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Green Organization

Green Organization.
Green organization and its recruitment policies Introduction If the recruiters are thinking of creating a congruent and authentic employment brand which can help your organization attract, retain and repel employees, there comes the relevance of the word “green recruiting”. Recruiting, the most important function of HR, which entails attracting the right person for the right job at the right time, is changing its color. Organizations are trying to tap every bit of opportunity, wanting to look different and make a good impression, so that the right candidates with the environment friendly bent of mind apply for jobs.
Companies large and small are seeing a significant increase in the ROI of their recruitment and retention programs by creating an employment brand. One deliverable of a significant employment brand is green recruiting practices. This is not a “flavor of the month” or a new concept. Fortune 500 companies have been doing it for years. Continuously hearing words like eco-friendly, green, environment etc for the past few years, even the young generation has also attracted towards this concept. So they are also looking for an organization which is environment friendly.
In June, 2007 Dr John Sullivan wrote, “While candidates of all generations have begun evaluating potential employers based on their “greenness” few in recruiting have leveraged this hot topic in recruitment communication and activities”. He goes on to say, “Individual recruiters need to make the firm’s environmental stance a critical element of their sales pitch to potential applications and candidates”. The time has come for all employers to assess the degree of ‘greenness’ in which they operate. So, all the companies now a days are trying to portray themselves as eco friendly companies.

Organizations like Google and Timberland have made concerted efforts in portraying themselves as environment friendly organizations, having programs that support environment issues. Such programs include: extending $5,000 subsidies for employees who buy hybrid cars, dining facilities that serve organic food, charitable contributions to organizations that fight global warming, on- site composting of food waste and using fuel and solar power etc. Wipro have made concerted efforts in portraying themselves as environment friendly organizations, having programs like launching a new range of eco-friendly desktops and laptops.
The Wipro Greenware range is compliant with RoHS (Restriction of hazardous substances) directive, thereby reducing e-waste. Why green recruiting? It’s good to be Green. That’s what a lot of companies are finding, as they integrate environmentalism and sustainability into their corporate culture. Not only is environmentalism good for the community and the planet, it can help employees reduce waste and operate more efficiently. Companies tout their environmental initiatives in annual reports, core values, community activities and even advertising.
Yet, companies often fail to leverage their environmental efforts in one key area: and that’s recruiting, meaning they are missing a key opportunity – as studies show a commitment to environmentalism and sustainability can be a factor the most desirable candidates weigh when choosing an employer. ? Studies have shown that many Gen Y and college grads are concerned, or at least conscious, about how their behavior impacts the environment. What they consume, how it is packaged, what they drive and where they live are conscious choices that are made every day.
In the context of employment branding, green information should be positioned appropriately on the company website, career page or in a recruitment video. This approach can be a significant differentiator for a company that is interested in attracting top talent. There is no argument that the demand for sustainable practices is increasing. • 80% of current employees want to work for a “good company” (one that has a good reputation for environmental responsibility) and this percentage is expected to grow to 90% in the next 10 years. (Corporate Environmental Behavior and the Impact on Brand Values – Tandberg, 2007. • 77% of recent MBA graduates would forego some income to work for a firm with a credible sustainability strategy. (Stanford Graduate School Study, 2007). • Companies that use sustainable business practices are approximately 3% more profitable than those that don’t. (empirical analysis 2007 – Innovest Strategic Advisors. ) ? College graduates are increasingly seeking a company that is environment friendly. According to the survey commissioned by Maynard, mass based on-line board’s decision for college students, 80% of them opined that they are interested in a job that has a strong and positive influence on the environment.
Many institutes now offer a dedicated discipline, called “sustainability”, in the US in order to cater to the needs of student’s overarching demand for fusing business with environment. Things have to a point where jaw- dropping salaries are banished to the back burner and “going green” has soared in importance, while graduates figure out their employers to be. ? Global candidates are deeply fascinated about it. Countries like Germany, Australia, and Finland are very much attached to the eco- friendly concept.
So, if the companies want to recruit global candidates, they must do much more to reach the expectation of these students when it comes to environment. ? Company’s reputation can be increased by being eco friendly. People would prefer to buy the products sold by socially responsible company. Suppliers may prefer doing business with such companies. New alliances and partnerships they can make with other organization to reduce pollution and to protect the Mother Nature. Greenest companies in India A survey conducted by BT- AC Nielsen ORG-MARG, ranked Oil and Natural Gas Company (ONGC) the greenest company followed by Reliance Industries.
Overall, the oil and petroleum sector was considered the greenest sector in India. BPCL, Castrol India and HPCL are other companies in this sector that were rated green companies in the survey. The private sector companies were in a majority (13 out of 20) in the list of Top 20 greenest companies in India. India’s software companies are also considered green companies. IT companies are allowed to set up their offices within the city limits. This is because they do not harm the environment. Johnson and Johnson Ltd. , Chillibreeze, IBM, LG Electronics, PNB, Tata Motors and Hero Honda Motors are some of the other green companies in India.
These companies not only emphasized upon one another the importance of adopting green technologies, but also of addressing the issues of safety, health, environment and social obligations. So, to implement all these green practices companies should train their employees properly. Through training, to some extend they can make their employees follow go green slogan. But if they don’t have real interest in this concept, these companies can’t make it a great success. That is the reason why they should give more importance to green recruiting which will enable them to obtain right kind of a person for right job and for right organization.
Steps to Implement Green Recruiting ? Identify candidate decision criteria: Start by holding focus groups at industry conferences to identify what “green” factors would be important to individuals seeking new jobs. Next, ask candidates during interviews and on the Web site to list their decision criteria. During orientation, ask those who accepted jobs what criteria they used to make the decision. Finally, contact those who rejected your offers three to six months down the line to identify positives and negatives. Use this information to modify your recruiting processes and focus. Benchmark: Search the Web, benchmark with college recruiters and work with recruiting consultants to identify the best practices of other firms. Use this competitive analysis to gauge your success and to plan your future actions. ? Your Web site: Make sure that both “what you do” and the results of those efforts are prominent on your corporate careers Web site. Include your recycling statistics, as well as whether you are carbon neutral, limit greenhouse gases or win environmental awards. Include narrative or video profiles of your environmentally conscious employees.
If your company policies allow, link your corporate jobs site on major (but primarily nonpolitical) environmental Web sites. ? Be talked about. If you have a strong environmental record, it’s important to get “written up” in business, professional and industry publications as well as in newspapers and on TV. Work with the PR department to identify which of your practices are most likely to be appealing to the media and designate an individual to be available for interviews. ? Recruitment advertising. Advertise in magazines that candidates who are sensitive to the environment are likely to read.
Highlight in your recruitment ads a few “eye-catching” facts and any environmental awards you might have won. If you use brochures or paper recruiting materials, make sure they’re from recyclable stock and that it says so on the document. ? Job descriptions. Make sure that, where possible, job descriptions for high-volume hiring positions include responsibilities for minimizing negative environmental impacts. This is critical because if job seekers don’t see being environmentally friendly integrated into “every job” at the company, they might see your “green recruiting” as merely a PR effort.
If you’re really serious, include knowledge of environmental impacts under the skills-required section of your job descriptions. ? Interviews. Provide managers with “green” fact sheets to use during interviews. If you are really aggressive, provide candidates with a side-by-side comparison showing how your firm’s environmental record is superior to other firms they might be considering. ? Sourcing. One of the best ways to strengthen your environmental image is to hire lots of environmentally friendly employees who can spread your “green” story through word of mouth.
Have your recruiting team identify the sources that produce the highest-quality environmentally friendly candidates. Source at environmental organizations (i. e. , Sierra Club). Also, recruit at environmental events and use subscription lists from green publications for e-mail and direct-mail recruiting. ? Employer referrals. Having your employees spreading the word will help both recruiting and product sales. If you have the resources, proactively seek out employees who are highly visible in environmental circles and ask them specifically to talk up your firm, to seek out candidates and to provide you with names. Awards. Winning awards for excellence is always a major element of building an employment brand, so obviously winning “environmental” awards should be a major element of your strategy. ? Advisory group. Ask the advice of six to eight environmentally friendly employees about measuring the quality of the message you are sending and how to reach and convince more applicants of your strong “green” record. ? Products. Obviously, applicants want to know that the products they are helping to produce are environmentally friendly.
This means putting pressure on product advertising and marketing to include in your product ads and packaging the fact that your products are eco-friendly. In some industries, how you treat vendors and outsourced work can be important (i. e. , Starbucks, Nike). ? Value statements. Make sure that your corporate goals, values and even corporate business objectives include environmental elements. ? Annual report. Because some applicants take the time to read your annual report, make sure it includes sections that highlight your environmental record and the fact that you recruit environmentally friendly employees.
If your firm uses bio-diesel fuel, pays fair market value to suppliers, is energy-efficient or if it buys “carbon offsets,” highlight these selling points. ? Employee benefits. Consider adding holistic health options, paid time to volunteer for environmental causes, matching donations to green causes, and support for alternative transportation options to your benefit package. ? Reward criteria. Include this factor in the performance-appraisal system for all employees. Obviously, use it as a hiring criterion, but also use it as a critical element in promotions, bonuses and pay increases. Develop metrics and rewards. Because whatever you measure improves and adding rewards to the equation makes the behavior improve even faster, your green-recruiting effort must have metrics and rewards tied to it. Some of the metrics you want to include are the percentage of candidates aware of your strong environmental record, the number who rejects offers because of a poor record and the percentage of new hires who say your environmental record was one of their top-five reasons for accepting the offer.
Hold post-exit interviews with your top performers to identify whether environmental factors contributed to their exit. Benefits… When your employees volunteer an environmental clean up effort, getting their picture in the local media serves a dual purpose. Employees receive a form of public recognition for their efforts, and it creates a positive public image. This will also add to the company’s corporate social responsibility practices. Retention efforts can be improved by including creative benefits that specifically address green concerns.
Some examples include holistic health benefits, paid time to volunteer for environmental issues, financial support for alternative transportation options such as bus passes or rebates for purchasing hybrid cars, organic snack options in the employee break area, and matching employee contributions to environmental causes. By doing so, company can achieve goodwill as well as can retain and attract employees through its unique benefits offered to them. Conclusion Employees are searching for an authentic work experience where their personal values are in alignment with the organization’s values.
Companies that do not give consideration to being green, or just provide “green washing” lip service may be passed over by potential candidates who don’t wish to be associated with that kind of an organization. To know, whether your company is exactly working on so called ‘green atmosphere’, following questions need to be answered: • Do you have an environmental policy? Is it posted your career site? • Do you have a recycling program? If so are you tracking (and communicating) the amount of money you save and landfill space you have freed up? Are you using recyclable stock on your recruiting materials? • Is sustainability one of our core organizational values? If so, is it listed on your website? • Have you built in any environmental accountability into your performance appraisal system? • Do you incentivize employees in any way to support your environmental policies? • If your company has a reward system involving redeemable points, do you offer a green option, such as pledged donations to an earth friendly cause?
It is necessary for HR Managers to include firm’s eco-friendly messages with the firm’s recruitment process and employer brand. If your business can brag about its environmental savvy, be sure to tell applicants. And don’t just rely on your Web site. Get quoted in articles about environmental initiatives, Use word-of-mouth, asking employees to spread the environmental message, Place job advertisements in magazines read by your target applicants, Provide environmental talking points to emphasize during the interview process, Win environmental awards and attend environmental conferences.
Green recruiting helps the company to have its on identity in its recruitment practices when compared to all the other companies. Finally, just as with other goals, the only way to know the long term effects of going green on the company’s employment brand is to review appropriate HR metrics including effects on recruitment, retention, employee satisfaction, and productivity. Reference: 1. Bauer N Talya, Smith Aiman Lynda (1996). Green Career choices: The influence of ecological stance on recruiting, Journal of Business and Psychology.
Retrieved July 14, 2010 from http://www. springerlink. com/content/p7716gg4715017j0/ Felton O Brien (2007). Debating Green Recruiting. HR Executive online. Retrieved July 22, 2010 from http://www. hreonline. com/HRE/story. jsp? storyId=46706256 Huff Charlotte (2007). Green Recruiting Helps Bring in Top Talent. Workforce Management Online. Retrieved July 20,2010 from http:// www. workforce. com/section/06/feature/25/06/24/index. html Huff Charlotte (2007). Highlighting your Green. Workforce Management Online. Retrieved July 22,2010 from https://www. orkforce. com/section/06/feature/25/06/24/250626. html 5. Lizz pellet (2008). Green Recruiting: Cashing in on the Green to Enhance Your Employer branding efforts. Best practice institute. Retrieved July 15, 2010 from https://bestpracticeinstitute. org/public/doc/GreenRecruiting-CashinginontheGreentoEnhanceYourEmploymentBrandingEfforts. pdf Steere Vicki (2009). Employment brand goes green. Jobing foundation. Retrieved July 25,2010 from http://jobingfoundation. org/2009/07/ 7. Sullivan John (2007). Steps to Implement Green Recruiting.
HR Executive Online. Retrieved July 15, 2010 from http://www. hrexecutive. com/HRE/story. jsp? storyId=26541280 8. Sullivan John (2007). Green Recruiting: Building Your Environmental Employment Brand. HR Executive Online. Retieved July 17,2010 from – http://www. ere. net/2007/06/04/green-recruiting-building-your-environmental-employment-brand/ 9. http://www. careerxroads. com/news/updates/0209. asp. Retrieved July25, 2010 10. http://www. qualigence. com/Yaffe/newsletter/articles/tt/tt_121707. html. Retrieved July27, 2010

Green Organization

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Factors Preventing Target Organization From Reaching Desired State

Factors Preventing Target Organization From Reaching Desired State.
The paper adopts Caux Round Table Principles which are basically about ‘managing business ethics field research’ to explore experience, observing and documenting indicators of Fairyland culture. A lot of things are preventing Fairyland from achieving optimal performance with regards to issues of ethics. There seem to be no defined status of the company ethical issues thus there is little detail as to how to deal with the corporate ethics as well as employee and personal ethics.
There is no specially laid down code of conduct put in place to monitor the behaviour of the employees as well as the company in general. There seems to be double standards put in place for such. A code of conduct really defines the do’s and dont’s of individuals within a company and acts as the reference for the users especially in the daily operations of the oganization (Principles of Stakeholder Management, 1999). This in turn enhances and also clarifies the principles, values as well as the mission of the organization and also providing the unique standards of proffesional conduct.
Fairyland needs to come up with a well designed, understood and laid out code of conduct that needs to be followed by every company personell. The document will serve as a very important tool for communication thus reflecting the promise that the organization is fully commited in upholding its values, especially in dealing with matters such as maintaining its committment towards the employees, maintaining the relevant standards for doing business and also maintaining good relationships with the community at large (Dawn-Marie, 2000).

