Vendoline Company - Case Study Example

? Vendolin Company Introduction The Vendoline Company is a technological company involved in delivering technological solutions and internet services to corporate and individual clients. The company targets middle class and upper class clientele and has large market segments in Turkey and European market. The management of the organization has invested in excellent service delivery and innovation in meeting the consumer demands. The company is located in Turkey and has a national and international presence in sections of Middle East and Europe. The company is valued at $393, 338. It has a traffic rank of over 500,000 in Europe. As a service provider, Vendoline Company has determined what the consumers expect. The top level management has been investing in real-time access of customers to information like prices and terms of delivery. My role was to ensure that web hosting management systems were functional and effective. I was coordinating a team of IT experts who were had direct contacts with customers. This enabled me to assess the effectiveness of the organizational management practices and systems in the company. Problem statement How can organizational performance in technology-based organizations be enhanced? Technological companies are faced by the challenge of rapidly changing external environments. The management has focused on external competition and environment and failed to invest in the internal competencies of the organization. This has compromised excellence in service delivery. There is a need to research on the factors that affect quality and organizational performance in technology based organizations. Literature review The technological organizations must have effective leadership if the desired goals are to be achieved. The organization is multidisciplinary and must engage many players. Interpersonal skills are crucial in enhancing the capabilities of running technological organization (Andres, 2001). Technological organizations are facing numerous challenges because of the challenges because of the employees job-hop and technological changes. This has presented a difficult time in attracting and retaining talent (Gouge, 2003). The Vendoline Company has faced high turnover rates. This is attributed to the changes in technological advances and the dynamic nature of the market. Modern organizations are directly connected to technological systems that affect their performance and appeal to the clients (Andres, 2001). The company has strategic plans to increase reliance on technological innovations in future. Organizations face resistance to change from employees. Technological organizations must be flexible while implementing models. Globalization is forcing many technological organizations to keep reviewing their strategies (Gouge, 2003). This aims at enhancing the capacity of innovations in a bid to remain relevant and competitive in a technologically driven market (Cameron & Green, 2004). The field of technology is advancing as more efficient and powerful discoveries enter the market. Organizations dealing with technological matters are faced with bigger pressure than the rest (Rapp, 2002). The reason is occasioned by the need to upgrade the technological capabilities and remain competitive. On the converse, the technological companies are faced by the threat to become obsolete (Lennick & Kiel, 2005). The technological innovations are known to have a profound effect on the market. Organizational leadership must be professional, pro-active and visionary in order to keep the technological momentum and remain market leaders (Gouge, 2003). Technological organizations need strategic leadership and management. The management of technological organizations like Vendoline Company needs to either innovate internal technology that can alter the trends in the market. They can also procure external knowledge or expertise. This can happen through outsources or partnerships of strategic nature (Lennick & Kiel, 2005). Internal innovation for technological companies is preferable since it makes the organization marketable. Technological organizations that are known for creativity, brilliant ideas and new technologies command massive following and control large market shares (Cameron & Green, 2004). The process of internal innovation can produce unwarranted disadvantages or losses. The technological companies must invest heavily in the expertise and knowledge among the employees. Companies like Google and IBM fund and offer incentives for internal knowledge and innovation. The process can be time-consuming and demands the participation and support from the top management of the organization (Gouge, 2003). The leadership of companies that deal with technological services like webhosting and internet services need to be aware the levels of risks and expenses involved (Hubbard, 2004). The period of research and innovation may take years (Andres, 2001). Technological companies like Vendoline must possess adequate resources in order to sustain the programs to the logical conclusion. The process of enhancing organizational effectiveness and performance is forcing some organizations to adopt strategic alliances (Hubbard, 2004). This is helping the firms in decreasing the risks, time and costs involved in procuring technological advances needed by the ICT companies (Cameron & Green, 2004). This has increased the number of agencies offering themselves for strategic technology advances. These alliances sometimes involve non-equity or equity alliances between technologies and the organizations seeking knowledge (Gouge, 2003). Some organizations are getting involved in joint ventures in such of solutions that enhance the performance of the organizations or introduce new technologies in the market. Technological companies from developing companies are forming strategic alliances to access knowledge from foreign companies (Andres, 2001). Some use the STAs to access knowledge through learning. High-technology companies are concerned about setting the next standard of organizational performance in the global market. Unlike other organizations, technological companies like Vendoline Company are expected to delivery services that promote efficient in the running and management of organizations in other fields (Gouge, 2003). This is inspired by the fact that globalization is being spearheaded by technology-based organizations. Organizational performance must be accessed through the competitiveness of an organization. Technological organizations engage alliances or strategic partners when it comes to looking non-substitutable and rare resources. Performance is boosted by efficiency and consumer perceptions (Cameron & Green, 2004). Additional resources that involve new technologies can cause technology-based organizations to remain competitive or to access rare