Research Korner: Organization & People

Organizational and Managerial Characteristics of Market-Oriented Companies

ntroduction             Business organizations are constantly seeking ways to enhance their performances in order to compete actively and aggressively in the market. Profit-seeking organizations have long recognized the importance of creating value in the products and services they offer to the customers all in the common objective to deliver commercial goods efficiently in order to increase the satisfaction of the existing customer-base. Aside from inculcating loyalty among the members of the clients and customers of a business organization, companies are likewise aware of the need to widen and extend the reach of the company’s products and services to new markets in order to increase its share on clients and customers. Strategies, plans and techniques in the areas of operations, communication and marketing, sales, supply chin, logistics, research and development, performance measurements as well as social and corporate obligations and responsibility are continuously improved all for the benefit of the target market. Once companies become successful in these organizational and managerial areas, sustained economic development is envisioned. This paper aims to present a discussion that illustrates arguments and debates regarding the importance of the concept of “market-oriented” companies in the current business environment. Existing literatures are reviewed regarding the organizational and managerial characteristics of market-oriented companies along with illustration using a sample company that exhibits the traits and attitude of being a market-oriented business organization.   Characteristics of Market – Oriented Companies A number of existing literatures indicate the importance of being a market-oriented in the business environment among profit-seeking organizations (Jaworski & Kohli, 1993). These arguments are along with the claims of other experts regarding the limitations of being market-oriented since competing business organizations are likewise implementing market-oriented practices. According to DeGeus (1988), Dickson (1992) and Slater and Narver (1995) aside from having the market orientation needed in the business environment, companies should be able to imbibe faster-learning approaches relative to that of their competitors in order to ensure the success of their organization. Business scholars continue to engage in debates regarding the important managerial as well as organizational characteristics that contemporary companies should exhibit to guarantee success.               According to Lukas, Hult and Ferrell (1996) organizational learning will ensure the future success of business organizations contrary to traditional inclination and view towards the business organizations’ existing resources such as labor and capital as the primary means of achieving the performance goals and objectives of companies within the business industry (Hunt & Morgan, 1995). Others emphasized that information and knowledge are the main features of economic success (Bell, 1973). From these arguments and claims it could be assumed that being market-oriented leads to competitiveness in the business arena and that companies should be market-oriented in order to succeed (Day, 1994). As such, change is encouraged among business organizations for further development highlighting the relationship between being market-oriented and devising means to increase company performances. Moreover, the arguments further indicate that being market-oriented is only a start in initiating and ensuring success in the business environment (Slater & Narver, 1995).   Competitive advantage encourages business firms to invest on researches that will define their target customer groups that they believed they could serve best. Every business person is determined to know what kind of work they would and would not do for their customers and, in turn, they carefully learn how to fulfill the needs of each kind of customer in their target markets. Hessan & Whitely (1996) emphasized the idea to take advantage of the competitive situation not just by being better in how that product gets sold, serviced, and marketed at the customer interface. It requires that companies create breakthroughs in how they interact with customers, and design a way of interacting that makes an indelible impression on customers, one that so utterly distinguishes them from others that it becomes a brand in itself.   Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979; Reichheld & Sasser, 1990). Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers’ satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. According to Bowers, Martin and Luker (1990), if consumers somehow become better customers -- that is, more knowledgeable, participative, or productive -- the quality of the service experience will likely be enhanced for the customer and the organization.   