Creating Effective ion

Embed Size (px)

Citation preview

  • 8/6/2019 Creating Effective ion

    1/34

    CREATING EFFECTIVE ORGANISATION

    Submitted To

    Prof Renjith Krishnan

    Department of MBA

    St Aloysius Institute of Management and Technology

    Submitted

    peter

    1016027

    1-mba A

  • 8/6/2019 Creating Effective ion

    2/34

    Creating Effective Organizations

    Why is creating effective Organizations Important?

    Whether you are the CEO of a large corporation, leading a group or asmall business owner, an objective perspective is not always

    available. The symptoms of a businesss problems are always

    apparent. Treating the symptoms can temporarily alleviate the issues,but addressing the cause makes positive change permanent.

    What is Organizational Effectiveness?

    y Delighting customersy Advancing toward your visiony Fulfilling your aspirationsy Making money for you and your investorsy Developing your employees and their aspirationsy Making a positive impact on your community

  • 8/6/2019 Creating Effective ion

    3/34

    INTRODUCTION

    The implication behind the concept of leadership is that there is a

    combination of personal qualities and skills that to allow some people

    to obtain from their employees a response that is cohesive, effective

    and enthusiastic, whereas other people in the same case cannot

    accomplish such results. Every organisation needs leaders within it,

    as all of them require the right path for the achieving the goal. The

    process of planning, organizing, controlling to determine and accomplish the

    objectives by the use of people and resources. The process by which managers create,

    direct, maintain and operate purposive organizations through systematic, coordinated

    cooperative human effort .It is the coordination of all resources through the process of

    planning, organizing, directing and controlling in order to attain stated objective

    Planning is the process of making decisions about future. It is the process of

    determining enterprise objectives and deciding future courses of actions necessary for

    their accomplishment. Planning is the process of deciding what is to be done, how it is

    to be done and by whom. Planning provides direction to enterprise activities.

    Organizing is concerned with the arrangement of an organizations resources-people,

    materials, technology and finance in order to achieve enterprise objectives.

    Organization involves decisions about division of work, allocation of authority and

    responsibility and the coordination of tasks.Guiding and supervising the activities of

    subordinates is known as directing. Direction is telling people what to do and seeing

    that they do it to the best of their ability. People must be directed towards

    organizational goals.

  • 8/6/2019 Creating Effective ion

    4/34

    Staffing is the function of employing suitable persons for the enterprise. An activity

    where people are recruited, selected, trained developed, motivated and the objective of

    controlling is that actions contribute to goal accomplishment. Setting stand ards of

    performance, measuring actual performance, Comparing actual performance against

    the standard, taking corrective action to ensure goal accomplishment. Compensated for

    various positions.

    1). OVERVIEW OF CREATING EFFECTIVE

    ORGANISATIONSAn effective organization is defined as thinking differently, doing the

    Right things in the right time and getting to the future first for less.The success of any effective organization requires the co-ordinationand close integration between departments, and active contributionsof individuals within the company. This implies that any part; whetheran individual or a department of the company fails to perform its role,as it should be would considerably reduce the companyseffectiveness.

    Creating effectiveness organization can be defined as being effective,efficient, satisfying, adaptive and developing, and ultimatelysurviving. To be effective, todays organizations need to strike a

    generally acceptable balance between organizational and societalgoals. Determining effective criteria requires frequent review and

    updating. It must also adapt to new environmental demands andmature and learn in the intermediate future Creating Effectiveorganizations in the international arena .Organizations, especially

    those in turbulent environments, tend to relyon people to can theirenvironments, monitor potentially important events, interpret their

    perceptions, and report them to the appropriate organizationaldecisions makers. (Banner & Gagn, 1994).Brown argues that themost successful organizations seem to function with little

    management. The secret to their success lies in the principles of theirdevelopment.

  • 8/6/2019 Creating Effective ion

    5/34

    2). LEADERSHIPLeadership is the process of inspiring and empowering others toVoluntarily commit them to achieving the leaders visionLeadership is an influence process: The ability to motivate others to

    do something, believe something or act a certain way an effectiveleader within the organizations must have a vision and theability to empower employees to carry out their tasks and follow the 2

    A Good vision statement invites and requires the total involvement ofthe organization in carrying the ambition forward into operationthrough a process of interpretation and refining for example, in AT &

    T all the company was challenged to understand and make operationalthe anytime, anywhere statement.

