A Report Paper on

Determinants of Organizational Effectiveness through Leadership Qualities

Company: Scania AB

Leadership

BUS 1202

Submitted by

Tasmin Nahar Nishi B3160B004

Md. Miad Hossain B3160B022

Zulfikar Pasha Dipto B3160B024

Md. Shahiduzzaman Shanto B3160B026

Showkat Ahmed B3160B034

Submitted to

Munshi Muhammad Abdul Kader Jilani

Assistant Professor

Submission Date: 20th November, 2016

Declaration

I’m declaring that, this report paper has prepared by me and it was not submitted to any other organization or institute before. The work is not breach any copyright.

Date & Sign

Tasmin Nahar Nishi ID no.B3160B004 BBA 3(A) Sign:

Md. Miad Hossain ID no.B3160B022 BBA 3(A) Sign:

A.I. Zulfikar Pasha Dipto ID no.B3160B024 BBA 3(A) Sign:

Md. Shahiduzzaman Shanto ID no.B3160B026 BBA 3(A) Sign:

Showkat Ahmed ID no.B3160B034 BBA 3(A) Sign:

Acknowledgement

At first, I want to express my gratitude to our honorable faculty Munshi Muhammad Abdul Kader Jilani who provide a great support and inspiration to make this report. I want to thank him from the deep of my heart to give me this opportunity.

Date & Sign

Tasmin Nahar Nishi ID no.B3160B004 BBA 3(A) Sign:

Md. Miad Hossain ID no.B3160B022 BBA 3(A) Sign:

A.I. Zulfikar Pasha Dipto ID no.B3160B024 BBA 3(A) Sign:

Md. Shahiduzzaman Shanto ID no.B3160B026 BBA 3(A) Sign:

Showkat Ahmed ID no.B3160B034 BBA 3(A) Sign:

Abstract

Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. Organizational Effectiveness groups in organizations directly concern themselves with several key areas. They are talent management, leadership development, organization design and structure, design of measurements and scorecards, implementation of change and transformation, deploying smart processes and smart technology to manage the firms' human capital and the formulation of the broader Human Resources agenda.

This report paper is done by using secondary data which is collected from internet.

The broader idea of organizational effectiveness is applied for non-profit organizations towards making funding decisions. Foundations and other sources of grants and other types of funds are interested in organizational effectiveness of those people who seek funds from the foundations. Foundations always have more requests for funds or funding proposals and treat funding as an investment using the same care as a venture capitalist would in picking a company in which to invest.

Finally, from the above discussion, we can declare that Scania can compete and rule the market because of its good leadership qualities. A big number of employees mean a big number of satisfied people. If employees are dissatisfied, the company can’t reach to its progress.

Table of Content

Title Page no.

Declaration-------------------------------------------------------------------------------------------------i

Acknowledgement----------------------------------------------------------------------------------------ii

Abstract----------------------------------------------------------------------------------------------------iii

Chapter 1: Introduction---------------------------------------------------------------------------------1

Chapter 2: Literature Review--------------------------------------------------------------------------2

Chapter 3: Methodology------------------------------------------------------------------------------3-4

Chapter 4: Discussion----------------------------------------------------------------------------------5-9

Chapter 5: Conclusion----------------------------------------------------------------------------------10

Reference

Chapter 1

Introduction

Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. Organizational Effectiveness groups in organizations directly concern themselves with several key areas. They are talent management, leadership development, organization design and structure, design of measurements and scorecards, implementation of change and transformation, deploying smart processes and smart technology to manage the firms' human capital and the formulation of the broader Human Resources agenda. If an organization has practices and programs in the areas above, the OE group does many or all of the following roles

Examines alignment between the areas and improves them Improves trade-offs between reliability, speed and quality in the above areas Strategizes for higher adoption rates in these areas Facilitates capability building : structure, process and people

Rapid advances in social sciences and technology aided by clever experimentation and observation is bringing several truths to the light of society. There are several disciplines of social sciences that help the OE Practitioner be successful.

Four of them are outlined below

Decision Making - Ways in which real people make decisions, enabling them real time to make good decisions, improving quality of decisions by leveraging adjacent disciplines ( for example- Behavioral economics) and replicating relevant experiments, creating new ones and implementing their results to make organizations effective

Change & Learning – Ways in which real people learn, change, adopt and align, get “affected” by dynamics in the environment and leveraging this knowledge to create effective organizations that are pioneers of change and learning

Group Effectiveness – Ways in which real people work well together, especially in bringing new ideas and innovation, working of people to people protocols, impact of digitization and virtualization in organizations on these protocols

Self-Organizing & Adaptive Systems– Ways in which self-organizing systems and highly networked systems work, learning from them and the tangible ways by which they can be put to play to make organizations more effective

Chapter 2

Literature Review

According to Charles A. Motzko, PhD, he found that, Gawande and Wheeler succinctly stated that, “In government organizations, a stumbling block to provide incentives is the inability to measure performance carefully”. Gawande and Wheeler’s admonishment may be applied to the lack of structured NMI organizational effectiveness measures uncovered in this research. This theme regarding the inability to measure performance accurately is the basis for this research project.