The code of ethics can also be used as a tool to encourage all round discussions in matters of ethics, and also improvement on how employees deal with all dilemas related to ethics, gray areas and also prejudices that are an occurrence in their daily work (Principles of Stakeholder Management, 1999). This will in turn be a complement to the rules, policies and standards of the organization, but not at all to act as a susbstitiute.
Therefore, the code of conduct will offer Fairyland an opportunity to publicly create for themselves a positive/good identity thus leading to gain of support from the political envoronment as well as the regulatory environment (Dawn-Marie, 2000). It will also lead to an increased levels of confidence in a public arena as well as mutual trust levels which will be high among important stakeholders. Another problem that seems to confront the Fairyland organization is the unhealthy chemistry that exists between the organization’s realities and the people that work for the organization.
This is evident in the bureaucracy levels that exists between the management and their employees. There needs to be a middle ground level between the two arms of the workforce so that there can be improved communication structure as well as enhanced means of ensuring there is good levels of understanding (Stephen, 2010). Enhanced reporting structures have also not been put in place which in turn leads to reporting that is constrained.
This in turn leads to a situation where unfavourable data or situations seem not to go through the organizational hierarchy very fast or with credibility that is insufficient leading to delayed right responses to any trouble that may be potential and that may harm the organization in any way. A situation also exists where those who like to bring controversies about some issues in the organization (the whisle blowers), seem not to be tolerated or given the right protections that they need.
It looks like all that exists is a policy that protects the whisle blowers, but how effective is it and does it really guarantee the safety and guards the individual’s rights? There is also no authorised personell to deal with ethical issues within the organization. Their structure is not well understood and a suggestion is that there needs to be an ombudsman office which really deals with this issue effectively (Stephen, 2010). This in turn reduces chances of the management to easily manipulate the ethical issues to favour them rather than giving the employees too a fair play ground.
As observed, the management, executive directors and board of management are the ones that seem to be dealing with ethical conflicts. This forms the core of the organization as a result leading to a situation where they would be likely to impose their ruling or their personal agendas in such matters. Another option to deal with this issue is having an external authority that deals with ethical issues, such will assit in providing to the employees a platform to express themselves freely without fear of intimidation.
Poor or rather weak transparency standards in place and also the supremacy of the shareholder situation that makes it hard for Fairyland to take into consideration the community, environmental and community interests when making decisions. There needs to form a legal structure to enhance corporate accountability and enable the organization to achieve liquidity while maintaining its vision and mission.
In general it looks likje there is team spirit and proffessionalism promotion/motivation in FairyLand with more employer creativity and customer service encouraged. However, the problem seems to be the evaluation process of these measures and how in general does the company determine that their culture is constantly improving over time. There is soo much generalization of the issues without prior planning , coming up with “on point” balanced score cards and also the design and implementation or execution of action plans.
Futher, strategies to mitigate ethical issues as well as improvement in team performance is needed here. There is overall lack of incentives offered to ensure that ethics are upheld and all forms of ethics implementation are rewarded. Incentives to reward good ethics implementation by employees should be encouraged to sustain and maintain a culture of integrity, hard work and success in the business they are dealing with (Principles of Stakeholder Management, 1999).
Works Cited Dawn-Marie, D. and Michael H. W. , (2000). Ethics Matters: How to Implement Values-Driven Management, p. 77 Principles of Stakeholder Management, (1999). The Clarkson Centre for Business Ethics, p. 12 Stephen B. , (2010). Young Organizations and Ethical Behaviors: Anxiety has a Hundred Faces, 30th April 2010 The Caux Round Table Principles, Managing Business Ethics, as described in Chapter 11 (pp. 390-394)

Factors Preventing Target Organization From Reaching Desired State

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The Importance of Expatriates In Organizations

The Importance of Expatriates In Organizations.
Introduction
The importance of the management of expatriate’s has grown as the number of multinational companies has increased significantly over the last few decades, therefore increasing the need to be aware of potential problems which could cause high failure rates in expatriate assignments (Anderson,2005). Porter and Tansky (1999) write that an unsuccessful expatriate assignment is very costly for both an organisation and the expatriate themselves. But despite this very few companies have adequate processes for both selecting and training these expatriates.
As Harzing (1995: 457) notes, virtually every writer measures expatriate failure as “the percentage of expatriates returning home before their assignment contract expires”. Brewster (1988) also defines failure as assignments where expatriates were brought home earlier than planned. Brewster and Scullion (1997) say that the fact that corporations have heavy cost pressures has led to the policies for employee movement across countries being looked at. They also observe that it is becoming more noticeable that both the social and economic cost of failure in business abroad is more damaging than business done in home countries, especially in terms of market share and damage of customer trust (Zeira and Banai,1984).

It is therefore pertinent for academic research to both look at the major issues associated with expatriate failure and why expatriates often ‘fail’ in their assignments. From reading the literature these can be identified mainly as a lack of thorough selection procedures from employers to identify which managers would be successful on assignments in foreign countries.
This can range from not identifying what attributes certain candidates have that would make them more likely to succeed, to not identifying the family situations of potential expatriates which would also be conducive to successful assignments abroad. Once these factors have been identified it is then logical to assess what procedures could be put in place for the company to stop failure of expatriate assignments and how they can identify successful candidates for the roles. This is the format this essay will follow.
Reasons for expatriate failure
This study will first look at the issues associated with expatriate failure and what reasons and factors there are which lead to this end result. Enderwick and Hodgson (1993) observe that expatriate failure is caused by rash recruitment policies combined with preparation and training which is not thorough enough for the manager. This draws attention to the limited role of HR in the management of expatriates, and Halcrow (1999) also writes that HR are confined to administrative support as opposed to playing any meaningful role in any strategic aspects.
It is this lack of attention to detail and impulsive selection practice for expatriates which causes many of the problems. It fails to identify different characteristics and traits which are likely to be conducive to success in expatriate projects. Klaus (1995) notes that in the majority of companies expatriate selection happens quickly and irrationally. Something which is inherent in many international businesses is the fact that their selection procedures for expatriate managers are rather informal and they do not possess thorough enough assessments (Brewster.1991).
Mendenhall and Oddou (1985: 39) argue that companies often think that domestic performance success would equal overseas performance success, regarding the manager’s technical skills as being the most important factor to consider when looking at candidates to select for managing projects abroad. This shows a disregard for identifying the differences which can affect performances in different countries and cultures. The underlying assumption that companies who use this formula is that “Managing [a] company is a scientific art. The executive accomplishing the task in New York can surely perform as adequately in Hong Kong” (Baker & Ivancevich,1971: 40). Therefore a lot of multinational companies tend to send the manager and their family to the foreign countries without any cultural training. And when training is administered it is often far too broad or is not followed up with any reflection on how effective it was (Tung, 1981).
Brewster and Scullion (1997) discuss these difficulties that International companies who do actually undertake training and development programmes for expatriates come across. The first of these is that the manager not only has to adjust to a new job but also to an entirely different culture which they are not familiar with (Mendenhall and Oddou, 1985). As well as this, there is the family to consider. Training programmes for families also needs to be addressed as this is considered a major factor behind expatriate failure, and this is often not addressed correctly or at all. There is however, evidence that managers themselves value cultural training an awful lot and see the benefits from this (Brewster and Pickard, 1994). Cross-cultural training has long been proven to enable effective cross cultural assignments, yet still a lot of firms do not utilise this (Black, 1988). Different training and developmental models for these managers working abroad have been worked on over the last decade. These tend to take into account the job and the individual as well as the culture before deciding the amount and type of personal development that is required (Tung, 1981). Mendenhall and Oddou (1986) have developed a ’cross- cultural training approach’, consisting of three varying levels. Information-giving approaches are those which consist of factual briefings and cultural awareness development. Affective approaches would usually consist of cultural development combined with different scenarios and role plays. Finally, immersion approaches. These are different styles of assessment centres and in the field experience and scenarios. According to this model the style of management training given should take into account on a number of factors dependent on the project and the manager. These could include the length of stay and the amount of integration required to fit in with the host culture.(Mendenhall and Oddou, 1986)
Mendenhall et al. acknowledge there are many personal obstacles which could lead to many expatriates not completing their assignments and being branded a failure. These include factors such as “culture shock, differences in work-related norms, isolation, homesickness, differences in health care, housing, schooling, cuisine, and the cost of living, to name but a few” (1987: 331). These are all personal characteristics and attributes which would affect expatriate manager’s morale and ability to do an effective job. Porter and Tansky (1999) write that a high learning orientation is critical for an expatriate manager, this is because they will have continual experiences which are not similar to those they usually experience, and will need to be able to be resilient in the face of different challenges. Anderson (2005: 567) notes that although in the private sector the selection of expatriates is usually down to their technical competence, with “minimal attention being paid to the interpersonal skills and domestic situations of these potential expatriates”, that non-government organisations do actually utilise methods such as psychological testing and a variety of methods to ensure that the expatriates family is taken into consideration as well . These methods therefore usually lead to more effective expatriate assignments and less failures, in the next section of this report we will delve deeper into ways in which the likelihood of expatriate success can be increased.
What can be done to improve expatriate failure rates?
Currently the selection processes for expatriate candidates are not effective enough in predicting which managers will be successful in these assignments. It is necessary to focus on how these can be improved to address the rate of failures among expatriates. Halcrow (1999) has reported that less than two thirds of a survey of HR professionals identified personality as an important consideration when picking expatriate candidates, and 11 percent said it has little or no importance at all to the process. Family issues were also given the lowest of priorities, and 25 percent did not regard them as important. Here then, are the issues that need to be addressed, as can be seen from the previous section whereby these were identified as major factors in the success of expatriate projects. Effective selection, training and placement of expatriate managers is critical to international success argue Nicholson et al. (1990), and therefore the procedures put in place for this need to be effective.
Mendenhall et al.(1987: 333) state they have attempted to find the criteria which can predict productivity and acclimatisation in overseas assignments, and that a set of personality factors have been identified by numerous authors. They profess that these are “self-orientation, others-orientation and perceptual orientation” . Self-orientation includes factors such as how to reduce stress and how managers deal with being alone whilst abroad. ‘Others’ orientation includes factors such as how good the manager is at forming relationships and their ability to communicate with others. ‘Perceptual’ orientation includes different factors such as how flexible a person is and how open minded they can be. However, they indicate that US firm’s still appear to use only technical competence as their criteria for expatriate selection, and this is what needs to change as that is not a great predictor of expatriate manager success. The model proposed by Aycan (1997) also says that factors should be identified which are expected to account for a substantial amount of variance in expatriate adjustment. This is the fit between the expatriate and their environment which leads to less stress and better work productivity. This encompassed psychological, socio cultural and work adjustment. It is also required that organisational support and preparation is necessary.
Porter and Tansky write about the possibility of a learning orientation which could be important for both assessment and training for expatriates. They suggest that employee’s with weaker learning orientation could result in low levels of judgement in challenging foreign circumstances and vice versa. They state that this learning orientation approach could “benefit employees and their families and can increase the organisation’s chance for international success” (1999: 48). Porter and Tansky (1999: 50) observe that to eliminate the risk of expatriate failure that more emphasis should be placed on: “better identification of employee’s who are likely to function effectively in different cultures, development activities to enhance functioning in the expatriate role, and systematic analysis of problems during the expatriate assignment.” Mendenhall et al (1997) observe the impact upon spouses and families is also not taken into account when selecting managers for expatriation. As can be seen in the previous half of this report, how their family copes with the relocation can impact greatly upon the morale of expatriate managers. Some academics also suggest that the families of expatriates should be assessed on similar criteria to the managers themselves. Stone (1986) observes that failing to identify this problem is the greatest failure in the selection process for expatriates. Therefore one would have to agree that, as the family is seen as a major factor in whether a expatriate manager succeeds or not then they should definitely be taken into account during the selection process.
Guptara (1986) has written that there are a number of psychological tests that can be used in the recruitment processes for expatriates to test such psychological traits which could be conducive to successful expatriates, however this does not appear to be commonplace in corporate recruitment processes. Ioannou (1995) discusses the results of a National Foreign Trade Council of New York survey. Here it was shown that a variety companies did not use any form of psychological testing for possible expatriate managers. Tung (1982) finds that it is extremely rare that a company carries out a thorough assessment of a manager who is being considered to work in another part of the company abroad. Porter and Tansky (1999) advocate the application of a learning orientation to help this. They suggest questionnaire responses to show details on a managers beliefs about different traits and if they possess them. As well as task simulations to show if a person has different learning orientation behaviours. For example who which people will look for new strategies rather than rescind from these strategies when things do not go as planned immediately (1999:52).Here can be seen the discrepancy between academic musings on the topic and that of the practitioners. Writers emphasise soft skills while actual research into company practice indicates an obvious reliance on technical competence for the selection. If this were to change then expatriate projects may achieve a greater success rate.
Two major propositions can also be derived from Mendenhall and Oddou (1985) findings. The first would be that expatriate cultural adaptation is a multi dimensional process rather than a one dimensional one. This means that selection procedures of international companies for expatriates should be changed from their present one dimensional focus on technical competence as the most important criteria towards a more multi dimensional one. This should focus therefore focus on personal attributes which may be conducive to success working as an expatriate manager. Mendenhall and Oddou (1985) also recommend that training which deals with these factors needs putting in place, and which needs to be multi dimensional as opposed to one dimensional. Gudykunst, Hammer, and Wiseman (1977) combined a number of differing development approaches and compared the cultural adaptation abilities of managers who received the integrated training with managers who were the recipients of just one dimensional training. Integrated training produced much greater levels of culture adaptation. Along with other academics they again mention that both the selection and training processes must include the family of the expatriate. As well as this the culture adaptation training should be given to the expatriate’s family. As observed in the first half of this essay, it was shown that it was vital that not only the expatriate manager themselves, but also their family was happy as both had an effect on morale and performance. Corporate HR teams should have a clear direction to also hire a work fore who are internationally comfortable and experience too. Thus these would prove to be effective expatriate managers as they are relatively used to the process and overcoming the challenges they would face (Mendenhall and Oddou.1985).
Conclusion
In conclusion as many academics have identified there are serious problems with the way many corporations select and manage expatriate managers and their assignments. Many problems stem from the initial selection stage which is seen to be very lax and informal from many different businesses. These initial mistakes in the selection process mainly centre around focusing purely on technical competencies within managers for expatriate selection, and this has been proven to not be the most successful of indicators for success in international assignments of this manner. This is because it fails to take into account other factors which make a person more likely to be successful. This can include personality traits such as adaptability and how resilient they are. It also neglects the domestic and family situation of different managers, and indeed many HR teams have said that they do not even take this into consideration or treat it as important at all.
Academics have also suggested solutions to these problems in the way of recruitment processes and training processes which would be incredibly useful for business’s to implement with their selection and training for expatriates. These vary from personality tests to assess the traits that people have and if these would be conducive to being successful as an expatriate manager abroad, to a variety of assessment centre styles testing out people in different scenarios and if they were the type of person likely to succeed. As well as this it would be recommended that companies look at the family of potential expatriate managers to see if these were also likely to be happy once moving abroad as this has a visible and proven impact on the morale of expatriate managers. Training also needs to be more effective and focus on broader issues as opposed to just technical competency and understanding company systems fully, but to train expatriate managers culturally as well. Overall the key problems are predominantly to do with the selection processes of corporations. They need to improve by taking a wider range of issues into consideration and not just a one dimensional view of ‘if it works in our country it will work in another culturally different county’ approach. But they need to consider the softer side of managers, such as their characteristics and family lives, this is something business leaders could learn from academics.
Bibliography

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Porter G. and Tansky J. (1999) Expatriate success may depend on a learning orientation: Considerations for selection and training. Human Resource Management. Spring. 47-59
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The Importance of Expatriates In Organizations

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Current Social Work Organization

Current Social Work Organization.
In the following assignment, I will briefly define the ‘Enlightenment’ and the specific circumstances when it emerged. I will identify and discuss, if the ‘Enlightenment’ has core values and I will give reasons to backup my decisions. Then there will be a brief discussion about the current features of Social Work organisation and anti-discriminatory practice in relation to women. I will explain if the current feature of Social Work Practice demonstrates any link with the ‘Enlightenment’ values.
Due to word limitation, it is difficult to discuss and analyse all of the ‘Enlightenment’ values. I will focus on two of the values: ‘tolerance and freedom’ to discuss and analyse them with the conjunction of the Social Work Practice.
Benson et al (cited in Spybey, T. 1997) explains that “The ‘Enlightenment’ is a term used to describe those thinkers of the eighteenth century who established the basis of looking at the society in a scientific way”. The’ Enlightenment’ movements started in 16th and 17th century. Thus “It’s roots go much farther back in western history and it continued to develop long after the 18th century, Hollinger (1994) calls it “a programme for improving human life was worked out”. It took place in 18th century but mainly in the second half of the18th century, French educated men and women called themselves ‘Philosophes’ who became known as the ‘Enlightenment’.

