Custom «Organizational Challenges» Sample Essay

Custom «Organizational Challenges» Sample Essay

The organizational culture challenge is one of the most important and hardest challenges leaders face. Every company faces the organizational culture challenges every day. In most cases, leaders are not able to solve the problem, and it becomes a danger to an organization. A good leader should have special qualities to cope with the problems. The paper tells about the qualities a good leader should have to make the organization prosper and the ways to develop them. It explores a significant challenge of the organizational culture faced by the successful leader – Robert McNamara, president of the World Bank from 1968 to 1981. The paper also analyses the decisions made by Robert to address the encountered challenge, how the decisions influenced the World Bank, how the organization changed, the more effective ways out, and the suggestions and strategy for overcoming the challenge.

A Good Leader

Good leaders are made, not born. If a person has the wish and will, he or she can be an effective leader. Jago said that good leaders evolve during an unending process of self-education, study, preparation, and experiencing (as cited in Clark, 2004). Effective leaders always work and study to better their leader qualities; they do not stop in self-improvement. There are no common qualities that make a leader prosper, and various qualities are needed in various cases. This fact does not indicate, though, that a person has no ability to learn to be an efficient leader. The individual only has to know different approaches to leadership so that he or she can use a proper approach for a particular case.

An effective leader is somebody who gives an example. A manager is somebody who just adheres to the job goal. The management's basic duty is to provide order and constancy by making plans, budgets, organizing, staffing, and questions resolving. A leader is somebody who breathes creativeness and productiveness into the team. Leader's basic duty is to provide progression and constructive or adjustable changing by creating a direction through making visions, equalizing, and inducing people. Though being a manager, an administrator, or a department head gives the person the power to carry out some problems and assignments in the company, this authority does not make the person a leader, it just makes him or her a boss. Leadership is distinguished by making the disciples wish to reach big goals rather than simply by commanding the subordinates.

People wish to be managed by the leaders they honor and with good path feeling. To get such respect, they have to be moral. The feeling, of course, is reached through expressing a clear vision of the future. When people decide to regard the person as a leader, they do not consider the person’s characteristics; they rather note the person’s actions so that they can understand who the person actually is. People use such observations to tell if the person is a respectable and entrusted leader or a selfish individual who abuses the power to look good and for own progress and success. On the other side, selfish leaders are not so efficient whereas their workers just submit them and do not follow them. They prosper in many areas whereas they represent a good picture to their seniors at the expense of their workers. An effective leader is a respectable person dedicated to the organization he or she works in. In the subordinates’ eyes, the leaders should use their position to perform the organization's objectives and contribute to the employees’ weal.

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According to the study made by the Hay Group, the world management consultancy, there are many components of workers’ pleasure (Lamb & McKee, 2005). They discovered that a leader has to be trustworthy and be able to notify a vision of where the company should be directed.

In general, there are eleven fundamentals of effective leadership:

  1. Be aware of oneself and search for self-improvement.
  2. Be technically experienced.
  3. Search for liability and take liability for own actions.
  4. Make good and forehanded solutions.
  5. Give the example.
  6. Know own people and look out for their weal.
  7. Keep own employees’ awareness.
  8. Develop a feeling of liability in own employees.
  9. Make sure that tasks are agreed, monitored, executed, and understood.
  10. Train as a command.
  11. Utilize all the abilities of own organization (The Center for Army Leadership, 2004).

The Challenges of Leadership

Each leader will face challenges whereas it is not always easy to act with the help of others to reach the outcomes he or she needs. Leadership always provides challenges to the leader's abilities. Things alter, alterations bring challenges, and even a good leader can’t stop that from happening. The way a leader addresses those challenges will determine how efficient he or she can be. Some challenges arise in the form of people or problems that provide hindrances to achieving a goal. More challenges come from the case of only being a leader. Each leader has to face many of the challenges and be aware of how to overcome them.

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Some people may think that a problem is the same as a challenge, but that is not right. Positive cases can also provide the biggest challenges, trialing how rationally the leader can utilize his or her abilities. A challenge is a chance to grow into a higher level, to trial oneself and better in the action, to demonstrate an ability to solve complicated issues. It is mentioned above that there are only some born leaders. The majority of leaders achieve their aim through realizing, assimilation, and getting up to the challenges of leadership.

Outside Challenges

Life brings surprises all the time by making obstacles or opening broad roads where they do not have to be. Both sorts of surprises provide possibilities to test leadership, with all the challenges they cause. Some general cases that require leaders to utilize their sources are open judgment, flashes of others' interpersonal questions, crises, calamities, opposition and enmity from strong forces, fiscal or political misfortune, cooperation among others.

