Organizational progress

From CEOpedia | Management online

The progress of the organization refers to changes in the management structure of the company, production processes and administrative work, behaviour of workers and adaptation processes, information resources, material factors of production, etc. Each type of resources, structures, processes or factors can be influenced by organizational change and development.

Organizational transformations caused by progress

Following transformations are observed:

  • Modifying or creating new business goals (innovation)
  • Improvement of the organizational structure,
  • The division of labour and specialization,
  • Optimization of selection of the factors of production,
  • Coordination of the company processes,
  • Preparation of the conditions for economic cooperation,
  • Adaptation to the rules of the competitive market
  • Concentration of economic activities.

Organizational development and strategy

The organizational changes are subject to the company's management strategy. Strategies represent a variety of organizational measures, which may take the form of improvements to the existing situation (i.e., created from the ground up new and original solutions).

Specific directions of improvement of the organization include:

The essence of the Organizational Development approach is to study and diagnose of organization and operation of enterprises (institutions) and the use of so-called. interventions designed to alter attitudes and skills of employees.. The main emphasis in OD is located in shaping human behaviour, and its objectives are: development of such methods of influencing people so that they can easily adapt to changes in business tasks, as well as to changes in the environment,

  • assist management in human resource management,
  • improvement of teamwork, based on mutual trust of employees, cooperation and responsibility, 4) improvement of inter group communication.

Management development in organizational progress

Management development is an approach whose main goals are aimed at training planning and career of employees at management position, training and rotation in various positions in a hierarchical structure, specializing in the management roles of the different areas of the company. An important tool in this approach are periodic reviews and rankings of managers in a given speciality. They are aimed at assessing the effectiveness of management due to the economic performance gain by the company (divisions, departments, units), and also may be used when choosing the path of promotion for managers.

Examples of Organizational progress

- Increasing efficiency through technology: Organizations are implementing more automated processes and software to increase efficiency and reduce costs. For example, a manufacturing company may install a robotic assembly line to reduce the labor costs associated with manual labor.

  • Utilizing data-driven decision making: Companies are making more data-driven decisions to increase their competitive advantage. For example, a retail store may use customer purchase data to determine which products should be stocked in their stores.
  • Improving workforce engagement: Organizations are focusing on improving their employees' engagement levels by providing them with more meaningful work and implementing policies that increase job satisfaction. For example, a company may provide flexible work hours and telecommuting options to allow employees to better balance their work and life.
  • Investing in training and development: Organizations are investing more resources into training and development in order to ensure their employees have the skills and knowledge necessary to succeed. For example, a tech company may offer classes or seminars on the latest software development tools to ensure their employees are up-to-date on the newest technologies.
  • Enhancing customer experience: Companies are investing in customer experience initiatives to better understand their customers and create more personalized experiences. For example, a restaurant may survey customers to understand their preferences and use this data to customize the menu and provide more tailored services.

Advantages of Organizational progress

Organizational progress has numerous advantages that make it beneficial for any company. These include:

  • Increased efficiency and productivity - Progress in an organization can help to reduce waste and increase productivity. This can be achieved by introducing new technologies and processes that streamline current operations, as well as improving the skills and knowledge of employees.
  • Improved customer service - By improving the way an organization works and its processes, customer service can be improved. This could include introducing new technologies to help customers more quickly and easily access information or providing better training to staff on how to deal with customers.
  • Reduced costs - With the implementation of new processes, technologies and training, an organization can reduce its costs and become more competitive. This could include cutting back on materials or energy usage, or reducing the number of employees needed to carry out certain tasks.
  • Improved morale - Implementing organizational progress can result in improved morale among staff, as they feel more involved in the success of the organization and are given more responsibility.
  • Increased profits - Ultimately, organizational progress can result in increased profits for the company, as it is able to cut back on costs and become more efficient.

Limitations of Organizational progress

Organizational progress can be limited by several factors, including:

  • Lack of resources: Organizations may face difficulty in gaining access to the necessary resources such as technology, skilled personnel, and capital to facilitate organizational progress.
  • Poor leadership: Poor leadership can prevent an organization from accomplishing its goals and can create an environment that is not conducive to progress.
  • Ineffective communication: Poor communication between employees, management, and stakeholders can lead to confusion and delays, thus hindering progress.
  • Resistance to change: Some employees may be reluctant to embrace change, which can slow down the progress of the organization.
  • Insufficient training: Without proper training, employees may not be able to adapt to new processes or technologies, thus limiting organizational progress.
  • Poor organizational structure: If an organization does not have a well-defined organizational structure, it can lead to confusion and inefficiency, thus limiting progress.

Other approaches related to Organizational progress

  • The progress of the organization can be considered from a variety of other approaches. These include:
  • Strategic Management: Strategic management involves setting long-term goals and objectives, developing strategies to achieve them, and assessing progress along the way. It helps organizations to identify their strengths, weaknesses, opportunities and threats, and to develop plans to take advantage of the opportunities and address the weaknesses and threats.
  • Organizational Design: Organizational design involves the structure and processes of the organization. It helps to align resources and operations with the goals of the organization. It also helps to ensure that the organization is as efficient and effective as possible.
  • Organizational Culture: Organizational culture is the shared values, beliefs, and norms that guide the behavior of everyone in the organization. It helps to establish a sense of identity and cohesion among employees, and to provide a sense of direction and purpose.
  • Organizational Development: Organizational development focuses on the development of the individual within the organization. It helps to identify and develop the skills, knowledge, and abilities of employees in order to ensure that they have the competencies to be successful in their roles.

In summary, the progress of the organization can be considered from a variety of approaches including strategic management, organizational design, organizational culture, and organizational development. Each of these approaches offers different insights into how the organization can achieve its goals and objectives, and improve its performance.


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References

Author: Krzysztof Wozniak