Organizational Management Midterm - Assignment Example

Organizational Management Midterm What is the importance to know the organizational purpose? Give examples from available resources how some organizations launch their operation from a definite purpose. Knowing individual as well as organizational purpose is very important. This is because having the purpose in mind gives direction and guidance. In an organization which could be composed of more than one person or teams, one could easily get lost in the accomplishment of everyday tasks. But at the end of the day, the only way to realize if one has been successful in serving the organization is if a person is able to do something that relates directly or indirectly to the very purpose by which the organization stands for. The International Federation of University Women (IFUW) believes that in planning well for the organization, members have to make a choice about the purpose for which they exist. When they do, the organization then can evaluate where they are now in terms of that purpose and where they expect to be in the future. The International Federation of University Women deems organizational purpose essential that they have created a thirty-minute module for each member to comply with. This module focuses on making members assess who they are, what they desire to do, and with whom they intend to do these things together. The members are reminded of their purpose that IFUW is a non-profit, non-governmental organization of women graduates committed to empowering women and girls through education to reach their full potential throughout their life span. After answering a questionnaire, the members are asked to gather in a small group to discuss their answers openly. This strategy is used to help members develop a common understanding of the organization’s purpose and to clarify any misinterpretations about it. Finally, as a big group, all the organizational members are asked to gather and agree if they feel that there is a need for a revision of their purpose. 2. What does DISOPTIMIZATION mean? Clarify your answer with appropriate examples. Disoptimization can be best understood in terms of optimization and that means being able to make full use of a tool or program to the best potentials it has and can offer. This translates to the optimum performance of a program or policy. For example, Benini et al. in the study of policy optimization for a dynamic power management suggests that “the main function of a power management policy is to decide when to perform component state transitions and which transition should be performed, depending on system history, workload, and performance constraints”. The paper proposes power management policies that are of a finite-state so that the power consumption of complex computer systems can be reduced by exchanging performance for power in a controlled manner. On the other hand, disoptimization may mean that all options for the good of the organization as well as the good of the general public is ignored. One good example would be that of the European Transmission System Operators (TSO). TSOs are the ones who make trade feasible by transforming complex physics into virtual tools and products that can be easily understood by the market while ensuring electricity supply (European Transmission System Operators 2). However, this will involve risks for price difference for some markets like traders and larger industries. As such, the effect of using extensive preventive counter-trade could result to disoptimization and redistribution so much so that the total social benefit is reduced. 3. Read the case: “Out of the Spotlight, an Industry Copes With Crisis”. How could you apply the Management by Objective this case? Management by objective is an approach that is systematic and well-organized with an emphasis on achieving the goals of the organization and making good use of whatever resources it has (Kotelnikov). This is done making sure that individual goals are aligned with that of the organization for optimum performance. Thus, it involves constant monitoring and feedback. It was Peter Drucker who first introduced the concept and said that "Its just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you dont” (qtd in Kotelnikov). Drucker adds that management by objectives can be implemented when top management is involved in strategic planning and providing for performance systems that help keep employees right on track. Thus, the emphasis is on the results and not the activity. The case entitled, Out of the Spotlight, an Industry Copes with Crisis, presented how a particular truck dealership business survived a national financial crisis. In this crisis, the company has experienced increase in the cost of lending and credit for customers who want to buy a truck. This means that there is a decrease in the number of institutions that lend money and if there is one who is willing to do so, the interest rates are too high to take. But the company’s chief executive, had applied management by objective and strategically planned ahead that he was able to acquire a 5-year financing negotiation that can keep capital costs low. Moreover, when other companies are into mass lay-offs of their employees, another company executive helped their employees to remember the organizational purpose by integrating two shifts into one and preventing overtime pay. This may sound like they are having so much activity but since management by objective means focusing on results, the company continued with this venture so that the company can survive the crisis. Finally, since it is the company’s objective to stay in the business despite adversities, the company executive also applied cost controls and made sure that he personally monitors receivables from customers. 