    According to Drucker (1999), the only definition of a leader is

    someone who has followers. To gain followers requires influence butdoesnt exclude the lack of integrity in achieving this. Indeed, it can

    be argued that several of the worlds greatest leaders have lackedintegrity and have adopted values that would not be shared by many

    people todayOn the other hand, the manager needs a fundamental strategy forachieving the vision for the organisation for example, Haagen-Dazsnew strategy in Europe, which contained revising job interviews tomake them more like theater auditions and creating a new

    management position called Leadership is crucial at all positionswithin the organization, from main board to the shop floor. Accordingto there are at least four major variables now known to be involved in

    leadership:Effective organizations in the international arena

    The characteristics of the leader. The attitudes, needs, and other personal characteristics of the

    followers. The characteristics of the organization for instance, its structure,

    its purpose, and the nature of the task to be performed. The social, economic and political environment.Every leader within the effective organizations must take particularresponsibilities. These responsibilities are as follows: Vision: The vision must include well-specified objectives and goals.Managers (leader) have techniques and methods for developing

  • 8/6/2019 Creating Effective ion

    6/34

    the vision for instance, budgets, schedules, statement of work,etc. Georgiades and Macdonell claims that vision isabout having the picture of the cathedral as we carve the granite(or perhaps plane the pews or even lay the pipes for the central

    heating). Strategic vision can be so broad that they convey littlemeaning or guidance to people deep in the organisation Communication: Communicate the vision to everybody within

    the organisation is crucial because every member of the companyneeds to known goals and objectives and the path to achieve them. Motivation: Motivation is very important to leadership. Without

    motivation the teams ability to develop is strictly obstructed.Leaders have to identify factors of motivation within the company

    so that them satisfy needs such as economic incentives, security,

    friendships, status, etc. According to Mullins theunderlying concept of motivation is some driving force withinindividuals by which they attempt to achieve a goal in order tofulfil some need or expectation. Direction: Leaders must conserve a constant direction in the searchof goals and objectives. The idea is concentrate all the movementsand actions of the firm in the right direction. Support: Managers must provide value-added support to employeesto assist in accomplishing the project goals and objectives. In

    addition, managers must do whatever to help employees performtheir works effectively and efficiently.

    Team Building:Team buildings in many manners are an image of

    the qualities and responsibilities of a leader. If the leaders do nothave an effective team, the likelihood of a successful plan decreases.

    Some people like Lee Iacocca of Chrysler Corporation, TetsuyaKatadaof Komatsu, Herb Kelleher of Southwest Airlines, Christopher

    Sinclairof PepsiCo influence others so well that they seem to benatural leaders.This usual consideration can be based oncharacteristics for instance,intelligence, assertiveness and physicalattractiveness.Traits Associated with Effective Leadership

    y Drive

  • 8/6/2019 Creating Effective ion

    7/34

    High level of effort;relatively high desire for achievement; highenergy; persistence;initiative

    y Desire to LeadStrong desire to influence and lead others; willingness to takeresponsibility

    y Honesty and IntegrityTrusting relationships with followers; truthfulness; high consistency

    between words and actions

    y Self-confidenceAbsence of self-doubt; self-assurance that convinces followers of therightness of the leaders goals and decisions

    y IntelligenceAbility to gather, synthesise, and interpret; large amounts ofinformation; ability to create visions, solve problems, and make good

    decisions

    y Job-relevant KnowledgeHigh level of knowledge about the organisation, industry, and

    technical matters related to the groups activities

    3) Creating Effective organisations in the international arena

    On the other hand, Mullins (1996) argues that leadership style is the

    wayin which the functions or leadership are carried out, the way inwhich themanager typically behaves towards members of the group.Fisher (2006)argues that real leaders are not only prepared to revealtheir weaknesses,because they know they are not super-human, but to

    use them to theiradvantage.There are many ranges to leadership andmany possible manner ofexplaining leadership style for example,charismatic, participative,dictatorial, unitary, benevolent, abdicatorial,consultative andbureaucratic.The style of leadership can be classifiedin three items and are as follows:(Based on Mullins, 1996)

    The Authoritarian or Autocratic style. Is where the centre of

    power is with the manager, and all interactions within thecompany move in the direction of manager.

