Outside Environment of an Organization - Assignment Example

As much as physical capital is important to an organization, intellectual capital carries the same weight in organization performance. The knowledge and skills held by the employee matter most in firm productivity. The employees need to work with each other as well as the physical capital to bring out output hence productivity. Without employee input, there will be no results. It is, therefore, necessary for the employees to have the necessary skills and knowledge.

According to Organizational Learning Perspective, gone are the days when the physical capacity determined the organization's ability to achieve its goals. In this model, knowledge and skills are the major gradients that can help an organization achieve its goals. One classic case is how Google Company managed to be a top performer by hiring talents, skills, and knowledge in the employees. Additionally, the intellectual capacity model states that the knowledge held by the employees helps in the running of the organization. The employee coordinates activities within an organization. It is, therefore, the knowledge held by the skilled labor that helps move things around. If the employees leave, then they leave with such knowledge and can affect the company performance.

Corporate social responsibility is trending in the business world today. A company becomes more competitive if it engages in CSR and hence the need for any organization to implement these policies. Nevertheless, the conflict between company CSR and stakeholders cannot be ruled out. If the leaders pay attention more to the stakeholders, they may forget to take care of CSR which plays an integral role in productivity putting an organization a risk.

“Shock events” are common phenomena in the workplace. The situation arises due to a myriad of reasons but one thing that is common for sure is that the situations generate emotional pressure whereby one feels better without that job. I had one experience when the Branch Manager made an absolute unfair decision against me simply because he did not like the way I challenged some of the decisions he made.