Dallas Business Consultant Elijah ClarkDallas Business Consultant Elijah Clark

Resources for Understanding Occupational/Organizational Stress

Stafyla, A., Kaltsidou, G., & Spyridis, N. (2013). Gender differences in work stress, related to organizational conflicts and organizational constrains: An empirical research. International Journal Of Economic Sciences & Applied Research, 6(1), 91-101.

The author of this study explains that stress is normal and routine within workplaces. The study was conducted of 231 Greek adults within different workplaces, using a poll research to collect data. The average age of the 231 volunteer Greek adults was 37.5 years. 94 respondents were men, and 137 were women. The study was done to examine ways in which different gender types witness stress. The test employees completed a questionnaire with two different scales of measurement that consisted of 15 questions. The results of the study found that men express stress differently than women. Men express work stress in an organization constraint scale and not just interpersonal. Men are involved in more disagreements and treated with rudeness more often than women. In addition, men have a more difficult time completing work task due to incorrect instructions, inadequate equipment, or lack of information. Based on this information, the author concludes that how organizations function may be the differentiator between genders and how they express stress.

Considering the study was conducted during an economic crisis, it may have been best if the study were not completed within the workplace as there may have been increased fear and stress of a layoff. Another limitation to this study was that there was a lack of questionnaire validation of the American translation into Greek. In addition, the study was not conducted by analyzing workplace satisfaction and workplace stress or by considering work ethic, reward, and whether or not employees were regarded for their efforts. Monitoring the work ethic would help in understanding individual responses to work demands and organization attachments, aspirations, dedications, and expectations. The study failed to include information for understanding the femininity and masculinity type of individuals outside of gender. The study should be examined again in the future considering these setbacks.
The authors’ findings could be beneficial in understanding and reacting to different gender types within organizations. Based on similar stress studies, this study is unique in identifying gender-specific stressors and concerns. The research can be useful in understanding welfare issues and stress prevention. Considering men and women are naturally different in nature, this study was successful in identifying whether or not their differences would affect their stress levels in the workplace. A future study could further analyze gender stress within an organization by including the relationship between workplace satisfaction and stress levels.

 

Mirela, B., & Madalina-Adriana, C. (2011). Organizational stress and its impact on work performance. Annals Of The University Of Oradea, Economic Science Series, 333-337.

This study examines how an economic crisis affects managers and entrepreneurs’ stress levels. The author explains that work related stress is a growing concern, and excessive stress can influence productivity. The study included Romanian managers and entrepreneurs from Bihor County. The research method used was an online questionnaire, which included 75 managers and entrepreneurs. 40% of the respondents were entrepreneurs, and 60% were managers at all levels. In addition, 40% of the respondents were women and 60% were men. Ages ranged between 18 – 64 years with 73% of the respondents being within the 18 – 24 age range. Each participant answered 35 structured questions about stress. The conclusion of the study was that organizational stress is produced by a multitude of outside influences including social status, family, relationships, and personal problems. 85% of the respondents considered work to be the main factor in their stress lives.

The study can be used to develop professional skills of managers and entrepreneurs. By promoting their skills, leaders can be prepared to adapt to new technologies in the organization. The study failed to examine the social status, education, and family matters of the respondents. The study also did not mention the work environment, whether or not the work was fast or slow paced, external stress factors, how the respondents interact with one another, or how the respondents perceived stress and their work task. Knowing this information would show how different situations influence respondent’s perception of stress in their organization.

The authors did consider many factors during their study, and the results were informative in highlighting how common stress is within organizations. Moreover, the results were impressive at presenting the number of respondents who came to the realization that they had no measure of combating their stress. By further demographically segmenting users, the study would show better results that could be filtered by the respondent’s social status and personal stress factors. The study was successful at examining stress from a different perspective of leadership type versus employee outlook. Considering leaders have different stressors than employees, this information can be useful in creating or improving leaders’ health and satisfaction within the workplace.