According to Porter (1990 cited in Hall et al 1992: 24) “The Enlightenment was the era which saw the emergence of a secular intelligentsia large enough and powerful enough for the first time to challenge the clergy. The key domain in which ‘Enlightenment’ intellectuals involved in supporting existing, man and society, which was sustained by the church authority and it’s monopoly over the information media of the time”.
The ‘Enlightenment’ challenged the traditional and religious views and ideas. The society, the world, human-beings and nature, all were seen in the light of the traditional and religious views which were dominated by Christianity. Hamilton (1997 cited in Handouts, 2003) and Hall et al (1992: 7) explains that “From around 1760, “A perspective summed up in Voltaire’s phrase ‘�crasez l’infame’: means ‘crush the infamous thing’ and … it became a nutritious catchphrase”. It opposed the Catholic Church and religious beliefs for example Script of Bible, miracles associated with Jesus and other prophets, God and angel’s existence, the church’s authority and people’s beliefs were criticized, which were based on the religion and tradition.
Hall et al (1992: 20) expresses that “The ‘Enlightenment is the foundation of ‘Modernity’ and ‘Modern Social Science’. It changed the way of thinking by comprehending it as systematic, scientific and practical”. Its emergence gave ‘Philosophes’ a wider scoops to explore beyond their religious and traditional beliefs. It created an atmosphere for ‘Philosophes’ to believe in the “pre-eminence of empirical, materialist knowledge: the model in this respect furnished by science, an enthusiasm for technological and medical progress and a desire for legal and constitutional reform” (Johnson, I. Handouts: 2003). Basically, the ‘Enlightenment laid a foundation for people to think liberally and have some sense of equality in the society.
In my view, the above significant factors were the bases of the ‘Enlightenment’s values, which let the ‘Enlightenment’ develop and progress steadily. Because it was the first time when it was made possible for people to explore and express their personal beliefs and view and test the validity of their thoughts, through scientific, systematic ways and without being bounded by religious and traditional restrictions. The ‘Enlightenment’ values brought in changes and development in the society and in the people’s views and thoughts. It set the milestone for our new modern world that we live in today.
It also opened up the opportunities for ‘Philosophes’ to work, explore and experiment in a wider context and relay their ideas and views with some freedom. It abolished the traditional and superstitious thoughts and prejudices. It created opportunities for legal and religious reformation to take place. I think that all the changes and development have only taken place because the ‘Enlightenment’ values were in existence and were strong enough to challenge the strongest authority; the churches of that time. As churches and its authorities have had a great influence and power over people, economy, politics, law, social, every day life even the ruler/s of that time.
Hall et al (1992: 21-22) had defined the core values of the ‘Enlightenment’ which are summarised as the following:
* Reason (nationality): systemized acquaintances (pragmatic or experimented).
* Empiricism: human-beings; views and awareness that being gained through their perceptions and judgements.
* Science: based on scientific methods and theories and can be tested systematically and scientifically.
* Universalism: motives and science can be functional in all and every situation; if the principal were the same.
* Progress: the concept of improvement in the natural and social conditions of human beings.
* Individualism: a society is based on the thoughts and beliefs of its members and each member id origin of all “knowledge and action and his reasons can not be subjective to a higher authority.
* Toleration: the notion of that all human-beings are essentially the same, despite their religious or moral convictions and that the beliefs of other races and civilization not inherently inferior to those of European Christianity.
* Freedom: an opposition to feudal and traditional constraints or on believes: trades, communication, social interaction, sexuality, and ownership of property (although as we shall see the extension of freedom to women and the lower-classes was problematic for Philosophies)” (Hall et al. 1992: 22-23).
* Uniformity of human nature: all the humankinds are the same all around the world.
* Secularism: non-religious and non-traditional authorities and an opposition to the traditional religious authority and myths.
Now, I will discuss the ‘Enlightenment’s values: ‘toleration’ and ‘freedom’ in the correlation with the current Social Work practice especially in relation to anti-discriminatory practice regarding to women, to establish if the Enlightenment’s values are linked or have influenced Social Work practice.
I have experienced through my work experience with different communities that generally, women are treated unfairly and unequally in the society at most levels. Women have less freedom and rights than men. Globally, the women of 21th century are still struggling to gain an equal place as men in the society.
Guru (2003: class-notes) stresses that “From birth to death women have to struggle in their lives to access their rights e.g welfare, personal, social, political, human, cultural, traditional, religious, labourer, employment”.
The Social Work emphasises strongly on anti-oppressive and anti-discriminatory practice. “During the late 1980s social work education became increasingly aware of the impact of oppression and discrimination on clients and communities. There was a growing and recognition of relative neglect of such issues in traditional approaches to social work in 1989, the Central Council for Education and Training in Social (CCETSW) laid down the regulations and requirements for the students” of Social work to practice in anti- discriminatory ways. …CCETSW also seek to ensure that students are prepared to combat other forms of discrimination based on age, gender, sexual orientation, class, disability, culture or creed” (CCETSW 1989: 10 cited in Thompson, N. 1997: 1).
The change in the CCETSW’s regulation indicates that the discrimination still exists especially against certain groups and women are one of them and there is a need to combat discrimination. Moreover, it also states that it was recognised that the discrimination was linked with ‘traditional approaches’. It may mean that the ‘traditional views’ still exists in our today’s society, which the ‘Enlightenment’ wanted to get rid of, to give people ‘freedom’ and to promote equality for all individuals without their differences they had through ‘toleration’. Obviously, the “Enlightenment certainly propagated concept of equality (limited), democracy and emancipation ….” (Hall et al.1992: 33).
But when it comes to women then it seems like that the women were almost invisible in the ‘Enlightenment’. Hall et al (1992: 60) expressed that “There was no Enlightenment for women. However they (Enlightenment) challenged the champion the rights of commons, the rights of Citizens, slaves, Jews, Indians and children but not those of women”.
Under the ‘Enlightenment’s values of ‘toleration and freedom’: “all the human-beings are essentially the same” but it was not applied to women. Porter (2001: 69) explains that “The ‘Enlightenment’ helped to free a man from his past….by declaring that “all human-beings are equal despite their race, religion, beliefs, civilization and moral convictions… and Lock (1992 referred in Hall et al. 1992: 66) adds in that according to the ‘Enlightenment’, “Every man has an equal right ‘to his natural freedom”. Similar, the ‘Code of Practice for Social Care Worker (CPSCW) requires that the social care workers must “promote equal opportunities for service users and… respecting diversity and different cultures and values” (GSCC, 2002: 1.5-1.6).
Moreover, the Social work values emphasises that the social workers should “identifies and question their own values and prejudices, and their implication of practice;… and they should “Respect and value uniqueness and adversity….and identify (discrimination), analyse and take action to counter discrimination, racism, disadvantage, inequality and injustice using strategies appropriate to role and context” (CCETSW, paper 30 referred in UB. 2002: 6).
Social work is not focusing on certain and specific groups or people where as the ‘Enlightenment’ was concerned with the specific group/s of the society. The ‘freedom’ and ‘toleration’ was for certain maters and specific groups but there were n laid rules or principals for ‘Philosophes’ to follow and the ‘Philosophes’ themselves were a small group of people. Therefore, the social work value gave people a direct power to clients by letting them choosing and decide for themselves and social worker are advised to “promote opportunities for people to use their own strengths to make decisions for themselves (CCETSW, paper 30 cited in UB. 2002: 4). In other words, social work has widened the concept of ‘freedom’ and ‘toleration’ by being considerate for all members of the community, which is now-a-days known as ‘anti-discrimination’, freedom of choice’ and ‘equality’.
It demonstrates that the ‘Enlightenment’ have given the idea and Social work made it possible for people by assisting clients and by practicing it physically. That does not mean that the social work have followed the ‘Enlightenment’ concept and values unswervingly. But initially, the idea was there to follow and it may be possible that the ‘feminist’ movements got the idea from the ‘Enlightenment’ and modified it according to the current needs. Thompson (1997: 8) described that the “influence of feminism in sociology was beginning to extend to social policy in general and social work in particular”.
Lagan et al (1992: 112-120) agreed with this statement by accentuating that the feminism had great influence on social work theories. Social work had contributed to help women to achieve political, economical, educational, legal and social rights. For example, Beloff (1976 referred in Thompson, N. 1997: 5) argues that the “legislation changes were part of women liberal programme of reform e.g. rights for divorce, Equal Pay Act 1970 , Sex Discrimination Act 1975”. The social work worked itself and worked with ‘feminist and liberal movements’ to fight for ‘women’s rights’. Although, the social work has adopted the ideas from ‘feminists’ or other liberal movements but the social work can be distinguished from other movements. Initially, it worked with and for all groups and classes. Second, it developed rapidly and extensively in many areas of social issues such as children, disabled people, aged, ethnic minorities, poor and others.
The women have developed and have gained rights with the help of social work. Social work has made and is making a useful contribution for women rights and for their development. Lagan et al (1992: 40) emphasis that the “Social work is mainly done by the Female Social workers and with the Female clients…. As being women, Social workers shared the common understanding and experiences, as very much like their clients”. That made the social work to approach most women in the society at all levels and to help eliminate women’s social problems and raise issues which needed to be address to combat oppression and discrimination.
We see the Western Women as ‘Modern’, independent, intellectual, and strong. But it can be argued that the women are still at disadvantage in the society. Many national studies and statistics show that “Overall, women are disadvantaged in health, education, economy, politics, and employment and through out the system” (Carter, A. 1988: 77-112). However, we can not deny the fact that women have been victimized by the system and the society. Despite the social work practice and attempts for women’s rights, “there are still gaps and work needs to be done in accordance to give women equal rights” (Surrinder, G.2003). It is true that media has blamed social work practice in the past and social workers are seen as government’s representatives and according to Murphy (2003: 7) the Social workers are not very much liked by the general public.
There are also issues regarding to social worker’s practice e.g. practicing in ‘traditional’ way due to personal prejudices, which has oppressed the clients and has stigmatized the social work itself. Thompson (1997: 11) emphasise that the “…social work practice which does not take account of oppression and discrimination can not be seen as ‘good practice….”. The ‘bad practice’ is portrayed through the media but the good practice is not awarded and neither praised by media. The social work constantly reviews the policies to encounter prejudices and emphasises high on anti-discriminatory practice.
In conclusion, I agree with Hall et al (1992: 266) that the “Enlightenment’ played a part in …abolition of prejudice and superstition…and has given freedom to man”. I would say that where the ‘Enlightenment’ movements have played a vital role in the modern thinking and have given the initiative idea of the ‘Toleration and freedom’, which now has taken a new shape of ‘equality and anti-discrimination’ within a broader context. But at same time, the ‘Enlightenment’ has indirectly contributed against women. Maybe it was due to ‘unintended consequences’ (Johnson, I. 2003: 2), which were not identified, measured and recognised by the ‘Enlightenment’ or may be ‘Enlightenment did not want to recognise it. As ‘Enlightenment’ was a men dominated movement.
It may have contributed to prejudice and discriminate women by not including and involving them at the very early stage of the ‘Enlightenment’ movements. And that could be the cause that women’s voice for their rights was an echo in the vacuum and was not heard till lately. Therefore, social work has worked extensively for women’s rights but there is still a lot of work that needs to be done.
My suggestion is that the social work should identify oppression and discrimination and combat it at personal levels first and then at institutional levels. This action should not only be taken by the professionals but all the individuals should get involved in it. Otherwise, just like the ‘Enlightenment’: left the women behind, the individuals will be imperceptible and power will shift to the professionals who will take over. If it will happen then it may take us back to the early ‘Enlightenment’ age, where only the ‘Enlightenment’ educated, had the power and voice.

Current Social Work Organization

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Innovation In Organizations That Stems From `The Concept Of `National Systems Of Innovation`

Innovation In Organizations That Stems From `The Concept Of `National Systems Of Innovation`.
The vicissitude in human wants and the desires to progress in ways of conducting their activities has brought about the need to embrace constantly means to bring about innovation in technology and pattern of operating a business concern. The concept on National System of Innovation (NSI) has to do with a collaborative effort between organizations in the public sector and their counterpart in private sector to form a network in bringing initiatives that would culminate into innovative technologies.
According to Freeman (1987), who first used the concept in published form, he defined National System of Innovation as “…the network of institutions in the public and private sectors whose activities and interactions initiate, import, and diffuse new technologies”. NSI, thus includes those political, social, economical, cultural, organizational and institutional factors that promotes innovation and its utilization (Edquist, 1997: 14, cited in Edquist 2003: 4).
For National System of Innovation, theories have being amply utilized in bringing about innovation creativity as pertaining to national dimension. Theories are abstractions from the real world to give and show the existing relationship between or among a variables or a given phenomenon. Thus, they are as map used in showing the direction of the known from the unknown. In social sciences, scholars had propounded diverse theories in explaining different social different situations. However, other methodologies had being utilized for NSI, other than theoretical approach.

