As it is an open secret that Organization Behavior is a dynamic field with ever changing situations and scenarios. It enlightens the application of knowledge regarding how people, individuals, and groups act in organizations and how the better relationship can be built among them by achieving human, organization and society objectives. Every effort has been made to cover all the above mention areas of the organization.
In this assignment we will cover the Critical Success factors for successful performance of an organization, obstacles faced by an organization and the ways to overcome these problems. We will also refer the case study to accept or deny the major discussion regarding management effectiveness as it is the counter stone of successful organization performance.
Due to intense global competitive environment, management should be able to deal with challenges and problems faced by an organization so it is important to be familiar with the role of effective management to improve the organization efficiency and effectiveness. I have tried my best to analyze this topic and recommend some actions which can help it to cope up with current and dynamic situations and to make the organization's performance more effective.
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Table of Contents
Critical Success Factorsâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.06
Internal Factors to the Individualsâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.06
Skill and knowledgeâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.06
Internal Factors to the Organizationsâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.07
Clarity of roles and expectationsâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦..07
Coaching and reinforcementâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.07
Access to Informationâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦...07
Proof of clarity and innovative conceptsâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦...08
Challenges of today's Organizationâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦...09
Absence of group skillsâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦..09
Lack of motivation and moraleâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦..10
Power and policiesâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.11
General obstacles in organizationâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦..11
Empowered employees provide better products and servicesâ€¦â€¦â€¦â€¦â€¦..13
Empowered employees are committed and loyalâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦..13
Empowered employees are productiveâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.13
Empowered employees generate good ideasâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.13
Empowered employees spread the wordâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦...13
Effective dealing of problemsâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦14
Effective dealing of problemâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.14
Create an effective messageâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦..14
Listen to your employeeâ€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.15
All organizations have one or more competitors. Managers can not afford to ignore the competition. When they do they suffer. The way to deal with competitors is to highlight the key factors that are responsible for business success. One should know that what you can do better. What are those things in which you are best at? Once you have found those things you can compare it with those, at which your competitors are best.
Critical Success Factors
The success of organization depends on these factors. They can be defined as "the limited number of areas in which satisfactory result will ensure successful competitive performance for the individual or organization". These factors explain the process of succeeding in today's marketplace. They provide guidelines to highlight the strengths and weaknesses of the business and ensure its growth.
Following are the factors that are responsible for the success of organization
Internal factors to the individual
These are the factors that reside within individual. They refer to their capability needs.
Skill and Knowledge
This factor explains that if you have knowledge you can do the work well. There is a lot of difference between a skilled and un- killed person. The one who is skilled can perform more effectively. If one doesn't have any knowledge about the job he can't do anything good for the business. So skilled and the individuals with knowledge, also plays an important role in the success of any organization.
They refer to the capabilities which we have within us, and that make us different from others. These capabilities develop with the passage of time. It includes our previous education, work experiences, traits as well as attributes. It is therefore, more reasonable to select the most appropriate individuals with inherent capabilities, needed for the position.
Internal factors to the organization
Always on Time
Marked to Standard
These factors ensure performance. In case of their absence there might be obstacles in performance.
Clarity of roles and Expectations
Unclear role is an obstacle in organization's performance. Another problem is unclear expectations. High performance organizations have a clear understanding about their roles. They know what is expected from them. This means that one should know what are their responsibilities and how their responsibilities differ form others in the organization.
Coaching and Reinforcement
This factor explains that proper coaching support should be provided to individual that how they should perform their responsibilities to achieve organizational goals. Adequate practice should be provided. This factor also includes reinforcing the desired performance providing for the development of the business, when needed.
Incentives should be given in order to keep the individuals motivated. It can help and retain talented individuals who help the organization accomplish it goals. Incentives include different type of rewards and benefits both tangible and intangible. Financial bonus plans are tangible incentives whereas, opportunity to grow and learn are non financial incentives.
The environment in which individual performs is the work system. Work system of any organization is the most important factor as it can make individual's performance good or bad. If the system is bad and employee is good, in this case always the system wins. It is the system that matters and in which one has to work. One should control the work system to ensure that the organization work can be carried out efficiently and effectively.
