CREATING EFFECTIVE ORGANISATION

Submitted To Prof Renjith Krishnan Department of MBA St Aloysius Institute of Management and Technology

Submitted peter 1016027 1-mba A

Creating Effective Organizations

Why is creating effective Organizations Important?

Whether you are the CEO of a large corporation, leading a group or a small business owner, an objective perspective is not always available. The symptoms of a businesss problems are always apparent. Treating the symptoms can temporarily alleviate the issues, but addressing the cause makes positive change permanent.

What is Organizational Effectiveness?

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Delighting customers Advancing toward your vision Fulfilling your aspirations Making money for you and your investors Developing your employees and their aspirations Making a positive impact on your community

INTRODUCTION
The implication behind the concept of leadership is that there is a combination of personal qualities and skills that to allow some people to obtain from their employees a response that is cohesive, effective and enthusiastic, whereas other people in the same case cannot accomplish such results. Every organisation needs leaders within it, as all of them require the right path for the achieving the goal. The
process of planning, organizing, controlling to determine and accomplish the objectives by the use of people and resources. The process by which managers create, direct, maintain and operate purposive organizations through systematic, coordinated cooperative human effort .It is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated objective Planning is the process of making decisions about future. It is the process of determining enterprise objectives and deciding future courses of actions necessary for their accomplishment. Planning is the process of deciding what is to be done, how it is to be done and by whom. Planning provides direction to enterprise activities. Organizing is concerned with the arrangement of an organizations resources-people, materials, technology and finance in order to achieve enterprise objectives. Organization involves decisions about division of work, allocation of authority and responsibility and the coordination of tasks.Guiding and supervising the activities of subordinates is known as directing. Direction is telling people what to do and seeing that they do it to the best of their ability. People must be directed towards organizational goals.

Staffing is the function of employing suitable persons for the enterprise. An activity where people are recruited, selected, trained developed, motivated and the objective of controlling is that actions contribute to goal accomplishment. Setting stand ards of performance, measuring actual performance, Comparing actual performance against the standard, taking corrective action to ensure goal accomplishment. Compensated for various positions.

1). OVERVIEW OF CREATING EFFECTIVE ORGANISATIONS An effective organization is defined as thinking differently, doing the Right things in the right time and getting to the future first for less. The success of any effective organization requires the co-ordination and close integration between departments, and active contributions of individuals within the company. This implies that any part; whether an individual or a department of the company fails to perform its role, as it should be would considerably reduce the companys effectiveness. Creating effectiveness organization can be defined as being effective, efficient, satisfying, adaptive and developing, and ultimately surviving. To be effective, todays organizations need to strike a generally acceptable balance between organizational and societal goals. Determining effective criteria requires frequent review and updating. It must also adapt to new environmental demands and mature and learn in the intermediate future Creating Effective organizations in the international arena .Organizations, especially those in turbulent environments, tend to relyon people to can their environments, monitor potentially important events, interpret their perceptions, and report them to the appropriate organizational decisions makers. (Banner & Gagn, 1994).Brown argues that the most successful organizations seem to function with little management. The secret to their success lies in the principles of their development.

2). LEADERSHIP Leadership is the process of inspiring and empowering others to Voluntarily commit them to achieving the leaders vision Leadership is an influence process: The ability to motivate others to do something, believe something or act a certain way an effective leader within the organizations must have a vision and the ability to empower employees to carry out their tasks and follow the 2 A Good vision statement invites and requires the total involvement of the organization in carrying the ambition forward into operation through a process of interpretation and refining for example, in AT & T all the company was challenged to understand and make operational the anytime, anywhere statement. According to Drucker (1999), the only definition of a leader is someone who has followers. To gain followers requires influence but doesnt exclude the lack of integrity in achieving this. Indeed, it can be argued that several of the worlds greatest leaders have lacked integrity and have adopted values that would not be shared by many people today On the other hand, the manager needs a fundamental strategy for achieving the vision for the organisation for example, Haagen-Dazs new strategy in Europe, which contained revising job interviews to make them more like theater auditions and creating a new management position called Leadership is crucial at all positions within the organization, from main board to the shop floor. According to there are at least four major variables now known to be involved in leadership: Effective organizations in the international arena The characteristics of the leader. The attitudes, needs, and other personal characteristics of the followers. The characteristics of the organization for instance, its structure, its purpose, and the nature of the task to be performed. The social, economic and political environment. Every leader within the effective organizations must take particular responsibilities. These responsibilities are as follows: Vision: The vision must include well-specified objectives and goals. Managers (leader) have techniques and methods for developing