Chapter 3

Methodology

Secondary Data Collection

Data collection is a process through which we collect data. Data can be collected in various methods like secondary data collection and primary data collection. A primary data collection refers to collecting data in fields and secondary data collection refers to the data that we collect from various web pages and books. We use this type of data collection to lessen our work or to save times.

Data collected

from various online media

Elimination and selection

process

Analyze process

Implementing new ideas

and solutions

Providing recommenda

tions

3.1 Data collected from various external sourcesOur data has been collected from various external sources like webpages (the links are given in the reference) & also many books written by famous authors (also given in the reference).

3.2 Elimination and selection processAs we have collected many data from internet webpages and books, many data were eliminated and some specific legit information or data has been selected.

3.3 Analyze processAfter collecting and eliminating and selecting data we have gone through some basic analysis process whether the founded information was right or wrong.

3.4 Implementing new ideas and solutionsAfter analyzing these data we have implemented those data for our data finding and have given some new ideas and solutions.

3.5 Providing recommendationsWe have generated some new ideas and solutions and have also provided some recommendations from the view of our perspective.

In Addition, it is both a qualitative & quantitative research because; we have to use both numerical & alphabetic data to complete this research.

Chapter 4

Result and Discussion

The broader idea of organizational effectiveness is applied for non-profit organizations towards making funding decisions. Foundations and other sources of grants and other types of funds are interested in organizational effectiveness of those people who seek funds from the foundations. Foundations always have more requests for funds or funding proposals and treat funding as an investment using the same care as a venture capitalist would in picking a company in which to invest.

According to Richard et al. (2009) organizational effectiveness captures organizational performance plus the myriad internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation (either by shareholders, managers, or customers), such as corporate social responsibility.

However, scholars of nonprofit organizational effectiveness acknowledge that the concept has multiple dimensions and multiple definitions. For example, while most nonprofit leaders define organizational effectiveness as 'outcome accountability,' or the extent to which an organization achieves specified levels of progress toward its own goals, a minority of nonprofit leaders define effectiveness as 'overhead minimization,' or the minimization of fundraising and administrative costs. Hence, Organizational effectiveness is typically evaluated within nonprofit organizations using logic models. Logic models are a management tool widely used in the nonprofit sector in program evaluation. Logic models are created for specific programs to link specific, measurable inputs to specific, measurable impacts. Typically, logic models specify how program inputs, such as money and staff time, produce activities and outputs, such as services delivered, which in turn lead to impacts, such as improved beneficiary health.

The Top 5 Determinants of Organizational Success are given below:

A core driving force of creating happiness The right people in the right roles An effective strategic plan and implementation Continuous improvement of leadership and management capabilities Continuous improvement of business practices based on customer needs

A core driving force of creating happiness

Aristotle said, “Happiness is the meaning and the purpose of life, the whole aim and end of human existence.” Stephen Covey said, “Start with the end in mind.” These gentlemen were a strategic planner’s dream—they went right to 50,000 feet and set the number one priority right out of the gate.

The research from the field of Positive Psychology tells us that after you meet your basic needs for food and shelter with a little left over for recreation (which only requires about $75,000 a year), there are 3 main determinants of happiness:

Fulfilling relationships with others. We’re highly social beings. Among other benefits, at a very basic level this improves our chances of survival. Leaders, think “benefits of teamwork.”

A “flow” experience in which you lose track of time because you’re engaged in the pursuit of challenging and meaningful goals. Leaders, think “engagement.”

Making a difference in the world and in the lives of others. Leaders, think “empowerment and autonomy.”

My experience validates Peter Drucker’s observation that an organization and the people in it need more than a profit motivation alone to create sustained success.

Too often I encounter leaders who snigger at these facts and maintain that they are “touchy feely fluff.” They do so due to their own fears, insecurities, and insufficient emotional intelligence. If you’re not valuing enjoyment over achievement and people over money, then you’ll never enjoy sustained success as an individual or as the leader of an organization.

If you think managing people relationships is tough, try being a loner and a misanthrope for a while…

The right people in the right roles

Many leaders still don’t pay enough attention to this. If you have a team of “C Players” and you compete against a team of “A Players” we both know what’s going to happen. By the same token if you have your Center playing Wide Receiver we both know what’s going to happen. Jim Collins calls this “having the right people in the right seats on the bus.”

An effective strategic plan and implementation

You’d be surprised at how many leaders are still working from some form of “ad hoc” strategy that resides mostly in their heads. Others follow the once-a-year SPOTS (Strategic Plan On Top Shelf) approach. Getting senior leaders to commit to ongoing strategic planning and implementation can be challenging. Remember, leaders have two basic roles: a) running today’s business, and b) building tomorrow’s business.