Access to Information
People are expected to perform effectively in complex situations without any guidance. They can perform this ways only if current and accurate information is made available to them. They should have got access to the latest tools to perform their job.
Certainly, there are many barriers in organization that hinder the individual's performance towards organizational goals. These barriers should be identified and removed. Action plans should be made to overcome the barriers that would affect individual performance and they should be made as a part of organization's culture. When any obstacle exist manager must identify it and try to deal with it. He should coach others to deal with the problem and reduce its effects.
There are number of external factors of an environment that would affect the working of the organization. Some of these factors are controllable by the organization however; most of them are completely uncontrollable by the organization.
There are two main types of external factors of organization
External micro factors
External macro factors
External micro environment includes all those factors that are partially controllable by the organization e.g. suppliers, agents, transporter, distributors etc. On the other hand external macro factors include the factors that are completely beyond the individual's control e.g. political and legal factors, economical factors, technology, competitions etc. rather leaders may form strategies to reduce the affect of these external factors.
Proof of clarity and innovative concept
Every business needs leadership of innovation. The organization should have clear knowledge about the innovative concepts. They should know how to channel creativity into useful outcomes. When you talk about changing an organization to make it more creative, it means you want to stimulate and nurture innovation. Getting the innovative products involves both the inputs ant the transformation of those inputs. Inputs include creative people and groups within the organization. But having creative people is not enough. It takes the right environment for the innovation process to take hold and prosper as the inputs are transformed.
The organizations who have planned for risk can better handle the unforeseen problems. Taking risks doesn't have to be a gamble. Responsible risk taking can make outcomes more predictable. It's important to thoroughly evaluate the risk before committing to it, consider what you could lose or who might be hurt. How important are those things to you? Find out everything you can about what's involved with taking this risk. As with any decision involving risk, the more information you have available, the better able you are to assess the risk. Then, armed with this decision you can make a more informed decision. And even though you won't be able to eliminate all he negatives associated with taking the risk, you can at least know about them.
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Every team needs a leader who leads the members. The individual must be committed to the organization's mission and vision. Leaders must make a serious commitment to identifying what values, how that value can best be provided and how successful those efforts have been. The type of organization where all the efforts are focused on delivering superb customer value is not possible without a serious commitment on the part of the organization's leader. People should be committed to the one leading the organization. Organization that failed to achieve their desired goal is due to the reason that their members were not committed. All the level of leadership in the organization each person in the group must be committed to the vision and mission. The responsibility of team leader is to create an environment oriented to trust, open communication and cohesive thinking. It is his responsibility to make the team focus on the task at hand and communicate team status, task accomplishing and directions.
Goals should be specific, measurable, attainable, realistic and tangible. Without SMART goals the success of organization is almost impossible. You have to choose the specific goal because it has a much greater chance of being accomplished than a general goal. To set a specific goal one has to know who is involved, what you want to accomplish, where it should be accomplished, what are the requirements and constraints and what is the purpose of accomplishing the goal. One should establish concrete criteria for measuring the progress towards achieving the goal you set. And after identifying goals the next is to figure out how you would attain the goals. What are the ways to attain those goals? You can attain most any goal you set when you establish a time frame and plan your steps wisely. One should set the goal that is real there should be some objective for achieving that goal. And the goal should be accomplished within time.
Challenges of today's organization
Organizations have to face different challenges in this changing environment like
Absence of group skills
The most important this in any organization is to set skills that would enhance it effectiveness. Today's business environment keeps on changing and in this changing environment the one who is skilled would survive. It's the responsibility of manager to motivate others for positive change and would build the team that work according to the change. In this rapid changing environment its not easy for manager to prepare other members accepts the need for change. He helps them to understand the new techniques and methods. You may get lot of good ideas but the real thing is to translate those ideas into the accepted ways. The success of any change depends on the acceptance of the ways.
