The Challenges Faced By An Organisation Business Essay
Organization is a place where number of people work with each other to achieved a mutual Goal and Management is interested in an organization mainly from an instrumental point of view. For a company, organization is a means to an end to achieve its goals, which are to create value for its stakeholders (stockholders, employees, customers, suppliers, community).
Therefore Management behaviour can be describe in terms of structure & Culture
In which the relationship between management structure and culture and its effect on business performance should be analyze very carefully to sustain the Organization growth and its development.
Now for improving organizations overall effectiveness is a constant key objective for all executives so that organization will benefit significantly - through:
-Faster decision making
-Less internal conflict
Organizational effectiveness stems from the organization being able to do the things it
Needs to do with minimum use of resource. In fact “not doing things that don’t need to
be done” is perhaps the single biggest contribution to becoming truly effective. Making
Tasks simpler so there is less work, avoiding mistakes so that there is no rework, quality
systems to get things done consistently, training to enable a task to be done quicker are
However, the organisation doesn’t become more effective spontaneously. It requires
time, effort, knowhow and will. Individuals, particularly those with management
responsibilities need to have the skills and competencies to analyse what is going on, to
propose solutions to problems, and implement the changes in the workplace and to
have the confidence that consistent long-term improvement is what will make the
If the gains in effectiveness are not to be eroded the whole process needs to be set in a
culture of continuous improvement so that each improvement builds on its predecessors
and is not lost just as easily as it was gained through apathy or through attention shifting
Refer to the case study of Barclays banks when there is an acquisition with Lehman Brothers in September 2008 Barclays had to face number of hurdles and problems to overcome Organizational Behavior of the Lehman Brother but without an effective measures and decision making it would not be organized and successful acquisition so to understand the important part of Management theories for Organizational Behavior we have to understand effective management behavior that grouped into 6 management qualities.
Values new Ideas:
Effective Management can be through when we give importance and respect to new ideas present by the employees and give them rewards for this and let the employee try new, potentially better methods for an organizational growth.
Value’s Other’s View:
This includes Involve sub ordinates in important decisions, take time to listen and understand, provides feedback when subordinates shares ideas
Appreciate Differences among others:
Recognizes that individuals’ needs and abilities differ, Values the experiences and perspectives of people from diverse backgrounds
4) Takes Action to Solve Problems and Conflicts
Takes steps to improve bad relationships, Takes action to resolve interpersonal conflicts, Finds win/win solutions, Learns from his/her mistakes, Sorts essential from unimportant information
5) Communicates Expectations
Communicates what he/she expects to be accomplished, Provides understandable performance data
Maintains consistency between words and actions, Models the behavior he/she expects from others, Recruits and promotes fairly regardless of race, gender, sexual orientation, or age
The above mentioned 6 qualities are used to make an Organization effective.
In case of Barclays Acquisition they started to implement this technique to boost the employee performance and to make them believe that they are still very attached with the organization and have a same respect as it was in Lehman Brothers.
Barclays find out number of key organizational behavior issues with the acquisition like Integration, Organizational Culture of Both Barclays and Lehman’s and Motivation.
EXAMPLE REATED TO EFFECTIVE MANAGEMENT
U. S. Network Appliance Inc. (NetApp), founded in 1992, has been an industry leader in networked storage solutions. Since its inception, the founder of NetApp great importance for the development of a healthy work environment and friendly staff the company. Emphasis was placed on trust and integrity, team spirit and ambition to reach higher goals. The company had a policy of openness, flexible working hours and offer a host of other benefits for their employees. The company is employee-friendly policies have been recognized by leading magazines as one of the best places to work. For the year 2009, NetApp ranked first in the list of "100 Best Companies to Work For" by Fortune magazine.
In January 2009 ranked U. S. Network Appliance Inc. (NetApp), a leading solution for network storage company, No. 1 on the list of "100 Best Companies to Work For, Fortune magazine had" 4. The position of the company significantly the 14 th in 2008 (see annex I for a list of 15 of the 100 Best Companies to Work For in 2009) improved. The list was compiled by Great Place to (TMP) for work on behalf Institute5 Fortune magazine. According to GPW "NetApp is a serious matter. Serious about customer service to compete seriously with serious and that a large work area. In 2009, NetApp # 1 Best Company to Work for in America is
was established after investigations GPW, the 528 companies with new jobs in 2008, replacing an increase of around 12% 0.7 With this, NetApp INC8 Google, which held the title for two consecutive years 2007 and 2008.
