Organisational success is determined by effective leadership Essay

Organisational success is determined by effective leadership - Essay Example Rather, different criteria should be used each time that organisational success need to be evaluated. Of course, there are certain factors, such as leadership, that are always capable of affecting organisational success. The relationship between effective leadership and organisational success is explored in this paper. It is proved that the traditional thoughts on effective leadership its relationship with organisational success should be reviewed. Moreover, it has been made clear that the criteria for characterizing a leadership style as effective can be different across countries with different social ethics and culture. In any case, it is made clear that effective leadership can lead to organisational success, even in the long term. 2. Organisational success and leadership 2.1 Organisational success – characteristics The criteria used for evaluating the success of modern organisations can vary. Usually, organisational success is related to the performance of an organisation in terms of employee satisfaction (Sims 2002, p.144). More specifically, it is believed that a high level of employee satisfaction reflects the ability of the firm to communicate with its stakeholders, a condition that its critical for its success (Sims 2002, p.144). ... ccess using the above criteria can be inaccurate mostly because the potentials of each organisation to achieve high profits or to survive in the market are differentiated according to the years of the firm’s presence in the market (Kirby & Watson 2003, p.46). For example, the criteria of growth would be more valuable when referring to ‘the start-up of the organisation’ (Kirby & Watson 2003, p.46). Profitability also should not be used as a criterion for evaluating organisational success in the early years of the firm’s presence in the market (Kirby & Watson 2003, p.46). Rather, profitability would be a critical criterion for evaluating the success of an organisation that has been, already, well established in the local or the international market (Kirby & Watson 2003, p.46). The use of an integrate framework for evaluating organisational success helps to control the risks related to the particular task. The ‘Malcolm Baldrige National Quality Awardâ₠¬â„¢ (Dinsmore & Cabanis-Brewin 2010, p.130) can be considered as such framework. In fact, the above Award is awarded to organisations that meet a series of criteria in regard of quality (Dinsmore & Cabanis-Brewin 2010, p.130). Leadership is the first of these criteria Dinsmore & Cabanis-Brewin 2010, p.130), a fact that verifies the relationship between leadership and organisational success. Other criteria used in the context of the above framework are: ‘strategic planning, customer focus and workforce’ Dinsmore & Cabanis-Brewin 2010, p.130). From another point of view, Cameron & Spreitzer (2011) note that organisational success should not be related only to the financial performance of each organisation. Rather, the success of organisations in the modern market should be based on their ability to promote

Wal-Mart Business Strategy Analysis Essay Example | Topics and Well Written Essays - 1750 words

Wal-Mart Business Strategy Analysis - Essay Example Wal-Mart draws its competitive edge in the market owning to its efficient supply chain management. The company has effectively used innovations and technology to generate efficiency in supply chain management that has helped it to fuel its highly acclaimed EDLP (Every Day Low Price) strategy. Behind this successful strategy lies technological innovations like cross docking and use of Enterprise Resource Planning to integrate various business units and generate cost effectiveness. The use of real time information system to forecast demand has helped Wal-Mart to ensure that demand forecasting is done on the basis of real time data. Wal-Mart has also integrated its suppliers with the system and also used the famous cross docking system to ensure reduced inventory carrying costs. The supply chain management of the company has helped ensure that there are no overstocking or stock outs. This has reduced the inventory carrying costs by a huge margin. The cost benefits gathered from the inve ntory management of the company has been used to fuel the company’s Every Day Low Price strategy (Bergdahl, 2008, p.20). However in recent times there have been numerous issues with regards to the company’s cost reduction strategy with reports that Wal-Mart sources low quality goods from third world countries so as to have goods with low price. In order to counter the latest bashings regarding the company, Wal-Mart initiated a slew of measures that ranged from measures to improve the social image of the organization.... This has reduced the inventory carrying costs by a huge margin. The cost benefits gathered from the inventory management of the company has been used to fuel the company’s Every Day Low Price strategy (Bergdahl, 2008, p.20). However in recent times there have been numerous issues with regards to the company’s cost reduction strategy with reports that Wal-Mart sources low quality goods from third world countries so as to have goods with low price. In order to counter the latest bashings regarding the company, Wal-Mart initiated a slew of measures that ranged from measures to improve the social image of the organization as well as promoting employee friendly policies that would have helped it to position its image as a socially responsible and employee friendly organization. In response to the bashings in various quarters, Wal-Mart increased the employee insurance cover for the employees and included both permanent as well as contractual staff. It also revamped its reward and incentive policies in order to project the company as an employee friendly organization caring towards the needs of the employees. Wal-Mart also initiated some community development programs such as eliminating wastage and use of recyclable products in order to showcase its environmental sustainability; it also planned means to reduce energy consumption. For the customers, the company initiated a new design for its stores and also came up with attractive offers and new discounts in order to project a customer friendly image of the company. Strict quality control standards were implemented for suppliers including use of eco friendly ways in their business processes. In addition to this Wal-Mart also took up measures in which it would work closely with their suppliers in order to