Meanwhile, performance appraisal serves as an important practice and approach among business organizations in order to facilitate control on the development of the company as well as to monitor the activities, plans and strategies from which the company will benefit. Performance appraisal is a process of assessing whether organizational objectives are met. It would evaluate how the employee’s performance has fared to satisfy the organization (Debrah, et al., 2003). Such evaluation seeks to monitor and improve effectiveness by giving the employee feedback on his/her performance. This process should be carried out at regular intervals and should follow specific protocols to maintain objectivity in the evaluation process.   This concept of performance appraisal has its strengths as defined by Caruth and Handlogten (1997) for it helps the manager to be able to identify individual present performance along with the employee’s future potential. Evaluation also assesses the weaknesses and the accompanying disciplinary actions. The third strength is that it can determine which training aspect should be developed for the particular employee. It also increases the communication line between the employer and the employee because of the feedback and evaluation process. Moreover, Spencer (2004) indicated that evaluation is also a way for the organization to assess the role of the manager as well for evaluation and supervision is interdependent because evaluation is a tool for measuring supervision. Moreover, another advantage is that evaluation aims to establish trust among the entire organization because objectivity and fair play are called into this task. Lastly, the evaluation process is a good way of providing employee satisfaction and maturation which will improve the performance in the future.   However, there are specific limitations when it comes to the application and implementation of the market-oriented approach business organizations. Slater and Narver (1995) and Argyris (1994) emphasized the possibility that market-oriented companies have the tendency to manage the business by not taking to many risks which could result to unawareness when it comes to alternative trends in the market and the emergence of new market players in the industry. Hayes and Wheelwright (1994) and Hamel and Prahalad (1994) likewise highlighted the implications of market-oriented behavior among business organizations that could leads to merely adaptive learning practices ignoring the latent needs in the market in the approach’s focus and centeredness on expressed market needs. Lastly, other experts indicated that the market orientation approach could likewise miscalculate and undervalue the capacity and capability of other sources of learning that maybe detrimental to the very existence of the business organizations (Achrol, 1991; Dickson, 1992).   From these enumerated limitations, Slater and Narver (1995) persuade business companies and other profit-seeking organizations to be learning –oriented instead of merely being market-oriented for the future and sustainable success in the existing commercial industries. This highlights the notion that being market-oriented is only the initial step towards being learning-oriented. In this light, companies and business organizations should invest resources towards the research and development initiatives to improve their performances through clear understanding of the internal and external environments of the business organization. Moreover, taking risks in order to facilitate change will contribute to business organizations’ goals and aims toward sustained development and success.    Organizational Application Companies employ detailed business plans and strategies in order to gain several benefits from its competitors such as increased profits and enhanced customer relations as company objectives. The application of strategies directed towards the achievement of these objectives naturally requires the allocation of financial resources. However, while the company is capable of providing a budget, the outcomes should be able to recover these allocations in order to prevent capital losses. Thus, the company should employ strategies and create objectives that are compatible to the capacity of the company and what it intends to achieve.   The best product and service providers continuously update and upgrade their service deliveries in order to answer the demands of their customers. Customers have the ever-increasing demand on getting their hands into the products which can lead to change in business establishment if expectations are not met. As industry leaders, owners of a chain of small retail outlet stores trend toward more reliable delivery services across their customers for efficient product and service distribution. However, problems of delivery and distribution are usually attended by most companies with either quick fixes that do not work or complete and comprehensive delivery and distribution designs that take too long and are expensive.   Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successfully in business. