companies have the responsibility toward the society. Rather, the entire business environment, including all small companies, have the responsibility toward the people, to the society, and to the environment. It is very important that members of the business environment and all stakeholders have a say on CSR. This is not just an isolated initiative, but it is an initiative that encompasses size of companies, nature of industry, and even preference of management.
• Investigate CSR of Companies. Another problem that has caused tremendous drawback and pitfalls to CSR is the lack of legal framework for requirement (first suggestion) and the lack of effort to investigate companies, regardless of size, with regards to CSR. Of course, CSR is a choice of organizations by going beyond the requirement, but it is still necessary to properly investigate them, whether they join forums or not. The inclusive nature of CSR is a ground for the investigation of the initiatives being made by organizations.
• Foster Associative Initiatives. Organizations are always free to choose what CSR policy they want to adopt. However, due to this, the CSR may not work for best of the society. For instance, there is always a need to respond to wrongful violence against women, but companies do not act on it. By fostering relationship with other organizations, companies in KSA can work on CSR initiatives that will promote the biggest impact on the society. Rather than focusing on self-centered CSR policies, an integrated CSR framework can target what the society really needs, as discussed above on integrative theory of CSR.

Conclusion

The goal of most CSR policies is not actually to promote the common good of mankind or the society. Rather, the main purpose of CSR is to project a strong corporate image of good behavior and character. Instead of providing for the needs of the millions, organizations are looking for ways on how to come up with a good image that increase their value in the market. This is a backward perception of corporate social responsibility, and not really on its way to the truism of the principle of ethical contribution.

In reality, CSR is only but a theory and policy. Perhaps, instrumental theory and social capital theory are more proper to be used to explain CSR. CSR policies are focused on the maximization of profits and on how organizations can benefit from their CSR. In the implementation and application of real CSR commitment, the government should be the first motivator and mover. In fact, in water democracy, the government is expected to act for the welfare of the people. Rather than wait for private organizations to adopt a CSR policy that really translates the welfare of the people, it is time for the government to do its part by imposing the rules on how CSR should be implemented.

Second, it must be clear that the goal of business which is to make money should not come in priority against the need of promoting the common good of the people. Rather, it is necessary for organizations to create CSR that would empower the society's populace so that they can become members of the market. Lastly, CSR should not be about how the business can get something in the future, but how they can improve society itself. When CSR becomes more focused on the people, the society receives the best reward and results, and this generates a ripple on other components of the society to benefit all.

References:

Baker, M. (2013). Saudi Arabia: King Abdullah calls for corporate social responsibility. Retrieved from http://www.mallenbaker.net/csr/page.php?Story_ID=2388

Bueble, E. (2009). Corporate Social Responsibility: CSR Communication as an Instrument to Consumer-Relationship Marketing. GRIN Verlag.

CPC. (2012). CPC was awarded Top Company in Saudi Arabia in CSR for 2011. Retrieved from http://www.cpcholding.com/index.php/archives/10-archived/49-cpc-was-awarded- top-company-in-saudi-arabia-in-csr-for-2011

Cramer, J. & Bergmans, F. (2003). Learning about Corporate Social Responsibility: The Dutch Experience.IOS Press.

CSR Middle East. (2013). Saudi- SABIC highlights commitment to social responsibility push. Retrieved from http://csrmiddleeast.org/profiles/blogs/saudi-sabic-highlights- commitment-to-social-responsibility-push

Esposito, M. (2009). Put Your Corporate Social Responsibility Act Together! Tate Publishing.

Garriga, E. & Mele, D. "Corporate Social Responsibility Theories: Mapping the Territory." Journal of Business Ethics 53-71. Kluwer Academic Publishers. Netherlands.

Gilbert, D. (1996). Ethics Through Corporate Strategy. Oxford University Press.

Gond, J., et.al. (2010). "Corporate Social Responsibility Influence on Employees." ICCSR Research Paper Series. Nottingham University Business School.

Oxford Business Group. (2009). The Report: Saudi Arabia 2009. Oxford Business Group.

Ronnegard, D. (2013). CSR in Saudi Arabia: Far Behind or another Path?Retrieved from http://knowledge.insead.edu/csr/csr-in-saudi-arabia-far-behind-or-another-path-2479

UNITAR. (2013). Introduction to corporate Social Responsibility. Retrieved from http://www.unitar.org/event/introduction-corporate-social-responsibility

The Russian Experience Management

The Russian Experience Management

Ted & Harry Russia's Success

The definition of success is associated with the effectiveness of the organization in attaining the goal. From this standpoint, we can say that Ted & Harry Russia was successful in its business experimentation in Russia. First, Ten & Harry's focus is social responsibility and not just to make profit for the business, although it is an important part of the organization's survival in the market. Second, the goal of the organization in launching a branch in Russia is based on the idea that “international peace could be promoted through cooperative business ventures.” Contemplating on these two criteria, Ted & Harry Russia was successful in promoting its social responsibility and it successfully cemented a relationship with Russian local partners. Although there were series of distrust during the course of the operation, in the end they were able to patch it up and part in good terms. Russian local partners were able to know about the ice cream industry as taught by Ted & Harry and the organization also learned better about Russian business culture.

