Pressure Points Due to Growth

The following report is about preparing a risk assessment report on the provided fictional company Property Millionaires. There are many forms or aspects that have to be considered to prepare this report.  The different parameters that have been provided have to be discussed in a well-mannered process. The different things like the pressure points due to the point if growth of a company, the various pressure points due to the company culture and the pressure points due to the information management system has to be discussed to have a better understanding of the reader. There are other parameters as well that are covered under those categories. These categories will help to assess the point of risk conditions of a company. These risk conditions have to be understood by the authority so that they can come up with a solution to the problems.

The first pressure point that has to be taken under consideration in this context is the pressure points that arise due to the fast growing of the company. It is not always a positive sign for the companies to celebrate the success in a grand manner. Situations may arise from the fact that the company may be under a great risk in case of they are not doing the particularly necessary things to manage their growth. The successful people in achieving them rewarded in plenty and the unsuccessful ones are ignored. Thus, performance pressure becomes the first pressure point for growth (Argote 2012).

i) In relating to the context, it can be said that Property Millionaires have set the targets for their employees in such ways that they have to be paid on commission basis and the people whose sales performances will be the best they would be aptly rewarded and the regional managers would applaud for them. The earnings depend on the percentage of $10,000 seminar fee. The employees feel immense pressure on their heads as they go hard on achieving their targets.

ii) Rate expansionis the second parameter of this first pressure point (Ellis 2012). The managers have to take the point of considering the speed of the expansion in the given infrastructure of the company. When this rapid expansion of the company is not well equipped with proper infrastructure, the quality point must go down. The regional managers are the ones who do not want to listen to any bad news regarding the work (Argote 2012).  Whenever bad news comes, they always keep aside their consultants and only focus on their performance report and seminar sales figures.

iii) The third pressure point of the employees is the inexperience of the key employees of the organization (Ellis 2012). There are some points when the management needs to hire more people for doing the pending works when the organization is soaring high on success. At this point, managers overlook the backgrounds and the experience of the employees. Thus a communication gap remains in their understanding of the jobs and performing better (Bakker, Tims and Derks 2013). The inexperience of the key employees leads to the unhappiness of the clients. The owner of the organization George Kirzner was very enthusiastic about this surging growth but the regional managers were not. This had reduced the employment standards as many persons were employed without any sales experience in the past.

Pressure Points Due to Culture

The managers of the organizations have to think about taking risks to improve the organization’s status. They are sometimes ready to put all the reputation of the organization at stake and play gamble by taking huge risks to get organizational gain (Argote 2012). They commit to their customers in such ways that even they know that it is impossible to fulfill. They always invest in risky deals as their confidence is soaring high but their money is loose.

i) In this context, the scenario of Property Millionaires has to be discussed. The factor of entrepreneurial risk takingis an obvious factor to be taken under consideration (Kreiser et al. 2013). The employees of the organization like the consultants go on to convince the clients about the seminars. They try to manage the clients in such ways that the risk taking seems to be so much higher because of the facilities they promise to give. These kinds of risk takings can affect the organization either in positive or in negative ways.

ii) The second factor for this point is the executive resistance to bad news. There are many people in the organization who like to be centered with the people who always talks about the positive points of the organization. The achievements of the organization, the meeting of goals by the consultants are the things that they like to hear (Argote 2012). This reflects in their works as well. Just like this in the Property Millionaire, the regional managers do not want to focus on those things as they do not have any knowledge about the consultation process and they leave the consultants alone.

iii) The third factor in this point is the level of internal competition (Rothaermel 2015). The managers in the organizations put their employees in some kind of race and they have to run to meet those goals. This requires a lot of extra effort so that this can be achieved. While promotion is the ultimate goal, the level of information sharing becomes very rare. No one wants to give away their added advantage in sales to retain their position (Amayah 2013). The consultants eye to get their advantage in trying to capture the customers and they take gambles. In case the gambles pay off, they get huge rewards and if does not, they suffer in their professional career. In Property Millionaire, the consultants got involved in that rat race and they try to perform their best to achieve their aggressive sales targets. In this manner, they go on to commit on providing best return on investment on the seminars on real estate.

This section deals with the information sharing within the various departments like the consultants, regional managers and the senior management team in Property Millionaire. The information about many things has to be properly distributed so that all of them can be aware about the decision making in the company.

i) The first aspect of this factor is thetransformation complexity and velocity (Sun and Anderson 2012).This means the aspect that increasing of the volume and velocity of transactions has a greater impact on the success of the organization. In Property Millionaire, many new employees were recruited to strengthen the workforce of the organization (Ankli and Palliam 2012).  The unfortunate fact was there were not enough information systems to support the transformation complexity. They had very limited access to the performance data and they used to spend much of their time in resolving the unanticipated emergencies.

Pressure Points Due to Information Management

ii) The second factor in this is the gaps in the diagnostic performanceof the employees (Jenter and Kanaan 2015). The performance data of the employees and the consultants have to be stored in the information systems of regional managers or the senior management. Otherwise, the advancement of the organization cannot be measured properly. In Property Millionaire, the regional managers could not assess the performance data and only concentrated on the sales figures. These aspects created a gap in the diagnostic performance as they were not aware of the level of improvements they need to do (Jenter and Kanaan 2015).

iii) The third factor is the decentralized decision making (Belavina and Girotra 2012).  It is a positive factor that works behind motivating and providing a sense of creativity and innovation in the regional managers. They can do their works independently with much autonomy. The top management only goes through the performance, resource allocation and others. In Property Millionaire, the regional managers enjoy a great deal of autonomy as they do not even bother to send the monthly performance reports to the senior management (Lane et al. 2013). The top management also does not act like a group that would bring success to the organization. They act in their own ways and it affects the environment of the organization.

In respect to all the discussions on various discussions, a risk exposure calculator has to be prepared to assess the performance of Property Millionaire (Saunders and Cornett 2014).

Conclusion 

In the concluding part of the report, it can be said that sustainability is a great matter of concern for the organization and they have to maintain the guidelines to sustain in the business market. Property Millionaire has not put the proper things n the proper places so that they can manage the risks in the industry. Their too much ruthlessness in treating the unsuccessful employees has questioned the ethical decisions of the company. They have to learn to co-operate if they want to sustain for a long-term period.

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