 

Yong, M., Nasterlack, M., Pluto, R., Lang, S., & Oberlinner, C. (2013). Occupational stress perception and its potential impact on work ability. Work, 46(3), 347-354. doi:10.3233/WOR-121556

The study was conducted to examine perceived employee stress levels with different occupations measured by the Work Ability Index (WAI). The study was done to investigate the impact of stress and workability. The study was completed through a survey questionnaire among 867 volunteer participants in Ludwigshafen, Germany. 653 of the participants completed the 38 close-ended questionnaires, which included questions directed at the individuals perception of safety in the workplace, health status, frequency of stress, job demands, time pressure, and work life balance. The study showed that occupational stress was perceived different within occupational groups. While some participants felt stress from health concerns, others felt stress tension from time pressure, and work life balance. Perceived occupational stress did show to have an impact on WAI.

A concern with the study is that the demographics of the users may have had an influence on the results. Among the 653 workers included in the analysis, 11% were managers, 39% skilled worked and 50% frontline operators. 80% of the managers and professionals were 40 and over in age, and only 20% were women in administration and 10% in management. Combined with additional studies, the results have been inconclusive, and this may be attributed to the employee’s occupational status. The study failed to mention the hours worked by respondents, the social status, lifestyle, or if they had health issues that may influence the results. Considering the study was given to only volunteers, rather than random selection, the results were likely not as effective or reliable.

The authors are experienced leaders and educators with previously published work on a similar organizational stress subject that focuses on occupational stress perception and its impact on employee’s health. The research and study done by the authors did present good material, particularly in examining the respondent’s perception of stress. However, without properly examining the lifestyle, and social status of the respondents, it would be difficult to validate the points within this study. Nonetheless, because of the vast number of respondents, the study was successful with comparing personal pressures, and perception of the respondents to organizational stress.

Newsletter/e-marketing technique

Coming up with a newsletter/e-marketing technique depends on your website. If the website is an informative website, members will signup to receive information or articles. If it’s a service based website or a website that sells products, users will sign up to receive product specials and new products coming. If it’s an employment opportunity website, members will signup to get updates on new employment opportunities. Current customers can use these forms to signup for newsletters that offer discounts and specials that may be going on within your company.

The reason that customers and potential customers will sign up is because they will want to know about the upcoming specials. Customers may want to be informed of a discounted products or services that they couldn’t previously afford or didn’t want to pay the high funds for. During the sign up for the newsletter, your company should ask customers what they are interested in receiving newsletters on.

Google’s Ad Rank program & Quality Score

Google’s Ad Rank program is designed to display the most relevant ad content to its users and to provide an equal system that benefits both the user and the advertiser. This Ad Rank system is controlled by the advertisers ad quality. The ad quality is determined by the websites click through rate (CTR) and ad relevancy to landing page content and keywords used.

Ad Rank works so that users gain satisfaction through seeing more relevant ads to their keyword and advertisers get to show more relevant ads for their product or service. The end result is that Google maintains satisfied customers through creating a good experience for both the user and the advertiser (Varian, 2009).

Ad Rank is used to “determine where (and if) your ads appear and how much you pay for clicks (Danuloff, 2009).” Ad Rank is created of a math formula that decides which ads appear within the top positions of Google’s Adwords. The formula used to create this Ad Ranklisting is:

Ad Rank = Max Cost Per Click (CPC) x Quality Score.

Case Study 

Company XYZ’s (XYZ) current quality score for the keyword “Dallas Web Design” is 3. In order to find the Ad Rank position, XYZ can calculate the MaxCPC ($4) by the Quality Score (3), and the result equals 12.

If XYZ raises its quality score to at least a 7, it could easily lower its CPC to $2 and end with a rank of 14. With a higher quality score, XYZ can pay half the cost and rank higher than with its lower quality score of 3 and budget of $4.

In order to raise its Ad Rank position, XYZ should focus on raising its quality score by first raising its CTR, increasing keyword relevancy to users search query’s and by creating an optimized landing page that holds original relevant content and performs high on users operating systems.

The higher the quality score, the lower the CPC. Ultimately, the Google quality score system allows for the prevention of advertisers to pay their way to the top of the search results within Google’s search engine. With this system, the higher quality score will save the advertiser money, create better placement and increase company revenue.

