MANAGING PEOPLE AND ORGANISATIONS
Question 1
Whereas goals are outcome statements that elaborate what an organization aims to accomplish, objectives are the specific, measurable and realistic actions that lead to the achievement of organizational goals (Rodgers & Hunter 1991). However, policies are brief statements that indicate the commitment of an organization to providing a product or a service to the public. Objectives of an organization guide in the accomplishment of the goals while the policies govern the behavior of the organization towards achieving objectives and goals (Ittner &Larcker, 2003).
In the case of EXPERTS, Zizi’s goal was to have her own business and to achieve her dream of creating gourmet chocolates. This has contributed to effective management in the company since through proper management; the company always ensured that they offered a unique product to potential customers. The aim of EXPERTS’ of securing sales and developing new products was met by working closely with some restaurants to create specialist chocolates for their specific requirements.
Question 2
The main difference between formal and informal organizations is that formal organizations have the authority and hence superordination and subordination because individuals are valued based on status and prestige while informal organizations have leadership and hence dominance and submission because individuals are valued based on roles and esteem (Clegg et al., 2008). Formal organizations are less flexible compared to informal organizations
Question 3
Open systems theory emphasizes that organizations’ operations are strongly influenced by their environment (Ittner &Larcker, 2003). In this case, environment refers to other organizations that exert economic, political, or social forces. The organization also obtains resources from the environment that ensure that it functions and survives (Bastedo, 2004). In the case of experts, the open theory applies in that Zizi got financial assistance from the bank to acquire the latest equipment that was able to influence Zizi’s decisions of when the company was declared bankrupt. It also applied whereby the company decided to support Ethical Trading Initiative with the aim of creating self-help in the communities supplying the cocoa hence creating a positive culture in all aspects of the business.
Question 4
The different stakeholders in the case of EXPERTS include Zizi, who had greater influence on the development of the company where she always paid close attention to details of the company with the aim of offering a unique product to potential customers. Her major interest was to ensure that the business operates effectively and efficiently. Another stakeholder was the managerial team in the company who always ensured that the company achieved its goals through teamwork and at the same time developed their personal goals. Suppliers were also stakeholders in that the company could not operate without their essential services.
Question 5
An effective control strategy that I can recommend to EXPERTS is that they should ensure that the process of production and financial expenditure is controlled and monitored continuously. There is a need to account for any financial expenditure such that the calculated profits will reveal the true picture. This will guide decision making and planning in the company for efficiency in the running of the business. Such a strategy can be sustained by using control charts and graphs that indicate the expectations and the real results that are analyzed and conclusions drawn. These conclusions will help guide the next course of action.
Reference List
Bastedo, M. 2004. Open Systems Theory. The SAGE Encyclopedia of Educational Leadership and Administration. Thousand Oaks, CA: Sage Publications. pp1-5
Clegg, S., Kronberger, M. and Pitsis, T. 2008. Managing and Organizations. Thousand Oaks, CA: Sage Publications.
Ittner, C. D. and Larcker, D. 2003. Coming up short on nonfinancial performance measurement. Harvard Business Review, pp 1-8
Rodgers, R., and Hunter, J. 1991. Impact of management by objectives on organizational productivity. Journal of Applied Psychology, 76, pp 322–336.