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Table of Contents

Introduction

Contingency factors are the organisational capabilities, factors, and the environmental conditions influencing the organisational design and performance. Jones Lang LaSalle (JLL) is a worldwide real estate firm offering owners, occupiers, and investors with extended commercial investment services and property management, as well as comprehensive services. It also provides residential property services to its customers. The firm’s organisation design process is conducted in a manner that allows the firm to acquire an improved means of delivering performance. In order to achieve this, the senior managers of the firm have to consider effective contingency factors. This paper seeks to identify the key contingency factors that the senior managers of Jones Lang LaSalle are supposed to consider in the firm’s design process to ensure it has the best ‘vehicle’ to deliver performance. The paper looks at the contingency theory, the firm’s operations, and its organisational design process.

Organisation background and its organisational design process

JLL is an organisation dealing with real estate and property management services to investors, occupiers, and owners in different nations, such as India, U.S.A., Australia, and other nations in the world (JLL, 2015). The design process of this firm is conducted through research and development activities where the senior managers look for information associated with local and global real estate markets. The organisation has the ‘best property consultancy’, but it would wish to continue improving its methods of delivering performance (Daft, & Samson, 2014). The organisation ensures listening to the voice of its customers and their experience. Through its more that 500 CRE executives globally, JLL captures the industry opinions. In order to improve its retail and wider market, the senior manages of the firm have to consider the key contingency factors that would act as a vehicle to delivery of performance of the firm (Schermerhorn Jr, 2009).

Contingency theory

Contingency theory is a behavioral theory that argues that there is no specific leading or organising way or leadership/ organizational style that is better in a number of situations and may not be effective in others (Gardner, & Schermerhorn Jr, 2004). Ultimately, there is no effective means of organizing a firm, make decision, or lead an organization, thus any way is the best depending with the organisational design process. Different circumstances have different solutions that are effective; hence, different situations require diverse organisational structures (Yayla, & Hu, 2011). In the JLL organisational design process, the form requires to operate unique solutions associated with improved performance in provision of real estate services globally. These solutions become effective according to the firm’s changing situations.

Contingency factors

Contingency factors are the extra and intra-organisational factors or the external environmental ups-and-downs found in the managerial context of a company (JLL, 2015). The contingency factors depend with the level of performance that the firm wishes to realise because different company are structured differently and have different targets. The senior managers of JLL have the responsibility associated with development of effective organisational design, learn the contingency factors that influence its organisational design and then plan a structure to match the particular contingency factors (Schermerhorn Jr, 2009). The key contingency factors that the senior managers of JLL organisation should consider to be able to deliver performance in the real estate industry are as follows; There is the environment, the organisational size, the strategy, and the technology among others.

Environment;

The industrial environmental uncertainty is one of the contingency factors that influence the organisational design process. It is very essential for the organisation to achieve its environmental requirements when conducting its operations (Gardner, & Schermerhorn Jr, 2004). This is because there are environmental demands that affect the performance of a firm. It is perceptible that the environment has some influence on the JLL’s decision making. The senior managers of the firm face some difficulties associated with the effort of making decisions because of operating in an indecisive or unpredictable industrial environment (Daft, & Samson, 2014). In the same way, the stability and expectedness of the real estate industry environment possess an undeviating bearing on the capability of the firm to operate effectively and meet its goals and objectives. Real estate environment is an unbalanced market environment that keeps on changing rapidly and is less conventional; thus being associated with two necessities (Schermerhorn Jr, 2009). This is where the firm is supposed to improve its capability to adapt to upcoming changes in the real estate market, thus the need for flexibility and responsive ability. In addition, the company is needed to have greater management among its diverse departments. It is evident that some environments offer more mechanistic and vertical organizational designs to their operations (JLL, 2015). However, it is necessary for the firm to operate through adaptive and horizontal organizational design because its operating environments are uncertain (Yayla, & Hu, 2011). It is evident that the corporate governance structure of JLL is faced with various changes, which are as a result of the highly developed environmental transforms. Moreover, the adoption of a developed performance administration system and adoption of relevant environmental modifications are a sufficient amount to enhance promotion of additional development of the firm’s operational system in its entire market. Despite the environmental uncertainty, JLL should always engage into research and development to improve its property design and improvements associated with customer service.

