Evaluating Contracts Assignment Example | Topics and Well Written Essays - 1500 words

Evaluating Contracts - Assignment Example Apart from the costs of the materials, the business will then have its markup, and the arrangement accommodates changes in the prices of materials (Gido & Clements, 2014, p. 87). The advantages of entering into a fixed-price contract for the business include that it will allow the business to secure and plan the execution of the contract fully, right from the beginning of the contract. The case for a cost-reimbursement contractual agreement is different, because the agreement limits the profits that the business could make from the execution, irrespective of the duration taken and the efficiency of executing the work. Secondly, this type of contracting will simplify the process of sales forecasting, because the profits to be drawn from the contract can be determined before starting the project, and that allows for more sales prospecting. The case is different in the case of entering into a cost-reimbursement contract, because disputes over the costs of materials and labor can affect the process of reimbursement and the profitability of the business – as a result (Gido & Clements, 2014, p. 87). The major risk arising from entering into this type of con tract is that, it is likely that the business will agree on a price which is too low, to the extent that it may not meet the costs of labor and materials adequately. Further, there is the risk that the increment of the prices (costs) of the materials needed for the execution of the contract may limit the business’ ability to make a profit from the contract, especially in the event that prices increase. The case is different in the case the business enters into a cost-reimbursement contractual arrangement, because it will allow the business the advantage of determining the profits to be made before starting the contract. This advantage is highly significant, where there is a risk of change (increment) in the costs of labor and materials. Arising

Organisational Theory (Business Management) Essay

Organisational Theory (Business Management) - Essay Example The organizations also require their employees to be technological savvy so that they can cope up with rapidly evolving technologically driven environment. The future of organization is thus expected to be very different in terms of its operations form the current due to rapidly changing technological driven environment. Modernism (Ontology: Objectivism) This theory focuses on organization as an independent objective thus taking a positive approach in generating knowledge which is vital in increasing efficiency. This theory focuses on an organization as a community sustained through human relationships and use of subjective ontology in most of the everyday activities. This implies that instead of man treat organizations as webs of meaning that are jointly created and not as objects to be measured and analysed hence exploring meaning to realities made possible by those who participate in them. Post modernism generates health scepticism towards dominant theory hence licensing individua ls to try something different most of the time (Melaney, 2001). The organization culture is the collection of values and norms that people in a company share thus controlling the way in which individuals interact with one another in their day to day activities. The values represent beliefs and ideas especially in the organization goals which workers pursue thus achieving them in a particular pattern and behaviour which often differ from one person to another. These values over time develop norms and guidelines together with expectations that determine the behaviour of employees which in turn affects the behaviour of the management towards them. The organizational culture in most cases spans form the top management downwards thereby acting as a control mechanism which shapes the behaviour of the employees at different levels of management thus establishing organization behaviour. This promotes the employees effectiveness through mutual understanding between individuals and groups wit h the ultimate goal of achieving the best results for the company. This provides a continuous system in which employees work harmoniously thus controlling themselves while adhering to the norms of the company. This theory also focuses on how organization members make meaning and role that determine the direction of workplace. The art of moving cultural symbols is predominantly made by the press and the politicians thus changes the meaning of situations and locations in which they occur. The postmodern cultural studies often go beyond fragmentation assumption by asserting that reality is an illusion that aims to suppress and marginalize those who do not accept and support the dominant view. According to this theory, organization culture is just one more from form those in power to mask their manipulation and control of others thus leading to destructions (Hatch & Cunliffe, 2006). Critical theory (Epistemology) This theory is an approach developed by Frankfurt school in Germany and it holds that every society is totality in which each feature is essentially connected with others constituted by forms of beliefs and understanding in the society. The theory argues that atomism and objectivism are false, the epistemology of critical theory combines historical materialism, Freudian