ORGANISATIONAL DYNAMICS AND ORGANISATIONAL SUCCESS

Organisational Dynamics towards Organisational Success

Organisational Dynamics towards Organisational Success

Introduction

An organisation is defined as a group of two or more individuals who work together to accomplish something that typically cannot be accomplished alone. Organizational Dynamics is described as how people function together to accomplish a task. The level of operational success is said to be determined by the behavioral nature of organizations individuals' roles, interpersonal relations, and group dynamics, and how they all react when brought together (Dvir 2002, pp 735-744). There has long been a debate pertaining to organizational culture versus climate, and their impact on organizational success.

Aim of the study

The challenge for today's organisations is not only to get the organisational dynamics in alignment with the business objectives, but to continuously improve itself so that remains successful. This paper compares and contrasts both organisational culture and climate through existing research and theoretical foundations. The examination of these theoretical underpinnings concludes that power and politics can influence each and there are relevant steps for changing culture and climate via leadership.

Objectives

Today's businesses face perhaps some of the most difficult challenges with regard to social responsibility, economic fluctuation, government regulation, and global competition. The main focus of this paper is to critically evaluate how organisational dynamics within the specified organisation are contributing to organisational success. The organisation that is being referred to in this essay is American owned generic Pharmaceutical Company. I work for the European HQ and policies & processes have been greatly influenced by US since a merger in 2007. The relevant literature will be researched to explain the key issues and focal points of this essay.

Key Issues

The key issues that will be discussed are the:

1. Factors Contributing to Organisational Success

2. The impact of Organisational Structure or Culture on business objectives.

3. Organisational Dynamic in reference to Power and politics in organisation and its impact on business objectives.

Factors Contributing to Organisational Success

The KPI

In large and complex heterogeneous organizations the sheer scale of the task makes it extremely difficult to view the overall strategy and check its integrity, let alone cascade it through the organization. Take for example the development of Key Performance Indicators (KPIs) measures which support the achievement of specific objectives derived from a strategy (Mintzberg 2005, pp 56-178). This stage of strategy development is a demanding and often contentious process. Managers from different geographies, product lines and functional areas can have very different views on what makes an organization 'tick' and may disagree even more on the performance measures that should be monitored, particularly where these affect remuneration policy.

Often, an organization has too many performance indicators and simply achieving functional and organizational alignment of KPIs (Key Performance Indicators) can seem like a Herculean task. Old KPIs can often go unchallenged while at the same time new KPIs reflecting, say, social and environmental initiatives need to be developed. Many organizations give too much prominence to internally generated KPIs controlling the controllable rather than looking outwards at threats and opportunities on the ...