Perhaps, an important part of success judgment of Ted & Harry Russia is the way it kept the corporate ethics despite of the challenges in the new business culture. As much as we see that Ten & Harry's culture cannot survive in Russia, we have seen that it can surpass it. This is an element that proves that Ted & Harry Russia remained successful in its business experimentation.

However, if we look at the efficiency of the management in running the business, we see the pitfalls and not its success. The company failed to use its resources efficiently to ensure low waste and high results or high attainment. It is impossible to ignore that large capital loss of the organization with the Russia venture. In this standpoint, Ted & Harry Russia failed to deliver its potential ROI.

Failure of Ted & Harry Russia

Ted & Harry US failed to acknowledge several factors that led to the downfall of the Russia venture. The following are some of the problems or mistakes:

Resistance to Change. Change is a very important part of the business, but the organization failed to be flexible. Instead of changing the nature of the ice cream products, from chunky to smooth, or changing the operations from single chunky to mixed chunky and smooth ice cream products, the Ted & Harry Russia management remained adamant in acknowledging that Russian loved smooth ice cream. Globalization is an important part of management and the Russia management failed to acknowledge the need to analyze the people and culture of their market.

Organizational Culture. I have noted above that Ted & Harry Russia kept the corporate's ethics, and I don't have any intent to change that point of importance. However, by choosing an American overall manager, Ted & Harry US failed to understand that locals can better run the business because they know the market. Although the overall decision-making was shared, but the organization was ripped between the Russian way and the American way. In fact, the political scenario proved to be more difficult to handle and additional expenses must be catered.

Partnership. Ted & Harry Russia could have won the hearts of Russians with the unique chunky ice cream, but the problem of low quality due to unreliable suppliers, low delivery due to transportation problem, and such factors caused tremendous drawback. It could have been that Ted & Harry Russia partnered with suppliers, transportation provider, and such other related services. It is easier for the company to foster results among local distributors than to play risks with suppliers and transportation services. For a very unstable market and environment, Ted & Harry Russia failed to secure the most vital aspects of the operation.

Possible Recommendations for Ted & Harry Russia

There are several areas and actions that could have been considered by Ted & Harry Russia to avoid the pitfalls and problems encountered. Here are some of the most important ones:

• Choose partners with core competencies that can be used as assets than liabilities. As much as Ted & Harry US can remain as the strategic manager of the business, it is necessary to find people who can serve as operational and tactical managers. These are people who must understand the market environment for they will be the ones to execute the plan of the organization. Ted & Harry chose people who only have the minds and don't have the skill and experience. Ted & Harry US already have the minds after successful venture in the US, what the company needed are people who can translate those strategies into actions, who knows the ins and outs of Russia business culture. As noted in above section, it could have been the Ted & Harry chose suppliers and transportation providers as partners.
• Change in culture and attitude. When the organization fails to understand the market, it fails on all. After the initial try of using the resources to produce chunky ice cream, Ted & Harry could have changed to work on “customer service” satisfaction. An organization should always keep in mind what customers want and not what the organization wants to force. It is not an easy to introduce new products and change the culture of the market, but Ted & Harry could have done it gradually. By producing smooth ice cream as it creates hype on chunky ice cream, Ted & Harry could have ensure steady revenue to finance its chunky ice cream operations. Moreover, the attitude of not hearing any suggestion for growth strategy left the company stuck with its former glories. Rather than change and maintain growth, the company remained the same and failed.
• Strategic acknowledgment could have been changed. Two years of market experiment is too much, even a year of failure is more than enough. But Ted & Harry endured this, rather than moving on and finding ways. When an organization fails to see itself in transformation within the shortest time, it fails. In essence, the management of the organization fails to do its part to ensure growth within time frame.

Writing for Business – Assignment 2

Writing for Business – Assignment 2

1.) - Something else I want to convey to you, Miss Dell, is my supervisor’s apologies for

trying to pull your leg before you lost interest in the business deal.

- What do you mean “pulling my leg”? I don’t remember anybody pulling my leg! Also, please stop addressing me as Miss Dell. I’m married.

- Terribly sorry! I meant you got angry when my manager tried to throw a little joke which did not prove to your satisfaction. We hope that you’ll accept to reschedule a meeting to close the deal.

- No, I decided to invest somewhere else.

Problem of the Situation: Too much of wrong hyperbole.

- Mrs. Dell, my supervisor would like to express his apologies for his uncalled for and distasteful joke. Our company, together with my supervisor, hopes you will accept to reschedule a meeting to close the business negotiation.

2.)- We have a strong applicant who is very good at programming and robotics.

• Where is he from?
• India.
• Well, I am not surprised.
• Shall I call him in?
• Yes, please. I cannot believe we have wasted $5000 so far to get this position filled. It is all the HR and Marketing agents’ fault.

Problem of the Situation: Credibility; Ruining the HR and Marketing Agents, therefore ruining the image of the company.

