Seven Practices of Successful Organizations

Seven Practice of Successful Organizations

Introduction

Effective management is the key to success for the business of any organization in the current competitive business environment. It is very significant that the business environment is quite competitive and a minor mistake could pose major risks for an organization. It is very important for an organization to incorporate correct management practices in the organization according to the nature of the business of the organization. The core focus of this paper is to identify and discuss the core seven management practices as given by Jeffrey Pfeffer and then comparing these management practices to a business organization for a thorough analysis.

Summary of the Article

The article that has been selected to summarize is “Seven practices of successful organizations” that is taken from the book Organization development and transformation: managing effective change” written by Jeffrey Pfeffer. The core objectives of this article are to present seven most effective practices that are an important component of a successful organization. The following are the practices of a successful organization as presented by the author of this book.

Employment security.

Selective hiring of new personnel.

Self-managed teams and decentralization of decision making as the basic principles of organizational design.

Comparatively high compensation contingent on organizational performance.

Extensive training.

Reduced status distinctions and barriers, including dress, language, office arrangements, and wage differences across levels.

Extensive sharing of financial and performance information throughout the organization (French, 2006).

These are the seven practices that have been presented in this article for a successful organization. It has been significantly discussed in this article that effective management of people could play a vital role in the production of enhanced economic performance of the employees. Management practices are a vast term that is used to describe the expectations of an organization management from its employees. It is very important to understand by the employees of an organization that they should also cooperate with the practices incorporated within the organization for the achievement of the business objectives of the organization. High performance, high commitment and high involvement are the terms to which the management practices are aimed to achieve. An important point studied in this article is that the management practices should be subjected towards the right ways of taking advantage and making profits from the people working within the organization.

The security of employment is very important for the people working in the organization. People who work in an organization are the main asset of an organization and it is very important for an organization to provide security to them from every perspective. It is very important for an organization to secure its employees for making them an integral part of the organization (Da´vila, 2008). On the other hand, it is also observed that selective hiring of new personnel is emphasized in this article because of the emerging trends in the competitive business environment. The hiring process of an organization should be in accordance with the nature of business and the business objectives of the ...