12 Characteristics of a healthy organization

In traditional times there was one way of determining the health of an organization. All those who are assessing have to do is check the books and it was assumed that once the organization is making a profit, then it is healthy. Times have since changed and in rating the health of an organization, people examining it look at customer relations, processes and of course the role and enthusiasm of the people in that organization in its day to day activity in addition to the profits!

In this analysis we intend to focus on the individuals, that is the workforce and attempt an assessment of the organization’s health from that perspective. This is seen as mainly a management or human resource function.(HRM)

-Integration of organizational goals with the personal or individual goals of the people who carry out the functions in the organization is a relevant perspective. The goals of the people must integrate with the goals of the organization at a point, or else the individuals concerned would lose interest and just to do their work in an absent minded none committal manner. People often aspire to develop on the job, promotion, more pay and conducive work conditions.

-The organizational structure that aids productivity is also a factor. There is a need to build the structure of the organization around its functionality at the levels of efficiency and effectiveness.

-Today’s workforce are increasingly looking for ways to contribute to the decision making function in the organization through democratic functionality. Where they cannot do so at management meetings, they would seek to do so through pressure groups within the organization or via labor unions.

-The people that make up the workforce want to be treated equitably or fairly. A human resource employment relations policies and practices are in order to ensure that equity prevails within the organization.

-Managers ought to promote mutual trust considerations within the organization and support among different levels to ensure a stable and solid morale.

-There ought to be open discussion of conflict with an attempt to avoid confrontation that could disrupt the business process.

-The managerial behavior and styles of leadership should be appropriate to work situations.

-Acceptance of psychological contract between the individual and organization is of profound importance. Each individual is expected to know the basic roles he should play as well as the does and don’t of the organization which are not always written down.

-The recognition of peoples’ needs and expectation at work as well as acceptance of individual differences and attributes are also a major characteristic of the healthy organization.

-HRM should also ensure equitable systems of rewards based on positive recognition of roles and contributions to the organization as well as work life and job design balance.

-There ought to be opportunities for personal development and career progression through the processes of training, coaching, mentoring, career guidance and career path.

-Every member of the organization should have a sense of loyalty to and identify with the organization and also have a feeling of being valued and important to the very existence of the organization.

What is the real state of Nigeria's economy?

  

   In order to determine the current state of the economy, we first need to take a good look at the business cycle as a whole. Generally, the business cycle is made up of four different periods of activity extended over several years. These phases can differ substantially in duration, but are all closely intertwined in the overall economy.

•Peak - This is not the beginning of the business cycle, but this is where we'll start. At its peak, the economy is running at full steam. Employment is at or near maximum levels, gross domestic product (GDP) output is at its upper limit (implying that there is very little waste occurring) and income levels are increasing. In this period, prices tend to increase due to inflation; however, most businesses and investors are having an enjoyable and prosperous time.

      For Nigeria it was a period when we were making up to $50billion a day from oil. As at November 2014 the price of oil begun to fall on the world market and our income shrank to $32billion. So importation was still being sustained

 

     Recession - The old adage "what goes up must come down" applies perfectly here. This is the probably the most spoken word in Nigeria today. After experiencing a great deal of growth and success, income and employment begin to decline. As our wages and the prices of goods in the economy are inflexible to change, they will most likely remain near the same level as in the peak period unless the recession is prolonged. The result of these factors is negative growth in the economy. The recession in Nigeria it appears will drag on for some years but with recent measures at arresting it there is hope that it will not go into a depression. Oil sales at recent times stand at a meager $500million per month. Bombings in the Niger Delta have also been a contributory factor.  The North Eastern part of the country is worst hit with terror activities of Boko Haram reducing the accessibility of goods and services.

     Trough - Also sometimes referred to as a depression, depending upon the duration of the trough, this is the section of the business cycle when output and employment bottom out and remain in waiting for the next phase of the cycle to begin.

     Expansion/Recovery - In a recovery, the economy is growing once again and moving away from the bottoms experienced at the trough. Employment, production and income all undergo a period of growth and the overall economic climate is good.  There is hope that once the right plan is put into place, the economy will grow again before it goes into a depression. 

