Information Management

In the current market, most companies use ERP system to solve most of their management issues and also assist an organization in running efficiently. The ERP system is also well- known to be really simple and easy to work with for many organizations. In the following sections, this essay will discuss about the process and pitfalls of using an ERP system, the advantages and disadvantages of it and with these, it will conclude on the ERR system.What is an Enterprise Resource Planning (ERP) System The Enterprise Resource Planning System or simply known as an ERP system, is primarily a professional application software that carries out standardized methods to streamline information among each and every division within an organization (Leonie, 2012). The ERP system coordinates information reliably all around whatever is left of the organization. ERP system incorporates a range of modules including financial, accounting, HARM, sales, distribution, manufacturing and logistics (Deer ret al, 2005).This range of modules each has its own System which often possessed compatibility issues with each other. This is when an ERP system comes in handy whereby it joins all this incompatible modules together so as to be able them to communicate, share and impart information effectively. With the ERP system establishing communication among these incompatible oodles, there will not be a need to stir information from diverse framework, doing additional computations or interface with the sales results from a few months back or handling flow.In conjunction with this framework, each person inside the organization would be able to retrieve the relevant information he/she require in order to perform their task effectively and efficiently. Table 1 below are some modules that use an ERR system (Leonie, 201 2): Table 1: Organizational Modules that utilizes ERP System Organizational Modules which Utilizes ERP System Account & Finance Sales & DistributionLogistics Human Resource Production Gen eral Ledger Accounts Payable & Receivable Fixed Asset Sales Queries (Inquires & Quotations) Sales Orders Delivery / Shipment Invoice / Billing Purchasing, Tracking & Sales Shipment of Inventory Items Tracking of Product Lots & Serial Numbers Tracking of Product Quality Test Results Warehouse Capacity Management personnel management Organizational management Payroll Time management Personnel development Tracking the change of unrefined materials into finished items Track Labor, Overhead and other amassing costs Stipulate the full cost of creationThe Process and Pitfalls of Switching to ERP system With the ERP system being setup correctly, the whole system will become very sophisticated, incorporating decreases in administration procedures; enhanced benefits; less demanding expenses; and performance that is more dependable. Below are some points on the process and pitfalls of switching to an ERP system (Suddenly, 2011 Reduces Unnecessary Paperwork: An ERP system reduces majority of th e paperwork, as all correspondence between departments are able to experience the same framework.Using a sales department and production department for illustration purposes, whenever the Sales Department input a sales order into the ERP system, the Production Department personnel would be notified of the sales requests within a very short period and they can begin processing the sales request and issues preparation requests to the production team. In the event that there is a need to, workers can get a printout Of the processed sales request.From the point where the Production Department began processing the sales request and eventually issuing the preparation request, no unnecessary paperwork were incurred but yet task could still be effectively performed in an efficient manner. Enhanced Productivity: Productivity will be enhanced if ERP system is applied correctly, as it will greatly improve on time and material usage. Intelligence and rules can also be programmed accordingly and applied. For example, similar production orders can be combined and produced concurrently, as this will allow more proficient utilization of staffs, machines, and resources.Easier Costs: Less demanding expenditure (imparted as a rate of the revenue earned) might be fulfilled with the usage of an ERP system. For instance in the event whereby suppliers have gotten a full collaboration, the ERP system makes it keel to execute the buying arrangement without a moment to spare. This can cut down the expenses of final product stock keeping and set free capital for other purposes. Solid Performance: ERR system can often provides businesses with flawless and efficient operations, however this useful advantage is often neglected as it could not be justified as a source of income to the organization.However, it is still important to note that this strong performance of ERR can provides organizations with flawless and efficient operation when information can be relayed to various departments i n a fast, little or no error manner, using the name example mentioned earlier for reducing unnecessary paperwork. With the process being discussed, the ERP framework also contains a few pitfalls and they would be discussed below. Incorrect Rationale for using an ERP: A generally committed error, particularly when ERP-like frameworks initially showed up, is the decision for ERP with the incorrect rationale.There had been numerous organizations who settled on ERP to massive clean-up on their chaotic operation methods, unfortunately this move practically ends up in a catastrophe. The old yet famous proverb suggested ‘garbage in – refuse UT' always stands and should never be forgotten by any organizations. To keep away from these traps, it is highly important for organizations to enhance their methodology with more sensible requirement before establishing an ERP system. Underestimating the Time: Often, companies are too engrossed in implementing the ERP system such that the y underestimated the time spent.Arrangement of the usage requires much unforeseen and excess work and time spent. Understatement of the obliged attempts could deliver extreme results. Underestimating the Cost: Quite often, certain ERP system provider gives a proposition that are easily understandable by clients, yet in reality this proposition may possessed unseen problems once the system finished development, that can result in significant clashes between the client and ERR system provider. Organizations must ensure that they had considered all expense segments and how specific situations may influence the system development cost.One of the common problem faced by organization is their failure to conduct