the vision for instance, budgets, schedules, statement of work, etc. Georgiades and Macdonell claims that vision is about having the picture of the cathedral as we carve the granite (or perhaps plane the pews or even lay the pipes for the central heating). Strategic vision can be so broad that they convey little meaning or guidance to people deep in the organisation Communication: Communicate the vision to everybody within the organisation is crucial because every member of the company needs to known goals and objectives and the path to achieve them. Motivation: Motivation is very important to leadership. Without motivation the teams ability to develop is strictly obstructed. Leaders have to identify factors of motivation within the company so that them satisfy needs such as economic incentives, security, friendships, status, etc. According to Mullins the underlying concept of motivation is some driving force within individuals by which they attempt to achieve a goal in order to fulfil some need or expectation. Direction: Leaders must conserve a constant direction in the search of goals and objectives. The idea is concentrate all the movements and actions of the firm in the right direction. Support: Managers must provide value-added support to employees to assist in accomplishing the project goals and objectives. In addition, managers must do whatever to help employees perform their works effectively and efficiently. Team Building: Team buildings in many manners are an image of the qualities and responsibilities of a leader. If the leaders do not have an effective team, the likelihood of a successful plan decreases. Some people like Lee Iacocca of Chrysler Corporation, Tetsuya Katadaof Komatsu, Herb Kelleher of Southwest Airlines, Christopher Sinclairof PepsiCo influence others so well that they seem to be natural leaders.This usual consideration can be based on characteristics for instance,intelligence, assertiveness and physical attractiveness.Traits Associated with Effective Leadership y Drive

High level of effort;relatively high desire for achievement; high energy; persistence;initiative y Desire to Lead Strong desire to influence and lead others; willingness to take responsibility y Honesty and Integrity Trusting relationships with followers; truthfulness; high consistency between words and actions y Self-confidence Absence of self-doubt; self-assurance that convinces followers of the rightness of the leaders goals and decisions y Intelligence Ability to gather, synthesise, and interpret; large amounts of information; ability to create visions, solve problems, and make good decisions y Job-relevant Knowledge High level of knowledge about the organisation, industry, and technical matters related to the groups activities

3) Creating Effective organisations in the international arena On the other hand, Mullins (1996) argues that leadership style is the wayin which the functions or leadership are carried out, the way in which themanager typically behaves towards members of the group. Fisher (2006)argues that real leaders are not only prepared to reveal their weaknesses,because they know they are not super-human, but to use them to theiradvantage.There are many ranges to leadership and many possible manner ofexplaining leadership style for example, charismatic, participative,dictatorial, unitary, benevolent, abdicatorial, consultative andbureaucratic.The style of leadership can be classified in three items and are as follows:(Based on Mullins, 1996)
The Authoritarian or Autocratic style. Is where the centre of power is with the manager, and all interactions within the company move in the direction of manager.

