The rich history of barter systems


The barter system is single of the first forms of trading in 6000 BC. Barter system is an elderly age system that was adopted by public to exchange there goods and services. In that age people supposed that the barter system was first introduced by the tribes of Mesopotamia. Once the tribes of Mesopotamia introduce then the system was adopted by Phoenicians, who exchange there goods to public in cities situated crossways the Oceans. Babylonia was introducing better way of exchange of goods and service of barter system. Citizens used to exchange there goods for Weapons, tea, spices and food items. In that ages salt is so valuable and roman soldiers get there wages in salt. When china first invented paper money around 5000 BC after that the problem is solve out with the invention of money.

The Europeans start coming in eastern countries to barter there services to trade there goods like furs and craft materials in exchange of perfumes and silks. Barter system was well-known in 1930s which witnessed a scarcity of money. Barter system has been in use during the world of centuries. When barter system exists after that agriculture era starts.

Agricultural revolution:

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The agricultural revolution was a time of agricultural growth between the 18th century and the end of the 19th century, which saw a huge and quick increase in farming efficiency and huge improvements in farm knowledge. The agricultural revolution occurs between 1750 and 1900 when the way in which farmers produced food in the country changed. In 1750 most citizens lived and worked in villages producing food. As country situation changes they go during the industrial revolution while it was essential to increase the full amount of food grown. This happen because population is increasing day by day.

In beginning of the eighteen century mainly farmers had strips of land they would grow their own food. This type farming has so many negative things. In this revolution farmers know something about the fertilisers they had to leave there land fallow like few years and some people argued about this revolution changes in farming were slow. By the 19th century farmers were beginning to use the Norfolk crop rotation system. This system meant that no land had to remain fallow. The system worked like this. The land was divided into different sections. The crop that was grown on field was rotated so that diverse nutrients would be taken from the land. As the order of food improved people began to make improvements to the types of machines used on farms.

Industrial revolution:

In the histories of nations, innovations in technology have sometimes occurred at such a rapid pace that the era became known as an industrial revolution. The first Industrial Revolution occurred in Great Britain between 1750 and 1830. Developments there moved the country from a largely rural population that made its livelihood almost entirely from agriculture to a town-centred society that was increasingly engaged in factory manufacture. Later in the 19th century, similar revolutionary transformations occurred in other European nations and the United States. The main effects were not felt in countries like Russia and Japan until the 20th century. In other countries these transformational developments are only now occurring or still lie in the future. Also, during this time much international strife was occurring at this time. The American Revolution was occurring in the beginning part of the Industrial Revolution. The French Revolution was in the process at the turn of the 19th century. This was a great time, but resulted in newly found democratic rights that spread through Europe and North America.

The Industrial Revolution was not a good revolution for the planet. From the time of its start, the factories and industry has increased the amount of carbon dioxide in the atmosphere by two-folds. Also in our drive for consumerism, our planets natural resources are being depleted at an alarming rate. Pollution by nuclear waste, pesticides and other chemicals are also the result of the Industrial Revolution.

Impact of IT revolution:

Rapid advances in technology and the merging of computing and communications technologies enable organisations to operate more efficiency and effectively. In addition, organisations are also able to offer products and services n ways that were not possible before certain technologies were developed and applied. In 1972, a Sinclair electronic pocket calculator could to quite complex arithmetic calculations and cost. Today's mobile phone can transmit coloured images worldwide via the internet and often attracts no capital outlay or not much more than £200 at current prices. The convergence of communication and information technologies has had a significant effect on the development of western capitalist economies. On other hand, information technology has developed almost exclusively through commercial enterprise and as such is subject to market forces.

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The growth of a major industrial sector in information and communications technology is in itself an important feature in most European economies. Over and above that, information and communication technologies play a major role in industrial and commercial sectors.


Max Weber enhanced the Scientific Theory given by Taylor by adding some points regarding the organisation. He emphasized that organisations must follow a particular system or a hierarchy, which will give a clear idea of the role to be carried out by each person in the organisation as an employee, which will help each of them to do their job efficiently. He also gave some fundamental necessities to be accomplished by the organisation for being bureaucratic, which are as follows:-

Today's World

In today's economy, every organisation is in some way or the other bureaucratic, and it does follow the system fundamentals given by Weber. Every person in the organisation is aware about his/her



Duty (2/10/2009)


Today's world

As the name suggests, it is a "philosophical" method of dealing with problems confronted by organisation using a pre-laid path. Organisations follow a system, where managers manage their subordinates in correct manner, without discouraging any of them, while facing the problems internal as well as external without taking decisions haphazardly. Here a cycle can be displayed: (3/12/2008)



Unions and government regulations reacted to the rather dehumanizing effects of these theories. More attention was given to individuals and their unique capabilities in the organization. A major belief included that the organization would prosper if its workers prospered as well. Human Resource departments were added to organizations. This theory worked hard to understand the needs of workers and how the needs of the organization and its workers could be better aligned. (Theory "X", "Y" and "Z"). (3/10/2009)


Today's world

This theory simply says that there is no "best way" of dealing with the problems faced

by the organisation, as there are different type of organisations in an industry, and different types of industries in an economy, which creates great scope for different problems to arise in a single economy.

