Ten Key Concepts and the Success of Romanian Organizations

TEN KEY CONCEPTS AND THE SUCCESS OF ROMANIAN ORGANIZATIONS

Senior Lecturer PhD Ada Mirela TOMESCU, Senior Lecturer PhD Mirela BUCUREAN, Lecturer PhD Madela ABRUDAN, Junior Assistant Remus RO ŞCA University of Oradea

Abstract: This paper is focused on ten key concepts which influence the success of the organizations at the beginning of XXI century. The great changes generated by globalization determine firms to be more competitive. This means that we have to focus on: mission, leadership, emotional intelligence, innovation, organizational culture, human resources, total quality management, ethics, conflict management, brand, and the value offered to the clients.

Introduction challenge capable of motivating the The purpose of this thesis is to human resource. briefly examine the key concepts which A relevant example is the way influence the success of economic McDonald’s define their mission 1: organizations at the beginning of the ”Our mission is to become the best 21th century. The major changes quick serve restaurant in the world, generated by the globalization which means opening and phenomenon exert a great pressure on administrating excellent restaurants and the companies. Subsequently, in the also assuring an outstanding level of pages to come we will focus on the quality, service, cleanliness and value. ” following concepts: mission, leadership, We can identify here the reason to emotional intelligence, innovation, exist, explaining through this organizational culture, human declaration, to those who are interested, resources, total quality management, the essential characteristics of the ethics, conflict management, brand and business. the value offered to target clients. In general, in Romania, declaring the mission of a firm as a strategic I. Mission management tool has just emerged, The mission of an organization hence the observation that there is a represents one of the cardinal points lack of experience in employing the among the activities undertaken by any mission as a communication tool of organization, being that which indicates strategic management in the case of the direction of a company’s line of Romanian companies, together with the attack and even the organizational way in which it has been formulated and culture values. Therefore, defining a firm’s mission is a crucial responsibility in obtaining success. The mission of a company is a guide for the firm’s 1 employees and it should be conceived Philip Kotler,”Marketing from A to Z”, in such a way that it represents a CODECS Publishing House, Bucharest 2004, p. 120. finishing with the objectives associated the fervent concern of organizations to the chosen strategy 2. towards innovation. It is considered that the success of a company is directly II. Innovation proportional with it’s capacity of Due to the fact that innovation innovating, capacity determined by: the represents the process of development quality of human resource, a proactive and implementation of new ideas within management, the openness of the a company and correlating this with managerial team towards innovation, an competitiveness, it is most obvious that adequate reward and recognition innovation is the main action which can system, an available research constitute a manner of differentiation, infrastructure and the financial competitiveness, but also continuous resources allocated to innovation. improvement. Unfortunately, Romanian organizations In economic literature, the product have not embraced the idea of and process of innovation is innovation, this being one of the emphasized. Product innovations have reasons which cause them to be less a direct impact on the cost, quality, style competitive on the external markets. and availability of a product or service. The process innovations are new ways III. Leadership and emotional of producing and manufacturing intelligence products or delivering them. For Within organizations, leaders are instance, a new technology is a process those who establish the unity between innovation. Moreover, the new forms of the aim and the orientation of the labor and management systematization, company. They have to create and including the growth of posts and quality maintain the internal environment in programs, are also considered to be which the personnel is motivated to process innovation. operate proactively and responsibly in The innovation degree is carrying out the company’s objectives predisposed to variation. We can talk of and, implicitly, remains loyal to the a new order regarding the way in which organization. The leader encourages equipment is disposed in a section, and trains the individuals of a team in order which facilitates the work of such a way that they will give their best employees and increases the in completing the team’s productivity of labor with 1%, or we can objectives 3.Leadership means to talk of a 100% new product, for resolve problems, to attain objectives, to example, the biophotonic scanner, carry out tasks with the help of a team. which in merely three minutes The complex environment in which the measures the antioxidant level in one’s economic activities take place leads to body. the conclusion that teams act better and The most tangible effect of more efficiently. innovation is a new or considerably The success of an organization improved product. It is ascertained that depends considerably on a leader’s the time needed to put a product on the ability to express his vision, enthusiasm market has considerably decreased in and the sense of his intention in front of the last decades, which demonstrates the team he leads. The portrait of such

2 Bogdan Bacanu, „The strategy of the organization in practical approaches”, 3 Adriana Prodan, ”Successful Infomarket Publishing House, Brasov, management”, Polirom Publishing House, 1999, p.18. Iasi, 1999, p. 84.

