The paper "Seven Practices of Successful Organizations" is an outstanding example of management coursework. This essay presents an analysis of various management issues that affect the performance of organisations. The essay will specifically analyse an article by Pfeffer and Veiga (1999), which, among other points, argues that managers of organisations do not implement the “ Seven practices of successful organizations” . In a nutshell, Pfeffer and Veiga (1999) argue that in order to be successful, organisations need to consider offering employment security to their workers, practise selective hiring, encourage the formation of self-managed teams as well as decentralisation, base high compensation on high organisational performance, promote the training of staff, reduce organisational hierarchies, and promote sharing of information.
In the essay, the assertions by Pfeffer and Veiga (1999) will be compared with other management theories that have been used in the past such as Henri Fayol’ s “ 14 Principles of Management” , FW Taylor’ s concept of scientific management, the administrative management theory, the theory of division of labour, behavioural management theory, management science theory, and Mary Parker Follett’ s view of management among others.
The essay will specifically explore whether or not managers who relied on Fayol’ s management principles would be able to manage organisations in today’ s environment given the changes that have occurred in the organisational environment as suggested by Pfeffer and Veiga (1999) and other management experts such as Gary Hamel. Analysis of the “ Seven practices of successful organizations” In their article titled “ Putting people first for organizational success, ” Pfeffer and Veiga (1999, p. 37) argue that many rigorous studies on management have suggested that organisations reap many benefits when they implement what is known as high performance, high involvement or high commitment management practices.
They also argue that such studies seem to validate the practices of employee involvement and participative management. In spite of this, it is argued many organisations are moving in a direction that is opposite to what the studies actually suggest (Pfeffer & Veiga 1999, p. 37). However, Pfeffer and Veiga (1999, p. 40) point out that organisations can greatly benefit when they motivate their people to work harder by increasing their level of involvement and commitment to their organisation.
It is here that the two authors propose the “ Seven practices of successful organizations” which they believe are vital for organisations that attain profitability through people. The first practice proposed by Pfeffer and Veiga (1999) as a way of ensuring organisational success is providing employment security. The authors cite a source which suggests that productivity improvement and worker-management cooperation are only likely to be sustained over a long time when employees are assured that they will stay in their jobs even if they increase their productivity. According to Pfeffer and Veiga (1999, p.
40), there are many benefits of employment security, including the fact that workers are likely to increase their contribution of knowledge to the organisation. By doing this, firms also reduce the likelihood of laying off their employees during downturns. The benefit of having employment security is also in regard to the stability that is created within the organisation and the reduction in the cost of repeated recruitment for firms that have selected, trained and developed their workforce well (Pfeffer & Veiga 1999, p. 40).
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