Continuous improvement of leadership and management capabilities

Organizational success is all about leadership, and the bottom line is that an organization’s only real limitations are the limitations of its leader. This is the Trickle Down Law in action. Also, how can you have sustained success over time if you don’t have strong leadership and management bench strength?

Are your leaders competent in creating a proactive and ongoing strategic leadership system, or are they just moving from one crisis to another? For example, are they skilled in leadership and management competencies such as: strategic thinking and planning, project management, hiring the right people, emotional intelligence, communication skills, coaching and building talent, leadership and motivation, succession planning, innovation, change management, performance management, conflict resolution, financial management, sales and influencing skills, customer focus, presentation skills, meeting effectiveness, and facilitation skills?

Continuous improvement of business practices based on customer needs

There’s a name for organizations that aren’t customer focused—Chapter 13. Think Kodak. Peter Drucker said that any organization has two basic functions: a) marketing (creating and then serving customers), and b) innovation (continuous improvement).

Satisfying your customers’ needs is the lifeblood of your organization. As the world changes, your customers’ needs change, and so you need to be continuously improving your business practices to meet these new needs. As Jack Welch said, “If the rate of change outside of an organization is greater than the rate of change within it, the end is in sight.” Do you have a strategic leadership system in place to continuously improve your organization? Do your competitors?

TECHNIQUES

Technique #1: Make creating happiness the core driving force of your organization.

Technique #2: Get the right people in the right roles.

Technique #3: Create an effective strategic plan and implementation.

Technique #4: Continuously improve your organization’s leadership and management capabilities.

Technique #5: Continuously improve your business practices based on your customers’ needs.

Leadership Qualities

a) Power: First ingredient of leadership that is the potential ability to affect the behavior of others.

Legitimate: Power, which is gained through organizational hierarchy.

Reward: Reward is one of the best motivational factors which is controlled by the managers.

Coercive: This type of power is applied to force compliance via psychological, emotional or physical threat. It means punishment

Referent: Based on identification or limitation, this power is more abstract than other power.

Expert: This power is derived from specialty or expertise.

b) Fundamental Understanding of people: Motivation can’t be established by theories rather than practical

c) Ability to inspire followers: Inspiration comes from leaders & it’s not a matter of need satisfaction.

d) Ability to develop a climate conducive to arousing motivation: Climate or environment created in the organization by the leader.

Scania strengthens its position in emerging markets through Regional Product Centers located in six emerging markets, with about 370 employees. These employees work with assembly, bodywork, and fitting locally-adapted vehicles.

About 19,200 employees work with sales and services globally. The network and mobile service solutions enable to be close to the customer in order to provide support on site where the products are used.

Some 860 employees work with financial services, supporting customers in many markets worldwide by providing finance solutions and vehicle insurance. By offering financing on good terms together with an efficient claims management service and rapid repairs, with access to Scania’s entire service network, downtime and lost revenue for customers is minimized.

Company: Scania AB, Volkswagen Group

With 44,000 employees in 100 countries, Scania is strategically placed within the customers’ operations. The head office, with 5,600 employees, is located in Södertälje, Sweden. About 13,200 people work at production units in seven countries in Europe and Latin America. The modular product system and a global interchange of both components and vehicles create flexibility.

Scania becomes one of the biggest Commercial Vehicle Manufacturer because of their effective leadership. Can we imagine a company where a large amount of people works; have a lot of problem in leadership qualities?

Considerable resourcesThis is why Scania invests considerable resources in training programmes within Scania Academy for the company’s managers. One of these is the course Scania Leadership Advanced to which leaders across the company are hand-picked. The participants take part in two one-week modules to hone and develop their leadership skills.

How they build great leaders?

The participants work with individual objectives, both related to their own leadership role and also to their professional role and operational strategies,” explains Kent Conradson. “Meanwhile, their managers are actively engaged. Participants are also given assignments to carry out before, during and after the course.

1. Insights from leadership courses

2. Take an interest in your staff

Scania’s six leadership principles

-Coordinate but work independently, take responsibility

-Work with the details, understand the context

-Act now – think long term

-Build know-how through continuous learning

-Stimulate commitment through involvement

-Dare to try – manage the risk

Scania’s leadership and employee ship principles:

1. Coordinate but work independently – take responsibility2. Work with details and understand the context3. Act now – think long-term4. Build know-how through continuous learning5. Stimulate commitment through involvement

So, we can say that Scania can achieve this employee satisfaction because of their strategy of maintaining Leadership Qualities.

Chapter 5

Conclusion

Finally, from the above discussion, we can declare that Scania can compete and rule the market because of its good leadership qualities. A big number of employees mean a big number of satisfied people. If employees are dissatisfied, the company can’t reach to its progress.

Reference

https://www.scania.com/group/en/building-great-leaders/

https://www.scania.com/group/en/inspiring-day-about-leadership/

https://www.scania.com/group/en/scania-at-a-glance/