- To the HR: I heard that there was an applicant who is good at programming and robotics, but was rejected by your department, I believe there is a clear explanation to your judgment and that I would like to know.

- To the Applicant: I heard you applied in our company, but was rejected by our HR department, I would like to meet with you to discuss what had been the problem with your application.

3.)Hello, I want to complain about the room service. This is the first time I receive such

poor service in this five-star hotel.

• May I take your name, please?
• Emily Barker.
• Miss or Mrs.?
• Mrs. Barker.
• OK, Mrs. Barker. Could you please tell me what went wrong?
• They have brought me unwashed towels.
• Really? Who did that?
• Yes. He said his name is Tim.
• This is a new laundry servant who has made this mistake several times so far. This is what happens when companies in our country bring workforce from third-world countries. I will make sure he is dismissed first thing in the morning.
• Excuse me! I cannot accept this excuse and am even more disappointed to hear such remarks from you.

Problem of the Situation: Too much negative.

- Hello, I want to complain about the room service. This is the first time I receive such poor service in this five-star hotel.

- May I take your name, ma'am?

- Emily Barker.

- Can you tell me what went wrong, ma'am?

- They have brought me unwashed towels.

- I am sorry to hear about this mistake Ma'am Emily. We don't have any intention to cause inconvenience. We will be looking at the problem with our laundry department Ma'am to avoid this shameful situation again. I will be sending new towels to your room Ma'am in five minutes. Will that be fine Ma'am?

- Sure, thank you.

- Is there anything else I could help you with Ma'am?

- Nothing more. Thank you.

4.)We will file a legal case against you if you don’t admit that you have leaked important information to our competitor.

Problem of the Situation: Poor construction; lack authority and formality; threat instead of decision

- The company has decided to file a corporate espionage suit against you after considering that you have leaked vital information to our competitor.

5.) You managed to ruin the company’s reputation with your lack of dedication.

Problem of the Situation:Lack strength;

- We would like to inform you that your lack of dedication ruined the company's reputation.

6.)You have to either attend the meeting or report on the press conference today.

Problem of the Situation: Lack of authority and decision.

- The management is sending you to the press conference today. This is an immediate task assigned to you.

7.)Unfortunately, the manager can’t take your calls today because he is busy.

Problem of the Situation:Impoliteness

- This is the manager's office, thank you for calling. However, I am sad to inform you that the manager is attending an important decision at the moment. Do you want to drop a message for him?

Comparison Between Takaful and Conventional Insurance

Comparison Between Takaful and Conventional Insurance

Introduction

Insurance refers to the risk-sharing arrangement between the insurer and the insured regarding losses and obligations in case of situation as warranted and specified in the contract (Obaidullah, 2005). Essvale Corporation Ltd. (2009, p. 3) defines insurance as the "protection against possible hazard that can be bought against an event which or which may not happen, such as burglary, an illness, loss of property or a legal liability." It is a legal and binding contract entered by individuals or entity, wherein a party receives "financial protection, or reimbursement, against losses from an insurance company, which pools clients' risks to make payments more affordable, in exchange for a premium (Essvale Corporation Ltd, 2009, p. 3)."

With the demand for products that are in direct agreement and compliance with Islamic values and laws, Takaful becomes an alternative to conventional insurance. Takaful is strictly an Islamic insurance concept that follows the Islamic banking system within the rules and merits of the Islamic law (Kettell, 2011). This concept of insurance has been adopted and practiced by Muslims since in the 6^thcentury, but it is not embedded in the modern insurance and banking system in most Muslims countries. Takaful is a direct breakaway from the traditional insurance system adopted by most Western organizations. In this paper, I will be reviewing these two types of insurance models to see the basic features that add value to each and to help organizations weigh the two for their own benefits.

Risk Consideration

Conventional insurance follows the traditional definition of insurance: transfer of risk from one party to another. The conventional insurance model holds that the risk or obligations in situations such as “burglary, an illness, loss of property or legal liability (Essvale Corporation Ltd., 2009, p. 3)” of a party, the insured, is transferred to the insurance company, the insurer (Beema, 2011). In this process, the insured pays the premium for the policy with the agreement with the insurer that at any event the risk of obligations are all transferred to the insurer, rather than the insured. This is the common idea behind insurance, which had been adopted by most countries globally.

However, within the Middle East region and other Muslim countries, conventional insurance is not too appealing because it has conflicts with the ideas and principles of Shari'ah. As a result, Islamic banking and insurance system promotes Takaful as an alternative to the conventional insurance system. Takaful, according to Beema (2011), is based on mutuality and not on the transfer of risk. This means that the insurance company does not have to shoulder the obligation of the risk when situations happen. Rather, the insurance company serves as the manager and executor of takaful.

Takaful is the sharing of risks between members of the common pool. This means that the insurance company forms a common pool with a certain number of participants. At the event of obligation of a member of the common pool, all members will have to share that obligation. This is the traditional convention behind takaful. Yet, it must also be noted that for takaful to take a contemporary face or modern standard, it is necessary to set a limit of obligations that should be shared by participants of the common pool, which is the same with conventional insurance which maintains a certain limitation. In the same manner, contemporary takaful takes a turn of value by categorizing what obligations are covered in this insurance system.