Occasionally, Dan Warmenhoven, CEO of NetApp, "We are delighted and honored to be in the top of the prestigious list of Fortune.
Our employees are the heart of our society and the strength of our global culture. values of the culture that teamwork, productivity, leadership and innovation
We help clients create more discoveries to retain the best talent and deliver superior returns for our shareholders. I am very proud of what we have achieved - and what the value of our employees every day: a shared workspace successfully
NetApp personnel policies on the welfare of employees. Policies on the development of healthy and motivated employees. AfterGwen McDonald (McDonald), Vice-president, Human Resources,NetApp, "We are clear that our people are our cornerstone of our success is actually taught by our leaders, both in terms of what we say and do.. ...
NetApp Management believes that customers who do business with the value proposition of the company's corporate culture is measured. When the culture was strong enough that customers would be attracted to be inclined to establish business relations with the company of others. Emphasizes this fact, NetApp staff about the unique culture of the educated workforce. NetApp staffs have always been motivated by the words of appreciation and were aware that they were valued in society. There were several awards and recognition programs structured to recognize the contributions of personnel in various areas. Among them was the share of rewards program, which involves an incentive program to encourage employees to share their knowledge.
It is now clear that the importance of an effective organization. Say, if an organization is effective is not certain to survive in this era of competition, losing to determine the reason. Therefore, the organization ineffective.
Such an organization will be termed as effective organization as its members do not work for organization's goals. The behavioral approach establishes a direct relationship between integration of organizational and individual goals and organizational effectiveness. It should, however, be noted that organizational effectiveness is not the result only of integration of two goals, rather are a lot of other variables affecting it. But still we can say, that as human factor is one of them important and the only active factor integrating other factors in the organization. This analysis holds good from management of organization point of view.
For example in an organization where number of employees compete with each other not in positive manners his could affect directly to the organization as if individuals are not align in a proper positive direction then the organization will definitely face a great Obstacles,
Now to manage all this things we understand that human factor is one of the most important and viable factor to see within an organization and should be managed properly,
As in the case study of Barclays we discussed in the class we have seen that how employees were managed because of their importance in their organization and to retain them and to make them happier how Barclays made strategies to cope up that situation of successful integration.
So we have to closely analyze that what factors affect organizational effectiveness.
OBSTACLES / FACTORS AFFECTING ORGANISATIONAL EFFECTIVENESS AND ITS PERFORMANCE:
This is a very important and difficult task for the manager, who is analyzing the organization, is to identify the factors underlying organizational effectiveness. The major set of factors or variables that potentially have their influence on effectiveness are:
1. Organizational characteristics
2. Environmental characteristics
3. Employee characteristics
4. Managerial policies and practices.
For example Barclays acquisition with Lehman brother would have definitely affect organization as above factors affect a lot as both companies have different Organizational Characteristic, Environmental characteristics, Employee characteristics and also Managerial policies and practices.
Organizational characteristics which affect the effectiveness are of two types:
1. Organizational structure and
Organizational structure influences the effectiveness in the following ways:
Structure in terms of functional specialization, size centralization of decision making and even formalization is likely to increase productivity and efficiency. Job satisfaction of the employees is also related to the organizational structure, equitable division of work and delegation or authority and responsibility and proper direction are likely to generate the feeling of satisfaction among people at work.
Technology and organizational structure are interrelated. The type of technology determines the nature and structure of Organization, Change of technology will require a lot of changes in the organization in the form of:
a. Change in operation e.g. from labor-intensive to capital intensive
b. Shifting of employees to either different departments within the same factory or to some other factory of the organization.
c. Change in span of control
d. Creating of new and winding up of the few departments.
e. Change in them materials which are used
f. Retraining and provision of more knowledge about the latest technology to the workers. If the organization fails to change the structure according to needs of technology, it will never prove to be effective. needs of technology and it will never prove to be effective.
Environmental Characteristic Management should have experts who will suggest adjustments which are to be made in the organizational set up to comply with environmental changes.
