Report Plan
Executive Summary.3
Introduction.3
Methods used4
Findings4
Analysis.4
Conclusion.5
References.6
Appendix7
Report Plan
Organizational Use of Standards to improve Performance
Executive Summary
Organizational standards lay out the manner in which a particular organization is supposed to conduct its business. The standards act as a governing body that establishes what the workplace deems to be an acceptable behavior. It is the responsibility of the organization to ensure that all the employees are aware of what the organization requires of them in terms of standards. The communication made by the organization relates the code of conduct in the organization, customer service delivery, human resource implications, quality assurance within the organization, issues of legislation and corporate presentation and dressing. In addition, the organization also communicates matters relating to material marketing and public relations and communication (Stankard, 2002, p.3).
Communication on material marketing is very important since it encompasses the public image of the organization. The manner in which the employees relate with the organization’s clientele is important for the organization. It matters because it determines how much good will the organization can accumulate. Goodwill is an intangible asset which determines how much value the company has and its ability to retain its market share.
This report plan examines the importance and relevance of organizational standards in detail. The statement of the problem will give an insight to the reason organizations need to adhere to the use of organizational standards. It is also important to take into account the nature of business which the organization is dealing. There are some professions such as accounting, banking and auditing which have already existing standards that must they follow. For such professions, the organization must adhere to the already established set of standards and policies. An example of such standards is the International Financial Reporting Standards.
Introduction
The report aims at comparing the performance of an organization when it employs the use of standards and when the organization fails to use the standards. Standards are tools meant to build the performance capacity of the organization. The standards help the organizations to ensure that the organizations are operating as required by the law. The standards also help organizations to function at their optimal level. Based on the nature of the organization, the importance of organizational standards varies. Governmental organizations need standards to obtain the input of the agencies. The government can bridge the relationship between local and national level service delivery. The reported plan sets out to prove that standards and organizations are two independent entities which depend on each other. Optimal performance of organizations relies on standards whereas the standards cannot exist if there are no organizations.
Statement of the Problem
The problem emanates from poor performance of organizations in cases where they do not apply the use of standards. Organizations that do not apply follow set organizational standards have reduced agency costs. Agency costs result from the relationship between the management of the organization and the clients who expect services from the organization. If the organization follows and adheres to clearly stated standards, most of the customers will believe that there is transparency by the management of the organization (Ely & Waymire, 1999, p. 4). As a result, the organization will not incur high agency costs since there is little need to do follow up activity to prove the integrity for the clients. On the contrary, companies that do not use organizational standards incur high agency costs. The costs result from the need by the organization to use help from third partie4s to show their integrity. Organizations may be required to make their affair public. For instance, they may be required to publish them in public gazettes. They may also be required to employ the services of auditors to prove the integrity in their financial affairs. Frequent audits may be necessary.
Method Used
The method used in the report plan includes the random sampling of organizations in the retail industry. The organizations are used as case studies to analyze the costs incurred in two different periods. One of the organizations used is Waitrose Company limited. The company is a multinational grocery retailing company. In the study, two periods were chosen. In the first period, the company did not issue sales invoices to its clients. In the second period, the company developed a policy of issuing sales invoices to all the clients who made cash and credit purchases.
The aim of the invoices was to indicate the amount of value added tax levied on the purchases made. The invoices would enable the customers to understand the reason the company charged the particular price for the goods. The price was meant to cater for the tax levied and the profit margin set by the company.
Findings
The company incurred fewer costs in the period that it issued the sales invoices were issued. The invoices indicated how the costs had been added together to reach the final cost which was passed down to the eventual consumer in the name of the price.
Analysis
Issuing invoices is one of the standards that were instituted by the company. For every sale made by the salespersons of the company, it was mandatory to issue an invoice to the client who made the purchase. When the clients receive the invoices, it acts as a measure of financial full disclosure. The company shows integrity hence making the clients gain trust in the manner in which it offers its services. There is no need for frequent publications to prove the integrity of the company.
The organizational standards create goodwill for the company such that the clients gain trust in the principles it has adopted for offering its services. In addition, the standards ensure that quality goods and services reach its clientele. The quality comes through the management who supervise the other employees to ensure that the services accrue to the customers as per the required standards.
Conclusion
Organizational standards are directly related to the performance of the organization. The relationship stems from the cost factor of the organization. If the organization can reduce the costs it incurs, the profit margin will be raised. The increased profit margin is, as a result, of organizational efficiency. The organization maintains the same level of efficiency at a lower cost. The market share may increase yet the organization may not have made capital investment in the marketing and advertisement department (Fritz, Arnett & Conkel, 1999, p.5). Organizational standards are enough to increase the goodwill of the company by raising the confidence of the customers. The standards maintain the quality of services in the organization without incremental costs. The case of Waitrose Company shows the cost factor organizational standards.
References
Ely, K., & Waymire, G. B. (1999). Accounting Standard-Setting Organizations and Earnings Relevance: Longitudinal Evidence from NYSE Common Stocks, 1927-93. SSRN Electronic Journal. doi:10.2139/ssrn.158509
Fritz, J. M., Arnett, R. C., & Conkel, M. (1999). Organizational Ethical Standards and Organizational Commitment. Journal of Business Ethics. doi:10.1023/A:1005939325707
Stankard, M. F. (2002). Management systems and organizational performance: The quest for excellence beyond ISO9000. Westport, Conn: Quorum Books.
Appendix
Organizational standards are directly related to the agency costs which are incurred by an organization.
Financial full disclosure is among the standards that can be adopted by the organization.
Organizational standards guarantee quality products to the customers.