resources in the required timeframe. Firms use alliances as a way of creating-value in the resources. Organizational performance is affected by the strategic management decisions taken by the organization. (Gouge, 2003) Organizations depend on both tangible and intangible assets. Knowledge and technology are intangible assets that modern organizations are depending upon (Andres, 2001). Management capabilities and process of production is the core of organization performance in technology-based organizations. For example, a webhosting company may develop new platforms for hosting websites among other new and rare products. The new product or service becomes a product that customer’s identity the company with. This has caused technology-based organizations to be constantly seeking complementary resources that consolidate the position of the organization in the global market (Gouge, 2003). Discussion and analysis Professional management and leadership are known to lead to enhance performance. Strategic management incorporates charismatic and transformational leadership skills. A telling example is the case of late Apple Inc chief executive, Steve Jobs. Technology-based organizations require individuals capable of transforming the motives and perceptions to the employees in a productive manner (Stringer, 2002). Leadership in organizations is increasingly becoming distributed and responsive to the organizational stakeholders (Cameron & Green, 2004). Leaders are losing much control of the organizational information. Technology has enabled leaders to delegate and monitor the performance of other leaders despite the geographical distance (Rapp, 2002). There is a correlation between organizational culture and leadership in technology-based companies. Knowledge management is one of the ways of sustaining competitive advantage in technology-based organizations. The strategy is known to lead to increase performance (Gouge, 2003). According to knowledge based management, technology is defined as the technical system that determines how knowledge is acquired and processed within an organization. Enhancing organizational performance demands that employees in an organization must have positive daily interactions. Without the human side of employee engagements, the responsibilities of a leader suffer (Gouge, 2003). Technology-based organizations like Vendoline require two-sided engagements between employees and leadership. Research shows that such engagements increase performance and innovation among employees (Andres, 2001). Employees tend to work towards a common goal leading to profitability and competitiveness. Close engagements with employees actuates the leadership to influence the employee behavior and perceptions with ease (Gouge, 2003). This makes the expected organizational climate to be entrenched because the appropriate conduct has been engrained through the interactions. Technology-based organizations view team leadership as an asset that needs to be protected (Hubbard, 2004). There is a correlation between organizational performance, employees and their productivity (Cameron & Green, 2004). A positive work environment enhances and maximizes the employee performance in technology-based organizations like Vendoline. For organization efficacy to be reached, the management of an organization must ensure that employees participate fully in decisions making process and internalized the goals of the organization (Rapp, 2002). According to studies, 25 percent of the reason why people feel effective, productive, energized, motivated and committed to the organization is attributed to leadership behavior. Enhancing organizational performance entails enhancing stakeholder performance. Employees being part of the stakeholders must be motivated. Leadership behavior is a strong display mannerisms the pass the values and expectations of the organization. This sets the organizational climate. Organizational performance can be enhanced through task-oriented leadership behaviors (Gouge, 2003). Organizational climate refers to the work environment in a technology-based organization. The climate affects the influence or motivation of the employees (Cameron & Green, 2004). Technological organizations must cultivate the culture of teamwork and cooperation among employees. This creates positive perceptions among stakeholders leading to healthy internal competition among the employees. Enhancing organizational performance in technology based firms entails creating a positive organizational climate (Stringer, 2002). This strategy influences the way things are done. Organizational climate influences organizational goals and how the goals can be achieved (Cameron & Green, 2004). Therefore, it forms the sum total of the perceptions of procedures and policies in a technology-based firm. Organizational performance is subject to many forces. The perceptions of employees and stakeholders must be productive and progressive if an organization is to become a market leader (Hubbard, 2004). Therefore, an excellent organizational culture leads to a productive organizational climate. Technology-based organizations like Vendoline have created a massive technological presence and built an environment that attracts stakeholders regardless to the geographical distance (Gouge, 2003). The development of mobile applications has made it easier to monitor success. In considering how to enhance organizational performance, the strategic team of the organization must invest in a professional and good organizational culture and climate (Cameron & Green, 2004). This entails creating incentives and leadership models that encourage full participation of all the stakeholders. An organizational cannot enhance its performance without paying special attention to the organizational climate. Studies show that environment affects employee behavior (Stringer, 2002). Shared perceptions and practices constitute a vital part of the organizational mission and productivity. The technology-based organizations must employ performance management systems as a means of ensuring and maintaining organizational controls (Stringer, 2002). This initiative ensures that organizational action plan is pursued leading to achievement of the overall goals. The strategic orientation of technology-based organizations must be manifestation of missions and strategies. A technology giant must ensure that the quality or reputation of the brand remains high and protected. The financial resources must ensure that the innovation and marketing meet the expected thresholds (Hubbard, 2004). The use of performance management systems encourages a balanced view of external and internal financial and non-financial measures leading to the overall enhanced performance of the organization (Gouge, 2003). These systems consider multi-dimensional frameworks which are geared towards ensuring the