Discuss about the Introduction to Management for Business Relationship.
Organizational efficiency is considered as a measure of “the relationship” between the organizational resources (inputs) and organizational outputs (goods or services) (Zimmerman and Yahya-Zadeh 2011). It is found that the efficiency of an organization is dependent on the amount of the resources (Bazerman and Moore 2012). On the other hand, using the resources in an efficient way can bring the success to an organization, which can be considered as effectiveness. However, in this case study, it is found that the rapid decision making of the owner of the organization resulted in some drastic changes in the organization, which in turn had an impact on the retention of the employees and the efficiency of the organization. According to the case study, Dharma became busier with the growth of the organization and had to invest more time with the government departments, which left her little time to take care of the organization itself. Therefore, she made her mind and promoted Jenny in a newly created management role to take care of the organization. However, she failed to carry out her responsibilities and Dharma realized that the organization is suffering more, and she is the responsible person of this deteriorating condition. Dharma found that the employees are not happy with the leadership of Jenny. A large number of volunteers are not satisfied with Jenny’s attitude and are deciding to leave the organization.
In the following article, the impact of management decision making and the role of the managers of an organization will be analysed critically reflecting the case study.
Research:
The effectiveness of an organization is always dependent on the efficient use of the resources of the company that may include the employees and the raw materials for the productions. However, according to Groot et al. (2010), without an effective leadership style, it is not possible to use the resources in an efficient way and reach the organization’s goal. Therefore, the implementation of strategic leadership has increased in a significant way in recent years. From the research study of Anderson et al. (2015), it is found that an ideal leadership can only motivate the fellow employees or the staffs of the organization. A leader can build a cohesive team and extract the best work from them. The secret behind the success of an organization always is an efficient leader who promotes team works and influences the employees to give their best for the organization (Gregory et al. 2012).
In order to find out the role of the managers in an organization to increase the efficiency of the organization, a throughout research has been performed. To fulfil the objective of the study, some relevant literature has been collected from the authentic databases. To find out relevant articles a search strategy has been developed, which is as follows-
Name of the databases: Google Scholar, Pubmed, PlosOne, Charles Darwin University
Search Terminologies: Management decision and organizational efficiency, leadership style and organizational efficiency
Search result: 245 articles were initially selected after excluding the similar journals. After that, five journals were finally found as relevant with the case study. All of the journals are valid as they were published within the last five years and helpful to enlighten the issue described in the case study.
Analysis:
According to Wu and Pagell (2011), making decisions, which are appropriate for the organization’s growth and maintain its sustainability in the market is solely dependent on the managers of the organizations. From this research study, it is found that the need of increasing demands on the natural resources and environmental protection are forcing the organizations to restructure their business model as well as their supply chains. Although the proactive companies and the scholars already started to create a more sustainable supply chains, the adaptation of these strategies in the companies have never been discussed. In this article, the researchers showed that the sudden changes in the infrastructure of the organization had a deep impact on the employee retention and other associated factors. On the other hand, the study of Kallunki, Laitinen and Silvola (2011) showed the impact of changing in resource plan and rapid decision making can have a deep impact on the performances of a firm. The role of the management on the drastic decision making was also analysed by the researchers. This empirical analysis has been performed based on the data collected from 70 Finnish business units. The results showed that the modification in enterprise systems improved the efficiency of the firms the employees faced difficulties to adopt with the rapid changes Vaiman, Scullion and Collings (2012), showed in their research study, the key issues faced by the managers of an organization in the context of decision making. The findings of this research study reflect that the mangers are the leaders of the organization who can encourage and influence the employees of the organization to contribute their best for the company. However, it is found that most of the managers failed to meet the responsibilities as they failed to follow proper leadership style. According to the author of this article, transactional leadership is the appropriate one that can be followed by the managers to improve the present condition of an organization. On the other hand, Vaccaro et al. (2012) showed in their research study that management innovations such as new managerial practices, structures and process are every important for the development of an organization. In this article, the researchers explored the role of leadership behaviour as the key to the improvement of an organization. The researchers mainly compared the efficiency of the transformational and transactional leadership in an organizational structure. Based on the findings it can be said that both of the leadership styles are efficient in order to increase the efficiency of the organization; however, the success of the leadership style is dependent on the characteristics of the leaders and the environment of the organization. Interestingly it is found that the implementation of transactional leadership style is best for the smaller organizations such as nonprofits organizations. The article of Robert, Shepherd and Sharfman (2011) showed that despite the good leadership style the organization can experience failure if the managers fail to make “good decisions.” In this article, the researchers adopted a psychological perspective of judgment in order to investigate the strategic decisions of the managers. The inconsistent judgments of the managers are helpful to shape the direction of the organization. The results reflect that the mangers with greater meta-cognitive experiences make “less erratic decision.” From the result, it is also found that the hostile environment of the organization pushed a manager to make erratic decisions. With the dynamic nature of the organizations, the managers are always pushed to make several critical decisions that can have an impact on the employees as well as on the organizational culture. Therefore, the responsibilities go to the managers to make good decisions, which will generate positive energy among the employees and help them to accommodate the sudden changes in the organizational structure.
Application of the findings of the case study:
Conclusion:
After evaluating the case study, it can be said that the organizational culture of this small organization is de-motivating due to some erratic strategic decisions are taken by the management (Dharma). Based on the circumstances may be a new manager needs to be recruited, but it is found that Jenny is not the appropriate one. In order to generate positive energy and increase the efficiency of the organization, Dharma needs to take more responsibility and train Jenny for the new job role.
Based on the evaluation of the organization’s present condition following recommendations can be made-
Reference
Anderson, D., Sweeney, D., Williams, T., Camm, J. and Cochran, J., 2015.An introduction to management science: quantitative approaches to decision making. Cengage Learning.
Bazerman, M. and Moore, D.A., 2012. Judgment in managerial decision making.
De Groot, R.S., Alkemade, R., Braat, L., Hein, L. and Willemen, L., 2010. Challenges in integrating the concept of ecosystem services and values in landscape planning, management and decision making. Ecological Complexity, 7(3), pp.260-272.
Gregory, R., Failing, L., Harstone, M., Long, G., McDaniels, T. and Ohlson, D., 2012. Structured decision making: a practical guide to environmental management choices. John Wiley & Sons.
Kallunki, J.P., Laitinen, E.K. and Silvola, H., 2011. Impact of enterprise resource planning systems on management control systems and firm performance. International Journal of Accounting Information Systems,12(1), pp.20-39.
Robert Mitchell, J., Shepherd, D.A. and Sharfman, M.P., 2011. Erratic strategic decisions: when and why managers are inconsistent in strategic decision making. Strategic Management Journal, 32(7), pp.683-704.
Vaccaro, I.G., Jansen, J.J., Van Den Bosch, F.A. and Volberda, H.W., 2012. Management innovation and leadership: The moderating role of organizational size. Journal of Management Studies, 49(1), pp.28-51.
Vaiman, V., Scullion, H. and Collings, D., 2012. Talent management decision making. Management Decision, 50(5), pp.925-941.
Wu, Z. and Pagell, M., 2011. Balancing priorities: Decision-making in sustainable supply chain management. Journal of Operations Management,29(6), pp.577-590.
Zimmerman, J.L. and Yahya-Zadeh, M., 2011. Accounting for decision making and control. Issues in Accounting Education, 26(1), pp.258-259.
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