 The Democratic style. Is where the heart of energy is more with the group as a whole and there is greater interaction within the group. The leadership functions are shared with members of the group and the manager is more part of a team. A Genuine Laissez-faire style. Is where the manager check that members of the group are working well on their own. The manager consciously makes a decision to pass the focus of power to members, to allow them freedom of action and not to interfere; but is readily available if help is needed. According to Mullins (1996, p. 255) the effectiveness of the leader is dependent upon meeting three areas of need within the work group: Task functions involve Achieving the objectives of the work group Defining groups tasks Planning the work Allocation of resources Organisation of duties and responsibilities Controlling quality and checking performance Reviewing progress Team functions involve Maintaining morale and building team spirit The cohesiveness of the group as a working unit Setting standards and maintaining discipline Systems of communications within the group Training the group Appointment of sub-leaders. Individual functions involve Meeting the needs of the individual members of the group Attending to personal problems Giving praise and status Reconciling conflicts between groups needs and needs of the individual Training the individual.

4. EFFECTIVELY MANAGING CULTURALLY According to Hodgetts (2003) a number of specific guidelines for effectively managing culturally diverse groups have been identified. Here are some of the most useful: Team members must be selected for their task-related abilities and not solely based on ethnicity. If the task is routine, homogeneous membership often is preferable; if the task is innovative, multicultural membership typically is best. Team members must recognize and be prepared to deal with their differences. The goal is to facilitate a better understanding of crosscultural differences and generate a higher level of pensamiento & gestin Effective organisations in the international arenaperformance and rapport. In doing so, members need to become aware of their own stereotypes, as well as those of the others, and use this information to better understand the real differences that exist between them. This can then serve as a basis for determining how each individual member can contribute to the overall effectiveness team. Because members of diverse teams tend to have more difficulty agreeing on their purpose and task than members of homogeneous groups, the team leader must help the group to identify and define its overall goal. This goal is most useful when it require members to cooperate and develop mutual respect in carrying out their tasks. Members must have equal power so that everyone can participate in the process: cultural dominance always is counterproductive. As a result, managers of culturally diverse teams distribute power according to each person s ability to contribute to the task, not according to ethnicity. It is important that all members have mutual respect for each other. This often is accomplished by managers choosing of equal ability, making prior accomplishments and task-related skills known to the group, and minimizing early judgments based on ethnic stereotypes.

 Because teams often have difficulty determining what is a good or bad idea or decision, managers must give teams positive feedback on their process and output. This feedback helps members to see themselves as a team, and it teaches them to value and celebrate their diversity, recognize contributions made by the individual members, and trust the collective judgment of the group.

5. CASE STUDIES OF LEADERSHIP IN CREATING EFFECTIVE ORGANISATIONS The following examples of leadership are models of Creating effective organisationthat have leader with many skills such as vision of the future, goodcommunicator and motivator, self-confidence in decision-making, solve problems, and make good decisions and so on.
For komatsu in 1989 worldwide demand for construction equipment was down, competition was increasing, and Komatsus profits were in a steady decline. Tetsuya Katada (Komatsus president) saw the situation and decided that Komatsus managers needed to go out and see the needs and opportunities and operate in a creative and innovative way. In other words, Katada wanted everyone to stop, and concentrate simply on catching up with Caterpillar (Main competitor).At meetings and discussions, Katada challenged managers at severallevels to find ways for the company to double its sales by the mid-1990s.Furthermore, Katada encouraged management at all levels to find newgrowth opportunities through expanding geographically and leveraging competence. Katadas objective was to create an organisation that couldattract and stimulate the best people. In 1979 the chrysler corporation hired Lee Iacocca. chrysler had a huge inventory of low-mileage cars at a time of rising fuel prices, and was faced with bankruptcy. Iacocca appealed to the federal government for aid, gambling that it would not allow chrysler to fail when the national economy was already depressed. Although his request sparked intense debate over the role of government in a market economy, congress in 1980 agreed to guarantee US$1.500.000.000 in loans if the firm could raise another US$2.000.000.000 on its own. Iacocca responded by finding

