Social Capital Theory Essay

The social capital theory indicates the managerial procedure that facilitates both the sustainability and positive development of a structural network. There are a variety of progressions, which are significant in a corporation, which include coordination, education, and growth. Moreover, Coordination implies the incorporation of interior and exterior undertakings and equipment. Learning describes an active course that within the testing's empowers the organization to function well and to discover new invention or industry openings. Moreover, renovation signifies the capacity to identify the need to rebuild the company's asset construction, and to achieve the required inside and outside alteration. Further, the business itself is an intricate system of interior collaborations among the people, sectors, and working components that outline the foundation of its capacity to progress and execute its schemes, thus; the corporation is entrenched in an arrangement of ongoing network trade and non-commercial dealings, which both empower and restrains its functioning. Furthermore, the business connections with the dealers, competitors, and consumers develop structural systems that sustain the company's value profit (Jarvenpaa and Immonen, 2004).

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Besides, top management support is essential in creating a caring environment and delivering adequate resources. The encouragement of knowledge sharing by the management has a positive impact on the employees because it changes their opinion of the KS culture, for instance, employees trust is enhanced, there is the compliance of experts to help others, and the will to communicate the expertise. Moreover, the management builds a friendly atmosphere that appreciates the ideas and suggestions of the staffs, which enhances the productivity of an organization. The executives inspire team associates to work out problems together, thereby, offering them with the opportunity to reveal their skills that can be beneficial to others. Empowering gives value and increases capability and a feeling of autonomy between the faculty (Yiu and Law, 2012).

Furthermore, a resilient leadership is vital for the general achievement of the enterprise resource planning (ERP). The successful ERP enactments will have one or more senior heads directly involved in the connection and the safeguarding of the ERP systems. The leading manager has the potential to resolve conflicting wants in the distribution of resources for the ERP scheme and acts according to the responsibilities assigned. Too often, the high administration takes the responsibility of only delivering motivational assistance for those included in the execution of an ERP coordination. The ERP implementation that goes badly always does so due to lack of proper supervision. Further, for the ERP structure to be effectual, commitment must derive from group associates, administration, financial resources, ERP monetary suppliers, and computer assets. Lack of obligation in the ERP unit memberships is evident in most ERP applications. The team associates must be able to commit 60 to 100 percent of their moment to the ERP ventures to guarantee prompt and efficient employments (Leon, 2008).

Furthermore, the management can use the information concerning prospective consumers from the earlier phase to launch systems that can best overwhelm the customers' defiance to the ERP structure and to persuade as many handlers to embrace the ERP system. In the effort to transform the views of the consumers of ERP, first, the leaders employ the interaction approaches to enlighten the potential consumers of the advantages of the ERP scheme. Secondly, the supervision recommends an extensive explanation of how the implemented ERP structure operates since the ERP users are likely to be unwilling to accept the new method if they do not recognize how it functions. Thirdly, the leaders should explain the inputs and the outputs of the scheme, should settle on the departments that will offer the statistics, and describe the computer familiarity necessary to run the system (Aladwani, 2001). In conclusion, social capital theory plays a significant role in an organization; however, top management support is relevant for the realization of this theory in a company setting.

References

Aladwani, A. M. (2001). Change management strategies for successful ERP implementation. Business Process management journal, 7(3), 266-275.

Jarveven, E., & Immonen, S., (2004). Social capital and knowledge management of organization networks. Retrieved from https://warwick.ac.uk/fac/soc/wbs/conf/olkc/archieve/ok1c5/papers/1-4 jarvenpaa.pdf.Leon, A., (2008). ERP demystified (2nd ed.). West Patel Nagar. New Delhi

Yiu, M., & Law, R. (2012). Factors influencing knowledge sharing behavior: A social-psychological view in Tourism. Service Science, 3(2), 11-31.