Credits

Danuloff, C. (2009). Is the hype over google adwords quality score justified? Retrieved May 4, 2010, from http://searchengineland.com/is-the-hype-over-google-adwords-qualityscore-justified-

Varian, H. (2009, March 11). Introduction to the google as auction [Video file]. Retrieved May 4, 2010, from http://www.youtube.com/watch?v=K7l0a2PVhPQ&feature=channel

Strategy Contents

Contents

Table of contents so that investors can quickly find the information they are looking for.

Introduction

[Background]
[Summary of financial needs]

Executive Summary

[Company information]
[Market opportunity]

Benefits to the Community

Economic Development
[Describe jobs created by the business]
[How will purchases for the business help other local businesses?]
[Any additional information]

Community Development
[How will the company’s goods/services help the community?]
[Any additional information]

Human Development
[How will the business help its employees?]
[Any additional information]

Company Analysis

Form of Business Ownership
[Will your business be a sole proprietorship, partnership, or corporation? Why?]
[Describe any necessary licenses or permits and your plans for obtaining them.]
[Will yours be an independent business, a takeover of an existing business, an expansion of an existing business, or a franchise?]
[Any additional information]

About the Company
[If you are taking over or expanding an existing business, describe any relevant history.]
[How will the business satisfy customer needs?]
[How did you choose and develop the company’s products/services, and how are they unique?]
[Any additional information]

Industry Analysis

[In what industry does the business operate?]
[Who are the competitors?]
[Have any other businesses recently entered or exited the industry?]
[How will the business be profitable, and what are the growth opportunities?]
[Describe any e-business opportunities.]
[Any additional information]

Management Team

[Who are the key members of the business team?]
[How will the company be structured?]
[How is the team balanced in terms of skills?]
[What is the company’s management philosophy and culture? What is your leadership style?]
[Describe the key management positions and compensation for those positions.]
[What other professionals will assist the management team?]
[Any additional information]

Manufacturing and Operations Plan

Location and Space Requirements
[Where is the planned location?]
[Discuss the location’s proximity to customers and suppliers.]
[Discuss tax rates and zoning requirements for the location.]
[Discuss transportation issues.]
[Discuss utility costs.]
[Will you rent, lease, or purchase the facility?]
[Any additional information]

Equipment
[Will you rent or purchase equipment?]
[Any additional information]

Labor Force

[Discuss the local labor pool. Is there a sufficient quantity of skilled people to meet the business’s needs?]
[Discuss wage rates and unionization issues.]
[Any additional information]

Inventory Control
[How will you control quality, inventory, and production?]
[Any additional information]

Purchasing Requirements
[Will you make or purchase component parts to be assembled into the finished product?]
[Any additional information]
Subcontractors and Suppliers
[Who are your potential subcontractors and suppliers?]
[Any additional information]

Labor Force

Labor Requirements
[How many employees are needed? Full time or part time?]
[What are the job qualifications?]
[Will you have written job descriptions?]
[What will you pay your employees? How does that compare with the going rate in your region and industry?]
[Any additional information]

Selection, Orientation, and Training
[Do you have a job application form?]
[What criteria will you use in selecting employees?]
[What orientation process will there be for new employees?]
[How will new employees be trained?]
[Any additional information]

Evaluation, Policies, and Rules
[How will employees be evaluated?]
[Will authority be delegated to employees?]
[How will you discipline employees?]
[What will you do when employees resign?]
[Any additional information]

Marketing Plan

Target Market(s)
[What is/are your target market(s) and what common needs can the business satisfy?]
[What are the current needs of each target market? Describe the target market in terms of demographic, geographic, psychographic, and product usage characteristics.]
[What changes in the target market are anticipated?]
[What advantages and disadvantages do you have in meeting the target market’s needs?]
[What are the relevant aspects of consumer behavior and product use?]
[Any additional information]

Environment
[What are the competitive, legal, political, economic, technological, and sociocultural factors affecting your marketing efforts?]
[Any additional information]

Marketing Objectives
[Describe your product introduction, improvement, or innovation]
[State the market size in dollars and units. Indicate your primary and secondary sources of data and the methods used to estimate total market size and your market share.]
[Describe your distribution plans.]
[Describe your pricing objectives.]
[Describe your advertising and promotion efforts.]
[How will the results of your marketing plan be measured and evaluated?]
[Any additional information]

