It was done by the group heart catchers, where I also belong, for our leadership course

1. A Report Paper on
Determinants of Organizational Effectiveness through Leadership Qualities
Company: Scania AB
Leadership
BUS 1202
Submitted by
Tasmin Nahar Nishi B3160B004
Md. Miad Hossain B3160B022
Zulfikar Pasha Dipto B3160B024
Md. Shahiduzzaman Shanto B3160B026
Showkat Ahmed B3160B034
Submitted to
Munshi Muhammad Abdul Kader Jilani
Assistant Professor
Submission Date: 20th November, 2016

2. Declaration
I’m declaring that, this report paper has prepared by me and it was not submitted to any other
organization or institute before. The work is not breach any copyright.
Date & Sign
Tasmin Nahar Nishi ID no.B3160B004 BBA 3(A) Sign:
Md. Miad Hossain ID no.B3160B022 BBA 3(A) Sign:
A.I. Zulfikar Pasha Dipto ID no.B3160B024 BBA 3(A) Sign:
Md. Shahiduzzaman Shanto ID no.B3160B026 BBA 3(A) Sign:
Showkat Ahmed ID no.B3160B034 BBA 3(A) Sign:

3. Acknowledgement
At first, I want to express my gratitude to our honorable faculty Munshi Muhammad Abdul
Kader Jilani who provide a great support and inspiration to make this report. I want to thank him
from the deep of my heart to give me this opportunity.
Date & Sign
Tasmin Nahar Nishi ID no.B3160B004 BBA 3(A) Sign:
Md. Miad Hossain ID no.B3160B022 BBA 3(A) Sign:
A.I. Zulfikar Pasha Dipto ID no.B3160B024 BBA 3(A) Sign:
Md. Shahiduzzaman Shanto ID no.B3160B026 BBA 3(A) Sign:
Showkat Ahmed ID no.B3160B034 BBA 3(A) Sign:

4. Abstract
Organizational effectiveness is the concept of how effective an organization is in achieving the
outcomes the organization intends to produce. Organizational Effectiveness groups in
organizations directly concern themselves with several key areas. They are talent management,
leadership development, organization design and structure, design of measurements and
scorecards, implementation of change and transformation, deploying smart processes and smart
technology to manage the firms' human capital and the formulation of the broader Human
Resources agenda.
This report paper is done by using secondary data which is collected from internet.
The broader idea of organizational effectiveness is applied for non-profit organizations towards
making funding decisions. Foundations and other sources of grants and other types of funds are
interested in organizational effectiveness of those people who seek funds from the foundations.
Foundations always have more requests for funds or funding proposals and treat funding as an
investment using the same care as a venture capitalist would in picking a company in which to
invest.
Finally, from the above discussion, we can declare that Scania can compete and rule the market
because of its good leadership qualities. A big number of employees mean a big number of
satisfied people. If employees are dissatisfied, the company can’t reach to its progress.

5. Table of Content
Title Page no.
Declaration-------------------------------------------------------------------------------------------------i
Acknowledgement----------------------------------------------------------------------------------------ii
Abstract----------------------------------------------------------------------------------------------------iii
Chapter 1: Introduction---------------------------------------------------------------------------------1
Chapter 2: Literature Review--------------------------------------------------------------------------2
Chapter 3: Methodology------------------------------------------------------------------------------3-4
Chapter 4: Discussion----------------------------------------------------------------------------------5-9
Chapter 5: Conclusion----------------------------------------------------------------------------------10
Reference

