Imperfect Organizational Decision-making


Decision-making must be made in all organizations and actions must be taken. It is up to the appropriate people in the organization to select the actions, determine how to carry them out, and take responsibility for their successful implementation. But there is often confusion over decisions. People find it hard to think together about the choices they must make. They don’t agree on where to start or how to proceed. As a result they may overlook important information, fail to consult the proper people, and make mistakes. Organizational decision-making is often not as good as it should be.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Human Context of Management


In addition to understanding the ongoing behavioral processes inherent in their own jobs, managers must understand the basic human element of their work. Organizational behavior offers three major perspectives for understanding this context: people as organizations, people as resources, and people as people.

Above all, organizations are people, and without people there would be no organizations. All organizations differ from each other dramatically in size, purpose, and structure, they have one thing in common: people. Thus, if managers are to understand the organizations in which they work, they must first understand the people who make up the organizations.

As resources, people are one of an organization’s most valuable assets. People create the organization, guide and direct its course, and vitalize and revitalize it. People make its decisions, solve its problems, and answer its questions. People are at the core of many of the possible contributors to this trend. To reverse declining productivity, many organizations have taken steps to boost the contribution from their human resources. Some companies have encouraged management and labor to cooperate better; others have increased employee participation in decision-making and problem-solving.

There is another perspective—people as people. People spend a large part of their lives in organizational settings, mostly as employees. They have a right to expect something in return beyond wages and employee benefits. Employees seek satisfaction, and many want the opportunity to grow and develop and to learn new skills. An understanding of organizational behavior can help managers better appreciate these needs and expectations.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Social Interactions


Social interactions establish the role that people play in a society and their authority responsibility pattern. Their roles and patterns are supported by a society’s institutional framework, which includes, for example, education and marriage.

Social roles are established by culture. For example, a woman can be a wife, a mother, a community leader, and/or an employee. What role is preferred in different situations is culture-bound. Most Swiss women consider household work as their primary role. For this reason, they resent modern gadgets and machines. Behavior also emerges from culture in the form of conventions, rituals, and practices on different occasions such as during festivals, marriages, get-togethers, and times of grief or religious celebration.

With reference to marketing, the social interactions influence family decision-making and buying behavior and define the scope of personal influence and opinion. In Latin America and Asia the extended family is considered the most basic and stable unit of social organization. It is the center for all economic, political, social, and religious life. It provides companionship, protection, and a common set of values with specifically prescribed means for fulfilling them. By contrast, in the US the nuclear family (husband, wife, and children) is the focus of social organization. The US wife plays a more autonomous role than the Dutch wife in family decision-making. Thus social roles vary from culture to culture and are likely to affect marketing behavior.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Not-for-Profit Marketing


Non-for-Profit organizations encounter a special set of characteristics that influence their marketing activities. Like profit making firms, not-for-profit organizations may market tangible goods and/or intangible services. One important distinction exists between not-for-profit organizations and profit oriented companies. Profit-seeking businesses tend to focus their marketing on just one public—their customers. Not-for-profit organizations, however, must often market to multiple publics, which complicates decision-making regarding the correct markets to target. Many deal with at least two major publics—their clients and their sponsors—and often many other publics, as well. Political candidates, for example, target both voters and campaign contributors. A college targets prospective students as clients of its marketing program, but it also markets to current students, parents of students, alumni, faculty, staff, local businesses, and local government agencies.

A second distinguishing characteristic of not-for-profit marketing is that a customer or service user may wield less control over the organization’s destiny than would be true for customers of a profit-seeking firm. A government employee may be  far more concerned with the opinion of a member of the legislature’s appropriations committee than with that of a service user. Not-for-profit organizations also often possess some degree of monopoly power in a given geographic area.

Perhaps the most commonly noted feature of the non-profit-organization is its lack of a bottom line—business jargon referring to the overall profitability measure of performance. Profit-seeking firms measure profitability in terms of sales and revenues. While not-for-profit organizations may attempt to maximize their return from specific services, they usually substitute less exact goals, such as service-level standards, for overall evaluation criteria. As a result, it is often difficult to set marketing objectives that are aligned specifically with overall organizational goals.

A typical aspect of a non-for-profit organization is the lack of a clear organizational structure. Not-for-profit organizations often respond to constituencies that they serve, but these usually are less exact than, for example, the stockholders of a profit-oriented corporation. Not-for-profit organizations often have multiple organizational structures.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Group Leader


As leader of a group, you are responsible for creating an environment in which discussing leads to recommendations, recommendations develop positions, and compromise between positions brings decision.

You are the person in charge of creating and maintaining conditions in which free discussion flourishes, arguments are quelled, and factions kept temporary. You are the one designated to get the most from each person; to build the contribution of each team-member into a powerful, decision-making force capable of solving problems.

Seen in this light, your task as a leader is a rather awesome responsibility—awesome, perhaps, but not necessarily intimidating.

