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Performance management system
A key aspect of performance management entails managing staff members and managers, given that their performance would have a significant effect on the company’s performance altogether. In this posting, the student is exactly right by pointing out that employee rewards for performance should actually be linked directly to goal setting, employee development, competency measures as well as team performance and helps workers to feel empowered.
The student states that rewards could be delivered in different ways, which is very true. A reward system basically comprises all the psychological, non-financial, and financial payments that a company offers to its staff members in exchange for the work they carry out (Aguinis, 2012). Not every employee is motivated by money and therefore it is important to also have non-monetary reward methods such as flexible working patterns.
Performance management system
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Linking performance to distribution of incentives, bonuses and salary contributes effectively to talent management and helps to motivate people. Researchers have reported that when executed well, pay for performance could actually motivate employees to do their work tasks well (Chiang & Birtch, 2012). In addition, the student is also correct by stating that an organization should set attainable goals for its employees and give support and encouragement to the employees to achieve the goal and then reward them after they have achieved the goals as this would demonstrate commitment from both sides.
On the whole, the main objectives of having a reward scheme are as follows: to conform to legal regulations; to motivate staff members; and to be ethical. Other objectives are to support the corporate goals by aligning the goals of the company with the goals of the staff members; to align the risk preferences of employees and managers with the risk preferences of the organization; and to ensure that the company can recruit and retain an adequate number of staffs with the appropriate skills (Mujtaba & Shauaib, 2010).
References
Aguinis, H. (2012) Performance management, 3rd ed. Upper Saddle River, NJ: Pearson Prentice Hall. Chapter 10, ‘Reward systems and legal issues’
Chiang, F, & Birtch, T. (2012). ‘The Performance Implications of Financial and Non-Financial Rewards: An Asian Nordic Comparison’, Journal Of Management Studies, 49, 3, pp. 538-570, Business Source Complete, EBSCOhost, viewed 8 December 2015.
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Arguments for and Against the Bottom of the Pyramid Strategy
Overview
The arguments for and against the bottom of the pyramid approach are well used in the argument. Greedy behaviours contribute to the company management taking advantage of the poor as a way of exploring new markets that have not been explored to gain more profits in return. Ensuring that the stakeholders are not only the businesses but owners is a useful strategy towards preventing these acts that might not be of use to the poor.
Introduction
Marketing to the bottom of the pyramid is an act that is useful to customers because; they tend to get all that they require from companies that are seeking to cater to the needs of the poor people in the society (Beddewela & Herzig, 2013). Once the strategy is well used the poor benefits as well as the company; hence the aspect of Win-to-win is evident. Managers of companies working on the marketing to the bottom of the pyramid are advised not to focus more on profit making as it might interfere with their actual plan, which is providing products to all especially poor customers.
In most cases, marketing to the bottom of the pyramid is a win-to-win strategy for most of the companies as it seeks to ensure that consumers are provided with the right products that they require catering for their needs and then company benefits in return. This paper explains the aspect of a company using the marketing to the bottom of the pyramid to its benefit and diasnatage as a bad action that does not prove to be a social act rather a way of exploiting new business grounds.
Bottom of the Pyramid Strategy
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Arguments for the Bottom of the Pyramid Strategy
Ethical behaviour
Most of the multinationals are encouraged to do business using the bottom of the Pyramid approach; because many people in the world are very poor and catering for their needs is ethical. However, there are ethical issues that are connected to this act that results from the strategy due to some of the multinational corporations taking advantage of making profits. For success to be attained in marketing at the bottom of the pyramid strategy, CSR is very crucial in making sure that all operations are done as required.
It is true that organisations cannot make any reasonable profits from the marketing at the bottom of the pyramid, but in case they are ready and willing they can help the poor by distributing products to them accordingly. Making profits for any company that is operating using the marketing at the bottom of the pyramid only brings the issues of exploiting new markets instead of being socially responsible for helping the poor and bringing the aspect of a win to win strategy (Crane, Matten & Spencer, 2014).
Such organisations are just out to make sure that they look for new markets where they can sell their products and make money for their benefit of expansion. Individuals who earn less than $2 per day are not mostly recognised and this is the reason as to why, most of the companies are encouraged to use the marketing at the bottom of the pyramid to cater for all people in the society especially the poor (Rangnekar, 2010). Individuals who earn very little are difficult to reach to as they have very little to spend whereby; companies that want to reach them must employ the use of the marketing at the bottom of the pyramid (Filatotchev & Dotsenko, 2015).
Bottom of the Pyramid Strategy
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Some companies have become richer by using poor agents to reach the hard-to-reach villagers who instead are entrepreneurs and only do this with the aim of making profits proving to explore new dormant markets. Searching for the villagers who are hard to find with the aim of selling products to them on a profit-making basis can be referred as a way of exploring new markets for the company, not a win-win strategy. The case of eradicating poverty cannot be commercialised and if done so the it becomes a strategy to explore new markets under the marketing at the bottom of the pyramid approach (Garavan & McGuire, 2010).
Use of CSR
CSR will work to ensure that the stakeholders of the firm not only includes the media, but customers, employees, media, and government agencies are there to stop the act of commercialising the marketing at the bottom of the pyramid approach. Ensuring that the stakeholders are not only the businesses but owners is a useful strategy towards preventing these acts that might not be of use to the poor. Commercialising the marketing at the bottom of the pyramid approach will only benefit the company alone, whereas; use of CSR ensures that the approach aims at helping the poor who had been forgotten in the society.
CSR ensures that all social responsibilities of any organisation are directly connected to its strategic direction as this makes its operations aim at the set purpose alone (Gond, Kang & Moon, 2011. Through doing this, success will be obtained and all activities will work as planned to achieve the win-win strategy. It is clear to state that use of CSR by any company operating at the bottom of the pyramid will make it behave ethically and reach the poor as per the requirements. The shareholders’ interest of affirming operating at the bottom of the pyramid will be interfered with and it might be hard to subject them to the issue of profit making which is a secondary deal to them.
Bottom of the Pyramid Strategy
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Most of the companies operating at the bottom of the market approach are currently reducing their rate of emissions with the aim of making more profits and saving the environment as well. Paying off a living wage to such companies helps reduce the turnover of shareholders who might not be willing to take the profit making issue. They will, therefore, get an increased morale once they start getting paid for their services and help the company to increase its productivity (Goranova & Ryan, 2014).
Marketing at the bottom of the pyramid proves to be a more efficiency act because, better information is provided, productivity is increased and made safer to use and through doing this change will be enhanced in the whole world. It is, therefore, prudent to say that the bottom of the pyramid marketing is a great opportunity for both the seller and the buyer as they are making a lot of money in return, but exploring new markets instead of performing their social responsibility.
