Management and behaviour of people working in a organization Essay Example

changing trends in modern working organizations.

What Case Study Says

The General Electric (GE), a conglomerate incorporated in the State of New York, USA, is renowned for its organizational culture. At GE, the management follows a philosophy that encourages employees to share their opinions in a collaborative culture. They believe in empowering front-line employees by giving them greater responsibility, power, and accountability. The company also focuses on eliminating wasteful and unnecessary steps in the work process, which can be identified through employee feedback. GE strives to break down barriers that hinder the exchange of ideas and efforts, and they prioritize their customers and the community. Teamwork is highly valued at GE, and mutual respect among employees is emphasized.

The company has acquired a strong loyalty from millions of employees over its 120-year history. Its founder, Thomas Edison, laid the foundation for its success. Under the management of Jeffrey Immelt, the company has maintained its legendary status. Authors have noted that GE's immense growth is not solely attributed to its founder's legacy, but rather to the company itself. However, everything changed after the merger with IT Corporation, A Ling-Temco-Vought, A Tenneco. Former GE employees, including executives, managers, and engineers, all describe GE as something extraordinary.

General Electric used to regularly visit corporate halls, interact with the community and staff to discuss their projects and challenges. They believed in the mutual value and respect for everyone involved. However, the company's dynamics shifted when John Francis Welch Jr became the CEO of GE. He prioritized improving the company's productivity.

There was a sudden outbreak of fear among the staff that had never been experienced before. The main complaints against him were

prioritizing money over people, mistreating employees through layoffs, and creating an unfair working environment. His goals did not align with GE's principles. They believed that profit should only serve as a means to achieve other objectives of equal importance.

The other goals include providing public assistance to employees, clients, etc. The GE example mentioned above illustrates the widely held belief that GE played a crucial role in the company's success. Critics argue that in order to support an excellent corporate culture, the company should be at its best.

However, those familiar with GE will not believe this because GE's most challenging times were also its most successful times and now GE needs to focus on effective management style to ensure employee satisfaction and productivity, making GE a successful company and leading brand once again.

Important Factors for Efficient Organization

In order for an organization to thrive in the current business climate and ongoing recession, it must take various aspects into consideration. Change is a constant in business, and it is crucial to anticipate these changes and develop strategies to sustain growth. Organizations must meet the needs of employees and stakeholders while also satisfying customer demands. Internal and external factors determine decisions and strategies within organizations.

The core competencies of administrations can be utilized to their advantage through various procedures. The success of an administration depends on both individuals and managers, as well as the policies they implement to achieve long-term goals. This report will evaluate the mentioned administrations in critical aspects for success in the current market situation.

The contributions, motivation, rewards, and roles of individuals within these groups and teams

According to Stephen P.

According to Robbins (2018), motive can be described

as the inclination to put forth a significant level of exertion towards achieving organizational objectives, which is influenced by how fulfilling that effort is for personal needs. Motive permeates all facets of life and can be classified into two primary types: intrinsic and extrinsic. Intrinsic motive pertains to inner factors that propel individuals, while extrinsic motive arises when external factors drive individuals into action. Mayo (1949) proposes that employees who have social ties in their workplace are more prone to being motivated.

Mayo argued that employees can be motivated not only by recognizing their social needs but also by making them feel important among their peers. General Electric (GE) implemented this approach successfully, as reported by the employees themselves. They affirmed that "everyone is valued by everybody equally." GE gave its employees autonomy in decision-making and promoted a relaxed work environment. Elton Mayo referred to this model as the Hawthorne effect. In the case study, General Electric achieved great success in motivating their employees simply by being approachable.

The text emphasizes the importance of motivation in various aspects of life, particularly in relation to employees. It introduces different theories that explain the motivation process. These theories can be categorized into three groups: need-based theories, process-based theories, and individual-organizational goal-congruence theories. Maslow's Need Hierarchy is one of the prominent need-based theories, which proposes a hierarchy of five basic needs: physiological, safety, social, esteem, and self-actualization needs.

Alderfer's ERG theory encompasses three types of needs. These include the Existence needs which pertain to physiological and safety demands, Relatedness needs which involve maintaining significant interpersonal relationships and fulfilling societal demands, and the Growth needs encompassing the desire for personal

development and self-actualization, which are intrinsic components of regard.

