Formal and Informal Roles Increasing Business Efficiency - Essay Example

Contents Introduction 2 Organizational Structure 2 Individuals’ and team role within organisation 3 Communication 4 Perception 4 Motivation 4 Formal & Informal groups 6 Organisational Process & Development 6 Organisational Management 7 Conflicts 7 Power & Politics 8 National & Organizational Culture 8 Bargaining Strategies 9 Conclusion 10 References 11 Introduction Businesses in this growing competitive world face tough competition all around. This makes it imperative that businesses are able to ensure maximum efficiency. Business therefore needs to ensure that the vital human resources are managed efficiently. Managing the vital resources will ensure that business are able to make plans and develop strategies related to the organization which brings maximum efficiency and enable the business to grow. The paper thereby looks into the different aspect of business organization by concentrating on the different organizational behaviour which helps the business to gain maximum efficiency. Looking into this aspect will help business organizations to improve the business environment and help them grow. Organizational Structure Organisational structure forms a vital part for any organisation. Organisational structure is “how the team members and individual work” (Organisational Structure, 2010) and having a structure results in a coordinated efforts as it defines “the relationship of reporting, shows the communication channel and identifies how people are linked”. (Organisational Structure, 2010) Any change in the structure results in a change the task is performed. For example, suppose the structure changes from centralization to decentralization then the responsibilities get distributed and responsibilities change. Organisation transforming needs to ensure that leadership also transform. A study also supports this and states that organisation transforming their structure brings about “a change in leadership as the hierarchy and lateral and upward communication brings a transformational change in leadership”. (Wright & Pandey, 2010) This transformation is more in case of public companies as the bureaucracy is less. Organisation needs to watch that that when the structure changes it is also accounted for. For example, a company which changes its structure from centralization to decentralization needs to accompany this change. Centralization takes time for decision. It is quicker in decentralization as people know their roles. This should therefore change the production else the production will be more. This will mean parking funds in stocks. This could be a loss to the firm as it will have lots of inventory. Any business units looking to change their organisation structure need to “determine the best structure according to the environment condition and choose one after conducting a simulation on various scenarios”. (Dignum, Dignum &Sonenberg, 2006) Having simulation will ensure that mistakes are reduced. Determining the different structure will be easy. Matching those with the environment will ensure that the best one gets picked. For example, a company is having a decentralization structure. This is causing problems so needs a change. Creating an artificial environment as the one which is present and looking at other alternatives will help to come with a good one. A company by doing so will find the advantage they get from using mixed. This might encourage them to use it and checking it in different conditions will help to check how effective this might be. This will ensure proper results and efforts. Individuals’ and team role within organisation The following deals with individual and team roles within the organisation to ensure efficient services. Communication Managers need to ensure that the communication process is complete. Care should be taken to ensure that information passes from the managers to employees without hindrance. This can be achieved by developing healthy relations. This will make the communication process to be free from barriers. This can be achieved be ensuring that “information is passed by talking directly with the person so that the reactions can be recorded and assessments made which helps to develop the communication process”. (Staufer, 2008) This will also reduce the over reliance on technology for communication. Managers should ensure that clear instructions are communicated to the employees to reduce confusion. Importance should also be laid on feedback. Perception The perception of a workplace also determines the likeness for the job and his efforts towards it. Managers should ensure that positive perceptions of the people are brought forward and people mix and socialize so that satisfaction is high. At the same time efforts should be made to ensure that bad perceptions are avoided as it will de-motivate the employees. Motivation Managers need to ensure that employees are motivated to work and perform their task. This is more for the service industry to see that they are always ready whether at night or while partying to perform their duties. There are many motivational theories which will help. One such theory is as follows The theory of Maslow Hierarchy theory of motivation founded by Abraham Maslow will help to motivate them. This model is divided into five levels dealing with different needs. The first level deals with the basic needs. The basic needs are air, water, sleep and so on. The compensation package paid to the employee helps to achieve those so the package should be sufficient to ensure his basic needs. (Lowery, 1998) The second level is safety needs. Employees want safety in jobs and financial security. Managers should ensure that employees get the safety needs. This will arise when their level one need is met. So management must ensure that employees are motivated accordingly. The third level is social needs. Every person needs that people recognize them and at the same time love them. Managers need to ensure that the efforts of people are recognized and this can be achieved by creating groups where people work together and recognize the efforts of individuals and satisfy their social needs. The fourth level is esteem needs. Employees want that people recognize their efforts. Managers need to ensure that talent is recognised and responsibilities are entrusted to them to perform their duties. The final level is the self actualisation needs. This is the highest need. This will help employees take more responsibilities. Managers can ensure that employees whose highest level needs are satisfied are entrusted with more responsible jobs as they have better efficiency and the desire to prove their worth. Formal & Informal groups Organisations have a mix of formal and informal groups. Formal groups are those which are run by the organisation and informal are the ones formed on the basis of opinion and perceptions. Difference in perception makes it important that leaders take up