Organizational Effectiveness: The Importance of HRM and Theories of Personality, Intelligence, Leadership and Culture

This essay discusses the effectiveness of organizations in the global market, focusing on the importance of HRM and theories of personality, intelligence, leadership, and culture. The analysis presents an interesting observation related to effectiveness of organizations and connects these levels with HRM.

Running head: ORGANIZATIONAL EFFECTIVENESS
ORGANIZATIONAL EFFECTIVENESS
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The aim of this essay is to discuss the effectiveness of the organization currently
operating in the global market. Efficiency of the organizations in the current setting ca be
achieved when the organizations after the needs of the different aspect of its operation. These
efforts by these companies have a sharp difference with the companies operating
internationally before a decade ago. Therefore, with the change of time and technological
advancement, the structure and strategies of these organizations have changed. In attaining
efficiency, the organization needs to become organized in all aspects. In order to get a clear
idea of organizational effectiveness, it is essential to get a proper understanding of all the
criteria of development (Kuipers et al. 2014). This is important because, sometimes, the
failure of the organizations cannot be measured though financial success only then the leader
can identify the gap in the sectors what cause this failure. In this essay, the efficient factors
will be discussed through support of the various theories and models. This analysis will
present an interesting observation related with effectiveness of the organisations and connect
these levels with Human Resource Management.
The organizational efficiency or effectiveness is defined to be the capability of the
organization to meet all their goals and objectives. This means that the success or failure of
the organization largely depends on the production of the desired effects with minimum
expenditure of time, money, energy, material and human resources (Yang 2015). This is the
result originated from the collective effort of individuals, groups and whole organization to
maximize profit. According to the critics, there are two aspects through which the leaders of
the current global organizations measure their success. This include the organization’s
achievement in net profitability in comparison to the target profitability in one hand and the
growth data and achieved customer satisfaction.
Highly effective companies exhibit strengths mostly in the structure of the
organization, work processes of that firm, its workforce, systems, the decision-making

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procedures, organizational culture and most importantly the leadership styles. In order to
achieve as well as sustain the success, the organizations need to focus on every part of its
composition as well as maintain a dynamic environment. In addition to this, for ensuring
the continued growth or development of the organization the leaders need to evaluate the
effectiveness and improve them from time to time (Connell and Burgess 2016). For gaining
success in the market, the organization needs to grant different criteria of the individual,
groups and consider the through a self-assessment thus the leadership gets strengthened
and culture gets nourished to accept any type of challenges and overcome them.
Proper understanding of the organization’s effectiveness is important because this
serves the leaders to identify how well the internal procedures are meeting the initial
vision of the company. This knowledge provides the investors, employees, shareholders and
other associates about the strength of the companies and the areas of ineffectiveness so that
proper measures for improvements can be identified (Yeandle et al, 2015). This is the reason
why every part of the organization needs to have a strong connection with one another to
enhance its financial performance, internal structure, long-term planning and devotion
to the core values so that the critical components barring organizational effectiveness can be
mitigated and the organization can flourish without any problem.
In understanding the responsibilities of these components of the organization to
enhance effectiveness, theoretical framework is important. This is due to the fact that based
on the theories the HRM can segment their workforce effectively. This will help the
management to identify the traits of the individuals and use them in gaining effectiveness of
the corporation (Carlos, Paula and Dibb 2014). In this regard, the theories of personality,
intelligence, team building, leadership and organizational culture can be discussed. All of
these theories somehow relate to the human resource management process as the individuals,
groups are organized workforce are the drivers of innovation and effectiveness of the

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organization. The personally traits have mainly two kinds. One is associated with types of
personality and another is trait. The theories of personality type can be related to the Myers-
Briggs. This theory defines how the personality of the people changes based on their
psychological types (Al 2015). Some are introverts or extraverts based on their focus area,
sensing or intuition based on their style of taking information and judging or perceiving in
terms of their dealing process. People are different through their thinking and feeling types
while making decisions.
Another set of critics support the Trait theory named Big Five by Ciosta and
McCrae where the personality of the individuals has been divided into five sections. The four
factors namely contentiousness, extrovertism, agreeableness and openness to experience can
be used quite positively by the HRM but the factor of Neuroticisms is a negative factor that
makes the workforce moody, anxious and self-deprecate an prevent both personal growth as
well as the growth of the teams. Based on these factors, the employees of any organization
show their own level of job satisfaction, unionization and performance (Saleem, Saqib and
Zahra 2015). In order to make the organizations effective, providing job satisfaction of the
employees is one of the toughest things that the organizations face. By growing positive
relationship with the active, innovative and dutiful employees, the organizations can create a
positive ambience in the workplace this enhance job satisfaction of the employees. In order to
enhance performance of the employees the organizations can encourage the conscientious
employees who design innovation of the organizations itself and enhance the production of
the firm (Barrick et al., 2015). By balancing the positive nature of the workforce and the
negative personalities of the employees the organization can efficiently fit the employees at
the right place and increase their effectiveness.
Not only the personality of the employees, but also their intelligence is important for
the organizations. This is due to the fact that based on their intelligence, the organization

