Running Head: Group 2 Discussion Board Forum 1 – Part 2

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Group 2 Discussion Board Forum 1 – Part 2

Venita Boykin, Marcie Davis, Erica King, Daphnee Mondevil, Margit Roberts

BUSI 610

Liberty University

Group 2 Discussion Board Forum 1 – Part 22

Why is shared information so important in a learning organization as compared to an

efficient performance organization?  Discuss how an organization’s approach to

information-sharing might be related to other elements of organization design, such as

structure, tasks, strategy, and culture.

An efficient performance organization is based on a vertical organizational structure,

where all the strategy formulation and decision-making is done by top executives and handed

down the vertical hierarchical chain to be completed by workers (Daft, 2010). This form of

organization structure allows top management to maintain control over the information provided

to accomplish work processes and procedures necessary to meet organizational goals. A learning

organization is based on a horizontal structure, where information is disbursed throughout the

organization more openly through various methods. These methods include hiring employees

with expertise and conducting training and development, which infuses knowledge throughout

the organization to develop new processes and procedures to meet organizational goals (Kreitner

& Kinicki, 2010). Learning organizations rely on shared information to formulate the strategies,

processes, and procedures necessary to meet organizational goals and objectives. Without the

fluid sharing of information, a learning organization would cease to exist.

Information-sharing in a learning organization is based on a collaborative strategy where

employees achieve outcomes and meet organizational goals by carrying out roles versus

completing tasks (Daft, 2010). Kumaraswamy and Chitale (2012) indicated that collaboration is

the only way to bring people together to share knowledge. Employees are able to contribute to

problem-solving and strategy creation during the collaboration process as they perform their

Group 2 Discussion Board Forum 1 – Part 23

roles. According to Daft, “a role has discretion and responsibility, allowing the person to use his

or her discretion and ability to achieve an outcome or meet a goal” (p. 31).

Collaboration in a learning organization contrasts the hierarchical approach in the

traditional, vertically structured firm, which relies on the vision, strategies, and handed-down

processes and procedures from upper management. For information-sharing to be effective in a

learning organization, the organization must be designed in a manner that will accommodate the

fluid transfer of information; therefore, many learning organizations develop cultures that

encourages “openness, equality, continuous improvement, and change” (Daft, 2010, p. 33).

Contrary to the rigid, closed model of the efficient organization, the learning organization is

based on an open-system model, where survival is dependent on constant interaction within the

environment (Kreitner & Kinicki, 2010).

What are some differences one might expect among stakeholder expectations for a

nonprofit organization versus a for-profit business?  Do you think nonprofit managers

have to pay more attention to stakeholders than do business managers?  Discuss.

A stakeholder includes everyone and everything that influences an organization. The

stakeholder approach involves “the activities of corporations’ impact on individuals and

collectivities whose interests are thereby affected both negatively and positively” (Cragg, 2002,

p. 116). The idea behind this approach is that a balance should be achieved among everything

and everyone affected directly and indirectly by a company. There are primary and secondary

stakeholders. The primary stakeholders are those who are directly affected by the company’s

decisions, such as shareholders and employees. Secondary stakeholders are those who are

indirectly affected by the company but hold the capability of destruction (Cragg, 2002).

Group 2 Discussion Board Forum 1 – Part 24

Secondary stakeholders expect nonprofit organizations to achieve social goals and resolve issues

within certain social divisions. Nonprofit organizations focus on providing a service which

would positively impact people and the community (Daft, 2010). Funding for a non-profit

organization comes from donations, government appropriations, and grants, which places the

stakeholders in a relationship for a marketing strategy for managers (Knox & Gruar, 2009).

For-profit businesses often concern themselves with primary stakeholders, since their influence

is the monetary outcome of the company’s decisions. For-profit businesses are also concerned

with their reputation among stakeholders and focus on creating a return on investment for

shareholders through their products and services. Stakeholders in a for-profit business consider a

return on capital, where profit, growth, and the overall performance of the company are

important.

Whether success is measured financially or otherwise, management should focus on

getting the best results with as little amount of resources as possible on the path of achieving the

organization’s critical success factors. While stakeholder interest may be different in a nonprofit

versus a for-profit organization, management has the same duty to do the best job with the

resources available for the good of the company in the most efficient and effective manner

possible. All organizations must consider stakeholders when seeking success in today’s market.

How might a company’s goals for employee development be related to its goals for

innovation and change?  To goals for productivity?  Can you discuss ways these types of

goals might conflict in an organization?

Employee development often falls under the category of operative goals. Operative goals

state the primary responsibilities of an organization (Daft, 2010). Operative goals are often

Group 2 Discussion Board Forum 1 – Part 25

interrelated. Employee development highly relates to goals for innovation, change, and

productivity.

Innovation and Change

In today’s market, organizations must continue to adapt to new changes. A new product

or service may require new, innovative training procedures for employees. Changes in time-

management strategies may involve restructuring the company’s training program. New

government regulations may require continuing education within the company. These types of

changes directly affect employee development. Investing in ways to increase emotional

intelligence in employees greatly benefits an organization (Lam & O’Higgins, 2012). As

employees gain education and skill, they feel confident in contributing to further research and

development of production and services.

