ABC ltd. is an organisation involved in production activities. It is one of the largest distributors of spare parts for farming machineries all over the world. The organisation has the following departments in its structure: administration department, finance and accounting department, purchase and suppliers department, sales and marketing department and finally the production department. ABC ltd. has regional branches all over the five continents and each region is run by a regional manager who reports directly to the head offices which are located in the United Kingdom.
Changes in ABC Ltd.
In the last five years, ABC ltd. has undergone so many visible changes in terms of the organizational structures, profitability and expansions in its operations. In 2006, ABC ltd. changed its traditional organizational structure and adopted a new one. In the earlier organisation structure, the organisation decision making process centralized but after a consultative review and consultation of Mana Tom restructuring and consultation company, the management opted to re-structure its decision making process where it adopted a decentralised system of decision making. In the same year, ABC increased its production capacity from 3 million units to 3.2 million units. This was to cater for the growing demand of its products in the newly opened regional markets especially in Africa.
The last five years ABC ltd has experienced drastic changes for example, in 2009 the organisation computerized its operations in one of its branches in Tanzania. In the same year, the organisation laid off 20% of its workers. In order to reduce its costs of operations following a global economic crisis which seriously affected its financial position (Juneja, 2011). The organisation has also launched its strategic plan for the next decade within those five years outlining its goals and objectives for the next ten years.
Currently the organisation is undergoing some changes in terms of its social responsibility policies. The organisation is in the process of developing a frame work where it takes part in community services two times each and every financial year. The organisation has recently started a foundation in Kenya where it will be giving scholarships to the needy students to pursue their studies abroad. In the near future, the organisation is planning to reduce the number of manager’s in order to diminish the organizational hierarchy levels. It can be noted that the last five years have been of revolution effect in the organisation, in areas of its operations, in terms of creation, re-orientation and adaptation (with the ever changing business environment).
Political, Economic, Technological and Socio-Cultural Environment
ABC ltd. has the following external environmental factors facing them ensures that each and every factor provides an opportunity for growth while others are a threat to the existence of the organisation. Political environment is one of the factors that the organisation faces . Political instabilities, civil wars and violence in most of the countries of its operation have been a threat to the growth of the organisation (Kleiman, 2011). On the other hand, economic environmental factors such as inflations, economic crisis and high levels of unemployment have hindered the growth of the company sales volume in some regions which hit hard by these factors. Economic factors such as incentives, increase of the public expenditure on agriculture by many governments have provided an opportunity for the growth of the organisation.
Technological environmental factors have seriously impacted ABC ltd. The ever changing technological advances have helped to improve productivity in the organisation. These changes have also helped the organisation to produce high quality products, creating consumer confidence in its products. Technologic advances have also helped the organisation to reduce its costs of operation thus increasing its profits (Kotter, 2002). Technological environment can be said to be one of the most promising factors that will heavily impact on the organisation positively if well analysed. One of the environmental factors that have impacted on ABC ltd. are socio-cultural factors. These factors include changing cultural practices, increase in population among many other factors. These environmental factors have a positive impact on the organisation in terms of market availability and growth.
Indicators of Effectiveness
Managers are responsible for ensuring that effectiveness is enhanced within any given organisation. Any disparities in actual performance from the planned performance, they opt to develop mechanisms of correcting these disparities (Manfred, 2003).
The following are the indicators of effectiveness in an organisation or a department/unit:
(I)Stakeholders perspectives-do the stakeholders of the organisation perceive to be effective in terms of service delivery and satisfaction of their various needs.
(II) Level of assessment.
(III) Employee satisfaction.
(Iv) Organisation growth rate.