These include empirical case studies approach, while other focus more on research and development system (Edquist 2003). Outside the National System Innovation, there are other genres of innovation development pertaining to sub political geographical sector, example the Regional System Innovation, and Local System Innovation. System Innovative concept could be categorized into product innovations and process innovations. Product innovations embrace new or better product or services, both in material form and intangibles.
While, process innovation entails new ways of producing goods and services. Both system innovation concepts maybe technological or organizational based. Giving an illustration on the usefulness of National System Innovation Freeman (1987), explains that Japanese industry and innovative performance, during its post war era is linked on the competence of its national system to direct resources to innovation and investment in new strategic activities. Lundvall (1998) used three central points to distinguished economics of innovation with the neoclassical mainstream economies.
Firstly, economic of innovation focus more on change, while the neo classical economics is mostly central focused. Secondly, the neo-classical economies have general validated theory; while economics of innovation is an open approach that has united theory. Thirdly, agents of change with diversity of variables are central to neoclassical economies, while economics of innovation evolutionary mechanisms are fundamental.
This write-up will be specific in analyzing a segment of National System Innovation that pertains to economy geography, i. . industry agglomeration. BACKGROUND TO AGGLOMERATION OR SPATIAL CLUSTERING THEORY Agglomeration as a concept entails the clustering of people or the concentration of economic activities in an area. This concept according to Malmberg & Peter (2001:3) has two angles to it. Firstly, the spatial concentration of people in an urbanized area brings about gains from urbanization economies. “Agglomeration economies in this sense accrue from the geographical propinquity of industries and services in general” (Maskell 2001:2).
Secondly, the advantages ascribed to localization of industries (Industry agglomeration) is numerous in terms of having adequate labour skill, reduced raw material sourcing, technology and infrastructure improvement, having access to subsidiary firms services, competitive advantage inter-alia. Firms agglomeration goes a long way to improve the profitability of firms by reducing their costs of exchange of both goods and information (Appold 1995, cited in Malmberg & Maskell 2001:9)
Maskell (2001:3) explains that locational economies embrace those economies that arise from the geographical agglomeration of related economic activities. Thus, spatial clustering has to do with the concentration of similar firms in the same industry in a locality. This is what the agglomeration theory or clustering theory entails; that is, it is based on classical issues pertaining economy geography. Literatures on clustering theory have two source of knowledge.
This based on ideographic work that has to do with historical origin, and the other is on the development of different typologies of localized clusters that gives advantage to localized firm in form of cost reduction. The ideographic historical approach tries to capture the historical origin and trace the evolution of localized clusters. According to Malmberg & Maskell (2001:4), the knowledge base of ideographic historical approach originate from the event or action which prompted succeeding developments, which sometimes turns out to be related to some more or less traditional factor of location.
The activity leading to localization of firms comes from the development in a geographical location, which results in successful economic activity that is accomplished by related subsidiary or supplementary services from similar firms. Furthermore, another reason for the development of clustering is adduced to the fact that firms tend to maintain their location, especially when they are deeply rooted in such areas. This prevents their relocation. According to Ross (1896), cited in Malmberg & Maskell (2001:5), “The power of a locality to hold an industry greatly exceeds its original power to attract.
The new locality must not only excel the old, but it must excel it by margin enough to more than offset the resisting power of the matrix”. The cost reduction approach gives an explanation to those identified static advantages that is accrued to firms located in close juxtaposition to similar and related firms. This is analysed and weighed in line with the state of firm in isolated location. Geographical space and localization of industry has in the past being amply researched.
Scholars noting the role of localization of industry in the effective operation have approached the study of spatial clustering from different dimensions, which include general organizational strategic approach, production process in firms, or analyzing industrial agglomeration from the role of local firm in the globalizing world economy. In innovating new concept or cluster theory, some principles need to be followed. This will go a long way to validate the theory. According to Maskell (2002:14), first such theory should at least have explanation for the existence of the cluster.
Secondly, the cluster theory must include an explanation for the growth of the cluster. Thirdly, such theory should be validated on its ability to identify the boundaries of the cluster by identifying the rationale behind clustering of some economies activities against the integration of other economies. The importance of clustering has being linked up to high tech industry and to knowledge based industries. The need for development of innovation in the agglomeration theory is the vast uncoordinated and unified theories by early classical scholars on this field. A KNOWLEDGE-BASED THEORY SPATIAL CLUSTERING
Malmberg Anders and Maskell Peter (2001) developed a theoretical approach in analyzing industry agglomeration, otherwise referred to as spatial clustering. The development of innovative in spatial clustering for these scholars came against the background of their criticisms against the lack of unified theoretical structure adequate in analyzing spatial clustering. Besides these, numerous theoretical concepts on spatial clustering have a sharp contrast with the general lack of work aiming to validate empirical mechanism for spatial clustering, as found in work of scholars on this concept.
As a way to find a solution to the lack of unified theoretical structure for industry agglomeration, the innovative work of Malmberg and Maskell (2001) “investigates the nature of cluster from a knowledge creation or learning perspective”. In this regard, they argue that there should be a need to put in place specific theory of cluster through learning as the major focus. Thus, two significant component of this knowledge-based spatial clustering is that there must be an explanation for the existence of the clustering, and an explanation of the internal organization’s structure.
The knowledge-based theory on agglomeration arises from the relations that exist between firms in a cluster setting, in such case this relationship stimulates and encourages the exchanges of information and knowledge. The competition among firms in the same industry tends to prompt the processes that create changes and flexibility, which results in organization learning, and the strategizing to bring about innovation in operations of the firms. This invariably leads to the adoption of new technology resulting from changes in business operations.
According to Alvsatm (1998), cited in Malmberg and Maskell (2001) the impact of spatial clustering on the learning and innovation prowess of firms and economic geography have in contemporary times pose a useful way to harness the interactions between scholars of social science in their study of firm competitiveness their learning process and innovation. The difference of the knowledge-based cluster theory, from other from of agglomeration theory, is in its position on the vintage point of upholding the long-term competitiveness among firms.
This is determined by the theory ability to capture innovation and engages its processes in continuous learning. Other previous agglomeration theories have taken the part of historical exploration and others the advantages in localization of firms. Spatial closeness of firms have being seem to encourage and make it easy for knowledge spread out and interaction which form the basis for innovation and learning. This creates a context that makes enable analyses for spatial clustering.
The criticism on other clustering theory is the difficulties they have in attempting to identify explicitly, empirically and theoretically, the localization economies that account for the existence of clustering. “…they do not contain any theory specifying how the territorial configuration of many co-localized firms in related industries would be able to create knowledge in ways not equally available” (ibid). The development of innovation through clustering theory is argued against in its inability to commence its analyses through identifying how knowledge is shares and how technology is transferred to encourage firms’ competitiveness.
Another shortcoming of cluster theory is in its lack of systematic effort to examine empirically the actual mechanisms outlining the enormity of localization economies. Past efforts have based their empirical study on case study. The problem here is intensified by the fact that biased selections of case study are conducted, which is based on high tech industries and on regional successes of clustering of firms. Furthermore, the elusive nature of former theory on the concept of localization of firms gives the knowledge-base theory a plausible stand.
The innovation in knowledge-base spatial cluster theory, as purported by Malmberg and Maskell (2001) is to make the theory more satisfactory in brining better explanation to spatial clustering than previous theories. As Maskell (2001b), argued a reasonable theory of spatial clustering must include a clarification for the presence of the cluster. In this case, it should specify the processes that prompt similar firms to cluster in a particular area. A theory must contain explanation for the internal organization of cluster.
Furthermore, an explanation should be given for those advantages that are accrued to firms concentrating as cluster in a particular location. Finally, the theory should be dynamic in such a way that it encompasses the eventually rationale for decline in the success of clusters. The knowledge-based spatial cluster theory for it implementation to be useful dispersed knowledge need to be gathered and reassembled for learning among the clustered firms.
This should be subject to prior to the period before knowledge-bases of firms has grown enough outside the interaction to implement learning, and the ceiling period when cognitive distance becomes very large for firm to collapse together. “The innovative capabilities of firms are enhanced because co-location can provide them with an arsenal of instruments to obtain and understand even the most subtle, elusive and complex information of possible relevance developed because they were separate firms pursuing their individual agenda” (ibid).
The point of departure of knowledge-based agglomeration theory from the other theories is that other theories focus primarily on the formal institutional structure, cultural and linguistic aspects of firms in a cluster setting. The knowledge-base theory focuses on the business transactions between related firms, and through this, accurate analyses based on information from these transactions are generated.
The reliance on ordinary analyses based on institutional structure such as cultural and linguistics aspects of firms’ concentration this will be good for a local innovative system learning process. However, the exchange of information and ideas associated with the frequent contact and learning derived from business transactions will be a right basis for creating new ideas and innovation. The thrust of the knowledge-base agglomeration theory argument is that spatial clustering should play down on cost efficiencies in favour of concentrating on ways in which clustering enhances knowledge creation.
This is a departure from the research argument on spatial clustering, where it highlights the implication of propinquity and distance, institutional structure and local setting on economic processes. RELATIVE SIGNIFICANT OF KNOWLEDGE-BASED AGGLOMERATION THEORY TO SPATIAL CLUSTERING FIELD The knowledge-based theory is widely adopted in recent research on spatial clustering and economic geography on agglomeration. According to Dahl (2001), the conception of knowledge has strong impact on the connection between innovation and geography.
This is because of the social interaction that is germane in knowledge dissemination that is important knowledge in innovation process. Firm’s agglomeration is thus, link to their quest to access tacit knowledge in specific areas. Knowledge creation process can be accessed through planned resource generating institutions, such as education system, universities, public research centres, and research and development department in firms. Secondly, knowledge is generated through firm learning processes in firms. Learning forms an important feature in innovation process.
This attribute the significance the knowledge-base theory is in National System Innovation, as pertaining deriving the economic benefit of firm’s agglomeration. “A significant amount of innovation and improvements rely on individual learning process or learning by using processes from firms” (ibid). The difficulty associated with transferring knowledge from a firm to another, requires face-to-face interactions for knowledge transfer to be effective. This is a reason why firm concentrate and cluster in an area for exchanges and knowledge gaining.
Thus, this result in clustering firms who are in competitions and their suppliers in a location. Getting information on ways an organization rivals operate tends to give the organization the means to formulate strategy to make it compete favourably in the industry it operates. Firms that are located somewhere else may be tempted into relocating to another area where it perceive it has the advantage of getting better access to local based knowledge or supply or customers (Maskell & Kebir 2001).
Knowledge based theory in clustering is also significant in the sense that it promotes national growth through research and development utilized for planning in information derived from firms operations within a clustered location. Technology- based firms locating in geographic proximity have utilized the advantage in localization to higher educational institution to benefit from technology transfer and spill over which culminate in economic growth for the region (Audrestsch 1998 et al, cited in Biron & Malone 2007).
Knowledge spillover is a part of firm agglomeration that makes the phenomenon beneficial in the exchange of knowledge. Efficiency of firm in a clustered relationship has being linked to knowledge spill over. The growth of firms in an agglomerated setting leads to backward and forward linkages as advantages derived from the consolidated workforce with specified skills and knowledge spillovers (Athreye, 2000). The knowledge spillovers may come in form of sharing of information on new technologies in informal meetings among staffers of different organizations in the same locality.
Thus, the knowledge-base cluster theory has significantly given explanation to the existence of cluster, its extension, and exhaustive argument on firms’ agglomeration. CONCLUSION National System Innovation is a process of developing innovative pattern of operating in a state. There are regional and local versions of system innovation. Looking at the agglomeration theory, it is perceived as a theory that goes to show how clustering of firms tends to bring about economic development and internal development for the firms.
However, the uncoordinated and ineffective way of explanation the existence, extension and arguments on the concept lead to the innovation of another method of analysing agglomeration of firms. The previous economic innovations and the historical and cultural trace of analysing spatial cluster in firm has being criticised based on the aforementioned criticisms ambiguities, unifies theoretical structure. The knowledge-base theory, as an innovation in the traditional and classical method tends to give explicit explanation to clustering through the exchanges of information among firms in a clustered stetting.
This comes in the study of business transactions among firms that result in knowledge spill out. This knowledge spillouts usually does not only take place in formal meetings but through informal interactions among workers of different firms in the same locality. Knowledge-base cluster theory tends to show how firms in a cluster environment operate and compete through learning processes derived from the agglomerated existence.

Innovation In Organizations That Stems From `The Concept Of `National Systems Of Innovation`

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Ikea’s Organizational Behavior

Ikea’s Organizational Behavior.
INTRO: IKEA is known for its strong organizational values, which are based on Swedish norms and in particular the opinions and values of the founder himself. It is not unusual to see IKEA employees following the norms and values even outside the working hours, but how important is OB really for IKEA? IKEA’S BRIEF HISTORY 1940-1950 A Swedish 17-year-old man named Ingvar Kampard founded Ikea in 1943. It all began with the Ikea catalogue that was sent from house to house, which is still known today as Ikeas signature. In 1948 the range of IKEA products extended to furniture and by 1958 the first store is opened. 960-1970 By the end of the seventies, Ikea manages to not only open stores all over Europe, but in Canada and Australia as well. 1980s The large cash flow start coming in once Ikea enters the US in1985. By this time IKEA has 10,000 co-workers and 60 stores. Ingvar Kampard retires from Group Management and becomes an advisor to the parent company INGKA Holding B. V. 1990s In 90s IKEA expands in Eastern Europe as well as China. In 1990 the first environmental policy and social responsibility policy is introduced in IKEA.
In 1997 IKEA launches Children`s furniture and becomes a retailer with offers to the entire family. By 1999 IKEA group grows to 50,000 co-workers and has 158 stores in 29 countries. 2000s In the year 2000 IKEA arrives to Moscow, Russia and same year Code of Conduct is introduced, called IKEA WAY. Following years IKEA is actively participates in world donating events and promotion of social responsibility. IKEA AT A GLANCE 287 IKEA GROUP STORES WORLDWITE In 2011 IKEA Group opened 7 new stores in 7 countries. As of 31. 08. 2011 it had 287 stores in 26 countries 13 0888 3 144 49 Top 5 purchasing countries: 1. China 22% 2. Poland 18% 3. Italy 8% 4. Sweden 5% 5. Germany 4% Top 5 Selling Countries: 1. Germany 15% 2. USA 11% 3. France 10% 4. Italy 7% 5. Sweden 6% CO -WORKERS PER FUNCTION * Purchasing, distribution, wholesale, range & other: 14,300 * Retail: 100,000 * Swedwood: 16,000 * Swedp: 700 * Total co-workers in FY11 131. 000 TOTAL SALES: Sales increased by 6. 9% compared to 2010. Total sales amounted to EUR 24. 7 billion. SUPPLIERS IN 2011: 1,018 suppliers in 53 countries
PRODUCTS: The IKEA range consists of approximately 9,500 products. PRINTED CATALOGUES, LANGUAGES & EDITIONS: The IKEA catalogue was printed in more than 208 million copies in 30 languages and 59 editions. STORE VISITS: In 2011, the IKEA Group stores had 655 million visits. IKEA . COM: IKEA websites had 870 million visits in 2011 As for Ikeas competitors, there is Wal-Mart, Howden and Ashley Furniture. Company Employees According to Emil Svallingsson who is an employee at IKEA for 10 years, about 50% of the employees are proud of their jobs.

