Managing People and Organizations - Report Example

Managing People and Organizations Name: Institution: Date: Word count: 2391 Table of Contents Table of Contents 2 Background 3 Introduction 4 Discussion 4 Conclusion 10 References 12 Background Jones Lang LaSalle began in 1783 in London when Richard Winstanley set up an auctioneer and he was succeeded by James, his son, in 1806. JLW commenced its global expansion in 1957 through opening offices in Australia. The company later expanded to Singapore, New Zealand, Hong Kong, Kuala Lumpur as well as Tokyo. In Europe the business expanded into Ireland, Scotland and the rest of the European Continent. Since then the company has grown to other parts of the world like America (Swink & Nair, 2007). The company operates on seven countries in America and in 16 countries in Asia Pacific region. The company has grown robustly to what it is today. The company was listed as among the most ethical companies since 2008 by Ethisphere. The company outsources real estate services as well as offshore services to the centers of excellence across the globe. The group has employed about 550 strategic consultants and 2500 project managers. The company has about 400 lease administrators and over 4000 transaction specialists. No organization can operate independently of the outside world. There are important contingency factors that affect its operations. Jones Lang LaSalle being a large organization is affected by various contingency factors that have to be considered by managers to ensure productivity and profitability (Codita, 2011). The company operates in an environment that is highly competitive. The environment is a major contingency factor that cannot be ignored by the management of Jones Lang LaSalle. In order for the company to realize its long term goals and objectives, it has to take serious all the contingency factors affecting its operations. Introduction Contingency factors refer to factors which impact on the company’s tactical, strategic, contingency and operational planning. Contingency factors are most important in structural decisions, and are part of primary elements of contingency theory. There is no best way or chosen path to lead a company or organize a corporation. The contingency theory explains that the best course of action relies on the external and internal environment factors that impact an organization. Leaders have the mandate of effectively applying their chosen styles of leadership to particular situations and have the capacity of to improvise with regard to decision making. Jones Lang LaSalle is a good example that shows the use of contingency theory as well as open system to its operations (Codita, 2011). This assignment explores the contingency factors in Jones Lang LaSalle real estate group and how managers can focus on the contingency factors to ensure growth and expansion. Each contingency factor that affects the company has been discussed while providing a way in which the management can enhance the operations of the company. The organization design has to be determined by contingency factors that affects the operations of the company. The management of Jones Lang LaSalle real estate group cannot ignore the external environment or any other contingency factor with a bearing on its business. Discussion There several key contingency factors that have to be considered by managers at Jones Lang LaSalle in the organizational design process to make sure that they have the best vehicle to realize performance. The most relevant contingency factors that influence organizational design comprise of strategy, environment, size, people, and size (Harvey, 2005). The managers have the mandate for organizational design; they study contingency factors affecting organizational design and proceed to come up with a structure that will accommodate the identified contingency factors. Management contingency approach is based on the premise that effectiveness in management is contingent, or dependent on the interaction between management behaviors’ application and the specific situations. In other words, the approach to management has to change considering the prevailing circumstances at time of operation. Contingency theory holds that leadership effectiveness is made up two elements which include the circumstances and relation motivation or task motivation (Scott, 2002). Managers have to be aware of the circumstances that the organization is operating in. the open system allows maximum interaction with the outside world. The environment has a bug role to play in open system. It offers the various resources like people that ensure sustenance of the organization and ensure change and long term survival. Organizations have to fit in environments within which they operate. Jones Lang LaSalle real estate group has the opportunity to grow and expand further if it considers the importance of contingency factors within its operation (Morgan, 2007). Modern day organizations cannot ignore what is happening in their environment. People or Human resource is a contingency factor that has to be considered highly by managers at Jones Lang LaSalle. The organizational culture at Jones Lang LaSalle (JLL) encourages working in groups, people value flexibility and shared decision making. The company’s CEO emphasize on the importance of human resource or people factor to JLL. He stresses that they will be adding teams and people as opposed to more offices in the US, Australia and Europe. This means that the management targets an open system that allows the workers to interact freely without concentrating much on office positions. JLL is bent on avoiding or reducing bureaucracy and instead encourage