A company that makes profits by operating at the bottom of the pyramid is not being socially responsible as it is not catering to the needs of all the customers to their benefit. It will be providing products to customers across the globe with the entrepreneurial aim proving to be exploring new markets not helping the poor as perceived (Karnani, 2009). Any socially responsible company will be more concerned about the welfare of the poor and help them, for they have been neglected by big multinationals which only caters for the needs of the rich while forgetting the poor.
The making of profit means that a company is not socially responsible as some poor people will not afford their products, thus end up not getting that product as it was earlier planned. In some instances, a company should focus on more than just making profits that will benefit the firm alone and also focus on the less destitute in the society for they are also in need of the product as well. Doing this will save the company reputation and ensure that all plans are worked out well to attain the win-to-win strategy (Lam and Khare, 2010).
Bottom of the Pyramid Strategy
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The company will have won by saving its reputation and at the same time poor customers will have an access to the product that they could not access before. Pursuing the core of action is the right thing and has to be done by companies that are marketing at the bottom of the pyramid once they obey the set rules and regulations of operations. Companies advocating for the marketing at the bottom of the pyramid have all it takes to carry the operations without making profits and achieve their goal of providing products to customers without any stress.
Business responsibility and sustainability
A business is responsible for making sure that it advocates for good actions that lead to a better outcome and guarantees its survival for a longer period. The only way of making such plans work out is by ensuring that the organisation does not major on profit making practices rather it engages in social responsibilities to help the destitute (Prahalad & Hammond, 2002). There are principles that are encompassed by Corporate Social Responsibility of any given firm using the bottom line of the pyramid marketing approach.
The company that is making profits by operating at the bottom of the pyramid is exploiting a new market that is not good to the citizens who are being humiliated. Profit making and poverty eradication do not mix well in a given organisation while making profits will make the management forget their aim in business that is helping the poor by proving product to customers across the globe.
Provision of products across the globe implies that making of profits will make the organization be considered exploiting a new market strategy (Vo, Karen, 2013). Companies in developed countries tend to adopt the use of the CSR in making sure that they yield to the needs of the customers by proving their desired product accordingly.
Bottom of the Pyramid Strategy
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The poor customers in most of the developing countries will not be better positioned to buy such products; hence, the organisation will have made a very big mistake by exploiting them in the name of selling products to them while making profits. It will be prudent to say that such originations are exploiting a new market opportunity in the name of providing products to customers on a global level (Akter, Ray & D’ambra, 2013).
There have been many corporate scandals that are linked with the supply chain scandals globally and this means that organisations are using the marketing to the bottom of the Pyramid strategy to exploit new market opportunities. It is because of the advantage of taking marketing to then bottom of the pyramid for their use that CSR has been transformed to cover the mistakes of the entire supply chain.
Reputation and brand making have driven CSR, use to the supply chain in stopping the exploitation of the new market using the marketing to the bottom of the pyramid by various organisations (CPedersen, 2015). Use of CSR in the supply chain is very useful in matters of generating business benefits and as well as a driver of innovation to stop the malicious use of the marketing to then bottom of pyramid. The marketing to the bottom of the pyramid is considered as a win to win strategy and profit making issues will make it be a win-lose strategy as the organisation will gain while the poor customers will lose the little amount of money that they have to others.
Bottom of the Pyramid Strategy
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Code of Conduct (CoC)
The profit issue has led to CoC becoming a way of managing the CSR in the supply chain. All the internal operations will be well guided by the use of CoC to prevent the organisation from making high profits that will exploit the poor in the developing countries. There are set standard as that have been employed for use through the CoC to ensure that the marketing to the bottom of the pyramid is not profit oriented. Managing of the supply chains in the right way will reduce the issue of companies operating at the bottom of the pyramid to explore new markets through providing products while making profits as well.
CSR in the supply chain ensures that companies behave ethically towards fulfilling the required need of the societies who are looking up to them for assistance and help (Berger, Choi & Kim, 2011). Companies have to provide products to customers to keep them moving and carry out activities that will bring improvements in their lives. Greedy behaviours are the ones that contribute to the company management taking advantage of the poor while exploring new markets.
They have free products, and yet they want to sell them to make money out of a business that is not profit oriented (Chikweche, 2013). Non-profit companies should not change their aim and operate like the profit oriented companies; since, they will lose focus and join the other side of the business. Abusing the power that a company holds in the marketplace is very unethical and will benefit the management while the poor will suffer. It is ethical to support communities that are in need of help and forget the issue of profit making as such communities with time will support the companies’ in various forms.
Bottom of the Pyramid Strategy
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Link between (Human Resource) HR and (Corporate Social Responsibility) CSR
A company whose HR operations are linked to the CSR will emerge to be successful in achieving the set goal of win-win strategy. The employees concerns are well listened to under a good HRM due to better planning of job and all the organisations activities (Chipp, Corder & Kapelianis, 2012). Use of CSR in HRM guarantees equality of opportunity to all the company workers under a diversity management that aims to cater to the needs of the poor. Learning, training and development will be guaranteed and all employees will be led in the right way towards helping the poor in the society.
The employee relations will be improved under a good HRM operating under the right cover of CSR, which will guarantee ethical behaviour like catering for the poor by proving them with the products they desire. Succession planning will ensure that all the products are well distributed to customers and not issues of making profits are majored on as it is unethical to operate at the bottom of the pyramid while making profits (Habib & Zurawicki, 2010).
It is clear to say that HRM operations undergo CSR will prove to be successful in all activities undertaken by the company. HRM will not make profits at the expense of the poor if its operations are based on following the set rules in the company. CSR ensures that any company operating using the bottom of the pyramid approach attains what is required of it and avoids malicious actions that benefit the management alone.
HRM ensures that mentoring programmes are well facilitated to foster inclusion and avoid the greedy act of making profits and exploring new markets. Encouraging the employment of CSR is better in ensuring that a company does what is expected and provides the best for the poor who can’t access it due to lack of money (Majumder, 2012).
Bottom of the Pyramid Strategy
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Managing CSR in the supply chain
Use of CSR could ensure that all the required principles and codes of ethics are followed to the latter to ensure that the marketing to then bottom of pyramid win-to-win strategy guarantees an organisation to be socially responsible and avoid exploitation of new markets (Tarafdar, Singh & Anekal, 2013). Whenever supply chain is not outsourced, it implies that organisations will major on the marketing to the bottom of the pyramid to make profits and exploit new markets. Organisations whose CSR strategies have to be aligned with the purchasing practice under marketing to the bottom of the pyramid strategy are out to exploit different markets.
