Organizational Behavior in a Competitive Term Paper

Pages: 7 (2239 words)  ·  Bibliography Sources: ≈ 7  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management

SAMPLE EXCERPT . . .
In fact, there are companies that put HSE issues ahead of business and even profits. These companies consistently strive to improve the image of legitimacy among shareholders, public and the government by setting and implementing very high HSE standards.

They consciously invest resources and manpower to achieve these high standards and look for ways and means to improve the standards and practices, although this may not result in tangible profits. Shell and British Petroleum have very comprehensive HSE policies, rules and requirements, which has to be complied not only by employees but also by suppliers, contractors and service providers. Since the petroleum business is globally very competitive and highly regulated by governments for safety and environmental protection, other oil companies, whether medium or small, are adopting similar approaches to attain and enhance legitimacy. It is common to find even small companies in this line of business, voicing concern for HSE issues to be in tune with the legitimacy expectations of customers and stakeholders.

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Another example is the case of shipping companies, especially those that operate ships that carry dangerous goods such as chemicals and petroleum products to many parts of the world. In this business, the stakes in legitimacy are high, as there is high risk of damage to the ships, cargo and the environment including marine life and ecological balance. Competition in shipping is very intense and leading companies attempt to impress and retain customers by displaying concern for HSE and also safety of the ship. For instance, shipping companies may follow very stringent standards for design and construction and rigorous inspection procedure of ships. Naturally, other companies follow the innovative practices of successful companies, to attain similar levels of legitimacy and hence attract more business.

Term Paper on Organizational Behavior in a Competitive Assignment

The examples discussed above, viz., petroleum and shipping companies are typical examples of organizations affected by the institutional environment. As a matter of fact, there is interference of all the three types of institutional factors. Oil and shipping companies are risk-intensive and hence come under the tight control of governmental regulations (coercive pressure). The complex nature of technology involved in the petroleum refining and shipping operations necessitates the involvement and contribution of professionals and experts from various fields, regulatory bodies and related networks (Normative pressures). There is very high level of competition in these businesses and the business environment is uncertain due to demand-supply dynamics, price fluctuations, political and economic variables and changing government policies.

In the never-ending quest for legitimacy in the eyes of stakeholders and other interested parties, organizations tend to become similar over a period of time. The probability of such a phenomenon is high in the present, dynamic and profit-driven business environment. In the wake of globalization and increasing liberalization of trade and commerce, organizations are forced to compete hard in the market place, where customer has many alternatives and customer loyalty is no more taken for granted. Stakeholders play a major role in driving organizational performance by constantly monitoring performance, profitability and decide on major future decisions.

Under these circumstances, organizations are compelled to seek legitimacy, irrespective of whether it provides enough value or not. The downside of it is that the formal structures of legitimacy may impair efficiency and competitiveness, thus adversely affecting organizational performance. Understanding institutional perspectives and pressures will enable organizations to identify factors that promote and hinder the use of knowledge for improving performance. With this approach, organization can aim to achieve a level of knowledge management that will enable its manager to devise and implement innovative strategies for performance and success.

References

Baum, J.A and Oliver C 'Towards an institutional ecology of organizational founding', Academy of Management Journal, (1996) 39:1378-1427

Carroll, G and Hannan, M 'Density dependence in the evolution of populations of newspaper organizations', American Sociological Review (1989) (54):524-541

DiMaggio. P.J and Powell, W.W 'The iron cage revisited: institutional isomorphism and collective rationality in organizational fields', American Sociological Review (1983) (48):147-160

Kloot, L 'Organizational learning and management control systems: responding to environmental change', Management Accounting Research (1997) (8) 47-73

Mouritsen, J, Larsen H.T and Bukh P.N.D 'Intellectual capital and the capable firm: narrating, visualising and numbering for managing knowledge', Accounting Organizations and Society 26 (7/8) (2001) 735-762

Oliver, C 'Strategic responses to institutional processes', Academy of… [END OF PREVIEW] . . . READ MORE

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