feasibility study when deciding to have the ERP system or not. Failure to do feasibility study will lead to painful results at the end of the day whereby the real cost of eating up the ERP (e. G. Agreement, permit, upkeep, expenses of execution) could cost a lot more than the reven ue they could earn when the ERP is up and running. Incorrect ERP Selection A small or medium organization ought to abstain from purchasing an enormous framework, and rather actualities one that is more proper to their prerequisites and plan (with some room to develop).Another similar issue is picking the incorrect kind of ERP system – many varieties of ERP systems are readily available in the market, some that are task arranged Reps and some that are handling line situated Reps. It is important to verify the type of framework an organization pick that adjusts to the sort of business they operate. The Advantages & Disadvantages of using an ERP System Essentially, ERP system which is correctly outlined, properly setup and accurately completed ERP results could give huge profits to any organization regardless of their volume or development.The capacity to immediately run status reports with no physical information entrance in databases can give organizations significant data on business operations and consider all the more opportune responses to changing business situations. Farsighted corporations have started to take a gander at their professional frameworks as a very vital component of their general business speculation system and operate similar monetary measurements to professional programming that are highly utilized when procuring another plant or new gear.In the quick moving universe of business, a progressed, present day ERP framework is no more simply a key to business achievement, however a centre component of survival. If any organization experiences issues running reports continuously, or their workers spent unnecessary time inputting the same piece of information repeatedly into other frameworks, or vital business measurements that needs to be ascertained by hands on worksheets, this organization will definitely reap the benefits of when they have an advanced ERR business bundle (Leer-lie, 2012).However, on the other end some disadvantages of using an ERP system would be the huge cost, its long journey, its data length, and the time spent on implementing the programmer. The implementation process can take up to several months for the system to be full up and running. Complexity is also one of the factor that organization faces when it comes to implementing the yester. Overall, ERP frameworks do not really seem appropriate for Small or Medium-sized Enterprises, or simply known as Seems whereby they essentially have difficulty in defending the starting cost of their enterprise (LOL, 2011).Some other disadvantages of using an ERP system would be discussed below (LOL, 2011). Impacting on Business Processes: ERR structures are often an immediate progression to the processes or procedures of business organizations, and this often leads to entanglement rather than actualities. In order to ensure that each one some piece of the equines fits into the ERP structure, it is unrealistic that individual procedures and arrangements co uld be kept up, so the execution of an ERP structural engineering has a tendency to take the state of a much more extensive business change venture.This is all the time an iterative methodology. At the point when characterizing the extent of the ERP at an early stage, huge numbers of such contemplations are often remains unknown. ERR executions possessed the possibility of being viewed as tasks that â€Å"constrain† unwanted reforms on the business organizations' operation. Thus once the ERP usage is underway, the only solution for any change is to change business formats without preparing the whole system from scratch.ERP Systems that lacks Flexibility and Adaptability: ERP system building design gives itself well to build organizations that possessed characterized procedures and methods. With the ERP system being set up, the system would succeed for those organizations, yet for other organizations that wish to perform major fundamental reforms, the ERP system could turn out to be exceptionally rigid. Because of the path in which the structural engineering is situated up, even generally little changes might e immoderate and entangled to execute.Dynamic organizations, continually looking to roll out improvements in course would not be able to enjoy the profit brought about by having an ERP, as the ERP would never be synchronized with what the business actually does. Problems Created through Ongoing Supports: External vendors often uphold ERP frameworks. This can result in many issues created when these external vendors are required to adhere to administration level understandings, thus the time to react to abnormalities and the nature of essential help could not keep up with business requisites.Permitting and support charges could be incurred heavily into the already thriving expenses of the ERR system. The greatest fear of any organizations are the security of their confidential information held within the ERP, as the system are mostly maintained by ex ternal vendors, the organizations feel that they do not have ‘true' control of these confidential information. Risk of Efficiency being Dissolved by Businesses A compelling ERP depends on the correct type of business procedures to help and keep up with structural planning.For instances, Organizations that do not UT resources into further skills upgrading of staffs will never be able to see the profits through ERP execution. Whenever organizations are working in an extremely conservative way, these organizations can never truly understand and appreciates the ability of an ERP framework. Structural engineering relies heavily on an exceptionally incorporated plan of action and disappointment to impart information between offices will restrain viable living up to expectations. Fundamentally, to completely profit using ERP framework, the business will be required to be executed in a certain manner readily.A few organizations have acknowledged robust benefits from the usage of the E RP system, though majority of the people believes that the results did not advocate the start-up cost of the ERP. As these ERP systems are often very costly, organizations must think thoroughly of whether does this ERP truly benefit the business, and at the same time whether business really needs to have an ERP. Conclusion An ERP system may be an exceptionally important device for each undertaking in which centre methodology could be supported by programming.

