Izmir National University (INU) has experienced rapid growth in their organization within recent years. The faculty in the Business school is unable to keep up with the growing demand of students, this has led to confusion, lack of funding and resources and chaos among employees. The newly recruited Dekan has been able to spot these growing problems and has taken the first step in trying to alleviate them by opening the lines of communication and asking for input from employees.
By opening the lines of communication and reviewing the comments from faculty members, it is evident that the organization has no direction or structure at all. There is no business strategy for the employees to implement or follow. For example, one person notes that research is the primary mission and they need more focus on the funding of research, and another one states that the University puts too much effort on research and they are only there to teach. This is a clear example of the lack of structure within the organization.
This is a very real problem in the organization hopes to keep up with the growing number of students. Hypothesized causes The university lacks a business strategy and set of goal that everyone should be working towards. This issue within the Business School is just the tip of the problem that stems from the lack of strategy within the entire university. The solution to these problems, while focusing on the improvement in the Business school, should also keep the needs of the entire organization in sight since that will require improvement as well.
Solutions need to be “evaluated in terms of their effect on the entire system, not simply in terms of how they will affect one component of the system” (Meredith & Shafer, 2010). Another issue that is harmful to the INU is the lack of training and resources for faculty members. Analysis In order to create a business strategy the organization must evaluate both their internal and external environment (Porter, 2008). The organization needs to determine what their main focus will be; research, teaching, student retention, growth, etc.
This is determined by evaluating the external factors to see where the competitive advantage should come from. Once the external environment is evaluated the organization needs to then align their intangible assets to be able to meet those goals. The human, informational and intellectual capital is severely lacking within this organization and needs to be reevaluated to be used as a competitive advantage. Determining the strategy is not the most difficult part, it is with executing or putting the strategy into action (Kaplan & Norton, 2008).
The lack of training and information available to the faculty members needs to be changed. The human capital is a huge downfall for the organization; they need more fulltime employees with the proper training. The intellectual capital is there it just needs to be fostered to fit the needs of the organization; this can be accomplished with training and communication. The information capital is also lacking, this is evident by the comment of employees not receiving voicemail messages.
Recommended Solutions & action plans. The recommended solution is to reevaluate the current business strategy (or lack of) and determine what the organization wants to become. The Dekan has already started on the path to recovery of the Business School by opening the lines of communication. The Dekan should continue on this route and also coordinate with other managers on trying to increase the faculty in order to offset the large number of inexperienced staff members. Training should also be put in place in order to ensure the entire faculty is on the same page as to what the goals of the organization are.
The action plan should be followed and reevaluated each year to alleviate any problems or changes that may occur. Since the Dekan has obtained input from the employees, this information should be used in determining a new strategy for the organization. In order to fix the problem the organization needs to follow the combined steps of the transformation process and the ones put forth by Kaplan and Norton. The first step in the transformation process is to alter the environment and the structure of the organization.
This could include training and hiring additional faculty members. Since the university cannot transport or store anything within their organization, they must then insert the steps from Kaplan and Norton. These steps include determining how they will execute the strategy, use balanced scorecards, hold information sessions to employees and offer question and answer sessions so the organization can assert the employees concerns upfront. That should be followed by putting the strategy into action.
Training should begin with all faculty members and geared towards sharing information and technology to make the process effective and fairly easy (Kaplan & Norton, 2008). Finally, the transformation process entails inspection (Meredith & Shafer, 2010). There should be evaluations and performance measurements to demonstrate the effect on productivity. The productivity of the Business school could be measured by asking for feedback from students and peers, looking for an increase or decrease in retention rate. Perform reviews each year and ask for candid feedback from faculty members.
The problem will only go away with a change in structure, so giving faculty members a 10% raise will only work to make them more enthusiastic about their role. This will not help to solve the problem because there is no information being disseminated, they will each continue on the same path they are going and not on the path towards the same goal. Business Impact If the Business School follows the steps above the best case scenario is that there will be tangible proof of the improvements, retention rates will decrease and the school will have the skills necessary to handle any future growth they may encounter.
They will also be setting a great example to the students on how important a successful business strategy can be to an organization. The worst case scenario is that managers run the risk of hesitation from employees; they already feel overworked and may be unwilling to take on more responsibility and training to work towards this goal. If the managers and faculty work together to implement the steps for creating a business strategy the outcome will most likely be a positive one, and hopefully it will be an example for the rest of the University and they will follow suit.