Management Theory Practice Report: L&T Company Effectiveness

This report provides an analysis of management theory practice, specifically examining the effectiveness of Larsen & Toubro (L&T). The report begins by defining organizational effectiveness and its importance in the marketplace, highlighting the company's focus on heavy engineering, construction, and financial services. The author, drawing upon their experience, discusses the company's financial performance, including recent profit increases, as a key indicator of effectiveness. The analysis extends to stakeholder perspectives, considering both investors and customers, emphasizing the importance of financial operations for investors and long-term product/service plans for customers. The report concludes that L&T is functioning effectively, suggesting that the company should consider the stakeholders’ needs and demands to improve its services and maintain success in the marketplace. The report references various academic sources to support its claims.

Running head: MANAGEMENT THEORY PRACTICE
Management Theory Practice
Name of the Student
Name of the University
Author Note

1MANAGEMENT THEORY PRACTICE
An effective organization is sad to be the one which can performs its functions
successfully and met the needs of its clients and customers. In other words, effectiveness
helps the owners of the organization to compete its rivals in the marketplace. The company
earn huge profits in the marketplace from functioning effectively. I, during all my years of
employment have served under of organizations. However, in this case, I would discuss my
service under Larsen and Toubro as well as discuss the reasons for considering the company
to be most effective in its service.
However, before I start to discuss the various reasons why I consider the organization
to be effective, it is important to know the purpose and scope of the company. As well all
know, Larsen and Toubro is one of the well-known Indian companies which have its offices
in the cities of many countries of the world (Cameron, 2015). It is well known to all that the
company mainly has interests in the businesses of heavy engineering, construction,
manufacturing of goods and other services. In addition to this, the company has a number of
divisions which deal with various other areas, including those of the financial services in the
world. The company is said to have 93 subsidiaries, 8 associates, 34 joint ventures and 33
joint operations companies.
While talking about the scope of the company, I felt that the main aims of the
company is to maintain an innovative and entrepreneurial team which will constantly create
value among the clients and the customers. In addition to this, I also feel that the scope of the
organization would be to create a culture of trust and continuous learning for the employees
while at the same time, meeting the expectations of the employers, stakeholders and the
members of the society as well. I feel that these scope of the company will allow it to
successfully meet the demands of the target audience in the market (Argyris, 2017).

2MANAGEMENT THEORY PRACTICE
While analysing the effectiveness of the company, I would like to state the fact that a
company’s effectiveness can be various grounds like internal and the external structure of the
company, the financial operations of the company, the profits they earn and also the long
terms planning which the owners of the company have. Among all these criteria, the one
which I would feel to be the most important is the profits earned by the company form the
marketplace. Thus is the most important because this will attract the audience to the company
and its products and the services (Argyeris, 2014). In this case, it is important for me to
mention the fact that the company has been earning huge amount of profits from the
marketplace. This is evidenced by the fact that the company had recently reported a huge leap
which is a total of 43.14 cent jump in the case of the consolidated net profit of Rs. 1472 crore
for the first quarter of the year. In addition to that, I also found the fact that the total income
of the company had increased at a rate of 17. 12% from the previous years (Cameron, 2015).
Thus, it is from this, that I can conclude the profits earned by the company which had helped
me to use this criteria as one of the ways for measuring the effectiveness of the company.
However, in this case, I would also like to add the fact that there are other criteria in
the company which can also be used to analyse the effectiveness of the organization of the
company. I would include these stakeholder groups to be the investors as well as the
customers of the organization. While talking about the investors, I would like to focus on the
fact that the investors would mainly focus on the financial operations of the organizations.
This is because of the fact that the investors would only be interested in the company if the
company is able to earn much profits in the marketplace (Van der Voet, 2014). In the case of
Larsen and Toubro, I found that the company had a strong financial operations, which is
being carried out by them in the marketplace. The amount of profits that is being earned by
Larsen and Toubro in the marketplace is one of the reasons why the potential investors and
the shareholders in the market would want to invest more in the company itself. In addition to

3MANAGEMENT THEORY PRACTICE
this, I also believe the fact that the company is also capable of earning more profits from the
marketplace through the business they have been carrying in the market (Cameron, 2015).
The investors would consider this to be the most effective for the successful running of the
organization and earning profits in the marketplace (Cummings et.al, 2014) part from the
investors, I also feel the customers would like to measure the effectiveness of the
organization as well. I believe the customers would like to evaluate the effectiveness of the
organization on the basis of the long term plans of the company, This means that the
customers are more interested towards the products and the services which the company have
been providing to the customers over the years (Van Der Voet, 2014). These include all the
financial services as well as the products and the services related to heavy engineering. The
customers are mostly interested in the future products and the services which the company
would bring to the market. The more interesting products and services the company brings to
the market, the more customers it would attract.
From the analysis of the effectiveness of the company form the perspectives of
different stakeholders, I state that Larsen and Toubro is indeed functioning effectively. The
various areas of the effectiveness as stated by the investors and the customers can be taken
into account by the company to improve its services (Argyris, 2017).
If the company improves its services according to the needs and the demands of the
stakeholders, then I believe that Larsen and Toubro will be always be successful in the
marketplace due to its effectiveness.

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Reference List
Argyris, C., 2017. Integrating the Individual and the Organization. Routledge.
Cameron, K., 2015. Organizational effectiveness. Wiley Encyclopedia of Management, pp.1-
4.
Colbert, A.E., Barrick, M.R. and Bradley, B.H., 2014. Personality and leadership
composition in top management teams: Implications for organizational effectiveness.
Personnel Psychology, 67(2), pp.351-387.
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage
learning.
Jones, R.J., Woods, S.A. and Guillaume, Y.R., 2016. The effectiveness of workplace
coaching: A meta‐analysis of learning and performance outcomes from coaching. Journal of
Occupational and Organizational Psychology, 89(2), pp.249-277.
Sundqvist, E., Backlund, F. and Chronéer, D., 2014. What is project efficiency and
effectiveness?. Procedia-Social and Behavioral Sciences, 119, pp.278-287.
Van der Voet, J., 2014. The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational structure.
European Management Journal, 32(3), pp.373-382.

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