Characteristics of an Effective Organization - Essay Example

PART ONE

The characteristics of an effective organization

Corporate responsibility

Effective corporations have a proper record concerning corporate responsibility. This entails environmental services and charity and at the same time gives permission to its workers to get involved in community volunteering (Banner, & Gagné, 1995). Furthermore, these firms use corporate social responsibility to enhance the public reputation of the company and at the same time, they integrate community works as a component of the core mission of the organization. Programs that demonstrate proper corporate responsibility include intern and training partnerships with local learning institutions, recycling business wastes, giving donations to the needy and provision of donations and volunteers in times of disaster. It is therefore critical for business entities to embrace the practice of corporate social responsibility and make it as the core function and object of the business since it helps strengthen its positive brand and improve its public relations that are the primary selling points of any profit making organization.

Clear direction

Forming a mission statement and enumerating company goals helps in the establishment of a precise direction of the business entity. It is on record that organizations that are effective have a very clear company direction that is well comprehended by both its clients and human resources. This extends to targeting renowned corporate figures to present the message of the company to both the members of staff and to the general public aids the workers to apprehend the chain of operations and at the same time help them to view the organization as a group that is both cohesive and that which a unified message.

Open communication

Communication is an important component of any business entity since it facilitates the flow of information for proper and timely response. Effective business entities often use open communication channels on all the operation levels. According to Industry Week, an open communication culture as a business operation is that in which the flow of info I free and easy to accessible to those within and without the business. Permitting an open communication for that information that is not confidential births out a working environment or climate that promotes participation by the clients, workers and the management team.

Member empowerment

This term is often used to describe the perception of the workers regarding their role in the organization. The capability to determine the work roles, achieve meaningful work and influence significant decisions defines the employee empowerment element. Those business entities that are regarded as being effective often apply the concept of employee empowerment to establish a cohesive working environment. This feeling within the organization is often enhanced through such things as the use of open communication channels, use of teamwork as well as performance rewards to recognize excellent performance and at the same time promote production activities within the organization. examples of rewards given by such effective organizations to their employees to promote member empowerment include the awards of company stock, permitting bonus time away from work and trophies to mention but a few.

Teamwork

Effective business entities often use teamwork as the primary basis of making complex decisions. Teamwork efforts that are practiced in successful businesses include partnerships in all the organizational levels all the way from the management to entry-level workers. This kind of approach creates an atmosphere of cooperation within the working environment of these effective organizations. Furthermore, teamwork makes it possible for the workers to diversity at an individual level. The most efficacious use of teamwork incorporates group task as an integral part of project development. It is therefore prudent for business entities to inculcate the culture of teamwork in their organizational practices since it is a landmark feature of any corporate body that is not only effective but also successful.

The aims, objectives and values of chosen organizations and why they are different

Tesco super markers

This is the leading supermarket in the United Kingdom and at the same time the second biggest grocery retailer in the whole world after Wal-Mart (Burch & Lawrence, 2005). It has diversified in selling electronics, books and software to mention but a few of the hard goods. Furthermore, the organization is a service provider that sells internet, telephone and financial services alongside DVD and music downloads (Supermarket, 2003). This organization has the following basic objectives:

• Providing clients with the best value at competitive prices,
• Meet the needs and communicate with all its customers,
• Develop its human resource talents and compensate them adequately,
• Cooperate with the suppliers to maintain high quality at low prices,
• Participate in national discussions on food safety and production related issues,
• Engage in corporate social responsibility and finally make profits.

The aim of this business entity is to be a global corporation with an affirmative domestic impact and trusted by all the parties that it deals with. This is in line with the abovementioned objectives that aim at maximizing the shareholders wealth while at the same time meeting the needs and wants of the consumers with the profit object being a long time product of consumer satisfaction. Its primary values include excellence, respect, integrity and service.

Marks and Spencer Company

Marks and Spencer Group plc is among the leading retailer stores in the United Kingdom with about 1400 stores worldwide. The multinational operates through two major segments that are International and UK (Mellahi et al, 2002). The business entity is engaged in the distribution of clothing, food and home products both online and in its stores in its two segments.

It is synonymous with the realization of hug profit margins that has sustained its steady growth and development in the market and within the industry at large (Whitehead, 1991). The aim of the business is its purpose or the reason of its existence. The company has the following objectives:

• Profit maximization or maximizing the shareholders value
• Reduction of the production costs
• Providing a conducive working environment for its workers
• Establishing a global presence for its goods and services

The primary values of this organization include integrity and excellence whereby it promotes and operates to nurture proper corporate culture among its human resources for proper working relationships.

A close look at the objectives of the two multinationals reveals some significant similarity though it is clear that they are quite different. Tesco Supermarkets has its primary objective being the satisfaction of the consumers and establishment of an efficient client management and operations system. This reveals the fact that the organization seeks to meet the needs and wants of the consumers and the profit goal will be because of achieving this aspect. This slightly conflicts with the objectives and values of the Marks and Spencer Company that seeks to maximize their profits with the element of meeting the consumer needs being second to this. It is important to underscore the fact that an effective and successful business organization will prioritize the satisfaction of the customers before considering the profit making objectives since the primary objective for the existence of any business is to meet the needs of the people (Tse, 1985).

The legal status of both organizations and the advantages and disadvantages of each type Discuss who owns and controls each organization

Both are private limited companies that are registered as per the corporate laws of the countries within which they operate. Being limited companies, this is advantageous to them in the sense that they have limited liability. By this, the individual assets of the shareholders of these companies cannot be held for the repayment of the debts owed by the organization when the assets of the organizations are insufficient to repay such debts. Furthermore, these corporate bodies enjoy economies of scale and huge market share because they are engaged in large-scale production and at the same time, they serve a large market share, which gives the duo a significant competitive advantage beyond other players in the industry. By being corporate bodies that are listed on the national stock exchanges, the organizations are also legally subjected to low corporate tax rates since they have significant number of shares listed in the stock market. This is also advantageous to the company since they are advertised by the virtue that they are listed on the stock exchanges. On the other hand, the two companies suffer in that they need huge working capital to sustain their operations and at the same time their legal status subject them to the different commercial laws that operate within the jurisdictions in which they operate some of which may be unfavorable to a significant extent hence putting such investments at risk.

The two organizations are controlled by the shareholders who are individual investors hence their status of being private limited companies. The operations and control of the companies is in the hands of the boards of directors that shape the decisions of the organization. Simply put, the organizations are managed and controlled by experts who have immense knowledge in matters of commerce and industry and this is why the two multinationals have continued to experience steady profits and efficient and effective operations (Weatherhead, 1997). The management and control of the two organizations is therefore effective and that which guarantees them of the much-desired positive results that are the maximization of the shareholders wealth and meeting the needs and wants of the consumers.