6. Chapter 1
Introduction
Organizational effectiveness is the concept of how effective an organization is in achieving the
outcomes the organization intends to produce. Organizational Effectiveness groups in
organizations directly concern themselves with several key areas. They are talent management,
leadership development, organization design and structure, design of measurements and
scorecards, implementation of change and transformation, deploying smart processes and smart
technology to manage the firms' human capital and the formulation of the broader Human
Resources agenda. If an organization has practices and programs in the areas above, the OE
group does many or all of the following roles
 Examines alignment between the areas and improves them
 Improves trade-offs between reliability, speed and quality in the above areas
 Strategizes for higher adoption rates in these areas
 Facilitates capability building : structure, process and people
Rapid advances in social sciences and technology aided by clever experimentation and
observation is bringing several truths to the light of society. There are several disciplines of
social sciences that help the OE Practitioner be successful.
Four of them are outlined below
 Decision Making - Ways in which real people make decisions, enabling them real time to
make good decisions, improving quality of decisions by leveraging adjacent disciplines (
for example- Behavioral economics) and replicating relevant experiments, creating new
ones and implementing their results to make organizations effective
 Change & Learning – Ways in which real people learn, change, adopt and align, get
“affected” by dynamics in the environment and leveraging this knowledge to create
effective organizations that are pioneers of change and learning
 Group Effectiveness – Ways in which real people work well together, especially in
bringing new ideas and innovation, working of people to people protocols, impact of
digitization and virtualization in organizations on these protocols
 Self-Organizing & Adaptive Systems– Ways in which self-organizing systems and highly
networked systems work, learning from them and the tangible ways by which they can be
put to play to make organizations more effective

7. Chapter 2
Literature Review
According to Charles A. Motzko, PhD, he found that, Gawande and Wheeler succinctly stated
that, “In government organizations, a stumbling block to provide incentives is the inability to
measure performance carefully”. Gawande and Wheeler’s admonishment may be applied to the
lack of structured NMI organizational effectiveness measures uncovered in this research. This
theme regarding the inability to measure performance accurately is the basis for this research
project.

8. Chapter 3
Methodology
Secondary Data Collection
Data collection is a process through which we collect data. Data can be collected in various
methods like secondary data collection and primary data collection. A primary data collection
refers to collecting data in fields and secondary data collection refers to the data that we collect
from various web pages and books. We use this type of data collection to lessen our work or to
save times.
Data
collected
from various
online media
Elimination
and selection
process
Analyze
process
Implementin
g new ideas
and solutions
Providing
recommenda
tions

9. 3.1 Data collected from various external sources
Our data has been collected from various external sources like webpages (the links are
given in the reference) & also many books written by famous authors (also given in the
reference).
3.2 Elimination and selection process
As we have collected many data from internet webpages and books, many data were
eliminated and some specific legit information or data has been selected.
3.3 Analyze process
After collecting and eliminating and selecting data we have gone through some basic
analysis process whether the founded information was right or wrong.
3.4 Implementing new ideas and solutions
After analyzing these data we have implemented those data for our data finding and have
given some new ideas and solutions.
3.5 Providing recommendations
We have generated some new ideas and solutions and have also provided some
recommendations from the view of our perspective.
In Addition, it is both a qualitative & quantitative research because; we have to use both
numerical & alphabetic data to complete this research.

10. Chapter 4
Result and Discussion
The broader idea of organizational effectiveness is applied for non-profit organizations towards
making funding decisions. Foundations and other sources of grants and other types of funds are
interested in organizational effectiveness of those people who seek funds from the foundations.
Foundations always have more requests for funds or funding proposals and treat funding as an
investment using the same care as a venture capitalist would in picking a company in which to
invest.
According to Richard et al. (2009) organizational effectiveness captures organizational
performance plus the myriad internal performance outcomes normally associated with more
efficient or effective operations and other external measures that relate to considerations that are
broader than those simply associated with economic valuation (either by shareholders, managers,
or customers), such as corporate social responsibility.
However, scholars of nonprofit organizational effectiveness acknowledge that the concept has
multiple dimensions and multiple definitions. For example, while most nonprofit leaders define
organizational effectiveness as 'outcome accountability,' or the extent to which an organization
achieves specified levels of progress toward its own goals, a minority of nonprofit leaders define
effectiveness as 'overhead minimization,' or the minimization of fundraising and administrative
costs. Hence, Organizational effectiveness is typically evaluated within nonprofit organizations
using logic models. Logic models are a management tool widely used in the nonprofit sector in
program evaluation. Logic models are created for specific programs to link specific, measurable
inputs to specific, measurable impacts. Typically, logic models specify how program inputs, such
as money and staff time, produce activities and outputs, such as services delivered, which in turn
lead to impacts, such as improved beneficiary health.
The Top 5 Determinants of Organizational Success are given below:
 A core driving force of creating happiness
 The right people in the right roles
 An effective strategic plan and implementation
 Continuous improvement of leadership and management capabilities
 Continuous improvement of business practices based on customer needs
A core driving force of creating happiness
Aristotle said, “Happiness is the meaning and the purpose of life, the whole aim and end of
human existence.” Stephen Covey said, “Start with the end in mind.” These gentlemen were a
strategic planner’s dream—they went right to 50,000 feet and set the number one priority right
out of the gate.