the responsibility and bring everyone to a common platform. This makes it important for managers to demarcate the responsibilities and powers so that a clear understanding is created. Organisational Process & Development Organisation need to ensure that they change. They should encourage ideas. Management needs to have forums and discussions with the employees and management so that they are in tune with the developments. Management should also look forward to journals so that vital information regarding to the changes are taken control of. This defines in the term of Schein into culture of three types. They are Artefacts which is physical attributes Interacting which is personal and organisational values Tacit assumption about unseen behaviour Culture thus, shapes the society as one feels it and forms a very integral part of every organisation. Organisational Management Management have different leadership strategy to choose from like “scientific approach, the excellence approach, the value leadership perspective, the trust culture or the Whole soul approach”. Scientific approach deals with “strategy to achieve the objective of the business”. The excellence theory deals with perfection and delivering the best service and product. The value leadership perspective lays stress on “relationship between leader and his subordinates”. The trust culture relates to “leadership and colleague”. Lastly the whole soul approach states that “spiritual leads to proper management”. Thus, importance is laid on acceptance and attribute that contribute towards leadership. (Yukl, 1989) Decision making also forms a very vital part. The management needs to ensure that tough decisions are taken by the top management and easier one by lower levels so that transformation can take place. Conflicts Management needs to ensure that conflicts between the employees and departments are well handled. Difference in opinions and ideas will makes conflicts to arise so steps need to be taken to reduce it. Management needs to do it is a competitive manner. Management should look to take the best decision which works for the good of most. Secondly, is the collaborative approach which looks into the needs of others? Thirdly, is accommodating who allows others to do what they feel and is acceptable to change. Fourthly, is compromising which looks into decision favouring both. Lastly, ensuring that conflict don’t arise by delegating responsibility. Power & Politics Management needs to ensure that people don’t run after power and use their position to create an environment which results in politics and people acting for their own good. Management needs to guard against those. This forms an important part of every business unit and arises due to the interaction between different elements of the organization. Power is influencing others through position which has certain value. (IBS, 2010) People uses power to influence the decision making process through various manner. People exert power through different mechanism like coercive power, reward power, legitimate power, expert power and referent power. Coercive power is when the decision gets influenced due to power. (IBS, 2010) People use it to get the best out of employees whereas reward power is when the individual is given certain benefits for the manner the work is carried out. Thus, power and politics has an influence on decision making and using the different techniques people bring the best out of an individual and also sometimes influence the decision making. National & Organizational Culture Culture affects human behaviour. It is something which humans acquire. This brings a change in human pattern. It makes them do different things. Culture gets ingrained by the group he has. “People belong to different caste, country, creed, colour, and region which affect the manner in which they carry out their duties”. (Innah, 2009) Suppose, a person influenced from the western culture will have a liking for different product compared to others. The culture also affects the pattern. “A set of beliefs, attitude, language, life style affects the spending pattern”. (Innah, 2009) This brings changes. A research shows that “people from different countries have different culture as a result of which their pattern of influencing other is also different there by suggesting that culture brings about a change in the way person behaves and this gets moulded by the group he belongs to”. (Ralston, Hallinger, Egri & Naothinsuhk, 2005) Different culture also gives rise to conflicts. People think differently. This affects the growth part. It creates conflicts. People belong to different regions, countries and differ in their process of thinking and doing things. (Innah, 2009) So when this people come together it results in difference in opinion and looking at things differently which gives rise to conflicts in the organisation (Innah, 2009) Bargaining Strategies Business units use different strategies to ensure that the business is able to garner maximum benefits. This helps the business to consolidate their position and ensure that they are able to grow and increase their business. Business units use different bargaining strategies to ensure that they are able to get the best deal for the business. Business uses different bargaining strategies like Distributive Bargaining: It is a strategy where business units look towards a zero sum game which is a negotiation strategy. Here the business unit looks towards ensuring that the fixed resources are distributed in the best possible manner which ensures that the business is able to ensure a deal which reaps maximum benefit for the organization. (Spangler, 2003) Interest based bargaining: This is a business negotiation strategy where the business units combine to get the maximum return for the business by ensuring a win-win situation for both. (Spangler, 2003) This thus helps the business to ensure maximum efficiency and help them grow. Conclusion Business units have to ensure that while conducting business all the little aspect of the business are looked after. Having a proper management strategy which looks after the human resources ensures that the business is able to bank on them. Businesses also ensure that they care about the vital human resources by having different aspects of the business looked after. This helps to ensure that the business is able to garner maximum return which helps them to grow and ensure maximum efficiency in their operations. References Dignum F, Dignum V &Sonenberg L, 2006, “Exploring congruence between Organisational Structure and Task Performance”, Springer Link, Volume 3913 Innah A, 2009, “the effect of cultural factors in consumer buying behaviour”, Times Publications IBS, 2010, “Power & Conflicts”, Chapter 19, ICMR, retrieved on January 26, 2011 from http://www.icmrindia.org/courseware/Organizational%20Behavior/OB-DS19.htm Organisation Structure, 2010, “Organisation Structure”, retrieved on January 26, 2011 from Read More