new sources of credit and by trimming operations, closing plants, and persuading labour unions to accepts layoffs and wages cuts. He then changed the companys emphasis to fuel-efficient models and undertook an aggressive campaign that included personal appearances on television commercials. By 1981 chrysler showed a small profit, and three years later it announced record profits of more than US$2.400.000.000. pepsi co. has benefited from Christopher Sinclairs leadership, which includes the commitment of his followers. In five years, Sinclair tripled the international divisions revenues. Effective organisations in the international arena Sinclair encourages his followers to do more than they thought they could. Moreover, Sinclair talks constantly about change and motivates his work force to perform. Sinclair could be considered a charismatic leader because he believes in going for broke, and he revs up his manager to do the same. His followers are enthusiastic to take up the challenge. southwest airlines has grown from 198 employees in 1971 to 13,000 employees and more than US$2 billion in revenues. southwests success is due to its chief executive Herb Kelleher that has qualities that make a visionary leader effective. As a strong communicator, he articulates his vision of giving customers excellent service by expecting employees to help whenever and wherever they are needed. Moreover, as shown here, he reinforces his vision by pitching in to help. He is able to extent his vision to all employees. According to an executive at Northwest Airlines Herb has somehow managed to get union people to identify personally with his company. volvo trucks has worked on a global strategy for several decades. Beginning in the mid-1970s, the company decided to enter the largest market for trucks, the United States. Over time, the company has struggled to get a significant share of the U.S. market and at the same time integrate operations around the world into a truly global strategy. However, the competitive structure differs significantly between Europe and the United States, and in spite

of heavy investments, the global synergies seem far-fetched. This company illustrates clearly that entry and penetration of a market is a learning process for Volvo, where the initial strategic logic and underlying assumptions have to be changed several times. Teaching Purpose: 1) Examines in detail the problems and issues related to entry strategies and global strategies. 2) Looks specifically at the evolution, however slow, toward global competition in an industry.
6.MODEL OF CEATING EFFECTIVE ORGANISATION

First of all, the model consists of a reflection on the external environment(Political/legal, economic, socio-cultural and technology) by management,which will result in a vision, objectives and strategies which in turn will betranslated into various processes in the different departments (Personnel,accounting and finance, marketing and production). The results will be evaluated and feedback will be given to all relevant stakeholders. Leadership in this model is crucial and is vital at all levels of the companyfor the following reasons: a. Motivation of the employees at all levels within the organisation for instance, motivated to meet their safety needs, recognition, appreciation, incentives, security, safe working conditions, etc. b. The vision of the leader is important because the organisation needs to know the right path for the future, for example, identifying potential markets and customers, and reducing future risks to the company. Moreover, these visions attract and retain good employees for the different areas within the company. c. Every employee within the organisation must have a leader. The role of every employee as leader is doing right things, identify and resolve conflicts, problems that appear in the firm. Moreover, improve methods and techniques that help the organisation.

A Model of creating effective organisations

Operating Environment of the Organization . [Selected domain operation, size, technology, business environment, cultural and socio-political context]

Organisations choice, goals , stratergy, various styles of top management

Effectiveness in acquiring resources, values addition ,selection of performance evaluation criteria,obtaining internal and external support contribution to larger development al goals
contributiontolargerdevelopment al goals

Structure, infrastructure and management System

Assessment of performance and

Supporting processes: Innovation, performance, institution building,etc

effectiveness

7.Creating an Ethical Organizational Culture

The content and strength of a culture influence an organization's ethical climate and the ethical behavior of its members. An organizational culture most likely to shape high ethical standards is one that's high in risk. Tolerance, low to moderate in aggressiveness, and focuses on means as well as outcomes. Managers in such a culture are supported for taking risks and innovating, are discouraged from engaging in unbridled competition, and will pay attention to how goals are achieved as well as to what goals are achieved.

A strong organizational culture will exert more influence on employees than a weak one. If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behavior. Johnson and Johnson, for example, has a strong culture that has long stressed corporate obligations to customers, employees, the community, and shareholders, in that order. When poisoned Tylenol (.a Johnson and Johnson product) was found on store shelves, employees at Johnson and Johnson across the United States independently pulled the product from these stores before management had even issued a statement concerning the tampering. No one had to tell these individuals what was morally right; they knew what Johnson and Johnson would expect them to do. On the other hand, a strong culture that encourages pushing the limits can be a powerful force in shaping unethical behavior.