  • 8/6/2019 Creating Effective ion

    8/34

    The Democratic style.Is where the heart of energy is more with thegroup as a whole and there is greater interaction within the group. Theleadership functions are shared with members of the group and themanager is more part of a team.

    A Genuine Laissez-faire style.Is where the manager checkthat members of the group are working well on their own. Themanager consciously makes a decision to pass the focus of power

    to members, to allow them freedom of action and not to interfere;but is readily available if help is needed.According to Mullins (1996, p. 255) the effectiveness of the leader is

    dependent upon meeting three areas of need within the work group:

    Task functions involve

    Achieving the objectives of the work group

    Defining groups tasks Planning the work Allocation of resources Organisation of duties and responsibilities Controlling quality and checking performance Reviewing progress

    Team functions involve Maintaining morale and building team spirit The cohesiveness of the group as a working unit

    Setting standards and maintaining discipline Systems of communications within the group Training the group

    Appointment of sub-leaders.

    Individual functions involve

    Meeting the needs of the individual members of the group Attending to personal problems

    Giving praise and status Reconciling conflicts between groups needs and needs of the

    individual Training the individual.

  • 8/6/2019 Creating Effective ion

    9/34

    4. EFFECTIVELY MANAGING CULTURALLYAccording to Hodgetts (2003) a number of specific guidelines foreffectively managing culturally diverse groups have been identified.

    Here are some of the most useful: Team members must be selected for their task-related abilities andnot solely based on ethnicity. If the task is routine, homogeneous

    membership often is preferable; if the task is innovative, multiculturalmembership typically is best.

    Team members must recognize and be prepared to deal with their

    differences. The goal is to facilitate a better understanding of cross-cultural differences and generate a higher level of pensamiento &gestin Effective organisations in the international arenaperformanceand rapport. In doing so, members need to become aware of their ownstereotypes, as well as those of the others, and use this information to

    better understand the real differences that exist between them. Thiscan then serve as a basis for determining how each individual membercan contribute to the overall effectiveness team. Because members of diverse teams tend to have more difficulty

    agreeing on their purpose and task than members of homogeneousgroups, the team leader must help the group to identify anddefine its overall goal. This goal is most useful when it require

    members to cooperate and develop mutual respect in carryingout their tasks.

    Members must have equal power so that everyone can participatein the process: cultural dominance always is counterproductive. As a

    result, managers of culturally diverse teams distribute poweraccording to each person s ability to contribute to the task, not

    according to ethnicity. It is important that all members have mutual respect for eachother. This often is accomplished by managers choosing of equalability, making prior accomplishments and task-related skillsknown to the group, and minimizing early judgments based onethnic stereotypes.

  • 8/6/2019 Creating Effective ion

    10/34

    Because teams often have difficulty determining what is a good orbad idea or decision, managers must give teams positive feedbackon their process and output. This feedback helps members to seethemselves as a team, and it teaches them to value and celebrate

    their diversity, recognize contributions made by the individualmembers, and trust the collective judgment of the group.

    5. CASE STUDIES OF LEADERSHIP IN CREATING

    EFFECTIVE ORGANISATIONSThe following examples of leadership are models of Creating

    effective organisationthat have leader with many skills such as visionof the future, goodcommunicator and motivator, self-confidence in

    decision-making, solve problems, and make good decisions and so on.