Business Plan for E-commenrce company Coursework

Business Plan for E-commenrce company - Coursework Example In relation to the study the company which has been selected is MyName-MyShop, an online business that will focus on customizing its products with labels that its clients identify with to attract and retain a large pool of customers. It plans to deal in beauty products like chains, necklaces, earrings, wrist chains and caps to start with. These products appear to be so common in the market but less personalized with names that buyers find appealing to them. It therefore gives buyers a chance to have their various products designed with the names they prefer engraved on them. The mission statement of the company shall be â€Å"Committed to letting the small things we have bring happiness in big ways.† This is reflective of the nature of the products being offered in the market by the company. The characteristic customization is what would actually â€Å"create happiness in big ways† for the clients. Working to attain this is imperative in enabling the company to uphold q uality production at all times. Current trends indicate that the sale of customized beauty products in the US market contribute a significant 5.5 billion US dollars to the national economy annually. This is all inclusive comprising of various products such as caps, wrist watches, anniversary jewelry and so forth. Further, the market is relatively fragmented and seasonal in nature. Thus during holidays, sales tend to soar to very high levels. This is attributed to the gift giving practice that occurs during this time. Also, the market is categorized in to three main echelons: low end, middle end and premium end. In the upper echelon, there are companies such as the BlueNile while the middle end is dominated by Best Gem Diamond Company. MyName-Myshop seeks to assume the upper echelon position because it would place particular emphasis on high quality production. Business Goals and Objectives The business aims at starting its operation in ten major cities and expands to cover the whole nation in five months, five states in a year and 50 states in the whole year. This expansion would enable it to attain its goals within a specified time period. In addition, it would enable it to explore the available niches and maintain an upward growth. Business Models The business model will focus in providing quality and affordable trendy products to customers. These trendy products will be customized to customer’s specifications. According to Pinson (2004), customization of products would be imperative in enabling the business to maintain

Vignette Essay Example | Topics and Well Written Essays - 750 words

Vignette - Essay Example These workers who are mostly Mexicans and Hispanics have not been arriving to the north. It is pointed out from the article that the mass-production farms are feeling the crunch of the increase in local small farms. Because of the decrease in the source of cheap labor, their produce is becoming more expensive than the local farm produce which used to be more expensive. It is cited in the article that â€Å"local farm sales are becoming more stable, predictable and measurable† (Johnson, 2012). The growing trend is that the Hispanics, who used to be low-wage laborers, are now becoming farm entrepreneurs through the support of training programs for beginning farmers. These farmers are not only provided with the agricultural know-how but also given guidance with regards to the distribution and marketing of their produce. Several economic concepts and implications can be derived from this article about small-scale farmers. One concept is about the risk that an entrepreneur takes in making an investment (Adomait & Maranta, 2011). It can be observed that the low-wage Hispanic farm laborers are taking a risk in becoming an entrepreneur. They are investing their time and effort at farming although they are not sure if the investment is worth it. It is a risk to be working on one’s own when one has no experience at being an entrepreneur. The laborer is taking this risk in the hope that he can benefit from its expected return. Like the Hispanic farmer, Narendra Varma, the former Microsoft manager described in the article is also taking a risk. He invested $2 million from his savings to a 58-acre project of small plots and new farmer training near Portland. Since this venture may be a high risk investment for him, he obviously expects a higher rate of return, maybe higher than if he just invested his money in the bank. One thinks that if the trend towards entrepreneurship continues, the economy will be

