How an organization manages and promotes professional learning, better business practices and strategic management amongst its employees has become vitally important in this day and age. This is where organizational dynamics, the process of consistently enhancing employee performance and strengthening resources, enters the picture.
This concept may be dated but with time, it has evolved and how. The change in organizational dynamics has lots to do with the way we have started to communicate and gain access to information. Inexpensive electronic gadgets such as laptops, faster data connections, increased penetration of the internet, etc. have brought about a revolution in communication.
Centralization of business functions
People form the core of decision-making processes in any organization. In businesses functioning in the service sector, when an unmet need gets addressed by people from non-traditional business families and backgrounds, the aspirations of employees automatically get a boost.
How else do you think huge corporates such as Apple, Microsoft, Facebook, Google and Infosys were able to achieve such as an impressive success ratio?
Easier access to funds and openness about entrepreneurship
From a general point of view, people today embrace the concept of entrepreneurship faster than ever! The government has also made it a point to promote entrepreneurship on a grand scale. No wonder, it has become easy to get loans and start a business! Due to this, the average age of a Chief Executive Officer (CEO) has tumbled down to half of what it used to be earlier. Interesting, right?
The failure to start and scale up has also started to get viewed as a success — considering the huge learning that is involved. Thus, people are encouraged to chase their dreams without having to worry about its success or failure which was the case earlier.
Pros and cons of the changes in organizational dynamics
Pros
1) Communication channels in the organization will become more transparent.
2) Employees will enjoy a progressive work environment
3) Startups will be able to attract talent not just for the pay package but also various stock options such as ESOPs.
Cons
1) Most startups do and will have a short-term focus. Lack of long-term vision will hinder their business success.
2) Cultural and age-related chaos can take place if proper hierarchy of work is not established.
Impact on business growth
With public listing, there is immense pressure on the companies to keep growing on a quarter-to-quarter basis and to safeguard market valuations. This has also resulted in companies to have a short term goal — particularly those who still need funding to grow and want to drive revenue at the earliest.
Keeping up with industry trends and growing sustainably using proven organizational dynamics
One of the best examples of recent times of a company that has managed to combine the youthful vigour of the people in their 20s and early 30s but working with an experience of the older generation is Reliance Jio, the mobile network operator company.
The success of any organization can only be guaranteed by blending the youth with the experienced so that every opportunity is tapped and the organization is able to bank on every challenge that comes its way.
Market disruptions can happen only if you are not able to find newer ways to sort out pending system issues and gaps. What companies require is a stable and experienced workforce who understand the importance of having an alternate plan or Plan B because it is not always that the first game plan would work!
Conclusion — 4 essential elements of todays organizational dynamics
There are four fundamental business activities that form the crux of this concept. They are as follows:
1) Every company must not only structurally define the departments but also ensure the managers have set measurable goals.Special care needs to be taken to ensure that departments don’t become silos of their goals and forget the organisational goals and targets
2) The managers must allocate resources and responsibilities to allow their subordinates to work on achieving their pre-defined roles. The roles and responsibilities should be crafted to inculcate the organisational goals and targets
3) Leadership and leadership communication is an inevitable part of any business and hence, shouldn’t be ignored! Particularly since the mediums of communications are so huge in todays world
4) It is is important to establish systems so that data can be gathered and analysed to enable better decision making and to meet pre-determined goals.