The other half refers the individuals who do not share the exact same vision about the company, and need to be told how to do things and have a stereotypical “boss”, rather than be all a part of one team. Culture Center – Together In the hometown of IKEA, Almhult, there is a Culture Center called “Together”. It is a place for employees all over the world to attend education, meetings and to learn about the company culture. There is a lecture hall, access to product archives and documents, as well as exhibitions and interactive installations.
Employees are stating that the center is a great help to keep their foundational values alive and that it makes them more motivated in the everyday work life. “Together” works as a meeting place for people working at IKEA as well as a place for developing employment skills. The main idea is to gather the IKEA culture in to one building. Since there are more and more warehouses build over the world, it is not always easy to keep the same values for everyone, and therefore the center is the beginning to keep the company culture as Ingvar first created it to be. Our heart is in Almhult and it’s amazing to be able to have a cultural center here. ” -Ingvar Kamprad “Together” is also a great example of their flat organizational structure. Hopes are that employees, by themselves, will get a deeper understanding for the culture and by that develop IKEAs future together. ” Ikeas center provides different exercises to the employees that show the entire IKEA concept and how it works at its best; how all the employees’ jobs together create one big job structure, and how products are being made and the importance of raw materials.
At IKEA, training is crucial to keep the social work environment functional. From the training sessions, the hope is to develop awareness, knowledge and responsibility. All employees receive this training in order to take charge of their own development. In general, IKEA wants to give the opportunities for co-workers to grow, both at an individual level, but also in their professional roles. In return, IKEA expects their co-workers to do their job as well as possible depending on their ability and experience, take responsibility, and be willing to develop and grow continually and to act in an open and straightforward manner.
Workforce Diversity Gender The gender diversity at IKEA is probably among the best one’s over the world. They have applied special workforce diversity programs in all departments, and are working for a continuing development. The program is based on “stomach feeling” and employee’s opinions in order to fill the positions in a fair way. In the warehouses, there is quite an equal diversity between genders. Right now, globally it is about 54% are women and 46% men. Even among the higher positioned jobs such as warehouse responsible, it’s equally divided, 52. % measured to be women and 47. 5% men. However, when you are getting really high up in the working positions, such as the top board, there are no women. According to Hakan Sandman, the Marketing Director of IKEA France, the gender diversity is very equal overall; but that it also depends on what department one is looking at. Human Resources department tend to be mostly women, as well as the Marketing department where Mr. Sandman is the only man. THE AGE DISTRIBUTION OF CO-WORKERS IN IKEA
This pie chart represents employees’ gender distribution at IKEA globally, but for example in Sweden it looks different: The age distribution in IKEA Globally: Workforce Diversity: Ethnicity Ikeas main philosophy is “The People Philosophy”: though in the past their strategy was “Swedes”, they have abandoned it in 1998 with the rise of globalization. Currently they have a lot of long-time workers from different cultures and backgrounds. IKEA sees the diversity matter as a subject for creating more challenging business atmosphere.
France’s new store in Avignon has staff from 21 different nationalities. Since 1998 they have changed their recruitment base to: including everyone and not just Swedish people. Recruited staff are immediately made aware of IKEA`s cultural diversity philosophy; first day at work new staff get exercise to tell their group members something unique or different about themselves. “As a global player it is very important for IKEA to be aware of what the world looks like today, and how it will change in the future. The only common thing for all of us is that we are different.
If we accept and understand this fact we can start to use this Diversity for the best of ourselves and for IKEA” (Fajtova, 2007) The corporate language of IKEA is English and in their TV commercials they feature a wide variety of different ethnicities, ages, genders and race. Holistic Responsibility: “IKEA is a leader in setting high environmental standards for its product. That means employing strict manufacturing methods and supply processes so that materials, technologies and transportation have the least amaging effects on the environment. “1 – Rene Hausler, Partner, IKEA-San Diego Franchisee. “We consider IKEA to be setting an excellent example for other corporations to follow. IKEA is prepared to go further than just saying ‘no’ to a supplier who exploits children. The company is showing a genuine interest in bringing about improvement for children by assuming a responsibility for child labour issues. “2 – Ingvar Hjartso, UNICEF Representative. It seems as if today everyone is praising Ikea, and it is not without a reason.
Ikea is a remarkably socially responsible company, it sets example to so many other companies that simply are profit driven, and do nothing but destroy the eco system, or poison the environment with chemicals such as “the monstrato”. Therefore, Ikea is rewarded and recognized highly for its CSR, it has received numerous awards, including the one on April 2005, the Outstanding Sustainable Style Achievement (OSSA)3 Award for eliminating the usage of Polybrominated Diphenyl Ether (PBDE),4 a toxic fire suppressor used in manufacturing furniture.
In addition, earlier in 2004, IKEA had received the BUPA Healthy Communities award for Excellence,5 an award funded by the Ministry of Health, UK. The company pays a great deal of attention to different problems in the society and the environment; this did not begin recently, for more than twenty years Ikea has been environmentally conscientious. It began in 1989 when the then president of Ikea said that the “Environment is not just a new fashion, it will not fade away, it is the new reality and we have to adapt to it. And so, in 1990 in association with Karl-Henrik Robert, was initiated The Natural Step (TNS) environmental program in IKEA. And so throughout the years, one by one it began tackling different environmental issues; waste management were the first thing that Ikea took seriously, and so each IKEA store started having an “environmental coordinator” who worked towards waste recycling and energy conservation, and also trained employees on environmental aspects. Since 1999, IKEA has works actively to reduce waste in manufacturing. Where possible, waste from one manufacturing process was to be used in the production of other items.
And it did not end there; most IKEA stores provided collection points for customers to return waste. In the recent years, Ikea has been trying hard to be environmentally friendly, and it began rewarding the same behavior in its employees. It varies throughout the Ikea’s in different countries; IKEA Poland stores provide facilities for bikes, maps of bike paths and tools to repair customer bikes, IKEA Denmark lends out bicycles equipped with trailers at its stores, IKEA UK stores offer interest free loans and a 15 percent rebate to co-workers travelling to work by public transport.
And in May 2007, IKEA Canada launched a Hybrid Parking Program, rewarding customers driving a hybrid or fuel-efficient car, with a premium parking spot. Throughout the years, Ikea’s interest rose in a better future for our children through a better environment rose; when it came to energy consumption, the company’s data showed that IKEA it consumed a huge amount of energy for electricity, but, Ikea did not simply decide to switch off the lights on earth day. The company went a step further; it tried to consciously reduce its energy consumption. Therefore, in 2003 IKEA launched a ‘Kill-a-Watt-Energy Saving Competition. The competition was open to all IKEA stores across the world and it aimed to achieve reduction in energy consumption and also to create awareness among employees regarding electricity costs. By the end of the competition, IKEA had saved energy equivalent to providing electricity to 2,000 households, or two IKEA stores for a year. From waste to energy, Ikea then focused on forestry; around 75% of the raw materials used for Ikea’s furniture, catalogs and packaging came from timber. Hence, conservation of forests was an important environmental issue. IKEA worked with groups such as Greenpeace to formulate policies for sustainable forestry.
IKEA was also a member of the Forest Stewardship Council (FSC). As a result of consultations with these organizations, IKEA banned the usage of timber from intact natural forests. Many companies in industries, such as the diamond industry, choose to be ignorant; companies ignore or lack interest in where their diamonds come from, but often the blood diamonds that they purchase give life to more slavery. And even though there are a lot of different forms of slavery throughout the world, Ikea is one of the companies that does not tolerate it and even though child labor oes exist in countries where IKEA products are manufactured, IKEA does not accept child labor at its suppliers or their sub-contractors, and works actively to prevent it. The company has a special code of conduct called The IKEA Way on Preventing Child Labor, and monitoring of compliance with The IKEA Way on Preventing Child Labor is done by IKEA trading service offices and with unannounced visits by KPMG to suppliers and sub-contractors in South Asia. As listen above, we can see that throughout the years Ikea has demonstrated over and over again that its responsibility goes beyond home furnishing.
It undertook several projects for community development and a lot of its projects were centered on children, such as the one in August 2000, IKEA initiated the Child Rights Program in India in association with UNICEF. The project started in the Indian state of Uttar Pradesh (UP) and the aim of the project was to prevent child labor in ‘the carpet belt’ of UP, by addressing root causes such as poverty, illiteracy and ill health. The company’s CSR extended from the community and environment, to the suppliers. Ikea did not choose to be ignorant about where their suppliers got their goods.
So it launched ‘The IKEA Way on Purchasing Home Furnishing Products (IWAY)’ in September 2000, this way all of Ikea’s 2,000 suppliers spread across 55 countries, had the ‘code of conduct’ to adhere to. Student Support Programs: Ikea helps students of all ages throughout the world; it has aligned with is Save the Children’s Early Steps to School Success (ESSS is designed to assist children with language, social and emotional development); an early reading readiness program that IKEA supports through financial and in-kind product donations.
In addition, since early 2001, the IKEA Group supports one-year scholarships for students from Poland, Estonia, Latvia, Lithuania, Ukraine and Russia to study forestry at the Swedish University of Agricultural Science in Alnarp, Sweden. The purpose of the scholarships is to support competence building in sustainable forestry in countries that are important wood sources for IKEA, and to help future forestry professionals in those countries develop relationships with each other.
And it doesn’t stop there; due to the fact that many IKEA products are made with cotton, they partnered with the WWF to run Farmer Field Schools in Pakistan and India. Ikea over and over again displays its care for the society and the environment, it is because the company is not simply profit driven, it has a vision; and the vision is “to create a better everyday life for the many people. This includes doing what we can to help create a world where we take better care of the environment, the earth’s resources, and each other”. Internal Communication: Communication & Equality
The CEO of the company has a specific culture that has been passed on since Ikea was founded, and this culture is communicated to all of the employees. She states that when she hires a “co-worker,” as IKEA terms employees, her plan is to help the person through his or her slumps. One of her greatest rewards is to see a worker she has worked with excel, and she believes all supervisors and managers should serve as mentors. Every manager is also a team member, “I’m responsible but not the center of the universe. There is always someone who knows more than you do.
And there are always new things that you can learn, which I think is the essence of why I work with IKEA. ” Par Sundqvist Store distribution manager Sweden In Ikea a manager is not “the boss” or the one who commands and rules his department. Due to the low power distance in Sweden, Ikea was founded on the basis that everyone is equal. And based on the chart below of Geert Hofstede’s cultural dimensions theory, one can see that because of the relatively low power distance in the U. S. , it was quite easy to communicate this approach to all the “co-workers” in Ikea North America. Exhibit 1.
A Cultural Dimensions Theory Exhibit 2. A Cultural Dimensions Theory In Exhibit 1. A, one can see the power distance in both Sweden and the United States, though there may seem like there is a difference, once it is compared with Exhibit 2. A one can see that compared to countries such as China who have a high power distance, on average, the power distance is relatively the same in both the U. S and Sweden. Therefore, it can be concluded that Ikea’s Scandinavian way of doing business with the absence of the traditional “boss” was understood and quickly absorbed by Ikea North America.
Equality within the company is emphasized and communicated to all of Ikea’s stakeholders; and though according to “glassdoor” Ikea employees give the company’s ability to communicate an average 3. 5 rating, they give serious leadership a poor rating of 3. 1 because according to the employees “there is a little too much equality”, employees want to be guided and told what to do a little more. It seems that not all employees are ready to be treated equality with their bosses and be all a part of one team. Based on the latest updates on glassdoor, the company rating is a 3. ; the employees say it is “ok”. This company rating is based on eight components; career opportunities, communication, compensation & benefits, employee morale, recognition and feedback, senior leadership, work/life balance, fairness & respect. The lowest scores of 3. 1 were in career opportunities and in senior leadership. Two of the “Top Ten Reasons Why Good Employees Quit” are listed in the components that make up glassdoor’s company rating; employees have given to “Recognition and feedback” a score of 3. , and when it came to rating the “work/life balance”, IKEA employees gave the highest rating to it. Employees believe that better than anything else the company takes good care of their employee’s need of the work/life balance. Even though the rating seems to be solely satisfactory, it doesn’t truly represent the reality. Based on the rating one will assume that the company’s job demand is at a mediocre level, however, IKEA jobs are actually highly demanded; in Florida USA, IKEA had over 10 000 applicants for only 450 job.
And in Sweden, Ikea ranks on the top 5 companies that university graduates want to work for. In addition, Ikea was on the “Top 200 World’s Most Reputable Companies” (#2), Forbes, in 2009 and on the same year it was on the list of “Best Places to Work in Orange County” (Large companies), Best Companies Group, 2009. Pay and Benefits According to glassdoor. com Ikea employee’s rating of Compensation ; benefits is a mediocre 3. 4, however it does not portray the full picture. Where some believe that Ikea does a mediocre job, others are enjoying the vast benefits that Ikea provides them.
Last fall Working Mother magazine named IKEA North America one of the 100 best companies for working mothers and singled out Spiers-Lopez for its Family Champion Award. The award was given for Ikea great paid maternity leave and flexible work schedules. In addition, Ikea provides a number of benefits that are not usually offered to retail workers in the U. S. such as “full medical and dental insurance for those who work as little as 20 hours a week, including coverage for domestic partners and children; tuition assistance; and a 401(k) matching plan”.
In addition, they receive long breaks, free uniform and the company has a food plan, it is known as the “$3 meals”. As for the facilities, there are lounges, relaxation rooms and showers. Ikea has all sorts of benefits from end of the year gift, to long service awards to sick pay and first day of school leave. Lastly, Ikea unlike most companies provides even part time workers with benefit packages. Bonuses in the company may vary, but on average the bonus of a sales associate is $785, and the team leader receives $1,002.
However no all positions receive such high bonuses, when it comes to Ikea cashiers, they receive $50, and customer service associates receive $100. And all full time employees receive a 10% discount; it increases to 15% after 7 years of work. The employee discount comes hand in hand with home delivery and assembly of the furniture, always free of charge. All employees in Ikea receive above the minimum wage rate; most are paid by hour except a few who receive a fixed salary; the team leaders receives $39,908 and the department supervisor $34,712.
Sales associates hourly pay is $10. 39, Ikea cashier’s is $9. 65/hour, customer serve associates receive $9. 38/hour, floor associates receive $10. 00/hour, Safety ; Loss prevention agent’s pay is $12. 69/hour and the pay of a co-worker is $13. 15/hr. On average the pay is around $12 per hour, with exception the interior designer who receives $16. 56 per hour. As for pension, at the moment, IKEA is building a new global pension package where they want to construct a global second-pillar retirement benefit structure. It is planned to be a fixed interest rate of 3. % on contributions. In 2000, IKEA introduced a multi-fund pension arrangement for their employees, which also can be used as a private retirement fund if they leave. The arrangement also offers workers who moves between countries a choice of asset mixes in which they can invest contributions. Co-workers at IKEA are able to transfer money between funds or split contributions between different plans, depending on their age and risk taking profile. It can also be mentioned that even if you choose to leave your job at IKEA, you may remain in the pension agreement. Everyone should have the same amount” – Ingvar Kamprad Ingvar also wishes to start a bonus program for employees over the world, but it is not yet defines how much money we are talking about. IKEA has 131 000 employees so the amount will easily reach very high numbers. So far, there are only 3 principles decided around the future wish; Everyone gets same amount, everyone can take part and its related to Inka holdings financial results. (Inka holdings is IKEA’s Dutch holding company) Improvements and Changes in 2011:
The workforce turnover has decreased to 22% in 2011, and 81% of employees now come back from maternity leave: 100% at management level and 78% of hourly-paid workers. Thirdly, 2011 employee satisfaction survey came up with results that employees` favorability to rewards and benefits boosted by 5% in IKEA. Fourthly, IKEA launched family-friendly benefits such as a staff support program and childcare vouchers, as well as an loan with no interest in order to cover costs a month after birth. IKEA: TRAINING AND DEVELOPMENT IKEA uses mostly 3 different types of training: * Induction training (35%) Mentoring (40%) * Coaching (25%) 85% of training is on-the-job training and only 15% off-the-job training. Differences between IKEA houses per region in relation to Educational background of co-workers IKEA`s workforce has reached already 131,000 employees and these people are an epicenter of IKEA values. Value is a core word for company`s strategy and co-workers` involvement in it. IKEA is doubling their sales every five years; however it does not doubling their staff. One of its keys to such a success lies in training and development programs constantly offered to the employees.
Each employee is offered 40-hour training every year in average. Since the very beginning employees` development was perceived as a non-stop process in IKEA. The first period for all newcomers is training in IKEA’s culture. It usually implicates learning about the company’s history by watching the educational videos. Many co-workers start they way in IKEA as part-time co-workers and shift progressively to full-time, seniors, deputies etc. Along their career path they are getting cultural training and regularly acquire IKEA’s values.
The major part of training is acquiring the core aptitudes and skills such as teamwork, efficiency, mobility, leadership, that were considered necessary for a successful career at IKEA. Networking in IKEA takes important role in training and development. When new employee joins the “family” he/she gets immediate access to a local network. Curt Temin, who works globally with learning and development within IKEA Group, regards “networking as the ultimate tool for professional development”. One of the very first things new employee learns is an ancient Swedish word “fika” (coffee break).
In IKEA they understand that even informal meetings and communication between people lead to knowledge transfer and this is where development starts. “People’s careers are only as limited as they want them to be at IKEA,” concludes Jeff Wilson, learning and development manager for IKEA US. 90% of all positions inside IKEA globally are filled inside, and 35% of those jobs are managing positions. To keep such a high data company has launched a personal development program called “PADDLE YOUR OWN CANOE”, which has 3 components and takes place ones a year.
This program is open to employees who already became aware with companies values, understand their position within the company and ready for self-development. At the first step staff is invited to investigate strengths, weaknesses, self-awareness and career pathways. The second step includes meeting with manager to discuss previous conclusions, perform a skills gap examination and choose position to develop toward desired path. There are online career centers available at this stage to provide all necessary reference materials to complete this stage. Last third step in the program leads to setting goals by employee and making an action plan.
IKEA has created environment for growth founded on belief that good people can be even better. In the year 2002 the “SKILLS ESCALATOR” program was born from this idea. The Skills Escalator is compound of 4 main steps. When employee starts job as a trainee comes the first step. The second comes when employee actually step into planned responsibility. The third step is called “senior” because at this stage staff becomes leading with tasks of coaching others in their specific work. When the employee has become a mentor and expert it means the last fourth step of program has been reached.
This program was created due to willingness of the company to employ people not solely for one role but to take a leading position in long-term. The core idea lies in progress, in order to learn and then train others. In IKEA nobody is a trainee longer than one year. The “SKILLS ESCALATOR” always gives opportunity for staff to get higher skills level. Employees are progressing while working, they perform work and see which skill are necessary and how attain them during the working process and receiving feedback Employees are confronted with a coach, who is not telling exactly what to do, but help to ind an answer by giving few leading questions. Therefore employees receive help and support, but in such a way they describe what they need to know rather told in advanced. It gives employees control over own development. This relates to on-the-job training, which is most used training process in IKEA. In fall 2011 IKEA launched mentoring initiative “PARTNERS FOR GROWTH” which was directed by famous mentoring consultant Dr. Lois Zachary of Leadership Development Services. This program was set up to help co-workers establish vital relationships to maintain them in piloting IKEA and in pursuing their own personal development.
