The Contingency Measures and Methods - Jones Lang Lasalle - Case Study Example

Managing People and Organizations Name Institution Name Word Count: 2253 Table of Contents Introduction 4 Strategy 4 Environmental Uncertainty 6 Size 8 Competition/Globalization 9 Technology 10 Conclusion 11 References 12 Introduction Organizations have to strategize to counter the environmental and situational changes. Each organization aims to improve performance and processes through designing the organization and processes effectively. In fulfilling these requirements, senior managers have to understand the significance of contingency factors in creating a framework that delivers performance. An example of an organization that has to employ contingency factors in improving performance is Jones Lang LaSalle (JLL). JLL has a long history and performance in real estate, and it operates in more than 80 countries, employs more than 58,000 employees and has numerous portfolios to fulfill the requirements of their diverse customers. The JLL services include services for investors and developers, and services for corporate and investors. The services are different in nature because of the requirements and expectations of the customers. JLL deals with office investments, office leasing, and industrial management. The diversity of the operations because of the customer and employee base means that the company is large and has to integrate contingency measures in ensuring the organization operates effectively. Therefore, for JLL, the contingency factors are important in ensuring the organization improves and delivers performance. The paper discusses some of the contingency measures and methods in which JLL employs or can employ in creating a ‘vehicle’ to deliver performance. Strategy Any organization has to strategize in ensuring it introduces and implements the right choices in achieving defined goals. Organization design process incorporates numerous variables when it comes to strategizing (Wong, Boon-Itt & Wong, 2011). For example, the different departments should support each other, the roles and responsibilities should be defined, the right human resource should be available, and the strategies should be sound based on the expectations of the organization. JLL operates in a wide market in which different stakeholder’s requirement different factors. For example, JLL operates in 80 countries meaning host cultures are different and legislations in place differ. The strategies during formulation process should understand the requirement and integrate the aspect of implementation. A strategy can be drafted on paper excellently but during implementation, inefficiency can result affecting the entire process and approach to the strategy (Zhou et al., 2007). JLL should understand its scope and the extent of resources and defining the resources to fulfill the objectives and requirements of the organization (Flynn, Huo & Zhao, 2010). The strategies should analyze the different situational factors and to draft the strategies based on the localities (Askim, Johnsen & Christophersen, 2008). However, JLL should adhere to the mission and vision statement in developing the strategies to ensure the core objectives of the organization are not forgotten. In developing the strategies, JLL has to understand the limits of the resources and allocate the resources based on the organization or sector requirements (JLL, 2015). For example, the human resource sector may require urgent resources compared to financial department meaning more resources has to be allocated to the human resource to improve the operational requirements (Jiang & Li, 2008). It suffices in instances in which financial employees are ineffective, and training and development or newer recruitment should be done. Therefore, JLL has to refocus to ensure additional resources are allocated to fulfill a requirement, which is crucial to the overall success of an organization. In the development of the strategies, JLL has to understand the short-term requirements and the long-term expectations. It may involve the determination of the current market and future expectations of the market. Luckily, JLL has a specific department that deals with research ensuring the organization has up to date information (Xiaosong Peng, Schroeder & Shah, 2011). Thus, JLL should capitalize on the gathered information in deriving the appropriate strategies for improving performance. Furthermore, the research pinpoints areas in which the market has not been addressed, ensuring JLL has newer markets that it can penetrate. Hence, strategic development and frequent review of the strategies about the milestones is integral to continued improvement of JLL and fulfilling the requirements of the stakeholders (Askim, Johnsen & Christophersen, 2008). Environmental Uncertainty The major challenge for complex or large organizations is the aspect of uncertainty (Tung, Baird & Schoch, 2011). To address the problem of uncertainty, numerous companies employ strategies to manage the problem while other parts of the organization remain certain (Wong, Boon-Itt & Wong, 2011). The major source of uncertainty is the environment and the most useful dimensions to describe the environment include stability and homogeneity. JLL operates in a real estate market that can be