innovation and creativity through autonomous groups (Morgan, 2007). The company management is still contemplating on what to engage in within Africa. Jones Lang LaSalle management has to look for ways of motivating workers to be more productive and focus on growth. People and productivity are important internal factors that define the success of any organization. Workers who are not motivated can be disoriented and quit to look for challenging jobs that are fulfilling. The environment is a key contingency factor at Jones Lang LaSalle. The environment shapes the strategy that will be used by the company in any particular market. Environmental contingency factors are mostly associated with contingency planning or risk. Environments that are certain require more vertical as well as mechanistic organizational designs. On the other hand, uncertain environments are best suited with more adaptive and horizontal organizational designs. Jones Lang LaSalle operates in uncertain environments like Australia, China and America (Swink & Nair, 2007). It is evident that there are challenges like the shambolic Labor government, dwindling resource investment as well as questions concerning China. The company had the worst leasing record as explained by the CEO, Colin Dyer. The unpredictable political environment compounded by the some unfamiliar market environments calls for the use of horizontal design in its structure. This is depicted in its organizational structure that is majorly horizontal. The environment of corporate real estate has been unstable (Codita, 2011). The genesis of the financial global crisis was the bubble in the real estate market in the United States of America which spilled to other sectors and hugely affected the banking industry. The kind of environment that the company is operating in is very important to decision making-particularly the difficulty of decision making in an unpredictable or uncertain environment. In the same way, the predictability and stability of the environment have a direct impact on the capacity of the organization to effectively function (McLaughlin & Talbert, 2001). An environment that is unstable changes rapidly and in the same breath is less predictable and calls for two requirements. Firstly, the organization has to aggressively adapt to change, for which it requires to be responsive and flexible. Secondly, the organization needs more coordination among the departments. The political environmental in Australia and Asia pacific region requires an organization like JLL to be responsive and adaptive in the unpredictable environment. The economic environment is also unstable and the CEO confides his fears about the rising debt costs while quantitative easing is tapered in the United States. However, the dramatic impact the taper threat has had on economies and currencies is positive. Consequently, the environment is a crucial contingency factor that cannot be ignored by JLL (Swink & Nair, 2007). The company has to understand the environment that is operating in to avoid being overtaken by the events in the market. The prevailing conditions in the Australian market cannot be the same as the conditions in an American market. This means that the company has to be responsive and adaptive to ensure that it evolves with the changing trends in the market and the dynamic needs of the consumer demands (Ghofar & Sardar, 2014). The global financial crisis demonstrates how unpredictable the economic environment can be and calls for managers to be dynamic as well as take the environment contingency factor very serious as the design long-term goals for the company’s growth. Mr. Dyer acknowledges that the company is experiencing a boom-time following global financial crisis. The CEO emphasizes on improving margins, focusing on serving their clients, gaining market share as well as participating in future profitable growth investment (Ghofar & Sardar, 2014). This shows the company’s preparedness in operating in a dynamic environment that is not easily predictable. Technology comprising of the use of equipment, knowledge, and work methods in the process of transformation is a vital considerations within organizational design. Some type of technology can be applied in converting resources into outputs in organizations (Wagner-Tsukamoto, 2003). Technology applied in manufacturing of products determines the type of the organization with the regard to the production system. Jones Lang LaSalle has been positively affected by technology. Whereas organizations tend to grow more mechanistic as they advance in size, designs have to be applied in allowing creativity and innovation in the versatile and changing environments. The impact of technology to Jones Lang LaSalle cannot be overemphasized. At JLL online retailing has grown rapidly in the last ten years. The traditional retail operators are challenged by advances in technology. Nevertheless, the many of these retailers has quickly adapted and provide a multichannel approach (Putnam & Jablin, 2004). Online retailing has had a huge impact on the Australian industrial sector. Jones Lang LaSalle has no option but to invest more in technology in order to realize expansion. JLL takes business Intelligence and Knowledge as key factors in technology. In 21st Century every organization has to appreciate the importance of technology in carrying out business. As JLL focuses on more people and less office, it is likely to be inclined towards virtual offices across continents and encourage the use of technology in communication as well as marketing. Online marketing provides an opportunity to reach out to clients that are outside Asia-Pacific and America (Harvey, 2005). Customers can