Types of Contingency

Contingency theory of Leadership

Contingency theory of decision making

Contingency theory on the organisation

Task 2.1.b

Evaluate the strengths and weaknesses of bureaucratic organisations.

A way of managing or structuring an organisation is "bureaucracy". Evaluation of strengths and weaknesses can be done in following manner:

A. Strengths

1. Authority:

The system of authority in bureaucracy makes the whole organisation centralised, well organised and efficient. The authority being legal and centralised has some rule and regulation set for the whole organisation. These help the management to make and to make the subordinates, execute the orders.

2. Employer-Employee relation:

The relation between the important pillars of the organisation, in bureaucracy is very commercial, being a strength of bureaucracy as it concentrates only on the work related to the organisation. 1:1 relation leads to clarity regarding understandings of each other.

3. Division of labour:

This strength answers the question "why am I in this organisation?" This is due to the work, duties and responsibilities divided and distributed.

4. Selection by skill/qualification:

This makes the whole organisation more efficient in terms of using its labour. This also reduces and/or saves the time and cost required for training provided.

5. Security:

A very important strength with regard to the employees as well as the employer. If the employees are specialised in their work, their jobs are secured. On the other hand, when there are specialised employees in the organisation, the employers are also secured and ensured with good quality and efficiency in work.

6. Information:

Another important strength of bureaucracy. Right type of information to the right person at the right time is necessary. This flow has to be recorded i.e. to be written, which makes it a legal evidence and easily referable, whenever needed.

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The next is evaluation of the weaknesses of bureaucracy

B. Weaknesses

1. Rigidity:

A bureaucratic organisation is very rigid. It doesn't allow any of the employer or employee to make changes in execution of the given orders. There is no space for "trail and error" method, which snatches an opportunity to search new ways to be more efficient in the same work. No chance is given to both of these to communicate in a better way, due to the rigid environment. This may lead to misconceptions, misunderstanding between colleagues or between the management and workers or subordinates.

2. Monotonous work:

Employees' do need a change from the work they do. If they do not get such a change, the work becomes monotonous, and even the skilled labour starts disliking it. This may become hazardous for the organisation as it will make the organisation less efficient and people will loose faith in them. Employees get bored with same kind of work doing years after years. This also creates fatigue ness or laziness towards the work.

3. Lack of employees' involvement:

Due to rigidity, monotonous work and work pressure and the system of centralised authority, employees loose interest in the work as well as in the organisation. This leads them to lesser involvement in the organisation. There is no sharing of opinions, loosing efficiency which proves to be dangerous for the organisation.

4. Unforeseen changes:

A bureaucratic organisation cannot understand the future challenges and changes which will happen or are already happening due to the dynamic environment of business. This makes them lack in being flexible and change according to the environment or as per the need of the economy. Due to quick changes, the pre-determined rules and regulations do not work and they are not prepared for the new or rapid changes, which make them weak in the competition, loose their efficiency.

TASK 1.1.c

Critically evaluate and compare alternative forms of organisational development.

After the evaluation of strengths and weaknesses of a bureaucratic organisation, there will be a comparison about the alternative forms of Organisational Development (OD).

Definitions of OD:

The standard definition is as follows, given by Beckhard in the book "Organization development: Strategies and Models"

"OD is an effort planned, organisation-wide, and managed from the top, to increase organisation effectiveness and health through planned interventions in the organisations' 'processes', using behavioural-science knowledge"

(Robert Rouda, 1996)

But as time changes there has been change in the definition too. This definition is given by:

Nielsen in the book "Becoming an OD Practitioner":

"Organization Development is the attempt to influence the members of an organization to expand their candidness with each other about their views of the organization and their experience in it, and to take greater responsibility for their own actions as organization members. The assumption behind OD is that when people pursue both of these objectives simultaneously, they are likely to discover new ways of working together that they experience as more effective for achieving their own and their shared (organizational) goals. And that when this does not happen, such activity helps them to understand why and to make meaningful choices about what to do in light of this understanding."

