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ORGANIZATIONAL BEHAVIOUR PEOPLE NEED ORGANIZATION OR ORGANIZATION NEED PEOPLE SUBMITTED BY MONIKA RAJPUT MBA 1. INTRODUCTION Definitely organization always works for its customers. Profits of any organization are only depending on the no. of customers it have. So you can say that organization needs people (as customers) for its proper growth and sustainability. On the other side question arises that how an organization work? Simple answer! The people working for the organization make it to work.
This group of people is known as workforce. Is it not the two sides of the same coin which is always focuses for the profit, growth and personal requirements whether it is an organization or the people. Without people, organization cannot achieve their goals, and vice versa without organization people cannot fulfill their needs and desires . So both the organization and people are mutually interdependent on each other. Let’s talk one by one. 2. WHY ORGANIZATION NEED PEOPLE
There are two ways in which an organization needs people for its existence 1. As Customers 2. As workforce 1. AS CUSTOMERS With the increased globalization of markets, competition among market players has become more severe. In this competitive market, one of the most important factors is the achievement of customer satisfaction and excellence in service. Although the concept of customer satisfaction in customer oriented management is not new, the relationship between customers and corporations has been changing almost daily.
Customers are becoming the absolute entity for corporations as the final decision makers for business deals and purchases of products. All organizations exist to serve a customer. Customers are real people, not account numbers or enterprise names. Because of this, customer buying decisions are very often made for emotional reasons. It is therefore most important to understand customers, their level of satisfaction, and their opinions of an enterprise, as well as their opinions of its competitors, if the enterprise is to grow and improve its market share.
SWOT analysis can also play a role in understanding customers. Peter Drucker, the highly regarded management scholar and writer, stated, “The only valid definition of business purpose is to create a customer. ” Successful organizations of the future will be those that can provide goods and services to the customers who want it, where they want it, and in the quantity and at the price they want it, thereby delighting rather than merely satisfying customers.
Customer delight will lead to loyalty, which is one of the critical indicators used to measure the success of a marketing strategy. Services cannot, however, be performed without some form of relationship between the producer and the consumer and cannot be stored and retained for later use in the way typical of many tangible goods. Business corporations make efforts to create and provide their customers with higher value added, which consists of elements such as lower prices, additional benefits, and uniqueness in services.
With rapid advances in information and communications technology, corporations can take advantage of the emerging IT systems to create infrastructure within the organization to improve responsiveness to customer needs and to track those needs, thereby improving customer satisfaction significantly. Top management should be aware of how to tap the power of IT to enhance customer services, resulting in better service quality and streamlining of processes. Here is an example where you can find that why customers are important for the existence of a company or organization
EXAMPLE 1: Auto insurance companies require information about people who live with you Are car insurers allowed to require information about the people who live with you for your auto insurance policy? The very idea of an auto insurance company demanding such information from you may seem offensive. After all, what business is it of theirs, who lives in your house—particularly if you are the only person driving the insured car? Insurance companies must consider a variety of factors before determining the final price of your auto insurance policy.
Remember that the insurance provider is not only insuring the price of the car, but also insuring the welfare and wellbeing of each passenger involved in a collision The insurance company will insist that anyone who lives in the same house, and who frequently or irregularly operates the same vehicle as an insured driver, must be accounted for on the policy and must take accountability as a second driver. Therefore, if a child becomes of legal age, then the insurance company will usually insist that he or she is officially added to the policy, unless they have their own separate policy.
Does the insurance company have the right to ask about other drivers in your home? Definitely. The insurance company is trying to decide if they want to invest in your driving safety. Also bear in mind that the National Highway Traffic Safety Administration (NHTSA) requires insurance companies to ask for this information, as this shows the company to be a legitimate and licensed insurance provider. Since the insurance company is required to ask this question, they must be given an answer pertaining to all members of the immediate family, and their driving history.
This information will help the company to assign a proper auto insurance rating, and will ultimately decide the amount of risk involved. Always answer this question truthfully. Though nobody enjoys invasive questioning, when it comes to insurance policies, these questions must be answered. After all, you as a primary motorist want to disclose any possible scenarios to the insurance company well in advance of a contract being signed. Whenever a surprise scenario occurs (something not listed on the policy) then it is usually not covered.
Not truthfully answering questions is tantamount to misrepresentation. This will result in a denial of all claims and a cancellation of the policy. So you may easily conclude that why organization need people as customers. Let’s take one more example The marketing concept and philosophy is one of the simplest ideas in marketing, and at the same time, it is also one of the most important marketing philosophies. At its very core are the customer and his or her satisfaction.
