Diagnosing Organizational Behavior at Whole Foods
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Diagnosing Organizational Behavior at Whole Foods
Introduction
Organizational behavior is gradually being perceived as a vital aspect in the development of effective companies. A company’s fundamental artifacts, beliefs, values make up the behavior and contribute towards developing a sense of order, permanence, and dedication. Comprehending behavior at different levels is imperative since most organizations are highly dynamic. A diagnostic mechanism with proven validity and consistency has been developed that categorizes organizations according to their behavior. The Nadler-Tushman Congruence Model has three input groups: environment, internal resources, and historical tradition (Burke, 2014). This paper seeks to examine the core principles and groups within the Nadler-Tushman Congruence Model. Additionally, the paper will also evaluate the critical inputs in a selected case study, Whole Foods with the intention of exposing their level of alignment with the strategy.
Whole Foods Critical Inputs and Alignment with Strategy
Whole Foods Market has adopted a differentiation strategy. Differentiation strategy concentrates on investing in products and services that possess distinctive features or qualities, products with a lasting impression, or contain high value, and quality based on consumer perception. The organization has the main value of vending first-class quality organic products in the market (Burke, 2014). Whole Foods focuses on providing quality rather than offering a fair price. A key value for the company is meeting the needs, pleasing and providing the customers with the right kind of nourishment. This equally demands differentiation (Cameron, & Green, 2015). Porter’s differentiation strategy stipulates that for a company to survive, they can differentiate their products to compete effectively (Burke, 2014). Whole Foods’ strategy has been very effective for a long time since its target customers possess a low sensitivity to price differences. Most customers are simply content with consuming natural and organic products (Burke, 2014). This demand for organic foods is still high and Whole Foods possessed the resources and competence to acquire organic foods demanded by customers in a manner that was challenging to duplicate (Marshak, 2006).
The current situation is characterized by Whole Foods being the dominant vendor of natural and organic foods at a magnitude that cannot be met by any competitor. The company has the unique capacity to seek out high quality organic foods and sets a benchmark for its own merchandise. These values are difficult to imitate (Burke, 2014). The products presented by competitors carry the perception of being genetically modified and having a lower quality. Whole Foods has successfully created a strong status and brand recognition for organic products. Additionally, the company has managed to place a premium price for its products. Therefore, in conclusion, Whole Foods has been implementing a unique strategy as its approach when dealing with product offering, a feat that was difficult to duplicate by its competitors (Cameron, & Green, 2015). In the current economy,Whole Food Market is a reputable organization in the organic food industry.Adoption of quality strategiesare introduced to guaranteethat Whole Foodshas the capacity of realizingtheir objectives.
Critical Inputs in the Three Categories
Whole Foods needs to realign their efforts and focus on laying down their inputs as they are related to the three categories: history, resources, and environment. Through examining all of the inputs, it is imperative to stress on the company environmental elements, internal resource aspects, and historical tradition factors (Cameron, & Green, 2015). The organizational environment elements include technological inputs, management, inspirational plans, and culture, in addition to, financial supervision, and lastly, equipment (Burke, 2014). Each factor is fundamental in the overall realization of goals and objectives instigated by the company, running under the blanket of differentiation strategy will help Whole Foods enjoy a competitive edge over their rivals in the organic food industry (Burke, 2014). Internal resources elements include human abilities, constructive environment, technological platforms, quality management, motivational and capital inputs. In general, these elements foster opportunity for Whole Foods to enjoy the competitive advantage in their specific industry (Nadler, & Tushman, 1980).
Significance of Critical Inputs
Whole Foods has adopted a layering style in which every layer integrates with the next to realize the organizational overall objectives. It is imperative that Whole Food’s culture is shaped in a way that can capture and preserve the competitive edge over its rivals. Organizational culture holds the potential to direct the organizations capacity to put into practice new concepts, which consequently allows them to realize the mission and vision (Tushman, & Anderson, 2004). Organizations in search of change within their operational guidelines and procedures depend mainly on the organization cultural procedures as they act as a guide controlling the business through the industry. Culture, also contributes significantly towards the implementation or position assumed by the organization in terms of determining its success (Burke, 2014). Gathering and scrutiny of data is particularly useful to an organization’s overall achievements therefore promoting the role of technological factors; this is mainly true in the effectiveness of merchandise manufacture, and distribution to the customer (Cameron, & Green, 2015). Absent or slow technological development leaves the organization without the capacity to push their projects forward; therefore failing to exploit their opportunities to develop volume of product, and enhance their distribution rates (Senior, 2016). Incentive inputs are connected directly into the aforementioned factor. It is imperative to stress on worker output and quality. Creating and implementing standard guidelines are vital; and should be embraced by staff members to independently achieve the goals and objectives in the organization (Cameron, & Green, 2015). Formulation and adoption of such procedures and strategies connect the achievement of the differentiation strategy. Environments that offer incentive opportunities allow the human resources to carry out the different goals following the course of the anticipated outcome. This is normally the competitive advantage (Burke, 2014). The company vision and culture are classified as historical tradition inputs that facilitate the formulation of policies. These policies and procedures are consequently applied by all staff members to comply with company objectives and expected outcomes within the specific industry.