Valuation Research Paper Example | Topics and Well Written Essays - 1750 words

Valuation - Research Paper Example In 2011, Coca-Cola was also recognized as the most valuable brand in the world on the basis of Interbrand’s best global brand. Pepsi Corporation Pepsi Corporation is another American based multinational enterprise that operates in the food and beverage industry. Headquarter of Pepsi is in Purchase, New York. The company was formed in 1965 and since that time it has expanded its brands to more than 200 countries. Pepsi is the fifth largest food and beverage company in the world in terms of total revenue however in the North American region it is the largest company. There are more than 285 thousand employees working for Pepsi around the world. INDUSTRY ANALYSIS Food and beverage industry includes food production, distribution, retailing and catering of food and beverages. The total value of this industry in the year 2008 was $5.7 trillion. The growth rate of the industry is expected to increase at a CAGR of 3.5% and it is estimated that the total value of this industry would re ach up to $7 trillion by the end of 2014 (IMAP, 4). As other industry suffered because of financial crisis, food and beverage industry was also one of the victims of recession. ... Cola Corporation is considered to be the seventh most important company in the industry with total revenue of $31.9 billion and net income of $5.8 billion. The industry is lead by Nestle with total revenue of $101.8 billion which has grown by 13.5% in 2010 from 2009. The net profit of Nestle in 2010 was $16.7 billion. Other important players in the market are Bunge ltd, Unilever Archer-Daniels Midland Kraft Foods Tyson Foods Mars Inc Kirin Holdings etc. The future of this industry is bright as the economy is currently recovering from recession and many companies are planning to expand their businesses and acquire firms in the industry. Pepsi acquired a Brazilian based coconut water manufacturer company, Amacoco Nordeste while minority shares of Zico LLC were bought by Coca Cola thus reflecting potential in the industry. S&P 500 and Dow Jones US indexes indicate that the industry would grow with the passage of time as it is reflected in the following graph. (Source: IMAP, 4) FINANCIAL ANALYSIS Financial Highlights of Coca-Cola The revenues of Coca Cola Company have increased in 2010 from 2009 by 13% which has helped the company in improving its profitability considerably by 73%. The revenues of the company although decreased in 2009 in comparison to 2008 but still the company was able to generate 18% more profits than 2008 which reflected that the company was able to cut off several expenses and costs. In addition to this, the earning per share of the company has been increasing with an increasing rate since 2008. Earning per share increased by 18% in 2009 and then it increased by 74% in 2010 reflecting positive future of the company. 2010 Change in % 2009 Change in % 2008 Revenues 35,119 13% 30,990 -3% 31,944 Operating Profit 8,449 3% 8,231 -3% 8,446 Net Profit 11,809

UK Regulatory Framework for Corporate Governance Dissertation

UK Regulatory Framework for Corporate Governance - Dissertation Example They have to rely on the directors’ judgement in running the company. If the information were freely available to all the firm’s stakeholders at the same time, there wouldn’t have been a need for corporate governance. Therefore, the need of corporate governance has arisen in order to facilitate an effective, prudent and entrepreneurial management, which can deliver long run success of the firm (FRC, 2010, p.1). It is a mechanism as to how the vision and values of the firm are set by the board of the firm distinguished from the regular operational management of the firm by its executives. Corporate governance defines the relationship between various stakeholders such as shareholders, directors, management, employees, creditors, suppliers, customers, government, and regulators, and ensures accountability, integrity and transparency (Mead & Sagar, 2006, p.334). 1.1.1 Aims & Objectives This paper aims to explain the effectiveness of the corporate governance framework by which UK companies are regulated. The effectiveness of the corporate governance practices has been analyzed through the understanding the development of UK’s Combined Code on corporate governance. 1.1.2 Scope of the Paper In order to achieve this paper’s aims and objectives, guidelines of FRC over the Combined Code has been carefully analyzed. The analysis of the effectiveness of corporate governance code has been done on the basis of research papers previously published in the related field. The first section of the paper reviews the literature explaining UK corporate governance code, development of the corporate governance code and practices since 1992, and link between audit assurance and corporate governance. The second section presents the research methodology. The third section presents the findings on the effectiveness of the evolved combined code of corporate governance. This followed by the discussion and conclusion. 2 Chapter 2 2.1 Literature Review 2.1.1 Corporate Governance Codes The Corporate Governance Code in UK is founded on ‘comply or explain’ approach (FRC, 2010, p.4). The approach requires that the companies should comply with the Code and if it is unable to comply with any particular aspect of the Code then it should explain in its financial disclosures. The approach is widely accepted and appreciated by the corporations. The Code does not provide rigid rules but consists of principles and provisions. Compliance with the principles and reporting the same to the shareholders is required under the Listing Rules. The principles given in the Code are as follows: Leadership: Every Company should have an effective board that is collectively responsible for the success of the company. Responsibilities of running the board and running the company’s operations should be clearly defined and divided. The powers of decision should not be fettered to single person. The chairman of the board is responsible for leadin g the board and for oversight of the workings of management. The non-executive board members should challenge and assist develop the proposals on