The marketing concept and philosophy states that the organization should strive to satisfy its customers’ wants and needs while meeting the organization’s goals. In simple terms, “the customer is king”. The implication of the marketing concept is very important for management. It is not something that the marketing department administers, nor is it the sole domain of the marketing department. Rather, it is adopted by the entire organization. From top management to the lowest levels and across all departments of the organization, it is a philosophy or way of doing business.
The customers’ needs, wants, and satisfaction should always be foremost in every manager and employees’ mind. Wal-Mart’s motto of “satisfaction guaranteed” is an example of the marketing concept. Whether the Wal-Mart employee is an accountant or a cashier, the customer is always first. EXAMPLE 2: Selling philosophy of ford motor company The Ford Motor Company is also a good example of the selling philosophy and why this philosophy does not work in many instances. Ford produced and sold the Model T for many years. During its production, the automobile market attracted more competition.
Not only did the competition begin to offer cars in other colors, the styling of the competition was viewed as modern and the Model T became considered as old-fashioned. Henry Ford’s sons were aware of the changes in the automobile market and tried to convince their father to adapt. However, Henry Ford was sure that his standardized low-price automobile was what the public needed. Consequently, Ford turned to marketing techniques to sell the Model T. It continued to sell, but its market share began to drop. Eventually, even Henry Ford had to recognize consumer desires and introduce a new model.
The selling philosophy assumes that a well-trained and motivated sales force can sell any product. However, more companies began to realize that it is easier to sell a product that the customer wants, than to sell a product the customer does not want. When many companies began to realize this fact, the selling era gave way to the marketing era of the marketing concept and philosophy. 2. AS WORKFORCE An organization is a planned coordination of a number of people and their activities for the achievement of some specific goals through division of labor and hierarchy of authority.
The organization is divided into distinct departments like marketing, production, finance, and personnel and all the department need people who are master in their fields and are able to achieve organization goals and objectives. Employees or workers are the most essential factors of business. It is seen that the main objective of almost all the organization is profit maximization. So in order to attain maximum profit and wealth, organization needs people with creative and innovative ideas.
During stiff competition or depression in the market, organization need to rely on the creativity of the people or employee at all level within the organization not just management, but also marketing and research and development team. In today’s competitive world everyone is more specific about total quality management. So for achieving total quality management organization need total quality people with creative mind. When the organization is consist of collective minds, team effort, and then the goals of the business will be achieved easily.
As companies continue to face challenges to succeeding in a globally integrated world, they look to the workforce to help differentiate themselves from their competition. To do so, they must find ways of identifying, developing and connecting talent and expertise from around the globe. Based on our research and experience, we see that there are seven important capabilities that organizations need to have to effectively build a global workforce. In concert, these capabilities can help organizations increase productivity, improve responsiveness and develop resiliency to shifts in the marketplace.
Overall, the organization and its various groups should be organized in the configuration that reaches business goals in the most effective and efficient fashion. If the organization has been conducting strategic planning and produced new goals, these goals may require the organization to reorganize. For example, if the business wants to expand market share in a certain region, then the organization may need new office in that region, more sales people and hence more workforce . The spotlight is once again being thrust upon the workforce.
Major business publications and conferences are now placing issues such as talent management and employee engagement at the forefront of the corporate agenda. We believe this attention is long overdue. However, we do not believe that this focus on employees is merely another on the long list of corporate trends with a predictable shelf life. Instead, we see fundamental shifts in the way that organizations will operate in the future. These changes will require organizations to think about their employees, and how they contribute to business results, in new and different ways.
EXAMPLE 3: Hiring YOUNG PROFESSIONALS (Advertising, Screening and Selecting) Now there are many companies like Infosys, TCS, HCL, Wipro Etc are taking interest in campus placement derive for fresh ,young professional to meet their business requirements. They undergo a no. of steps for this requirement whether they spend a lot of money as well as time over it or not. It includes 1. Advertise the position 2. Current employees should be able to apply for the job. 3. Screen resumes 4. Pre qualifying criteria 5. Interview candidates 6. Select the candidate . Offer letter 8. Job Training This makes an overhead for the company but this is the prime requirement which they have to fulfill. Comparison between hiring an experience or a young professional. As a business owner you have complete control over who you hire to work for your company. Hiring seasoned employees with experience can be a good idea but don’t rule out the option of hiring young talent. What they lack in experience they can make up in innovative new ideas that fit the current day market better than your seasoned professional.
If you decide to go with an employee who has been around the block for a while you will be gaining all of their experience and in some cases, their contacts. This is all beneficial to you and your company but you also need bright ideas and ways to relate to you market. This may be something your older employees will struggle with. Having a good mix of young and older could be the perfect mix for a successful company. The first thing you need to determine is your target audience’s demographic. If you are aiming towards reaching the older generation your need for younger employees may not be necessary.