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered.   Strategy perhaps, is the most important key to the successful implementation of customer relationship management. In order to do so, company management must realize that, either directly or indirectly, the achievement of its goals contributes much to the customers’ or clients’ general experience with the company. Successful incorporation of people, process and technology is probably the most efficient strategy in customer relationship management (CRM) implementation. These include the planning, organizing, directing and controlling procedures, which are all geared towards the customers (Lowenstein, 1997).   But CRM, also referred to as customer service management, encompasses more than the attainment of customer satisfaction. This change management is a balance between enhanced company processes and renewed objectives. In other words, customers should also feel that the companies and businesses they support and patronize give due importance, essentiality and vitality to their operations (Cohen and Moore, 2000). Hence, in order to bring out exceptional customer services within the company operations, the management should employ fine-tuned organizational restructuring. Moreover, employing proactive customer commitment involves the consideration on culture and infrastructure (Lowenstein, 1997).   Total Quality Management is a planned procedure for satisfying internal and external customers and suppliers by integrating the business environment, continuous improvement, and come through with advancement, growth, and safeguarding the cycles while changing organizational culture. Furthermore, TQM is an array of management system throughout the organization, geared to ensure that the organization to continuously attain or surpass customer requirements. Total Quality Management is a philosophy of management that is driven by the constant attainment of customer satisfaction though the continuous improvement of all organizational processes (Robbins, 1998).  It is a management philosophy that seeks to integrate all organizational functions such as marketing, finance, design, engineering, production, customer service, and others to focus on meeting customer needs and organizational objectives (Hashmi, 2000).   Meanwhile, the supply chain is traditionally characterized as a stable system in which components and goods move smoothly from supplier to assembly customers. In addition, supply chain refers to the suppliers, distributors, wholesalers and retailers that involved in manufacturing a product and getting it to consumers (Lee & Billinton, 1995). Supply chain is also defined as a network of independent or semi-independent corporation bodies collectively accountable for procurement, developing and or manufacturing and distribution scheme connected with one or more groups of related products (Janyashankar et al, 1996).    A growing number of companies are deploying supply-chain management (SCM) systems to enhance efficiency across the product lifecycle by streamlining procurement, production, fulfillment, and distribution processes. To help ensure that an SCM solution provides the intended return on investment, the enterprise network infrastructure must work together seamlessly since its effectiveness depends on the ability of users to access up to the minute information across the supply chain. Organizations usually share proprietary corporate data with external suppliers and partners while ensuring maximum security. This requires integration of applications and data across multiple geographically dispersed supply chain partners, as well as internal integration with legacy systems.   Research study shows that supply chains increase in their complexity as the number of nodes increases (Berry et al 1998). They also argue that genetic algorithms can be an efficient method to locate a good solution quickly in one to fifty node networks. It is believed that as the number of nodes in the Supply Chain increases, logistical decisions about delivery operations, stockholding, warehousing and economies of scale get more complex solutions. Furthermore, Information Technology (IT) is being applied to the problems of virtual logistics, efficiency and the environmental impact of Supply Chain networking. Greater economies of scale can be achieved through Internet links to network Supply Chains. Efficiencies can be obtained by monitoring network dynamics that is more ecologically sustainable options for supply routing, product choice, pollution as well as blocking. Freight transport decision making is an integral part of a sustainable production and distribution Supply Chain.   Tesco is undoubtedly a whole mall in itself.  Everything is literally found in one roof.  No longer limited to grocery items, it offers services that would allow a customer to avail of everything in one stop.  