78 a leader should have the following great advantage in team work, the fundamental characteristics: emotional intelligence of a leader 1. Vision to imagine a better concretizing in: emotional stability, future situation and the means to put it opting for the right behaviour depending into practice.A leader’s vision should be on the given conditions, using the most challenging, able to release the creative appropriate motivational factors to energies of the individuals which form a obtain the best out of the team. team, becoming a powerful motivational The organization of the 21th factor. century needs leaders , because they 2. Self-confidence is one of the get the most out of the creative potential most important traits which condition the of the human resource, playing the role quality of leader. A person who doesn’t of a catalyser. trust herself and does not possess a sense of value will never get to be a real IV. Organizational culture leader. Organizational culture is one of the 3. The energy he has to most significant factors of demonstrate in order to follow his vision competitiveness of the economic and support his team through the tough organization. Together with the moments, which are certain to appear. knowledge level of the personnel and 4. Intuition to anticipate changes the value of the brand, it forms the is an absolutely necessary quality if we intangible active of the organization. take into consideration the alert rhythm The reality of the socio-economic of changes which characterize the life imposes the granting of a major socio-economic evolution of humanity at importance to the following the beginning of the 21th century. organizational culture values: Intuition allows a leader to have a 1. The labor cult. Unfortunately, proactive attitude in what concerns the this value hasn’t been encountered in foreseen changes and not a reactive Romanian organizations before one after they have already been 1989.This situation can be remediated produced. This kind of attitude can bring through: personal development to the organization an important programs able to reflect the above- competitive advantage. mentioned value, the creation and 5. Delegation should be used to implementation of a reward system share tasks with those who follow the based on individual achievements, a leader.By assigning tasks, you satisfy clear communication from the the need of affiliation and managerial team regarding the acknowledgement of potential. expected achievements, an example on 6. Communication skills help the the side of the managerial team leader to transmit his vision to the team concerning the importance of the labor in a way which will motivate them. cult within the company. 7. Emotional intelligence 2. The quality cult . “Employees together with self-confidence is one of should be remunerated for what they do the essential qualities of a leader. well, not for everything they do” – is one Emotional intelligence represents the of the slogans of quality management. ability of knowing yourself, it means to Quality is the most important gain selfcontrol necessary to attain competitiveness factor. As a result, this emotional stability, to be empathetic by value should be promoted in the entire understanding the other’s interior state organization, each employee influencing with the purpose to adjust your own to a certain extent the final quality, as it behaviour. All this is considered to be a is perceived by the client.

79 3. Innovation and improvement . ACHIEVEMENT = The human resource of the organization COMPETENCE + MOTIVATION should be open to innovation and improvement so that it assures the Starting from the affirmation that development and progress of the firm. the human resource is the most 4. Adaptability. We live in a important resource of an organization, society in which the only certainty is by being the engine of any business, we change. In consequence, the can underline the importance of employees of the organization must human resource management which adapt to the new conditions imposed by has the following objectives: permanent the market. Adaptability is a value which increase of employee value through facilitates the long term success of the different professional development organization. programs and motivating the personnel in order to obtain performance. V. Human capital We will never be able to talk about VI. Total quality the long term success of an management(TQM) organization in the absence of a Practice has demonstrated that competent and motivated human quality has a growing economic and resource. social importance. The management One of the formulas of approach has to co-ordinate the change process for the human resource competence of the existing attitude towards a problem is the following: “Culture of quality”. ”Management errors are the most costly” is one of the COMPETENCE = assertions worth meditating on 4. KNOWLEDGE + SKILLS + APTITUDES Total quality management represents a new management system Knowledge is the result of the of the organizations which use specific educational system an individual techniques in order to attain the benefits of. following goals: Aptitudes are the innate qualities 1. The satisfaction of the implicit of a person. They cannot be created, and explicit needs of the customers and but only activated or developed, surpassing their expectations. sometimes, some of them being latent, 2. The gain of a competitive inactive till the moment where they are position on the market through the solicited. increase of productivity and continuous Skills are the result of the improvement of quality. implementation of theoretic knowledge 3. The creation of a management with the contribution of aptitudes. system based on the involvement of all Normally, we refer indirectly to them, employees, and most importanly of the choosing to talk about professional managerial team, which has as focus experience in general or specialized in a the client, for which they promote a certain field of professional activity. genuine cult. In order to have noticeable Total quality management means professional results, an individual , first of all, the constant improvement of needs more than competence. He needs something which leads to achievement, fact reflected by the 4 Ada M. Tomescu, ”The management of expression: integrated systems.Quality & environment”, Publishing House of Oradea University , 2004, p.9.