4. In Porter‘s model for industry analysis, how do the powers of supplier and customer affect the organization strategy. Porter’s five forces analysis or five competitive forces model was first introduced in his book "Competitive Strategy: Techniques for Analyzing Industries and Competitors" (Investopedia). This model suggests that competition with other organizations in the same industry is highly affected by four factors. These are the threats of new entrants, bargaining power of buyers, threat of substitutes, and bargaining power of suppliers. The bargaining powers of buyers and suppliers in particular have a great impact on the strategy of the organization. If one buyer has a large enough influence on the company’s margins and volumes, then that customer is quite powerful in this sense. This power may stem from situations, in which there are a small number of buyers, only one client purchases large volumes, switching to another product is relatively easy, the product is not so much of the clients’ need that they can do without it for a time, and if customers are conscious about the product’s pricing. In this case, the organizational strategy may be restricted because it has to be careful that it doesn’t loose this particular client or that will have major adverse effects on the company’s very existence. The organization then can formulate approaches that ensure that it is not the customers who can manipulate the company as if they own it themselves. Similarly, suppliers can have so much power in running the organization. That is if there are relatively few suppliers for a particular product, there is no substitute, using another or an alternative product is very expensive, the product is of great need to customers, and if the supplier has a higher profitability compared to the buyer or organization itself. Once again, if the company is not careful, they may be manipulated by the suppliers as if holding on to them for dear life or else it go out of business. 5. “Avoid regulations, red tape, and paperwork” is the last statement of Fayol’s Guidelines. Discuss with appropriate examples from your own experience. Henry Fayol believes that in an organization, efforts to improve productivity should be made from the top to bottom (Administrative Theory). As such, he suggested guidelines by which to formalize organizational structures and relationships. In this way, decision making will be smooth. Fayol further espouses that through a principle he calls the exception rule, routine matters can be handled by subordinates so that the administrator’s can concentrate on the more complicated matters that need their attention. Consequently, red tape and paperwork is avoided due to the relative autonomy that subordinates experience. In planning for an organizational activity for example, this may need the administration approval but from its conception and planning to implementing, the subordinate doesn’t have to continually submit documents to them for monitoring. This can only delay time and discourage the person’s creativity. Moreover, Fayol also introduces the departmentalization principle which states that activities should be assigned and organized into one administrative unit. This is because one unit can focus and specialize with one particular area without having to constantly consult with others. There may be a few consultations but is only for the purpose of check up. In this set-up, red tape is likewise avoided it doesn’t having to be passed on from one person or procedure to the next. The simpler the regulations are the better chances of getting the job done on time and with good quality. For instance, having different departments who specialize in various areas means not having to go from one department to the next just to accomplish a job request. In a school, having a student’s clearance signed by different departments means that the child can go to each one without having to go back to any to have some more papers signed. 6. How could the human resources be consolidated with the training to enhance the organizational performance. The human resources department (HRD) of an organization can do a lot to motivate its members to perform efficiently and effectively (“Human Resources Training”). This means having to take note of each individual’s educational background and work experience first because there should be a perfect match between the individual and the job itself. Afterwards, the HRD can formulate training and development programs to assist the employee while on the job. These programs can result to higher employee morale and enhanced skills in their field of specialization (“Human Resources Training” 2). The key is to be able to make a needs assessment analysis so that the training is able to answer what needs should be given attention to in terms of improvement. The factors to be considered in making the training program include the complexity of the work environment, the fast-changing technological advancements, and new theories of learning. Training programs can be done onsite or outside the company to give chance to a change of environment for those who are going to be trained. The things that need to be prepared include handouts, activities that will encourage a lot of involvement from employees, and certificates that will be given to them in recognition of their efforts for the training. The focus of the training may be enhancing the skills that they already have or training them new skills needed for a diffent kind of job. Works Cited “Administrative Theory”. Faculty.Bobson.edu. 17 December 2008 . Benini, L. et al. “Policy Optimization for Dynamic Power Management.” Digital Object Identifier 18(6). June 1999. 17 December 2008. Bureau of Labor Statistics. Human Resources Training. 17 December 2008 . European Transmission System Operators. ETSO Answer to ERGEG Public Consultation on : The Creation of Regional Electricity Markets. 25 August 2005. 17 December 2008. . International Federation of University Women. Organizational Purpose. 17 December 2008 . Investopedia. Industry Handbook: Porters 5 Forces Analysis. 17 December 2008 . Kotelnikov, Vadim. Effective Management: Managerial Leadership. Management by Objectives. 17 December 2008. . Read More