OD is a very generic term, but it takes place in each and every area of an organisation. Broadly this term is the performance enhancement of organisation as a whole.

There are many fields where OD has to be carried out, and can be written in an elaborated manner, but here coverage of some of those parts will be done. In this task the main focus of OD will be regarding the Human Resource Development, which is the most important area, as all organisations are organised, controlled, and managed by and for human beings. Starting from the top there are many levels of management, which in a bureaucratic organisation is named as "the Hierarchy", where on each step there are people who have different tasks, responsibilities, duties entrusted, but at the same time are related with each other.


To start with the "Lower Level" of hierarchy, includes the people who physically work for the organisation. This includes the labours, supervisors, on-floor workers, sales assistants, accountants, etc. These people need different type of OD. They are the people who actually carry out the plans or strategies laid down by their seniors. To bring in OD for these employees, various methods are available. Some of them can be explained in following manner:


The lower level of management, who work at the ground level of plans and strategies, need proper training in their field, which is necessary for the organisation to maintain the speed with the dynamic and changing technologies and to achieve OD. This supports the employees as well as the employers, as employees become trained and efficient in their job and employers get good results out of these efficiency, and their goal is achieved with a fast pace of efficiency. A training gives a new direction or new methods of performing a job, which changes the career opportunities for the trainee which if interesting can create more enthusiasm in the trainee.


Appreciation is a kind of expressing the acceptance of good performance by seniors or managers. This creates a relationship among the senior and junior, which helps in mutual understanding, important in every workplace. By this mutual understanding, many problems can be resolved, which were barriers for the OD.




The middle level consists of the managers, who are a link between the top level and low level of management. These managers have partial right to make decisions but have to follow the instructions of seniors.

The top level management are the highest of the hierarchy of their organisation, which includes the board of directors, stake holders, investors. Here the board of directors are the decision and strategy makers, who inform the middle management about the plans and strategies.

The middle level managers' are representatives of the employees as well as the top level. For OD these employees are to be made aware about the whole organisation, the changes happening internally as well as externally, success achieved, failures faced, and many more things. By having a clear picture of all these details, through various meetings, conferences, they can make changes in their styles of decision making, their ways of treating juniors, their thinking methods, their creativity. New actions are taken for achieving goals where, changed decisions, understanding creates greater impact on the performance of the organisation and achieves higher level of success. These various methods create new spirit in the whole organisation.

There are many more ways by which OD is achieved in different forms of organisations, but only a part of it is covered in this task.

In this task, a specific organisation will be chosen, of which various systems developing, different analysis will be studied, for better understanding of the managing change in organisations.

Due to the big content of this task, it will be divided into two parts:

Task 2.2.a:- Developing systems to involve appropriate stakeholders in the introduction

of change.

Task 2.2.b:-Analysing and evaluating these systems.

TASK 2.2.a

Develop systems to involve appropriate stakeholders in the introduction of change in a chosen organisation

In this section, different points about a specific organisation will be discussed. The organisation selected here is the 2nd largest fast food chain, famous for its special "whopper", BURGER KING. This organisation was established in 1954, in Miami. Now Burger king has become the most popular fast food chain after Mc Donalds. This organisation has faced and coped up with drastic along with many small changes for numerous reasons.

Burger King as known to everyone has gone under many scrutinised situations, where they had to change them to be in the competition. Around 2000, BK was facing huge losses. Since beginning, the franchising method followed, was not working. BK was not making profits, due to fewer sales. And as a vicious circle, this less sales lead to fall in market share and BK's revenues. In US, a number of huge franchisees had to shut down their business as it went bankrupt. The reason was the bad image of BK and issues of performance of the brand. This was the worst situation faced by BK. They had to take some measures in order to raise their brand position.

In 2002, due to bad brand performance, owners of BK, Diageo, decided to sell BK to some large investor, who can take over as well as run it successfully. The new owners were the Texas Pacific Group (TPG), Bain Capital and Goldman Sachs Capital Partners, associates with L.P.

On 16th February 2006, owners officially announced of going public by filing its registration for "Initial Public Offering" with Securities and Exchange Commission, and on 18th May BK started trading on New York Stock Exchange with the symbol BKC. This first change drew them revenue of $425 million, the largest IPO of US based restaurant.

The new look of BKC forced the owners to change the marketing methods. The major stakeholders i.e. the "customers" had to be taken into consideration, in order to increase the sales.