80 the products, processes and quality VII. Ethics system, which are meant to add value Ethics are defined as a systematic to the client’s perception through the reflection upon the moral consequences creativity and participation of the whole of decisions 6.Moral consequences can personnel to this effort. TQM includes be judged through the potential the technical, economic, juridical, damages brought to the beneficiaries of ergonomic and psychological aspects the decision. The beneficiaries can be which intervene in the completion of the persons from within or outside the mission 5. organization which can potentially be We consider to be relevant the affected by the decision taken. Relevant following enumeration of total quality to this subject is the presentation of the management principles: aspects which define a morality 1. The involvement and total standard in the taking of decisions: participation of top management 1. Honest and straightforward 2. Orientation towards customers communication. For example: to do 3. The involvement of the whole publicity and label the products in a personnel sincere way, to not distort the proposals 4. The generalization of the which need to be passed on to relation: CLIENT – SUPPLIER(internal superiors. and external) 2. Fair treatment . For example: 5. The continuous improvement of the objective evaluation of employees, quality through actions that prevent equitable salaries, the obeying of predicaments auction procedures, impartiality in the 6. “Zero defects” relations with suppliers, the assuming of 7. The taking of decisions responsibility as opposed to blaming the considering available information and subordinates. facts 3. Fair competition . For example: 8. Orientation towards economic avoiding to offer bribe in order to obtain efficiency , using as a basic tool the an order and refusing to reach a price evaluation of quality costs agreement with competitors. 9. Systematic view of the 4. Corporate responsibility . For organization example: Do not pollute, be concerned These nine principles should not about the health and safety of your remain abstract values, they should be employees, get involved in the incorporated in the organizational line of community. attack by coming up with an 5. Obeying the law . For example: organizational system capable to legally avoiding taxes, obeying the accomplish this. The implementation of labor legislation and all laws. total quality management in an On the other hand, there is a organization is a requirement of the long series of ethical issues which emerge in term success of the organization. an organization: the conflict of interests between employees, sexual harassment, environment problems, the content of commercials, the subjective evaluation of employees, discrimination based on various reasons, the signing

5 Ada M. Tomescu, ”The management of integrated systems.Quality & environment”, 6 Gary Johns, ”Organizational behaviour”, Publishing House of Oradea University , Economic Publishing House , Bucharest, 2004, p.88. 1998, p. 406.

81 of contracts with the aid of bribe, the interests and reduced co-operation with hiring of staff on preferential criteria, the other party. unjust declarations concerning 2. Accomodating – charaterized superiors or state institutions. by the fact that an individual co- Ethics are also a problem of operates with the opponent but organizational culture. We must neglects his or her interests. emphasize that even if unethical 3. Competing – style which decisions can bring immediate and maximizes the use of both co-operation considerable benefits, they affect in a and individual interests. negative way and on a long term the 4. Compromising – attempting to image and success of the company. resolve a conflict by identifying a Romanian organizations should be solution that is partially satisfactory to open to the problem of ethics, imposing both parties, but completely satisfactory to their employees certain values to neither. It combines in equal doses regarding the matter. indiviual interests and co-operation. 5. Collaborating - cooperating VIII. Conflict with the other party to understand their Conflict is a constant in any concerns and expressing your own organization’s life. It can release the concerns in an effort to find a mutually creative energies of the employees or, and completely satisfactory solution. It on the contrary, it can have a also combines self-concerns with co- considerable destructive potential. operation. Interpersonal conflict is extremely The main role in conflict harmful, because a person, a group, a management is occupied by department in an organization can negotiation. Through negotiation one frustrate another in attaining the makes an attempt to reach a objective that has been set 7.In what satisfactory deal with the other party. concerns attitude, the parties involved in Mediation is one of the ways of a conflict grow mutual aversion, resolving a conflict. consider one another unreasonable and The managers of an organization develop negative stereotypes about the must have the ability to manage opponents. conflicts, in the way that they need to The most significant causes of make the most out of the company’s organizational conflicts are: interests and reduce their destructive 1. Identifying oneself with the potential. Most of the times, conflict can group be an important improvement source 2. Interdependence within the organization. 3. Differences in power, status and culture IX. The Brand 4. Ambiguity The importance of this subject is 5. Insufficient resources given by the fact that brand influences The main styles of conflict decisively the buying decision of the management are: consumers. This fact is more and more 1. Avoiding – characterized by obvious on the Romanian market, thing the low capacity to affirm oneself’s to be considered by the Romanian economic organizations. Brand is perhaps the most important intangible value of an 7 Gary Johns – „Organizational behaviour”, organization, representing a Economic Publishing House, Bucharest, considerable component of it’s wealth. 1998, p. 420.