Critiques of code of conduct (CoC)
CoC is not very detailed and organisations take advantage of this in carrying out the marketing to then bottom of pyramid with the aim of making profits. Making of profits depends on whether it is high or low whereby; in case it is high; it will be termed as a way of exploiting new market opportunities. Failure to monitor CoC activities and to audit them as required means that the buyers and the suppliers have the opportunity of not taking their activities seriously; hence, will focus on exploiting new markets than focusing on the win to win strategy (Nathaniel, 2013).
Buying criteria and the buyer requirements might be conflicting leading to exploitation of new markets using the marketing to then bottom of pyramid . The benefits of sharing and distribution of the required cost will be uneven as CSR requirements will not be well focused on under failure to follow the required rules. The implementation of CoC in a top-down fashion makes it possible for organisations using the marketing to then bottom of pyramid strategy to make more profits and exploit new markets. This exploitation will take place mostly in the developing countries where customers can’t access the particular products (Pervez, Maritz & Waal, 2013).
Arguments against the use of Bottom of Pyramid approach
Significantly offering to the base of the pyramid is troublesome, yet it should be possible. It obliges relationship to concentrate on business stray pieces and begin their tries with an escalated comprehension of two key inconveniences in low-pay markets: changing the clients’ conduct and changing the way things are made and went on. Affiliations that put down these deterrents confound the preferences, change limits, and time included, and meander social events wind up efficiently orchestrated to accomplish the task set aside.
Bottom of the Pyramid Strategy
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Separate with center association
As an aftereffect of their colossal business recommendations, BoP-engineered practices all around can’t be executed by only a social event by submitted people –they typically require a huge availability over the alliance. To be possible, coalitions for change must make both on a level plane (uniting sensible regions inside and crosswise over affiliations) and top-down (joining different leveled power with center association).
This is a troublesome requesting for any alliance; however, is especially making progress toward gigantic association with noteworthy sunk expenses implanted in the present circumstance, which conveys a characteristic horrendousness for change. Coordination among affiliation levels just finds the opportunity to be judicious when the new activity fits in with the association’s qualities, strategies and date-books. The encounters thought reliably uncovered a refinement between upper authoritative levels, which push the development, and center association, which is required to execute it (CPedersen, 2015).
At another multinational, which connected with the BoP bit taking after a charge from its controlling shareholder, center association started to voice discontent 18 months into the task, when it wound up being clear the BoP endeavor was not an achievement in business terms. The affiliation had built up an alternate line of business with an uncommonly assigned course show that, in a manner of speaking, depended on upon a cross-part association with a grassroots pioneer.
In the perspective of center association, the affiliation gave a broad assortment of great circumstances and grants to the social pioneer, with no commitment in regards to comes about (Vo, & Karen, 2013). Heads’ disputes were released with the enlightenment that these deviations were honest to goodness because of the “social work” being finished. The way that the affiliation’s “social undertaking” had unmistakable qualities and rules than other affiliation errands started to undermine center association’s strengthen, producing a hole between top association’s affirmations.
Bottom of the Pyramid Strategy
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Conclusion
This paper explains the aspect of a company using the marketing to then bottom of pyramid to its benefit and disadvantage as a bad action that does not prove to be a social act rather proving to be a way of exploiting new business grounds. Failure to monitor CoC activities and to audit them as required means that the buyers and the suppliers have the opportunity of not taking their activities seriously; hence, will focus on exploiting new markets than focusing on the win to win strategy.
Greedy behaviours contribute to the company management taking advantage of the poor as a way of exploring new markets that have not been explored to gain more profits in return. Marketing at the bottom of the Pyramid proves that a company must focus on its goal and employ the use of CSR, which will guide the attainment of set plans ahead.
References
Beddewela, E., & Herzig, C. (2013). Corporate social reporting by MNCs’ subsidiaries in Sri Lanka. Accounting Forum, 37(2), 135-149
C Pedersen, E. R. (2015). Corporate social responsibility. London: SAGE
Crane, A., Matten, D., & Spencer, L. (Eds.). (2014). Corporate Social Responsibility: Readings and cases in a global context (2nd ed.). London: Routledge
Filatotchev, I., & Dotsenko, O. (2015). Shareholder activism in the UK: types of activists, forms of activism, and their impact on a target’s performance. Journal of Management & Governance, 19(1), 5-24
Garavan, T. N., & McGuire, D. (2010). Human resource development and society: Human resource development’s role in embedding corporate social responsibility, sustainability, and ethics in organizations. Advances in Developing Human Resources, 12(5), 487-507
Gond, J.P., Kang, N. & Moon, J. 2011. The government of self-regulation: on the comparative dynamics of corporate social responsibility. Economy and society, 40, 640-671
Goranova, M., & Ryan, L. V. (2014). Shareholder Activism: A Multidisciplinary Review. Journal of Management, 40(5), 1230-1268
Karnani, A. (2009, Winter). Romanticizing the poor. Stanford Social Innovation Review, 7, 38-43
Porter, M. E., & Kramer, M. R. (2006). Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, 84(12), 78-92
Prahalad, C.K. and Hammond, A. (2002). ‘Serving the World’s Poor, Profitably’, Harvard Business Review, September 2002, Vol. 80(9), pp.48–58
Vo, L.C. & Karen D. (2013). Classification of CSR standards in the light of ISO 26000. Society and Business Review, 8(2), 134 -144
Akter, S., Ray, P., & D’ambra, J. (2013). Continuance of mHealth services at the bottom of the pyramid: The roles of service quality and trust. Electronic Markets, 23(1), 29-47
Berger, R., Choi, C. J., & Kim, J. B. (2011). Responsible leadership for multinational enterprises in bottom of pyramid countries: The knowledge of local managers. Journal of Business Ethics, 101(4), 553-561
Chikweche, T. (2013). Marketing at the bottom of pyramid: Market attractiveness and strategic requirements. Marketing Intelligence & Planning, 31(7), 764-787
Chipp, K., Corder, C., & Kapelianis, D. (2012). Where practice meets theory: Defining and reviewing the bottom of the pyramid for south african marketers. Management Dynamics, 21(1), 18-29
Habib, M., & Zurawicki, L. (2010). The bottom of the pyramid: Key roles for businesses. Journal of Business & Economics Research, 8(5), 23-32
Majumder, M. (2012). A critical approach in understanding bottom of the pyramid propositions. Journal of Management and Public Policy, 3(2), 18-25
Nathaniel, A. A. (2013). Assessing market for multi-national corporations at nigeria’s bottom of the pyramid; hints from consumer behaviour. International Journal of Management, Economics and Social Sciences, 2(3)
Pervez, T., Maritz, A., & Waal, A. D. (2013). Innovation and social entrepreneurship at the bottom of the pyramid – A conceptual framework. South African Journal of Economic and Management Sciences, 16(5), 54-66
Rangnekar, S. S. (2010). Nano strategy: Focusing on the bottom of the pyramid. SIES Journal of Management, 6(2), 53-56
Tarafdar, M., Singh, R., & Anekal, P. (2013). Impact of ICT-enabled product and process innovations at the bottom of the pyramid: A market separations perspective. Journal of Information Technology, 28(4), 279-295
Bottom of the Pyramid Strategy
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Performance Management
It is essential to determine that there are several factors that need to be considered in improving the performance of an organization. Companies that operate internationally need to be vast with the region they operate in and consider the people within this region, their cultures, social contexts, different beliefs and practices, including the government’s rules and regulations.
