QUESTION FIVE
In the earliest theories of organisational behaviour, organisations were viewed as
rational institutions whose primary purpose is to accomplish objectives. The more
efficiently and effectively an organisation can achieve its goals, the more successful it is according to this approach. Quite often, the bottom-line goals of organisations are focused on profitability.
Analyse these statements and critically discuss the goal attainment approach as well as its limitations.
The goal attainment approach, which views organisations as rational institutions whose main purpose is to achieve objectives, has been prominent in the early theories of organisational behaviour. This perspective emphasizes efficiency and effectiveness in accomplishing goals, with profitability often being the key measure of success.
One advantage of the goal attainment approach is its clear focus on achieving objectives. By setting distinct goals, organisations can provide a clear sense of direction for employees and foster a coordinated effort towards accomplishing these goals. This approach is also consistent with the rational economic model, which suggests that organisations should strive for efficiency in order to maximize their resources and outputs.
Furthermore, prioritizing profitability can be seen as crucial in a capitalist economy, as it allows organisations to sustain and grow their operations, generate returns for shareholders, and invest in innovation and development. From this perspective, profitability serves as an indicator of organisational health and competitiveness. By pursuing profitability, organisations can incentivize the efficient allocation of resources and productivity improvement.
However, the goal attainment approach also has limitations. Firstly, focusing solely on profitability can lead to the neglect of other important organisational objectives, such as employee satisfaction, social responsibility, and corporate ethics. This narrow focus on financial performance may result in ethical dilemmas, destructive internal competition, or negative impacts on various stakeholders, including employees and the broader society.
Additionally, the goal attainment approach assumes a rationality that may not always accurately describe the complex dynamics within organisations. Human behaviour and decision-making are influenced by various factors, including emotions, biases, and social forces, which may not conform to rational economic logic. Therefore, solely relying on a rational goal-oriented approach may overlook the nuances and complexities of organisational behaviour.
Furthermore, this approach assumes that goals are static and can be clearly defined, which may not be the case in dynamic and uncertain business environments. Organisations operating in rapidly changing markets or facing unpredictable events may need to adapt their goals and strategies accordingly. In such cases, a rigid focus on predefined objectives may hinder flexibility and the ability to effectively respond to new challenges and opportunities.
In conclusion, while the goal attainment approach emphasizes efficiency and effectiveness in achieving objectives, primarily focusing on profitability, it has limitations regarding the neglect of other organisational objectives and the oversimplification of human behaviour and decision-making. To have a comprehensive understanding of organisational behaviour, it is necessary to consider a broader range of factors, including ethics, social responsibilities, and the adaptability to changing circumstances.