11. The research from the field of Positive Psychology tells us that after you meet your basic needs
for food and shelter with a little left over for recreation (which only requires about $75,000 a
year), there are 3 main determinants of happiness:
Fulfilling relationships with others. We’re highly social beings. Among other benefits, at a very
basic level this improves our chances of survival. Leaders, think “benefits of teamwork.”
A “flow” experience in which you lose track of time because you’re engaged in the pursuit of
challenging and meaningful goals. Leaders, think “engagement.”
Making a difference in the world and in the lives of others. Leaders, think “empowerment and
autonomy.”
My experience validates Peter Drucker’s observation that an organization and the people in it
need more than a profit motivation alone to create sustained success.
Too often I encounter leaders who snigger at these facts and maintain that they are “touchy feely
fluff.” They do so due to their own fears, insecurities, and insufficient emotional intelligence. If
you’re not valuing enjoyment over achievement and people over money, then you’ll never enjoy
sustained success as an individual or as the leader of an organization.
If you think managing people relationships is tough, try being a loner and a misanthrope for a
while…
The right people in the right roles
Many leaders still don’t pay enough attention to this. If you have a team of “C Players” and you
compete against a team of “A Players” we both know what’s going to happen. By the same token
if you have your Center playing Wide Receiver we both know what’s going to happen. Jim
Collins calls this “having the right people in the right seats on the bus.”
An effective strategic plan and implementation
You’d be surprised at how many leaders are still working from some form of “ad hoc” strategy
that resides mostly in their heads. Others follow the once-a-year SPOTS (Strategic Plan On Top
Shelf) approach. Getting senior leaders to commit to ongoing strategic planning and
implementation can be challenging. Remember, leaders have two basic roles: a) running today’s
business, and b) building tomorrow’s business.
Continuous improvement of leadership and management capabilities
Organizational success is all about leadership, and the bottom line is that an organization’s only
real limitations are the limitations of its leader. This is the Trickle Down Law in action. Also,
how can you have sustained success over time if you don’t have strong leadership and
management bench strength?

12. Are your leaders competent in creating a proactive and ongoing strategic leadership system, or
are they just moving from one crisis to another? For example, are they skilled in leadership and
management competencies such as: strategic thinking and planning, project management, hiring
the right people, emotional intelligence, communication skills, coaching and building talent,
leadership and motivation, succession planning, innovation, change management, performance
management, conflict resolution, financial management, sales and influencing skills, customer
focus, presentation skills, meeting effectiveness, and facilitation skills?
Continuous improvement of business practices based on customer needs
There’s a name for organizations that aren’t customer focused—Chapter 13. Think Kodak. Peter
Drucker said that any organization has two basic functions: a) marketing (creating and then
serving customers), and b) innovation (continuous improvement).
Satisfying your customers’ needs is the lifeblood of your organization. As the world changes,
your customers’ needs change, and so you need to be continuously improving your business
practices to meet these new needs. As Jack Welch said, “If the rate of change outside of an
organization is greater than the rate of change within it, the end is in sight.” Do you have a
strategic leadership system in place to continuously improve your organization? Do your
competitors?
TECHNIQUES
Technique #1: Make creating happiness the core driving force of your organization.
Technique #2: Get the right people in the right roles.
Technique #3: Create an effective strategic plan and implementation.
Technique #4: Continuously improve your organization’s leadership and management
capabilities.
Technique #5: Continuously improve your business practices based on your customers’ needs.
Leadership Qualities
a) Power: First ingredient of leadership that is the potential ability to affect the behavior of
others.
Legitimate: Power, which is gained through organizational hierarchy.
Reward: Reward is one of the best motivational factors which is controlled by the managers.