In determining the approaches involved in international performance management, an organization needs to ensure that the five approaches involved are critically observed (Armstrong, pp.233-242. 2014). These approaches include: total divergence, partial convergence, partial divergence and dual system and total convergence. It is therefore essential to determine the fact that the HR management systems need to weave this approaches with the culture of a region, the environmental differences into the functions of an organization.
However, incorporating these elements in international performance management may meet some barriers that may articulately affect the performance of expatriates. These factors are therefore closely tied to the cross-cultural environment the skills and abilities to manage different tasks within different cultures and the challenges with communication which relates to the norms and practices of the region (Malek, Budhwar, & Reiche, pp. 258. 2015).
Performance management also needs to consider other external factors that affect the performances of individual and which may be out of the control of individuals with the aim of impacting good practice within an organization.
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This therefore requires the development of hybrid performance management systems that incorporates the goals and objectives of an organization aimed at promoting high performance practices within the functions of an organization (O’Sullivan, & O’Sullivan, pp. 999-.2008). In conclusion, it is therefore important that the local managers and staffs of an organization receive training to learn and understand the local lifestyles and how people socially interact with the aim of blending within a social context.
References
Armstrong, A. (2014) Armstrong’s handbook of performance management: an evidence-based guide to delivering high performance, 5th ed. London: Kogan Page. Chapter 18, ‘International performance management’, pp.233-242
This free e-book is useful as it teaches about project-management techniques in organization. The book highlights the definition of projects, some of the project management roles and responsibilities and the way projects are mapped to the same basic life structure. Similarly, the paper provides rich insights on how project-management can be organized into functional areas.
Saylor Foundation. Project management in a complex world. (2012)
The book looks at the challenges managers and consultants face when managing complex project. To achieve this, the book provide case studies and discussing the implications of the case to project-management. This overview and complexity profile is important for students as it helps in learning a lot about specific areas of project-management knowledge.
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This handbook is valuable in project-management because it provide rich content about project-management. The first section of the handbook describes working methods that can be adopted for ‘traditional Projects.’ Section two provides working methods for IT projects. The book provide practical knowledge that will enable student to understand different roles of individuals participating in a project-management.
Introduction to project management: Principles, Techniques and Tools.
UCDAVIS: Introduction to project management: principles, Techniques and Tools.
This project-management book is important for training. The text contain different concepts of project-management such as introduction, project scope, and activity planning. The paper also provides resourceful information about project monitoring and control as well as team exercise.
5. Fast Forward MBA in Project Management
Eric Verzuh. Fast Forward MBA in Project Management (2015). Wiley & Sons Canada, Limited.
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This book is comprehensive guide that help students and project managers to learn the different real-world project-management methods, tools, and techniques. The book provides enough theoretical foundation and practical information to guide you in project-management.
The Gower handbook provides an overview of vital information requisite for managing projects. The handbook is created by experienced international writers and practitioners to introduce the reader to valuable knowledge and skills that are necessary to manage projects.
Project Management Maturity Model, Third Edition.
J. Kent Crawford (2014). Project Management Maturity Model, Third Edition. CRC Press.
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This book by Kent Crawford provides valuable information that can help in improving the success of a project and boosting performance of the organization. The book comprehensively describes the Project Management Maturity Model (PMMMSM) to provide the reader with a comprehensive knowledge vital for improving organization’s project-management practices.
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Successful Project Management
Trevor L. Young (2013). Successful Project Management. Kogan Page Publishers. Business and Economics. 232 pages.
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This book covers the technical aspects of a project from the beginning to the end with practiced and tested techniques, ways to manage stakeholders, project planning, launch and execution as well as effective risk management techniques. The book is important because it assist managers to keep a balance between client’s demands, the project, the team as well as the organization.
Fundamentals of Project Management
Joseph Heagney (2012). Fundamentals of project-management. New York: American Management Association, Print book: 4th ed.
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S Keoki Sears (2015). Construction project management: a practical guide to field construction management. Hoboken, New Jersey: Wiley.
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Human Resources School of Management Theory
The human resources school of management theory is widely accepted and has been in existence for quite some time. However, even though not every manager or company embraces it today, it is undeniable that it has transformed overall management practice not only in health care settings, but in all sectors for better (Dunn, 2010). Human resources management theory, which is often referred to as behavioral management or motivational theory has a different view of the employee compared to the previous management theories that are more autocratic (Dunn, 2010).
In particular, this theory puts more focus on the individuals in a place of work instead of processes, rules and procedures. Thus, in human resources theory employees are not viewed as a mere cog in the wheel of the company, but it asserts that the prosperity of an organization can only be achieved by helping its employees to prosper (Dunn, 2010).
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The human resources school of management theory has various features, but the most important ones include:
1) communication between managers and employees is provided rather than directives emanating directly from an organization’s management, which allows interactions with one another in the decision-making process;
2) instead of employees been given quotas or been required to follow certain procedures, they are exposed to emotional and motivational tactics to promote their motivation for improved productivity;
3) the focus is in ensuring that employees are satisfied, productive and helping them invest and be loyal to the company;
4) empowering employees to be innovative through training and career development; and
5) providing appropriate rewards, appreciation and recognition methods when the company goals are achieved (Dunn, 2010).
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The components of the human resources theory can be effectively used in health care setting today by encouraging motivation of health care practitioners, which subsequently results to improved job satisfaction and increased productivity. The components can also be used to boost employees’ sense of belonging by involving them in the company’s decision-making process, which improves their morale to work and loyalty to the company (Dunn, 2010).
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McGregor’s Theory X and Theory Y of Motivation
Introduction
According to this theory, the managers view employees in different human nature concepts which he labels as Theory X and Theory Y. This theory demands the managers to reflect about their employees including issues such as how do you treat the employees? How does the manager talk to them? This is important to know because it enables the management learn where they are in the Theory X-Theory Y continuum.
In Theory X, managers assume that employees generally heat work and that the average employee is lazy, lacks ambitions and is generally lazy. This theory assumes that employee motivation is money. This type of manager is sharp contrast to Theory Y. Theory Y managers assume that employees and highly satisfied by their work and exhibit high level of creativity. According to this theory, employees seek recognition and self-fulfilment than money (Korzynski, 2013).