      Right now there is a  Liquidity squeeze- No loans, banks are struggling

How does a recession affect the ordinary man:

       •Goods staying on the shelves

•Layoffs and under employment

•Shrinking salaries

•Manufacturing slow down

•More people go into the informal sector

•Reduction in monies sent from abroad 

Forex Squeeze

Importation slows

Which businesses could survive?

•Food

•Entertainment

•Communication

•Petroleum Product marketing

•Real Estate 

Other necessities that people can not do with out would also survive as businesses. 

 

 

 

Micro finance could help lift African and East European countries out of poverty!

            

Muhammad Yunus, father of micro finance

                 The importance of micro, small and medium businesses (enterprises) (MSMEs) in the development of any nation needs to be emphasized.  Every  emergent economy must have a vibrant and sustained MSMEs sub sector which was vital to the development of most countries in East Asia which are referred to today as the Asian Tigers. Management involves ensuring that a group of people work together in the most effective and efficient manner to achieve a stated goal in the best and most economical way. In MSME the eyes of the owner must always be on costs: expenditure or overheads.  

                 The changing nature of work organizations, including flatter structures and recognition of the efficient use of human resources, coupled with advances in social democracy have combined to place growing importance on leadership.  The nature of management is moving away from an emphasis on getting results by the close control of the workforce towards an environment of coaching, support and empowerment. Historically, the significant role of MSMEs in development has been universally acknowledged. In Asia, small businesses have made up to more than 90% of the industries in Indonesia, Philippines, Thailand, Hong Kong, Japan, Korea, India and Sri Lanka. They account for 98 percent of the employment in Indonesia, 78 percent in Thailand, 81 percent in Japan and 87 percent in Bangladesh. Even in countries such as the United States of America where big corporations hold sway, MSMEs still play enormous role in the country’s economy. There really is no universally accepted definition of MSMEs.  They are defined differently based on regional or country context.   

                 Government agencies, ministries, etc use different definitions. For example in the United States of America, the small business administration defines “small business” as any business with less than 500 employees. This figure may represent medium to large enterprise in the African context. In Mauritius, MSMEs are defined as manufacturing enterprises which use production equipment with an aggregate CIF value not exceeding 10 million rupees. In South Africa more elaborate categorization is utilized as follows: survivalist, micro enterprises, small enterprises, medium enterprises and large enterprises. Survivalist enterprises represent activities by people unable to find paid jobs or get into the economic sector of their choice.  Small enterprises constitute bulk of established businesses and have from 5 to 50 employees.  Medium enterprises often employ up to 200 persons and have capital assets, excluding property of about 5 million Rand.

                  In Nigeria, MSMEs are taken to be enterprises or businesses in manufacturing activities or related service industries as officially defined by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as follows:

           
            Cottage/Micro Industry is an industry whose total capital cost including working capital but excluding cost of land and building is less than N5.0 million and a work force of less than 10 employees.

           
            Small Scale Industry is an industry whose capital cost including working capital but excluding cost of land and building is less than N50.0 million but more than N5.0 million and workforce of 10 – 49 employees.

   
       Medium Scale Industry is an industry whose capital cost including working capital but excluding cost of land and building is less than N500.0 million but greater than N50.0 million and workforce of 50 – 199 employees.

                 In Nigeria the National Policy for the Development of Micro, Small and Medium Enterprises (MSMEs)  was launched in 2007. This was a collaborative effort between SMEDAN and the United Nations Development Programme (UNDP). It is meant to be a widely accepted policy document that would guide the development of micro, small and medium enterprises. The key areas addressed by this policy included institutional, legal and regulatory framework concerning business registration, property rights, contract enforcement and dispute resolution etc.  The policy also identified special target enterprises for quick win attention.