This program targets only to the IKEA`s key management. Jeff Wilson, Leaning & Development Manager in US explains that “Partners for Growth” will have a crucial influence on IKEA, he believes, that among many other programs this one is one of the most important. As IKEA has big expansion plans for next 10 years this program will lie in the very heart of the process. A lot of efforts will be given to co-workers` development programs such this one, due to the need of greater capability for people to take superior responsibilities in US and Canada.
Pernille Lopez, President of IKEA NA admits that Zachary`s knowledge helped to line up a triumphant monitoring strategy with his own. Lopez confirms, that IKEA`s main goal is to help co-workers to do their job better by developing and empowering staff. In IKEA they take extra steps in mentoring program. IKEA base mentoring program on growth of both mentee and mentor holding expectation of creating better employees by making them a partners. Innate result of this program turns IKEA`s mentees to future mentors. Major mentor to IKEA`s mentoring support groups, Dr.
Zachary praises company`s commitment to development processes and finds those innovative and hopes to see mentoring process as a natural aspect of the IKEA`s culture in the next few years. “PARTNERS FOR GROWTH” soothes the progress of individual learning, encourages professional and personal development, and has 4 strategic goals: * Develop Leaders from top to bottom – Support career development across the board – Develop and support diversity through IKEA organization – Strengthen IKEA culture Interest of employees in IKEA for more internal training | Percentage| Yes| 79%| No| 4%| Don`t know| 16%| Totals| 100%|
PASSIONATE CAREER IN IKEA In IKEA at entry level all employees are hired externally, then those employees are making their way up through promotions. Only 10% of employees on higher levels are hired externally mostly because of lack of eligible candidates. Career planning in any organization is based on how the organization may help and helps its employees in planning their careers. IKEA behave as a supportive partner, in managing its employees careers, for example, by lowering the work load while employee is taking any educational program, by giving time off to study, or by paying a part of the tuition fee.
Therefore, career planning may include anything from policies on hiring and promotions and collecting data about personal preferences to Educational Assistance Programs and flexible working hours. Educational Assistance Program gives employees monetary benefits for taking certain training or courses. To be eligible for those benefits the employee must pass the course with the mark of 75% or higher. Those benefits depend on the course taken and on the level at which the employee is. Nonetheless, IKEA offers also its own training and development program.
Whereas the company and the level of employment require certain training programs, others are optional. IKEA says that career planning mostly depends on their employees if they want to be pro-active rather than reactive, if they are willing to take more responsibility and to learn more, positions are always posted in the store and every employee may apply upon meeting certain requirements and having good performance appraisals. IKEA as being in retail industry hires many people on a part time basis, therefore it may offer what is called flexible working hours.
This primarily means that employees have a choice what day to work and what hours to work, since they are not required to work 40 hours a week. Flex work enables co-workers to balance home and work careers as well as to spend more time on personal development. Nonetheless, flex work program depends on where the co-worker is working, for instance, in some departments, such as IKEA Trading, co-workers are required to work 8 hours a day but it does not have to be in straight time as long as they have eight hours a day worked.
Whereas, in other departments it means that co-worker may choose which days to take off and which days to work. Promotions within IKEA may be vertical or lateral. The policy states that in order to be eligible for promotion for a position lower than management position, the candidate must work with the company at least six months, and to be eligible for promotion for management position the candidate must work at least three years. IKEA provides good program for those employees that would like to, and are eligible for, relocation to different country.
Interested co-worker needs to meet certain requirements and be the best candidate for that position. In case of not having the language knowledge IKEA provides language training therefore upon arriving in the new workplace the promoted candidate can communicate with others. This tactic ensures that all employees meeting the requirements may be chosen and the language is not a barrier. IKEA, as a part of career planning of its employees, also does succession planning in conjunction with management. It means that IKEA has charts with listed higher positions, employees on that positions, and relationships between those positions.
In case of any vacancies the chart lists prospective successors that may step up into that position. IKEA in developing such charts takes into consideration performance appraisals, experience, personal characteristics, and personal preferences of the candidate. As mentioned earlier IKEA does it in conjunction with managers, it means each candidate’s qualifications are confirmed by the manager and that manager decides whether the candidate is ready to be promoted or not. Feelings of employees in relation to competences utilized in the right way within the company TAKING CARE OF PEOPLE: EMPLOYEES
IKEA always tends to give greater value to its people by calling them co-workers, in such a way highlighting the importance of workforce in this company. The most important values for communication strategy in IKEA are respect, cost consciousness, togetherness and simplicity. During the hiring process IKEA is willing to take people who are willing to growth both professionally and individually, it is always stressed and emphasized during the recruitment. IKEA wishes to create sort of a partnership with its co-workers, it is ready to listen to their ambitions and particularly interested in hiring people who share IKEA`s values.
In IKEA responsibility is given to co-workers and strategy of empowerment is applied. Therefore co-workers in IKEA are not afraid of making mistakes and are encouraged to innovative way of thinking. Worst enemy or evolution in IKEA is fear of mistakes. One of the factors IKEA using to make their employees feel better at the work place is absolute avoidance of status symbols. This system allows people to feel equal. The inspiration comes from the top management, and particularly from Ingvar Kampard who brings a great encouragement through his own life.
For instance, he always uses public transport instead of taxis or car whenever it is possible. This again sets a good example for cost-consciousness from the highest level on, shows that managers do not expect things from their co-workers that they aren’t willing to do themselves. For Christmas 2006 IKEA has given 9000 bicycles to its employees with a purpose of cutting down the pollution and stick to idea of togetherness and cost-consciousness, which comes from top management. The staff is getting 15% off travel tickets on public transport to sustain same goals.
Another example of how IKEA takes care of its employees is training and learning which not necessarily be important for the jobs performed. In 2002 Scottish IKEA introduced IT training for co-workers even thou most of those employees were not using computers in their jobs. IKEA tries to support co-workers, increase self-awareness and encourage them through continuous motivation and incentives. As mentioned before, preference during the recruitment process is given to people who are ready to grow both professionally and personally in IKEA.
Regarding the motivating theories, when we begin using McGregor’s theory of X and Y, it can be safely stated that IKEA recognizes its employees as theory Y. IKEA consequently supplies the employees with benefits and incentives in order to give the opportunity for the workforce to grow themselves and their careers. Success of IKEA does not lie in cheap prices, but particularly in treatment of so-called co-workers and direct outcome of it. IKEA has two programs directed towards older employees: The duration of notice of termination of employment is increased by one month per year of employment for employees who are 40 years of age or older.
The maximum raise is six months and is in addition to the length of notice according to the law. After ten years of work in IKEA, employees going on pension are allowed to a period of six months of reduced working time with full payment before the retirement. This helps to ease the transition from work to retirement by letting leisure to gradually take the place of work. Differences between IKEA per region in relation to Perceived Stress on the workplace Differences between IKEA per region in relation to how loyal employees feel towards the company
Differences between IKEA per region in relation if they see themselves working in the company in the next 5 years TAKING CARE OF PEOPLE: CUSTOMERS * 1 million customers visit IKEA every day * The average customer makes 3. 5 store visits per year * The average age of a customer is 42 * 60 per cent of them are female * 150 million meatballs a year are served in IKEA restaurants * 145 million catalogues are printed in 48 editions and 25 languages * IKEA staff conduct 50000 yearly “home visits” where they visit customers’ homes (in exchange for an IKEA credit voucher) to find out what frustrates customers about IKEA products.
All business organizations need to make sure that their customers are satisfied with the service they receive because customers are the most important part of any successful organization. IKEA is acting according to the A. R. T. of great service, to carry out a good customer service: Approachable- an organization must create an open and friendly environment that will influence customers to come in with self-assurance so that their matter can be dealt with. Responsive -all staff should take responsibility of their action. Customer service should be flexible and provide precise and honest information, at all times.
Timely – done accurately and efficiently at all time. Many businesses record customer complaints so that, they can review the matter, and to improve its customer service. THE WORK WELL PROGRAM HEALTHY PEOPLE= HEALTHY ORGANIZATION Retention of senior co-workers in IKEA in ways of: * twice a month offered body massage; * specialized course in healthy lifestyle containing a personal diet program, and guidance on losing (or gaining) weight; * help to stop smoking, handle stress or manage situations of conflict; * providing discount on fees to fitness centers; providing comprehensive health insurance coverage providing medical treatment and rehabilitation therapy in private clinics to encourage quick recovery and return to the workplace after illness; * a local project promoting good working attitude through colleague-to-colleague guidance in standing, sitting and lifting correctly Discrimination in IKEA USA Ikea has their way of conduct called the IWAY standing for ‘The IKEA Way on Purchasing Home Furnishing Products’. It defines what suppliers can expect from IKEA and specifies what IKEA requires from its suppliers. Moreover the IWAY guides the work of employees.
It covers working conditions, the prevention of child labor, the environment, responsible forestry management and more. Suppliers are responsible for communicating the content of the IKEA code of conduct to co-workers and sub-contractors and ensuring that all required measures are implemented at their own operations. For example, talking about discrimination the IWAY mentions: ‘The IKEA supplier shall not discriminate with regards to workers based on race, religion, beliefs, gender, marital or maternal status, age, political affiliation, national origin, disability, sexual orientation or any other basis. Discrimination is therefore forbidden not only concerning the race but also the gender, religion, beliefs, marital or maternal status etc. However in April 2011, complaints of racial discrimination were present in Virginia, more precisely in the city of Danville. Six African American employees have filed discrimination complaints with the Equal Employment Opportunity Commission, claiming that black workers at Swedwood’s (an industrial group within the IKEA Group of companies) U. S. actory are assigned to the lowest-paying departments and to the least desirable third shift which means from 11 p. m. to 7 a. m. One of the women, Jackie Maubin, mentioned that white people were more likely to receive more money than black people. Swedwood found solutions to face those issues by showing those complaints through mediation and Ikea had offered Maubin 1000 dollars. The company Ikea is trying to eliminate discrimination by hiring based on workers individual skills and ability to do the job.
CONCLUSION: As shown thoroughly throughout this report, in both theory and practice, OB is IKEA’s top priority; the company pays a great deal of attention and energy to the company’s organizational behavior. It is part of Ikeas foundation, which results in great success. Though of course, whether OB is IKEA’s number one, or number two priority, it varies depending on factors such as the country in which that particular IKEA is located, as well as the culture in which it operates in.
Though the origin of the Swedish IKEA has OB as a number one priority, it slightly varies depending on the location of each IKEA store or warehouse, that is due to the fact that cultures and norm and ways of doing business vary all over the world, and even though IKEA does its best to keep OB its number one priority, it is not the number one priority in every single IKEA all over the world. There is still room for improvement though in comparison to other companies, IKEA certainly never neglects the important of OB, but whether it is the number one or number three priority, that varies all over the world.
Appendix: Interview With Emil Svallingsson, Warehouse Employee at IKEA Sweden for 10 Years According to you, how are employees being treated at the IKEA warehouse? In an equal way? In general, all employees are treated well, even though some bad things has shown during my 10 years at IKEA. If you are complaining, you are risking to not get a promotion. People were always quitting and new were starting, mostly because of annoying costumers and due to a too small number of employees. IKEA is constantly trying to cut down on their staff in order to have the consumers doing as much as possible.
During a very long time, no new people were hired at my department. ?? Additionally, I have to say that there always have been a good diversity between men/women, religion and age. It’s a good mix! Are employees proud about their jobs? ”No, it’s about 50/50 I would say. 50% thinks IKEA is amazing and a wonderful place to work. We call those certain people the “IKEAns”, like Indiens. The other 50% are mostly working there because of a lack of other things to do. ”Is IKEA a good environment for new initiatives? You always have to push yourself forward and be initiative if you want something to happen with your carrier. It is almost expected from the employees to do more than it says in their contract if they want to achieve higher positions. ”Are employees actively involved to develop IKEA, or are they according to you, in need of being “pushed” forward in order to develop? ”Again, that’s 50/50. The ones who believes in the IKEA concept (the IKEA`ns) loves to be a part of the IKEA family and they do not have to be pushed. The rest of us might need a clear goal to be motivated.
I would have liked to just have a small percentage of the extra money I earned if my selling went extra well for example. They don’t have systems like that. Time to time, they did have a small competition or party for the employees though. That was fun. Interview with the French marketing director Hakan Sandman How are decisions in general being taken at IKEA? Ikea is very democratic in general, even though it’s different between different countries. It differs depending on a country’s general values and how the people are looking at the word Trust. It is easy to say, Yes”- we trust our employees! but not as easy to live. I would say that IKEA Sweden trust their employees most of all countries, but in comparison to other companies in France, we are very good at trusting and giving away responsibilities. How are the people at IKEA helping each other in order to move forward as a group? At IKEA, it is important that it’s easy for our employees to understand and live our values and beliefs. In the retail department, there are so many people who comes and goes, so it is important that the new ones are able to learn quickly and that the old ones are willing to teach.
One of our most important slogans is: “Lead by Example” which basically means that you have to live as you learn. When the founder, Ingvar Kamprad, where in his forties, he was driving around in a Porsche, drinking champagne with beautiful women and he was living a very different life from today. He later on realized the importance of guiding people by being the example himself, and started to behave in a more appropriate way for IKEA. So what is “appropriate” for IKEA? It is important for anyone who works at IKEA to be a good example when it comes to money. You have to live as you learn and you are not opposed to waist them.
An example of this is when a person at IKEA Russia once where spending a bit too much, which lead to that the company lost 50 million euro. Ingvar himself then went to the person who was responsible for the act, but instead of yelling at him for what he did, he started to lecture about good behavior and the norms of IKEA. In this case, Ingvar saw that it wasn’t the money that were important in the situation, but the symbolic act to waist 50 millions. It was just not good for IKEAs reputation. At the same time he managed to “Lead by Example” by being a really good and understanding leader. Is it really that equal at IKEA?
IKEA is a flat organization, which means it is not hierarchic. Our decisions may take longer time, but when letting everyone decide, people all over the organization will truly believe in the decision and work more efficient to get through with the new idea. At IKEA, it is important to feel the “We- Spirit”. Since we are doing things together, that leads to more personal energy and everyone will be more effective. Do you prefer it like that or the other way around? Sometimes, it may be hard to take a decision within the overall budget for example, cause we don’t really have anyone who Really decides.
Everyone might want different things and that can require more time and energy than it would have done in a hierarchical organization. But in the end, I really prefer the flat type of organization. How to you get a flat organization to be effective? It’s all about a balance between time efficiency and democracy. In the warehouses, there is somewhat a hierarchy, but as flat as possible. It wouldn’t work otherwise. Ingvar himself is very concerned about his employees though and likes to spend time in warehouses in order to take in the opinions of people working there. He wants them to also have power.
But is it really that equal between men and women? Every department sets its own goals every year. The goals are based on feeling form the employees but also on measured facts. In the very top, there are more men than women. A lot of women are working in HR department and marketing. I’m the only man at the marketing department! It is really well divided between warehouse bosses though, I would say very close to 50/50 for men and women. References: http://geert-hofstede. com/sweden. html http://www. glassdoor. com/Salary/IKEA-Salaries-E3957. htm http://www. glassdoor. com/Bonuses/IKEA-Bonuses-E3957. tm http://www. ikea. com/ms/en_US/about_ikea/our_responsibility/national_community_involvment/index. html http://www. gulftalent. com/home/Training-and-Development-Manager-IKEA-jobs http://www. treehugger. com/bikes/ikea-thanks-usa-staff-with-12400-free-bicycles. html http://www. icmrindia. org/casestudies/catalogue/Human%20Resource%20and%20Organ ization%20Behavior/HROB066. htm http://www. ajc. com/hotjobs/content/hotjobs/careercenter/articles/2007/12/04/1202_divikea. html http://goliath. ecnext. com/coms2/gi_0199-15937449/Ikea-sales-rise-brings-new. html http://theroast. com. au/story/262 ttp://www. workforce. com/article/20040730/NEWS02/307309982# http://www. ikea. com/ms/sv_SE/about_ikea/facts_and_figures/index. html https://home. workforce. com/clickshare/authenticateUserSubscription. do? http://www. glassdoor. com/Reviews/IKEA-Reviews-E3957. htm#Awards http://www. ikea. com/ms/en_US/the_ikea_story/working_at_ikea/co_worker_stories_par. html http://www. morten-rask. dk/2007c. pdf http://en. wikipedia. org/wiki/IKEA http://publicculture. org/articles/view/19/3/on-the-ikeaization-of-france/ http://consumerist. com/2007/07/8-ikea-shopping-tips-from-a-former-employee. tml http://www. vault. com/survey/employee/IKEA3_2146. html http://www. ehmac. ca/everything-else-eh/51467-ikea-employee-discount. html http://forums. moneysavingexpert. com/showthread. php? t=145248 http://forums. redflagdeals. com/ikea-employee-discount-735501/ http://curbed. com/archives/2011/05/19/ikea-responds-to-charges-of-discrimination-and-poor-labor-conditions. php http://mangans. blogspot. com/2011/04/ikea-workers-complain-of-discrimination. html http://www. ituc-csi. org/ituc-condemns-ikea-anti-union. html? lang=en http://reocities. com/TimesSquare/1848/ikea. html http://www. uthorstream. com/Presentation/aSGuest9557-133416-ikea-business-finance-ppt-powerpoint/ http://www. ikea. com/ms/en_US/about_ikea/our_responsibility/working_conditions/preventing_child_labour. html http://www. ikea. com/ms/en_US/the_ikea_story/people_and_the_environment/index. html http://www. icmrindia. org/casestudies/catalogue/Business%20Ethics/IKEA%20-%20Social%20and%20Environmental%20Responsibility%20Initiatives. htm http://www. ikea. com/ms/en_US/the_ikea_story/working_at_ikea/co_worker_stories_par. html http://knowledge. wharton. upenn. edu/article. cfm? articleid=959 http://www. expology. o/expose/sites/expology_se/default. asp? s=387&id=642 http://www. smp. se/nyheter/almhult/ingvar-kamprad-oppnade-nytt-center-for-ikea-kultur(2076302). gm http://www. ikea. com/ms/sv_SE/about_ikea/pdf/sustainability_05. pdf http://www. efinancialnews. com/story/2005-01-24/ikea-builds-global-pensions-package http://www. paraplyprojektet. se/news. php? id=1655&categoryID=4 http://www. ifmab. se/Vetaom/Pdf/Tiotaggare. pdf http://www. ikea. com/ms/en_US/about_ikea/our_responsibility/iway/index. html http://www. ikea. com/ms/en_US/about_ikea/pdf/SCGlobal_IWAYSTDVers4. pdf http://www. swedwood. com/ http://www. outube. com/watch? v=Z1pfI0xI6FQ http://www. ikea. com/gb/en/catalog/categories/series/21132/ http://www. ikea. com/gb/en/catalog/products/20196303/ http://www. personneltoday. com/awards/shortlist/award-for-reward-and-benefits/ http://gupea. ub. gu. se/bitstream/2077/2370/1/gbs_thesis_2002_22. pdf http://gupea. ub. gu. se/bitstream/2077/23217/1/gupea_2077_23217_1. pdf http://lup. lub. lu. se/luur/download? func=downloadFile&recordOId=598845&fileOId=598846 http://www. scribd. com/doc/44925799/IKEA-Corporate-Culture http://www. bitc. org. uk/resources/case_studies/ikea_diversity. html http://www. cmrindia. org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/IKEA%20Innovative%20Human%20Resource%20Management%20Practices%20and%20Work%20Culture. htm Academy of Management Executive Magazine 2003, Vol17, No1 , Interview written by Katarina Kling and Ingela Goteman: “IKEA CEO Anders Dahlvig on international growth and IKEA`s unique corporate culture and brand identity” http://www. morten-rask. dk/2007c. pdf ——————————————– [ 1 ]. 1 Barret, Richard M. , “IKEA San Diego Supports ‘Green’ Movement by Developing Stricter Manufacturing and Supply Standards,”