Strategy:

This refers to the scope and direction of the particular company over a long period, which enhances achievement of benefits to the firm through its usage of the resources in its operational environment where JLL is supposed to meet the interests of its customers and its stakeholders’ expectations (Schermerhorn Jr, 2009). It is clear that, logically organisational structure goes after strategy for the reason that organisational structures are made to accomplish its objectives through implementation of the most effective strategies. In addition, the moment the company’s strategy changes, its operational structures must have some changes (JLL, 2015). At the firm’s commercial level, the operational strategies are formulated from the support of the company’s vision, mission, and strategic goals, as well as objectives (Daft, & Samson, 2014). The cost-leadership strategy should be set by the senior managers of JLL in order to allow the firm to experience formal, as well as highly prepared performance in its management and operational systems. The management team is supposed to plan effectively, develop, and be in a position to sustain the firm’s competitive advantage where it requires effective resources in the form of human and physical resources to compete with its global rivals. It is also important for the management team of JLL to ensure that the expectations and values of the organisation’s stakeholders are met efficiently (Yayla, & Hu, 2011).

Size of the organisation:

The size of the firm is associated with the number of employees that are working in the organisation. JLL has around 500 branch companies with over 53,000 employees inclusive of the support and professional staff (Gardner, & Schermerhorn Jr, 2004). This makes it to be a large organisations, thus making its structurally departments to have wide division of labour and advanced rules and set of laws, performance evaluation and budgeting actions. In order to function through an effective vehicle of delivering performance, the senior managers of JLL are supposed to consider the firm’s size, which is the number of employees that are supervised (Yayla, & Hu, 2011). They should set an efficient method of supervising all the employees in the entire companies of the JLL organisation in order to meet their needs and motivate them to work towards meeting the company’s goals and objectives. Furthermore, the management team should listen to the voice of their subordinates and involve them in decision making for realization of the firm’s objectives (Daft, & Samson, 2014). There should a better coordination method where duties and roles to be played by the employees are well organized and allocated without discrimination and through a manner that allows safe and comfortable working environment.

Age of the organisation:

This is the period through which, the firm has been operational since its formation or establishment moment (Schermerhorn Jr, 2009). Within the period of operational of JLL, the firm incorporates a number of standardised systems, regulations, and procedures. Since formation, midlife, and maturity of JLL, its success and goals have been evolving. This is whereby during its establishment time, the real estate organisation that was formed by the founders started from being informal and it had no rules or regulations until it started being functional. In addition, the decision making process was centralised to the owners of the founders and its tasks were not specialised. Apparently, in the midlife stage of JLL, it experienced much growth through expansion and hiring of more employees, as well as opening of more branches in different countries (JLL, 2015). The process incorporated division of labour, following of, and formal rules and guiding principles. The decision making practice remained to the shareholders and the founders of the firm although shared among several parties close to the founders (Yayla, & Hu, 2011). As the growth stage continues, the JLL Company has been becoming fairly large. This is for the reason that, he firm now has widespread sets of obligations, policies, regulations, as well as systems to direct the diverse employees accordingly. The management team applies the control systems whereby professionals are employed, roles are decentralised and power is delegated to its efficient organisational structures. Furthermore, in the firm’s maturity stage, control systems, budgets, professional staffs, regulations, rules, and an advanced division of labour are put in place. However, the senior managers of JLL are supposed to consider all these when making steps aimed at improving the firm’s performance. Since the firm has been operational for a long time, it is necessary for the senior managers to ensure that improving all the strategies and ways followed in its operations to strengthen it, but not destroying its strong foundation (Gardner, & Schermerhorn Jr, 2004). This would enhance the firm to perform better and to continue realizing its goals and objectives, as well as meeting the customers’ needs and interests.