For instance, Enron's aggressive culture, with unrelenting pressure on executive to rapidly expand earnings, encouraged ethical corner-cutting and eventually contributed to the company's collapse. What can management do to create a more ethical culture? We suggest a combination of the following practices: y Be a visible role model: Employees will look to the behavior of top management as a benchmark for defining appropriate behavior. When senior management is seen as taking the ethical high road, it provides a positive message for all employees. y Communicate ethical expectations: Ethical ambiguities can be minimized by creating and disseminating an organizational code of ethics. It should state the organization's primary values and the ethical rules that employees are expected to follow. y Provide ethical training: Set up seminars, workshops, and similar ethical training programs. Use these training sessions to reinforce the organization's standards of conduct, to clarify what practices are and are not permissible, and to address possible ethical dilemmas. y Visibly reward ethical acts and punish unethical ones: Performance appraisals of managers should include a point-by-point evaluation of how his or her decisions measure up against the organization's code of ethics. Appraisals must include the means taken to achieve goals as well as the ends themselves. People who act ethically should be visibly rewarded for their behavior. Just as importantly, unethical acts should be conspicuously punished. y Provide protective mechanisms: The organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand. This might include creation of ethical counselors, ombudsmen, or ethical officers.

8. Creating a Positive Organizational Culture

It often difficult to separate management facts from lasting changes in management thinking, especially early. Creating a positive culture may sound hopelessly nave or like a Dilbert style conspiracy. The one thing that makes us believe this trend is her to stay is that there are signs that management practice and ob research are converging. A positive organisational culture is defined as a culture that emphasizes building on employees strengths, rewards individuals vitally and growth Building on employee strengths: a lot of ob and management practice, is concerned with how to fix employee problems. Although an positive organisational culture does not ignore problems, it does emphasize showing workers how they can capitalize on their strengths. As management guru peter ducker said, Most Americans do not know what their strengths are. When you ask Rewarding More Than Punishing There is, of course, a time and place for punmore than it punishes, and emphasizes

ishment, but there is also a time and place for rewards. Although most organizations are sufficiency focused on extrinsic rewards like pay and promotions, they often forget about the power of smaller (and cheaper) rewards like praise. Creating a positive organizational culture means that managers "catch employees doingsomething right." Part of creating a positive culture is articulating praise. Many managers withhold praise either because theyre afraid employees will coast, or because they think praise is not valued. Failing to praise can become a "silent killer like escalating blood pressure. Because employees generally don't ask for praise, managers usually don't realize the costs of failing to do it.

Take the example of Elzbieta Gorska-Koiodziejczyk, a plant manager for International Paper's facility in Kwidzyn, Poland. The job environment at the plant is bleak and difficult. Employees work in a windowless basement. Staffing is only roughly one-third of its prior level, while production has tripled. These challenges had done in the previous three managers. So, when Gorska -Kolodziejczyk took over, she knew she had her work cut out for her. Although she had many items on her list of ways to transform the organization, at the top of her list was recognition and praise. She initially found it difficult to give praise to those who weren't used to it, especially men, but she found over time that they valued it, too. "They were like cement at the beginning, she said. "Like cement" Gorska-Koladziejczyk has found that giving praise is often reciprocated. One day a department supervisor pulled her over to tell her she was doing a good job. "This I do remember, yes," she said. Emphasizing Vitality and Growth A positive organizational culture emphasizes not only organizational effectiveness, but individuals' growth as well. No organization will get the best out of employees if the employees see themselves as mere tools or parts of the organization. A positive culture realizes the difference between a job and a career, and shows an interest not only in what the employee does to contribute to organizational effectiveness, but in what the organization does it has have assessed over thousands of organizations, fully one-third feel they are not learning and growing on their job. The figure is even higher in some industries, such as banking, manufacturing, communications, and utilities. Although it may take more creativity to encourage employee growth in some types of industries, it can happen in the fast-paced food service industry. Consider the case of Philippe Lescornez and Didier BrynaertPhilippe Lescornez leads a team of employees at Master foods in Belgium. One of his team members is Didier Brynaert, who works in Luxembourg, nearly 150 miles from Masterfoods's Belgian headquarters. Brynaert was considered a good sales promoter who was meeting expectations. Lescornez decided that Brynaert's job could be made more important if he were seen less as just another sales promoter and more as an expert on the unique features of the Luxembourg market So Lescornez asked Brynaert for information he could share with the home office. He hoped that by raising Brynaert's profile in Brussels, he could create