Financial Plan

Startup and Operating Needs
[How much money do you have, and what is the actual amount of money you need to open your business (start-up budget)?]
[How much money is needed to keep the business open (operating budget)? Prepare a realistic budget.]
[What sources of funding do you anticipate?]
[Any additional information]

Financial Statements
[Prepare an income statement by month for the first year of operation and by quarter for the second and third years.]
[Prepare balance sheets for each of the first three years of operation.]
[Any additional information]

Financial Analysis
[Prepare a breakeven analysis. How many units of your products or service will have to be sold to cover your costs?]
[Reinforce your final projections by comparing them with industry averages for your chosen industry.]
[Any additional information]

Exit Strategy

[How do you plan to get yourself (and your money) out of the business?]
[Do you intend to grow the business to the point of an IPO?]
[Do you intend to sell the business?]
[How will investors get their money back?]
[Any additional information]

Critical Risks and Assumptions

[What will you do if your market develops either more slowly or more quickly than anticipated?]
[How will you react to competitor challenges such as underpricing or new products that make yours obsolete?]
[How will you react to favorable or unfavorable changes in the industry?]
[How will you react if there is a labor shortage or other labor-related issue?]
[How will you react if there is an erratic supply of products or raw materials?]
[Any additional information]

Appendix

Google Ad – A/B testing

Most people who do A/B testing are never truly giving their testing ad a full chance at achieving its best possible results. Furthermore, without testing the ad properly, these individuals or companies may ultimately lose money, time and potentially reject a successful ad that just never had the chance to prove itself successful due to the lack of owner knowledge.

In addition to the explanation of failed ads, Thies goes further into his article and explains the process of creating a successful ad testingcampaign. The technique he uses explains that by keeping the control ad running throughout the testing of the new ad, the user can save money and also “eliminate performance history as a variable (Thies, 2008)” in the test ad. By creating multiple copies of the control ad, the user can “avoid giving 50% of impressions to an unproven ad which may fail (Thies, 2008).”

Creating multiple copies of the control ad, the user does not lose as much profit due to the control ad always running. Instead of the user losing 50% of ad impressions to the testing ad, that percentage shrinks to 20% because of the additional control ad copies.

In addition to this type of testing saving profits and potentially accelerating the testing process, it also allows for the user to create a valid testing environment by “comparing the performance of the test ad against the copies of the control only (Thies, 2008).”

Credits

Thies, D. (2008). Split testing adwords: you’re doing it wrong. Retrieved June 12, 2010, from http://www.seofaststart.com/blog/split-testing-adwords-youre-doing-it-wrong

Selling the Vision

A vision is common in most major leadership theories and it can be defined as an end-state or description of the future (Ilies, Judge, & Wagner, 2006). Visions are generally focused on building innovation and creating change (Ilies, Judge, & Wagner, 2006; James, & Lahti, 2011). Visions are considered to represent idealized future states of what is desired and not what currently is (James, & Lahti, 2011). A vision is said to represent shared values and can often have an ethical overtone (Ilies, Judge, & Wagner, 2006; James, & Lahti, 2011). An effective vision is based on organizational purpose (Mayfield, Mayfield, & Sharbrough, 2015). All visions must incorporate a goal, and many consider a vision paramount to strategies and processes (Ilies, Judge, & Wagner, 2006). An organizational vision is defined as an ideological goal that organizations, members, and leaders are morally satisfied in pursuing (James, & Lahti, 2011). A vision should translate the organizations strategies, which can then be translated into achievable goals (James, & Lahti, 2011).