    For komatsu in 1989 worldwide demand for constructionequipment was down, competition was increasing, and Komatsus

    profits were in a steady decline. Tetsuya Katada (Komatsuspresident) saw the situation and decided that Komatsus managersneeded to go out and see the needs and opportunities and operatein a creative and innovative way. In other words, Katada wantedeveryone to stop, and concentrate simply on catching up withCaterpillar (Main competitor).At meetings and discussions, Katada

    challenged managers at severallevels to find ways for the company todouble its sales by the mid-1990s.Furthermore, Katada encouragedmanagement at all levels to find newgrowth opportunities through

    expanding geographically and leveraging competence. Katadasobjective was to create an organisation that couldattract and stimulate

    the best people. In 1979 the chrysler corporation hired Lee Iacocca.

    chrysler had a huge inventory of low-mileage cars at a time ofrising fuel prices, and was faced with bankruptcy. Iacocca appealed

    to the federal government for aid, gambling that it would notallow chrysler to fail when the national economy was alreadydepressed. Although his request sparked intense debate over therole of government in a market economy, congress in 1980 agreedto guarantee US$1.500.000.000 in loans if the firm could raiseanother US$2.000.000.000 on its own. Iacocca responded by finding

  • 8/6/2019 Creating Effective ion

    11/34

    new sources of credit and by trimming operations, closing plants,and persuading labour unions to accepts layoffs and wages cuts.He then changed the companys emphasis to fuel-efficient modelsand undertook an aggressive campaign that included personal

    appearances on television commercials. By 1981 chrysler showeda small profit, and three years later it announced record profits ofmore than US$2.400.000.000.

    pepsi co. has benefited from Christopher Sinclairs leadership,which includes the commitment of his followers. In five years,Sinclair tripled the international divisions revenues.

    Effective organisations in the international arena

    Sinclair encourages his followers to do more than they thought they

    could. Moreover, Sinclair talks constantly about change and motivateshis work force to perform. Sinclair could be considered a charismaticleader because he believes in going for broke, and he revs up hismanager to do the same. His followers are enthusiastic to take up thechallenge.

    southwest airlines has grown from 198 employees in 1971to 13,000 employees and more than US$2 billion in revenues.southwests success is due to its chief executive Herb Kelleher

    that has qualities that make a visionary leader effective. As astrong communicator, he articulates his vision of giving customersexcellent service by expecting employees to help whenever and

    wherever they are needed. Moreover, as shown here, he reinforceshis vision by pitching in to help. He is able to extent his vision

    to all employees. According to an executive at Northwest AirlinesHerb has somehow managed to get union people to identify

    personally with his company. volvo trucks has worked on a global strategy for several decades.

    Beginning in the mid-1970s, the company decided to enterthe largest market for trucks, the United States. Over time, thecompany has struggled to get a significant share of the U.S. marketand at the same time integrate operations around the world into atruly global strategy. However, the competitive structure differssignificantly between Europe and the United States, and in spite

  • 8/6/2019 Creating Effective ion

    12/34

    of heavy investments, the global synergies seem far-fetched. Thiscompany illustrates clearly that entry and penetration of a marketis a learning process for Volvo, where the initial strategic logicand underlying assumptions have to be changed several times.

    Teaching Purpose: 1) Examines in detail the problems and issuesrelated to entry strategies and global strategies. 2) Looks specificallyat the evolution, however slow, toward global competition in

    an industry.

    6.MODEL OF CEATING EFFECTIVE ORGANISATION

    First of all, the model consists of a reflection on the external

    environment(Political/legal, economic, socio-cultural and technology)by management,which will result in a vision, objectives and strategieswhich in turn will betranslated into various processes in the differentdepartments (Personnel,accounting and finance, marketing and

    production). The results will be evaluated and feedback will be givento all relevant stakeholders. Leadership in this model is crucial and isvital at all levels of the companyfor the following reasons:a.Motivation of the employees at all levels within the organisationfor instance, motivated to meet their safety needs, recognition,

    appreciation, incentives, security, safe working conditions, etc.b. The vision of the leader is important because the organisation

    needs to know the right path for the future, for example, identifyingpotential markets and customers, and reducing future risks to thecompany. Moreover, these visions attract and retain good employees

    for the different areas within the company.c.Every employee within the organisation must have a leader. The

    role of every employee as leader is doing right things, identifyand resolve conflicts, problems that appear in the firm. Moreover,

    improve methods and techniques that help the organisation.

