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Nama: WONG SHEAU WENNo. Matrik: M20102001127

No. Kad Pengenalan: 790531085808Program: Sarjana Pendidikan (Pengurusan Perniagaan)

Fakulti: Pengurusan dan Ekonomi

Semester: Semester 2 Sesi 2010/2011Kod dan Nama Kursus: PPB 6014: Gelagat dan Pembangunan OrganisasiNama Pensyarah: Dr. Haji Abdul Raheem bin Mohamad Yusof 

Tajuk: Point-Counter Point: Successful Organizations Put People First

I agree with the statement that successful organizations put people first. This is because

organizations that put people first have more dedicated and committed workforce. Theseemployees are willing to put the extra effort to do whatever is necessary to see that their jobs are

done properly and complete. People first strategies also lead to organizations being able torecruit smarter, more conscientious and more loyal employees.

In an article titled "Putting people first for organizational success," published in theAcademy of Management Executive, Jeffrey Pfeffer and John Veiga discuss the important role

that people play in business success. Studies have shown that enormous economic returns areobtained through the implementation of practices that put people first. The review of these

studies has led Jeffrey Pfeffer and JohnVeiga to conclude that an irrefutable business case can bemade through the way it manages its people, are the real and enduring sources of competitive

advantage. They recommend that managers take seriously the often heard adage that "people areour most important asset."

Jeffrey Pfeffer, in his book, The Human Equation, answers the question of how

substantial benefits in profits, quality, and productivity can occur simply by implementing high-commitment management practices. He identifies three reasons for the connection between how

people are managed and profitable results:

1. People work harder, because of the increased involvement and commitment that comes fromhaving more control over and say in their work.

2. People work smarter; high performance management practices encourage the building of skillsand competence and facilitate the efforts of people in actually applying their wisdom and energy

to enhancing organizational performance.

3. High commitment management practices, by placing more responsibility in the hands of people farther down in the organization, save on administrative overhead as well as other costs

associated with having an alienated work force in an adversarial relationship with management.

In his book, Jeffrey Pfeffer identifies seven dimensions that characterize most of thesystems producing profits through people. They include:

1. Employment security.

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2. Selective hiring of new personnel.

3. Self-managed teams and decentralization of decision making as the basic principles of organizational design.

4. Comparatively high compensation contingent on organizational performance.

5. Extensive training.

6. Reduced status distinctions and barriers, including dress, language, office arrangements, andwage differences across levels.

7. Extensive sharing of financial and performance information throughout the organization.

People are an organization¶s most important and powerful asset. In an environment where

businesses are continually challenged to find ways of achieving competitive advantage, it is

people who can truly make the difference between success and failure. That is why we carepassionately about understanding people who make up our organization and those we intend to

attract as prospective employees for our business.