3 short essays Essay Example | Topics and Well Written Essays - 500 words

3 short essays - Essay Example These parts are the exposition (A), the development (B), and the recapitulation (A’). The exposition is the main movement of sonata, which consists of such elements as a first theme, bridge (transition) with modulation, the second theme, and the closing theme (the cadence theme). The development contrasts with the exposition in tonic key, which is unstable because of modulations; also, in this movement, various themes developed, which then through the retransition return to the first key in the last movement, the recapitulation. This movement repeats the themes of the exposition in the first key and may end with the coda (concluding section). The Classical minuet and trio form is more complex than a Baroque minuet form due to its structure. Classical period composers extended the internal form of minuets and created pieces in accordance with the following scheme: minuet A (aba with repetitions) – trio B (cdc with repetitions) – minuet A (aba) or A (aba’) – B (cdc’) – A (aba’). The rondo (rondeau) form is commonly used for closing movements. It consists of a main theme (A) and spacers (B, C etc.) between the appearances of A. The main rondo schemes are as follows: ABACA coda; ABACABA; ABACADA and others. 2. Music period that appeals to me as a listener is the Late Baroque period. Primarily, it is so because of its complexity, which encourages to think and follow, intellectuality, accuracy (due to the tempered scales), regularity in rhythm and musical form, intensity of emotions, and ornamentation. Among the most significant genres of this period are concerto and concerto grosso, the fugue, dance suites, opera, oratorios, church cantatas etc. 3. With the aim to be able to deal with atonality and dissonance in music, Arnold Schoenberg presented his method of composing, known as the twelve-tone system, which he defined as â€Å"a method of composing with twelve tones solely in relation to one another†, meaning with

