Organizational Effectiveness - Essay Example

Organizational effectiveness Introduction: In order to be effective within an intensely competitive global framework, organizational changes are essential in order to ensure that bottom line profitability and productivity is maintained. This cannot be achieved merely by improving the quality of the product. The expanded Loyalty model is based upon ensuring customer and employee loyalty through the implementation of organizational changes to bring out more effective functioning that produces satisfaction.

The importance of leadership:Interactive management through effective leadership is an essential part of ensuring that the employees of a Company are motivated and through their efforts, succeed in transforming the prospective client who enters into a business transaction with an organization into an active and loyal customer.(Dufour and Maisonnas, 1997). Customer loyalty is vital because retaining the existing customer is less expensive as compared to wooing new customers. Traditional hierarchical systems of leadership are yielding way to transformational leadership.

The older systems were stiff and bureaucractic, often impacting negatively upon the organization by bogging down the timely delivery of efficient service and implementation of policy decisions. But transformational leaders operate along a more diffused style of networking within the organization. They have vision, realize the need for change and inspire others to work cooperatively towards a common goal. (McCollum 2005). Therefore, organizational structure needs to be changed to introduce more networking rather than a hierarchical framework.

Improving Quality of Service:Customer loyalty is conditioned to a great extent by (a) the level of service received as a function of the expectations of the customer and his perception of the service given to him (Parasuram et al, 1994). Understanding and anticipating present and future customer expectations must be a vital part of organizational strategy in order to ensure maximum efficiency in the provision of service.(Szeinbach et al,1997). Therefore, to improve organizational effectiveness, the model must also incorporate measures to assess customer expectations through a detailed analysis of customer preferences and knowledge of market trends.

Furthermore, the model may also incorporate additional measures such as bonuses and incentives to encourage existing customers to stay loyal to the Company. Regular customers provide free. Word of mouth publicity for a business, they are less expensive to service because they are already familiar with existing company procedures and satisfied with the Company’s services. Loyal customers may also choose to purchase additional products form the business, thereby aiding its productivity.Improving employee loyalty:Customer loyalty also impacts upon employee loyalty, since older customers are likely to have a more pleasant relationship with the Company, making it easier for employees to work with them.

Measures taken to improve organizational effectives by understanding factors that motivate employees and empowering them accordingly can result in gains for the Company, through satisfied, happy employees who in turn transmit a happy, positive image to customers of the Company. Introducing reward systems for productive employees who exercise valuable initiative and make creative contributions, helping customers solve their problems, is likely to improve organizational effectiveness in the long run.

(Herzberg 2003).Thus, a model for improving organizational effectiveness must include all of the above measures in order to improve the productivity and profitability of the business. References cited:* Dufour, J-C., & Maisonnas, S. (1997). “Marketing et services: Du transactionnel au relationnel”. Sainte-foy, Quebec: Les presses de lUniversité Laval.* Herzberg, F. (2003). One more time: How do you motivate employees? Harvard Business Review, 81(1), 87-96.* McCollum, Pam.

Review of Literature on Leadership An Excerpt from the New Book, “The Ohtli Encuentro - Women of Color Share Pathways to Leadership”IDRA newsletter. [Online] Available at: http://www.idra.org/Newslttr/2005/Jun/Pam.htm, accessed 10/21/2005* Parasuram, A., Zeithaml, V., Berry, L. (1994). “Reassessment of Expectations as a Comparison Standard in Measuring Service Quality: Implications for further research.” Journal of Marketing 58(January): 111-124.* Szeinbach, S. L., Barnes, J. H., & Garner, D. D. (1997).

Use of pharmaceutical manufacturers value-added services to build customer loyalty. Journal of Business Research, 40(3), 229-236.