For customers, rich advertising is the key factor, which helps the product to reach its consumers effectively. This strategy was followed by the new CEO of BKC, Bradley Blum. He handed over the charge of advertising to a popular ad-agency, CP + B (Crispin Porter + Bogusky). CP + B utilised this authority in full, by introducing new commercial adverts, campaigns for school going pupils. The first step they took was to introduce the "have it your way" slogan in a new style. For children they gave a new look to the "burger king", who is the character with a king's costume. Many videos and commercial adverts were launched where the character, with its comical moves, promotes various items of BKC. There was a unique sales promotion strategy introduced by CP + B, for uplift of BKC. There were series of Advegames for the "Xbox360". These unique styles of promotion for BKC was not only successful and sold around 2 million copies, but also lead to introduce another series of advergames named as "gears of wars". These ads and new products' launch helped BKC to come up with their sales and distribute dividend of $367 million.

Task 2.2.b

Analyse and evaluate how effective these systems are in involving people to bring change in your chosen organisation.

In the above task, we went through the major change that took place in BKC, of going public by issuing the IPO and then various measures taken to advertise and market BKC.

The method followed was one of the numerous methods undertaken by major firms for marketing as well as to implement changes.

Now, let us evaluate these systems to understand them in a better way. To make a change it is necessary for any organisation to conduct a "stakeholder analysis".

A Stakeholder Approach (Pitman, 1984) defines Stakeholder as "any group or individual who can affect or is affected by the achievements of the organisation's objectives" ""&HYPERLINK ""lr=HYPERLINK ""&HYPERLINK ""id=CxR5lUGjlLcCHYPERLINK ""&HYPERLINK ""oi=fndHYPERLINK ""&HYPERLINK ""pg=PA136HYPERLINK ""&HYPERLINK ""dq=definition+of+stakeholder+analysisHYPERLINK ""&HYPERLINK ""ots=b_MVL24mVHHYPERLINK ""&HYPERLINK ""sig=3SH_fxCojQVXkvbdkJvB2Vr-84A (cited on 15/10/09)

Stakeholders in an organisation can be as follows:-


Managing Directors





In the case of BKC, existing as well as potential customers were the stakeholders. To attract them marketing was done for various products of BKC, new product range was launched and marketed through huge advertisements, videos, advergames etc.

Taking a look on pre-change, BKC was not performing well in sales, which was affecting the brand name, and led to major franchisees' closures which were going bankrupt. So there were no sales, no huge investments and no way of expanding the business. These were the reasons which imposed a huge burden of clearing a large amount of debt, and the owners decided to sell BK to some rich company, who can help them out of this situation, which introduced TPG, Bain Capital and Goldman Sachs Capital Partners, the new owners. This was the first change. This change was followed by BKC going public, which was a major step, to have huge investments, potential investors, potential customers and bright future for BKC.

This decision by new CEO Brennemen was invited happily by some and some were not happy with it.

Some of the critics acclaimed that this decision would have helped BKC, if it had been taken years before, because all BKC's rivals were already public, Mc Donald's, and Wendy's. Critics were not sure about the success of BKC after going public. This is because; there are many pitfalls which are ignored by BKC. One of them is that, BKC has failed to keep good relations with its franchisees, in all terms, financially, professionally. This created a bad impression of BKC among the franchisees'.

Introduction of a new CEO created waves in the organisation as he undertook various plans to develop the employer-employees' relations, rising the working capital, introducing new products into the restaurants like Angus Steak Burger, Chicken Fries etc. these various measures helped BKC to earn a profit of $47 million in following 12 months, but BKC raked in $1.9 billion in revenues in last fiscal year.

Critics as well as figures speak about the lagging of BKC behind the competition with Mc Donald's and Wendy's. Burger rival McDonald's features its 1965 IPO, extrapolating from its $22.50 open: "A hundred shares of stock costing $2,250 dollars that day would have multiplied into 74,360 shares today, worth over $1.8 million on December 31, 2003." Wendy's also mentions its IPO, "with one million common shares sold at $28 per share on the NASDAQ exchange."

To wind up, the decision of BKC going public had major negative responses from the critics as they were far behind the world's most popular fast food chains like Mc Donald's and Wendy's, in spite of the fact that, they made profits by going public. The decision but was taken cleverly by the CEO, and plans chalked out was followed properly which helped BKC to lift up their image in the market by advertising and marketing strategies which worked for BKC.

Planning an actual change in the organisation

Develop and adapt appropriate models for change.


Plan the implementation process and outcomes.

This part includes task 2.3.a and 2.3.b, as they cannot be divided in to separate part as they are interlinked.


In the previous part we discussed and evaluated the Stakeholders and the need to bring changes in the organisation according to the stakeholders.

Now in this segment, an actual plan for the same organisation will be carried out with the use of different methods, models.