1. External environment
2. Internal environment
Human factor is the most important factor which influences the goal achievement of organizations. If there is a close integration among the individual and organizational goals, the organizational will be highly effective as explained in the behavioral approach to the effectiveness. If the organization, without compromising with its fundamental programmers and policies, could readjust to accommodate legitimate aspirations of the employees, In employees, it should do so the achieve effectiveness. In case there is a conflict between the individual and the group goals and the issued relate to the very existence of the organization, the organization will have to take a firm stand to deal with the situation. To help in achieving the effectiveness of the organization, the employees the effectiveness of the organization, the employees should have the following characteristics:
a. They should be attracted towards and satisfied with the organization.
b. They should be committed to the organization.
c. Their motives, goals and needs should not be in conflict with the organizational goals. d. The employees should be able and knowledgeable.
e. They should have their role clarity.
f. The job turnover should be very low, if any.
EFFECTIVENESS THROUGH ADAPTIVE COPING STYLE AND HOW THESE OBSTACLES OVERCOME:
1. Sensing of Change. The first basic stage in the cycle is the sensing of change in some part of the internal and external environment. Failure to perceive changes in the environment or incorrectly perceiving the changes is the major factor for the failure of the organization to cope with environment. The organizations should have effective Management Information System for effectively coping with the environment.
2. The second stage in the cycle is the import of relevant information about the change into those parts of the organization that can act upon it. However, it is very difficult to decide which imputes are to be taken from the environment and organizations often fail to perceive the relevant inputs, particularly the information.
3. Changing Conversation Process. Inputs are taken by the organization from the environment for further processing, this is known as the conversion process. The conversion process should be modified according to environmental requirements as indicated by the information.
4. Stabilizing Internal Changes. The fourth stage of the cycle is to stabilize the internal changes while taking care of undesired changes in related systems which have resulted from the desired changes. This is necessary because each sub system in the organization is dependent upon others and change in one may affect others but this effect may be positive or negative.
5. Exporting New Outputs. When the internal change is established, the organization becomes in a position to export new outputs which are in accordance with the environmental requirements. Some different and additional attempts may be required for exporting the new outputs. If the organization fails to adopt the new methods, it may become ineffective..
6. Obtaining Feedback. The last stage in the cycle is the obtaining of feedback on the outcome of the changes for further sensing of the state of the external environment and the degree of integration of the internal environment. This stage is very much related with the first stage because process of sensing may be the same. Failure at any of these stages may result into ineffectiveness. A successful coping suggests that all of the stages must be successfully negotiated. Following are the major organizational conditions for effective coping:
1. The Organization must have a proper communication system through which reliable and valid information may be passed.
2. Enough internal flexibility should be there so that changes can be brought absorbed by the organization.
3. Successful coping requires integration and commitment to the organizational goals which provides willingness for change. There should be supportive internal climate which can support good communication, reduction in inflexibility and stimulation of self protection.
The Most important factor that likely to determine the successful performance of work organizations is Organizational Culture
There are four steps in the integration of organizational cultures in international expansions that result from mergers or acquisition
The two groups have to establish the purpose, goal, and focus of their merger
They have to develop mechanisms to identify the most important organizational structures and management roles
They have to determine who has authority over the resources needed for getting things done
They have to identify the expectations of all involved parties and facilitate communication between both departments and individuals in the structure
Three aspects of organizational functioning that are important in determining MNC organizational culture
The general relationship between the employees and their organization
The hierarchical system of authority that defines the roles of managers and subordinates
The general views that employees hold about the MNC’s purpose, destiny, goals, and their places in them.
Guideline to Overcome such diversity i.e. Culture in an organization
Select team members for their task-related abilities
Team members must recognize and be prepared to deal with their differences
Team leader must help the group to identify and define its overall goal
Members must have equal power so that everyone can participate in the process
All members must have mutual respect for each other.
Managers must give teams positive feedback on their process and output
Example related to Cultural Environment:
The company plays an important role in the success of the organization. A corporate culture helps to attract the best talent in the industry. The case describes the corporate culture of Google Inc. Google is one of the few companies that have successfully blended technological innovation with a strong corporate culture
The case provides insight into the work environment, and recruitment process at Google. The case also provides insight into how Google fostered innovation among employees. The case ends with a critique of Google's organizational culture
Google Inc. (Google) is considered one of the most successful Internet start-ups. In 2003, favorite search engines in the world was for their accuracy and speed in obtaining results. Apart from the technological advantage over its competitors, Google is successful because of its ability to attract and retain the best talents of these employees. And the process was possible thanks to Google's corporate culture. During the Internet bubble in late 1990, Google was the only company that does not suffer wear, while the experience of other employees of large tech companies had sales of 20-25%
Google's corporate culture is legendary in Silicon Valley. Googlehas been a symbol of successful Internet companies. For many, the successful combination of company culture and technology in Silicon Valley.
