Organizational Theory, Design, and change - Essay Example
As such, it is common for organizations to improve their operations by minimizing production or operational costs for non-profit organizations. Such organizations are known to be efficient and will therefore charge low amount for their goods or services due to the low costs of production. The customers are also able to get quality services at affordable rates. Moreover, through motivation of employees, the company is able to retain loyal and efficient employees, which improves its social image within the community where it operates. Through proper social responsibility strategies, the government is able to associate with the organization and this will further enhance its image. A properly managed organization will consider an approach that will lay emphasis on initial impetus, focus, alignment, proper planning and adaptation so as to ensure value to the consumers. It is clear that entrepreneurship will set the foundation for creating value in an organization since the entrepreneur defines the goals and the tradition of the organization. They provide the initial leadership in the organization by setting the objectives and acquiring the necessary resources. The entrepreneur also establishes the management of the organization. ...
It could therefore be a conflict between the management and the investors or the management and the employees or even all employees against the investors. These conflicts could include difference in management ideologies between the management and other stakeholders, difference in targets set by different quarters of the organization and expected remuneration or reward for various achievements. In most organizations, agency problems normally occur when the management misuse the authority bestowed upon them by the other stakeholders. This is in such acts as using that authority for their own benefit at the expense of the company goals. The agency problems can be generalised as adverse selection where the investor doubts the capability of the management to promote his interest and moral hazard, where behaviour of the representative is deemed to be capable of causing harm to the organization. It is important to note that agency problem is mainly caused by mistrust and in some cases, negligence. Sadly though, the problem exists in every organization in one way or the other. Several efforts or actions are taken towards solving agency problems and they include: screening processes to reduce misbehaviour, offering incentives to the employees and management for positive results and achievements, well defined punishments for poor behaviour such as suspension and unpaid leaves to ensure strict adherence to the companyâ€™s principles. The company may even be forced to employ supervisors who are charged with the responsibility of checking such compliance. This method could be referred to as watchdog police. Other modes of solving agency problem are
12/4/2019 0 Comments
Strategic Direction of Harley Davidson - Essay Example
It has been recommended that the best way forward for Harley-Davidson is to expand overseas and outsource its production and assembly lines, especially in emerging economies like China and India. To its credit, the companyâ€™s management has already been making efforts in this direction. Summary of Strategic Direction & the Balanced Scorecard From the analysis of the companyâ€™s own strengths and weaknesses, as well as the opportunities and threats to the motorcycle industry at large and the heavy motorbike segment in particular, it has been suggested that the best way forward for Harley- Davidson at this juncture is to expand overseas in emerging economies like China and India and also to think of setting up production and assembly lines for the local manufacture or assembly of H-D motorcycles. This will not only help lower costs, as Asian labor is cheaper than the American or European equivalent but also to increase market size, revenues and profits. The recessionary trend in Western economies makes to difficult to achieve sales and profit goals there. It is therefore recommended to spread the risks and even create a production or assembly hub in Asia, from where finished products can be transported to areas where there is a demand for them. Coming to the matter of the Balanced Scorecard, this will compare actual results attained to an agreed target value for financial and non-financial measures, such as Financial, Customer, Internal Processes and Learning and Growth. For H-Dâ€™s agreed best-recommended strategy, we could have actual sales in units and type of motorbike, revenues and profits earned, type of customers targeted in terms of earning capacity and lifestyle, costs and expenses to set up production/ assembly plants in India and China and comparison of common and differentiating factors relating to customer choices, culture, purchase behavior and lifestyle in different areas of the globe. Stakeholder Interests Of course, in todayâ€™s environment, a company has a number of different stakeholders and each of them have different interests in the company and its operations. For example, creditors and banks would like to see that it has enough revenues and profitability to cover its interest payments, as well as make the required installments of principal and interest at the agreed date and rates. They would also look at the debt and equity balance before deciding to lend. Shareholders would expect a return in terms of capital gains and dividends. Employees would be looking for job stability and a fair wage. In this way, Harley Davidson has to satisfy the interests of various stakeholders at the same time. Company History, Purpose & Goals Harley Davidson Inc. was started by a group of friends and entrepreneurs at the beginning of the 1900s. The name of the company is, in fact, a combination of the two families which combined their skills and efforts to get the business off the ground.Â
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