Transformational Leadership Paper Essay Example for Free

Transformational Leadership Paper Essay Abstract The purpose of this paper is to identify the the role a transformational leader can play in order to minimize the volatility that a change or transformation brings about in an organization. The paper discusses the two most common leadership styles, transactional and transformational leadership, and their differences. The qualities and traits of a transformational leader have been discussed. Most importantly this paper tries to associate the qualities of emotional intelligence to a transformational leadership style, and how the two feed into one another. Introduction Today the world has become a global village and markets have expanded to the extent that now firms are competing on a global level. This on one has provided firms with a massive opportunity and on the other hand it also demands more hard-work and effort from the workers. The challenge therefore is how to tackle the ever-changing work-environment. When one speaks of the dynamic work environment one has to realize the importance of Good Leadership in such a scenario. So, the leaders of todays companies have a lot to care about and a lot of responsibilities to take care of. Therefore, it is totally up to the leadership to make most of the human skills at hand and motivate them in order to make sure that they adapt quickly and easily to the work environment and thus maximize efficiency. Leaders broadly may be categorized into two groups, transactional leaders and transformational leaders. Transactional leaders are the kind of leaders whoguide or motivate their followers in the direction of established goals by clarifying role and task requirements (Robbins and Judge, 2005). The other type of leaders inspire followers to transcend their own self interest for the good of the organization. They are able to have a profound and extra-ordinary effect on their followers, these are transformational leaders (Robbins and Judge, 2005). Transformational leaders are are charismatic in nature and have the ability to provide individualized consideration and intellectual simulation (Robbins and Judge, 2005). Transformational leaders pay attention to the concerns and development needs of individualized followers; they change followers’ awareness of issues by helping them to look at old problems in new ways, and are therefore able to excite, arouse and inspire followers to put in extra effort to achieve group goals (Robbins and Judge, 2005). Analysis Leadership at the top is never easy for even the most experienced people. For someone taking on the job of CEO for the first time, mastering the new skills and sorting out the uncertainties that go with the position can be an overwhelming challenge. The fact is that for most of the CEOs especially the freshly appointed ones it is exceedingly difficult to familiarize themselves with the responsibilities and the risks that are associated with the job, and usually it requires some time and experience before they can deliver. The Centre for Creative Leadership has estimated that 40% of new CEOs fail in their first 18 months (Dan Ciampa 2005). What’s more, the churn rate is on the rise: In a 2002 study, the centre found that the number of CEOs leaving their jobs had increased 10% since 2001 (Dan Ciampa 2005). As a recent report from the outplacement firm Challenger, Gray Christmas points out, â€Å"The biggest challenge looming over corporate America [is] finding replacement CEOs.†(Dan Ciampa 2005) Take Coca Cola for an example, when the company lost its CEO Robert Goizueta in 1997, the two subsequent CEOs suffered in his shadow, as people expected them to perform the same way Goizueta did, however, leading as suggested earlier is the toughest job amongst all. Goizueta had guided Coke through its glorious years of the 1980s and the most of 1990s, leading it to perennially unrealistic expectations by shareholders. This is why change management is regarded as a tough job, because changes can occur in the external macro-environment and at the same time in the internal environment, as incase of Coke, whose CEO Robert Goizeuta died of cancer. And since then Coke has never been able to make up for the loss, and Pepsi has gained a significant market share since then. Jack Welch is probably the first name that comes to mind when we speak of transformational leaders. Richard Branson of the Virgin group is another very famous transformational leader (Robbins and Judge, 2005). When we speak of transactional and transformational leaders, they shouldn’t be considered or viewed as opposing approaches to getting things done. Transformational leadership is built on top of transactional leadership, as it produces levels of follower effort and performance that go beyond what would   with a transactional approach alone (Kotter, 1995). A transcational leader believes in exchange of rewards for effort as a major source of intrinsic and extrinsic motivation. He rewards good performance, and recognizes accomplishments. He tries to identify deviations from rules and standards, and subsequently reverts to corrective measures, and intervenes only if he believes that the standards have not been met. Transactional leaders usually abdicate responsibilties to others empowering them but also avoiding to go throw the challenging phase of decision-making. Trasformational leaders, on the other hand, are charismatic by nature, i.e. they provide vision and sense of mission, instills pride, gains respect and trust of his followers (Kotter, 1995). But, transformational leadership is more than just charisma. Because all charismatic leaders would want is to make sure their followers share the same viewpoint on things as they do, whereas transformational leaders will try to instill in followers the ability to question views, views established by the leaders themselves. Transformational leaders act as a source of inspiration to their followers, communicating high expectations, using symbols to focus efforts, expressing important purposes in simple ways. Transformational leaders also promote intelligence, rationality and careful problem solving skills (Robbins and Judge, 2005). But the most obvious and impotant trait of a transformational leader is that they offer individualized considerations to their followers, giving them personal attention, treating them all individually, coaching and advising them on a one to one basis. The evidence supporting the superiority of transformational leadership over the transactional variety is overwhelmingly impressive. For instance, a number of studies were conducted with American, German and Canadian military officers, belonging to different ranks, and the eventual verdict was that transformational leaders were evaluated as more effective than their transactional counterparts. Similarly, managers at Federal Express who were rated by their followers as exhibiting more transformational leadership were evaluated by their immediate supervisors as higher performers and more promotable. Much has been written about leadership and the