It is estimated that Google has succeeded because it had removed the unnecessary bureaucracy and hierarchy gave its engineers to work hands free. But not everyone in the culture of Google was impressed. Some think that Google could not complete support their growth with the current culture.
It is believed that Google had exceeded its informal culture, and it would be informal, from now on, the confusion among employees and customers. In addition, Google also crucial for their establishment and the lack of unity of command at the highest level.
Google founders Larry Page (Larry) and Sergey Bring (Sergio) graduated in computer science from Stanford in 1995. In January 1996, the work of Larry and Sergey in their project aims to extend the summer through a search engine.
They wanted a technology that has provided the necessary information from the enormous amount of data available on the Internet to grow "because of its ability to identify and analyze" the links in its search engine "Back Backrub" which refers to a site particular.
Backrub in 1997 had received great popularity due to its unique approach to solving the problems of Internet research. During the first half of 1998, Larry and Sergey were focused on perfecting his technique.
To store large amounts of data, they bought a terabyte of disk storage (a billion bytes is a terabyte) at bargain prices.
Larry dormitory use data Center while Sergey room via an office. So far, they knew your search technology best available technology and other. They began an active participation with potential partners in the Technology Licensing YourSearch Engine Research technology.
Larry and Sergey contact lots of people plus friends and family. One of the people they got in contact with was David File , the creator of Yahoo, a leading portal2. File complimented them for the 'solid equipment they had build, although did not come into any contract among them. Instead, he motivate them to set up their own company
After collecting another $ 1 million from family and friends, the office of Larry and Sergey, 7 opened in September 1998. California office was in the garage of a friend's house in Menlo Park. The name of Google, but by an accident, said the company's mission and organize the data available on the Internet most of the selected type. The site is set www.google.com and operation of the duo their first employee - Stanford colleague Craig Silverstein (Silverstein), later chief technology officer of Google.
Google has an informal work culture in the (home) Googolplex. Both Larry and Sergey wanted to make Google a great place to work. Because of their faith, the Googolplex, decorated with lava lamps and painted in bright colors of the Google logo (Refer Figure I for Google Logo).
Google’s have been allowed to bring pets in the workplace, and were willing even with snacks, lunch and dinner by a famous chef Charlie Ayers. The room was Googolplex Google snack cereals, gummy bears, cashew nuts and other snacks and fruit juices, soft drinks and cappuccino
Sergey and Larry have also focused on hiring people with good humor. They have been personally involved in hiring. To attract major change in Google Top Ten Reasons to Google on its website (Refer Table II).
Google has hired people with different abilities and characteristics (see Table III).When hiring, Google for its academic excellence, as in the class of SAT test scores and other graduates were needed. For an interview call from Google, a person must be a first class university .Google management should also encourage innovation and creativity in the workplace. Clear that to maintain growth, the company had come up with new products and features. However, the company had problems, these ideas are translated into successful products, knock. Silverstein said: "We've always had good ideas, but we had no good way to express or catch them." To resolve the problem, Google implemented an internal web site to pursue new ideas...
Many analysts believe that fluctuations in Google's zero percent during the dotcom boom, the evidence from tissue culture. But not everyone was convinced that Google was entitled to its work culture. They found that the company was to manage growth. A 12-hour day became the norm in the industry. Google's hiring process has been criticized by analysts.
It was noted that Google is too narrow in its approach; it is displayed in the stands and graduate certificates of the candidates instead of experience. Commenting on the hiring process, said a Google, "If you're already at Cisco for 20 years, who do not." But the government defended the contracting process say they have intelligence and reason more valuable than experience.
Performance of the Organization can be sometimes seems to be very easy but actually it is not the case. So most of the important thing in any organization is to look for is Manpower Humanreource and the environment in which all the employees are working both internally and externally both have to analyze with an close eye to take any advancement in any decision making in an organization
The changing nature of modern work organizations and attempt to challenge and criticize the validity of this statement.