Interactions between the Inputs
There exists a constant interaction between the three categories: historical tradition, internal resources, and environmental inputs. The historical tradition inputs vision, mission, and culture assume the vital task of affecting development and adoption of the technological inputs that have a straight correlation with the internal resources. All the inputs possess the capacity to foster relations between the company and that of the human resources. When the two elements combine, it creates a constructive working environment that inspires an employee’s productivity (Cameron, & Green, 2015). This in turn is comparable to the realization of goals laid down through differentiation strategy in the industry. Historical tradition inputs for instance, vision, mission, and culture are necessary in affecting the creation and adoption of technological inputs when it is perceived from the internal resources viewpoint. These inputs also foster relations between the company and the workforce. By creating an encouraging working environment, it will promote the productivity of the staff that should be visible in the accomplishment of the objectives in their respective industries or sectors (Burke, 2014). This might also be a sign that historical tradition inputs have the capability of promoting awareness in the creation and implementation of their environmental inputs (Cameron, & Green, 2015). This phenomenon is particularly valid as it relates to the general implementation of organizational functions and responsibilities being met within the organization. Internal resources allow the company to develop the most positive standing within the organization. A sharp sense of the overall organization permits for best possible and excellent interactions with different stakeholders with their specific industry. When this occurs, it leaves the feeling that the organizations’ internal inputs have a direct effect on the historical tradition inputs and environment (Burke, 2014). From a neutral position, it seems that there is a three-point relationship between the categories. One aspect has a direct impact on the other and permitting quality implementation of different strategies that consequently attain the expected goals and objectives of the company (Cameron, & Green, 2015).
Level of Alignment between the Inputs
There is a high sense of alignment between the environmental, resource, and historical inputs. There is an equally tight fit of these three inputs in the differentiation strategy. The categories all concentrate on the realization of high quality products, delivery of merchandise, devoid or limited in errors originating from the manufacturing sector of the company’s outputs (Laszlo & Laugel, 2012). The major purpose of the differentiation strategy is to create and promote unique products regardless of their pricing models. In the process, it gives the organization a distinctive competitive advantage. Whole Foods’ inputs that comprise of environment, internal resource, and historical tradition factors are very congruent with the organization’s business strategy (Cameron, & Green, 2015). The adoption of the Nadler-Tushman Congruence Model will assess its correlation among the three categories and the differentiation strategy (Burke, 2014). This will permit Whole Foods to exploit the highly congruent connection amongst all of the four elements thereby realizing the expected outcomes and achieving the competitive advantage against rivals existing in the organic food industry.
Conclusion
Every company in
spite of their scope enters into the market with specific goals and results.
Choosing the appropriate strategy from which to realize particular results demands
time, design, implementation and evaluation. As Whole Foods makes use of the
differentiation strategy combined with Porters’ Three generic strategies, it
will allow the company a bigger capability to maintain its viability as well as
expanding beyond that scope of its rivals within the organic food industry (Burke,
2014). In the same way as many organizations, Whole Foods is not devoid of
challenges. Several of the current challenges that have affected the
organizations’ capacity to realize targeted predictions are increased
competition within the food industry, the recessive economy, and problems acquiring
strategic locations (Cameron, & Green, 2015). In order for Whole Foods to
compensate and avoid falling prey to these problems, the company concentrates
on the implementation of various approaches such as environmental receptiveness,
commitment to community, highly ratings in organizational practices, and quality
standards (Burke, 2014). It is clear that Whole Foods illustrates an effective
balance of the three categories: environment, internal resources, and
historical tradition factors.
References
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Burke, W. W. (2014). Organization change: Theory and practice. Los Angeles: SAGE.
Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. London: Kogan Page.
Laszlo, C., & Laugel, J. F. (2012). Large-Scale Organizational Change. Hoboken: Taylor and Francis.
Marshak, R. J. (2006). Covert Processes at Work: Managing the Five Hidden Dimensions of Organizational Change. Toronto: execuGo media.
Nadler, D. A., & Tushman, M. L. (1980) A model for diagnosing organizational behavior. Readings in the Management of Innovation. Organizational Dynamics, 9 (2), 35-51. Retrieved on November 7, 2012 from EBSCO.
Senior, B. (2016). Organizational Change. Harlow: Pearson Education.
Tushman, M., & Anderson, P. (2004). Managing strategic innovation and change: A collection of readings. New York: Oxford University Press.
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