The theories of McGregor, Herberg, and McClelland present contrasting premises about employees and job satisfaction. According to McGregor's theory X, employees are considered lazy, unmotivated, and unwilling to take responsibility. In contrast, theory Y suggests that employees enjoy their work, are creative, seek responsibilities, and are self-motivated.
Herberg's two-factor theory discusses both aspects of job satisfaction and dissatisfaction. It identifies motivational factors and hygiene factors as the two types of factors influencing employee satisfaction.
McClelland's Need Theory focuses on the need for achievement. Simply put, it explores the drive for excellence, setting higher goals, taking on greater responsibilities, and striving for success.

All of these theories address the elements that generate motivation in individuals and how motivation affects a business. GENERAL ELECTRIC (GE) previously succeeded in enhancing employee morale and enhancing operational efficiency. However, following the merger, the situation deteriorated as the new top executives prioritized profitability at the expense of employee morale.

The implementation of a reward system, which encompasses financial rewards and employee benefits, has led to employee dissatisfaction and decreased productivity within the company. This system also incorporates non-monetary rewards such as recognition, promotion, praise, achievement, responsibility, and personal growth. Recent studies and research on reward systems have indicated that both monetary and non-monetary rewards greatly impact employee performance and overall company performance.

There are multiple reasons why a wages system is necessary. It can enhance organizational effectiveness, facilitate integration, motivate employees, compete in the labor market, increase commitment to work, attract fair and skilled employees, improve skills and quality, and promote teamwork. However, in the specific case of GENERAL ELECTRIC (GE), the employees' morale was more affected by

changes in the emotional environment and sudden shifts in the company's culture. The company had previously operated in a more informal culture, so adjusting to a formal environment where their opinions were not valued proved challenging. Recognizing employees' perspectives and opinions is crucial for creating a work environment where they feel valued and appreciated, resulting in improved performance when individuals are assigned meaningful roles.

Management and leadership in relation to both groups and squads

According to Alan Keith, leadership is ultimately about creating a way for individuals to contribute to making something extraordinary happen. Tom DeMarco emphasizes that leadership needs to be differentiated from posing. Northouse defines leadership as a process where an individual influences a group of people to achieve a shared goal. Mary Parker Follett describes management as "the art of getting things done through people".

Leading is the act of introducing a new way or vision to help a group achieve its goals. On the other hand, direction refers to the organized structure of people and resources within a group, based on established values. Although the terms leadership and management are often confused, they are distinct yet interconnected. General Electric (GE) exemplified a well-known management style, treating the organization like a close-knit family that values each member. The success of GE's approach to managing people is evident in its growth. As Warren Bennis and Burt Nanus (1997) aptly put it, "Leadership is like the Abominable Snowman, whose footprints are everywhere but who is nowhere to be seen."

Leadership is a universal concept that is not easily defined or quantified. Bass, in his book, discusses a study conducted by H.L. Smith and

Krueger (1933), which explored various primitive cultures and concluded that leadership exists in all people, regardless of their culture, race, or perspective. Even in societies without traditional or elected leaders, there is always someone who initiates processes and plays a crucial role in group decision-making. General Electric (GE) discovered that leadership qualities are present in every individual and they fostered a culture of mutual respect and unity within the organization. According to Hollander, leadership is a process that involves three main components.

In an organization, there are three important constituents: the leader, the employees, and the civilization of the organization. If these three constituents do not have a compatible relationship, both leading and the squad will be neglected in the long term. The leader is the first constituent of leading and must possess certain beliefs, perceptual experiences, features, and accomplishments for good leading to occur in squads.

A leader must closely embody the Wallenda factor, which is the ability to have unwavering belief in success and focus solely on the task at hand without even considering the possibility of failure. The Wallenda factor was given this name in honor of Karl Wallenda, a famous tightrope walker who tragically fell to his death. Karl Wallenda was preparing for his most daring stunt ever, but for three months leading up to it, he could only think about failing instead of putting in hard work for the stunt. Doubts of failing consumed him to the point that he had to supervise and inspect the construction of his rope, despite never having done so before.

