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The Role of the Organizational Process in Business

Effective Model of Company Organization

According to Simon H., an effective and efficient model is based on the level of competitiveness and the ability to adapt to a highly dynamic environment. Simon aimed at exploring the management theory that is best suitable in increasing the cohesiveness and unity of various individuals and processes in an organization. Simon found that “a large part of the behavior of the system takes place inside the skins of the firm and does not just consist of market changes” (Simon 1995). He further found that the appropriate method of motivating people in an organization is by creating a functional reward system. This helps the staff to increase their productivity hence the general motivation of individuals is achieved at the organizational level rather than being affected by market forces.

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Motivation according to Simon, when inappropriately applied leads to a conflict of interests. This means that the workers’ attitude towards their duties drastically changes and they may prefer to pursue their interests as compared to corporate interests. Proper organizational practices propel the firm to have a harmonized system of operation. The workers become more acquainted with the primary objectives of the firm hence work towards achieving the missions and goals of the firm. Well-motivated employees use this motivation to nurture the growth of the business and also increase their general responsibility towards the achievement of this. This culture of motivation is eventually passed to the final consumer.

Theories of Organization of the Company’s Work

The success of a business mainly depends on the organizational operations and the flow of information between the different departments in the organization. This starts from a division of labor and specialization ending at the management level of an organization. The managerial process is hence one of the key factors in the achievement of the objectives of the firm. A business has to be diverse in implementing ideas and incorporating strategic plans in its operations. Moreover, the providence of information should not only analyze the technical aspect of the business but also the main issues affecting the operations of the firm. The firm should address the internal and external environments affecting the business. It is very important to bear in mind that the success of a business comes from the practicality of the business in implementing market concerns and the general society.

On the other hand, the underlying factors that affect business firms both at the internal and the external environment should be put into consideration. To competitively nurture business growth in a world that experiences various changes that affect the business environments, a business organization should make frequent changes in its routines and corporate cultures and establish partners that help the business to effectively carry out its operations. Due to the recent increase in global competition, firms should become updated with the various departmental and market forces that influence how the business is run.

Both theories explore and eventually indicate that the organizational level is perhaps the one that predetermines the success or failure of a business. To establish competitive advantage, hybrid organizations should come up with relevant strategies at the organizational level of the business that implement the policies of the organization to the fullest. This should break the traditional assumptions that time is a key factor in the success of the business. Time should only facilitate the implementation program. One way of structuring the organizational process to achieve maximum efficiency is through the motivation process and the coordination of various business processes. In pursuit of effective and appropriate motivation methods, the firm should establish proper and efficient communication channels that link the management and the subordinates and provide the cohesiveness of the organizational process.

Due to the dynamic nature of the business environment, substantial knowledge of market factors forms a key in the success of the firm in achieving its goals and objectives. However, we must not forget the key factors that contribute to the proper analysis of the market. Integrating a highly motivated staff helps create a successful collaboration and alliance between the staff and the management. It is extremely essential to explore the various challenges that affect the internal business environment. The nature and outcome of the market are a living testimony of the dedication of the management process and the planning process involved. The market should reflect whether the individuals involved in the business are motivated or not.

As management students, it is good to get acquainted with the primary role of the organizational process in a business. The managerial staff is the key to achieving business goals and other factors form an important link between the organization’s goals and objectives and the environmental forces affecting the business. Rewarding employees creates a system for promoting efficiency and increasing output as well as the overall role of achieving goals and objectives of the firm.

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Reference

Simon, H. (1995) ‘Organizations and markets’: Journal of Public Administration Research and theory, 5(3), pp.273-294.

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StudyCorgi. (2021) 'The Role of the Organizational Process in Business'. 13 December.

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