Technology:

Technology is among the contingency factors that the senior managers of JLL should consider in improving the firm’s performance. Technology refers to the process of applying scientific knowledge for meeting of the practical purposes in an industry (JLL, 2015). This is where there is application of equipment and machinery through scientific information. It is evident that some sort of technology is applied in the process of converting the firm’s resources into the desirable outputs according to its operations. Ultimately, technology comprises of the knowledge, materials, work procedures, and machinery, which are used to change the inputs into the expected outputs. The technology applied in JLL to offer the real estate services decides the type of the organisation followed in the operational system. The technology applied in this fair includes the application of knowledge, methods, work, and equipment in the renovation process of offering quality and satisfactory real estate services and this tends to be an important contemplation in the firm’s organizational design (Gardner, & Schermerhorn Jr, 2004). It is clear that JLL is clearly defined by following of technology in construction of the real estate properties and offering services to customers, as a form of parameter. In addition, the firm depends on technological changes in its process of changing the quality of the properties and methods of offering the services. Moreover, technology enables JLL to gain competitive advantage over its rivals in the global market because of winning customer’s trust. It is clear that changes in technology lead to uncertainty in the firm’s operational environment where its senior managers are supposed to make strategic choices (Daft, & Samson, 2014). Additionally, the entire processes and actions of the firm should go hand in hand with the current technology status. It is widely noticed that in the current generation, technology keeps on changing without being expected, thus the opportunity of the JLL’s senior managers to be ready to implement changes in the firm’s operations regularly.

People:

People or the public is another contingency factor that should be put into consideration by the senior managers of JLL when planning its organisational design process to effect on its performance (JLL, 2015). Even though organizations are likely to become additionally mechanistic as they develop in size and age, the society is supposed to be involved in all aspects associated with marketing of the products. In addition, JLL, senior management team should apply designs that are supported by the public to enhance innovation and inventiveness in varying industrial environments (Yayla, & Hu, 2011). Ultimately, organizational culture, which is related to people’s attitude and behaviour, as well as norms and values, has to be effective in the performance management of the firm. It is clear that there is a relationship between the firm’s strategy, formal control, culture, and social networking, which involves the society. The academics associated with contingency theory construct a theoretical model that tend to reveal the implication o the capability of the organisation to be innovative results from the interplay among the; strategy, culture, and� social networking, as well as the formal performance direction of the management team. It is important for the senior managers to conduct a thorough research for there to be improved performance. It is evident that people’s understanding of the global real estate market can be advanced. During the process of constructing the real estate property that is offered by JLL Company to its customers, the senior managers should ensure that the project is conducted according to the technology desired and required by the customers (Daft, & Samson, 2014). This is because technology is associated with a very fast change, which requires the managers to ensure renovation and improvement of the real estate property according to time and technological transformation. In addition, communication with customers should be done through the online system or over the internet in order to offer efficient, timely, and quality services and for customers to be able to make their decisions effectively. The staff should also be intelligent and well equipped with information associated with application of advanced technology in order to handle different situations without being affected by the complexity of the applied technology. It is essential for the senior managers of JLL to ensure that the employees are trained regularly to comply with the technology and to improve their skills (Gardner, & Schermerhorn Jr, 2004). This would help the firm to meet its goals and meet the needs and interests of customers, thus gaining good market position and competitive advantage.

Conclusion

Delivering performance is very essential for all organisations. It is the role of the management team to ensure that the company follows the best way of improving its performance through consideration of the key contingency factors. It is apparent that contingency theory is essential to all organisations because different firms are faced with different situations where they require different solutions towards them. JLL a real estate service provider require to improve its means of delivering performance. The senior managers of the company have to consider the contingency factors, such as technology, uncertainty in operational environment, the size, or the structure of the organisation, the age or the period of existence of the firm, and the people or the society. It is clear that these contingency factors keep on changing depending with the company in question. In addition, the contingency factors considered in large organisations are different from those considered in small organisations. Consideration of these contingency factors would work towards allowing JLL to improve its means of delivering performance.

References

Daft, R. L., & Samson, D. (2014). Fundamentals of Management: Asia Pacific Edition PDF. Cengage Learning Australia.

Gardner, W. L., & Schermerhorn Jr, J. R. (2004). Unleashing Individual Potential:: Performance Gains Through Positive Organizational Behavior and Authentic Leadership. Organizational Dynamics, 33(3), 270-281.

JLL. (2015) What’s new in Commercial Real Estate? Retrieved from; http://www.jll.com.au/australia/en-au

Schermerhorn Jr, J. R. (2009). Exploring management. John Wiley & Sons.

Yayla, A. A., & Hu, Q. (2011). The impact of information security events on the stock value of firms: The effect of contingency factors. Journal of Information Technology, 26(1), 60-77.