                 
                  Over 80 million people (65% of the  active population) in Nigeria remain out in the cold as  the formal financial institutions are not serving them. Microfinance specific institutions in Nigeria have not been able to adequately address the gap in terms of credit, savings and other financial services required by the micro-entrepreneurs.                Ironically micro finance has its roots in Asia. Muhammad Yunus ( born 28 June 1940) is a Bangladeshi social entrepreneur, banker, economist, and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of micro credit and microfinance is widely regarded as the father of micro finance. The loans are meant to be given to entrepreneurs too poor to qualify for traditional bank loans. In practice, Microfinance means more than the delivery of small units of financial social and health services.It goes beyond the disbursement and collection of loans. Micro finance also includes  the entire flexible structures and processes by which financial services are delivered to micro-entrepreneurs on a sustainable basis.

                  An MFB  may be described as a company licensed  to carry on the business of providing microfinance services such as savings, loans, domestic funds transfer and other financial services that are needed by the economically poor, micro, small and medium enterprises (within the 22 permissible activities). Those taking the loans have to understand that:

•       It is not for Charity lending

•       It is not a one-time lending, e.g. government loans to the poor

•       It is not for the affluent in society

                 The poor need a variety of financial services.Micro credit is a powerful instrument for poverty alleviation.Microfinance must be able to build financial systems that serve micro enterprises and this kind of financial sustainability is necessary to reach a significant number of poor people .Microfinance is about building permanent local financial institutions

                 There is therefore an urgent need to take the bank to the people with inadequate access to financial services, including remote areas, have regular contact with borrowers- daily, weekly or monthly as the case may require. There is also a need to increase the use of groups for the purpose of accessing credit It is easier to deal with cooperatives rather than individuals. Africa in this century desperately needs her own version of Muhammad Yunus who would devise a method of raising the continent out of poverty.

Your organization can develop if you start the change process!

          

 

       Organizational development (OD) is a planned,      organization-wide effort to increase an organization's effectiveness, efficiency and viability.

     Warren Bennis has referred to OD as a response to change, a complex educational strategy intended to change the beliefs, attitudes, values, and structure of organization so that they can better adapt to new technologies, marketing and challenges, and the dizzying rate of change itself. OD is neither "anything done to better an organization" nor is it "the training function of the organization"; it is a particular kind of change process designed to bring about a particular kind of end result. OD can involve interventions in the organization's   "processes," using behavioral science  knowledge as well as organizational reflection, system improvement, planning, and self-analysis.At the core of OD is the concept of organization defined as two or more people working together towards one or more shared goal(s). Development in this context is the notion that an organization may become more effective over time at achieving its goals.  OD is a long range effort to improve organization's problem solving and renewal processes, particularly through more effective and collaborative management of organizational culture, often with the assistance of a change agent or catalyst and the use of the theory and technology of applied behavioral science.Organizational development is a "contractual relationship between a change agent and a sponsoring organization entered into for the purpose of using applied behavioral science and or other organizational change. A change agent in the sense used here is not a technical expert skilled in such functional areas as accounting, production, or finance. He is a behavioral scientist who knows how to get people in an organization involved in solving their own problems. His main strength is a comprehensive knowledge of human behavior, supported by a number of intervention techniques. The catalyst for change include:
Competitive technology/Competition Inventors          Radical  thinkers Politics and policy                   Vogue/Fashion adherents 

      Economic environment   

        The areas that are normally associated with organizational development include organizational performance, balanced scorecard, performance improvement, process improvement, bench marking, strategic planning, succession planning, action research, leadership development and group dynamics. 

65 questions that will prompt you to perform better. Read them and improve

 The material was prepared for a strategic planning and management class some years ago but its still relevant. The questions are meant to be read and answered at a boot camp. But who says you cant have your own boot camp? Try it today!

Optimum Performance

Questions that would help improve your (Know-How and do now) performance potential!

If you take the pain to go through these questions I gaurantee that you will be spurred to do something to improve the situation you currently find yourself in, in your business. Read and do now! 

1.    What do you want to improve (self, product. service?)

2.   What is the problem, objective, goal?

3.   What is the present condition, situation?

4.   Who or what caused it? Why, when, where, how?

5.   What may can or should be done about it?(Make a list)

6.   Who should do it? You alone? OR should you enlist others to join you, to help you?

7.   Why is an improvement needed? When?

8.   How do you think the object, product, plan, method-anything should be improved?

9.   Write down your own idea for improvement, then consider the following:

10.                     Can whatever you want to improve be made better or more desirable by making it bigger? Enlargement has greatly improved many things (Food packages, buildings, machinery, ships and countless items) Think big!

