Impact of Organisational Behavior on Performance of Casual Togs Firm - Assignment Example

Organizational Behavior s Submitted by s: Introduction Organizations behavior influences the overall performance of firms. This behavior relates to the functions of the management teams, their interaction with subordinate staff and their decisions. A closer look at Casual Togs, Inc, proves that organizational behavior has tremendous influence on the profitability level. The organization specializes in the manufacturing of Women’s apparel. Casual Togs, Inc is stationed at the Midwestern city. This organization with its own clothes label produces blouses, knit dresses and shorts. Under the leadership of Geldmark, Casual Togs has seen growth and fall in company profits. The company profit levels relates to its strategy of producing products for moderate customers. Through this strategy a customer through mixing or matching clothes may be able to assembly their wardrobe. This mix or match strategy however is not parented and because of these competitors have increased in town. This loophole has seen larger firms as well as smaller fashion companies (Lashley and Darren, 2003). Nevertheless, Cy does not see such events as threat. The company’s C.E.O views that price competition is worse than any other form. The company has therefore opened new production points to meet growing demand and competitions. These production units come under scrutiny from the head office. In an attempt to increase on its production, the company improved its machine production capacity. This necessitated acquisition of new machines. On the other hand, the company’s chief instructed the Vice president of sales to ensure there is a daily sales printout. Cy as a leader promotes democratic principles in the organization. He encourages his production teams to act according to situations. Promotions influence moral of other employees. Additionally, the organization fails to observe best organizational management practices. Organizations need to observe management principles, which constitute criteria for promoting workers. Management teams need to respect employees’ decisions as well as use appropriate channels of communication (Lashley and Darren, 2003). This report assists in evaluating organizational needs in relation to its employee’s behavior. Influence of leaders, managerial roles, culture, decision making and aspects of culture. Problems of the firm Casual Togs Inc through its operation faces diverse challenges. Some of these challenges relate to its management styles, influence of poor management decisions, poor research on market influences and organizational culture. This organization fails in terms of organization culture, behavior and professionalism. Cy management styles has led to infighting within the organizations. Management teams have been in constant wrangles. Team members argue openly in meetings and this to have an effect of employee’s self-esteem (Lashley and Darren, 2003). Further, Casual Togs staff comprises mainly of Cy relatives. This influence has had an effect in management of activities. Casual Togs Inc just like typical organizations has its challenges. Through its years of operations the company has underwent turbulent and profitable periods. The market of clothes on the other hand magnifies the problem of Casual Togs Inc. The market for clothes manufacturing is seasonal. This means that a company has to make rush and quality decisions. The other problem that the organization faces relates to its management styles. Cy’s management style provides a loophole for abuse of employees. The company’s chief management style provides room for emotional arguments that lowers employee’s moral (Sanchez and Mahoney, 2002). By using his relatives on leadership roles, the Cy interrupts proper decision mechanisms. This has therefore led to poor decisions on sales projections that have seen the company make losses. Leadership in organizations ensures that there is uniformity of purpose and commitment. Therefore, Cy leadership style needs improvement. The organization of this firm depends on cy’s influence. As the chief officer, Cy needs to influence employees towards attainment of company’s goals. While making decisions it is important that organization consult widely within itself. Consultation assist firms develop strategies to counter problems. The first problem that the organization undergoes is the reduction in profits. The other problems regarding decision making while undertaking policies and strategies includes; Cy as the organization’s founder relies on his personal judgment while crafting decisions. This has seen the company make poor decisions regarding its products and other influences (Boxall and Purcell, 2003). Cy does this mistake by encouraging department heads make decisions without consulting first. This in the end would see employees of the organization making mistakes. The management of this organization has led to breakdown of management structure. It is clear that managers and employees’ do not consider best practices of management. This disregard for best practices has led to managers and employees having emotional outbursts. The presidents’ sister Judy in charge of administration harasses employees and management activities. Judy objects to proposed decisions on the premise that such decisions come from groups of imbeciles. On top of this, her daily decisions influence every function of the firm. While it would have been important for Cy to object decisions made by his sister, the company’s president accepts his sisters decisions. At times, on the contrary his sister would object to decisions made by the company’s president making employees wonder who is in control. Reasons for Casual Togs problems Casual Togs, Inc undergoes very many challenges in selling its products. It is therefore imperative for one to identify where such problems begin. For this particular organization, such problems relates to its management styles, organization policies and leadership roles. For organizations to survive in competitive environments, their system of management needs to be inclusive (Lashley and Darren, 2003). Considering casual Togs, one is able to pinpoint the genesis of such problems. Organizations need to have good leadership influences. These leaders need to develop strategies to assist in the attainment of companies goals. Such an organization need to have teams and groups concentrating on specific tasks. Company’s decisions need to assist in discouraging negative attitudes