Lecture note on OB Needs of the organization Objective: This note further elaborates the need to balance three basic

objectives of business organizations, Focus on employees focus on customer and focus on organization. It describes the symptoms, causes and origins of overemphasis and under emphasis of these needs.( imbalance) 1 Over emphasis on employees needs would mean Pampering. When organizations give too much importance to individual needs of management or workers and neglect the primary task of organization it shows following symptoms. Symptoms: No action is taken on under performance. Giving negative feedback and confronting problematic behavior is avoided. People are unwilling to make sacrifices for organizations needs. Hard decisions of right sizing and closures are not taken Deadlines are not met and no learning from repeated mistakes takes place. No clear performance indicators are mentioned In the name of involvement and participation meetings become inefficient Origins of the problem of Pampering Managers are afraid of being rejected, not being loved, Organization is seen as a family and organization is for members of the family In a sellers market, successful organizations become fat. And inefficient Under emphasis on economic needs of the organization: leads to wastage of resources and becomes a threat to survival. Symptoms: Continuous shortage of working capital Suppliers are not paid in time ROI is lower than industry average Finance role is reduced to bookkeeping Underdeveloped intra organization information system,. Financial areas are not aware of financial implications of their decisions Causes Not for profit organizations, technocratic organizations. tend to over focus on customer value addition and employee needs. Lack of financial competencies. Overemphasis on financial need of the organization Money mania Focus is on economic principle of minimizing costs and maximizing profits There is no shared vision beyond profit targets. Symptoms Long term Investment in resources is delayed or postponed. Profit centers are favored to cost centers Nugatory issues are main concern of management No vendor developments as suppliers are on short-term basis Causes Money is perceived as the only value and Value addition to customers and value creation by employees are neglected