Simply, conventional insurance works on the value of commercialization. Although insurance companies receive the risk and obligations of the insured, they also earn in the process when that obligation does not arise. However, takaful is not about commercial or business consideration, but on the value of mutual cooperation (T'azur Company, 2010).

Element of Uncertainty

Generally, insurance has an element of uncertainty and risk, but conventional insurance and Takaful have different take considering the matter. As Johnson (1983, as qtd. in Hussain & Pasha, 2011) puts it, "risk is an element of uncertainty, as to whether an event occurs nor not." This means that in insurance system, uncertainty is what the insurer and the insured are agreeing on. It could be that the event being covered by the insured's policy does not occur and the insurer gets the advantage or it could be that the insured gets the benefit of the policy when the covered event occurs. In essence, insurance is all about uncertainty and risks, in general.

Conventional insurance works on two uncertainties. First, as I have noted in general terms of insurance, there is an uncertainty as to whether the covered event will occur (Kettell, 2011). A car insurance can only be effectively disbursed to the insured when an obligation of the insured happens during car accidents or such. However, if the insured does not encounter car accidents [as it is always the goal of a driver], the insurance policy will not be enforced and utilized, at the some extent. Second, in conventional insurance the element of uncertainty on how much will be covered becomes another issue. There is a certain level of convention as to the contention of how much is payable to the insured or how much is the obligation of the insurer to the insured. This is why there are insurances lawsuits that are filed to determine the cost of the situation and obligation of the insurance company.

This is what the Islamic Shari'ah is against to – the element of uncertainty or 'gharar'. Of course, the uncertainty of event is impossible to eliminate, but the uncertainty of the amount that should be payable to the insured as the obligations incurred is reduced. As noted by Kettell (2012) and Beema (2010), takaful is a synonymous to mutual help, as defined in the first section as mutual cooperation. Because of the essence of sharing the obligation or the burden of the obligation, the insured's obligation does not have to be debated on, but the obligation is shared by members of the common pool.

If we look closely, the principle behind takaful is a mutual fund. Participants contribute to the fund and at the event of unexpected claim, the insured of takaful can use the mutual fund. This means that members should only pay what was taken from the mutual fund. They should share among each other to ensure that the mutual fund cap is reached.

Element of Gambling

Obaidullah (2005, p. 122) states that conventional insurance is "inadmissible in the Islamic framework" because it involves "maisir and qimar" or gambling. Gambling is out-rightly forbidden to Muslims by Qu'ran. To understand this, Beema (2010) said in conventional insurance "the insured pays an amount (premium) in the expectation of gain (compensation/payment against claim)." This can further stated that at the event the loss through accidents and other covered by the policy does not occur, the insured losses his money in form of premium. This is the same with the insurance company – they are betting on the uncertainty of the claim. This can be categorized as a clear testament of gambling. Two parties are betting on a certain event's occurrence to gain or lose something.

Although, we need to understand that conventional insurance is working to eliminate the value of gambling associated with the circumstance above, the idea of “maisir and qimar” expands widely that it extends to all. The concept of “maisir and qimar” works on a simple convention that when someone gets more at the expense of another, gambling occurs. This means that conventional insurance is really “inadmissible in the Islamic framework.”

The concept of Tabarru' or Conditional Donations is what prevails in takaful. Tabarru', according to Kettell (2012, p. 128) is "the agreement by a participant to relinquish, as a donation, a certain proportion of the Takaful contribution that he agrees or undertakes to pay, thereby enabling him to fulfill his obligation of mutual help and join guarantee, should any of his fellow participants suffer a defined loss." This means that a person donates or contributes to the mutual fund without consideration for future loss or gain. The brotherhood or mutual cooperation concept eliminates the meaning of “maisir and qimar” out of the takaful insurance model.

Instead of making the insurance system a model of commercial gain, the insurance system under the takaful model is within the bounds of social responsibility. A person donates or contributes to the fund because it is his responsibility to help others within the community, rather than out of the motive that one day the investment will return bigger gains. By devaluing the commercialization of insurance, takaful becomes free from the element of gambling.

Interest Consideration

Another problem that makes conventional insurance inadmissible in the Islamic framework is the issue of "riba". According to Obaidullah (2005, p. 124), "an insurance agreement in which the policyholder expects to receive a predetermined amount that is greater than that invested clearly contravenes with the prohibition of riba." By traditional view, “riba” is the prohibition made on the receipt or payment of interest on loans or money (Thomas, 2006). In conventional insurance, the insured is anticipating to receive more than the premium, which can be considered as an investment. This means that the investment, in form of insurance premium, receives interest after a certain period of time, or at the event of situation as covered in the policy. Simply, the conventional insurance model works on interest that is against the prohibition of “riba”.