But, if you plan on targeting the up and coming generation you should really consider hiring a work force that can relate to audience. Their ideas, thoughts, and way of thinking will be very detrimental to your business success. Besides hiring a younger work force you should treat and pay as if they were the force behind your business, because after all you are only as good as your employees. Young working professionals respond well to fast results and positive environments. If you can create this in your work environment you should have a motivated, loyal, and strong work force driving your company to prosper.
Example 4: Vodafone and Tata Indicom Hire as per region Consider an example of two telecom industry, Vodafone and Tata Indicom. They are recently started their business in north eastern states . For this they started setting up towers all over the north eastern states and also established their customer service centre . So they need employees or people to run their business successfully. They started recruiting many people in their customer care department from north eastern states only. Because to run the business successfully it is essential that the employee should have ome regional background and should know regional language so that they can understand customer’s problem and solve the problem more effectively. In the end, you need to hire a work force that understands your target audience and will keep coming up with new ideas to improve the business. Treat them well and they will treat you and your business as if it was their own. 3. WHY PEOPLE NEED ORGANIZATION People need organization for different reasons. And the reasons may be for personal benefits, for sustainability of life, for services or any other reason. Broadly we can classify it in two groups, that why people need organization 1. or services, goods and day to day requirements 2. for job to earn money as salary and increase standard of living So we can summaries some of the areas where people need organization one by one. 3. 1 For services, goods and day to day requirements Nowadays every area has organizations and groups. A group might be formed by small or large number of people but has a common interest or goal as an example group of manufacturing people, group of labor group of religion, group of providing services like health care, education etc. It is impossible to man to stay alone, group are part of human life.
Human use many organization and groups knowingly and unknowingly. It helps people to spend their life with someone companion and share thoughts, knowledge and experience. Though some people like to stay alone because of their scare of dominant people and their discouragement but they are still belonging to some groups knowingly and unknowingly; they don’t have other choice. During the development of our society, we could not survive if we would not cooperate with each other. When people have cooperated to others, they created a lot of groups, which have led people to dominate in the earth.
Organizations are very crucial to a lot of people, because they can get many advantages from them, such as safety, sharing knowledge, reducing stress, health care etc. To begin with, when people take part a group, this group can bring them safety. In the first time of human history, the first people had to face with a lot of harms from environment, such as wild animals or extreme climate. Then they known that when they lived together and created group of people, they could strengthen their power to fight back wild animals, so all members in group were protected.
Nowadays, although people do not have to face usually with wild animals, they still need safety from groups when they go to travel, or discover new remote areas. In this case, it will be dangerous if people go alone; therefore, they need organizations to protect themselves. In addition, groups help people to enhance their knowledge. A man cannot develop his knowledge by doing individually; as a result, people need groups to talk and share their experiences to others. There are many kinds of group which help people to improve their knowledge.
Schools, for example, are very helpful group to people, because in there, people learn a lot of knowledge which are developed and summarized from ancient time up to now. Finally, when people get stress out or doubt about their believe, they can get helps from organizations. There are many groups, especially religious organization may help us to reduce stress and get balance in our lives. This is family of people who have the similar belief, so they will help members in their groups to overcome their obstacles by telling them how to respond and act.
For day to day survival they need food, shelter etc. For this they need organizations which provide them these. So people need these organizations as customers for their needs. In brief, what would happen if people lived individually? Organizations are very important to our society, because organizations provide us safety, improve our understanding, reduce stress and most important satisfy our daily needs. EXAMPLE5: Shopping Malls for Purchasing Example which supports the fact people need organization is the opening of any shopping mall.
Now a day shopping malls are most common, we can see shopping malls even in small cities. So shopping malls need many people for running the business and people also need organization for satisfying their needs. Examples are Reliance Mart which was opened recently 4 months ago in Crown Interior in Faridabad, Mega mart opened recently in Mathura road. They need people in various departments such as retailing, finance, personnel etc so that they can run their business properly. Vice versa people also need these malls or organization for purchasing their day to day needs
EXAMPLE 6: Microfinance: poor people need financial services “Microfinance is the supply of loans, savings, and other basic financial services to the poor. ” A microfinance institution (MFI) is an organization that provides microfinance services, ranging from small non-profit organizations to large commercial banks. An MFI can be broadly defined as any organization—credit union, down-scaled commercial bank, financial NGO, or credit cooperative—that provides financial services for the poor. Grameen Bank in Bangladesh was formed out of a project providing small loans to women in the village of Jobra.