82 Relevant in this way is the affirmation of 1993 and 1994 the company has former CEO of Coca-Cola 8, Robert assumed a local role, having as target Goizueta: ”Even if all our factories and Transilvania. equipment would burn to the ground • 2000 brings to the firm the over night, the situation would not leader position on the Romanian manage to affect a great deal the value market. Therefore, we can talk of a of the company. In fact, all this value brand with national notoriety , at present resides in the commercial active Jolidon products being distributed assured by our franchises and collective through a network of 30 personal shops knowledge within the company”. The and many other partner stores. importance of a brand also follows from • In February 2000, the company the words of Niall Fitzgerald, the opens towards the European market , president of Unilever: “A brand is a by opening a branch in Budapest – deposit of trust, fact which matters the Jolidon Budapest, in 2002 being most when choices multiply.” inaugurated Jolidon Hungary. Obviously, brand is a tool used to obtain • July 2001 marks the opening of the loyalty of customers, with direct Jolidon Italy in Milan. In 2002 the consequences on the financial results of volume of the sales on the Italian the organization. market triple. In our opinion, any Romanian • The company moves to attack organization which wishes to be the French market by opening a store in successful on the market on a long the centre of Paris and a storehouse in term, should develop a strong brand, Lyon. the fame of it having to exist at least on • At present, the company a national level. exports to the USA, Russia, South In the context of globalization and Africa, Saudi Arabia and other that of the integration of Romania in the countries. EU, we believe that Romanian The development of a brand organizations should commence means a long process and considerable assuming a Balcanic role and why not resources, but it has to be seen as a an European one, by continuously long term investment , rather than an extending their operating area and expense. implicitly the renown of their brand. A positive example of an organization X. The value offered to target which has assumed an European role is clients that of Jolidon. Next, we will briefly 9 Value signifies the making of that present the history of this brand : combination between quality and price, • 1993 is the year the company which fits the market the best. The has been founded, in the beginning value offered to the target market carrying out it’s activity in an apartment means to satisfy the customer’s and having only two second-hand demand on the lowest possible sewing machines in it’s endowment. purchase and utilization cost. The duty • The spring of 1994 brings it’s of any economic organization is to first participation in an exposition. In create value for the customer, more exactly, to include it in the promise it

8 makes to the market, and to deliver it as Philip Kotler -”Marketing from A to Z”, it has promised. CODECS Publishing House, Bucharest, A relevant example to what value 2004, p. 108. 9 means is the case of a German bank X: “Jolidon – 10 years of existence” – ”German bank X has numerous presentation CD.

83 branches throughout Germany. Each Conclusions branch manager has the responsability A growing number of firms enter to help the customers get richer. The the competitive market , now that branch manager doesn’t settle for competition does not exist only on a opening accounts and deposits and local level , but also on a global level. granting loans. The branch manager The firms which operate on the national teaches the clients how to better save, market should do their best in order to invest and purchase. Each of the come up with products equally branches offer magazines on the competitive to those on the global subject and also organize courses on market. investments with no participation fee for The economic gap between it’s clients, with the purpose of providing Romania and the majority of the EU them with the necessary skills to obtain member countries represents an more wealth. ” impediment in the assuring of The offering of value on the market competitiveness on the European is a condition to take into account in market. We believe that this problem order to have happy and loyal can be surpassed. customers, the base of any long term The success or failure of the business.This concept is a very adaptation of Romanian economic significant aspect, which Romanian organizations to the conditions of the companies should take into account, expanded European market will considering that Romania will soon join demonstrate the competence the the EU. managerial teams have shown in approaching the ten concepts revealed above.

REFERENCES

[1] De Vries, M. K., Leadership – the art of leading , CODECS Publishing House, Bucharest, 2003. [2] Johns C, Organizational behaviour , Economic Publishing House, Bucharest, 1998. [3] Kotler Ph., Marketing from A to Z , CODECS Publishing House, Bucharest, 2004. [4] Prodan A., Successful management , Polirom Publishing House, Iasi, 1999 [5] Stanciu I., Total quality management , Universitary Book Publishing House, Bucharest, 2003. [6] Tomescu, A. M., The management of integrated systems.Quality & environment , Publishing, House of Oradea University , 2004. [7] ”Jolidon – 10 years of existence” – presentation CD.