The problem of conventional insurance is not just about the interest of the premium, as form of investment, but also on the methods used by insurance companies to raise the invested premium at the event of claims. Most insurance companies would invest the insurance premium fund on various fixed interest bearing instruments such as bonds, securities, TFCs, and other financial instruments. It is just imperative and necessary for insurance companies to invest on interest-bearing instruments and other forms of investments that bear interest within specific period of time because the insured person is also expected interest on the invested insurance premium (Beema, 2011). If the insurance company won't invest in interest-bearing investments, the claims of the insured won't be satisfied.

Because insurance should be a social and communal responsibility shared by members of the common pool, it is not Shari'ah compliant to insurance to earn profits, which makes it a commercial industry. Instead, takaful insurance model warrants investments on non-interest bearing concerns, but the model allows profit-sharing. This means that the fund can only be invested on investments or concerns that will ensure profit-sharing. In the same manner, the members of the common pool can only expect that they get equal share of the profit made by the fund on profit-sharing investments, provided that the mutual fund has already met the demand and obligations of members of the pool, which will be discussed in the next section.

Profit Distribution

It is necessary to understand that in takaful insurance model, risk- and profit-sharing are foundation concepts (Eyler, 2009). Better than gambling on who should pay more and who should receive much, takaful shares the risk and profit to eliminate the gambling element, as discussed earlier. This means that whenever the mutual fund gets profit or loss, the entire participants of the common pool must equally share the burden or benefit. By creating a certain level of equality, gambling does not happen within the insurance system; and the sharing system creates a level of responsibility to each other, thereby building strength of the society or the community.

In contrast, the conventional insurance system provides that the profit of the interest-bearing investments is shared by shareholders according to their stake on the company (Beema, 2011). This means that the insured policyholders (in takaful sense, members of the pool) are not part of the profit sharing. Instead, shareholders of the company would do everything to gain much from the premium of policyholders, as opposed to the convention of mutual interest. When the insured does not renew the policy, the company also has no interest and responsibility on him. This means that whatever the company earns, the policyholder can't ask for a share. The policyholder is confined only to the merit of the policy coverage.

By model, conventional insurance is just true to the idea of commercialization. The goal of business is to earn profit – that's it. There is no need for the business to take responsibility of the policyholder who quits even if the company earns from the premium of the policyholder. Furthermore, the policyholder cannot also ask the company to return the premium if he quits.

Takaful, as a Shari'ah compliant insurance model, works on that surplus of the mutual fund of the common pool is returned to the participants (Ayub, 2009). The company or the takaful operator does not earn from the fund, rather as noted above, the company is just the executor of the fund. This provides that the members of the pool get whatever they deserve from the fund, rather than giving the profit or surplus to a certain few, which is against the Shari'ah.

Other Important Comparative Elements Between Takaful and Conventional Insurance

Aside from these things mentioned above, takaful and conventional also differs in some important respect. First, Hussain & Pasha (2011) notes that in conventional insurance policyholders have no right to ask the company where their premiums are invested. This means that if the company invests on securities and instruments that are risky and may soon fail, policyholders don't have the right to know. This is why most policyholders would be shocked that their insurance coverage suddenly collapses due to the losses of the company's value or the changes of the instruments values. Not so in the takaful model wherein members or participants have the right to know where their contributions are invested and how the surrender value is calculated.

Second, takaful insurance is governed by two laws – the governing laws and the Shari'ah regulations. This means that participants are assured that they get what they invested and they get what they deserve. In the conventional insurance, the management is only subject to governing laws. This is why there are several lapses that can be explored, especially in determining how much is payable and how much is insured.

Third, we need to understand that all takaful insurance policies are insured by another takaful company. This means that at the event that investment of the takaful company fails, participants are assured that any claim can still be met by the re-insurer. But this is not present in the conventional insurance. Only a few conventional insurance companies are re-insured. This is the reason why when the insurance company hits rock bottom with its investments, insured policyholders don't have the take to ask the company for payment of its claims. Rather, policyholders are left disenfranchised without the capability to meet obligations.

The vital problem behind conventional insurance is its being commercial in nature. Instead of looking at the welfare of policyholders, the conventional insurance company looks after its own interest. It has no responsibility, whatsoever, on the policyholders, save the obligation of the coverage. While for takaful, the responsibility is broaden to include the welfare of all. As a result, it becomes more engaging and appealing to members.

Conclusion

Both conventional insurance and takaful insurance models have their own advantages and disadvantages. For most Western countries, the conventional insurance model makes the insurance industry alive and ready to create new programs to benefit policyholders. But takaful insurance model works best for Muslim countries, where Shari'ah compliance is an important value. The simply analysis is that conventional insurance is a direct contrast of takaful. And Obaidullah (2005) is right to assert that it is impossible for conventional insurance to be accepted in Islamic banking and insurance system.

Takaful works best for Muslim countries because it follows the embraced idea of brotherhood and mutual responsibility. Instead of promoting value of gaining money, the insurance concept works on the value of the community and the society as a whole. This is the basic and fundamental benefit of takaful. It works within the concept that people are valuable and money comes secondary only. And it is works within the concept of Islamic principles and ways of life.

References:

Ayub, M. (2009). Understanding Islamic Finance. John Wiley & Sons.

