Essential Resources and Factors for Organizational Success
Resources for Organizational Existence
Human Resources
People are the greatest resource available to an organization. Proper role designation, personnel selection, etc., are key to organizational success. Organizations must define duties for each area or department and assign responsibilities.
Material Resources
These are goods used by people to carry out activities within an organization. These include:
- Financial Resources: Monetary funds necessary for organizational development and growth. Their origins can be:
- Shareholders’ Equity: Cash contributions from partners, associates, or owners, made at the organization’s start or to increase participation. This also includes profits earned during operations.
- Third-Party Funds: Financial resources from individuals or institutions outside the organization, representing liabilities.
Intangible Resources
Also called non-corporeal resources. These are indispensable for organizational projects and include creativity, experience, and enthusiasm. This resource can be continuously renewed through active participation of human resources.
Essential Factors for Organizational Activity
Any organization’s activity requires a comprehensive approach covering various aspects, including goal and plan formulation, organization into areas and hierarchical levels, adequate human resource procurement and motivation, establishing organizational behavior, activity coordination and promotion, and ongoing monitoring and analysis. This indicates essential elements or factors that stakeholders should possess.
Essential Factors for Stakeholders
- Planning and Objectives
- Communication
- Decision Making
- Strategy
Planning
What does planning determine?
Planning determines future actions, their timing, responsible parties, and required resources.
What constitutes the planning function?
It involves determining in advance what should be done, how it should be done, and who should do it.
What does planning aim to predict?
It seeks to predict various future courses of action and anticipate contingencies affecting both the organization and its external environment. Managerial decisions depend on prognosis and future contingencies.
How can objectives be expressed?
Objectives can be qualitative or quantitative, describing desired outcomes or stating them in terms of quantities.
How should planning objectives be formulated?
Objective formulation should be relatively flexible to allow for amendments if the underlying circumstances change significantly, as the future is uncertain.
Communication
Why is communication essential for organizations?
Communication is crucial for organizational functioning. It’s how members relate, facilitating objective achievement.
What is possible through communication?
- Publicize organizational policies
- Disseminate goals and objectives
- Analyze and establish actions to achieve goals
- Organize human resources
- Propose staff evaluation guidelines
- Create a positive work environment for efficient performance
What are the roles of communication and information?
They are key elements influencing decision-making, as informed decisions require in-depth understanding of the situation.
What are the main communication media?
- Verbal communication
- Written communication
- Gestural communication
What barriers and defects exist in communication?
- Defective listening
- Misgivings in communication
- Excess information
- Selective perception
- Attitude defaults
- Poor communication channel selection
Decision Making
How do factors affect decision making?
Various factors influence the evaluation of alternatives for solving each problem. Administrators must provide quality, useful, and relevant information for each problem.
Strategies and Action Plans
What is the purpose of strategies or action plans?
Strategies or action plans provide courses of action to ensure optimal decisions about the ways, paths, or roads the organization must follow to achieve any purpose, including steps to confront situations they can control.