The establishment and performance of various organizations have crucial relationship with the existing organizational culture. The performance of the organization is extremely crucial because it enhances realization of organizational realization of the goals and missions. However, the existence of some organizational culture may hinder the realization of the organizational culture and this call for the changes in the organizational culture. The decision to change to the existing culture was raised by the stakeholders because they experienced significant decline in their values and this mandate was given to the management of the organization. In order to enhance a change in the culture of the organization, crucial measures that necessitated change in the conduction of events, communication strategy, developmental aspects and timely completion of duties was enhanced. Over the period, the crucial of aim of establishing the organization is to enhance realization of the goals and objectives that constitute stakeholder welfare maximization and the establishment of social responsibility (Rubinstein, 1998). These attributes have been identified as the leading attributes governing the introduction and the performance of the organization. Upon establishment of these incentives, the leading aspect that enhances realization of this depiction is the consideration of organizational culture. Organization culture is crucial in determining performance of the organization because it has both negative and positive impacts on the establishment of organizational behavior. However, the case of company analysis and review, the attributes of culture had adverse effects on the behavior therefore it resulted in the reduction of performance (Simon, 1957). In this regard, the aspects of negative influence on the behavior necessitated the management and the stakeholder to identify attributes of changing the existing organizational culture. Upon change of the organizational culture, the new measures introduced in the company encourage cooperation and personal development thereby resulting in the increase in the performance of the company. In this regard, change in the organizational culture enhances realization of the goals and objectives if the organization.
Over the period, the consideration of managing organization has proven to be extremely crucial and the usage of theories and policies has been enhanced to aid the managers in the aspect of decision making and development of the objectives and goals. One of the theories that have been crucial in enhancing performance of the system is the usage of bounded rationality theory. Analysis of bounded rationality shows that it corresponds with the idea that decision making in an organization and the rationality of the individuals is limited by the amount of information they have, the amount of time they have n making the decisions and the cognitive limitation of their minds (Simon, 1990). This shows that the managers and other stakeholders may be involved with the attribute of making decisions that may not be adequately appropriate for the organization but are in fact rational according to their incentives. In economics, the concept of rationality is commonly used to refer to the aspects and attributes of consumers and individuals maximizing their own returns. Personal gain is the motive and each of the workers in an organization seeks to maximize their own personal gains. Human behavior in the organization also has the attribute if reflecting the attributes of rationality where the member of the organization is engaged in the practices that are aimed at enhancing their own benefits rather than the benefits of the organization. Such practices are detrimental because they result in the failure of the organization to satisfy the missions and objectives of the organizations. Certainly, the aspect of bounded rationality is one of the crucial measures of enhancing organizational performance during the cases of disparities because it aims at restoring rationality in the management of the organization through the aspects of decision making. Further depiction of bounded rationality is shown by the consideration that decision makers are faced with the challenge of insufficient ability and resources to use when arriving at optimal decisions (Simon, 1991). Therefore, they apply rationality after considering the simplification of the choices available. In this regard, the decision maker is presented as a satisfier seeking to enforce satisfactory solution rather than optimal solution.
In the recent past, the studies have described human beings as rational entities whose behaviors can be approximated through the use of rational choice theory. The statistical evidence have pointed out that people are rational and various groups of people behave according to the rational choice theory that seeks to maximize individual preferences this finding is crucial in explaining the origin of the organizational culture that is associated with the consideration of negative organizational culture and this leads to the development of the crucial impacts of development and the consideration of this attribute is crucial in restoring the performance and establishment of organizational culture. According to this finding, the change in the organizational culture is crucial as it helps in highlights adoption of the optimal decision in the organization that helps in enhancing performance of the organization and further helps in increasing the output of the employees. Over the period, research analysis has shown that the attributes of rationality are critically absent in the consideration of management because majority of the managers and stakeholders have demonstrated partial understanding of the bounded theory because they have developed the usage of the emotions in selecting the ideal choices and options for the organization (Gigerenzer, Gerd; Selten, Reinhard, 2002). This aspect of partiality in the demonstration and usage of bounded rationality is detrimental for the organization because it has the attribute of failing to enhance the full depiction of the bounded rationality theoretical requirements. Optimization of the organizational performance is the role of the manager as and the stakeholders and this call for the enactment of ideal policies towards realizing this incentive. The consideration of adopting this consideration is beneficial for the organization because it has the aspect of enhancing optimum performance margin. Therefore, the consideration of changing the organization culture proved to be beneficial for the organization because it considered the attribute of adopting the optimum strategies proposed by the stakeholders and the managers of the organization. This establishment has proven to be extremely beneficial in enhancing the performance and output of the individuals by a significant margin (Kahneman, 2003). The development of the organizational behavior is largely influenced by the correspondence of the organizational culture. Furthermore, the culture is influenced by the dominance of personal preferences and rationality medium of the employees and this consideration is crucial because it enhances the attribute of changing the reigning preferences of the employees. Even though the mangers and the stakeholders may have inadequate information and the capacity to make informed opinion, they use the attributes of optimal decision making that captures the essence of bounded rationality to enhance changes in the organization.
The realization of organization performance is extremely crucial because it enhances the attribute of realization of goals and the objectives of the organization. Certainly, organizational culture is one of the leading contributors of the development of organizational performance because it leads to the changes in organizational behavior. Organizational culture captures on the diverse perspectives that lead to corresponding attributes of development and changing the aspects of culture in the organization can be a daunting task for the leadership of the organization. Even though organizational is significantly difficult to change, these are measure that can employ to enhance organizational cultural change.
According to my provisions and my humble opinion, the aspects of strategic management should be employed by the management and the leadership of the organization because they have the role of enhancing significant development of the company. Strategic leadership is crucial because it enhances development the organization through the consideration of the factors that are crucial in enhancing realization of the goals and objectives. The provisions of strategic management have been essential in transforming significant number of organization because it provides leadership and direction for growth and sustenance of the organization (Tsang, 2008). The advents of strategic leadership are extremely beneficial because they enhance development of leadership skills within the organization and also enhance the aspect of identifying the leaders in the organization from the pool of employees. This consideration’s ideal because it has the attribute of developing given level of responsibility in the organization where each and every employee will ensure ideal policies are enacted to overcome the attributes of poor organizational culture. The development of culture in the organization may have the attribute of derailing the performance of the organization but the establishment of the strategic management and leadership will ensure that only crucial attributes of development and factors that enhances the realization of organizational goals are adopted by the organization. Certainly, the aspect of strategic management and strategic leadership will ensure the introduction of new incentives and approaches in the organization and the concern for these new developments will be geared towards the development of considerable incentives. Some of the considerations of strategic management include the following
- Identifying the primary role of the chief strategist
- Ascertaining the job and the role of the leader in the definition of the strategies
- What attributes of the team are considered
- When is the strategy making finished?
In view of these developments, the establishment of the strategies adopted by the above considerations will ensure adequate change sin the attributes of organization culture because the cultures adopted will enhance realization of increased performance. This is contrast with the aspects of bounded rationality where the managers are charged with the responsibility of making rational and optimal decisions. The making of rational decision may not have an impact on the performance as opposed to the contributions of strategic leadership that has significant amount of impact in the establishment of self awareness, self control, compassion, motivation, have a wider perspective and it has the attributes of articulacy. In view of the above depictions, the aspects of strategic leadership is advised because it inspires and motivates the employees to work harder towards the realization of organizational goals while bounded rationality applies the principles of the management optimum decision making to change the attributes of the organization. Finally, the principal of bounded rationality has higher chances of failure because it is characterized by significant disparities.
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