7-1 Discussion: Performance and Organizational Capabilities
Alina Terezi posted Nov 28, 2021 12:06 PM
Hello Everyone,
I believe that organizational capabilities are the key factors that lead companies to deliver high performance, therefore they go hand in hand. I agree with the quote due to the fact that it is focusing on the “best-performing companies” who may already be top leaders in high performance. Therefore, these companies are focusing on working to improve their organizational capabilities in order to sustain that high level of performance over time. “It is the organizational capabilities and culture that determine how people interact with processes that deliver performance (Bititci, 2015).” It is fundamental that organizations keep developing the operational, dynamic, ambidexterity, and learning capabilities within their companies to get one step closer in achieving a long-term sustainable performance. Even the best performing companies need to have a focused business plan in place, the ability to constantly innovate, change, and developing by learning if they want to continue being successful.
Organizational Culture affects capability and performance greatly. If companies have an open and participative culture where all informational is openly shared inside and outside the company, it creates a level of trust with its employees. At the same time, “trust, together with autonomy, creates a sense of adventure and experimentation which, in turn, leads to new insights, knowledge and innovations (Bititci, 2015).” If employees have a general purpose of what the companies’ goals and values are, and if they work together in teams effectively, it will lead to increased levels of sustainable performance.
Company A can be considered efficient in all areas as each section leader does a good job highlighting the areas the company excels in but also introduces a new area of opportunity or process improvements for the company. This means that the company has good operational capabilities in place while still embracing their dynamic capabilities of innovation and change. The issue with company A is that their ambidexterity capability is nonexistent, which is extremely important for them to merge their operational and dynamic capabilities together to be able to move forward with a long term and sustainable plan. The company’s organizational culture can be improved as right now each leader has insights and plans, but the company overall is not sharing the same goals and values therefore causing a high turnover rate. New management needs to do a better job addressing employee training and development to help with retention.
Company B President has an unrealistic business model in place in which will drastically impact the company’s performance. Though the president has visionary perspectives that would guide the company in new directions, it seems like they be out of scope and reach for what the company has already in place. The company’s sales have had no increase, yet IT costs have increased due to integration of newer software partnerships. Their most dedicated employees are those who are close to retirement age with no certifications in place due to lack of organizational trainings. HR being an outside company does little to help with employee retention and ongoing skillset trainings to help employees grow within the company. Overall, Company B as an organization is not interconnected in many ways. It seems like leaders see the organization as a “collection of mutually exclusive, independent parts, rather than a whole.” There is little commitment to learning, and no shared higher purpose for its employees.
References:
Bititci, U. S. (2015). Managing Business Performance. Wiley Professional, Reference & Trade (Wiley K&L). https://wileyplus.vitalsource.com/books/9781119025…
8-1 Discussion: Performance and Organizational Capabilities (Part Two)
In Module Seven, you developed an argument based on the following statement: “The best-performing companies worry less about performance and more about their organizational capabilities” (Bititci, 2015).
You also shared your thoughts about Company A and Company B and their cultures and capabilities.
This week, you will review and respond to your peers’ posts. Respond to at least two of your peers (providing feedback for peers without any feedback first).
Review the posts by your peers and provide your feedback by answering the following questions:
Do you agree or disagree with your peers’ initial posts about the relationships between organizational culture, capabilities, and performance? Explain.
What is different about their perspectives, and how do you think it will affect the overall performance evaluation of these companies?
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