Just as there are concepts for improving personal participation, there are also proven techniques for building leadership.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Organization Structure and Innovations


Organizational structure fulfils many functions—everyone in the organization knows who he or she reports to; how various repetitive/routine activities are to be discharged; who has what authority and responsibility; how personnel are grouped together (e.g., by departments or divisions); which individuals/groups have decision-making authority and which have primarily advisory functions (line versus staff functions); and what mechanisms are deployed primarily for reducing decision-making uncertainty, for ensuring differentiated or specialized responses to the operating environment, and for coordinating and integrating these differentiated or specialized responses. A well-designed structure that is compatible with strategy or is internally coherent and compatible with the organization’s operating environment tends to contribute to superior organizational performance.

Can organizational structure facilitate innovations? Possibly. Relatively flat managerial hierarchy and extensive decentralization or delegation of authority, including extensive use of profit centers and SBUs.

Certain kinds of structural changes, notably creating many self-contained, substantially autonomous units with stretch targets, extensive delegation of authority to lower level decision-makers, and delayering (removal of some of the managerial levels to reduce the number of approving authorities for innovation)  may increase the potential innovations of the organization.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Highly Effective People and Organizations


Why don’t highly effective people always run successful organizations? And why aren’t all successful organizations run by highly effective people?

We have all seen successful organizations being run by people who don’t come close to being highly effective, whilst people we know to be highly effective sometimes work in unremarkable, underperforming companies.

What is going on then?

The answer lies not in re-examining the laws that govern personal effectiveness but in reviewing the similarities and intrinsic differences between highly effective people and organizations. So where do we start?

We know that highly effective people:

o     Control all decision-making from one place – their brain;

o     Coordinate thought and action centrally in their brain and can make their mouth, hands, feet and everything in between do what they want when they want;

o     Have a single mouthpiece; and

o     Are driven by a single social paradigm – the character ethic.

Organizations, on the other hand:

o     Have multiple decision-making points and use multiple decision-making criteria:

o     Cannot centrally control every aspect of their operation;

o     Struggle to send uncorrupted messages from the center outwards and are often unable to receive incoming messages from distant parts of the organization at all;

o     Are driven by a variety of conflicting influences;

o     May try and influence behavior through corporate values without defining and weighting underlying motivations, failing to make them either relevant or meaningful to anyone apart from the team that created them;

o     Are unlikely to be able to manage relationships in a consistent manner without making a determined effort to do so; and

o     May have a leadership team covertly hostile to each other’s motivations, beliefs, individual social paradigms and ideas about corporate culture.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Maintaining Accounting Records


Firms must maintain accounting records. The most important number in these records is the one at the bottom—the “bottom-line” net profit or loss. To compute this number, the firm keeps track of the number of products sold and the amount of money spent on production, salaries, rent, insurance, interest on loans, building repairs, and other items.

Large firms produce a tremendous amount of accounting information. Managing this information and using it wisely are great challenges. All business firms—large and small alike—produce accounting information for three basic purposes: internal decision-making, financial reporting to lenders and investors, and tax reporting to government.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Company Self-Concept


A major determinant of a firm’s success is the extent to which the firm can relate functionally to its external environment. To achieve its proper place in a competitive situation, the firm realistically must evaluate its competitive strengths and weaknesses. This idea—that the firm must know itself—is the essence of the company self-concept. The idea is not commonly integrated into theories of strategic management; its importance for individuals has been recognized since ancient times.

Both individuals and firms have a crucial need to know themselves. The ability of either to survive in a dynamic and highly competitive environment would be severely limited if they did not understand their impact on others on them.

In some senses, then, firms take on personalities of their own. Much behavior in firms is organizationally based; that is, a firm acts on its members in other ways than their individual interactions. Thus, firms are entities whose personality transcends the personalities of their members. As such, they can set decision making parameters based on aims different and distinct from the aims of their members. These organizational considerations have pervasive effects.

Ordinarily, descriptions of the company self-concept per se do not appear in mission statements. Yet such statements often provide strong impressions of the company self-concept. The following excerpts from the Intel Corporation mission statement describe the corporate persona that its top management seeks to foster:

The management is self-critical. The leaders must be capable of recognizing and accepting their mistakes and learning from them.

Open (constructive) confrontation is encouraged at all levels of the corporation and is viewed as a method of problem solving and conflict resolution.

Decision by consensus is the rule. Decisions once made are supported. Position in the organization is not the basis for quality of ideas.

A highly communicative, open management is part of the style.

Management must be ethical. Managing by telling the truth and treating all employees equitably has established credibility that is ethical.

We strive to provide an opportunity for rapid development.

Intel is a results-oriented company. The focus is on substance versus form, quality versus quantity.

We believe in the principle that hard work, high productivity is something to be proud of.

The concept of assumed responsibility is accepted. (if a task needs to be done, assume you have the responsibility to get it done).

Commitments are long term. If career problems occur at some point, reassignment is a better alternative than termination.

We desire to have all employees involved and participative in their relationship with Intel.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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