  • 8/6/2019 Creating Effective ion

    13/34

    .

    A Model of creating effective organisations

    Operating Environment of the Organization . [Selected domain operation, size,technology, business environment, cultural and socio-political context]

    Organisations choice, goals , stratergy,

    various styles of top management

    Effectiveness in acquiring resources, values addition

    ,selection of performance evaluation criteria,obtaining

    internal and external support

    contribution to larger development al goals

    contributionto largerdevelopment al goals

    Structure, infrastructure andmanagementSystem

    Assessment of performance andSupporting processes:Innovation, performance,institution building,etc

    effectiveness

  • 8/6/2019 Creating Effective ion

    14/34

    7.Creating an Ethical Organizational Culture

    The content and strength of a culture influence an organization's ethical climate and the

    ethical behavior of its members. An organizational culture most likely to shape highethical standards is one that's high in risk. Tolerance, low to moderate in aggressiveness,

    and focuses on means as well as outcomes. Managers in such a culture are supported for

    taking risks and innovating, are discouraged from engaging in unbridled competition, and

    will pay attention to how goals are achieved as well as to whatgoals are achieved.

    A strong organizational culture will exert more influence on employees than a weak one. If

    the culture is strong and supports high ethical standards, it should have a very powerful

    and positive influence on employee behavior.Johnson andJohnson, for example, has a

    strong culture that has long stressed corporate obligations to customers, employees, the

    community, and shareholders, in that order. When poisoned Tylenol (.a Johnson and

    Johnson product) was found on store shelves, employees at Johnsonand Johnson

    across the United States independently pulled the product fromthese stores before

    management had even issued a statement concerning the tampering. No one had to

    tell these individuals what was morally right; they knew what Johnson and Johnson

    would expect them to do. On the other hand, a strong culture that encourages

    pushing the limits can be a powerful force in shaping unethical behavior.

  • 8/6/2019 Creating Effective ion

    15/34

    For instance, Enron's aggressive culture, with unrelenting pressure on executive to

    rapidly expand earnings, encouraged ethical corner-cutting andeventually contributed

    to the company's collapse.

    What can management do to create a more ethical culture? We suggest a combination of

    the following practices:

    y Be a visible role model: Employees will look to the behavior of top management as abenchmark for defining appropriate behavior. When senior management is seen as taking

    the ethical high road, it provides a positive message for all employees.

    y Communicate ethical expectations: Ethical ambiguities can be minimized by creatingand disseminating an organizational code of ethics. It should state the organization's

    primary values and the ethical rules that employees are expected to follow.

    y Provide ethical training: Set up seminars, workshops, and similar ethical trainingprograms. Use these training sessions to reinforce the organization's standards of conduct,

    to clarify what practices are and are not permissible, and to address possible ethical

    dilemmas.

    y Visibly reward ethical acts and punish unethical ones: Performance appraisals ofmanagers should include a point-by-point evaluation of how his or her decisions measure

    up against the organization's code of ethics. Appraisals must include the means taken to

    achieve goals as well as the ends themselves. People who act ethically should be visibly

    rewarded for their behavior. Just as importantly, unethical acts should be conspicuously

    punished.

    y Provide protective mechanisms: The organization needs to provide formal mechanismsso that employees can discuss ethical dilemmas and report unethical behavior without fear

    of reprimand. This might include creation of ethical counselors, ombudsmen, or ethical

    officers.

  • 8/6/2019 Creating Effective ion

    16/34

    8.Creating a Positive OrganizationalCulture

    It often difficult to separate management facts from lasting changes in

    management thinking, especially early. Creating a positive culture may sound

    hopelessly nave or like a Dilbert style conspiracy. The one thing that makes us

    believe this trend is her to stay is that there are signs that management practice

    and ob research are converging.

