Developing People-centered organizations By Dr. Babandi Ibrahim Gumel.

Within an organization, there are people working round the clock ensuring that the success of such an organization is realized. People working within an organization must work in tandem with the stakeholders of the organization who are working towards the success of the organization because of their stake in the organization. Owners of an organization employed the managers of an organization who in turn employ the staff that will ensure the coordination of various functions of the firm to ensure the goals and objectives are achieved. Organizations must collaborate with suppliers of funds whether owners or creditors, suppliers of materials, regulators, and society to maintain success. Therefore, developing people-centered organizations become necessary especially when considering the issue of customer loyalty and customer convenience. Stakeholders of an organization work round the clock to ensure the maximization of their wealth which can only be possible when a firm issued customers the product they desired. Developing people-centered organizations requires organizations to understand certain norms and values stakeholders of such an organization.

The aim of the paper is to expatiate on the webinar I presented on developing a people-centered organization. Understanding how to develop a people-centered organization require knowing details on the following:

-       Behavior of people in the organization

-       The concept of people-centered organizations

-       Four significant landmarks in understanding and management of people in a workplace

-       Managing Diversity is key to the success of any organization

-       Ethical issues to consider

-       What the Executives Can Do About Ethics

-       Understanding Diversity in PCO

-       Managing Diversity in Organizations

-       Implications of Increasing Diversity

-       Competitive advantages of managing Diversity

-       Action Options of Managing Diversity

-       Diversity Initiatives

-       Achieving People-Centered Organization (PCO)

-       Tips for Becoming a people Developer

Kreitner and Kinicki (2013) defines organizational behavior as that aspect that deals with how people act and react in an organization of all kinds” Kreitner & Kinicki (2013). While Barnard, C. I. in 1938 defined Organization “as a system of consciously coordinated activities or forces of two or more persons (Barnard, 1938).” We can then define organizational behavior as the study of human beings and their behavior in a setting of workplace, and the interface of individual behavior, group behavior, and that of the organization. The categories of people in an organization are based on the followings: cadre, personality, education, temperament, responses, black, white, skills, owner, creditor, debtor, supplier, experience, and behavior, etc. while the purpose of creating an organization varies including business, schools, government, banking, bakery, church, and service organizations, etc. (Follett, 1949). Organizations either produce goods or render services to customers. The quality of goods produces by an organization may either be high quality, medium quality, low quality, or sub-standards. The performance of the services an organization rendered may either be high quality, medium quality, low quality, or sub-standards (Zemke, 1992). The way and manner people in organizations act, react, and behave are different resulting in different productive output and performance of organizations. Hence the need for the study of people’s behavior in organizations (K M Gilley, C. J., 2010). The knowledge accumulated can be used to develop tools that can be applied to find how people act within an organization.

There are four significant landmarks of understanding the management of people in a workplace and are as follows:

•       Human Relations movement - a satisfied employee is a Hardworking employee

•       The Quality movement - talk on improving the quality of both goods and services,

•       The internet and social media revolution - how managers can effectively communicate, supervise, and manage widely disperse people and teams linked through modern telecommunication and the internet.

•       The age of human and social capital - a new economic paradigm characterized by speed, innovation, short cycle times, quality, and customer satisfaction

People-centered organization (PCO) building blocks are two, human capital and social capital. Human capital is the individual’s productive potentials due to knowledge and actions. Social capital is arising due to the individual’s productive potentials because of his/her: strong relationships (network), established goodwill, trust, and cooperation efforts (Kwon, 2002). Management is working with and through others to achieve the objectives of an organization ethically, effectively, and efficiently in the wake of constant changes. Thus, understanding the behavior of people working in an organization will result in ineffective management. Managers must have the skills of coordinating the activities of people to achieve PCO. The most effective management approach to PCO is the contingency approach where problems are solved based on the situation (Becker, M. A., 2001). 