According to Bennis & Nanus (1997), leaders should have a willingness to share power and control with

their team. It is not beneficial for a leader to act like a traditional supervisor; instead, they should be involved as a participant or manager within the team. This approach can be observed in the case of General Electric (GE), where leaders are present to provide support and encourage employees to solve problems independently.

Group structures, ends, and aims

The arrangement of groups is important as it greatly influences the effectiveness of a group. A group has the potential to achieve greater results than individuals working independently. A skilled group leader can greatly contribute to the success of a group. Various organizations structure their groups differently depending on their specific goals and objectives. It is crucial to strike a balance between having too many skilled individuals in a group and not having enough.

A team lacking skilled personnel may fail to achieve their stated objectives. Objectives provide team members with the means of taking action, and the ultimate result will be the successful achievement of these objectives. When work is carried out in well-managed teams, the teams will enjoy both operational and managerial freedom, which can enhance their job satisfaction. Each member of the team should be aware of their role within the team and feel valued, so that they see the team as an appealing entity. Well-managed team structures enable employees to work together in cooperation.

The statements that describe the vision to be accomplished or the consequences of any action that will be achieved in the hereafter are referred to as ends and aims. Goals provide an overall context for the vision and specify what it is seeking to achieve. Aims, on the other hand, are

more specific statements that describe tangible merchandise, deliverables, and outcomes that will result from the action. Ends are higher-level statements compared to aims. Goals may include multiple aims to be achieved since they are at a higher level of importance.

To be more precise, the success of a goal can result from the attainment of multiple aims. Goals are generally long-term purposes that can be proven in the future, while objective achievement is a step-by-step process that can lead to successful goal attainment.

Obstacles to Organization Performance-

In the past decade, there is abundant evidence to suggest that efficient directors play a crucial role in managing successful organizations. Effective management is essential for ensuring long-term success. Through their skills, attributes, and personal qualities, successful directors promote sustainable growth.

According to Pfeffer and Veiga (1999), there is a distinction between common sense and common knowledge. Understanding something is not the same as actually doing it. A manager becomes more effective when they are able to analyze a situation, identify a problem, and propose a suitable solution. Among all the factors that contribute to an effective organization, the quality and alignment of the human resources is the most important. In this essay, we will discuss the crucial characteristics of an effective organization, as well as the main obstacles to achieving effective organizational performance and the strategies for overcoming them.

Qualities of the human resource

The success of an organization relies on the quality of its human resources.

According to Whetton and Cameron (2005), the most important personal qualities essential for a manager are self-awareness and the ability to solve problems analytically and creatively. Self-awareness plays a crucial role

in bringing clarity to the thought process. It goes beyond individual level, encompassing awareness of one's potential and capabilities as part of a team and organization. Self-awareness also aids in understanding customers by closely examining their lifestyle and environment. Cox (1994) emphasizes in his work that self-awareness is essential for developing a sense of self-respect and worthiness, which defines individuals' emotional intelligence. Being more aware of personal values becomes helpful when making decisions. When individuals are aware of their inner selves, they can appreciate the differences among individuals within a group dynamic.

An effective director feels comfortable in welcoming different points of view and can create a shared sense of commitment in a team. The other personal skill that a director must possess is the ability to solve problems analytically and creatively.

Group skills

The following set of skills that enhance the effectiveness of an organization is the extent to which the members are able to delegate and organize, building effective teams and facilitating positive change. In an ever-changing business environment, the organization must constantly redefine itself according to the changes. To ensure the company can adapt easily during times of change, the director should be able to motivate and lead others towards positive change and also build successful teams to execute these changes. During periods of rapid change, it becomes even more challenging to prepare members of the organization to accept the need for change, understand the new approach, obtain their commitment to implement the proposal, effectively manage the transition period, and embed the new idea by integrating it into the organization's communication, evaluation, and reward systems.

The availability of good thoughts

is abundant, but the ability to interpret them into a recognized pattern is rare. Recognizing the importance of patterns in the success of any change, we can achieve acceptance of new thoughts by carefully assessing the necessary alterations and planning the implementation details. Delegating and empowering team members are crucial for accomplishing a goal.

There are several benefits when this approach is adopted. Firstly, for the organization, it is highly advantageous because the company now has more members who are aware of the purpose and the task of achieving it.