    A positive organisational culture is defined as a culture that emphasizes building

    on employees strengths, rewards more than it punishes, and emphasizes

    individuals vitally and growth

    Building on employee strengths: a lot of ob and management practice, isconcerned with how to fix employee problems. Although an positive

    organisational culture does not ignore problems, it does emphasize showing

    workers how they can capitalize on their strengths. As management guru peter

    ducker said, Most Americans do not know what their strengths are. When you

    ask

    Rewarding More Than Punishing There is, of course, a time and place for pun-

    ishment, but there is also a time and place for rewards. Although most organiza-

    tions are sufficiency focused on extrinsic rewards like pay and promotions, they

    often forget about the power of smaller (and cheaper) rewards like praise. Creating

    a positive organizational culture means that managers "catch employees doing-

    something right." Part of creating a positive culture is articulating praise. Many

    managers withhold praise either because theyre afraid employees will coast, or

    because they think praise is not valued. Failing to praise can become a "silent

    killer like escalating blood pressure. Because employees generally don't ask for

    praise, managers usually don't realize the costs of failing to do it.

  • 8/6/2019 Creating Effective ion

    17/34

    Take the example of Elzbieta Gorska-Koiodziejczyk, a plant manager for International Paper's

    facility in Kwidzyn, Poland. The job environment at the plant is bleak and difficult. Employees

    work in a windowless basement. Staffing is only roughly one-third of its prior level, while

    production has tripled. These challenges had done in the previous three managers. So, when Gorska

    -Kolodziejczyk took over, she knew she had her work cut out for her. Although she had many

    items on her list of ways to transform the organization, at the top of her list was recognition and

    praise. She initially found it difficult to give praise to those who weren't used to it, especially men,

    but she found over time that they valued it, too. "They were like cement at the beginning, she said.

    "Like cement" Gorska-Koladziejczyk has found that giving praise is often reciprocated. One day a

    department supervisor pulled her over to tell her she was doing a good job. "This I do remember,

    yes," she said.

    Emphasizing Vitality and Growth A positive organizational culture emphasizes not only

    organizational effectiveness, but individuals' growth as well. No organization will get the best out of

    employees if the employees see themselves as mere tools or parts of the organization. A positive

    culture realizes the difference between a job and a career, and shows an interest not only in what the

    employee does to contribute to organizational effectiveness, but in what the organization does it has

    have assessed over thousands of organizations, fully one-third feel they are not learning and

    growing on their job. The figure is even higher in some industries, such as banking, manufacturing,

    communications, and utilities. Although it may take more creativity to encourage employee growth

    in some types of industries, it can happen in the fast-paced food service industry. Consider the case

    of Philippe Lescornez and Didier BrynaertPhilippe Lescornez leads a team of employees at Master

    foods in Belgium. One of his team members is Didier Brynaert, who works in Luxembourg, nearly

    150 miles from Masterfoods's Belgian headquarters. Brynaert was considered a good sales

    promoter who was meeting expectations. Lescornez decided that Brynaert's job could be made

    more important if he were seen less as just another sales promoter and more as an expert on the

    unique features of the Luxembourg market So Lescornez asked Brynaert for information he could

    share with the home office. He hoped that by raising Brynaert's profile in Brussels, he could create

  • 8/6/2019 Creating Effective ion

    18/34

    in him a greater sense of ownership for his remote sales territory."I started to communicate much

    more what he did to other people [within the company], because there's quite some distance

    between the Brussels office and the section he's working in. So I started to communicate,

    communicate, communicate. The more I communicated, the more he stated to provide material,

    says Lescornez. As a result, "Now he's recognized as the specialist for Luxembourgthe guy who

    is able to build a strong relationship with the Luxembourg clients,-' says Lescornez. What's good for

    Brynaert, of course, is also good for Lescornez, who gets credit for helping Brynaert grow and

    develop.

    Limits of Positive Culture Is a positive culture a panacea? Cynics (or should we say

    realists?) may be skeptical about the benefits of positive organizational culture. Tobe sure, even though some companies such as GE, Xerox, Boeing, and 3M have

    embraced aspects of a positive organizational culture, it is a new enough area that

    there is some uncertainty about how and when it works best Moreover, any OB

    scholar or manager needs to make sure he is objective about the benefits-and

    risksof cultivating a positive organizational culture.