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change their strategies, invest on the product or process innovations and operate the whole
business. In this regard, the recruitment process of the HRM identifies the best fit employees
for their business through the models of intelligence. According to Two-Factor Theory of
Intelligence, the employees’ can be divided into two factors one is S and another is G. S is
associated with the specific abilities of the people and G is related with cognitive abilities.
The second factor actually differentiates the capable employees from the others as they
perform better even in the challenges. On the other hand, Sternberg’s Triarchic Theory of
Intelligence is based on the three factors. This model clearly identifies the employees based
on their creativity, practice and analytical potentials so that the HRM can put them in the
position correctly matching their talents and support the growth of the organization.
For gaining the competitive advantage by increasing its effectiveness, proper
utilization of the leadership skills is necessary. This is due to the fact that the leaders are the
guiding entity who are followed by the employees in an organization. They are responsible
for decision making in support of the organizational growth and maintaining all the growth
factors within the organization (Shanafelt and Noseworthy 2017). The method of
understanding the personality of the leaders as well as their intelligence are not the only
factors that the organizations need but they also need to identify the proper leadership style
best fit for themselves. Through various leadership theories, the organizational leaders can
identify their traits and style matching with the need of the situation to gain effectiveness.
The most popular and used theories of leadership are the Trait Theory, style theories,
contingency theories and some new theories matching the needs of the current business
situations (Kennedy and Chen 2015). As per the trait theory, the leader is not created rather
they inherit some quality is which get exposed with time and condition. The another most
popular theory is the Style theory. According to the scholars of Michigan University Study,
the leaders have different styles which make them effective or ineffective for the

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organizations. This theory differentiates three dimensions of the leadership behavior which
include the task-oriented leaders, relationship oriented and participative leadership. In order
to gain the organizational effectiveness, the leaders their styles depending upon different
situation and different time (Landis, Hill and Harvey 2014). Based om this view the Ohio
State University Study has modified leaders style sin consideration and initiating structure
factors that reduces the ambiguity of nature of the leaders and make them more effective.
On the contrary, the Contingency Theories focus on the growth of leadership
qualities based on the situation where the leaders behave perfectly and act as per the
situations need (Belias and Koustelios 2014). Both Fielder’s Contingency Theory as well as
Vroom and Yetton’s Contingency Theory, support the fact that the most successful leaders
interact with the situations and use their authorities to bring context in decision making. The
new theories like Transactional and Transformational Leadership and Leader-Member
Exchange (LMX) deal with the influence of the leaders upon their employees. These discuss
about how the leaders manage their followers’ behavior in their support and smoothen the
operation of the organizations. This can be rewards, punishment, relation building and
various types of stimulations like motivation and finally own charisma. The most charismatic
leaders can transform the most useless team to be the best performing and responsible team
though their power to influence ideology and behavior of the subordinates.
As mentioned before, the organizations operate in different level which consist of both
individual an teams and success of the organizations depend on ability to bring these two
factors and make one organization. Therefore, team building is mandator. Both Punctuated-
Equilibrium Model and five stage model deal with the cohesiveness, social facilitation and
social loafing (Magotra, Sharma and Sharma 2015). For the development of the organizations
proper maintenance of the groups is mandatory as these can affect the individuals just as the
individuals affect the groups. These groups actually form the organizational culture. The

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organizational culture of any organization is of four types which include, clan, adhocracy,
hierarchy and market culture. On the other hand, Weber and Fayol models capture the
broader aspect of organizational bureaucracy.
The most important aspect of the organizations’ effectiveness is their employees as
they are the pillar based on which the whole organization operates. The workforce is the first
component that points out whether the company needs any changes in the leadership or
strategies (Allameh et al., 2015). This aspect of any organization is closely connected to the
policies and regulations of the human resource segment of the company. This part of the
organization takes care of the recruitment, encouragement, retention and managing this most
important resource of the companies. Starting from the leaders, managers and other
employees HRM takes care of this whole human resource and influence them to achieve the
organizational goals collectively. Models of HRM includes Michigan Model, Harvard
Model, Guest Model and Dave Ulrich’s HR Multiple Roles Model (Fiedler 2015). These
models help the HRM to manage all the internal issues regarding its human resource.
The most important insights from this analysis can be found that the organization has
a much wider context where all the stakeholders including the employees do not only play
role according to their responsibilities. The effectiveness of the companies will be gained
only when all these players relate to organization understand the requirements and do
accordingly, then only the company can flourish and get the best result in the market.
Therefore, it can be said that the organizations in one hand needs the skills,
personality, understanding, connectivity with the organizational culture and intelligence of
the individuals and on the other hand it needs their collective measures to operate
successfully to gain competitive advantages and effectiveness. HRM manages the employees
both individually as well as collectively hence this part is the most responsible to contribute

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in the company’s growth. HRM follows models and strategies to understand the type of their
workforce an bring them in the path to reach the desired destination. Hence it can be said that
through proper organization of the individual and teams, growth can be attained as well as
effectiveness.

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