Productivity

Employee development is also directly related to productivity goals. “The accumulation

of knowledge capital, like employees’ training, enhances the firm’s ability to assimilate and

exploit existing external information” (Marrocu, Paci, & Pontis, 2012, p. 397). A company will

increase its productivity when employees receive superior training. An organization’s

productivity goals may include increasing or perfecting the skills of its employees in order to

increase production. Also, if a company focuses on developing employees, then the employees

will take pride in efficiently producing a quality product. When it comes to productivity, a well-

trained and content work force will more eagerly produce at peak levels, thus increasing output.

In addition, as employees feel more competent and confident in their positions, they refrain from

Group 2 Discussion Board Forum 1 – Part 26

seeking employment elsewhere. Job satisfaction increases productivity due to decreased

turnover and reduction of new-hire training.

Conflicts

Within any organization, conflict arises when goals and available resources collide. A

company may have high goals for employee development, innovation and change, or

productivity; however, it may not have enough available resources to allocate to each area. For

example, suppose an organization sets a goal to increase productivity by twenty percent within

the next year. In order to achieve this goal, the company must invest in innovations or changes

in equipment or employee training. Updating equipment will be costly, and furthering employee

training will require a considerable amount of time. The company’s overall goals and resources

among the sectors will lead to a management decision that may impede one or more goals.

Employee development may also conflict with other goals due to the uncertain outcome

of the development. The company cannot guarantee that the employees, after becoming better

trained and more developed, will remain with the company and keep the newly acquired

knowledge internal. If employees do not stay with the company after the development goal has

been attained, the company’s productivity will most likely decrease, and the company’s

competitors will then receive new, highly-qualified employees. This risk of losing investments in

employee development keeps some companies from profiting from the substantial gains (Bernier

& Cousineau, 2010).

Suppose you have been asked to evaluate the effectiveness of the police department in a

medium-sized community.  Where would you begin, and how would you proceed?  What

effectiveness approach would you prefer?

Group 2 Discussion Board Forum 1 – Part 27

To begin evaluating the police department effectiveness, the group would first look at the

goals of the department and then review the roles and responsibilities by understanding its

organizational structure. To measure the effectiveness, the balanced scorecard would be an

appropriate approach. Developed by Robert Kaplan and David Norton, the balanced scorecard is

a performance measurement tool that includes strategic non-financial performance evaluations to

the customary financial performance indicators to provide a balanced view of effectiveness

(Sharma, 2009). The approach allows for a review in financial performance, customer service,

internal business processes and capacity for learning and growth (Sharma, 2009). In addition to

the balanced scorecard approach, an evaluation of the police chief will be performed; an

organizational environment is based on the tone at the top, thus the police chief should be

evaluated for fairness, ethics, and possibility of bias or racism. In the evaluation process, a

careful analysis of the police department rules, regulations, and policy would be included to

determine if they are being followed. If the processes and procedures help the employees meet

the goals and objectives of the department, the next step would be to make required

improvements. If the processes and procedures do not help the employees meet the goals and

objectives of the organization, changes would be made in order to make the goals strategically

aligned with the department’s goals and objectives.

Financial Performance

The police department would be evaluated on its financial performance. An evaluation of

financial performance cannot be disregarded in order to effectively assess a company’s

performance (Sharma, 2009). The evaluation would include the allocation of funds, the costs

Group 2 Discussion Board Forum 1 – Part 28

used by various divisions within the department, the money brought in by certain activities, and

an analysis of cost-benefit data.

Customer Service

The customer service section of the balanced scorecard approach is based on the

increased realization that customer satisfaction is important to the success and effectiveness of a

business and is an important measurement tool (Sharma, 2009). In this situation, the customers

would be the community in which the police department operates. The evaluation would

consider how the community views the police department and how satisfied community

members feel with how the department performs. Questionnaires could be given out to the

community to ask questions about safety and other general questions pertaining to the

effectiveness of the police department.

Internal Business Processes

The police department’s internal business processes would also be evaluated. The

effectiveness of current procedures and activities would be analyzed in order to discover ways to

increase efficiency and lower costs. This portion of the evaluation would also indicate whether

the police department’s service fulfills the mission of the department and conforms to customer

requirements (Sharma, 2009).

Learning and Growth

In an organization such as the police department, employees must undergo extensive

training in a variety of circumstances. Learning and growth is a vital component in a successful

organization (Sharma, 2009). In order to evaluate the effectiveness of the department, employee

retention, satisfaction, and training would be measured.

Group 2 Discussion Board Forum 1 – Part 29

What types of organizational activities do you think are most likely to be outsourced?

What types are least likely?