    Not all cultures value being positive as much as U.S. culture does, and, even within

    U.S. culture, there surely are limits to how far we should go to preserve a positive

    culture. For example, Admiral, a British insurance company, has established a

    Minisa7 ofFun in its call centers to organize such events as poem writings, foosball,

    canker competitions (a British game involving chestnuts), and fancy dress days.

    When does the pursuit of a positive culture start to seem coercive or even

    Orwellian? As one critic notes, "Promoting a social orthodoxy of positiveness

    focuses on a particular constellation of desirable states and traits but, in so doing,

    can stigmatize those who fail to fit the template.our point is that there may be

    benefits to establishing a positive culture, but an organization also needs to be

    careful to be objective, and not pursue it past the point of effectiveness.

  • 8/6/2019 Creating Effective ion

    19/34

    9) Creating Effective Teams

    Many have tried to identify factors related to team effectiveness.

    However recent studies have organized what was once a veritable

    laundry list of characteristics into a relatively focused models about

    what makes teams effective .

    The key components of effective teams can be subsumed into 4

    general categories the first are the resources and other contextual

    influences that make teams effective. The second relates to the teams

    composition. The third category is work design. Finally, processvariables reflects those things that go on in the team that Influences

    effectiveness. What does the team effectiveness mean in the model?

    Typically, itbhas included objective measures of the teams productivity

    managers rating of the teams performance and aggregate member

    satisfaction.

  • 8/6/2019 Creating Effective ion

    20/34

    TEAM EFFECTIVENESS MODEL

    CONTEXT

    y Adequate resourcesy Leadership n structurey Climateoftrusty Performanceevaluation

    and rewardsystem

    COMPOSITION

    y Abilitiesofmembersy Personalityy Allocating rolesy Diversityy Sizeofteamsy Member flexibilityy Member preferences

    WORK DESIGN

    y Autonomyy Skill varietyy Task identityy Task significance

    PROCESS

    y Common purposey Specific goalsy Teamefficacyy Conflict levelsy Social loafing

    TEAM EFFECTIVENESS

  • 8/6/2019 Creating Effective ion

    21/34

    The 4 contextual factors That appear to be most significantly related toteam performance are the presence of adequate resources , effectiveleadership, a climate of trust and a performance evaluation and rewardsystem that reflects team contribution

    Adequate resourcesTeam are the part of a larger organization system. As such every eachwork team relies on the resources outside the groups to sustain it. Ascarcity of resources directly reduces the ability of a team to perform its

    job effectively.

    LEADERSHIP AND STRUCTURE

    Teams cant function if they cant agree on who is to do what and ensurethat all members contribute equally in sharing the work load. Agreeing

    on the specifics of work and how they fit together to intergrateindividual skills requires team leadership and structureCLIMATE OF TRUST

    Members of effectiveness teams trust other. And they also exihibittrust in their leaders. Interpersonal trust among team members facilitatescooperation reduces the need to monitor each other behavior and bondsmembers around the belief that others on the team wont take advantageof them.PERFORMANCE EVALUATION AND REWARD SYSTEM

    The traditional individually oriented evaluation and reward system must be modified to reflect team performance. Individual performanceevaluation and incentives may interfere with the development of high

    performance teams.

    TEAM COMPOSITIONThe team composition category include variables that relate tyo howteams should be staffed.

    ABILITIES OF MEMBERSPart of team performance depends on the knowledge, skills and abilitiesof its individual members. Its true that we occasionally read about theathletic teams composed of mediocre players who, because of excellentcoaching , determination and precision teamwork beats a far moretalented group of players

  • 8/6/2019 Creating Effective ion

    22/34

    PERSONALITY OF MEMBERS

    M any of the dimensions identified in the big five personality modelhave been shown to be relevant to team effectiveness. Team that ratehigher on mean level of conscientiousness and openness to expierence

    tend to to perform better . moreover the minimium level of teammembers agreeableness. also matters

    10)RECOMMENDATIONS

    Within the organisations leadership is crucial at all levels because everyemployee must be a leader as Lee Iacocca, Tetsuya Katada, ChristopherSinclair or Herb Kelleher. All of them have a strong vision of the future

    and they are able to extent their vision to all employees. The latter isincredibly important due to every member of the company must knowthe path, goals and objectives of the organisation.Moreover, all leadersmust be a good communicator and motivator as the different leaders thatI mentioned in the examples of effective organisation. Also, leadersmust be self-confidence for convince to the employees about his/hervision and thinking.All leaders must be active at all areas within theorganisation; they mustknow everything about the company such asexternal and internal factors. An aspect very notable in leaders likeIacocca, Katada, Sinclair and Kelleher is that they are charismaticleaders that their ideas, visions can follow by their fellows at any time.They are models of leaders in creating effective organisations.