How I Identify and Differ With This Style
I identify with this management theory because I believe that it is very important to understand the various ways to treat human nature, as most of the employee behaviour observed in their work place is a reaction to management style. For instance, the management that believes employees avoids responsibility and must be coerced to achieve organizational goals are likely to set strict measures to the employees dictating what they want the employees to do, ways they want it done and closely monitor them.
This communicates lack of trust to the employees In this regards, the employees reaction towards work is negative, which convinces the managers that their assumptions is actually correct. On the other hand, Theory Y managers have entirely different assumptions. In this type of management, they make their decisions by consensus. This enhances the employee’s sense of belonging. By empowering the employee, the employee’s authority increases and tends to be responsible. This management encourages the employee creativity as well as teamwork and are more likely to reward them. As a result, the employee’s reaction is positive because they are treated with respect and support (Mikkelsen, Jacobsen, & Andersen, 2015).
Despite the fact that the theory explanations of management and employees performance are feasible- I highly doubt that there are managers who are purely X or Y. The theories are designed to help the management understand their natural instincts and help them appreciate their attitudes such that they can adjust to certain situations within specific environment and organizational culture.
In this regards, it’s not a question if one is a Theory X or Theory manager. Irrespective of the type of management, the work must be done. Therefore, the key to success is evaluating your organization to identify the styles that are more consistent with bringing out the highest motivation levels and improve employee’s productivity (Reed & Bogardus, 2012).
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An Example of Business That Has Applied Theory Management Style
An example of business that has applied Theory Management style in their organization is Google Company. The Google Company gives their students much freedom to ensure that they enjoy working at this company. The management looks at the employees tend to believe that they are self-actualizing as well as self-fulfilling. In Google Company, there is no micromanagement of the employees because they want them to be creative and improve their sense of belonging by making them take ownership of their work.
This company does not motivate the employees with fear of getting fired if they do not deliver quality work, but rather it encourages and empower employees to ensure that they take initiative to pursue their life goals. When the employee’s psychological needs are improved, they become motivated and are ultimately more likely to accomplish their company’s goals. The organizations push their workers to ensure that they understand their self-actualisation alongside the company’s goals set. The employees are given flexibility and ensure that the work place is comfortable. This motivates the employees to remain productive (Korzynski, 2013).
Case study
During the unstable economic times, many companies management are expected to make tough decisions regarding the organization work force structure and size. The director of Tri-County Home Health Agency is expected to implement a reduction in force (RIF) program also commonly known as lay-off. This requires a lot of interaction with the top management officials and human resource manager to evaluate the jobs that need to be eliminated and ways the employees needs to be notified about the decisions. In this case, Theory X will work effectively (Gandolfi, & Hansson, 2010).
Before implementing RIF, the management should explore all the alternatives available. This is because RIF could be a quick answer, but may not make sense in the long-term. Other alternatives such as reducing work schedules, salary reduction, freeze of hiring, reduction of employee’s contribution and natural attrition. After reviewing these options and RIF still remains the best step for the company it is important for the management to explore ways to go about it.
The following should be put into consideration, including what departments or divisions are likely to be affected or will RIF affect the entire organization. In this case, what employees are essential to keep the company running, what set of skills are very vital in the organization for future (McConnell, 2010).
One of the challenges during this process is selection of employees who will undergo lay-offs. This is complex due to the impact of disparate analysis. In this regards, the selection criteria should be based on employee’s level of experience, versatility and proficiency. The unnecessary jobs categories and classifications should be eliminated. The employee’s performance can be evaluated using data from job appraisal. To decide on whom to let go or stay, the management should strive an objective comparison of its employees. Strict compliance with the requirements must be maintained, failure to which employee’s claim of discrimination can be enforced (Gandolfi, & Hansson, 2010).
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Conclusion
To communicate to the employees, a note of warning must be given to organizations. This facilitates quick action which is important for people who are staying and those who are leaving. All information about severance should be clear to ensure that every person understands it. The management should predict the questions anticipated and address the issue from the start.
Additionally it is important to the employees sign a release to avoid the employees taking action against the organization. It is also important to communicate with the survivors as they are equally affected. Additionally, the survivors are expected to match the same output level or even higher, which calls for motivation, giving the employees sense of hope and belief (McConnell, 2010).
References
Gandolfi, F., & Hansson, M. (2010). Reduction-in-force (RIF) – New developments and a brief historical analysis of a business strategy. Journal of Management & Organization, 16(5), 727-743. http://dx.doi.org/10.5172/jmo.2010.16.5.727
McConnell, C. (2010). Umiker’s management skills for the new health care supervisor. Sudbury, Mass.: Jones and Bartlett Publishers.
Mikkelsen, M., Jacobsen, C., & Andersen, L. (2015). Managing Employee Motivation: Exploring the Connections Between Managers’ Enforcement Actions, Employee Perceptions, and Employee Intrinsic Motivation. International Public Management Journal, 1-23. http://dx.doi.org/10.1080/10967494.2015.1043166
Reed, S., & Bogardus, A. (2012). PHR. Hoboken: John Wiley & Sons
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Theory X and Theory Y of Management
Introduction
According to this theory, the managers view employees in different human nature concepts which he labels as Theory X and Theory Y. This theory demands the managers to reflect about their employees including issues such as how do you treat the employees? How does the manager talk to them? This is important to know because it enables the management learn where they are in the Theory X-Theory Y continuum.
In Theory X, managers assume that employees generally heat work and that the average employee is lazy, lacks ambitions and is generally lazy. This theory assumes that employee motivation is money. This type of manager is sharp contrast to Theory Y. Theory Y managers assume that employees and highly satisfied by their work and exhibit high level of creativity. According to this theory, employees seek recognition and self-fulfilment than money (Korzynski, 2013).
How I Identify and Differ With This Style
I identify with this management theory because I believe that it is very important to understand the various ways to treat human nature, as most of the employee behaviour observed in their work place is a reaction to management style. For instance, the management that believes employees avoids responsibility and must be coerced to achieve organizational goals are likely to set strict measures to the employees dictating what they want the employees to do, ways they want it done and closely monitor them.
This communicates lack of trust to the employees In this regards, the employees reaction towards work is negative, which convinces the managers that their assumptions is actually correct. On the other hand, Theory Y managers have entirely different assumptions. In this type of management, they make their decisions by consensus. This enhances the employee’s sense of belonging. By empowering the employee, the employee’s authority increases and tends to be responsible. This management encourages the employee creativity as well as teamwork and are more likely to reward them. As a result, the employee’s reaction is positive because they are treated with respect and support (Mikkelsen, Jacobsen, & Andersen, 2015).