and emotions. Such decisions need to follow cultural needs of the organization. The origin of problems for Casual Togs Inc relates to its management style. The organization’s decision-making activities seems not be structured. The lack of bureaucracy while making decisions has seen the organization make corporate mistakes. Poor decision-making structure in organizations results to poor decisions. Such decisions on the part of Casual Togs Inc relate to the president of the company allowing almost every manager make decisions. This has seen the company lose its corporate vision (Lashley and Darren, 2003). The other reasons why the company faces problems relates to personality of individuals. The company’s president has let employee’s personality influence corporate functions. This influence is apparent when Andy rejects important decisions. Andy lets his personal ego override the importance of decisions on an organization scale. Andy’s decision without consulting Bill Smith results to drop in sales and in many errors. This negative influence by Andy relates to his inability to manage his tasks. It is evident that in most of his working Andy was away from his desk. In place of his duties to the organization, Andy attends many management meetings but fails to distribute his responsibilities (Boxall and Purcell, 2003). Because of his poor decisions, the company receives returns on over 40 percent of its shipment. On this point, many managers attribute this to erroneous mistakes in terms of forecasting. Others argue that there is an error in the production schedule. Additionally, other management teams compare this phenomenon to lack of coordination and inefficient production methods. The president of this firm on the other hand seems lenient in meetings. There should be order when holding meetings. The case study reveals the dark side of such meetings where managers engage in arguments. Another problem that the company faces in its transaction is loses in relation to production costs. Management decisions have an influence on companies’ strategy as well as other operational tasks. Their involvement in company’s business transactions decide if the company will suffer loses or gain profits. In the case of Casual Togs loses seem to be the result of poor human resource practices. The company’s management team comprises of family members. This in turn has an influence on the management and operations of the organization. These eventualities have led to harassment of workers (Gereffi, and Olga,2003). From the case study one is able to connect, company’s loses to its management practices. This is true in when one considers the power Cy’s sister holds in the company. One is not able to distinguish what role Judy plays in the organization. She seems to have an influence in almost all departments, and her power entails hiring and firing employees. How to Change The functions of leaders is to inspire workforce towards goals. Leadership however entails all aspects of management, knowledge transfer, as well as inspiring. Through the years various leadership theories have been developed. Some of these leadership theories include the contingency theory of leadership, path goal leadership, and transformational leadership as well as other leadership theories (Lashley and Darren, 2003). Contingency leadership theories establish the ability of leaders to overcome difficulties using contingency plans. Path goal theory on the other hand links leadership styles to conditions of the organization, while transformational leaders inspire followers towards company goals. In order to reduce the influence of losses on the stability of the organization Cy needs to employ the contingency leadership style. The function of management teams in organizations is to ensure that coordination, organizing, planning and communication efforts meet corporate missions. The functions of a manager in an organization are to ensure timely staffing, coordination of tasks, organizing of activities and influencing decisions. Cy as the president of Casual Togs Inc has the mandate of ensuring smooth running of organization tasks. Company’s president’s tasks include hiring of new staff, making decisions on planning, organizing and in coordinating efforts. The president and other managers need to set up strategies. These strategies are important in assigning duties and funds (Boxall and Purcell, 2003). Therefore, in order to meet its profitability index Casual Togs, Inc has to restructure its management styles and activities. Therefore, Cy needs to be aware and transform his company’s management system. In relation to promotions, Cy needs to ensure that company’s promotions follow best practices. The company needs to restrain from using family allegiance for promoting. Organizations management uses proper organizational structure. A good organization structure consists of all power levels of an organization. Organization structure reveals all the levels of power (Sanchez and Mahoney, 2002). Organization structures are important in respect to communication, organization and planning. Organization structures on the other hand assist organization in timely execution of tasks. Since every manager understands their duties, it becomes easier to manage tasks with ease (Lashley and Darren, 2003). The organizational structure of the company starts with the president as the head. The introduction of an independent marketing analyst makes this position second in command. The following level of authority for the organization consists of two regional Vice-presidents, treasurer, Administration and sales vice-president. The next level of authority includes production manager, shipping manager, internal accounting and sales manager and it goes down to include field sales representative and designer. However, there is a break of authority in the case where Judy, president’s sister has a right to act beyond her mandate. Therefore Casual Togs Inc needs to develop its management structure to avoid collision of responsibilities. Best Management Practices Best management practices for an organization need to include those practices that are practical, cost effective and efficient for an organization. In respect to manufacturing of women’s clothes management practices would consist of strategies to meet company goals (Boxall and Purcell, 2003). These strategies include decisions on meeting demand needs. It also includes practices that ensure suppliers as well as customer get good services. Best practices also ensure that goods’ production