Ikea’s Organizational Behavior

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Informative Essay on Organizational Impact Paper

Informative Essay on Organizational Impact Paper.
The purpose of this paper is to show how to evaluate the impact on innovation through strategies, processes, products and services through three different organizations. The organizations evaluated are Wal-Mart, Barnes & Noble’s and the University of Phoenix. As a manager of the in original and companies, it is important that several companies find a system to pursue accordingly and maintain the focus on remaining competitive. Consumers of all three businesses will profit from innovated options such as keeping the cost of products and services at a lower cost and by offering better options for a price which will enhance savings. Wal-Mart
Wal-Mart values the impact on innovation through the quality of the product they sell to the customer. Wal-Mart makes sure that the customer is satisfied with the services rendered. By making sure that the quality is there for the products they sell the latest core principal will make sure that this continues. These core principal deals with the partner ships established with company so Wal-Mart will have good quality products to sell to the customer. By having these core principal the organization will be able to stay open because of the dedication they have to the customer. In order for the Wal-Mart to have these core principal take effect and have customer service improved to customer delight.
Wal-Mart organization will have to implement a customer satisfaction survey line. This will have each store accountable for the services being provided to the customer. If the customer is happy for the service being provided the customer can call the hotline and let someone know about their situation. This will give a good learning tool for the store and local stores to improve on the situation that has happen so they can avoid it in the future. The way this can be enhanced is by having area coaches look in to the situation and ask what can be done better. By knowing and understanding the problem people can learn from it and teach the associates how these mistakes were done and what was corrected. This type of quality planning will move the company forward and not be left behind.

Barnes and Nobles
The Barnes & Noble’s impact on strategy is to take advantage of the technology that improves the quality of the company’s infrastructure, products and services may have risks associated with. One possible risk can be the data privacy and information security (Barnes & Noble, 2010). Consumers may now buy books or e-books through entering their credit cards or bank accounts online. Another risk can be the consumer spending patterns. The consumers’ demand for products may be low, and can therefore result to decrease in sales and net income of the company. Competition can also be a risk associated with the initiative.
For example, Amazon also has a product similar to Nook, which is the Kindle e-book reader. However, Barnes & Noble also has products that no other company can offer, such as the amount of free e-books that the company offers to those who purchased their products. As long as these risks, initiatives, and the financial planning are effectively managed before a problem occurs, there would be a greater success in implementing the strategy of the company.
University of Phoenix
The University of Phoenix impact on strategy, process, product, or services in the education service over 22 years; they offer an array of classes with flexible schedules. An individual can acquire an Associate, Bachelor, or Masters Degree, and Doctoral degrees to certification and single courses. Another advantage the university offers is smaller online classes opposed to larger in class classrooms.
The University of Phoenix hires faculty with real-world experience, and degree programs developed on relevant and effective learning for a quality education. The university is convenient for many students offering online and evening classes making it possible for those who work to have a chance to complete their education.
The University of Phoenix is one of the nation’s largest private universities located in Phoenix, AZ with more than 200 university locations worldwide. Classes are online for individuals with a schedule that would conflict with the campus class schedule, or for anyone that just wants to obtain a degree online.
The university is online in most countries around the world that makes for a diversified classroom setting. The online classroom offers easy access to the online Library, grammar, spelling, and writing aides. Above all the classroom comes to you right on your computer, and you can do the online classes in the comfort of your own home while sitting in pajamas.
The tuition for the universities online program versus college campus does initiate a higher price for a credit hour. The cost is justified with the cost of high technology, and the infrastructure. The university uses the profits made and re-invests it in the infrastructure to improve the online interaction. An individual is also able to apply for student loans, check on grants, and check with the school for any reduction in tuition fees.
The University of Phoenix is consistently doing online advertising with side window ads grabbing an individual interest with the ad stating the question “Would you like to go back to school, and earn your degree? You may be able to go for free.” The University of Phoenix advertises on the television from time to time, and on the car radio with commercial ads. The university receives several referrals from university alumni, and from students who attend classes working on a degree. Word of mouth is a very powerful advertisement among friends and family then they go and tell their friends and family making word of mouth a powerful way to advertise.
The University of Phoenix has grown into a large for profit educational institution although they had problems in the past they are slowly coming back from these unfortunate times. The university in the past has chosen many marketing strategies, and competing as a For-profit educational market. Segmentation of potential target markets such as consumers, business, and international is a very important process because not all the segments of a market are effective in a business’ needs. Here is where the evaluation of the market segment size and growth, structural attractiveness, and company objectives and resources will require analyzing carefully by management.
Conclusion
Throughout the past decade, innovation on several organizations has shown a profit with an abundance of success to many customers and owners. The originality of the improvements is performing very well as the customers and owners are quite pleased with the outcome. The consumers’ demand for products may be low, and can therefore result to decrease in sales and net income of the company. Competition can also be a risk associated with the initiative.

Informative Essay on Organizational Impact Paper

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5 Organizations Helping Minority Startup Founders Succeed

5 Organizations Helping Minority Startup Founders Succeed.

Donations are used to fund a variety of organizations that are dedicated to helping minority entrepreneurs through tangible, meaningful programs and initiatives. Current grant recipients include Change Catalyst, a nonprofit that provides minority founders with mentorship, education, and funding opportunities. By encouraging a “Give First” mindset in their startups and partners, Techstars hopes to create a ripple effect, spawning change agents who can, in turn, help more underrepresented entrepreneurs succeed.
Related:
2. CODE2040.

takes its name from the year when it is predicted that minorities will become the majority in the United States. It is a nonprofit organization that is aggressively pursuing its goal of having “Blacks and Latinos proportionally represented in the leading edge of America’s innovation economy as technologists, investors, thought leaders and entrepreneurs.”
In addition to a flagship Fellows Program that places promising black and Latino college­-level computer science students in internship programs at top tech companies, CODE2040 has also started a Residency Program designed to help black and Latino entrepreneurs build companies and cultivate diversity in their own communities. The one­year residency provides participating founders with a $40,000 non­equity stipend, as well as additional support from CODE2040, Google for Entrepreneurs and participating founders’ hometown tech hubs. Participants receive hub workspace for the resident and his/her team, along with mentoring by experienced entrepreneurs and investors in the CODE2040 and Google for Entrepreneurs networks.
3. 500 Startups.
is among the leading seed accelerators and early funders that are advancing the cause of diversity and inclusion across the global tech community. According to founding partner Dave McClure, 500 Startups has a long history of supporting startups led by women and minorities. Since its inception, it has invested in such minority­led startups as Walker & Co., AllDay Media and Mayvenn. The 15th graduating class of the 500 Startups accelerator was one­quarter minority ­­ 15 percent black and 10 percent Latino.
Related:
In May of this year, 500 Startups held its first Diversity & Entrepreneurship Summit as part of an ongoing conference series in which minority entrepreneurs could connect with venture partners and other founders and leaders from the tech startup community. In June, the organization also launched a $25 million micro fund dedicated to investments in early­stage startups led by black and Latino founders. The fund will invest in up to 100 companies and provide minority founders with capital and access to networks and expertise that they need to build their businesses.
4. NewME Startup Accelerator.
was founded in 2011 by Angela Benton, a widely­acclaimed change agent in Silicon Valley. The organization’s mission is to accelerate the funding and success of underrepresented founders and innovators around the world. Its 12 ­week residential incubator program offers entrepreneurs an opportunity to nurture ideas and seek mentorship from tech industry leaders and to live and work with fellow founders 24/7 to foster collaborations and exchange ideas. At the end of the accelerator program, entrepreneurs can also pitch their ideas to potential investors. NewME has successfully helped launch and grow the businesses of hundreds of minority founders, who have collectively raised more than $20 million in venture capital financing.
Entrepreneurs in the program can also take advantage of NewME’s sophisticated online learning platform, which provides educational resources, tools and access to the accelerator’s network of technology mentors at any time and from any place.
5. Black Founders.
is a national network of African­-American founders that is dedicated to increasing the number of successful black entrepreneurs in tech. The organization creates networking events year­round, as well as educational programs and a conference series, “Ideas Are Worthless,” in San Francisco, Atlanta, New York and Austin where black founders can network with each other and potential partners and investors.
Related:
Black Founders started the HBCUHacks program, which is a well known series of weekend hackathons that provide students at HBCUs (historically black colleges and universities) the opportunity to develop their computer science skills and invent apps or software. In fact, during the last few years, one-­fifth of graduating black students at HBSUs with a degree in engineering have benefited from the hackathon program.
As a minority entrepreneur who has founded several startups and successfully raised VC money, I’ve always advised young people of color who are interested in entrepreneurship to actively seek outside help. Even if only 1 percent of resources within the tech community are dedicated to minority founders, those of us who want to see change in minority representation in future years should make the most of these resources ­­ in the hope of maximizing not only our own chances of success but also our ability to help others and pay it forward.

