Last Updated 27 Jan 2021

Congruence Model

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Congruence Model

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Introduction

This is a methods used to examine the organizational culture and try to come up with the strategies to excel in its attainment of its goals. It will affect the human behavior as well as organization’s behaviour. A model acts as a road map to achieving a certain task. The congruence model actually focuses on areas to improve performance when changing with an organization. The model helps the leaders to understand and analyze the organization performance. You need to familiarize your self with the activities done in the organization and eventually develop the organization’s problem with the help of Nadler and Tushman.

How the model developed

In the past the organizations have been using models which in some decades it has proofed to be inefficiency and leads to development of congruence model; it has been created because of the speed up rate changes in the current firms. The basic system model consists of input, transformation process, output and feedback. In our case we are going to tackle the inputs which include; environment, strategy, resources and history.

Input

These comprise the elements that will constitute set of factors with which it has to work. There are few group of input, with which each affects the organization in different ways. (Schein, 1999)

Environment

Each and every organization subsists contained by and prejudiced by the environment which consists of people, economic and social forces, other organizations, and legal constraints. In particular, the environment embrace markets i.e. clients and customers, government, regulatory bodies, economic and social conditions, labor unions, suppliers, competitors, financial institution, special interest groups and technology. It enforce demand for example, the quantity, price, and quality of the products are establish customer requirements and preference that the business can effectively supply. It implements limitation raging from capital aspects and insufficient technology to legal prevention entrenched from the government regulation as well as court action and cooperative bargaining conformity. This element offer opportunities like the new market which can be developed from the modernization of technology, the lose regulation in government or the government eradicating trade barriers.

All the institutions are pressurized by the external environment especially the large scale firms. A good example is the privatization of state owned business in Europe and the United Kingdom. For them to initiate competitive landscape then monopolies ceased to operate and they even changed the means of dealing with their customers and employees. An example in United States where the market diffusion with high cost of servers and widespread of competition resulted from the low cost producers of desk tops computers, it makes remarkable makeover in to an incorporated service provider. Another area is in bank where the law governing expressway banking spearheads the purchase of local financial banks by the well up banks which had operations being limited to their home state, with rapid strategy changes from corner to corner of the industry.

Resources

This is the second source of input for the organization which embraces the availability of assets like technology, staff, information and capital. Resource may also consist of less tangible assets for example the firm’s reputation with the customers, competitors, regulators and investors or the entire organization environment.

History

In the recent studies it has shown that what happened pats actually affects the firms function. For a business to value the extent in which it will act now or in the near future the firm must then be aware of the important developments of the situation over time through the behavior of the top managers, evolution of values, strategic decisions and beliefs. A good example is for Xerox Company in around 1940s, where the company moves toward the big companies like IBM, GE which were gigantic in the industry. It wanted to collaborate so that it can enhance the selling and distribution of copiers. The two companies were not interested and Xerox work on its own

Strategies

There are two aspects of strategic issues. The first is corporate strategy which demonstrates the collection of decisions on which business the form must be in. The second level entail business strategy, a couple of decision on how to organize the organization’s resources in regard to the demand, opportunities, threats and constraints. This element consist of five strategic issues; customer selection where the organization describes its customers and the reason for choosing them, the unique value preposition where the firm ask it self why do customers buy for me? ,value capture which entails the methods to use so that you can retain the customers, strategic control where the organization develops the ways in which it protects its profits and finally the scope of activities of the organization.

Reference:

Schein, E. (1999) The corporate culture survival guide: sense and nonsense about

culture change. San Francisco: Jossey-Bass Publishers

 

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