learn about the services and goods offered by the company before physically inspecting the company’s premises. Technology increase connectivity and makes doing business easier. Strategy is another contingency strategy that is important to Jones Lang LaSalle. Structure follows strategy since organizational structures are created to accomplish objectives through implementing the strategies. When a company changes its strategy, then its structure has to change. Strategies are developed at the corporate level based on the strategic goals or objectives and mission of the company (Morgan, 2007). The company’s strategy shows the intention or desire of the company to grow, expand and increase its capacity of serving more customers in the most effective way possible. For Jones Lang LaSalle growth is paramount. Penetration into new markets and increasing market share seems to be the main target of Jones Lang LaSalle management. Jones Lang LaSalle’s research figures in the Australian retail markets demonstrates that a rental growth recovery in the CBD as well as bulky homemaker retail sectors. This illustrates that the focus on growth by the company is yielding fruits. The group looks for ways of expanding through addition of more service lines (Codita, 2011). The company is carrying out investigation to explore opportunities in higher education, aged care, and the government work. The company CEO concedes that the company will spend the coming years pursuing growth. The structure at Jones Lang LaSalle is service oriented. The company has to concentrate on providing high quality services to all of its customers across different regions. The corporate culture of Jones Lang LaSalle has to emphasize on the important qualities of integrity and providing the best service to customers. Differentiation will allow the company to serve several product lines and enhance its growth as well as profit margins. The emphasis on a flat organizational structure is to enhance quick decision making and encourage managers to take the initiative in every situation. The act of waiting to receive directions from the top management in a bureaucratic environment delay important decisions that have to be made quickly (Sila, 2007). The management has to focus on delivering what the customers want within the given period. Time utility is important in service delivery. The size of the organization is another contingency factor that determines its level of operation. The size will be defined by the number of workers employed by the organization. Huge organizations differ in structure as compared to small-sized organizations. They further differ in terms of rules, division of labour, performance appraisal, rules and regulations as well as procedures of budgeting. JLL has over 58,000 employees across different regions in the world. As the company diversifies geographically to other regions, it needs to recruit more employees to meet its demands (Codita, 2011). The size of the organization provides an opportunity for the company to diversify into other regions. Conclusion The understanding of the impact of contingency factors on an organization have to help marketing managers and policy-makers in coming up with a suitable strategy to realize the objective, goals and mission of the company. The policy-makers have to ensure that consumers can make the good choices and go ahead to choose the best. Jones Lang LaSalle management has to be aware of contingency factors that very important to its development. The service oriented structure and commitment to growth enables the company to focus on providing high quality services to its customers. Technology, strategy, human resource, size of organization and environment are the main contingency factor that determines organizational design as Jones Lang LaSalle real estate group. As it focuses to grow into new markets and increase market in existing markets, the management at JLL has to take very serious the contingency factors affecting their operations. The management has to encourage virtual offices as opposed to physical buildings. The open system will encourage communication and give chance to innovation and creativity to thrive. The company has an opportunity to grow to other parts of the world and fit into any environment as long as the contingency factors are considered. References Codita, R. (2011). Contingency Factors of Marketing-Mix Standardization: German Consumer Goods Companies in Central and Eastern Europe, London: Springer Science & Business Media. Ghofar, A. & Sardar, M.N. I. (2014). Corporate Governance and Contingency Theory: A Structural Equation Modeling Approach and Accounting Risk Implications, New Mexico: Springer. Harvey, D. (2005). The New Imperialism, New York: Oxford University Press USA. McLaughlin, M.W. & Talbert, J.E, (2001). School-teaching in context. Chicago: University of Chicago Press. Morgan, G. (2007). Images of organization, Thousand Oaks: Sage Putnam, L. L., & Jablin, F.M. (2004). New Handbook of Organizational Communications: Advances in Theory, Research, and Methods. London: Sage Publications Inc. Scott, W.R. (2002). Organizations: Rational, natural, and open systems. Upper Saddle River, NJ: Prentice Hall. Sila, I. (2007). Examining the effects of contextual factors on TQM and performance through the lens of organizational theories: An empirical study, Journal of Operations Management, 25: 83-109. Swink, M. & Nair, A. (2007). Capturing the competitive advantages of AMT: Design manufacturing integration as a complementary asset, Journal of Operations Management, 25 (3): 736-754. Wagner-Tsukamoto, S. (2003). Human Nature and Organization Theory, London: Edward Elgar Publishing. Read More