Professional Documents
Culture Documents
THE CHALLENGES
OF ORGANIZATIONAL MANAGEMENT
George BUCĂŢA
“Lucian Blaga” University, Sibiu, Romania
george.bucata@yahoo.ro
ABSTRACT
Many organizations are driven by the market to set their goals in their
performance. Some of the goals are: cost reduction, achieving sales levels, increasing
the number of customers, increasing the market percentage, improving productivity and
quality, innovative products. Challenge becomes extremely acute in the case of
companies that continue to expand on new markets. In order to be easily understood, the
organization's objectives should be translated into a language easy to understand for all
levels of the organization, that is to be traced in clear objectives, specific to each
position, being imparted to the level of unity, team and individual.
DOI: 10.2478/raft-2018-0034
© 2017. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.
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Figure no. 1. The talent equation (talent attraction)
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various markets where these companies are considered that the recruitment of the new
present are particularly difficult to consider local international markets has a very low
providing adequate incentives for employees priority level compared to mid-managers
of different markets. That could boost (16 % vs 33 %). On the other hand, there are
employees from one culture or might perceptions that differ significantly in terms
discourage others elsewhere. Only 20 % of of the effectiveness of the company's talent
the interviewees consider that their management. Only 19% of the respondents
companies are effective in evaluating and considered the top company management
gratifying outstanding results on the market efficiency in rewarding the top performers in
and 23 % believe that the company is the different markets (compared to 26 % of
efficient in maintaining their key talents at a the managers of the lower hierarchical level)
global level. and only 13 percent consider the company
4. The leaders and the top management efficiency in aligning business strategies with
and have conflicting views about talent the individual performance goals.
management-the leaders in top management
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Figure no. 3: Performance management process (steps)
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An effective performance management also periodically, tied to the achievement of
system supports behavioral standards that the objectives. Unfortunately, this doesn’t
describe what is expected from employees happen in most organizations because many
in key competence areas. Managers should managers do not have the skills of
discuss these standards of behavior with constructive feedback. Frequently, when
employees. It is important for managers to performance is not the expected, happens as
ensure that they understand how it managers to avoid giving feedback because
interrelates these standards with each they don't know how to communicate
position on a deal in the organization. constructively and to downplay the
Development needs of employees should rejection reaction by the employee. When
also be taken into account in establishing there is the need of giving or receiving a
the objectives of this management system feedback, most people perceive this
performance. Development goals aim at experience as negative and uncomfortable.
either improving performance on the In achieving the objectives of the
position occupied by the employee. In some performance management process, core
situations it is difficult to observe the competencies should be defined in terms of
interdependence between the long-term behaviours and expectations necessary in
strategic objectives of the organization and the development of the professional
the immediate objectives and means of each activity. The definition of these behaviors
individual in the current activity. provides a solid base for the differentiation
In order to be easily understood, the between employees performing more or
organization's objectives should be less effective. Competences should also be
translated into a language easy to defined to reflect the different levels of
understand for all levels of the organization responsibility, complexity and difficulty
that is to be traced in clear objectives, what characterizes the positions within the
specific to each position, being imparted to organization. The advantages of defining
the level of unity, team and individual. these in terms of behavioral performance
Specialists often claimed as the dedication standards are: to help employees understand
of the employees is essential in achieving what is expected from them and to ensure
the objectives of the company; employees the general standards that managers may
must feel that they are able to achieve. apply in the assessment of employees,
Thus, it is important for employees to increasing the degree of transparency and
participate in the process of setting goals, to fairness of the assessment system.
accept them and to be motivated to It is important that employees
internalize them. It is also important for perceive this performance management
managers to express their desire to provide system as one properly. Using the set of
support to employees in the achievement of standards applied to evaluating all positions
these objectives by providing the necessary of the organization, it must be done through
resources, guidance and removing an explanation for each level, in the form of
obstacles. specific objectives for each area of
The objectives should be to define by competence. It is self understood that the
the final results. They must have a certain use of performance standards is an effective
degree of difficulty, but to be accessible to tool because without them it would be
motivate performance. During this process difficult to calibrate evaluations made by
of evaluation and performance different managers, with different scales of
management, managers must ensure values. For example, if an organization uses
feedback whenever there are exceptional a scale that measures if an employee “is
performance or one negative feedback, but rising to the challenge” to clarify what
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exactly are these expectations, inevitably difficulties in this respect In spite of these
some managers will interpret the subjective obstacles, approximately 85 % of the
level, which will lead to inconsistency in respondents reported that revenue from
measuring performance. them have increased during this year: 31 %
of managers reported an increase of
4. Facing Business Challenges in between 5 % and 10 %, 26 %, an increase
Romania – Foreign Companies of up to 5 % and 14 %, increases between
According to Forbes (January 2016), 10 and 15 % and over 20 %. Furthermore,
the three major challenges facing foreign foreign companies present in Romania have
companies present on the market in a good opinion about the employee's
Romania are changing the frequency of protection (36 %), the competitiveness of
legislation (54%), obtain appropriate the business environment (28 %), labor
support from the State (51 %) and (21 %) and about the legal protection on it
implementation of legislative requirements to ensure the employer (15 %).
(49 %), shows a study by TMF Group In 2014, a third of managers consult
Romania. Because of this context, TMF Group supported that finding
companies are willing to outsource tax adequate work force represents a challenge.
assistance services (67 %) and accounting, The fact that their number has increased
payroll and human resources management significantly in 2015 can be interpreted as a
(40 %) and legal administration (17 %), to signal of alarm concerning the difficulties
focus on their core activities. encountered to reach the right candidates.
Beyond these major challenges, the Precisely for this reason, many companies
most difficult aspects of business of foreign solve this problem using the outsourcing for
companies present on the market in they intended originally to work with us.
Romania are considered to be adapted to Foreign-owned companies in Romania
the needs of the corporate policies of local consider that they would benefit from the
laws (41 %), finding competent employees outsourcing of accounting, human resources
and implementing standardized processes and payroll, having more time to focus on
according to the various jurisdictions their core activities (64 %). The majority of
(36 %) and transposition of financial the managers who participated in the survey
reports and specific reports in an affordable consider that companies run by her in need
way of management (26 %). In terms of of specialized services in terms of tax
improvements from last year, foreign assistance (40 %), payroll and human
companies active in Romania appreciate the resources administration (37 %) and
ease with which found suitable offices and accounting and financial reporting (30 %).
suppliers (29 %), compliance with labour
laws and wages of employees based on 5. Conclusion
market mechanism (26 %). How about the To be the leader of an organisation
local business environment, foreign represents a significant responsibility.
companies have a negative perception All interested parties will depend on the
regarding the level of the fees and the law managers decisions. Investors seeking a
(62%), in collaboration with the authorities return, employees satisfaction at work and
(38%) and in finding work (33 %). career development opportunities, and to
Moreover, the appearance of which feel proud and confident in the workplace;
was aggravated most intensely from last customers and partners are seeking services
year is finding well trained labour force, and solutions which meet their
33 % of respondents saying that face requirements and deliver real value.
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