When I read the statement, "The best-performing companies worry
less about performance and more about their organizational
capabilities" (Bititci, 2015) I agreed with the statement completely.
When companies only care about the performance, they forget the
rest of the aspects within a company such as the people and culture
that ensure everything runs smoothly. Employees are the backbone
of the company making sure all processes and tasks are done
efficiently and effectively. In a Harvard article it stated,” These
capabilities—the collective skills, abilities, and expertise of an
organization—are the outcome of investments in staffing, training,
compensation, communication, and other human resources areas.
They represent the ways that people and resources are brought
together to accomplish work” (1). My understanding soon changed
about a company’s capabilities and showed that if a company only
looks a performance, they are not able to recognize key contributors
or individuals holding the company back. Companies need to utilize
their human resources in the most effective places so the individual
and the company can prosper.
a I believe that culture within organizations is extremely important
and should encourage success and promote teamwork throughout
the whole organization. This would ensure that all employees have all
the knowledge and skills needed to effectively execute their jobs.
This will also ensure that if employees didn’t have the information
need, they could reach out to peers for help. An organizations culture
should reinforce the capabilities and performance of a company,
promote employee’s satisfactions. When you have happy employee’s
performance increases, you will have less turnover, and all operations
tend to run smoothly. In an article it stated, “When an organization
has a strong culture, three things happen: Employees know how top
management wants them to respond to any situation, employees
believe that the expected response is the proper one, and employees
know that they will be rewarded for demonstrating the organization's
values” (2). This showed me that an organizational culture is a sort of
trust that everyone is pursuing a common goal, supporting each
other, and recognizing individuals hard-work when needed. Company
a need to begin to show that they care about employees and
compensate them fairly for the work put in. Also, Company A needs
to focus on executing on the capabilities they have shown instead of
ignoring them and taking the cost-effective path.
a a a a Through the analyzation of company, A is what some of the
leaders have to say and it seems that there was a common trend on
Company A falling behind on current expectations. Company A is
missing out on opportunities due to a lack in the capability of this
company They have an outdated It department that prevents any
technological advancements such as bundling. Company A also has an
aging aircraft in which the luxury side of their fleet is dated and does
not offer modern services. Company A seems to be over staffed and
lacks the capacity to invest into employable technology. It seems that
Company A has the capital and capability to update and modernize
their fleet but have not taken any step forward to modernization
which could increase their revenue. Company A also has a very fragile
culture in which the average turnover is 25% a year and the COO
stated, “I’m also concerned about recruitment, especially for pilots
and for skilled technicians. Because we operate in a great location, we
have not been keeping up on our compensation levels, and this may
make recruitment difficult soon”. This company is succeeding
currently performance wise, but it is missing opportunities to execute
new ideas and process which could positively enhance their company.
a a a a Throughout the analyzation of Company B, I found that there
does not seem to be much of a company culture, but more of just a
bland unorganized company. First, they have a new president who is
not experienced in the aviation’s field to lead them. I do believe that
lack of experience will be a hindrance, but her ideas of modernization
could propel this company to positive success. She wants to
implement enhance technology in turn increasing the capabilities of
hand-held passenger convenience. I also found that the sakes team
seemed very bland and unmotivated doing their job. They seemed
comfortable with reaching the same amount of revenue and
unmotivated when there has been a decline. The IT department like
the President seemed very motivated in innovation and making the
customers experience easier and positive. Overall, since Company B’s
revenue has been decreasing, the new president of the company is
trying to implement a new form of culture and expectations within
the company. I believe if the president successfully implements then
new culture and expectations then Company B will in turn prosper.
Works Cited
1.
Capitalizing on capabilities
. Harvard Business Review. (2014,
August 1). Retrieved February 20, 2022, from
https://hbr.org/2004/06/capitalizing-on-capabilities
2.
Society for Human Resource Management
. (n.d.). Retrieved
February 20, 2022, from
https://www.shrm.org/ResourcesAndTools/tools-and-
samples/toolkits/Pages/understandinganddevelopingorganizati
onalculture.aspx