Outsourcing occurs when a company uses external partners to perform tasks at a cheaper

rate or in a more efficient manner (Daft, 2010). As McIvor (2010) pointed out, due to the

increase in globalization, companies thrive to be more efficient and reduce their costs by

specializing in key areas and outsourcing the remaining activities. Activities such as

manufacturing, credit processing, logistics, maintenance and equipment repair, accounting,

marketing and distribution, human resources and payroll, market research and date collection,

public relations, delivery of goods, call centers, credit processing, secretarial services, as well as

other support functions are most likely to be outsourced in order to save time or money.

However, information systems and technology is the most outsourced area (Elmuti, Kathawala,

& Monippallis, 1998). Even research and development, which is a vital part of the firm’s

innovation, has the potential to be outsourced to give the company access to resources they may

not have internally (Grimpe & Kaiser, 2010). Dekkers (2011) found that in a manufacturing

environment, the decision to outsource is mainly driven by cost factors; contracting out certain

portions of the manufacturing activities leads to reduced production cost and thus promotes

economies of scale.

Activities least likely to be outsourced are those related to the organization’s core

competencies and are critical to achieving or maintaining a competitive advantage. McIvor

(2010) stated that valuable resources, which are the capabilities that allow a firm to stay

competitive and defy threats, should be kept in-house to maintain their uniqueness and integrity

and to reduce chances for imitation. The closer the activity is to the core of the business, the less

Group 2 Discussion Board Forum 1 – Part 210

likely it is for the activity to be outsourced (Jenster & Henrik, 2000). The core, as described by

Jenster and Henrik (2000), includes resources, either human or technical, and the financial assets

that set the company apart from competitors. In addition, organizational activities that can be

performed with little cost or time within the company are less likely to be outsourced, because

contracting out these tasks or functions would not give the company an advantage over

competitors or help the bottom line.

Group 2 Discussion Board Forum 1 – Part 211

References

Bernier, A., & Cousineau, J. M. (2010). The impact of training on productivity in Canadian firms: Estimating distributed lags from the WES 1999 – 2005. International Journal of Interdisciplinary Social Sciences, 5(7), 231 – 239. Retrieved from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=a9h&AN=66384551&site=ehost-live&scope=site

Cragg, W. (2002). Business ethics and stakeholder theory. Business Ethics Quarterly, 12(2), 113-142. Retrieved from http://search.ebscohost.com.ezproxy.liberty.edu:2048/login.aspx?direct=true&db=bth&AN=6660261&site=ehost-live&scope=site

Daft, R. (2010). Organizational theory and design (10th ed.). Mason, OH: Cengage Learning.

Dekkers, R. (2011). Impact of strategic decision making for outsourcing on managing manufacturing. International Journal of Operations & Production Management, 31(9), 935-965. doi: 10.1108/01443571111165839

Elmuti, D., Kathawala, Y., & Monippalli, M. (1998). Outsourcing to gain a competitive advantage. Industrial Management, 40(3), 20. Retrieved from http://proquest.umi.com/pqdlink?did=31921898&Fmt=2&clientId=20655&RQT=309&VName=PQD

Grimpe, C., & Kaiser, U. (2010). Balancing internal and external knowledge acquisition: The gains and pains from R&D outsourcing. Journal of Management Studies, 47(8), 1483 – 1509. doi: 10.1111/j.1467-6486.2010.00946.x

Jenster, P. V., & Pedersen, H. (2000). Outsourcing – Facts and fiction. Strategic Change, 9(3), 147 – 154. doi: 10.1002/(SICI)1099-1697(200005)9:3<147::AID-JSC456>3.0.CO;2-8

Knox, S., & Gruar, C. (2007). The application of stakeholder theory to relationship marketing strategy development in a non-profit organization. Journal of Business Ethics, 75(2), 115 – 135. doi: 10.1007/s10551-006-9258-3

Kreitner, R., & Kinicki, A. (2010). Organizational behavior. New York, NY: McGraw-Hill/Irwin.

Kumaraswamy, K., & Chitale, C. (2012). Collaborative knowledge sharing strategy to enhanceorganizational learning. Journal of Management Development, 31(3), 308 – 322. doi: 10.1108/02621711211208934

Lam, C., & O’Higgins, E. (2012). Enhancing employee outcomes. Leadership and Organization Development Journal, 33(2), 149 – 174. doi: 10.1108/01437731211203465

Group 2 Discussion Board Forum 1 – Part 212

Marrocu, E., Paci, R., & Pontis, M. (2012). Intangible capital and firms’ productivity. Industrial and Corporate Change, 21(2), 377 – 402. doi: 10.1093/icc/dtr042

McIvor, R. (2010). The influence of capability considerations on the outsourcing decision: The case of a manufacturing company. International Journal of Production Research, 48(17), 5031 – 5052. doi: 10.1080/00207540903049423

Sharma, A. (2009). Implementing balance scorecard for performance measurement. ICFAI Journal of Business Strategy, 6(1), 7 – 16. Retrieved from http://proquest.umi.com/pqdlink?did=1948666341&Fmt=2&clientId=20655&RQT=309&VName=PQD