undergo international as well as national standards. Best practices on the other hand constitute management of human resources. Management of human resources for organizations needs to be the ultimate goal for an organization (Lashley and Darren, 2003). Proper management on human resources includes observation of corporate goals as well as national standards. This strategy assists in meeting employees’ needs in terms of compensation. By the year 2000, it is estimated that consumers on a global scale spent over $ trillion on clothes. This fraction represents over 7% of world exports. This therefore means that the market has its own players as well as rule of trade. With all of the above statistics, it is important to state that the industry employs over 26.5 million workers (Boxall and Purcell, 2003). Therefore, in terms of human resource management the industry the industry has its own management practice principles and procedures. The industry has always had growth. More clothes are in demand in the world market, fashions and designs constantly evolving. Therefore, organizations need to develop best practices to ensure that they meet human resources needs, supply chain, and marketing. Organization structure change Organizational structure is an important aspect for any organization. Through the organization, structure organizations are able to manage activities as well as cooperate needs. Organization structures assist in the management of marketing tasks, human resource tasks and advertising. For textile industries, organization structures have important influence on manufacturing of products. Since these industries employ huge number of individuals and because of its manual properties, it requires sound human resource units (Boxall and Purcell, 2003). Such industries should have sound management systems that ensures employees’ needs are met as well as national policies in relation to employment. Organizational structural changes go hand in hand with change in policy. Structural change in organization in the recent past has had tremendous influence on organization in terms of cost and personal influences. in order for an organization to undertake such drastic changes on its structure consideration needs to be on the cultural as well as personal views of individual workers. Structural changes should not be an abrupt decision for organization (Sanchez and Mahoney, 2002). Abrupt structural changes in organizations have potential negative implications. Organizational structural changes would influence planning activities, organizing, leadership and controlling. There are different strategies towards structural changes for organizations. Organizations can have progressive structural changes, employ job rotation strategy or design a timely basis changes (Tidd, J, and Brown, J, 2011). Future problems and competitive environment influence Organizations such as Casual Togs, Inc face diverse challenges in the market. In the past decade, there has been rise in competition from industries in the Asian market. Textile manufacturers in the Asian market benefit from the competitive advantage of producing clothes. Other foreign organizations have ventured into these markets. This therefore has made the textile industry volatile. In the next years, such organizations perhaps will face more competitors (Gereffi, and Olga,2003). Technology on the other hand has had an impact in the management of organization as well as communications. Organizations now can sell its products to a wider range of customers than before. These organizations further face challenges in respect to governments, industry as well as human resource regulation. In the United Kingdom and most of European countries, the issue of environment influences all industries. Regulation on environmental protection therefore means that organizations’ cost of production rise (Lashley and Darren, 2003). Organizations additionally have to set up marketing strategies to meet growing numbers of competitors. These organizations have to use world’s technology advances in marketing products. New human resource policies and practices additionally will influence companies’ profitability. Conclusions Management of organizations has diverse aspects. For a manufacturing company, organizational leaders need to manage production lines. These managers in various departments also manage the marketing and advertising functions. Moreover, these management teams manage human resources functions and operations. However, in the process of management, such management teams undergo various challenges. These challenges that management team faces in the course of their duties include policy challenges influence of the market environment and other industry challenges. The human resource teams in such organizations face multiple challenges in management of human resource functions. These challenges include grievance challenges, compensation challenges, as well as motivation. Casual Togs Inc an organization specializing in manufacturing textile products for women face multiple challenges. The organization face challenges in relation to its organization. It is evident that the employment of close relatives was one of its bad strategies (Boxall and Purcell, 2003). The influence of close relatives in the organization has an effect on the management of the organization. This has led to neglect of presidents policies. From the case study, one realizes that the president is not able to instill discipline in the organization. The from the report one gets the information that Cy is a similar to a puppet. He is not able to control emotions of his employees, which eventually destroys company’s production. Further, egos of some of its management teams influence production functions. Such influence discourages the use of new practices and technology. References Lashley, C, and Darren L. 2003. Organization behaviour for leisure services. Routledge’ Boxall, P, and Purcell, J. 2003. "Strategy and human resource management." Industrial & Labor Relations Review 57(1) Pp: 84. Sanchez, R, and Mahoney, J. T 2002. "Modularity, flexibility and knowledge management in product and organization design." Managing in the modular age: architectures, networks, and organizations. Tidd, J, and Brpwn J.2011. Managing innovation: integrating technological, market and organizational change. John Wiley & Sons. Gereffi, G, and Olga.2003. The global apparel value chain: What prospects for upgrading by developing countries. Vienna: United Nations Industrial Development Read More