Is It Possible for Organizations Operating in Dynamic Environments to Achieve Person-Organisational Fit to Improve Organizational Effectiveness?

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Is it possible for organizations operating in dynamic environments to achieve person-organisational fit to improve organizational effectiveness?

Done By – Nadika Dharmawardena – S00094123

Today we live in a world where change is inevitable. Organisations today face dynamic environments characterized by substantial and often unpredictable technological, political and economic changes. The key to survival and succeeding is adaptation, in dynamic environments often an organisations only option is to literally “do or die” with regard to change. Tyagi & Gupta (2005) indicates that the central point of personal and organisational effectiveness is a sense of being able to make contributions and make somewhat of a difference in any way possible. As individuals we feel content and fulfilled when we make positive contributions to our communities, families and organisations. Similarly organisations can only achieve their potential when they positively impact the lives of various stakeholders and related entities. However the opportunity to contribute only arises if there is a fit between what people want to achieve and what the organisation wants to achieve. Thus creating a fit between the person and organisation allow both to be effective. In the past few years the concept of Person-Organizational fit (P-O) has been in a state of flux, with many theorists putting forward conflicting views on the conceptualization of fit, its measurements and its boundaries. In the broad sense of the word it is defined as the compatibility between the person and the organisation (Li, 2006). As many organisations operate in dynamic environments; many changes take place and organizations have to cope with these changes by adapting their business and strategies to the turbulent environments. This essay goes on to explore the effects the changes mention have on the P-O fit and if dynamic environment allow organisations to achieve person-organisational fit in order to enhance and reach organisational effectiveness. According to evidence it can be seen that it is possible to achieve P-O fit in dynamic environments however it would not be the ideal tool to implement to improve effectiveness due to the evolving nature of the environment as it hinders growth and discourages innovation which would not lead to organizational effectiveness (Tyagi & Gupta, 2005). P-O fit refers to the extent to which and individual and the employing organization are compatible. There are however many definitions that have been put forward over the years such as value congruence (O’Reilly et al., 1991), Goal congruence (Vancouver et al., 1994), needs and supplies demand abilities (Edwards,1991) in addition a personality-climate fit (Ryan and Schmit, 1996). However the most commonly used definition is the value congruence perspective. Verquer et al (2003) value congruence as the extent to which individual and organizational values match. Rynes and Gerhart have gone a step further and pointed out that the P-O fit is more than a mere match, as it usually implies a sense of chemistry (Bellou, 2009). Another way of conceptualising the compatibility between the person and organisation uses the distinction between supplementary and complementary fit. Supplementary fit occurs when a person supplements or possesses characteristics that are similar to other individuals in an environment. This congruence can be differentiated between complementary fit, which occurs when a person’s characteristics make whole the environment or add to what is missing (Tyagi & Gupta, 2005).Further more Cable and Parsons (2001) states that P-O fit is a crucial factor in maintaining a flexible workforce and creating a high degree of organizational commitment in a tight labour market and a competitive business environment. Supporters of P-O fit state that the construct is crucial in the study of organizational effectiveness because it has made improvements to the...
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