in him a greater sense of ownership for his remote sales territory. "I started to communicate much more what he did to other people [within the company], because there's quite some distance between the Brussels office and the section he's working in. So I started to communicate, communicate, communicate. The more I communicated, the more he stated to provide material, says Lescornez. As a result, "Now he's recognized as the specialist for Luxembourgthe guy who is able to build a strong relationship with the Luxembourg clients,-' says Lescornez. What's good for Brynaert, of course, is also good for Lescornez, who gets credit for helping Brynaert grow and develop. Limits of Positive Culture Is a positive culture a panacea? Cynics (or should we say realists?) may be skeptical about the benefits of positive organizational culture. To be sure, even though some companies such as GE, Xerox, Boeing, and 3M have embraced aspects of a positive organizational culture, it is a new enough area that there is some uncertainty about how and when it works best Moreover, any OB scholar or manager needs to make sure he is objective about the benefits-and risksof cultivating a positive organizational culture. Not all cultures value being positive as much as U.S. culture does, and, even within U.S. culture, there surely are limits to how far we should go to preserve a positive culture. For example, Admiral, a British insurance company, has established a Minisa7 of Fun in its call centers to organize such events as poem writings, foosball, canker competitions (a British game involving chestnuts), and fancy dress days. When does the pursuit of a positive culture start to seem coercive or even Orwellian? As one critic notes, "Promoting a social orthodoxy of positiveness focuses on a particular constellation of desirable states and traits but, in so doing, can stigmatize those who fail to fit the template.our point is that there may be benefits to establishing a positive culture, but an organization also needs to be careful to be objective, and not pursue it past the point of effectiveness.

9) Creating Effective Teams Many have tried to identify factors related to team effectiveness. However recent studies have organized what was once a veritable laundry list of characteristics into a relatively focused models about what makes teams effective . The key components of effective teams can be subsumed into 4 general categories the first are the resources and other contextual

influences that make teams effective. The second relates to the teams composition. The third category is work design. Finally, process variables reflects those things that go on in the team that Influences effectiveness. What does the team effectiveness mean in the model? Typically, itbhas included objective measures of the teams productivity managers satisfaction. rating of the teams performance and aggregate member

TEAM EFFECTIVENESS MODEL

CONTEXT y y y y Adequate resources Leadership n structure Climate of trust Performance evaluation and reward system

COMPOSITION y y y y y y y Abilities of members Personality Allocating roles Diversity Size of teams Member flexibility Member preferences

TEAM EFFECTIVENESS

WORK DESIGN y y y y Autonomy Skill variety Task identity Task significance

PROCESS y y y y y Common purpose Specific goals Team efficacy Conflict levels Social loafing