5 Organizations Helping Minority Startup Founders Succeed

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Ciscos Organizational Change

Ciscos Organizational Change.
Cisco Background Cisco is an IT enterprise that was founded in 1984 by Leonard Bosack and Sandy Lerner. Bosack and Lerner eventually got married and were the first to develop a multi- protocol router. McJunkin and Reynders (2000) describes the multi-protocol router as “a specialized microcomputer that sat between two or more networks and allowed them to talk to each other by deciphering, translating, and funneling data between them” (Mcjunkin & Reynders, 2000). The organization was responsible for opening and linking all the computer networks around the world together.
This linking of all the computer networks was much like the way telephone networks are linked around the world. The local-area network (LAN) was the first market Cisco competed in and offered quality routers which became the “traffic cops of cyberspace” (Mcjunkin & Reynders, 2000). Cisco eventually became the leaders in this market with their data networking equipment and by 1997, McJunkin and Reynders (2000) states “80% of the large scale routers that powered the Internet were made by Cisco” (Mcjunkin & Reynders, 2000).
As the global Internet grew Cisco began to expand its product line, which included a wide range of networking solutions. Website management tools, dial-up and other remote access solutions, Internet appliances, and network management software were all apart of this expansion. In 1990 Cisco market value was an astonishing $222 million and the organization continued to grow into a multinational corporation with over 10,000 employees. Cisco revenues had more than tripled by 1997 and “revenues had increased over ninety-fold since the IPO, from $69. 8 million in fiscal 1990 to $6. billion in fiscal 1997” (Mcjunkin & Reynders, 2000). Organizational Problem Cisco is now a large IT enterprise with over 300 locations in 90 countries with a framework that makes its operation more efficient and responsive. The structure of Cisco is comprised of “46 data centers and server rooms supporting 65,00-plus employees” (“How Cisco IT”, 2009). The traditional structure of Cisco is one that has staffers doing both implementation and operational work. The traditional structure of Cisco was one that caused staffers to drop operational projects to complete deployment.

According to Cisco “with the traditional organizational arrangement, there was much duplication of effort and lack of focus across the organization” (“How Cisco IT”, 2009). Cisco’s original organizational model (see exhibit 1) was comprised of regional network teams and regional voice teams. These teams were accountable for all aspects of operating and implementing services and their environment. A change in the organization was needed in order for Cisco to attain the levels of efficiency, additional scalability and agility the IT enterprise needed.
The main challenge Cisco faced during this change process was the need for the IT Network and Data Center Service (NDCS) to become more organizationally focused. Within Cisco there is an advanced service called Network Availability Improvement Services (NAIS), which identifies areas within the organization that need change. In order to do this NAIS “assesses and remediates the people, process, and tools needed to mitigate operational risk and network complexity by running an Operational Risk Management Analysis (ORMA)” (“How Cisco IT”, 2009).
For the issue lack of focus, NAIS began by “interviewing business and IT leaders and senior engineers, and then gathers technical, process, tools and organizational documents and templates”. An assessment is then developed by NAIS, which outlined an achievable vision and a detailed road map for NDCS to follow (“How Cisco IT”, 2009). Organizational Change After the ORMA report vice president of NDCS John Manville had to restructure the NDCS department to “map to its own lifecycle business model” in order to solve the problems the department was facing (“How Cisco IT”, 2009).
The new business lifecycle model the NDCS department had to map to was comprised of six phases; Prepare, Plan, Design, Implement, Operate, and Optimize. Manville’s approach to restructuring the NDCS group to improve efficiency and focus was an Action Research Approach. McShane and Steen (2009) define action research as “a problem-focused change process that combines action oriented and research orientation” (McShane & Steen, 2009). Manville formed a client-consultant relationship with the NAIS department within Cisco, which then determined the readiness for change in NDCS.
NAIS then diagnosed the need for change after the department gathered and analyzed sufficient data to show the lack of focus and duplication of effort within NDCS. The NAIS department “begins the process by interviewing business and IT leaders and senior engineers, and then gathers technical, process, tools and organizational documents and templates” (“How Cisco IT”, 2009). The introduction of the restructuring intervention is an action that was needed to correct the problem NDCS was facing and to build a better organizational structure. Manville introduced this intervention to the department by testing the lifecycle methodology within it.
This intervention involved “moving some resources from the former engineering and operations teams to the new implementations team” (“How Cisco IT”, 2009). This change was key to the operations team gaining more focus on task and not being distracted by deployments. The implementation of this change was over two years, which means that Manville’s restructuring was incremental. McShane and Steen (2009) define incremental change as when an “organization fine-tunes the system and takes small steps toward a desired state” (McShane & Steen, 2009).
The change to the NDCS department was stabilized and results shows that the change was effective. The maturity of the department improved significantly from 2006 to 2008 (see exhibit 3). The results also showed that before this change was introduced in NDCS there were “150 client-impacting incidents per quarter” and a “defective root cause percentage consistently above 40 percent” (“How Cisco IT”, 2009). After this change was introduced, focus on operation excellence improved with client-impacting incidents reducing to 70 per quarter and defective root cause percentage is consistently below 10 percent (“How Cisco IT”, 2009).
Not only did the maturity of the department improve through this change process but also customer satisfaction (see exhibit 4). Cisco (2009) explains, “NDCS has achieved customer satisfaction scores of 4. 856, with 5 being the best possible score” (“How Cisco IT”, 2009). Conclusion Cisco was able to improve efficiency, focus and results delivered each quarter by the NDCS department through organizational restructuring and change. Shawn Shafai, an IT manager of Network Services at Cisco stated, “The new organizational structure gave us the opportunity to focus on our core operational work.
Our critical metrics quickly displayed the positive results from these changes, and outstanding results started consistently being delivered quarter after quarter” (“How Cisco IT”, 2009). The unfreezing of the organizational structure by Manville was essential to implement change in NDCS. After the results from restructuring NDCS were effective NAIS and Manville decided to refreeze the changes in order to reinforce and maintain the desired behaviors. Exhibit 1 Cisco’s original Organizational Model Exhibit 2 NDCS Lifecycle Model Exhibit 3 Cisco’s improvement from 2006 to 2008
Exhibit 4 NDCS Customer Satisfaction References McShane, S. L. , Steen, S. L, (2009). Canadian Organizational Behaviour 7th Edition. McGraw-Hill Ryerson. McJunkin J. , and Reynders, T. (2000). Cisco Systems: A Novel Approach To Structuring Entrepreneurial Ventures. Retrieved from gsbapps. stanford. edu/cases/documents/EC%2015. pdf (2009). How Cisco IT implemented Organizational Change and Advanced Sevices for Operational Success. Retrieved from http://www. cisco. com/web/about/ciscoitatwork/downloads/ciscoitatwork/pdf/NDCS_Restructuring_AdvSvcs_Case_study. pdf

Ciscos Organizational Change

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Leading change in organization

Leading change in organization.
From a contingency point of view, Kwek is regarded as a task oriented leader. He seems to do well in situations with decent leader-member relationship and strong position power. The leader-member relations in the organization are favorable, as his employees are loyal, dependable and supportive. His positioning power is strong, as he perceives himself to have full power and authority to direct, reward and punish subordinates. He experiences pride and satisfaction in task accomplishment for the organization.
As a task-motivated leader, he is at his best when the group performs successfully in achieving new sales record or outperforming the major competitors. So far, Kwek has always been strongly concerned to completing successfully any task he has undertaken. He runs a “tight ship” with clear orders. As Fiedler (1967) suggests that there are two fundamental leadership styles that are differentially effective in different situations, Kwek will need to develop more as a relationship motivated leader. This will enable him to derive greater satisfaction from better personal relationships with others.
He should show more sensitivity to his subordinates’ feelings and encourage them to participate and offer more ideas. Effective leadership will depend on the characteristics of the situation in terms of the ability of the leader to exercise power and control. The more power he has and the greater his influence and control then the less will be the dependence on the goodwill of others, and the easier his leadership task will be. Therefore, the ease with which he might be able to cope with either of these situations will depend upon whether he finds it easier to use a relationship-motivated or a task-motivated leadership approach.

Leading change in organization Up till now, no real change effort has been instituted because Kwek and his managers take the views that ‘father knows best’ and ‘if it ain’t broken, don’t fix it’. Also, any change is thought to have a negative impact on them since the change could alter the formal, psychological, and social relationship that employees have with the organization. It will require everyone to give up long-standing habits and people will feel that they are forced to change by people and events outside of their control.
The current recession, however, has forced the need for reorganization since profits for 2001 have dropped drastically. There has been a big slump in property sales and this is expected to continue in the near foreseeable future. Also, peripheral businesses such as plastic moldings have folded. There has also been increasing customer dissatisfaction with core products, recurring delay in delivery of projects, and disgruntled minority shareholders who feel that their interests have been ignored.
Kwek will need to establish and communicate a compelling reason to change that shows people how their lives will be better and show a compelling vision for the future of the organization. The change is aimed at achieving clear, tangible, bottom-line results that all can see. The leadership will need to flood the organization with information about the change effort. Kwek will need to appoint a strong and committed top-management guiding coalition that is in full agreement about the need to change and what the change is intended to accomplished.
Kwek could create a coalition to approve change, forming teams to guide it, selecting the right people to fill key positions, making symbolic changes that affect the work, making structural changes to institutionalize change, and monitoring the progress of change to detect problems that require attention. Kwek could create a sense of urgency, preparing people for change, helping them cope with change, keeping them informed, demonstrating continued commitment to the change program, and empowering people to implement change.
He can increase learning and innovation in the organization by encouraging experimentation, reflection, knowledge importation, information sharing, diffusion of knowledge, systems thinking, and improvement of mental models. By doing these, the chances of making the right decision such as the direction of the organization is greater since more information is disseminated, and everyone provides input. There will be greater commitment and greater acceptance of change as integral part of daily work IS KWEK’S LEADERSHIP EFFECTIVE?
The leadership of Kwek Leng Beng has so far brought the organization many years of prosperity and growth in the context of modernizing Singapore. Although the Hong Leong Group has done well in the past, there is no guarantee that it will continue to do so in future. In this turbulent, fast changing world in which decisions need to be made throughout an organization and in which the information needed to make those decisions can be rapidly distributed, the principles and consequences of leadership are breaking down.
In this environment, the Industrial Age leadership of “command and control” or “planning, organizing, motivating, and controlling” is becoming out of date. “Control” has given way to “coordinate”, and coordinating implies a respect a respect for underlying beliefs and values in a way that controlling did not. To thrive in the Information Age, Kwek will need to do more. The employees will not only do what they are asked to so, but they will do it willingly and believe in it deeply.
Kwek needs to understand what encourage people to work their hardest and brightest voluntarily and to know that unless they can find ways of organizing to elicit this kind of work, the Group will fall behind its competition-who will understand and find ways to so it. Transformational leadership Kwek would need to develop more as a transformational leader, with a stronger vision that appeal to his employees’ “better nature and move them toward higher and more universal needs and purposes” (Bolman and Deal 1997: 314).
In order words, he needs to be a change agent. Transformational leaders seek to raise the consciousness of followers by appealing to higher ideals and moral values. Transformational leaders make followers more aware of the importance and value of task outcomes, activate their higher-order needs, and induce followers to transcend self-interest for the sake of the organization. Transformational effects are achieved by using four types of leadership behavior: individualized consideration, intellectual stimulation, idealized influence, and inspirational motivation.
As a transformational leader, Kwek could then help team members view their work from more elevated perspectives and develop innovative ways to deal with work-related problems. He should appeal to employees’ ideals and moral values and inspire them to think about problems in new or different ways. He should develop behaviors to influence them through vision, framing and impression management. Vision is his ability to bind people together with an idea. Framing is the process whereby he defines the purpose of his movement in highly meaningful terms.
Impression management is his attempt to control the impressions that others form about him by practicing behaviors that make him more attractive and appealing to others. Other skills for transformational leadership include inspiration, intellectual stimulation, individualized consideration, participative decision making, and elective delegation. Transformational leadership will result in lower turnover rates, higher productivity and higher employee satisfaction. He will then instill feelings of confidence, admiration and commitment in his employees.
He will create a special bond with them, articulate a vision with which the subordinates will identify and for which they are willing to work. Each subordinate is coached, advised and delegated some authority. He will need to stimulate them intellectually, arouse them to develop new ways to think about problems. He will need to use contingent rewards to positively reinforce performances. He will need to find clear and workable ways to overcome obstacles and show concern for the qualities of the services his organization provides to the mass of the people.
People are bonded to their companies by more than paychecks and fear of unemployment. They need to believe in what the company is doing, They will need to have information available to them about how the company is doing. They need to understand the importance of delighting the customer in a world in which alternative sources are proliferating. Kwek needs to understand that unless the employees are delighted, the customers will not be.
Forcing people to go to work, to break a strike, to stay late, to do anything, may be the easiest solution at the moment, but in the long run, this approach creates much more difficulty. Effective leadership is about thinking beyond the immediate to identify other avenues that ultimately impinge on the hearts and heads as well as the bodies of the associates. A big part of effective leadership is the view that the leader takes of the strategic thinking tasks facing him, the work group, and the organization.
The quality of the relationships with others had a major impact on whether others would accept his view of the strategic challenges facing them. The leadership needs to build its influence on a moral foundation and then to communicate clearly and effectively to the employees. The judgement of whether the leadership of Kwek Leng Beng is effective or not is then predicated upon whether he is able to fulfill four key roles, namely, whether he is the direction setter, the change agent, the spokesperson, and the coach.
These roles are articulated as follows: 1. Direction setter- he needs to select and articulate the direction of the organization that will be recognized as representing real progress. The leadership will have to establish a vision so compelling that everyone in the organization will want to help make it happen. This is by means of the organizational charter outlined earlier. 2. Change agent- he needs to catalyze changes in the internal environment; in personnel, resources and facilities to make the vision achievable.
This is done by an overhaul of the organizational designs, system and culture. 3. Spokesperson- he needs to develop his skills as a speaker, listener through courses and seminars. He has to be the major negotiator with other organizations, and the builder of networks of external relationships to provide useful ideas, resources, support, or information for the organization. The leader and his vision must become the medium and the message that expresses what is worthwhile, attractive, and exciting about the future of the organization. 4.
Coach- to be an effective, he must let people know where he stands, what the vision means to him, and what he will do to make it happen. The leader as coach, must also be committed to the success of everyone in the organization, respecting them, building trust, helping them learn and grow, and teaching them how to constantly improve their ability to achieve the vision. It is still too early to tell whether Kwek will be able to develop all these characteristics of effective leadership, but signs are that efforts are being made in the appropriate direction.
REFERENCES
Yukl, G. (1998). Leadership in Organizations. New Jersey: Prentice-Hall Shameen, A. (2001). Doebele, J. and Brown, H. The Man with the Golden machine gun. Forbes Magazine July 9, 2001 Schiffman, B. Forbes Faces: M&C’s Kwek Leng Beng. Forbes Magazine December 11, 2000 Forbes World’s Richest People – Kwek Leng Beng. Forbes Magazine November 16, 2000. Shameen, A. A reclusive tycoon fights for the underdogs-including himself. Asiaweek Magazine June 9, 2000

Leading change in organization

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