I am in agreeance with the statement "The best-performing
companies worry less about performance and more about their
organizational capabilities" (Bititci, 2015). Leadership has a focus on
building organizational capabilities and capacities. Depending on
how this is carried out will determine the performance and results.
Leadership should also consider focusing on maximizing the
performance of each employee. This can be done by testing each
employee’s capability to see what they can do. The level of
capabilities within an organization are important. For example, a
company can focus on a monthly sales goal or forecast. They must
try to achieve this goal within the organization. Anything that stands
in the way of achieving this goal needs to be eliminated. If the entire
organization puts forth the effort, it should get done. The organization
and employee capabilities are what will bring the performance out
and show positive results if done correctly.
Organizational culture is very important in the capabilities and
performance in an organization. When the culture has more of a non-
communicative and stressful approach, the performance will be
affected. When the culture is on more of a positive level and more
encouraging, this will end up being a more structured organization.
The communication will be strong, and employees will be more
motivated. Most of the time, this will end up in the organization
having increased profits and revenue. Employees will also feel more
empowered and will work together in meeting goals and open room
for growth.
Company A has very strong financials, but their culture could use
some work. The COO of Company A has indicated which areas of
operational capabilities that should be worked on. With the
incorporation of new technology brought in, this gives the company
room to become more efficient. They also need to work on their
employee retention rate as well. When they lost 15% of their
employees, this hurt the company. Luckily, there are several ways in
which improvement can be made. For the employee retention rating,
the company can provide training and team building. Also, some
employee benefits could be increased as an incentive. This is an
amazing starting point to have this change for the company and they
will start to see improvement. Company A should also offer salaries
that are a little more competitive when they are bringing aboard new
employees. The aircraft needs to be customer-friendly and safe at
the same time. Investing in their people and operational capabilities
to see an upward trend in their financials.
Company B isn’t in the same area when it comes to financials when
being compared to Company A. The new President for the company
is heading in the right direction with the implementation of the agile
approach. This makes for a more creative culture. They are geared
to having a sustainable focus for the future. The culture of Company
B is not at a good place right now. Their employees ended up taking
pay decreases. Today, the company has ended up spending a lot of
money on new software. This caused them to spend a lot of money
on this new software. This is taking away from their employees. The
company also does not have much of an HR team. They use outside
sources, so this makes employees not have anyone within the
company to rely on. Like Company A, Company B needs to invest in
training and development programs and increase their benefits. This
will help them out in the communication area as well. With the plan
the president has in place, it still must go through the other leaders to
determine if it will even work. The culture is very dependent on the
financials of the company. If it is not successful, the financials will go
down the drain. There is still much needed work to do to be in a good
place.
References:
SNHU Company A and Company B Notes
Bititci, U.S. (2015) Managing Business Performance. Wiley
Professional, Reference & Trade (Wiley K&L).
http://wileyplus.vitalsource.com/books/978111902596