The 4 contextual factors That appear to be most significantly related to team performance are the presence of adequate resources , effective leadership, a climate of trust and a performance evaluation and reward system that reflects team contribution Adequate resources Team are the part of a larger organization system. As such every each work team relies on the resources outside the groups to sustain it. A scarcity of resources directly reduces the ability of a team to perform its job effectively. LEADERSHIP AND STRUCTURE Teams cant function if they cant agree on who is to do what and ensure that all members contribute equally in sharing the work load. Agreeing on the specifics of work and how they fit together to intergrate individual skills requires team leadership and structure CLIMATE OF TRUST Members of effectiveness teams trust other. And they also exihibit trust in their leaders. Interpersonal trust among team members facilitates cooperation reduces the need to monitor each other behavior and bonds members around the belief that others on the team wont take advantage of them. PERFORMANCE EVALUATION AND REWARD SYSTEM The traditional individually oriented evaluation and reward system must be modified to reflect team performance. Individual performance evaluation and incentives may interfere with the development of high performance teams. TEAM COMPOSITION The team composition category include variables that relate tyo how teams should be staffed. ABILITIES OF MEMBERS Part of team performance depends on the knowledge, skills and abilities of its individual members. Its true that we occasionally read about the athletic teams composed of mediocre players who, because of excellent coaching , determination and precision teamwork beats a far more talented group of players

PERSONALITY OF MEMBERS M any of the dimensions identified in the big five personality model have been shown to be relevant to team effectiveness. Team that rate higher on mean level of conscientiousness and openness to expierence tend to to perform better . moreover the minimium level of team members agreeableness. also matters

10)RECOMMENDATIONS Within the organisations leadership is crucial at all levels because every employee must be a leader as Lee Iacocca, Tetsuya Katada, Christopher Sinclair or Herb Kelleher. All of them have a strong vision of the future and they are able to extent their vision to all employees. The latter is incredibly important due to every member of the company must know the path, goals and objectives of the organisation.Moreover, all leaders must be a good communicator and motivator as the different leaders that I mentioned in the examples of effective organisation. Also, leaders must be self-confidence for convince to the employees about his/her vision and thinking.All leaders must be active at all areas within the organisation; they mustknow everything about the company such as external and internal factors. An aspect very notable in leaders like Iacocca, Katada, Sinclair and Kelleher is that they are charismatic leaders that their ideas, visions can follow by their fellows at any time. They are models of leaders in creating effective organisations.

11)CONCLUSION As a result of this report we can conclude the following: Many organisations today are facing dramatic changes in their markets and technologies. These often require ongoing change to processes, team structures and skills to maintain competitive position or meet agreed service levels.Leadership within the organisation is increasingly important. The limitsof functions of teamwork and leadership and the way in which they areincreasingly expected of people at all levels in the

hierarchy are, however,new.Every manager needs to be team members as well as team leaders. Likewise,team members need to be able to share leadership as appropriate.Democratic styles of leadership are more probable to produce effective groupperformance. Different style of leadership may be requiring at different levelof an organisation, it depends of the situation or environment of the firm.In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done.In creating effective organizations, managers and employees have been practicing good performance management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely.Progress toward those goals is measured and employees get feedback.High standards are set, but care is also taken to develop the skills neededto reach them. Formal and informal rewards are used to recognize thebehaviour and results that accomplish the mission. Creating Effective organisations in the international arena Good performance is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of Day-today experience. A lot of the actions that reward good performance like saying Thank you dont require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many nonmonetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments. Successful an effective organization in the international arena addresses the operational and execution issues enterprises face when looking internationally for new opportunities: Anticipating the impact of operating globally in economic and operational terms. Managing the key issues and risks of sourcing and manufacturing

internationally. Taking advantage of the rapid growth for products and services globally.Attend successful an effective organizations in the international arena to develop an action plan for growing, competing, and operating globally. What is Organizational Effectiveness? (Based on Creating Effective Organizations, 2009) Delighting customers Advancing toward your vision Fulfilling your aspirations Developing your employees and their aspirations Making a positive impact on your community There are many aspects of leadership, and many traits that good leaders display, for instance: Intelligence, physical attributes such as strength, stamina and courage, good communication, experience, training and rewards (Peter Wear, 2006). Finally, every creating effective organisations needs leader with many skills forinstance, a good vision of the future, intelligent, good communicator,motivator, self-confidence, honesty, etc. Ramaswami (2005) argues thatif motivation is low, performers become lethargic.