Therefore planning and making changes for the future before the decline sets in is the key to an organization’s long term success.
The way in which company’s decides to make these changes for the future are all defined in the company’s strategic planning. This process often involves making changes with respect to the organization’s environment and the overall quality management plays an essential role in promoting these changes within the organization. Furthermore the allocation and utilization of human and financial resources to their best possible areas is also very important. The leadership of the organization plays a very important role in driving the organizational values and motivating its individuals to superior performance. Once individuals in an organization are propelled to do their job with full commitment, the organization is moving towards its success.
This can be observed in the real life cases where organizations mature, move towards success, and sometimes if effective management is not taken care of the decline sets in and the organization loses its market share, shareholders’ trust and consequently losses may result. This is because the financial well-being and success of a company is totally dependent on the responsive, proactive and effective management. It should also be noted that employees who are well managed and motivated are able to overlook many shortcomings and grievances provided by the organization. Recent studies have shown that the employers who believe they have excellent managers are five times more likely to be highly engaged in organizational activities and its overall success than those employees who rate their managers and supervisors as poor. The following graph clearly depicts this relation (The Advisory Board Company, 2011).
Therefore it is often said that the managers can either make or break an organization.