Motivation - definition

Motivation is the activation or energization of goal-oriented behavior. Another short explanation - motivation is to do something willingly. Motivation consists of internal and external to the individual forces. These forces cause a certain behavior and determine the intensity, appearance, duration and direction of that behavior. By its nature the motivation is temporary and dynamic state that should not be confused with personality and emotions.


Outsourcing - definition

Outsourcing is subcontracting an activity, for instance T-shirt manufacturing, to a third-party company.  The decision whether to outsource or to do inhouse is usually based upon reducing cost, focusing manpower energy on the core competencies of a particular business, making more efficient use of labor, capital, information technology or land resources.  It is essentially a division of labour.  Outsourcing became popular during the 1980s.


Pareto Principle

In the late 19th century Vilfredo Pareto formulated "80-20 rule", also called "Law of the vital few" or "Principle of factor sparsity":
In any society, 20% of people produce 80% of the benefits and profits.  At the other end of the curve, 20% of people create 80 percent of the problems and losses.
In economics, the following two interpretations apply: in any business project, 20% of the invested resources contribute 80% of the output, and 80% of the sales come from 20% of the customers.


Staff Assessment – definition

Staff assessment is a periodic process, executed by the respective manager through clear and public criteria.  The assessments must evaluate the performance of the individual. They have to disclose what he can do.
See article:  Leadership and Staff Appraisal


Vision statement - definition

The vision statement consists of two main ingredients.  The first one sets permanent organization qualities, values and beliefs that do not change for the next generations.  This component also describes the main company purpose for at least the next 70-100 years.  The key purpose is the main reason for the company existence (for instance, the purpose of Walt Disney: "To make people happy."). The second ingredient is definining the big bold goal for the next 10-25 years.  The success likelihood of such a big bold goal should be not more than 60-80%, but the company management and employees must believe that they can achieve it.  Very important moment for any quality vision statement is a description of a "live" concrete and inspiring painting of the achieved future results.  This drawing creates an image that employees carry in their mind.
Vision, unlike the mission is fully oriented towards company employees.
See also: Mission statement


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