The
most common problem is for the company to fail to adapt to the environmental changes:
The business
environment has been undergoing a lot of change for the firms and they have to
force themselves to become aware of the realities in the marketplace of the
supply and demand. A failure in this regard is usually threatening for the survival
of the firm because the environment is competitive and there is a likelihood of
the competitors taking over the firm’s existing market share. The essence of
the marketplace lies in the fact that it is the center around which the firm
has to decide on the components and materials to develop into the products and
services that it plans to sell. It is one of the most common reasons why many
organizations fail because the business environment has become increasing
changeable.
The traditional management structure should prove so incompetent in
today’s microchip age:
The traditional
management system has a hierarchical form and there are many management levels
between the top management and the workers. The workers have less authority and
have to take orders from the top management for almost everything related to
operations. This may take days at time because the top management is usually
occupied with decision for the long term. The lower management does not have
much decision making authority and it all lies in the control of the top
management. All the creativity and innovation that the organization can come
with is from top management. There is not much flexibility because the top
level management is busy with most of the issues and is not that perceptive of
the changes taking place in the industry environment. The performance
appraisals are conducted on the pre-set standard and follow a specific and
formal method and so does everything in a traditional organization.
Work expansion to fill the time available:
More or less, the
organizations expand the work and entrust more functions to the job in case
there is more time available. Moreover, once the material base of the work is
expanded, more value is created for the product or service in the organization
which is proportion to increase the share in economic growth as well as
catering to the social needs. Also following work expansion is career
development by the organizations which is more like opportunities for the
existing employees. They’re provided with training in public speaking,
technical skills, computer applications and writing. This allows for the
expansion of the general human capacity. Work expansion can be done in a number
of ways. Firstly, there is merging of various tasks into one.
Administrative
function increases when the productive activity within the organization
decreases:
The administrative
function in an organization is not related to income generation but is rather
service oriented and supportive to the individuals. It allows the individuals
to focus on their immediate work rather than on the responsibilities of how to
handle them. The function is supposed to provide smooth flow of information and
it is readily available and easy to use. And hence when the productive activity
of the employees decreases, the administrative function comes into the show to
figure out the issues because it is one of the objectives to help define the
duties and responsibilities of the employees and to maintain effective
communication so as to maintain high standards of effective work. Budgeting incorporates
most of the administrative functions, beginning with the implementation of a
budget plan through the application of budget controls.
Science base is the bedrock of economic
performance:
As for science between
the bedrock for economic performance; this holds true because the analytical
skills are the base of high value added economic growth. Technological changes
renders product development, production processes and experience rapidly obsolete
and contributes to escalating investment costs as well as heightened
competitive pressures. An organization that adapts to technological changes
gains competitive advantage in the market and one that fails to do so lose its
market share. Through continuous training, employees are given an opportunity
to see things in global perspective. By using this knowledge it becomes easier
for the management team to practice strategic planning and to forecast future
demands e.g. the introduction of notebooks in the computer industry has
rendered many computer models obsolete. Those organizations that failed to
adapt to the changing needs of society and technological changes suffered a
very big blow
Change is difficult to initiate and maintain:
It is difficult to succeed at creating and
maintaining change because organizations are made of people who have formed
status quo and strive very hard for it to make it comfortable. Moreover, the
economic environment, the state of the industry, the geographical location of
the workers and the organization are important factors that affect the human
resource and also the management style has visionary leaders and the leader has
to adopt the style best suited to change so that change takes place much
longer. Your management should be a role model of the change they want to bring
and this makes it very easy for the other members of the organization to
emulate. The management team should be involved in strategic planning. The
changes should be implemented gradually which helps them to adapt to the change
rather than to fight the change.
Reference
Céline,
B, & Justine, G 2008, “Building
employees,” capacity to adapt to change,
HEC Montréal
David, M,
Gareth, D & Myles, I 2003, "Public policy and the contractual provision of training with
overlapping generations," European
Journal of Political Economy, vol. 9, no.4, pp. 519-539.
James, H, Earl, S, & Leonard, S 2009, “Employee
Motivation - The 5 Master Keys for Success,” Journal of Financial and Quantitative Analysis, vol. 47, no.13, pp.
332-342.
No comments:
Post a Comment