Leaders with compelling visions can provide a sense of purpose and meaning to followers (James, & Lahti, 2011). A leaders’ vision can effect the goals of an organization, considering it has an effect on the direction of action, intensity of effort, and effort persistency (Mayfield, Mayfield, & Sharbrough, 2015). Leaders often use visions to motivate and persuade followers to pursue tasks goals with passion (James, & Lahti, 2011). Effective leaders with visions have been shown to significantly have an impact on followers’ creativity, inspiration, achievement, team innovation, and organizational performance (James, & Lahti, 2011; Mayfield, Mayfield, & Sharbrough, 2015). Furthermore, vision inspiration can promote positive organizational outcomes, change, and performance (James, & Lahti, 2011). Transformational leaders particularly may be best for motivating and appealing to followers’ common ideals and ethical values (Ilies, Judge, & Wagner, 2006). Transformational leaders may use emotional aspects and gestures to communicate their vision and build commitment (Ilies, Judge, & Wagner, 2006). Leaders can better achieve visions by engaging followers and creating a shared organizational vision with followers (Mayfield, Mayfield, & Sharbrough, 2015). Leaders can promote organizations change through articulating a clear vision and promoting a strong relationship between followers that influences them to accept the vision (Ilies, Judge, & Wagner, 2006; James, & Lahti, 2011; Mayfield, Mayfield, & Sharbrough, 2015).

Visions should be well communicated by leaders and are more likely to be consensually shared by leaders and followers when social exchange and agreement occurs (Mayfield, Mayfield, & Sharbrough, 2015). It is not enough for a leader to simply have a vision, they must also know how to bring the vision into fruition (Ilies, Judge, & Wagner, 2006; Mayfield, Mayfield, & Sharbrough, 2015). It is the leaders responsibility to provide followers with a road map to achieve goals that will fulfill visions. This can be done by motivation and creating challenging goals (Ilies, Judge, & Wagner, 2006).

 

Credits

Ilies, R., Judge, T., & Wagner, D. (2006). Making Sense of Motivational Leadership: The Trail from Transformational Leaders to Motivated Followers. Journal Of Leadership & Organizational Studies (Baker College), 13(1), 1-22. doi: 10.1177/10717919070130010301

James, K., & Lahti, K. (2011). Organizational Vision and System Influences on Employee Inspiration and Organizational Performance. Creativity & Innovation Management, 20(2), 108-120. doi:10.1111/j.1467-8691.2011.00595.x

Mayfield, J., Mayfield, M., & Sharbrough, W. C. (2015). Strategic Vision and Values in Top Leaders’ Communications: Motivating Language at a Higher Level. Journal Of Business Communication, 52(1), 97-121. doi:10.1177/2329488414560282

Evolving Consumer Behavior – Case Study

CompanyEC’s (CEC) current marketing plan is not currently aimed at engaging the online consumer behaviors identified in the Meet the Connected Consumer study. The reason for this is not that CEC finds these studies irrelevant. It’s due to CEC simply not having the strongest of marketing plans. Currently, the marketing plan is to create backlinks mainly within forums and blogs within its niche market. Nonetheless, CEC does have its company brand within the most popular of search engines and social networking websites. What CEC could do to improve its marketing for this study is to place more ad dollars and marketing within the areas mentioned. A majority of CEC’ consumers have a MySpace, Facebook and Twitter account. With that knowledge, CEC could benefit greatly from advertising within these markets.

Being that CEC is an online-based company, using this consumer study for its marketing techniques could allow for the company to gain a true understanding of its online consumers. CEC could easily implement most of the web 2.0 techniques into its own company. Previously, the tag cloud technique was used on the main page of the website. However, this was removed due to room for further marketing. In addition, RSS feeds and social bookmarking tools are currently implemented within the website.

While this consumer study can be beneficial to use for marketing, it would also seem to be most affective with a dedicated team member to handle this portion of the marketing on a regular basis. This type of marketing needs to be kept and updated regularly, possibly on a daily and/or hourly basis. Assigning the task of keeping these techniques updated will be the best method to create its success. In addition to marketing, creating online contest and awards can also encourage user interactivity within the social networks (Welborn, 2009).

The Internet and customer behavior

The Internet isn’t changing the way that CEC’ customers behave mainly because the business has always been an Internet business. The only difference is the locations in which CEC is marketing itself. It has previously been marketed within locations such as Craigslist.org, Backpage.com, Yellowbook.com, and other local advertising websites. With the internet changing and advancing with user interacted web 2.0 websites, the business now has the opportunity of being marketed on broader networks such as Facebook, Twitter, MySpace and LinkedIn. In the order to create success within the web 2.0 market place, CEC needs to join this social online environment and make its brand positively known (Eikelmann, Hajj, Peterson, 2007).

