OBSERVATION
REVIEW
Task one
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.
Task two
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.
Task
three
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.
References
Gigerenzer,
Gerd; Selten, Reinhard (2002). Bounded Rationality. Cambridge: MIT
Press.
Simon, Herbert (1957).
"A Behavioral Model of Rational Choice", in Models of Man, Social and
Rational:
Mathematical Essays on Rational Human Behavior in a Social Setting. New York:
Wiley.
Simon,
Herbert (1990). "A mechanism for social selection and successful
altruism". Science 250
(4988): 1665–8.
Simon,
Herbert (1991). "Bounded Rationality and Organizational Learning". Organization
Science
2 (1): 125–134.
Rubinstein,
Ariel (1998). Modeling bounded rationality. MIT Press.
Tisdell,
Clem (1996). Bounded Rationality and Economic Evolution: A Contribution to
Decision
Making, Economics, and Management.
Cheltenham, UK: Brookfield.
Tsang,
E.P.K. (2008). "Computational intelligence determines effective
rationality".
International Journal on
Automation and Control 5 (1): 63–6.
Kahneman,
Daniel (2003). "Maps of bounded rationality: psychology for behavioral
economics".
The American Economic Review 93
(5): 1449–75.
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