seen as stable but because of the extensive reach (to numerous countries) means that the stability is questionable. The different regions that JLL operates require different fundamental, which translates to complex decision-making process (JLL, 2015). JLL senior managers should understand the requirement of stability and ensure the business operates accordingly through employing appropriate strategic directives. Variability, complexity, and illiberality are some of the components that informs in understanding an organization (Flynn, Huo & Zhao, 2010). Variability is the degree of change due to environmental requirements; complexity refers to the range and heterogeneity of environmental activities while illiberality refers to the external competition, indifferences and hostility that threaten any organizational strategy (government involvement). JLL faces these challenges and contingency components on a daily basis (Xiaosong Peng, Schroeder & Shah, 2011). For example, the different governments may introduce legislations and policies that may make it challenging to operate the business. The introduction of any change means JLL has to re-strategize and change the systems to address the requirements of the changes (Wong, Boon-Itt & Wong, 2011). Therefore, JLL has to check the environmental situations and institute measures that reflect the requirements of the environment (JLL, 2015). Moreover, the changing environmental conditions require JLL to be variable in its operations (JLL, 2015). Organizations that do not adhere to the requirements of change become obsolete. It requires transformative leaders and situational leaders, who are able to collect information regarding the environment and strategize in a way that it addresses the requirements of the change. Variability is dependent on the location of factors, such as culture and traditions determines the efficiency of the operators and human resource. It determines the strategic directives in that it should suit the requirements of the situation, such as culture. Hence, the human resource departments and other departments should understand the differing requirements and the regions requirements so that any strategic decisions are based on the factors of the given environment (Wong, Boon-Itt & Wong, 2011). Hence, JLL has to understand and appreciate components associated with variability and other forces within the operating environment (Askim, Johnsen & Christophersen, 2008). Furthermore, it requires redesigning of JLL processes to fulfill the requirements of the organization based on the environment and the changing forces that affects business operations. Size Size is another component that senior managers have to consider in determining the success of an organization (Wong, Boon-Itt & Wong, 2011). Size can be in terms of asset value, revenue and the number of employees. The organizational size incorporates other factors, such as the command chain, and the way decisions are made. The increase in organizational size results in greater structural differentiation. JLL operates in a diverse environment and employs more than 58,000 employees (JLL, 2015). Moreover, the revues are high, and the number of business/premises it manages is large. Therefore, JLL is a large company, which is complex in nature. The designing of roles and responsibilities, and determining the structure of management creates additional challenges (Sousa, Martínez‐López & Coelho, 2008). The organizational design requires identification of regional/country headquarters and contribution of the different players in fulfilling the requirements of the company. JLL number of employees and span of operation requires the senior management to ensure each department, and regional office operates efficiently (JLL, 2015). The chain of command should be clear, and the role of each employee should be defined to prevent conflicts (Flynn, Huo & Zhao, 2010). Employee management efficiency is integral to the success of the organization because of the large size and differing cultural backgrounds (Xiaosong Peng, Schroeder & Shah, 2011). For example, the employees in Australia are motivated by different factors when compared to employees from Asian regions (Pertusa-Ortega, Molina-Azorín & Claver-Cortés, 2010). Hence, the senior managers are required to understand the employee diversity and the extent in which the employees’ requirements have to be fulfilled. Competition/Globalization Competition is a unique contingency factor because any organization has to operate in a competitive business environment. The market dynamics keep changing meaning different organizations have to strategy to counter the challenges associated with competition (Wong, Boon-Itt & Wong, 2011). JLL is a large company and is faced by numerous companies both small and large for the purpose of taking their market share (Flynn, Huo & Zhao, 2010). Competition in the real estate industry is tough and fulfilling the requirements of the customers is important in ensuring the business continues to operate seamlessly. Globalization and internationalization of companies and businesses introduce new competitors to the operating environment (Sila, 2007). Therefore, JLL has to analyze the influence of the competitors especially the international competitors because of the large resources