Yes, As now the Modern work environment changes a lot due to Global attraction and as the whole world is becoming a global village now one which is more effective organization will survive.
In this era Mergers Acquisition, Technology Advancement, Outsourcing, Modern HR like Rewards, Incentive, Retention, Training and Development took place a far more level just take an any example in developed or developing nation these practices are very common especially in Banking Industries examples like Barclays and Lehman and for Technology now a day’s SAP is used every Organization to integrate all his regions, Departments, Supply Chain & Customers now these practices are also common in developing nation like Pakistan, India, Bangladesh etc.
Major Merger & Acquisition
Top 10 Merger & Acquisition deals globally by value (in mil. USD) from 1990 to 1999:
Vodafone Air touch PLC
Air Touch Communications
Top 10 M&A deals worldwide by value (in mil. USD) from 2000 to 2009:
Fusion: America Online Inc. (AOL)
Glico Welcome Plc.
SmithKline Beecham Plc.
Royal Dutch Petroleum Co.
Shell Transport &Trading Co
ATHYPERLINK "http://en.wikipedia.org/wiki/AT&T"&HYPERLINK "http://en.wikipedia.org/wiki/AT&T"T Inc
ATHYPERLINK "http://en.wikipedia.org/wiki/AT&T"&HYPERLINK "http://en.wikipedia.org/wiki/AT&T"T Broadband &Internet Sacs
Spin-off: Nortel Networks Corporation
JP Morgan Chase &Co
Banc One Corp
Anheuser-Busch Companies, Inc
As shown in the above table it is clearly indicated the facts that the number of M&A are increasing day by day so the organization who handle his Human resource well can lead in this race.
Defining MWO (Modern Work Organization)
Definitions of MWO usually need to be understood against its presumed antidote, i.e.
the “scientific management” principles associated with the names of Frederick
Winslow Taylor and Henry Ford. Using the categorization of Atkinson (1984), MWO is
related to functional flexibility, rather than numerical or wage flexibility. Other terms
which have been in use to describe the phenomenon include “High Performance
Work Organisation” and “High-Involvement management” (cp. Besant 2003). Attila
and Ylöstalo (2002; 2005), in their research on Finland, talk about “pro-active
workplaces”, key characteristics of which are that workers have increased
possibilities to exert influence, and at the same time increased responsibility.
A pro-active work organisation is simultaneously (a) able to implement new
workplace practices within operational activities (for example semi-autonomous
teams); (b) able to coordinate work across organisation (for example flat organisation
or interaction) and (c) it has an active HRM policy as support and assistance (for
example training). This is illustrated diagrammatically in Figure 1 (from BDL 2002).
Systematic approach towards Modern Organization:
Systematic approach is very useful for this modern era to make an organization effective make the work which is really want to be in the systematic manner. The Following are the systematic approaches which are used to be modern organization.
-Way work is coordinated across the organisation
-Way work is organized within operational activities
-Supporting Human Resource Policies
-Semi-autonomous work teams
-Investment in training
-Multi-skilling through Job Rotation
Decentral organisational structures:
Flat hierarchies and decentralization of decision-making (reduction of the number of management layers; fewer different functions, i.e. job enlargement; improved flow of information between shop floor and management); Semi-autonomous work teams; Process focus; Direct cooperation links with stakeholders (customers, business partners, public authorities, R&D units etc.) at every hierarchic level;
Corporate cultures which focus on people and learning:
Systematic approach to skill acquisition (lifelong learning) with a focus on widening skills rather than simply adapting skills to changing functional requirements; Strong focus on soft skills such as communication skills, team-working, conflict management etc.; Wide participation in training, also involving less qualified members of staff;
Innovative performance measurement & reward schemes: Management by objectives (for teams and individuals); Financial and non-financial performance measures; Performance-related remuneration. While each of these components have been extensively dealt with in the management literature, evidence suggests that they provide the biggest benefit to companies if deployed in a systematic approach
Impact on Workers:
While decentralization of control is generally praised as an ideal means to achieve greater labor flexibility as well as higher motivation and (following from that) higher
productivity, there are also risks involved. It is certain that increasing responsibility
and self-control at all hierarchical levels tends to increase the work pressure as
perceived by employees (Voß 1998, Gottschall & Voß 2005; Cullen et al. 2003). In
particular, modern work organisation appears to be associated with high work
intensity and stress (Boisard 2002, Houtman 2005), which themselves tend to
increase the likelihood of health problems such as the widespread cumulative trauma
disorders (Brenner et al. 2004; see also Askenazy 2001; Houtman 2005).
