Contract and Contract Management...

Contract and Contract Management  Contract is defined in short as an agreement between two or more parties enforceable under the law. A contract is a legally binding agreement between the parties identified in the agreement to fulfill all the terms and conditions outlined in the agreement. A prerequisite requirement for the enforcement of a contract, amongst other things, is the condition that all the parties to the contract accept the terms and conditions described in the contract. Historically, this was most commonly achieved through signature, but in many jurisdictions – especially with the advance of electronic commerce – the forms of acceptance have expanded to include various forms of electronic signature. Party/parties awarding the contract are known as the purchaser or employer. Party/parties agreeing to execute or perform the contract are known as the supplier or contractor. Contracts are of several types. They are normally classified as supply contracts, service contracts, management contract, transport contract, sales contracts, purchase contracts, design and engineering contract, training contract, maintenance contract, civil contract, and erection contract etc. Contract life cycle management is defined as the process of systematically and efficiently managing contract creation, execution and analysis for maximizing operational and financial performance and minimizing risk. Contract management life cycle is shown in Fig 1 Fig 1 Contract management life cycle  A contract life cycle has two distinct phases namely pre signing phase and post signing phase. The pre signing phase consists of activities before the signing of the contract. The activities in this phase are dominated by the purchaser/employer. There is no supplier/contractor in this phase but there are bidders. One of the bidders becomes supplier/contractor after the award/signing of the contract. The activities involved in this phase are identification and approval of a requirement, preparation of a...

Crisis Management

Crisis Management  Crisis is an event which harms an organization, its facilities, its finances or its reputation within a short period of time. A crisis can occur as a result of an unpredictable event or as an unforeseeable consequence of some event that had been considered a potential risk. In either case, crisis almost invariably requires that decisions be made quickly to limit damage to the organization. Crisis management is the application of strategies designed to help the organization deal with a sudden and significant negative event. Crisis management is the art of making decisions to head off or mitigate the effects of such an event, often while the event itself is unfolding. This often means making decisions under stress and without the support of key pieces of information. Crisis management is the management and coordination of the organization’s response to an incident that threatens to harm, or has harmed, the organization’s people, structures, ability to operate, valuables and/or reputation. It takes into account management’s planning and automatic incident response, but must also dynamically deal with situations as they unfold, often in unpredictable ways. The study of crisis management originated with the large scale industrial and environmental disasters in the 1980s. Under the present day environment crisis management is an important and necessary component of managing an organization since in the current day situation, no organization is immune to crisis. Crisis may hit an organization in the shape of terrorist attack, industrial accidents, product recall or natural calamity etc. Crisis management is closely linked to public relations where the organization’s image and pride are at stake. Following three elements are common to a crisis. A threat to the organization The element of surprise A short decision time Crisis is a process of transformation where the...

Working in a Team

Working in a Team A team is considered to be a group of individuals who come closer for working together for achieving a common goal. In an organization team is understood as group of employees who has some collective tasks. The team members in such a team normally are authorized to regulate mutually the execution of these collective tasks. Teamwork is essential in today’s competitive world. In today’s corporate world individual perfection is not as desirable as a high collective performance level. In knowledge based organizations, teams are the norm today. Teamwork Teamwork is a set of activities of the group of individuals, which includes effective communication/interaction amongst the team members for knowledge sharing, understanding each other on personal level, helping others in achieving a level of perfection, building a sense of unity in the team and working towards common objectives. It is difficult to arrive at a single definition of teamwork. Several concepts exist and researchers in the field differ in their view of what teamwork actually means. Teamwork is generally defined as a cooperative or coordinated effort on the part of a group of persons working together for a selfless purpose and acting together as a team in the interest of a common cause and working for a higher cause. Teamwork is also defined as a joint action by a group of people, in which each person subordinates his or her individual interests and opinions to the unity and efficiency of the group. This does not mean that the individual is no longer important. But effective and efficient teamwork goes beyond individual accomplishments. An effective teamwork is produced when all the individuals involved harmonize their contributions. Teamwork is the co-operative effort to achieve a common goal. Achievement is usually measured by some...