in their respective disposals (Carey, Lawson & Krause, 2011). Moreover, the local competitors have better understanding of the markets because the companies is nearer to the customers, and decision-making takes a shorter time. JLL has to review the strategies and objectives of competitors and device strategies to counter the competitor’s approaches. Some of the competitors are threats and guaranteeing high-quality services, and products are important to the success of JLL (JLL, 2015). So far, JLL has continued to operate well in the market and has received numerous accolades and awards because of their high-quality services. Even though the company operates well, it is appropriate to maintain these high standards and to sustain customer loyalty (April & Chun 2005). The approaches reduce the cost of operations, such as marketing because JLL will not be required to market to engage customers, but word of mouth will attract more customers. Furthermore, the reputation will not be tainted, and the requirement of public relations will not be required because of the effectiveness of operations. Therefore, reviewing the competitors and understanding their varied requirements and approaches towards entry to the market provides JLL with an opportunity to counter the threats easily. Technology The technology consists of the methods and techniques employed in providing services and goods, and workflow related activities (Xiaosong Peng, Schroeder & Shah, 2011). Technology is the most critical contingency measure that determines the direction of an organization (Flynn, Huo & Zhao, 2010). It incorporates other factors, such as labor costs and workflow integration. The aspect of technical core is inclusive since smaller organization’s subsystem is within the technical core compared to larger organizations meaning multiple systems, which are interlinked are required to manage an organization effectively (Wong, Boon-Itt & Wong, 2011). JLL is a large organization that as numerous systems that balance the requirements of the local market and the international market (Zhang, Linderman & Schroeder, 2012). For example, a system is required for the Australian market while another system is required for the Asian market. Both of the systems are supposed to be supported on the same platform because some of the information, such as the employees’ data is similar to some extent (Garengo & Bititci, 2007). The system should be able to different the information and data of these different employees based on their respective operating environments. For example, the labor regulations in Asian regions may be different from labor regulations in Australia (Tsai, 2009). Therefore, the technological component should be able to address the different operational requirements and to ensure the business continues to operate effectively (Flynn, Huo & Zhao, 2010). In understanding the technological development requirements, some of the factors incorporated include ratio of employees e.g. qualified vs. unqualified, ratio of managers to other employees, ratio of allocation to salaries vs. turnover, chief executive officer’s span of control and the length of command. These factors influence the technological requirements of an organization, and any adjustments mean that the technological aspects are affected (Sousa & Voss, 2008). For example, the production size, such as a number of activities performed influences the type of technology since differentiation leads to additional technological developments (Wong, Boon-Itt & Wong, 2011). JLL has two major services to the investors and the developers, but the span of operation is large. The degree of variation and complexity of the product or service affects the technological design and effectiveness of the process. Therefore, the number of customers and the portfolio it manages is large meaning the technology requirements should incorporate the operational requirements of the business. Moreover, JLL has to review frequently the technology requirements to ensure it balances with the requirements of the company (JLL, 2015). Technology and technological requirements become obsolete faster, and it is appropriate to keep updating the technological requirements to ensure the business continues to operate effectively. Conclusion In conclusion, contingency factors are important to any organization that wants to succeed. Senior managers should appreciate the contingency factors and create enabling environments that support performance improvement. JLL is a large and complex organization because of the span of operations and the number of employees. Some of the contingency factors that senior managers have to appreciate include strategy, competition, size, technology and environmental uncertainty. The senior managers have to understand the influence of these factors on organizational efficiency and measures, which can be employed to ensure the organization optimizes its operations. Therefore, manipulating these factors and incorporating strategic directive ensures JLL continues in fulfilling the requirements of the customers and stakeholders. References April C.W. J., & Chun H.T. (2005). Relationship between strategic human resource management and firm performance: A contingency perspective. 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