Despite the fact that the theory explanations of management and employees performance are feasible- I highly doubt that there are managers who are purely X or Y. The theories are designed to help the management understand their natural instincts and help them appreciate their attitudes such that they can adjust to certain situations within specific environment and organizational culture.
In this regards, it’s not a question if one is a Theory X or Theory manager. Irrespective of the type of management, the work must be done. Therefore, the key to success is evaluating your organization to identify the styles that are more consistent with bringing out the highest motivation levels and improve employee’s productivity (Reed & Bogardus, 2012).
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An Example of Business That Has Applied Theory Management Style
An example of business that has applied Theory Management style in their organization is Google Company. The Google Company gives their students much freedom to ensure that they enjoy working at this company. The management looks at the employees tend to believe that they are self-actualizing as well as self-fulfilling. In Google Company, there is no micromanagement of the employees because they want them to be creative and improve their sense of belonging by making them take ownership of their work.
This company does not motivate the employees with fear of getting fired if they do not deliver quality work, but rather it encourages and empower employees to ensure that they take initiative to pursue their life goals. When the employee’s psychological needs are improved, they become motivated and are ultimately more likely to accomplish their company’s goals. The organizations push their workers to ensure that they understand their self-actualisation alongside the company’s goals set. The employees are given flexibility and ensure that the work place is comfortable. This motivates the employees to remain productive (Korzynski, 2013).
Case study
During the unstable economic times, many companies management are expected to make tough decisions regarding the organization work force structure and size. The director of Tri-County Home Health Agency is expected to implement a reduction in force (RIF) program also commonly known as lay-off. This requires a lot of interaction with the top management officials and human resource manager to evaluate the jobs that need to be eliminated and ways the employees needs to be notified about the decisions. In this case, Theory X will work effectively (Gandolfi, & Hansson, 2010).
Before implementing RIF, the management should explore all the alternatives available. This is because RIF could be a quick answer, but may not make sense in the long-term. Other alternatives such as reducing work schedules, salary reduction, freeze of hiring, reduction of employee’s contribution and natural attrition. After reviewing these options and RIF still remains the best step for the company it is important for the management to explore ways to go about it.
The following should be put into consideration, including what departments or divisions are likely to be affected or will RIF affect the entire organization. In this case, what employees are essential to keep the company running, what set of skills are very vital in the organization for future (McConnell, 2010).
One of the challenges during this process is selection of employees who will undergo lay-offs. This is complex due to the impact of disparate analysis. In this regards, the selection criteria should be based on employee’s level of experience, versatility and proficiency. The unnecessary jobs categories and classifications should be eliminated. The employee’s performance can be evaluated using data from job appraisal. To decide on whom to let go or stay, the management should strive an objective comparison of its employees. Strict compliance with the requirements must be maintained, failure to which employee’s claim of discrimination can be enforced (Gandolfi, & Hansson, 2010).
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Conclusion
To communicate to the employees, a note of warning must be given to organizations. This facilitates quick action which is important for people who are staying and those who are leaving. All information about severance should be clear to ensure that every person understands it. The management should predict the questions anticipated and address the issue from the start.
Additionally it is important to the employees sign a release to avoid the employees taking action against the organization. It is also important to communicate with the survivors as they are equally affected. Additionally, the survivors are expected to match the same output level or even higher, which calls for motivation, giving the employees sense of hope and belief (McConnell, 2010).
References
Gandolfi, F., & Hansson, M. (2010). Reduction-in-force (RIF) – New developments and a brief historical analysis of a business strategy. Journal of Management & Organization, 16(5), 727-743. http://dx.doi.org/10.5172/jmo.2010.16.5.727
McConnell, C. (2010). Umiker’s management skills for the new health care supervisor. Sudbury, Mass.: Jones and Bartlett Publishers.
Mikkelsen, M., Jacobsen, C., & Andersen, L. (2015). Managing Employee Motivation: Exploring the Connections Between Managers’ Enforcement Actions, Employee Perceptions, and Employee Intrinsic Motivation. International Public Management Journal, 1-23. http://dx.doi.org/10.1080/10967494.2015.1043166
Reed, S., & Bogardus, A. (2012). PHR. Hoboken: John Wiley & Sons
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An Overview of Mayo Clinic’s Facility Utilization Management Program
Mayo clinic is a sophisticated health care organization, which runs a variety of health care facilities, medical schools, and health science schools in the United States (Kashyap et al, 2016). This organization has developed an elaborate healthcare facility management program, which is aimed at enhancing the functionality of its facilities and personnel by integrating the most qualified health specialists and staff with a well-designed and equipped environment. Mayo clinic provides health care services to millions of patients from within the country and outside at a reduced cost (Miller et al., 2014).
The health care provider has facilities that are located in some of the following areas; Rochester, Jacksonville, Minnesota, Phoenix, Arizona, Scottsdale and Florida. In fact, its clinical campuses in Rochester are regarded as the world’s most integrated clinical facilities (Kashyap et al, 2016). In Mayo clinic, facility utilization and management program is based on empirical and evidence based strategies, which are aimed at providing the clinicians and other health care service providers with a conducive work environment, and the clients with high quality services, depending on urgency, and in the most appropriate and efficient manner (Kashyap et al, 2016).
Facility utilization management is also regarded as a venture that assists the management to reduce the overall costs of running the facility. It is therefore implemented in a prospective, concurrent, and retrospective approach (Kashyap et al, 2016). The health care provider has also developed the ‘at-risk care delivery program’, which is meant to increase the effectiveness of health care provision to its clients, as well as an enabling environment for the physicians and other staff members.
For instance, the at-risk care delivery program is designed to provide clients with; a well-planned discharge schedule for inpatients; provision of services with minimum variation for all clients; and a continuum of high quality care services to both inpatients and outpatients in the clinic, and all these being designed to result in minimization of any unnecessary care that could be provided to patients, and as such, an overall reduction of costs incurred in service delivery to patients is achieved (Kashyap et al, 2016).
Critique of the Facility’s Utilization Program In Light Of the Standard Utilization Management Programs
Facility Utilization Management (FUM) in this organization is evident in the systems and procedures that it has adopted as an effort to achieve health care savings. In particular, FUM is achieved through effective management of patients’ care as well as minimizing unnecessary care that is given to the patients (Kashyap et al, 2016). Physicians and other medical staff in Mayo clinic have been sensitized to the need to adhere to FUM guidelines as health service providers, as an effort to increase the accountability of medical service provision to patients who are regarded as payers in the system.
As such, they are required to provide health care services in accordance with the patient’s needs and the medical necessity that arises from the need, which in this case should be provided to the patient in the most efficient and appropriate manner at all times (Massimino et al., 2015). To achieve this, Mayo clinic has adopted the necessary technology to oversee efficient and economical service provision to patients including hospital admission programs, length of stay management, and precertification programs (Julianna et al., 2013).