Bancosol, a commercial bank in Bolivia, is also a bank which provides microfinance services for the poor of Bolivia. However, the majority of formal banks do not provide microfinance products as microfinance is an expensive enterprise – you can make a lot more money on a large loan than a small loan, and you won’t make much money holding savings accounts with very little funds in them. Banks can make more money if they only provide financial services to those who already have money. 3. 2 for job to earn money as salary and increase standard of living People need organization for earning money as salary and to increase standard of living.
People want beings, they always looking for a comfortable life, a sense of accomplishment, a world of peace and beauty, security, self respect and social recognition. So to fulfill these desires and wants, people need a platform and thus the organization gives the platform. It is seen from Maslow’s law of hierarchy needs, that physiological need is the first need . It is the basic powerful and obvious of all human needs. This need is the need for physical survival which includes needs for fooding, clothing and shelter. People need money to fulfill these basic needs and thus they are getting money from organization by doing job.
When the physiological needs are fulfilled, people are then looking for safety need which they are getting from organization as job security, salary increment, safe working condition, Pension scheme, group insurance and provident fund. People are social being; group membership becomes a dominant goal for individual. Being loved and accepted by others is instrumental to healthy feelings of worth. Organization is the place where people can meet their social needs by working in a team, by arising professional friendship, union etc . People always seek for social respect and esteem from others.
In an organization people gets the full freedom of fulfilling these needs by doing challenging work assignments or projects, by taking major decisions which is profitable to organization and thus gain prestige, appreciation, recognition in the society. The foremost need which Maslow’s described is the need of self actualization, which is also possible to fulfill while working in an organization. Every person has different reasons for working. The reasons for working are as individual as the person. But, we all work because we obtain something that we need from work.
The something we obtain from work impacts our morale and motivation and the quality of our lives. Here is the most recent thinking about what people want from work. Work IS About the Money Some people work for love; others work for personal fulfillment. Others like to accomplish goals and feel as if they are contributing to something larger than themselves, something important. Some people have personal missions they accomplish through meaningful work. Others truly love what they do or the clients they serve. Some like the camaraderie and interaction with customers and coworkers. Other people like to fill their time with activity.
Some workers like change, challenge, and diverse problems to solve. Whatever your personal reasons for working, the bottom line, however, is that almost everyone works for money. Whatever you call it: compensation, salary, bonuses, benefits or remuneration, money pays the bills. Money provides housing, gives children clothing and food, sends teens to college, and allows leisure activities, and eventually, retirement. To underplay the importance of money and benefits to people who work is a mistake. Fair benefits and pay is the cornerstone of a successful company that recruits and retains committed workers.
If you provide a living wage for your employees, you can then work on motivational issues. Without the fair, living wage, however, you risk losing your best people to a better-paying employer. EXAMPLE 7: Making Money Online From time to time we’ve talked about how to make money online. And the fact is that anybody can earn money with an online business. I know many folks, for example, who not only make money blogging, but make enough to quit their regular jobs. So today I thought we’d look at 5 real-life examples of sites started by individuals (not huge companies) that make good money online.
Each site is very different from the others, and how they make money differs, too. But that’s what is so exciting about the online world. Blogussion is a blog about blogging started by Alex Frais, a 16 year old high school student. He was 14 when he started the site, and we interviewed Alex about one year ago. Alex designed an incredible website at Blogussion, and he earns money online in several ways. Most notably, he designed a WordPress theme that he sells for $44. 95. While creating your own product to sell online is just one approach to making money, it can be extremely profitable.
Alex’s theme is designed around another Word Press theme called Thesis, which is what Dough Roller runs on. Thesis is itself another example of how to make money online, but it would take far more coding experience than most of us have. So we can say that here people can earn money using these kind of online jobs. Here prime motive is just to earn money. Work for Social recognisation, goals fulfillment and reputation EXAMPLE 8: People prefer TCS, Infosys, Wipro as Job preference for better growth. In India we always prefer for higher education like engineering, management, lawyer, doctor.
Because we want to work for social recognition, goals fulfillment, money, reputation, security etc. And to achieve all these we need organization where we can work as employees for our goals in conjuction with the organization goals. Today every jobseeker wants to be a part of some reputated organization. As today Top IT companies like TCS, Infosys, Wipro are the top most priority for Graduates to work for different designations. The reason is Reputation of Company , job profile you get, Remunerations given by the company along with extra benefits, Comfort at work place with modern facilites ,job security etc.
All these factors alays influence the people to become a part of these high class companies. So sometimes brand name of the company influences to work. CONCLUSION Lastly when we analyses every example then we find that organization is for the people for its goals to get fulfill whereas people need organization for their personal needs have to be satisfied. So interdependency exists and one can’t grow without the other. More share options Strategic Hr Topic 8 Bottom of Form