Beema. (2011). Difference Between Takaful and Conventional Insurance. Retrieved from http://beema.com.qa/index.php?page=difference-between-takaful-and-conventional-insurance

Essvale Corporation Ltd. (2009). Business Knowledge for It in Insurance. Essvale Corporation Limited.

Eyler, R. (2009). Money and Banking: An International Text. Routledge.

Hussain, M. & Pasha, A. (2011). "Conceptual and Operational Differences Between General Takaful and Conventional Insurance." Australian Journal of Business and Management Research Vol. 1. No. 8.

Kettell, B. (2011). Introduction to Islamic Banking and Finance. John Wiley & Sons.

Obaidullah, M. (2005). Islamic Financial Services. Islamic Economics Research Center.

T'azur Company. (2010). Takaful Vs. Conventional. Retrieved from http://www.tazur.com/takaful-vs- conventional.html

Thomas, A. (2006). Interest in Islamic Economics: Understanding Riba. Routledge.

Innovation Management and Environment -Innovation Process and Techniques

Innovation Management and Environment

Innovation Process and Techniques

In the paper "The Innovation Process in the Video Game Industry", Quentin Cucuel (2012) presented a basic cycle to the understanding of the macro- environment behind innovation. In summary, the process of innovation can be summarized as: "innovation breeds innovation (p. 11)". This explains why companies have to reinvent itself, recreate new products, and unravel new features that keep product updated to increase its marketability. There are several factors behind the innovation cycle, these include: economic and market behavior, competition, investments, and the consumer. When the economic behavior of a region is working well, it will attract more investments and competition, thereby raising the bar for product innovation. As consumers get wide variety of options, they would end up choosing the newest one that could provide the most features and benefits they wanted to have. This is a simple illustration why innovation is an inevitable path that companies should tread on.

In the process of innovation, there are three intangible inputs that play major roles: human capital and know-how, cultural assets, environment and institutions. Innovation involves people who do the thinking. The talent, skill, and expertise of people within the organization are vital to the creation, redesign, redevelop, or simply innovation of products. In the same manner, innovation process is an atmosphere in itself. Companies that allow the creativity of their employees get the best results of innovation. While those companies that do not allow employees to explore are left in the traditional paths and past glories of their products. The relationship between the management and the employees is an important link that bridges the value of innovation within the organization (Sussman, 2006).

Cucuel (2012) asserts that although there are tangible assets are important, intangible assets are the most vital elements of innovation. By increasing the value of human capital, innovation process starts to roll. However, it should not undermine also the value of investments. With proper investments, people within the company can look for opportunities of growth. By bringing in new technologies that can be used to explore the possibilities and options of products, employees will be able to go beyond what they currently know and what they can do.

Yet, we also need to note that the macro-environment of innovation is a big factor to innovation. For instance, as Apple moves toward touch-screen multi-gestures phone feature, Samsung is also creating its own version of features. Even if these two phone giants are suing each other for copyright infringement, facts reveal that the innovation of another becomes the foundation, either directly or indirectly, to the innovation of the other. This is a truism of Cucuel's statement that “innovation breeds innovation.” In fact, the value of innovation is attached to the value of the company. Apple can raise the price of its phones as it adds new features that will appeal to the demands and needs of users. The same is true with Samsung, the company can use its features to add market value to its products.

In the understanding of innovation, Cucuel (2012) noted the concept of "technology pushes-market pulls". Technology-push is characterized by employees who find a technical possibility and they try to capitalize on this possibility (Morris, et.al., 2010). They work on the elimination of the obstacle and problem of the product. As members of the organization tries to transform the product into a flawless one, they are indirectly on the way to innovating the product. On the other side of this approach, market-pull is the engagement of consumers with the product. When a product after the transformed of the organization is presented to the public, their response becomes the ground for the market-pull aspect. This means that consumers have directly influence on the value of innovation on a certain product or to the entire organization.

The concept of technology-push—market-pull outlines the true meaning of the innovation process. As much as a company wants to create new features for a product, they are constrained to follow what the consumers demand if the organization wants to earn. Consumers become the final direction maker of the innovation. Either the consumer market appreciates or rejects the innovation – and this becomes the fuel for the new actions that should be taken by the organization. In this concept, the one dictating innovation is the consumer market, rather than the organization.

Another important concept of innovation is collaboration versus competition. This technique of innovation becomes a focal point of today's global environment. There are companies that are trying to collaborate their capital and human resources, technologies and assets to come up with innovative products and results. On the other hand, the value of competition is an old issue of innovation. As I have mentioned earlier, as investments flow, imitation happens and to avoid infringements, companies would innovate on what others have started. As a result, there is no end to innovation or “innovation breeds innovation” as companies try to outwit or outwin each other for the quest of gaining consumers.

This is in contrast with the technology-push – market-pull concept. Instead of allowing consumers to become the manager of the direction of innovation, companies allow the innovation of another to become the manager of the transformation they will be doing. In this system, the market becomes the receiver of their innovation competition. This also results to the enrichment of the market and a wider option for consumers. However, it is important to note that the concept of collaboration eliminates this competition, but still reshapes the innovation. Collaboration and competition both yield innovations, but the value of the organization's profit becomes the final test to what direction is taken between the two.