Inside Challenges

Leaders are ordinary people. This fact is not the new, but it implies that they have exactly similar problems and make mistakes like everybody else. One of the biggest challenges of leadership is standing up to personal problems and ensuring they do not hinder the person from carrying out leadership roles. If the person is to become an effective leader, it is certainly needed to recognize the attitudes and trends that are met on the leader’s road and work to address them. Amid the most general personal features that effective leaders have to cope with or restrain are insecurity, defensiveness, absence of resoluteness, incapacity to be outright when a problem arises, incapacity to be unbiased, and hurrying with people and while handling certain situations.

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Challenges Rising from the Leadership Itself

Leadership carries with it special requirements. A leader can be the authoritative figure, the rescue, the settler of broken things, the spiritual mentor, the manager, the sample, the mastermind, or the educator.  Shortly, the leader may be seen in a way others want to see them. Leadership bears a lot of challenges besides those actions the leader really has to do to continue things going. Some problems that leaders have to manage are organizational culture, keeping an eye on the vision and communicating, keeping the everyday tasks under control, setting an example, maintaining effectiveness over time, avoiding burnout, finding support among others.

The Organizational Culture Challenge

Newstrom and Davis claim that the all organizations have their own original culture. The organizational culture is a mix of the establishers, former leadership, present leadership, crises, happenings, history, and magnitude (as cited in Clark, 2004). The culture is formed by customs: the routines, rites, and the manner in which people perform their duties. These customs affect individual behavior and direct the inherent behavior in each condition. The culture is the profoundly deep-seated nature of the organization that is a consequence of long-conducted official and non-official methods, regulations, traditions, and rites.

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The organization’s culture expresses a company’s general lifeway and includes a diversity of details that make an organization distinguish between inside and outside cooperators. Such details include the views and operating ways of the company, its history, its morals, social obligation degree, values of the organization and how it transfers them to others, amusement at work, the weal of company’s personnel, teamwork, the grade of client service, working surroundings, and the dress code.

It is not easy to construct and alter culture for individual leaders whereas culture is a part of the organization. The full obligation of all leaders in the organization is needed to alter the culture of the organization. The leader cannot simply and immediately change everything the employees got used to and followed for a long time.

To alter an organization’s culture is among the most difficult leadership challenges. That is because of the reason that an organization’s culture covers an interlocking number of aims, parts, operations, values, communication praxis, relations, and assumptions. The details combine with each other as a common strengthening system and to hinder any try to alter it. That is why single changes, such as the establishment of commands, checks, experience management, or other new operations, can make progress for some time, but, finally, the alteration will incessantly go back into the existent organizational culture. Altering a culture is a large obligation, and all of the organizational instruments for changing views will have to be applied. However, the order in which they are unfolded has a decisive influence on the probability of prosperity. Generally, the best prosperity strategy is to start with leadership instruments, including a vision of the future, cement the change in place with managing instruments, such as part determinations, measuring and monitor systems, and use the complete power instruments of compulsion and penalties as an utmost way, when everything else does not work.

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One of the most frequently made errors in trying to alter the culture is abusage of the power instruments of compulsion and insufficient use of leadership instruments. Such mistakes as starting from a vision of the future but failing in setting the managing instruments that will cement the behavioral alterations or starting from the power instruments even afore stating a distinctive vision of the future are also often made by leaders.

The World Bank

The World Bank is a financial organization that acts worldwide and makes lending to undeveloped countries for the fund programs. The World Bank mission is to struggle with poorness professionally and with fervor for continued effects, to help people assist themselves and their surroundings by manufacturing resources, sharing experience and skills, creating productivity, and establishing partner relations in the public and private sector, and also to positively influence societies by making contributions to education, medicine, state governance, infrastructure, fiscal and private sector growth, agronomy, and environmental and innate resource administration (The World Bank, n.d.). The World Bank vision is the world without poorness and achieving the millenary development objectives (The United Nations, n.d.). Due to the Articles of Agreement, all World Bank decrees have to be controlled by an obligation to the encouragement of foreign investments and international trade and to the alleviation of capital investments. The World Bank draws stakeholders on the world and local rates, outwardly and inwardly. Its stakeholders include participating countries, development associates, depositors, people in customer countries affected by bank drafts, and their own personnel.

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The Organization Culture Challenge at the World Bank

The World Bank expresses an especially difficult incident of organizational culture change. Its official purpose — progress — is obscure. The organization itself is a special combination of a charity fund, a university, and a bank. As an international institution, it belongs to the governments around the world with a resident board of directors and their personnel who are always present and prepared to provide the administrative services. Broadly speaking, the World Bank is a huge achievement. It is easy to forget that a half-century ago, India, China, and Korea required Western charity for an unlimited period. Nowadays, they are independent economical empires with their own law, which is the result of the realization of economic policies that the World Bank has been training those countries for years (Denning, 2010).