retention of market share and increasing the creativity and teamwork (Cameron & Green, 2004). Some of the technology-based firms use the performance management systems and automated programs to ensure that the goals and priorities of the organization remain on course. This entails making the necessary adjustments in order to achieve the mission and vision of the organizations. Some of the steps taken by the technology-based organizations include ensuring high speed internet connectivity serves the interest of the customers. This involves using the latest and most progressive infrastructure and technologies to meet the consumer expectations (Szewczak & Snodgrass, 2002). Webhosting companies that function as internet service providers ensure that they process LTE, 3G, and HSPDA among other technologies. These technologies ensure high data speeds which are known to attract individual and corporate clients (Gouge, 2003). In doing this, the technological companies must work in partnership with the organizations that offer these technologies. The technology-based organizations have made it easy to performance transactions through the use of internet (Cameron & Green, 2004). This has encouraged other organizations to adopt the same technologies. More organizations are depending on technology-based organizations like Vendoline when it comes to personnel training and technological deployments. The nature of these services needs high levels of trust and efficiency. In using the performance management systems, the gathering and dissemination of huge volumes of information across many levels of organization becomes possible (Szewczak & Snodgrass, 2002). This leads to enhanced performance and solves the problem of credibility in service delivery (Cameron & Green, 2004). IT companies must be on the frontline in delivering solutions that are vital to organizational performance which at the same time appealing to the clients. This entails having employees who can handle hardware, communications and software in a manner that promotes efficiency and increased profits (Andres, 2001). Performance revolution over the last decade has been spearheaded by IT based organizations. These organizations have invested in less bureaucratic management systems which are driven by the need to deliver solutions through investing in young and motivated professionals (Gouge, 2003). This has enabled the organizations to generate, disseminate and store massive information at a less cost. Solutions One of the most important solutions is the need to address organizational changes. Each organization must have a unique working climate. The climate reflects the history and purpose of the organization. The new management must ensure that the organizational leadership remains committed to the organizational goals. This must be entranced in the internal culture of the organization and the incentives given to the stakeholders (Andres, 2001). The main challenge is that the new leadership is confronted with new challenges that demand a deviation from the past. At the same time, the old management may not be flexible enough to adopt the new approaches. This is because some of the solutions might affect the traditions and outlook of the organization (Hubbard, 2004). Resistance to change is one of the challenges facing modern organizations. Therefore, technology-based organizations must assess the internal culture of the organizations and come up with incentives that motivate the stakeholders to adopt the changes needed. The use of young and professional management teams offers a viable solution in many respects. Technological competence calls from generational transformation. Studies show that older organizations need more sensitive approaches when it comes to changes and reinvention (Gouge, 2003). This solution is means that an organization can adopt in the dynamic technological environment is the proper processes are used to address the need for the changes. The rapid technological changes are forcing technology-based organizations to keep evolving to remain relevant. The other solution involves expanding organizational capacity. This entails the effective management of human resources, organizational processes and strategic leadership. This is supported by inter-institutional linkages and robust organizational infrastructure. Technology based organizations like Vendoline are faced by many challenges in terms of performance and macro factors. This solution addresses process management, reward management system and motivation. The solution leads to increased performance and professionalism in the firm. At the same time, it creates a strong capacity for firms to absorb shocks. The main demerit of this solution is that it takes time to implement (Szewczak & Snodgrass, 2002). This is informed by the fact that many resources and stakeholders must participate in the expansion of organizational capacity. The most preferred solution is the expansion of the organizational capacity. It involves using an action plan that stipulates the role of top management, technical personnel, clients, suppliers and marketing department (Hubbard, 2004). This solution affects the external environment of the organization. It also incorporates organizational performance and motivation. The stakeholders play an active role in ensuring efficiency, viability and organization culture is adhered to without fail. Reflective statement Enhancing organizational performance in technology-based firms must address the mission and culture of the organization. This calls for socio-cultural, technological and political consideration that enhances financial management, organizational processes and strategic leadership. References Andres, T. Q. (2001). Enhancing organizational performance and productivity: Management tools and techniques. Quezon City, Philippines: New Day Publishers. Cameron, E., & Green, M. (2004). Making sense of change management: A complete guide to the models, tools & techniques of organizational change. London: Kogan Page. Gouge, I. (2003). Shaping the IT organization: The impact of outsourcing and the new business model. London: Springer. Hubbard, E. E. (2004). The diversity scorecard: Evaluating the impact of diversity on organizational performance. Amsterdam: Elsevier Science/Butterworth-Heinemann. Lennick, D., & Kiel, F. (2005). Moral intelligence: Enhancing business performance and leadership success. Upper Saddle River, N.J: Wharton School Pub. Rapp, W. V. (2002). Information technology strategies: How leading firms use IT to gain an advantage. New York: Oxford University Press. Stringer, R. A. (2002). Leadership and organizational climate: The cloud chamber effect. Upper Saddle River, N.J: Prentice Hall. Szewczak, E., & Snodgrass, C. (2002). Managing the human side of information technology: Challenges and solutions. Hershey, PA: Idea Group Pub. Read More