With the thousands of additional social networking, blogs and forum type websites, CEC has a greater opportunity to build its brand name. Searching for the keyword “CompanyEC” on search engines will bring up a large list of the websites links and name within other websites. Currently, CEC has as many as 120k backlinks.

What the development of new websites and the growth in online networking, the Internet has been created as the largest marketing tool for CEC. This is done through a combination of CEC’ own online marketing and through previous customers promoting the brand online through their social networks. This allows for CEC to be found through many new, relevant and trusted sources on the Internet.

There hasn’t been any noticeable difference in how the users view the website or company or any changes within their decision-making process. Visitors are still looking to visit the website and find what they are looking for quickly with as little amount of clicks as possible.

Shifting behavioral patterns

CEC’ current marketing efforts are capitalizing on the shifting behaviors of its target audience. Ways in which is does this is through social networking websites, forums and blogs. With each of these online networks growing in users and in popularity, CEC has found many opportunities in joining these networks to build its brand name.

In addition to CEC’ own marketing techniques, potential and past consumers are also discussing the services offered through the company. While searching through the Internet for the company’s name, it has showed up on many additional forums and blogs through users own discussion postings. CEC has found that the company name in these situations is being used as references from previous customers or questions from potential customers. With seeing the affects of this type of marketing, CEC has placed high priority on customer satisfaction, as the users experience is likely to be shared throughout the Internet.

Brand evangelists

CEC has some great opportunities to create and identify brand awareness. The ways in which it creates them is by providing them a valuable service and simply ask them to tell their friends. A happy customer is very likely to tell their friends of the service they received from CEC. Creating brand evangelists doesn’t necessarily involve rewarding the customer with free services. The best method that has been proven successful is by letting the customer know that they are appreciated as a customer and advise them to please tell their friends of the service they have received from the company.

Previous customers are also likely to socialize about the service they received form the company without being asked. If they are happy, they will likely tell everyone why they are. Whether a Facebook, Twitter or MySpace status update, blogs or forums, they will tell their story of success. Customer satisfaction goes a long way when creating brand evangelists.

Ways in which CEC can identify brand evangelist is firstly by joining and staying updated with its social networks and watch for when the company name is mentioned. Another method is by understanding the type of user that the service is being created for. If CEC is creating a website for a consumer that is socially active, then it needs to place a higher priority into making sure that they are satisfied with their service. These users are likely to express their service online and their users are likely to take the advice as coming from a relevant and trusted source. Users with large social networks are a great opportunity for CEC to create brand evangelist.

Another great opportunity for CEC to get involved with its consumers online is by incorporating widgets into the company website. These widgets can be used to allow for CEC’ site visitors to communicate their thoughts and share them on their favorite social networking websites with the click of a button.

 

Credits

Eikelmann, S., Hajj, J., Peterson, M. (2007). Web 2.0: profiting from the threat. Retrieved May 21, 2010, from http://www.strategy-business.com/article/li00037

Schmitt, G. (n.d.). Meet the connected consumer. Retrieved May 21, 2010, from http://www.slideshare.net/gschmitt/meet-the-connected-consumer

Welborn, J. (2009). The eight essential steps for successful social media marketing. Retrieved May 22, 2010, from http://www.indelibuzz.com/?p=362

Company Online Pressroom

In planning a pressroom section, there are many different elements that we would be sure to include. Those elements consist of:

Company Background Info

This section will be included to give the background information on the company. This will include information on how the company was started, the mission of the company and the company’s work ethics and beliefs. This section would be great for building user confidence and comfort in the company.

Executive biographies

The biography section will include information on each of the company’s CEO’s and top leaders in each department. The purpose of this section is to help and build a relationship with the site users by providing the site with a humanistic feel and allowing the users to get to know the writers and executives.

Contact Info

The contact information will allow for users to be able to contact the company if they have questions or comments to articles, blogs or other personal input on the company or website.