Lack of motivation and morale
To maximize motivation among employees, manager needs to think in terms of flexibility. He needs to recognize what motivate his employees. A diverse array of rewards in needed to motivate employees. Manager's most important goal is to help their employees developing their potential and they can do so by offering them developmental work assignments that provide a variety of learning experiences in different organizational areas. In 1980 Hackman point out the core dimensions of the job which include skill variety, task identity, task significance, autonomy, and feedback
A job requires a variety of activities so that an employee could use a number of different skills and talents. It requires completion of whole and identifiable piece of work and it has substantial impact on the lives or work of other people. If these things exist in a job then the person will view his or her job as being important, valuable, and worthwhile. Job that possess autonomy give the job incumbent a feeling of personal responsibility for the results, and that if a job provides feedback, the employee will know how effectively he or she is performing. From a motivational point of view, these core dimensions suggests that internal rewards are obtained when an employee learns that he or she personally has performed well on a task that he or she cares about. The more these conditions characterize a job, the grater the employee's motivation, performance and satisfaction and the lower his or her absenteeism and likelihood or resigning. Individual with a high growth need are more likely to experience the critical psychological states and respond positively when their jobs include the core dimensions than are low growth need individuals.
In an organization sometimes conflict arises among members. This conflict is not always bad sometimes it's good because, with conflict the team member would get more information, they can deeply understand the problems and would give the most appropriate solutions as well. In the era of globalization teams identify conflicts and made the successful strategic decision without sacrificing the speed of task accomplishment. But most times conflict results in slowing down the task accomplishment speed and it would reduce the effectiveness of adopted strategy. One should identify what are main reasons of conflict? Few of them are personal differences with respect to perception and expectations, lack of information, uncertainty about roles.
Following are few points that help to overcome conflict
Always work with plenty of information.
Facts should be mainly focused.
Multiple alternatives should be developed.
Everyone should have same goal.
Inject humor into decision making process.
Solve problems without forcing consensus.
Maintain balanced power structure.
Power and politics
Power is the ability to control the environment. If the person has power he can decide and act. If an employee is empowered he can act without any directions. Sometimes empowerment becomes very much important for the organization. In any organization, where employees are empowered they are responsible for observing one another, correcting improper procedures. Managers are increasingly leading by empowering their employees. It involves increasing decision making discretion of employees. Millions of employees are making the key operating decisions that directly affect their work. They are engaged in activities that until very recently were viewed exclusively as a part of manager's job. The reason why more companies empowering employees is the need for quick decisions by those people who are most knowledgeable about the issues. If organizations are to successfully compete in a dynamic global economy, they have to be able to make decisions and implement changes quickly. In order to cope with increased work demands managers has to empower their people. When employees have the skills, knowledge and experiences to do their jobs competently and when they seek autonomy and possess internal locus of control, it can be beneficial.
Organizations are changing due to change in internal and external environment. In order to adjust to these changes organization has to be flexible.
Another issue faced by the organization is coordinating work efforts of diverse organizational members in accomplishing organizational goals. Today's organization are characterized by diverse workforce i.e. more heterogeneous in terms of gender, race, ethnicity, age and other characteristics that reflect differences. Organizations will require larger workforce to meet the demand of high potential market. Employees don't set aside their cultural values and lifestyle preferences when they come to work. The challenge for managers, therefore, is to make their organization more accommodating to diverse groups of people by addressing different lifestyles, family needs, and work styles. Smart managers recognize that diversity can be an asset because it brings a broad range of viewpoints and problem solving skills to a company, and additionally helps organizations better understand a diverse customer base.
Management is no longer constrained by national borders. There is significant importance from globalization, and the world has definitely become the global village. Managers in organization of all sizes and types around the world have to confront the challenges of operating in the global market. Managers face challenges due to an array of environmental factor while doing business. He must effectively plan, organize, lead, control and manage cultural difference to be globally successfully.
General obstacles in an organization
Organization needs a wide variety of skills but sometimes it happens that the organization got skills but still it won't work as it supposed to. In many cases management is not sensitive to change. They are not creative enough to put the skills of employees at the best use. Lack of vision is one of the main obstacles that prevents organization to use its resource to the full. One should have the ability to identify the problems and find solutions. If the manager doesn't have the ability to identify the opportunities to success then this would be a barrier to growth. If the management is not able to identify the creative solutions then it will be a problem for the organization in the long run. Another problem that hinders the organizational growth is that not all members are able to cope with the changing environment. Every organization has certain norms and values and its members have to follow those norms and values. All members should be sensitive to change if the business is continuously changing every member should accommodate according to that change.