All these programs are designed to provide patients with services in the most economical manner, where costs are aligned with the type of service provided. These programs have been adopted in all areas within Mayo clinic’s health facilities including medical, substance abuse, laboratory, and surgical sectors.
FUM within Mayo clinic is performed retrospectively and concurrently as deemed necessary. The specific objectives include maintaining the average number of patients who receive services, but at a reduced cost; establishing a DRG-guided inpatient health care facility; and to effect free for service outpatient services as a containment strategy to cut down on costs (Kashyap et al, 2016).
In its prospective review programs, Mayo clinic evaluates patients’ perceived medical or care need before admission, and assesses its appropriateness in terms of the proposed service requirement against any available medical information about the patient’s condition. This is followed by conducting an extensive consultation to determine the necessity for the required services or procedure (Julianna et al., 2013). If positive outcomes are obtained, then the patient is admitted for services or provided with outpatient services, if negative, alternative treatment options are discussed with the patient (Kashyap et al, 2016).
The prospective review program may be seen as a cost effective measure since it prevents the patient from being given unnecessary treatment services, and the health facility from incurring costs from the services provided, medicine and consultancy fees for physicians. The likely disadvantage in the program is that prospective reviews are bound to take lots of time if they are to be effective and meaningful (Massimino et al., 2015). In addition, the type of review may not be effective in cases where patients require emergency services, and this is because unnecessary costs would still be incurred during the diagnosis.
In its retrospective review programs, Mayo clinic conducts a detailed analysis of the duration of stay among other metrics in all its institutions and health facilities, including an analysis of the length of stay at the physician(s) level. Retrospective review is aimed at identifying any gaps in care provision, and whether there exist anomalous utilization patterns in the system (Kashyap et al, 2016). The information provided is used to make updates on clinical guidelines and registries according to care outcomes, after which necessary adjustments are made.
The retrospective review may be seen as an important venture because it helps management to optimize the health service outcomes, and at the same time achieve a reduction in the overall costs of operating the clinics. In addition, gaps in the utilization of medical staff and facilities may also be identified through the review, which would allow the appropriate adjustments to be effected. If effectively done, this would be reflected as reduced operation costs.
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In its concurrent review programs, Mayo clinic emphasizes that its physicians and the medical staff screen patient’s conditions or health service requirements before admission, which is a means of determining the medical necessity of the patient’s need requirements (Kashyap et al, 2016). Information from the screening procedure is also used to determine the appropriateness of the patients’ perceived requirement. As an effective care management program, the screening procedure helps determine the appropriate duration required in giving the patient the required service care, and this information is used to schedule the period of stay from admission to when the patient is discharged.
The concurrent review program may be seen as an effective venture in as far as cost reduction in care provision is concerned. This is so because; information obtained from the screening procedure may be used by physicians to prescribe the correct treatment. Specifically, it allows the nurses and medical staff to provide health care services in an efficient manner while focusing on the anticipated outcomes (Kashyap et al, 2016). In this case, wastage of time and medication is minimized; the clinic is also able to anticipate the appropriate bed days for scheduling.
On the other hand, the clinic is able to cut down on costs incurred through bed stays and admission services, which is because the applicability of the provision of home support services may be evaluated during the screening procedures. In addition, the patients are also able to receive high quality services and the needed attention, since the nurses and physicians would need to monitor the patient’s progress in an effort to adhere to the schedule and discharge plans.
Massimino, P. M., Joseph, M. L., & Kopelman, R. E. (2015). Hospital Performance and Customer-, Employee-and Enterprise-Directed Practices: Is the Mayo Clinic Reputation Deserved?. Journal of Management Cases, 28.
Merten, Julianna A., et al. “Utilization of collaborative practice agreements between physicians and pharmacists as a mechanism to increase capacity to care for hematopoietic stem cell transplant recipients.” Biology of Blood and Marrow Transplantation 19.4 (2013): 509-518.
Miller, R. C., de los Santos, L. E. F., Schild, S. E., & Foote, R. L. (2014). Organizational Culture and Proton Therapy Facility Design at the Mayo Clinic. International Journal of Particle Therapy, 1(3), 671-681.
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Models used in Decision Making
Introduction
This paper intends to examine models used in decision making. Models of decision making are terms used to refer to processes employed when formulating conclusions about decisions that an organization should follow through and the available alternatives to decisions. To achieve examination, the paper will look at organizational structures, which are viewed as vibrant.
Models used in decision-making
There are a number of models used in decision making within different organizations. However, this paper will focus on two models. Furthermore, the spotlight will be on the ability of two models in supporting the needs of IT in a business. The first model is rational-actor model, while the second model is organizational-process model. A rational-actor model is used when explaining decisions taken by large organizations which are centrally controlled (Kuwashima, 2014). The assumption of the model is that there is rationality in the business institution being considered (Courtney, 2013). Moreover, the model is used to show consistency within an organization and value maximization of specific constraints.
Therefore, the model shows how an organization makes rational choices. On the other hand, organizational-process model is used in examining the activities carried out by all departments of an organization. Moreover, organization-process model considers all activities an organization is involved in, as output from combined subsystems (Kuwashima, 2014). In a business there is a number of IT needs to be met. Among the needs are email communication, software for accounting, storage of files, a system for telephone communication, a reliable internet connection, as well as, a system to be used by the support team.
Consequently, a rational-actor model may not efficiently support the needs of IT in a business. Notably, rational-actor model views actions taken by an organization, as influenced by choices made by a universal rational maker of decisions (Kuwashima, 2014). The assumption by rational-actor model fails to consider that, organizations are always made of subsystems which are loosely connected. In addition, all subsystems within an organization act independently.
However, an organizational-process model may competently support the needs of IT in a business. Notably, an organizational-process model considers operations which are routinely carried out within subsystems of an organization (Kuwashima, 2014). Moreover, organizational-process model looks at the interaction between all subsystems of an organization. An organizational-process model is, therefore, more capable of making appropriate decisions on the needs of IT in a business, compared to rational-actor model (Boulesnane, & Bouzidi, 2013).
Hire-Jordan-Smith model for making decisions
I work for an organization known as Hire-Jordan Smith. At Hire-Jordan-Smith the model of making decisions used is an organizational process. The process is initiated by, the use of strategic management. Every level of organization of Hire-Jordan-Smith has a separate operations system, which is aimed at enhancing the integrity and improving communication. All operations systems have their assigned goals, which are used in the evaluation of performance (Boulesnane, & Bouzidi, 2013). At all operations systems within Hire-Jordan-Smith are managers along with supervisors. Using trust and integrity managers along with supervisors make crucial decisions within their assigned operations systems. One of the operation systems of Hire-Jordan-Smith is IT (Huang & Hutchinson, 2013).