Latest News/In the news

This section will include the latest information on the company’s success and changes. This will be used to keep users updated on what is going on within the company.

Multi-media content

This will allow for the company to post multimedia videos of conferences, events or other valuable content that can help or update the users on the industry and the company.

RSS feeds and social media links

Users who wish to stay updated with the company will use these tools. This is another way for users to stay updated and ask question or leave comments.

Search capability

While this tool is not always needed, it would be great to have on the site once we gain more content within the press release section. This allows for users to easily find information on what they are looking for within the site.

Calendar of Events

This section will keep users updated on what the company is doing, when they are doing it and where it is taking place. This is yet another avenue for users to use in order to follow the company. This could also be used as a way to invite users to events that the company may be attending.

There are other additional elements to use within a press release website, however, these tools and functions are what I deem most important based on what services our company offers and the type of business that we run. With all of our business involving direct and/or verbal contact with our customers, these tools and functions will create a great network and option for users to get involved with the company on a more personal level.

Transparency in Organizations

Transparency is defined as the availability of group specific information to those outside of the group (Bushman, Piotroski, and Smith, 2003). Organizational transparency is when the organizations information is produced, gathered, validated, or disseminated to outside participants (Bushman, Piotroski, and Smith, 2003). Transparency can allow for businesses and individuals to get speedier feedback on products and services (Bennis, 2013). Stakeholders have a right to information concerning the company, brand, and potentially stocks. Transparent organizations allow for stakeholders to gain proper insight into the workings and issues that are relevant (Dubbink, Graafland, & Liedekerke, 2008). Transparency is beneficial for companies in that it helps them to distinguish themselves from similar companies by enhancing innovation (Dubbink, Graafland, & Liedekerke, 2008). Being transparent and informing consumers and partners of important business aspects can be seen as an ethical approach (Dubbink, Graafland, & Liedekerke, 2008). For a leader, being transparent creates trust, honesty, accountability, and responsibility (Dubbink, Graafland, & Liedekerke, 2008). Morally, transparency is important considering it can affect personal integrity, attitude, and organizational commitment (Dubbink, Graafland, & Liedekerke, 2008).

An example of a transparent organization is the travel agency, which moved from traditional travel agencies to online digital offerings. As an online organization, prices, reservations, itineraries, suppliers, and competitive disadvantages became transparent and disrupted traditional sales and business (Granados, & Gupta, 2013). With technology and the internet, business transparency is crucial and business leaders need to understand the power in which transparency enables loyal followers (Bennis, 2013; Dubbink, Graafland, & Liedekerke, 2008). Using digital networks as a transparent company generates sales for new and potential consumers who desire unbiased information and offerings from all vendors (Granados, & Gupta, 2013).

Complete transparency, however, has its setbacks. Companies could lose freedom, secrets, and privacy because of this. Being transparent could conflict with leaders’ moral principles (Dubbink, Graafland, & Liedekerke, 2008). If companies are transparent, consumers can gain knowledge and shared information about products that are available (Dubbink, Graafland, & Liedekerke, 2008). Digital transparency also effects competition as businesses can view, compare, and match competitor prices to their advantage (Granados, & Gupta, 2013). Full transparency may distract consumers and stakeholders from focusing on more important items and information (Dubbink, Graafland, & Liedekerke, 2008). If a company desires to become transparent, it should respect the freedom of both stakeholders and individuals (Dubbink, Graafland, & Liedekerke, 2008).

 

Credits

Bennis, W. (2013). Leadership in a digital world: embracing transparency and adaptive capacity. MIS Quarterly, 37(2), 635-636. Retrieved from http://misq.org

Bushman, Robert M. and Piotroski, Joseph D. and Smith, Abbie J., What Determines Corporate Transparency? (April 2003). Available at SSRN: http://ssrn.com/abstract=428601 or http://dx.doi.org/10.2139/ssrn.428601

Dubbink, W., Graafland, J., & Liedekerke, L. (2008). CSR, Transparency and the Role of Intermediate Organisations. Journal Of Business Ethics, 82(2), 391-406. doi:10.1007/s10551-008-9893-y

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