Organization is facing various threat and challenges. It has to be responsive to the threats and challenges within internal and external organization. The basic objective of any organization is to sell generated products or services to their clients. It doesn't matter whether they have to lower the cost or focus on the best quality, one of the important assets to optimize productivity is, best people of organization. It is important for the organization to be competitive irrespective of the economic conditions so it requires the effective management. Because it would help in increasing the effectiveness and efficiency of the organization will provide strong financial return.
Effective Management is about:
Filling vacant positions with the knowledgeable and productive candidates.
To increase productivity, high potentials should be promoted.
To increase the efficiency of staff in their current role develop the staff.
Retain the best employees to increase performance consistently.
Employee empowerment is very much popular term now, it is important for the development and change of any organization. Empowering employees leads to the best results for the organization. Professional generally agrees that empowering employees will increase the productivity of organization and employees are committed and loyal to the organization.
Empowered employees provide better products and services
When employee is empowered he feels strong and becomes more confident. This confidence then leads to better products and services. For the development of organization and cope up with the changing nature of programs empowerment is critical. This would improve the performance and employees would take ownership of their jobs and the delivery of products and services to their clients. They serve customers at the level of organization where the customer interface exists.
Empowered employees are committed and loyal
Whatever the situation is, employers don't like high employee turnover, selection, and training is very expensive. During organizational change if employee empowered become the foundation of organizational development activities this would ensure the commitment and loyalty of employees. Empowered employees take pride and ownership in their jobs when they know that they can exercise independent judgment when needed.
Empowered employees are productive
When employees feel that they are valued and their decision are considered and management would listen to their ideas, they work harder to prove themselves right. Implementing organizational development program calls for incorporating ways to help employees. And this would increase productivity.
Empowered employees generate good ideas
Every employee got some ideas with himself. They might have different skills. If they are empowered they share their ideas and this can provide important insight into management development and change management decisions. They can generate different products by using innovative methods on regular basis. Organizations who really are interested in effective organizational development and change programs, they acknowledge and reward their employees and give feedback on regular basis.
Empowered employees spread the word
Employees pride would boost if they are empowered in organizational development and change program. The more empowered employees the more they are satisfied and they would more likely to spread the word how well the company is to others. We will further discuss this statement further by Barclays and Lehman Brothers Integration.
Barclays and Lehman Brothers Integration:
Barclays the global financial services provider acquired the US Lehman Brothers in 2008 for the enhancement of its market. The critical issues occurred while the integration was
the business disruption
minimizing the clients transfer to other banks
Different culture of both the businesses
Motivation of the staff of Lehman brothers
Effective dealing of problems
The first step to solve the problem is to identify the cause of problem. Sometimes problem can be solved by simple talking with employees such as minor attitude problems or occasional tardiness etc. In coaching manager has to deal one by one with the problem or he direct other employee to work with the employee to solve the issue between the two. It is the responsibility of leader to provide employee with feedback in order to improve their performance. Coaching requires time and patience and this will result in employees modified behavior.
Sometimes employee has skills but still he doesn't perform well. This is may be because he is disturbed or unsystematic or careless. These habits can be removed through proper guidance. But, if lack of skill is the reason of poor performance than this can be corrected through additional training.
Sometimes it so happens that the reason of employee's poor performance is that they didn't get the job according to their skills. Their skills are not compatible or are not compatible with the task assigned to them. This problem can be solved through additional training or assigning them a different task.
Whenever you notice that employee has made some mistakes, point out those mistakes and monitor their work closely. It still they made mistake, talk to them and try to know the reason of being careless or why they are not doing their work or properly. But in all this one has to be positive and should know that how much important is employee to the company.
Create an effective message
Consider the needs of everyone in the organization and design your message according to that so they can understand what you are trying to say. The performance of employees is very much dependent on your message. An effective message would have good impact over employee's performance. A face to face interaction would be more suitable and can help employees to adapt the change.
Listen to your employees
For the change management employee feedback is very important. You can encourage your employees to provide feedback through email or the intranet. Communication is the foundation stone to successful management of change. You need to communicate with your employees early and often to make them understand your message.
Being a manager one must know their strengths and weaknesses and also the people around you. One must know what are their objectives? And what is the plan to achieve them. One must build a team that would help you to achieve those objectives. You must help each team member so that they can get their best and would able to attain the common goal.