Ethical considerations are moral issues in organizations: concern for right versus wrong, or good versus bad within and outside as it relates to the organization. Examples of unethical behaviors to manage in an organization include:

- Theft of Time and Materials                 

- Lying to hide mistakes

- Misuse of Company Technology          

- Passing the buck (when you do not get your work done)

- Lying About Performance                    

- Slacking off when no one is watching

- Taking shortcuts / shoddy work

- Lying to hide your colleagues’ mistakes

- Failure to Maintain Safe Workplace     

- Taking credit for other colleagues’ work

- Taking shortcuts / shoddy work

- Lying about skills and experience

- Crossing Sexual Boundaries and Harassment

- Breach of Contract of employment or other relationships

- Bending the rules of business as per personal comfort

According to Business Society Review, ethical companies outperformed unethical ones by 200 – 300% in market value. According to Johnson & Johnson Research Study, $30,000 invested in 30 ethical companies over 30 years would yield 4.7x to the Dow Jones Industrials. The conference board stated that 40% of consumers would boycott an unethical company, 20% have already done so (Kreitner, R., & Kinicki, R. K., 2013). The Hudson Institute stated that workers in ethical companies are 6x more loyal. Ethical issues to consider when managing organizations include: to be ethical in practices, be a corporate citizen, make profit with taking social responsibility, obey host country laws, screen potential employees for ethical issues, train employees to enforce ethical matters, establish a system of dealing with unethical issues, and manage unethical issues to prevent image erosion of an organization (McGregor, 1960). The executives of an organization must understand the existing culture in an organization, communicate the importance of ethical standards in an organization, focus on the reward systems, and promote ethical leadership throughout the firm.

It is necessary for managers to manage the diversity of individuals working to achieve the goals of an organization (Organ, 2002). The many individual similarities and differences existing among people is referred to as diversity.  Diversity management is sensitive and volatile and requires understanding for effective and efficient management. Diversity best be understood based on layers in an organization. Layers of Diversity in PCO are the personality layer, the internal dimensions layer, external dimensions, and organizational dimensions (Stead, D. L., 1990). Managing diversity in Organizations include affirmative action of include or exclude, denial, to make people assimilate and learn to fit into the dominant group, to suppress differences by discouraging them or squelching them, to isolate individuals and put them on special projects, to make people acknowledge their differences and tolerate each other, build relationships that can overcome differences which can foster relationships among diverse groups, and fostering of mutual adaptation, where people are willing to change and adapt to views and create positive relationships in an organization. Mutual adaptation is the option that endorses the philosophy of managing diversity (McGregor, 1960). How to handle diversity in an organization depends on the situation on the ground. One option may manage it, but certain situations may require a combination of choices to manage and better diversity in an organization. Competitive advantages of managing diversity are its lower costs and improve the attitudes of employees, improves recruiting efforts, increases sales and market share increases creativity and innovation, and increases group problem-solving and productivity (Follett, 1949).

Tips for Becoming a people Developer include Motivate people to take charge for their own development formal performance-improvement plan should be integrated with individual’s development plan, rely on training and more training for the development of people within an organization, delegation is important to lighten the load and challenge people for development, know your people and their carrier aspirations, develop and use three-year development path when recruiting new people, and use creative rewards for people who take charge of their development.

Achieving an ethically, diverse, people-centered organization will result in the maximization of the wealth of stakeholders with happy employees, customers, shareholders, and all other internal and external stakeholders ready to take an organization to another level.

 References

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Follett, M. P. (1949). Freedom and Coordination. London: Management Publications Trust.

K M Gilley, C. J. (2010). The Bottom-Line Benefits of Ethical Code Commitment.

           Business Horizons, 31-37.

Kinicki, R. K. (2013). Organizational Behaviour 10th Edition. New York: McGraw-Hill.

Kwon, P. S. (2002). Social Capital: Prospects for a New Concept.

           Academy of Management Review, 17-40.

McGregor, D. (1960). The Human Side of Enterprise. New York: McGraw-Hill.

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