Besides the extra selling of books, cds, digital music, videos, flowers, games, gardening, gas, holidays and flights, they also provide financial services (e.g. credit cards, loans, mortgages, savings) insurance services (e.g. car, home, life, travel) telecoms services (e.g. Internet, home and mobile phone) and healthy living services (through its Tesco eDiets and healthy living club) .Tesco has developed various kinds of Tesco stores ranging from Tesco Extra, Metro Tesco and Tesco Express in its continuing quest to properly address the needs of their various customers when and where they want it (Tesco, 2005).   Advertising is done through personalities like Prunella Scales and Jane Horrocks.  The grocery store is also mainly identified by a Clubcard from which a significant 80 percent of the sales are transacted.  It also entails the use of vouchers which is also met with a similar success as over a billion vouchers are already given away.  This much is the same for its program “Computers in Schools” although the video wonders whether the schools really benefit and if it is an acceptable marketing scheme (Tesco, 2005).    Tesco has effectively launched its online shopping site, Tesco.com by taking into account the capacities of its competitors. Considering that Iceland, Tesco’s closest UK competitor, offers frozen goods only; Asda postponed its Internet launch; Somerfield and Budgens have totally withdrawn from their online services; and Sainsbury has limited services in comparison to Tesco (McAuliffe, 2000), the UK retail giant was able to successfully launch its website and clearly positioned the company through online marketing.   By taking Tesco and its online marketing as an example, the significance of budget in marketing communication can be understood further. Tesco has naturally allocated financial support in order to pursue its online services. Since this online access will allow the increased consumer access to Tesco, the budget allotted for marketing communication will eventually be recovered through online purchases. True enough, Tesco was able to recover great profits out of the marketing communications employed. Thus, the company was able to obtain two forms of expected outcome; one is the attainment of the objective and the other is the implementation of this strategy within the allotted support. In 2000, Tesco was able to take about 60,000 online grocery orders every week, making the company the world’s largest Internet food shopping service. Moreover, the company’s home delivery services are able to generate £5m a week (McAuliffe, 2000).   The online service clearly recovered the allocated budget of Tesco as the strategy continuously generates income for the UK retailer. In 2004, the company was able to gain 12.2 per cent to £16.5bn with pre-tax profit up 24.4 per cent to £822m. The company sales have increased up to 11.5 percent totaling to £13.1bn, while the operating profit was up 13.3 percent totalling to £707m. In the recent company statement, Tesco noted that the services of the company are attracting several new shoppers, wherein the average total expenditure of a consumer has increased by almost seven percent (McCue, 2004). In this case, the company was able to undertake marketing communication within its objective and budget.   Companies employ detailed business plans and strategies in order to gain several benefits from its competitors such as increased profits and enhanced customer relations as company objectives. Gaining customer loyalty is a corporate challenge today in this increasingly competitive and crowded marketplace because of the eventual profitability it will provide. The changing business world allowed customers to change as well. Company management had shifted their focus on their clients or customers so as to stay successfully in business with the need to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered. With the advent of technological innovations, logistical decisions about delivery operations, stockholding, warehousing and economies of scale get more complex solutions in today’s business environment.   Indeed, making a business successful in a particular setting demands crucial and detailed studies and examination of the factors that will generate the best results that will serve the aims and objectives of the company. In this light, owners of big business organizations operating in a competitive business environment should be in constant look out with its competitors and the overall status and events in the industry. Taking advantage of the opportunities and intensifying the strengths while minimizing the risks and weaknesses of a business firm greatly helps in predicting the success in business enterprise.               Examination on the business strategies and plans in order to answer to the demands of clients and customers through efficient delivery of such needs will not only increase the profit of an organization but will likewise gain the trust and competence of the clients and customers. Efficient management of delivery options in a particular company and looking into the problems encountered in operating the business may enhance the likelihood of a business corporation to attain its goals as enterprising organization.