The concept of innovation is the way companies or individuals use information from each other to work on new things. Rather than making from a scratch, innovation uses its each other strengths and weaknesses to unravel new features and core competencies with intensive impact on the value of the organization.

Innovation Management Strategy

If we look closely at the strategy used in innovation management, we can see a simple principle: bank on the value of another company to build yours. This approach to innovation tries to capitalize on the value of another and the mistakes they commit, then work on that value to build another. The good thing about this concept it is allows the company to use the competency of another. It tries to make the most out of the information given by the other company.

Revenue- and market-wise, this concept allows the company to target those who are buying from another company. And because of the common concept in business that people will always want something better and newer, the strategy is effective. The innovation targets an already established set of people and then get them to want the innovative feature added on the product. As a result, the innovation becomes the competitor of its predecessor idea, but not on a new product system.

Cucuel (2012) noted how Angry Birds used the value of smartphone touchscreen feature to build its market. And this is still banking on the value of another company, but this does not present the innovation as a direct threat of the predecessor idea. Rather, it becomes an additional value of the predecessor idea. This is what collaborative innovation is all about. This is a beneficial strategy that two companies can use to increase their value in the market. Smartphone companies can use Angry Birds to keep their value for those who want to play the game, while Angry Birds can use the enhanced and advanced technologies used in smartphones to make Angry Birds more engaging and appealing to users.

However, there is a problem with the principle of banking on the value of another company to build another. This presents the company to the threat of competition, to the threat of loyalty, and to the threat of imitation. Of course, as noted innovation happens when someone or a company tries to imitate another. This is what happens to the feud between smartphone companies. They are banking on the value of each other and it caused chaos between them. As the result, they end up paying millions to each other.

Prideaux, et.al. (2006) noted that the innovation management of the organization should look forward to the creation of innovations with consideration to the needs and demands of consumers. Innovation, in this strategy statement, becomes the foresight of the company to see what customers need in the future. Instead of just following a line or a series of current innovations, innovation becomes the prime mover for new ideas. Organizations would innovate concepts and ideas, incorporate them to produce new results that are different from what is currently in the market, and with the assurance that these new products or innovations can really meet the needs of consumers, rather than being tagged as just an imitation of another product or idea which is common to the first concept being cited for evaluation.

To meet the requirements of the innovation management that can help the organization to grow in an exponential manner, Eversheim (2009) suggests the need of using the roadmap strategy. These strategy of managing innovation uses clear parameters that should be considered. First, there should be a clear maurity of the characteristics and features of products. This means that innovation should not be as drastic as it can be just to run after the competitor. Rather, innovation should be reasonable according to the maturity of features. Second, it is important to see the series of demands and needs of consumers. There are priority demands of consumers that should be pushed with speed.

A good innovation management has a set of activities that should be done within the planning phase to the implementation period. And fourth, it is important it is necessary for the company to have a clear R & D. As noted above, when the innovation management is just after the competitor, innovations become drastic measures. But with the R & D, the organization has a clear sense of what innovations are be added or to be explored. This is most organizations would spend millions in R & D because it secures them a better market standing when new features or products are launched.

However, innovation management is entangled on the concept of knowledge (Annerstedt, 2006). Due to the change of attitude of organization, management concepts have rested on innovation as the main aggregate of economic and market value. But deep within the concept of knowledge and innovation is the need of getting the right people to do the job. As I have mentioned in the first section, intangible assets are essential to the success of innovation, and innovation comes from the investment of research and development as organization invest on the creativity of people. When the right human resources management is implemented, the organization benefits from it for the effectiveness of innovation management.

The problem of innovation management is how to control the knowledge of people and keep them controlled and directed. A strategy in innovation management must know how to keep the relationship between workers and the organization. Otherwise, there will be problems to ownership of innovation and the exposure of the said innovation to other companies. This is perhaps the most important part of the changes that should be done to the innovation management. It is essential for organizations to develop clear-cut statements on how to control the knowledge of the people within the organization for its benefit.

In essence, a perfect innovation management always looks for the right areas that should be explored and should have the right people to do the job with the technological investments. By controlling both the intangible and tangible assets, the organization can always move toward the accomplishment of the organization's goals of keep up with revenue generation at the right, either to compete with another company or to collaborate with other. An organization that knows well how to manage innovation can always get the most out of every circumstances and situations.

Innovative Environment Establishment

For organizations to create an innovation environment is to create an organization that is willing to change (Tidd & Bessant, 2011). It is impossible for an organization to see the creativity among its members or employees when the organization is not willing to change. Innovation does not just command changes to the value of the organization's results and products. Innovation also demands an organization to change its attitude and character to reflect the innovation. For instance, Apple has been producing personal computers, but after it sees an opportunity in the mobile phone industry, it introduces innovation ideas and features to the product. If Apple did not adopt the change of the company's core products, it could have rejected the idea of iPhone. Simply, for an innovative environment to be realized, the organization must open itself to changes that will be brought by the innovative environment.

