Competitive Marketing Theories


Competitive market theories are derived from the neo-classical economic concepts of rational choice and maximization of utility. The assumption is that individuals choose jobs which offer them maximum benefits. The utility or value of these benefits – money, vacation time, pension entitlement and so on – vary for different individuals according to their personal preferences. People move from one organization to another if improved benefits are available. At the same time, employer organizations attempt to get the most from their employees for the lowest possible cost.

The outcome of this process is a dynamic and shifting equilibrium in which both employees and organizations compete to maximize benefits for themselves. Within a specific region or industry there is a balance between supply and demand for human resources. Pay and conditions for employees are determined by the relative scarcity or abundance of skills and abilities in the employment market. Competitive forces push wages up when demand for products – and hence employees – increases, and downwards when the economy is in recession. In the latter case a market clearing wage is eventually arrived at which is sufficiently low to encourage employers to increase recruitment and eliminate unemployment. This discourse reinforces the view that employees are objects to be traded like any other commodities in the market – human resources in the hardest possible sense. Supposedly, they offer themselves – their skills and human qualities – for sale to the highest bidders. Within this mindset they could just as well be vegetables on a market stall.

Competition theories assume that job-seekers have perfect knowledge of available jobs and benefits. Job-searching is an expensive and time consuming business. The unemployed do not have money and those in work do not have time. The result is that few people conduct the extensive searches required to find jobs which meet their preferences perfectly. In practice, most individuals settle for employment which is quickly obtained and which exceeds the reserve minimum wage they have in mind. There is a considerable element of luck involved. Moreover, the job-seeker does not make the choice: in most cases the decision is in the hands of employer.

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.

Executive Recruitment


The value of understanding individual personality strengths and developmental areas through the assistance of personality assessment inventories has been especially important in choosing business leaders and senior executives. Executives search firms have long valued the importance of choosing not only the most intelligent candidate with a strategic business sense and proven experience, but one who also possessed the necessary personality traits and leadership competences to operate effectively within an organization’s culture. It was, and is, accepted knowledge that personality plays a critical role in the cultural fit of an incoming senior executive into a new organization. Consideration of personality traits takes on even greater importance when an executive is being chosen to change the direction or culture 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.

Changing Company’s Culture


A short list of mechanisms leaders can use to establish, embed, and reinforce organizational culture. There are five:

  1. Make it clear to your employees what you pay attention to, measure, and control.
  2. React appropriately to critical incidents and organizational crises.
  3. Deliberately role model, teach, and coach the values you want to emphasize.
  4. Communicate your priorities by the way you allocate rewards and status.
  5. Make your HR procedures and criteria consistent with the values you espouse.

Don’t stop there. Use secondary mechanisms—such as redesigning physical space—to further reinforce the desired cultural changes. These secondary mechanisms are just that secondary, because they work only if they are consistent with the five primary mechanisms:

  1. What leaders pay attention to, measure, and control
  2. Leader reactions to critical incidents and organizational crises
  3. Deliberate role modeling, teaching and coaching
  4. Criteria for allocation of rewards and status
  5. Criteria for recruitment, selection, promotion, retirement, and communication.

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.

Departmentalization


Departmentalization is the subdivision of work activities into units within the organization. This subdivision allows individual workers to specialize in certain jobs and to become efficient in them. A marketing department may be headed by a marketing vice-president and may include sales, advertising, and market research. A personnel department may include recruitment, training, employee benefits, and industrial relations.

Five major forms of departmentalization exist: product, geography, customer, function and process. A number of different bases for departmentalization may be used within the same company. The decisions on which bases to use are made by balancing the advantages and disadvantages of each. The experience and judgment of top management come into play in such decisions.

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.

Employing Too Many People


This seems obvious; employing too many people to do the work is clearly a waste on money. Unfortunately, there is a natural tendency for organiations to expand – largely because it is easy to employ an extra person, but difficult to sack one.  This growth is particularly obvious at the top.

Most organizations are overstaffed. When someone is overworked they can resign, share the work with a colleague, or demand another two assistants.

When there is not enough work to keep everyone occupied, there is plenty of time to worry, gossip and play politics. This by itself can be disruptive, but there are more problems when you try to trim the costs. Your best people will read the signs and start looking around for another job; the less good will keep their heads down and avoid any controversy, risks or mistakes. No one performs at their best when they spend their time applying for other jobs or trying to look invisible.

Remember that those who are in danger of losing their jobs deserve the longest warning that you can give. It isn’t their fault that the organization is having problems, and they have to plan for a difficult and uncertain future. Many managers delay these decisions, giving different reasons why they shouldn’t say anything until the last possible moment. This leaves everyone worried. It is far better to sort things out early, so that those remaining can concentrate on their work, and those leaving can help for the future.

Overstaffing has more widespread effects than simply wasting money, and you should avoid it by controlling recruitment and promotions.

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, Line of Sight