13. Coercive: This type of power is applied to force compliance via psychological, emotional or
physical threat. It means punishment
Referent: Based on identification or limitation, this power is more abstract than other power.
Expert: This power is derived from specialty or expertise.
b) Fundamental Understanding of people: Motivation can’t be established by theories
rather than practical
c) Ability to inspire followers: Inspiration comes from leaders & it’s not a matter of need
satisfaction.
d) Ability to develop a climate conducive to arousing motivation: Climate or
environment created in the organization by the leader.
Scania strengthens its position in emerging markets through Regional Product Centers located in
six emerging markets, with about 370 employees. These employees work with assembly,
bodywork, and fitting locally-adapted vehicles.
About 19,200 employees work with sales and services globally. The network and mobile service
solutions enable to be close to the customer in order to provide support on site where the
products are used.
Some 860 employees work with financial services, supporting customers in many markets
worldwide by providing finance solutions and vehicle insurance. By offering financing on good
terms together with an efficient claims management service and rapid repairs, with access to
Scania’s entire service network, downtime and lost revenue for customers is minimized.
Company: Scania AB, Volkswagen Group
With 44,000 employees in 100 countries, Scania is
strategically placed within the customers’ operations.
The head office, with 5,600 employees, is located in
Södertälje, Sweden. About 13,200 people work at
production units in seven countries in Europe and
Latin America. The modular product system and a
global interchange of both components and vehicles
create flexibility.

14. Scania becomes one of the biggest Commercial Vehicle Manufacturer because of their effective
leadership. Can we imagine a company where a large amount of people works; have a lot of
problem in leadership qualities?
Considerable resources
This is why Scania invests considerable resources in training programmes within Scania
Academy for the company’s managers. One of these is the course Scania Leadership Advanced
to which leaders across the company are hand-picked. The participants take part in two one-week
modules to hone and develop their leadership skills.
How they build great leaders?
The participants work with individual objectives, both related to their own leadership role
and also to their professional role and operational strategies,” explains Kent Conradson.
“Meanwhile, their managers are actively engaged. Participants are also given assignments to
carry out before, during and after the course.
1. Insights from leadership courses
2. Take an interest in your staff
Scania’s six leadership principles
-Coordinate but work independently, take responsibility
-Work with the details, understand the context
-Act now – think long term
-Build know-how through continuous learning
-Stimulate commitment through involvement
-Dare to try – manage the risk
Scania’s leadership and employee ship principles:
1. Coordinate but work independently – take responsibility
2. Work with details and understand the context
3. Act now – think long-term
4. Build know-how through continuous learning
5. Stimulate commitment through involvement

15. So, we can say that Scania can achieve this employee satisfaction because of their strategy of
maintaining Leadership Qualities.

16. Chapter 5
Conclusion
Finally, from the above discussion, we can declare that Scania can compete and rule the market
because of its good leadership qualities. A big number of employees mean a big number of
satisfied people. If employees are dissatisfied, the company can’t reach to its progress.

17. Reference
https://www.scania.com/group/en/building-great-leaders/
https://www.scania.com/group/en/inspiring-day-about-leadership/
https://www.scania.com/group/en/scania-at-a-glance/