One of the most effective presidents in terms of altering the culture was Robert McNamara. After working at the Ford Motor Company, where McNamara became a chairman, he was the U.S. Defense Minister, and then he became the president of the World Bank in 1968 - 1981. His most continued achievement at the World Bank is introducing of the hierarchical bureaucracy with its concomitant purposes, parts, accountabilities, values, and intercourses (Denning, 2010).

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After his advent at the World Bank in May 1968, McNamara rapidly took control in his hands. John Blaxall, who was a youthful economist at that time, was called to McNamara’s cabinet soon after his advent, given a pack of annual reports, and required to collect perennial financial statements. All mentioned above had not been done earlier. McNamara wrote down in his left-handed scribble on a white pad the titles that he needed. The columns through the apex were the former five financial years, and the lines were the typical balance sheet and profit and loss items. Robert asked how soon it could be finished. Blaxall told him the time and looked with anxiety that McNamara studiously wrote the time down.

In half a year, McNamara was provided with some tables with all main aspects of the bank group’s actions, with outputs for every five-year time and for the former five years in detail. McNamara pored over the pages with a lot of numbers and said that it was really thrilling. McNamara then required the chief managers in the President’s Council of the bank to provide the numbers for the future five years for the actions under his liability. The prompt response was that it was impossible to be done, but McNamara answered that they had to do that anyhow and during one month.

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It is not unexpected that the lending projections for five years presented by the geographical subdivisions had not much conformity to the projections for five years made by the technical subdivisions. The fiscal plans proposed by the payout unit were also related neither to geographical subdivisions nor to technical subdivisions.

At the beginning of summer, 1968, McNamara declared to the chief managers that soon the World Bank would use just one sheet for everybody’s actions. Assuring the needed concordance would play a key part for the units where programs and budgets are made. The plan was not declarative, just some typical tables with a deal of numbers by which McNamara had been operating the Bank for the next years.

Due to McNamara’s contributions and changes, he converted the World Bank from a little drowsy financial organization into a huge, fussy, and contemporary global corporation, increasing lending far more than it was during his heading.  McNamara highly raised the World Bank’s part in agronomy and education areas and established new ways of doing business in medicine, nation, food, and citizenship development. He also declared a new start for the World Bank in easing worldwide poorness, stormily paying attention to the condition of the 40% poor people around the world, which had been substantially inviolate by progress lending. Nevertheless, his most continued achievement is that he represented the hierarchical bureaucracy (Denning, 2010).

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Therefore, McNamara came to the organization with a strong vision: it had to be a lending institution that was making loans in a much bigger sizes. He had a strong plan of the operating he wanted to establish – the hierarchical bureaucracy. He brought in the methods and actions that drew everybody’s attention to his vision of the organization as a quickly increasing lending bank. Those methods are yet vastly used today and guide operating actions. All the next presidents of the World Bank such as Tom Clausen, Barber Conable, Lew Preston, James Wolfensohn, Paul Wolfowitz, and Robert Zoellick could not change the organizational culture like Robert McNamara did.

Nowadays, the World Bank is a classical hierarchical bureaucracy that moves slowly, with an inside-looking prospect. The mission that dedicates the institution to the alleviation of poorness is not highly supported by the managers, methods, and structures that yet run the institution to center mostly on making loans to individual development drafts. In spite of being full of talented personnel, the institution in general is inefficient. There is a lack of the mobility to address the different challenges that are faced around the world today. Generally, the World Bank highly needs a drastic change in administration. If there are not any changes, the organization will become more and more irrelevant.

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The Suggestions for Overcoming the Challenge

Robert McNamara did not do some things to address the challenge of organizational culture in the World Bank that were needed. He did not alert the administrators or provide his own personnel. He mainly collaborated with the personnel that were already there. When McNamara had a need for something the existent management could not give, he attracted youthful people from inside the institution, such as Blaxall. Probably, if he replaced the staff, the World Bank would change faster and strongly because new people can bring new things to an organization, and they tend to work with greater persistence.

McNamara also did not start from restructuring the World Bank. Only after four years since his coming, McNamara eventually moved to a restructuring, which was necessary in any cases whereas the organization had strongly increased. Till now, Robert’s operating methods and philosophy were hardly in place. Therefore, Robert did everything right to address the challenge of organizational culture. The great result he achieved is an evidence of his diligent efforts. However, if McNamara also replaced the staff and reorganized the World Bank, the result would have been even better.

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