Discussion Post Responses:
Review the 2 discussion posts below and provide a response. When providing feedback, address the following:
- Do you agree or disagree with your peers’ initial posts about the relationships between organizational culture, capabilities, and performance? Explain.
- What is different about their perspectives, and how do you think it will affect the overall performance evaluation of these companies?
Initial Discussion Post Question for reference:
In Module Seven, consider the following statement: “The best-performing companies worry less about performance and more about their organizational capabilities” (Bititci, 2015). Then, review the interview notes memos for Company A and Company B. Then think about organizational performance in relation to organizational capabilities and address the following in your initial post:
- Do you agree with the statement above? Why or why not?
- How does organizational culture affect capability and performance? For example, an active, participative culture is essential for encouraging organizational learning.
- What do you think about the organizational culture and capabilities of Companies A and B and their role in the two companies’ performances?
Post 1 to respond to:
Yes, I do agree with the statement above. I believe that once the organizational capabilities of a company are in order everything else will fall into place. Organizational capabilities include a company’s strategic vision and their processes. Organizational culture can have a positive or negative affect on capability and performance depending on the type of culture. As mentioned in the example, a participative culture may motivate employees to work harder and do their best work. When employees approach work with this type of attitude there is sure to be a positive effect on capabilities and performance.
For Company A it seems like the organizational culture and capabilities are somewhat structured but there are some areas that can be improved. Company A is fine financially, but there are minor upgrades that can be made to improve the flight experience for customers and simplify work for employees. Once these upgrades are made the performance for Company A has the potential to improve largely.
For Company B it seems like there is a lot of changes going on with the organizational culture and capabilities. The company has a new president who the employees don’t seem to trust yet, but that is expected when change occurs. Company B seems to be building towards having a structured organizational culture and capabilities but needs to make sure that the vision for the company is clearly communicated. More communication will build trust between the employees in Company B which will potentially improve their performance.
Post 2 to respond 2:
I do agree with the statement provided. I believe that the organizational capabilities involve having the right plan of action for your business. If this is correct and in order, your business will succeed. Organizational capabilities include collaboration, talent management which binds all the part of the business together (Team). Organizational capabilities go back to your strategic plan and having the right people in the right positions for your company. This also means treating your employees well and keep up with the competitive market. The organizational culture can make or break the company.
Upon reading the notes, my first thought was if the company doesn’t step up with compensation levels for employees, they might lose them and become less competitive in the market. Not keeping up with employee needs will ultimately result in losing your most valuable employees. They will need to have a budget for employee investments! You cannot place limits on your employees and expect them to stay. Without training and development your employees feel stuck at a dead-end job and will leave your business. The HR director gave the impression of burnout; therefore, you will not have a high performing HR team. In my opinion, yes organizational culture has everything to do with performance and capabilities. I also believe there isn’t a clear path on where the company is headed and how they will get there.
I believe Company B does have a vision with the new president. They have created partnerships to increase their customer and employee satisfaction. However, there are many red flags for this company’s organizational structure. There have been a lot of turn over in the last several years. I find that Company B also lacks investment in their employees. It seems to me the leadership may have the best interest of the company in mind, but they do not communicate that to the rest of the organization. Also, with HR being outsourced and aviation not being one of their strengths, lots of issues can be overlooked.
Organizational capabilities are quickly becoming more recognized in successful organizations. “Organizational capabilities emerge when the organization delivers on the combined competencies and abilities of its people. Employees of the organization may be technically literate or demonstrate leadership skills, but the organization as a whole may or may not embody the same strengths. Organizational capabilities enable the organization to turn its technical know-how into the results (Building Organizational Capabilities for Excellence – IspatGuru).
Building Organizational Capabilities for Excellence – IspatGuru. www.ispatguru.com/building-organizational-capabilities-for-excellence/.
Team, MBA Skool. “Organizational Capabilities Definition, Importance, Example & Overview | Human Resources (HR) Dictionary.” MBA Skool-Study.Learn.Share., 17 May 2020, www.mbaskool.com/business-concepts/human-resources-hr-terms/17897-organizational-capabilities.html.