    11)CONCLUSION

    As a result of this report we can conclude the following:

    Many organisations today are facing dramatic changes in their marketsand technologies. These often require ongoing change to processes, teamstructures and skills to maintain competitive position or meet agreedservice levels.Leadership within the organisation is increasinglyimportant. The limitsof functions of teamwork and leadership and theway in which they areincreasingly expected of people at all levels in the

  • 8/6/2019 Creating Effective ion

    23/34

    hierarchy are, however,new.Every manager needs to be team membersas well as team leaders. Likewise,team members need to be able to shareleadership as appropriate.Democratic styles of leadership are more

    probable to produce effective groupperformance. Different style of

    leadership may be requiring at different levelof an organisation, itdepends of the situation or environment of the firm.In an effectiveorganization, work is planned out in advance. Planning means setting

    performance expectations and goals for groups and individuals tochannel their efforts toward achieving organizational objectives. Gettingemployees involved in the planning process will help them understandthe goals of the organization, what needs to be done, why it needs to bedone, and how well it should be done.In creating effective

    organizations, managers and employees have been practicing good performance management naturally all their lives, executing each keycomponent process well. Goals are set and work is plannedroutinely.Progress toward those goals is measured and employees getfeedback.High standards are set, but care is also taken to develop theskills neededto reach them. Formal and informal rewards are used torecognize thebehaviour and results that accomplish the mission.

    Creating Effective organisations in the international arena Goodperformance is recognized without waiting for nominations for formalawards to be solicited. Recognition is an ongoing, natural part of Day-to-day experience. A lot of the actions that reward good performance likesaying Thank you dont require a specific regulatory authority.

    Nonetheless, awards regulations provide a broad range of forms thatmore formal rewards can take, such as cash, time off, and manynonmonetary items. The regulations also cover a variety of contributionsthat can be rewarded, from suggestions to group accomplishments.

    Successful an effective organization in the international arena addressesthe operational and execution issues enterprises face when lookinginternationally for new opportunities: Anticipating the impact of operating globally in economic andoperational terms. Managing the key issues and risks of sourcing and manufacturing

  • 8/6/2019 Creating Effective ion

    24/34

    internationally. Taking advantage of the rapid growth for products and servicesglobally.Attend successful an effective organizations in the internationalarena to develop an action plan for growing, competing, and operating

    globally.What is Organizational Effectiveness? (Based on Creating EffectiveOrganizations, 2009) Delighting customers Advancing toward your vision Fulfilling your aspirations Developing your employees and their aspirations Making a positive impact on your community

    There are many aspects of leadership, and many traits that good leadersdisplay, for instance: Intelligence, physical attributes such as strength,stamina and courage, good communication, experience, training andrewards (Peter Wear, 2006).

    Finally, every creating effective organisations needs leader with manyskills forinstance, a good vision of the future, intelligent, goodcommunicator,motivator, self-confidence, honesty, etc. Ramaswami(2005) argues thatif motivation is low, performers become lethargic.

  • 8/6/2019 Creating Effective ion

    25/34

  • 8/6/2019 Creating Effective ion

    26/34

  • 8/6/2019 Creating Effective ion

    27/34

  • 8/6/2019 Creating Effective ion

    28/34

  • 8/6/2019 Creating Effective ion

    29/34

  • 8/6/2019 Creating Effective ion

    30/34

  • 8/6/2019 Creating Effective ion

    31/34

  • 8/6/2019 Creating Effective ion

    32/34

  • 8/6/2019 Creating Effective ion

    33/34

  • 8/6/2019 Creating Effective ion

    34/34