As specified earlier it is difficult to divide the plan in separate parts, so developing models and implementing the process are considered as one as a whole.

Model and Implementations

Burger king, the 2nd largest fast food chain after Mc Donald's, is improving continuously as an organisation, socially, with respect to popularity etc. Earlier these changes were not implemented in the correct manner, as there was "franchisee system". But now the organisation being public (NYSE - BKC), it is statutory to follow the law.

Burger King is around its 50's now, so it has developed so far by learning from its problems and various situations faced in all areas, it may be its marketing, HR, handling capital, allocation of resources etc.

Area in need of change.

The relation between an employer and its employees is popular. Burger King is no exception to this. From a personal experience I think there should be a change in the behaviour of the management towards the employees.

According to the stakeholder analysis I have I identified the problem area, where change is required. But according to the same analysis, this is not the first step. So here I am applying the "Process Re-engineering"

My next step is to explore who the related people (stakeholders) are? The answer is obviously the staff and the management.

In the first step i.e. mobilising of the "School Remodelling" model, I have identified the problem. Now being a manager I will try to explain this problem to the subordinates with proper reasons. I will explain them the need to resolve this problem, if the performance needs to be enhanced. I will also try and explain the possible achievements if the problem is solved. I will welcome the suggestions and plans to bring out the change.

Reasons for the change can be demonstrated in a diagrammatic method.

As a human being everyone likes to be praised for their performance. This can be identified one method of commencing the communication with the staff. Steps for building a mutual relation will be taken.

1st is to communicate in understandable language. Burger king is a cosmopolitan fast food chain which employs full/part timers, males/females, students from various countries. So the way of communicating should be appropriate.

2nd is to have control on the language as well as on anger, excitement, supervision etc. this is due to the human nature of disliking dominating behaviour. Explanation in friendly manner can bring good results.

3rd is to explain the mistakes commonly as well as individually. Of course not the same one. There should be discussions and explanation in common about the mistakes made commonly and an individual discussion if solely serious mistake is made.

4th can be suggested, if possible, to empower the employees with their responsibilities to handle their minor problems themselves.

5th is regarding special case of urgency i.e. in any major and/or serious problems, while communicating them to the subordinates/staff, managers/supervisors should try and explain the seriousness not by threatening the fellows, but in effective manner.

There are various threats which can become a new problem after following the some the measures like:-

Overconfidence: This can lead to incapability to fulfil the expectation from the seniors or from him/her self.

Over empowerment: This can create a problem among the staff and increase the conflicts between them.

Ineffective: possibility of things going in wrong direction and the plans become ineffective.

Equality: This can be a problem from the staff's side because if a fraction of power or an extra freedom is provided, they will take many things for granted, and lead to think of being equal to the manager.

After reading the problems which may be created after implementing some of the above measures, should not cease the implementation. This is because experimenting new things and implementing those in the existing environment is what is "bringing change in organisation".

After implementing some of the suggestions, few changes are bound to happen:-

Increase in mutual understanding. Understanding the problem of the each other will help to understand the scenario more clearly and will help to think and make decisions carefully. This will lead to fewer mistakes in taking decisions for the managers as well as the employees.

A better environment to work in. support and motivation from the seniors and managers to newly recruited employees will give a relax feeling as new employees create more mistakes because, in some cases they are not aware of the work and/or they work under pressure. Proper guidance in proper way will help them feel relax and create less mistakes and create confidence about them selves as well as respect for seniors and managers.

Low labour turnover i.e. the percentage or level of employees leaving the job will reduce. There are evidences in Burger King of employees leaving their jobs in less than a week after joining it, the reason of being uncomfortable with the staff and managers and supervisors and the work pressure as it is a fast food chain, employees have to be ready to serve orders in fast pace.

Reduction in cost due to low labour turnover. It is beneficial for the company as well as the employees.

High profits are the next to come by changing or fixing a problem.

Concluding the discussion, the above points can be summarised.

The problem identified was regarding the management and the employees about the improper behaviour towards the latter, which is rude, over dominating. This affects the employee mentally, emotionally where employees do not work up to the expectations and are complied to discontinue the job. Some measures are suggested with the possible threats which can crumble down the plan, but experimenting is always helpful to exploit new ideas and ways to develop. Along with the measures, threats, possible good results are also reported above, which may help to achieve higher goals personally as well as professionally. Professionally this will help in creating goodwill for the organisation, will also help in achieving high profits, achieve new standards in the corporate world, increase the efficiency, gain customers' as well as employees trust, confidence and many more achievements. Personal goals can be to develop communicating skills, developing the personality, sorting things them selves, taking decisions at the right time, creating new contacts and many more things can be achieved.