Power and politics

The term power refers to the ability to control the surrounding environment. Power gives individuals the ability to make decisions and take action. When an employee is empowered, they can make decisions on issues and proceed without being given directions at every stage of operations.

When organizations are becoming more streamlined, it is crucial to prioritize employee empowerment. Additionally, with the advancement of information technology, the limitations of traditional office spaces are no longer present. Power in this context not only refers to authority but also encompasses the opportunities associated with a job. Uncertainty within an organization can lead to confusion regarding the roles and the relative importance of each person's role. For instance, when a multinational corporation (MNC) is in the process of acquiring an organization, job security becomes highly uncertain for employees.

In situations like this, employees often use their personal power and influence to obtain information and favor certain individuals, which can lead to office politics. However, the change in position through delegation is beneficial for the organization. In this issue, we examine how changes in the external environment impact the world of work

and challenge the validity of this statement on the changing nature of modern work organizations.

Over the past decade, a combination of factors has influenced the role, relevance, and structure of human resource management in organizations (Burke;A;Cooper, 2000; Cooper;A;Burke, 2002). These factors operate at various levels and present important issues and challenges for organizational management. For instance, individuals in the workforce now have slightly different values and expectations regarding work. Organizations are now employing the most educated workforce in history. Employees have higher salary expectations, opportunities to participate in organizational decision making, and a need for fair and respectful treatment.

In addition, there is growing employee concern about the impact of work demands and hours on both their households and personal lives.

Technology

Another factor that influences our choice of workplace and how we organize and manage our work is technology (Wallace, 2004). As new technologies are developed, they change the way we do things, which in turn has direct personal effects on us, such as our living and working environments. The crucial aspect of technology is that it constantly improves, according to R.J.

Burke, E. Ng / Human Resource Management Review 16 (2006) 86-94 89 cheaper, and quicker. As a consequence, we can handle massive amounts of information, share and access data easily, and communicate globally. Suffice it to say, we would not be global today without technology.

Telecommuting and distributed work

Technological innovations have also influenced our living and working locations.

The advancements in communication and mobile technology, such as cellular phones, Blackberries, PDAs, and WiFi, have made telecommuting and distributed work easier. The improvement in communication technology has made teleworking and flexible work arrangements more promising. Instead of commuting long

distances to the office, workers can now telecommute, meet online, and collaborate virtually. In fact, knowledge workers only spend around 40% of their work time at the office, 30% in their home offices, and the rest in other "third places" like coffee shops and airports (Ware, 2005b). However, despite these technological advancements, there is still little improvement in enhancing work-life balance.

Workers are increasingly becoming more connected to the workplace, constantly checking emails, downloading reports, and staying connected to the office even outside of their normal work hours. Both organizations and workers have developed a dependence and addiction to technology and work itself.

Outsourcing and offshoring:

In the global market, competition is often driven by price, and companies strive to become the most affordable producers in order to remain competitive. This results in increased competition and a need for efficiency. Organizations have discovered that one of the most effective ways to reduce costs is by taking advantage of lower labor costs through outsourcing.

Of course, when the lowest cost manufacturers happened to be overseas, it didn't take long for outsourcing to become offshoring (Ware, 2005c). Outsourcing effectively transfers work to places where labor can be purchased at a lower cost. For millions of workers, this means losing their lifelong job, starting from those in manufacturing and production. The reality is that developing countries (such as Brazil, Russia, India, and China, collectively known as "BRIC") have become industrialized and can compete based on lower labor costs. This has allowed them to compete in global markets and effectively turned manufacturing capabilities into a commodity.

As a result, countries like Canada are experiencing a phenomenon known as "digging out" in their industrialized

economic systems. This term is commonly used to describe the de-industrialization of an economy due to the relocation of manufacturing and production facilities overseas. Regrettably, outsourcing is now not limited to the manufacturing and production sectors. In a recent interview with Nandan Nilekani, the CEO of Infosys, published in the New York Times (2005), Nilekani stated that essentially any work that can be performed remotely is susceptible to being outsourced.

White-collar, professional, and cognitive work, which was previously considered secure, is already being offshored. In 2005, Canadian company ATI Technologies Inc. established its first research and development facility outside Canada in Hyderabad, India (Canadian Business, 2005b).