Nine elements that contribute to organizational health

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A research made by McKinsey&Company, regarding the health of the organizations and the relation it has with the performance of the companies, revealed that there are nine elements that contribute to organizational health. If the company can handle well these elements, than is more likely to obtain earnings twice above the media. The elements are:

1. Accountability
2. Capabilities
3. Coordination and control
4. Culture and climate
5. Direction
6. External orientation
7. Innovation and learning
8. Leadership
9. Motivation

Companies should beat the stress so they can get higher profits

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The stress is often considered to be the diseases of the 21st century. The stress not only affects the life of different individuals, but also affects companies and the economic sector as a whole. Considering this fact, we are going to discuss in the next rows about employees, stress, managers and profitability.

Should managers be worried about the stress in their companies?

Many managers believe that making their employees to work under stress is the best way to make them more productive. But is it really like that? The answer to this question is no. Managers should be worried about the stress in their companies because a stressful work environment can overload the employees, creating unwanted consequences.

How does the stress affect the profitability of the organization?

Stress can have a direct impact on the professional and personal lives of your employees. The stress can make the employees to feel and be ill, to feel tired, to be unproductive, to be irritable, to feel that they are being treated unfair by the company, etc. The effects that stress has over the employees reflect on the performances of the employees and eventually on the performance of the company, to be more precise on the profits of the company. A stressed employee is more likely to underperform, to betray the company or commit fraud.

How can managers beat the stress in their organizations?

A good way to beat the existing stress within the organization is to create a healthy organizational culture. Activities that can help the managers to beat the stress may include discussions with the employees and ex-employees. The Human Resources Department should closely work with the managers on this matter. The leadership skills of the managers can also represent an important resource.

How can an organization transmit its culture to its employees?

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The last decades have transformed the organizational culture into a star of the business sector, in particular the early 2000, when more and more companies have asked themselves how to act to achieve a sustainable growth by having as basis a strong organizational culture. Further on we are going to see what organizational culture is so we can better understand how it can be transmitted to the employees.

 What organizational culture is?

 A simple definition of organizational culture may be that organizational culture is a way of being and acting that is adopted within an organization. Starting from here the organizational culture can be divided in other areas of interest.

 Cultural assimilation

 An old form of making employees to accept and embrace the organizational culture (the O.C.) of the company is by setting rules and standards of behaviors. Another good way of transmitting the O.C. is by counting on the tendency of people to imitate – promoting this way a type of internal benchmarking, in which the employees get to be like the best ones (which also have assimilated the O.C. of the company).

 Values assimilation

 By far the most efficient way of transmitting to the employees the culture of the company is by making them first assimilate the values, but making someone change his values it is not an easy task and it is not always possible. To make someone to change his values you must come up with strong arguments that cannot be rejected and can be embraced by the person.

Employee Integration

 If the employees of a company are familiarized with the way in which things are going into organization, the next step – employee integration – should be easier to accomplish, but only if the relations between employer and employees and between employees are on the right track.

Why should I care about customers? 5 Reasons

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Though for some people the answer to this question might be obvious, some managers find themselves asking this question. So let's try to analyze the customer-company relationship, so we can understand why managers and companies should care (a lot) about customers.

1. No customer – no business.

This is nothing more than the economic law of supply and demand – you can't sell something that nobody wants. “But I have customers”, you might argue. True, but if you don't care about your customer he is going to feel that and will seek the person/company who does and your product will remain without demand.

 2. Customers search for the best situation available.

Even a monopolist must care about customers because even though the customers can take a lot of bad things from a monopolist company, eventually they will turn against the company and they are going to do something to change the status quo. That doesn't necessarily mean that the monopolist who doesn't care is going to be destroyed, but it means that if you don't care enough about customers, they will make you care, by leaving or forcing you to change.

3. Product + Customer = Sales.

If you care about your customers you will know what they want and you will be able to adapt your products to the needs of the customers, and this will have an impact on your sales.

4. Word-of-mouth marketing.

As I already mentioned, the customer feels if you care or not. Whether what he feels from you is a bad or good thing, the chances are that he will share the experience with friends, family and other people. If the experience is good, you may win customers, if it is bad, you may lose some.

 5. Legal actions.

If your lack of care affects the quality of products and services and can harm customers, there can always appear legal actions from the part of the customers and legal actions can bring with themselves lots of other bad things.

The puzzle of a good management

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 It has never been an easy job for managers to lead their companies to success, but nowadays with all the changes in technology, in international economic climate, in customers taste and even in legislation and with the always rising expectations of shareholders and different other stakeholders, their job has become even more difficult. In fact because of all the things that management involves, it's a job often compared with the one of detective, many managers being fans of Sherlock Holmes. 

 What should managers do? How should the companies react in order to remain on top or to get on top? What are the elements that lead companies to success? The answer is simple: it depends… Not the answer you wanted? No problem, follow the blog posts and you will get a step closer to solving a puzzle that gives headaches to a lot of people – the puzzle of a good management. On this blog we are going to approach a lot of key subjects and we are going to discuss about companies that have experienced some brilliant management decisions, but also about companies that have experienced huge failures because of the wrong decisions and actions. 

 The New Management is the management that can solve the puzzle. Is the management that search, finds and puts together all the small pieces that influence companies. Is about controlling every single piece, is about planning every step, innovating and uniting different types of management that fit to the needs of the companies.