The literature (see Richter et al. 2006: 233) distinguishes between mental workload
(“external factors impinging upon a human being”) and stress. Mental workload only
leads to stress if individuals feel that their abilities are insufficient for the
requirements and expectations placed upon them: “An event is likely to cause stress
if a person perceives it as important with respect to his/her goals, while at the same
time it exceeds his/her capability” (Richter et al. 2006: 234; cp. Houtman 2005). On
the other hand, it is clear that there has to be some degree of mental strain (or
“creative tension”) in order for the job to produce good results and for the worker to
feel motivated by it.
Corporate Cultures Which Focus on People and Learning:
Individual and collective learning belong to the most important conditions for enhancing the innovative capacity of organizations. As such, they are vital for the competitiveness of companies as well as for the employability and workability of individual employees. Learning takes place in a variety of ways, stretching from formalized learning courses and workshops to incidental and experiential learning processes, which are part of all human activity. In recent years, a number of authors (e.g. Tome 2006) have suggested that it is the latter (incidental or experiential learning) which is the most important way in which people acquire skills they actually need in daily working life. Informal encounters, learning-by-doing and learning-by-emulation are all key processed for knowledge transfer within organizations.
While timework researchers have been quick to point out that remote workers must have the chance to participate in all structured learning activities offered by the employer (e.g. training courses, workshops), it appears that it is lack of informal and incidental learning which poses most problems to home-based steelworkers. Indeed, permanent or near-permanent home-based work was found to have considerable negative effects resulting from lack of access to social resources.
Innovative Performance Measurement & Reward Schemes:
In spite of the fact that performance-related pay systems have been discussed within
the framework of NWO for many years already, it is still unclear whether they can
actually support business performance and/or perceptions of job quality. A met analysis conducted by Coldly et al. (2003), which reviewed “all adequately designed
field and laboratory research on the use of incentives to motivate performance” (45
studies altogether), found that team-directed incentives had a considerably stronger
effect on performance compared to individually-directed incentives. With regard to
the cognitive psychological principle which underlies the effect of incentives,
empirical research by Flood et al. (2001) stresses the importance, in particular, of
perceptions of meritocracy and equity: Especially for knowledge workers, meritocracy
– i.e. the degree to which employees perceive that their rewards in terms of
remuneration and career advancement are based on merit rather than other
principles, such as nepotism or seniority – appears to be a vital condition for the
psychological contract between worker and employer. Against such evidence, we
can conclude that performance-related remuneration is likely to improve performance
only if it is regarded by employees as being a valid reflection of merit. This means
that a culture of trust is required to make these systems work.
As Now this is a Modern Era it is very important to keep align & monitor all the resources that organization have and use effectively and efficiently to survive in this competitive world.
Organizational effectiveness is no different with organizational issues often adding unique complications to mix during the communication process.
Some forms of Modern Organization Work give workers more say in exchange for greater responsibility, and these are likely to benefit knowledge workers as well as their
Employers because of their effect on motivation. However, there is no causal link
Between Work and job autonomy. Among workers in modern work era , The concept of pro-active work (Modern Work Organization) can be usefully applied to focus on the core human resources related elements which decide about a company’s ability to achieve lasting competitiveness in the knowledge-based economy, and what these imply for extent to which workers are likely to benefit or suffer from the implementation of any new things in an organization.
In addition, within the sanctions of globalize organization, it can be that the, HRM , Decision Making and overall Effective Management force to be acting as control system that ensure acculturation of such business & amiably directs their performance towards improved accomplishment of an ideal organizational operation and business objectives (Cited from, Eneroth and Larsson, 1996).
Management is the Cornerstone of any Organization if all the Internal and External Environment, Innovations, Technological change, Integration, Organizational Culture, Analysis of upcoming events (Pro Active Approach), integrating with all the departments of Organization are well managed & aligned with the Organizational Goal/task then it will lead to any Organization towards success.
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