Organizational and Managerial Characteristics of Market-Oriented Companies

ntroduction Business organizations are constantly seeking ways to enhance their performances in order to compete actively a...

The Effects of Relationship between the Employer and the Employees in Organizational Development

The Effects of Relationship between the Employer and the Employees in Organizational Development                 Effective and constant communication between the employer and the   employees develops better understanding that leads to productive work. Also, it   develops harmonious relationship that is necessary in organization development.               Organization development (OD) is the process of improving organizations.   It is a carefully planned improvement of an organization’s effectiveness and   viability, as a group and as individual employee or stakeholder. OD involves   consultant work in gathering data to define issues inside the workplace and   finding a suitable course of action. In this case, the organization is assessed in   creating an understanding of the current situation of the enterprise and identifying   opportunities that will meet the business objectives.               Organizational development is intended to be a response for the rapidly   changing business world. It is a complex organizational strategy in changing the   beliefs, attitudes, values and structure of an enterprise in better adaptation to   new technologies, tighter competition, and marketing challenges.               There is an increasing trend in giving more investments on employees.   Studies suggest that lucrative salaries and benefits do not guarantee productive   work. Work challenges, recognition and a sense of accomplishment matter more   in motivating the employees. Thus, organization development responds to these   needs in keeping the performance rate soaring. However, there is more   important factor in organizational development, like the relationship between the   employer and the employees.               The relationship between the employer and the employees is the   foundation of any organization. A healthy employer-employee relationship helps   to build a successful enterprise. An enterprise that is focused on growth and   profits should also give attention in establishing mutual trust with their   employees. It is imperative in continuous development of the organization as a   whole.               Compensations and remunerations are one of the major factors involved   in employment. It’s the obligation of the employer in paying the employees on   time. Withholding salaries does not only violates the law but also destroys the   mutual trust they set upon themselves. Unpaid compensations is not only a legal   issue but also a moral issue as well. It also involves the psychological contract   that even a physical document is not signed, it’s the employer’s propriety in   handing the right amount the employee had worked for.               The treatment of employees is also a major issue in organization   development. Experts claimed that workers’ opposition, militant unionism and   sabotage are results of management mistreatment. Studies also suggest that   companies could have achieved more success if the stakeholders treated their   employees more humanely rather than mechanically. This is directly connected   with the productive work of the employees. Performance rate is higher when   employees are provided with meaningful works and being fairly compensated for   their efforts.               Honesty also takes effect on the employer-employee relations. Notifying   issues inside the organization that will directly affect the employees should be   discussed openly to not create hard feelings among employees. For example, if a   company has financial problems and the compensations would be affected or   even some employees could be possibly relieved, it is better to deliver the bad   news straightly than to withhold information. Employees would appreciate   honesty, rather than keeping information that is not classified at all. There is an   ugly feeling of being left out when you were the last one who knew an issue   when in fact, you should have known better because it concerns you.               Also, honest and straightforward negotiations are required in   organizational development. Honest remuneration packages should not be   violated by the employers. While honest terms of work should be produced by   the employees. Dishonesty in the workplace leads to misunderstandings and   arguments inside the organization.               A formulation of progressive discipline guidelines fosters an orderly and   productive work environment. Rules and regulations should be clear and   understandable, so are punishments and disciplinary actions. Constant   supervision is necessary, including the statement of the problems, solicited view   of the employees, agreement on the problems and plan development.   Documentation should be maintained in keeping the process precise throughout.               Organization development is a complex and tedious process. It definitely involves a lot of investment on time and money. However, despite the toll it will   take on the organization, the benefits that will give on the growth and   development of the enterprise will eventually pay off. Mutual co-existence   between the employer and employees should be recognized, and the relationship   is simply symbiotic of nature.       References:   Employer-employee Strenuous Relationship: Areas of Concern and the Way Forward, Edit Article | July 2010, http://www.articlesbase.com   Organizational Development, http://www.odnetwork.org   Frood, David, The case for a new relationship between employees and employers, http://www.helium.com

The Effects of Relationship between the Employer and the Employees in Organizational Development

The Effects of Relationship between the Employer and the Employees in Organizational Development Effective and con...