Hire-Jordan-Smith supports its needs for business by having managers along with supervisors being responsible for differentiated operations systems in different ways. First, there is efficiency in system functionality. Communication flows well while all systems are able to integrate. Secondly, knowledge processes can be traced. Division of work enables employees to specialize and gain experience hence becomes more productive (Boulesnane, & Bouzidi, 2013).
Thirdly, there is more satisfaction of stakeholders such as suppliers of Hire-Jordan-Smith products, customers, as well as, employees and team of management. Fourth, the cost incurred by Hire-Jordan-Smith is lower. The cost that would be expected to be incurred to train employees to work in all systems is reduced with specialization.
Moreover, Hire-Jordan-Smith gets a competitive advantage globally from the use of separate operations system. First, there is efficiency in the management of relationships held with customers. It is easier for Hire-Jordan-Smith to understand its customers’ behavior. Secondly, the chain of supply of Hire-Jordan-Smith is proficiently managed. Thirdly, Hire-Jordan-Smith keeps a portal system which helps in educating and communicating with employees and customers. Fourth, due to the sufficiency of information from both customers of Hire-Jordan-Smith and its employees, it becomes easy for the management team in collaboration with supervisors to make reliable and productive decisions.
Theories of organizational structures
There are a number of theories developed for vibrant organizational structures. Two among the theories are systems theory and contingency theory (Sun, & Jeyaraj, 2013). For most IT organizations, systems theory is used to describe how various parts or divisions within an organization are interrelated. However, systems theory is also used to manage any form of change experienced by the organization (Cricelli, Grimaldi, & Hanandi, 2014).
In systems theory, any change experienced by one department of the organization leads to changes within other departments of the organization. Notably, different systems of IT organizations are not sometimes linearly integrated. Therefore, if one part experiences a small change, then another part may be affected by large changes (Cricelli, Grimaldi, & Hanandi, 2014). In most cases, IT organizations experience changes in equilibrium due to the adaptation of the organizations to changes in the environment.
On the other hand, IT organizations may choose to employ contingency theory to manage changes within the organization. Contingency theory mainly addresses effective management of conflicts experienced by an organization (Conaldi, Lomi, & Tonellato, 2012). Through the use of software, organizations are able to address issues raised by changes from the environment. Effective adaptation and change depend on management’s team ability to come up with contingent decisions when the organization is facing changes.
Vibrant Organizational structure of Hire-Jordan Smith
At Hire-Jordan-Smith, the structure of the organization is divided into eight parts. The first division is the general manager. Parts two and three are the first project manager, along with, the second project manager (Boulesnane, & Bouzidi, 2013). Part four refers to research and development team. Part five refers to the quality control team. Part six, on the other hand, is made up of the engineering team.
Part seven refers to the analysis team. The last part refers to the marketing team. Integration and cooperation of the eight teams lead to constant growth and profit generation of Hire-Jordan Smith. In a situation where changes are experienced in technology, two project managers are responsible for initiating projects to be used in developing up to date technology within Hire-Jordan Smith.
The general manager is responsible for approving any projects presented by either of the two project managers. The research and development team is mandated with carrying out informed and updated research on how to improve the existing technology of Hire-Jordan Smith. The quality control team checks whether the product presented for sale by the research team meets all the standards of Hire-Jordan Smith. After approval by the quality control team, the engineering team starts developing the proposed product (Boulesnane, & Bouzidi, 2013).
The analysis team then examines the product presented to them by the engineering team after development. One’s the product is analyzed fully, the marketing team introduces the product in the market, and pushes its sales through different methods of advertising.
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Connection betweenModels used in decision making and Vibrant Organizational structures
Models used in decision making have a close relationship with vibrant organizational structures. For instance, the organizational-process model is employed in investigating actions taken by the entire organization (van der Meer, Kurth-Nelson, & Redish, 2012). On the other hand, vibrant organizational structures are divided into different parts all aimed at achieving the same goal (Huang & Hutchinson, 2013). All parts, however, are given different roles. Notably, changes in an organization influence, the choice made for a model to be used in decision-making.
For instance, changes in the type of technology used in an organization may result in a change of choice of method to be used in decision-making by an organization, from a rational-actor model to an organizational-process model. Such a change may be necessary due to considerations made by the organizational-process model, on routine services carried out within an organization.
However, an appropriate combination of models used in decision making, with vibrant organizational structures positively impacts on an organization’s competitive advantage within the global market. Having an appropriate combination enables evaluation of the level of satisfaction for all stakeholders (Kuwashima, 2014). In addition, the functionality of the organization’s system is improved with a high reduction of cost.
For instance, at Hire-Jordan Smith, the structure of the organization is divided into eight parts. All the eight parts have different roles but rely on each other. The model used by Hire-Jordan-Smith is in most cases, the organizational-process model (Kuwashima, 2014). Whenever Hire-Jordan-Smith wants to launch any product or software an analysis of all the parts and the roles they will be involved in is made. Consequently, costs of production are reduced and communication improved, which boosts sales of any newly introduced Hire-Jordan-Smith product.
Conclusion
Through an examination of a rational-actor model, and the organizational-process model, this essay has shown that a rational-actor model explains decisions made by organizations, while the organizational-process model examines all process that is run within an organization. To analyze the process of making decisions the paper has looked at the case of Hire-Jordan Smith. It has come out clearly that, the models used in decision making are closely related to vibrant organizational structures. They both define connections maintained within organizations as they run their activities.
References
Boulesnane, S. & Bouzidi, L. (2013). The mediating role of information technology in the decision‐making context. Journal Of Ent Info Management, 26(4), 387-399. http://dx.doi.org/10.1108/jeim-01-2012-0001
Conaldi, G., Lomi, A., & Tonellato, M. (2012). Dynamic Models of Affiliation and the Network Structure of Problem Solving in an Open Source Software Project. Organizational Research Methods, 15(3), 385-412. http://dx.doi.org/10.1177/1094428111430541
Huang, Y. & Hutchinson, J. (2013). The roles of planning, learning, and mental models in repeated dynamic decision making. Organizational Behavior And Human Decision Processes, 122(2), 163-176. http://dx.doi.org/10.1016/j.obhdp.2013.07.001
Sun, Y. & Jeyaraj, A. (2013). Information technology adoption and continuance: A longitudinal study of individuals’ behavioral intentions. Information & Management, 50(7), 457-465. http://dx.doi.org/10.1016/j.im.2013.07.005
Van der Meer, M., Kurth-Nelson, Z., & Redish, A. (2012). Information Processing in Decision-Making Systems. The Neuroscientist, 18(4), 342-359. http://dx.doi.org/10.1177/1073858411435128
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