First, it is necessary to prepare the culture of the organization. According to Gessinger (2009, p. Vii), "recognizing and supporting the ideas of a person and ensuring that the straightjacket of company bureaucracy does not stifle creative instincts is important in establishing an appropriate innovative environment." This means that the organization innovative environment can also be realized and established when the culture of the organization works with the process. Too much bureaucracy is a major hindrance to the innovative environment.

Second, it is important for the organization to allow people to work and develop into better thinkers. The problem with a restrictive environment is it kills the mind of the person. Even if the organization has the best and most intelligent people, it will fail when these people are not allowed to think. This is what happens to Apple as opposite to Google. Apple has maintained its relax workplace to allow people to work together in a start-up. On the other hand, Google has implemented a structure of bureaucracy. Yet, we notice that both Apple and Google succeeded. The question is how can an organization formulate an innovative environment within its current structure. Both Apple and Google, in their distinct structures, work for the best of encouraging their employees to imagine things, conceptualize ideas.

Third, it is important for the organization to establish an innovative network or a formal R & D. R & D always goes together with innovation (Mairesse & Mohnen, 2004). When an organization establishes an R & D, it also encourages the rest of the organization's employees or members to think. An R & D unit is a statement to the commitment of the organization in recognizing the idea of its members. It sets forth the tone of the organization; and it is the starting point of the organizational culture. In fact, for fashion organizations or companies, a design team (is the R & D) is always the target of an employee. One would want to be part of the design team because they create the greatest impact. As a result, other employees of the organization work hard to conceptualize ideas and make them into designs.

Lastly, it is necessary for the organization to use the innovation. The problem with an establishment of R & D just for the sake of posture and image. It is time for organization to use the R & D as they are purposed. People wanted to be given a chance to have their ideas known, but bureaucracy may kill the idea – and this poses the greatest problem of discouragement among members of the organization. It is the best time for the management to adopt to the change of the new generation demands if it wants to create an innovative environment.

Strategic Implications

For organization in Oman, it is time to become more pro-active with regards to change and innovation. This will start with the investment on technological advancements that can bring value to an innovative environment. This will start with the adoption of more modern principles and approaches to management. Simply, innovation starts with the complete overhaul of the company – from its mission statement to its goals. Being adamant to change and innovation does not bring expansion, but encourages stagnation and growth death.

Recent innovations have been drafted by the government, such as the Linking Oman Program (Fulford, 2011). The government is on its way in supporting private and public sectors to innovate and be at par with global counterparts. The government brings in new advancements – and organizations in Oman should start using these technologies for their benefits. With the investments of the government on catalysts of innovations, organization should find ways on how to use them well for their benefit. As I have noted above, it is necessary for the organization to have the right technological advancements that will help it to innovate products and itself. According to The Research Council of Oman (2013), the government backs up private and public innovation efforts, especially research and development in critical fields.

With the wave of government support in the development of technologies for innovation, the next thing that organizations in Oman should note is the value of human resources. Throughout this paper, I have mentioned about the importance of intangible assets. As the government brings in the tangible assets, organizations should also do their best to improve the intangible assets – the human resources. The support of the organization is an important factor to innovation and support may be of learning opportunity. Organizations in Oman should recognize the need of making people ready for changes and placing them in an opportunity of learning that will empower them to become assets for innovation.

As much as the goal an innovative environment is to relax the bureaucracy of the organization, Oman private and public companies should open itself for the innovative ideas that will be brought in by the learning of the human resource assets. It should be that the elements of innovation – technology, human resources, and culture – should come together for the achievement of the organization's goals and objectives.

References:

Eversheim, W. (2009).Innovation Management for Technical Products: Systematic and Integrated Product Development and Production Planning. Springer.

Fulford, H. (2011). Proceedings of the 5th European Conference on Innovation and Entrepreneurship. Academic Conferences Limited.

Gessinger, G. (2009). Materials and Innovative Product Development: Using Common Sense. Butterworth-Heinemann.

Liyanage, S. (2006). Serendipitous and Strategic Innovation: A Systems Approach to Managing Science-Based Innovation. Greenwood Publishing Group.

Mairesse, J. & Mohnen, P. (2004). "The Importance of R&D for Innovation: A Reassessment Using French Survey Data." NBER Working Paper No. 10897.

Morris, M., et.al. (2010). Corporate Entrepreneurship & Innovation: Entrepreneurial Development Within Organizations. Cengage Learning.

Prideaux, B, et.al. (2006). Managing Tourism and Hospitality Services: Theory and International Applications. CABI.

Sussman, R. (2006). Innovate or Perish! Seven-Step Innovation Process to Meet the Challenges of Globalization. Productive Publications.

The Research Council. (2013). Innovation Must be for Development. Retrieved from http://home.trc.gov.om/tabid/819/language/en-US/Default.aspx

Tidd, J. & Bessant, J. Managing Innovation: Integrating Technological, Market and Organizational Change. John Wiley & Sons.