Organizational Effectiveness (continued) CH 2Discussion Question I due, and discussed in class (Turn in hard copy): Some people would argue that Google, Netflix, Amazon, Apple, Lincoln Electric, & Wegman’s Groceries are among the “Best Places to Work”, and are also examples of “World Class” (Most Effective) organizations in their various industries. (Some of these companies are on Fortune’s “Best Places to Work” list, but not all of them participate in that survey. http://fortune.com/best-companies/ ) a. Do you agree or disagree that these are “World Class” organizations in their respective industries? WHY? b. What evidence would you cite to support your evaluation? (Be sure to search beyond the Fortune website.) c. If somebody had given you 100 shares of each company’s stock when you graduated from High School (WOW!!!! #**@[email protected]#$$$ CA CHING!) would you be happy with the stock’s performance (gain or loss) today. Look up and report what your net gain would have been on each stock. (Note Wegman’s Groceries is not publically traded, so you cannot answer that question for them.) d. How much would you like to work for each of these companies? Use a 1 – 5 scale where 1 = Would dislike this company & 5 = Would very much like to work for this company. “BEGIN WITH THE END IN MIND” (Steven Covey: Seven Habits…) Outcome variables for Human Resource Systems Chris J. Berger 1/15/2015 HUMAN RESOURCE MANAGEMENT* ORGANIZATION & ENVIRONMENT HR SYSTEM (HR affects INDIVIDUALS…. ALL individuals in Org.) ORGANIZATIONAL EFFECTIVENESS (The Ends we Want to Achieve for all Stakeholders) OUTCOMES EXIST AT MULTIPLE LEVELS* Organization Work Unit Individual and Small Group ORGANIZATIONAL EFFECTIVENESS*all* Survival Adaptation to Change Growth Productivity Profit (And ultimately market value of the firm: Stock Price; IPO; Acquisition; etc.) WHAT IS ORGANIZATIONAL EFFECTIVENESS? Stockholders Stakeholders Survival Organizations Routinely Fail Many Threats to Survival Exist When Survival is Threatened, Coping with the Threat is The Dominant Task Adaptation to Change Consumer Preference Product Technology Production Technology Growth Growth Leads to “Economies of Scale”* Growth Increases Shareholder Value The Opportunity to Grow is Not Always Available Growth Growth Increases the Size of the Organization (Number of Employees)* Problems Solution s Productivity* Multiple Measures of Productivity Appropriate Measures Depend on How the Firm Intends to Compete Operations Strategy (primary and secondary) ORGANIZATIONAL EFFECTIVENESS THE ULTIMATE GOAL OF ALL FUNCTIONAL AREAS OF THE ORGANIZATION WORK UNIT OUTCOMES What is a “Work Unit”? - Depends on the Organization - Depends on our Purpose or Problem Units Within Corporatio.