The River Between" - A Message of Tolerance

"The River Between" details Waiyaki's rite of passage from childhood to adolescence and his coming to terms of society which has been in the verge of inevitable change due to colonialist culture.  This is one of the well known themes and motifs of African Literature which is the illustration of the conflict between tradition and modernization or African culture and Western culture.  The novel thus not only depicts the life of Waiyaki but it illustrates Africa in the midst of social change thus combining the biological and sociological approach.  The particular focus was made on the shift of values from the local to the colonial.  Education has been introduced in the milieu while at the same time they struggle against controversial ceremonies such as the female circumcision in the subplot.  The story takes place in Gikuyu specifically in the communities residing in its two ridges, which are symbolic and allegorical in the story.  The ridges are Kameno and Makuyu which make up Gikuyu's culture.  The novel focuses on Kameno where the protagonist, Waiyaki, resides.  This ridge upholds tradition and culture while the other ridge, Makuyu upholds change, Christianity and consequently deems the traditional practices as pagan and thus, evil.  The two ridges are in conflict with each other which represent the kind of conflict that troubles African culture.  The characters are part of the allegory as they are divided into two: The traditionalists, and the modernists.  Waiyaki's father, the ambivalent Chege, upholds the supremacy of their cultural tradition.  The modernist is Joshua which is clearly a Christian name convert.   Joshua deems traditional culture as evil and he is firm in his belief in Christianity's salvation.  Joshua has two daughters who are Muthoni and Nyambura who more or less provides the middle ground of such extreme oppositions.  The two daughters fuse the tradition and modern culture together.  Muthoni is very passionate in her desire to synthesize the positive aspects of both culture which involves purification and through circumcision despite being a Christian.  Circumcision remains to be the rite passage towards womanhood and Muthoni remains to find no faults in adhering to this tradition despite being Christian.  Muthoni runs away from home and undergoes the rite through her aunt in Kameno and no sooner dies because of an infection during the surgery.  Tradition is convicted that her death means that Christianity divides while Christianity sees her death as the dire consequences of adhering to such 'pagan' practices.   That is only the subplot of the novel.  The main plot has to do with the protagonist, Waiyaki.  Waiyaki is an ancestor of a prophet.  He is prophesized to save the Gikuyu people: "I say from the same tree, a son shall rise, and his duty shall be to lead and save the people!"  (24). It was also said in the prophecy that Waiyaki's father, Chege, should "Learn all the wisdom and the secrets of the white man" (24) but without learning the negative aspects.  Chege is also instructed to "Be true to your people and the ancient rites".  Because of this, Waiyaki becomes a messianic personality who is known to have a power that will save the land.  Chege heeds the prophecy by sending Waiyaki to the missionary school.  Waiyaki starts a school and becomes effective in proliferating education.  In this manner he does become a sort of Messiah by showing people the light of truth and education (115).  He is a Messiah precisely because he is in between, a Gikuyu man who was learned the ways of the Western and could inculcate new knowledge (positive aspects of European culture) that will save the tribe.  Waiyaki remains ambivalent, unsure and confused of his messianic goals.  He will then realize that Education will inform people of realizing how they have been colonized by Western settlers and that Education will pave their way towards Political unity and freedom.  As much as European knowledge has positive aspects, it cannot take over them.  Thus there only needs to be the search towards a middle or mediating ground, one that will sort out the best of both worlds: a new culture.  Waiyaki falls for Nyambura though, and refuses to renounce her which in turn suggests synthesis between the traditional Gikuyu and modern Gikuyu as Waiyaki, a pure Gikuyu takes in an uncircumcised Christian woman.  This will bring Waiyaki doom though as he is persecuted.      But to save Gikuyu is not so much in synthesizing two cultures together.  Muthondi died in the attempt to do that.  Instead the real purification begins with the reclaiming of the land overtaken by European settlers.  By staying in between and trying to find a middle ground, he is rejected by the two opposing sides of tradition and modernism.  It was clear from the allegory of the two ridges that the people were not merely separated by cultural beliefs, but also of land.  The Land is essential in the generation of their deepest wishes and desires as well as their roots. The parallelism is clear on the first page.  "When you stood in the valley, the two ridges ceased to be sleeping lions united by their common source of life." They are initially described as connected together by one river, which supplies them.  In this regard, they are united.  However, the river also serves as a division between the two rifts. "They became antagonists. You could tell this, not by anything tangible but by the way they faced each other, like two rivals ready to come to blows in a life and death struggle for the leadership of this isolated region." The intolerance brought by the disparities in belief divided the land and had been a cause of so much violence and deaths including Muthoni's death and Waiyaki's execution (1).  There has been a force of choice which would be inevitably violent.  The novel postulates that no one is supposed to be compelled to choose. Ngugi seems to sympathize with Waiyaki.  He shares several experiences with his protagonist, which involves the responsibilities and obligations he had accepted during the Mau Mau war.  By Waiyaki's breaking away from the messianic role to one that will prioritize his personal wellbeing, Ngugi is able to express the desire to be free from his preoccupations with education and leadership or the burden to save African society.  In the novel Ngugi is able to portray the tragedies of intolerance and why there is a need towards understanding between the two rifts by Waiyaki realizes this too late.  The novel ended in a tragic and inconclusive manner so the need towards reconciliation may echo and resonate all through-out.  Gikuyu will be doomed if it chooses to go on as it does.  It ends in a manner that will leave the reader to decide what to do next and ponder having already presented each side, and both its negative and positive aspects.  The novel in itself is a river between tradition and modernization as not only Waiyaki is placed in a decision, but also the reader, to do something about religious and cultural conflicts and intolerance in general.

The River Between" - A Message of Tolerance

"The River Between" details Waiyaki's rite of passage from childhood to adolescence and his coming to terms of society whic...

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