qualities that fuel leadership such as intelligence, passion, toughness, determination, ethics, credibility, integrity, vision, etc. Often left off are the lists softer and more personal qualities, but recent studies have proven that they are equally important. Researchers have proposed a new term called Emotional Intelligence, and it may well help differentiate the outstanding leaders from the merely adequate ones. Emotional intelligence is one of the major aspects of transformational leadership. This may be because, effective transformational leaders rely on the expression of feelings to help convey a message; therefore, they possess a higher level of emotional intelligence. Emotional intelligence helps leaders manage the mood of their organizations which is an integral part of the transformation process (Satterlee, 2007). Emotional intelligence is what makes transformational leaders self-aware and empathetic to a greater extent. They can read and regulate their own emotions while intuitively grasping how others feel and gauging their organization’s emotional state. According to Daniel Goleman, who conducted a lot of research on Emotional Intelligence, there are five main components to emotional intelligence. Self-awareness is the trait where emotional intelligence actually begins (Goleman, 1998). Transformational leaders with a greater degree of self-awareness are never hesitant to talk about and discuss their weaknesses and it is this attitude that later brings upon a positive change in them as they are able to improve upon such weaknesses with time. This helps a leader in bringing about a transformation as he is someone who knows his limitations and he knows when and where he can actually stand-up and deliver for the rest of the workforce and be a motivator for them, i.e. when can he lead by example. Thus he knows which tasks and changes can actually be brought about in an organization and which ones cannot. The second trait is self-regulation, and that leaders with this trait can control their emotions and impulses better and channel them for good purposes (Goleman, 1998). This brings about an openness to change and transformation in their attitude and behavior, and increases their trustworthiness and integrity, and also helps them remain comfortable in ambiguous situations and scenario. And this is what subordinates try to see in their leaders, especially in times of change and transformation. Motivation is perhaps the most important trait and the most obvious one that a leader is judged upon. It’s the motivational abilities of a leader that gives the sub-ordinates the notion that the leader has a strong drive to achieve. It portrays the optimism of the leader towards the followers, such that they know their leader would still be optimistic when facing failure, so it has to do more with the mind than anything else. It is the positivity of the mind, it emanates from the mind of the leader and leads its way to the minds of the followers (Michael Roberto and David Garvin 2005). Empathy is the ability to understand the emotional makeup of other people. Empathy is the trait that enables a leader to be an expert in building and maintaining talent, something that is critical to the process of transformation. It enables him to treat people according to their emotional reactions. This is why he can be successful in getting the most out of the talented people that work under him, making him a better man manager. He is able to manage and lead people from various different backgrounds and cultures, belonging to various social and economic classes, i.e. it increases the cross-cultural sensitivity of the leader himself. With the businesses and economies globalizing, leaders have to lead and manage people belonging to different cultures which is the major reason why change management in such a scenario is very difficult, however, if only a leader can empathize with his followers, it makes the job half as difficult as before. The last trait that comes under emotional intelligence is the social skills of the leader. Transformational leaders need to be proficient in managing relationships and constructing networks that lead to effectiveness in change management ans transformation. Such a leader is able to find common ground between individuals and situations and scenarios and is able to build rapport. It also improves his persuasiveness and the ability to build and lead teams. A transformational leader combines emotional intelligence with the courage to raise the tough questions, challenge people’s assumptions about strategy and operations and risk losing their goodwill, i.e. he does not care about pleasing individuals but rather believes in the greater good of the company. A leader gets into trouble when there’s dissonance between the inside and outside what today we’d call a â€Å"disconnect.† (Mayer 2004) If a single theme runs through this issue, it’s the importance of keeping the two aligned. Every leader ought to want a more supple emotional intelligence, and â€Å"Leading by Feel† is a great place to begin (Mayer 2004). Another important tool in ensuring effective transformation is collaboration and good communication, which is essential and plays a vital role in process. All processes, practices and functionalities give more values to customer, goals and performance for achievement of goals. There should be internal solutions. Horizontal, Vertical and multi directional interaction must be carried out before change in organization. For a transformational leader, it is important to study the present culture of the organization and to know where one is. It is also necessary for a him to identify employees who want change and those who are not happy with the process of transformation. Take examples from existing model that has effectively implemented change and also communicate with them regarding their experience with transformation. The process has to be subtle and gradual, and a transformational approach would not demand immediate and complete change in the existing culture. Transformational approach to leadership also encourages one to seek advice from people about ways to implement change and methods to solve the problems while transformation. A clear vision definitely accelerates the transformation process. References Ciampa, Dan (2005). Almost Ready: How Leaders Move Up. Harvard Business Review. Goleman, Daniel (1998).What makes a Leader?. Harvard Business Review. Mayer, John (2004). Leading by Feel. Harvard Business Review. Kotter, John P. (1995). Leading Change: Why Transformation Efforts Fail. Harvard Business Review Leadership As A Boss In The Workplace. Retrieved July 29, 2008, from Manager Newz Web site: http://www.managernewz.com/managernewz-21-20070125LeadershipasaBossintheWorkplace.html Roberto, Michael and Garvin, David (2005). Change through Persuasion. Harvard Business Review. Robbins, Stephen P.   and Judge, Timothy A. (2005). Organizational Behavior, Twelfth edition: Pearsons Publishers Satterlee, Anita (2007). Essential of Management: Core principles, concepts, and strategies. Synergistics Inc.