11.                     Can whatever you want to improve be made better or more desirable by making it smaller? Compactness is increasingly important as our world and our lives become more crowded. Miniaturization has made much of modern technology possible. Think Small!

12.                     Can you make improvements by increasing numbers? Elections are won by increasing numbers of voters. Organizations expand and become more powerful by increasing the number of members. Six packs (canned/packaged soft drinks or foods) increase beverage and food sales. Military superiority often depends upon increased numbers of men and weapons. Advertising success depends upon increased number of viewers or readers who will see the ad and buy the product or service!

13.                     Can you make improvements by decreasing numbers? By decreasing numbers, you can often improve quality eliminate waste, improve efficiency, reduce costs. Consider simplifying things by decreasing numbers.(Numbers of parts, movements, packages, operations, etc.

14.                     Can what you want to improve benefit by being combined with something else? The opportunities are endless for improving by combining. The washer-drier laundry unit and the refrigerator/freezer are obvious combinations and there are thousands more.

15.                     What can you add which will improve value?

16.                     What can you eliminate to improve efficiency: (decrease costs, time, increase quality or simplify?)

17.                     Can you improve by increasing speed? An increase in speed often leads to an higher productivity level and possibly decrease costs.

18.                     Can you improve quality, safety and decrease rejects or employees stress by reducing speed?

19.                     Can you reduce boredom by rotating jobs?

20.                     How can you improve control? Control technology offers a lot of opportunities

21.                     Could you improve by increasing the softness of the product? Many goods have been made more desirable by a process that makes them softer, for instance, fabric and clothing

22.                     Can you improve by increasing hardness? Harder tools or combinations of metals used for cutting or carving are examples of where hardness is important!

23.                     Could you make what you want to improve easier to obtain, use, apply. Easy access would guarantee more sales or usage. For instance the Personal Computer you are currently using is easy use and that’s why a lot of people are using them all around the world.

24.                     Can you change and improve the colour? Colours of products, office environments, office wear attract a psychological benefit that attracts customers to goods and services.

25.                     How can you simplify it? Make it less complicated?

26.                     What can you do to make the product service more desirable and less expensive?

27.                     What specific corrections can be made in the product or service? Most improvements are made by transforming existing conditions.

28.                     Can you change or improve the materials used? Materials for every purpose are so varied and their uses so remarkable that they offer almost unlimited opportunities for improvement. Begin a search for new materials and combinations of materials that can lead to improvement of a product or service or personal ability.

29.                     What changes in labour would increase output and reduce costs, waste, labour. Be the first to suggest production improvements in your organization.

30.                     What changes in personnel are needed in your organization: few, many, more skilled, what training programmes are required to bring you and your organization up to date, what motivation methods can you use for people who work with you?

31.                     NOW LOOK AT YOUR PERSONAL PLAN FOR DEVELOPMENT AND ASK YOURSELF WHAT IMPROVEMENTS CAN BE MADE IN YOUR PLAN? Intensive reviews can improve plans at least by 10 times their initial worth if they are carried out properly. CHECK THE FOLLOWING;

32.                     What time changes would improve efficiency and employee relations? Could time changes increase uses of facilities, fixed overhead? Twenty four hour use plus maintenance constitutes 100 percent use of a fixed overhead, equipment or property!

33.                     How can you better divide time allocations, personnel functions, operations, workload?

34.                      How can you multiply results? Additions are good, but multiplying will make you better at the job and you will attract more attention from you bosses!

35.                     How can you magnify your desirable qualities to make them appear even more desirable?

36.                     Can what you want to improve be made even better by changing its shape or form which will lead to increased demand?

37.                     What qualities and characteristics should be retained? Often eagerness to make changes sacrifices qualities which should be retained. There is danger in being suddenly too new and too different so change when total should be gradual.

38.                     What can be discarded advantageously? You will be surprised at the number of needless things and methods which you can get rid of and streamline your methods of operation.  Would clearing your desk out in the office and arranging the table, having a draw or specific place for different things you use make you more efficient? Work faster? More comfortable in the office environment?

39.                     Would setting a definite limit or restriction on certain personal habits increase your productivity or of those around you? For instance amount of time spent sharing stories at work, browsing the internet during work hours, watching the television in the reception, attending to personal visitors, taking personal phone calls. Kill a bad habit and it helps improve your output!

40.                     How can what you want to improve be modified? Often drastic changes are neither necessary nor desirable, but  some simple modifications may produce magnificent  results.

41.                     How can you diminish danger and increase safety? And appeal to one of the most powerful human desires: security.

42.                     How can what you want to improve be related to and or associated with something of established desirability?  Would starting a cooperative at your work place, at your organization or society meet some desirable requests if management can not? Buying a house, land, a car, starting an investment account?

43.                     How can you improve appearance? People, organizations, products and things are judged by appearance. Appearance often affects judgment; disregard this fact to your disadvantage.

44.                     How can you activate? What should you do to increase activity at your workplace, shop or business? Shoprite has one attractive venture that makes it different from other shops in Ghana. It sells fresh bread   this known fact attracts more people to this department store than any other. A lot of people go there just because of fresh bread and buy other things along side. Remember, activity attracts attention.

45.                     Can you offer or improve upon a guarantee, insure against defects or loss, eliminate or minimize liability? Can you emphasize your guarantee through testimonials?

46.                     Can what you want to improve benefit from increased purity (Pure water, bottled water, juice, honey, palm kernel oil, coconut drink etc) or Sanitation: (Hotel premises, hospital environment etc and other public places) or by reducing pollution ,(what energy process are into: diesel, gas, coal, firewood, kerosene.) 

47.                     Consider the following changes in your work space or personal environment would they help you increase or improve?  Will your productivity increase if you….Elevate, lower, stiffen, make more flexible, reinforce, strengthen, refine, invert, reverse, rotate, recycle, condense, expand, superimpose, oscillate, vibrate, whirl, swivel, insulate, tighten, loosen, make more quiet, streamline, automate, self regulate, computerize.

48.                     Would what you want to improve be better by being made lighter or heavier?

49.                     Can you make your product/service more convenient? Can you improve distribution, supply, location, simplicity etc?

50.                     Can you increase happiness, enjoyment, fun? Can you increase comfort, well being, relaxation?

51.                     Are there possibilities in syndicating, franchising, serialization ….etc

52.                     Can time frames and quality of service, maintenance, repairing be improved? Made easier, faster, less costly?

53.                     Can you make it more fashionable? If you keep ahead with styles and designs will it help your business, personality at work etc?

54.                     Can you make it more impressive?

55.                     Are there possibilities in easier terms or simpler financing? Discount for cash, quantity, related purchase, immediate purchase? Aerocontractor Airline charges lesser for its flights compared to other airlines and relies on turnover to succeed.

56.                     Can you identify what you want to improve with a favourable, easy to remember symbol. A major memory factor is association.

57.                     Can you make improvements in: name, label, trademark, package, design of any of the foregoing?

58.                     Can what you want to improve be recommended by accredited testing and convincing testimonials? Backed by guarantee?

59.                     Can it be made more time saving, more money saving, more labour saving?

60.                     Can samples or testing be more effectively used, what about bonuses, action oriented incentives and inducements…

61.                     Can you profitably add an extra value, extra feature, extra ingredient to the product or service or to your person for promotion or higher pay?

62.                     Will the improvements you suggest increase production, reduce costs, improve quality, increase sales, increase income, increase profits, provide security or safety?

63.                     Will your improvement: Give people more of what they want, less of what they don’t want, a better feeling about themselves?

64.                     What additional learning, knowledge, training, workshop or association you engage in will help take you to the next level of management/profit/wealth or riches?

65.                     Whose success can you model? Who inspires you in life? Seek him or her out and try and find out how he or she did it and see if you can emulate.

If you have taken the pain to read all of this it means you are really serious about improving upon what you do. Please remember that no matter what you do or who you are there is room for improvement. Continuous improvement will guarantee that you make it to the top. If you have questions please don’t hesitate to mail them to me.