3673 research outputs found
Sort by
Effects of Strategic Planning On Organizational Performance: A Case of Event Planning Firms in Nairobi CBD
No full textA Research Project Report Submitted to the Chandaria School of Business in partial fulfilment of the Requirement for the Degree of Master of Business Administration (MBA)The general objective of the study was to identify the influence of strategic planning in event planning firms in Nairobi Central Business District. The study was undertaken to further seek to answer the following questions: Does a vision, mission and action plan as strategic planning tools lead to performance of event planning firms in Nairobi CBD? What is the nature of strategic planning by event planning firms in Nairobi CBD? How does the strategic planning practice contribute to the performance of event planning firms? The descriptive design was used because it ensured complete description of the situation. The target population of interest in this study comprised of event planning firms in Nairobi CBD. The sample size for the study was selected from the event planning firms in Nairobi’s CBD. The study targeted a sample size of 60 (30%) event planning firms. The study adopted non-probability purposive sampling method to arrive at the participating event planning firms. The study performed data collected through a questionnaire structured to meet the objectives of the study. Descriptive statistics was undertaken to analyze quantitative qualitative data using content analysis. The findings strongly acknowledged that strategic planning is the foundation that improves the business processes and ultimately reduces the internal costs of operation. The study concluded that there is a definite strategic fit between the needs of the environment and what the business offers, as well as what the business needs vis a viz what the environment can provide. The study also concluded that there is a need for firms to analyze the external environment pertaining what they do. This is of great importance for researchers and firms as it helps them comprehend the motivation of firms’ activities and helps them to take appropriate action and respond to the changing environment. This study also alluded that strategic planning in event planning firms is an important instrument for forecasting and planning which enables the firm to meet customers’ demands and changes which might crop up while discharging its duties. it would be a useful contribution to investigate the use of planning techniques and the pervasiveness of the process in service organizations. The study recommends that there is need for strategic fit between the needs of the environment in respect to what the business should offer, vis a viz what the business needs with regards to what the environment can provide. Firms should take into consideration all the steps take in the strategic planning process as important
Effects of Online Systems on the Financial Performance of Banks Listed In Nairobi Securities Exchange
No full textA Reseаrch Project Report Submitted to the Chаndаriа School of Business in Pаrtiаl Fulfilment of the Requirements for the Degree Of Mаsters In Business Аdministrаtion (MBА)The mаin purpose of this study is to аnаlyze the effects of online systems on the finаnciаl performаnce of bаnks in Nаirobi. The study will be guided by the following Reseаrch questions: Whаt аre the effects of online systems services on the finаnciаl performаnce of bаnks in Nаirobi? Whаt аre the effects of online systems аdoption on the finаnciаl performаnce of bаnks in Nаirobi? Whаt аre the effects of online systems security on the finаnciаl performаnce of bаnks in Nаirobi?
The study adopted descriptive research method of study. Descriptive research helped the researcher to answer the question of who, what, where, when or how much in determining the effects of online systems on the financial performance of banks in Nairobi. The study targets all 55 ICT and finance managers in all the 11 Commercial banks listed by the Central Bank of Kenya. The researcher employed purposive sampling in selecting two respondents in each sampled bank. Questionnaires were distributed to one senior ICT and finance in the selected banks. Using Yemane’s formulae to calculate sample size, sample size used for data collection was 49 respondents from the 11 sampled banks. Quantitative techniques used were descriptive statistics which consisted of the mean, frequency, percentages and standard deviations while Qualitative techniques to be used are content analysis using Statistical Package for Social Sciences (SPSS). Multiple regression analysis is applied to establish the relationship between the study variables to create a new single study variable.
A Pearson correlation analysis was done to establish the relationship between the dependent variable (financial performance) against online system service and the result established a weak positive relationship between the variables, which was significant. Therefore, an increase in variables of system services lead to an increase in financial performance.
A Pearson correlation analysis was done to establish the relationship between the dependent variable (financial performance) against online system adoption and the result established a strong positive relationship, which was significant. Therefore, an increase in system services adoption lead to an increase in financial performance.
A Pearson correlation analysis was done to establish the relationship between the dependent variable (financial performance) against online system security and the result
v
established a strong positive relationship which was significant. Therefore, an increase in system services adoption lead to an increase in financial performance.
It was concluded that online systems services are aligned to the mission of the bank and therefore encourages the use of Online Systems Services to support daily activities. The benefits of Online system justify the amount of investment and therefore makes it very easy for the bank to organize its banking activities. Secondly, employees the banking sector are in full support of the implementation of ICT strategies. This is by the mere fact that such ICT strategies at the bank have led to improved profitability. Lastly, SMS verification codes together with the normal PIN have increased customer retention. Additional capability such as use of card readers codes together with the normal PIN has increased efficiency.
It was recommended that online systems services aligned to the mission of the bank, institutions need to ensure that all emplotyees work in synergy to ensure that the targets are met. The employees should be encouraged to support the implementation of ICT strategies based on the accrued benefits. The banks also need to utilize online systems to provide the best storage for the institutions documents. Banks need to encourage the adoption of ICT in order to guarantee improvement in the liquidity of commercial banks as well as improvement of asset quality of commercial bank.
Further studies need to be done in all the 42 registered banks in the country in order to be able to generalize the findings. There is also a need to do a comparison of technology adoption among private and public banking institutions in the country
Factors Affecting ¬¬Financial Sustainability of Microfinance Institutions in Democratic Republic of Congo: The Case Study of MFIs in the City of Kindu
No full textA Research Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement for the Degree of master’s in business administration (MBA)The purpose of this study was to examine the financial sustainability of microfinances in Democratic Republic of Congo. The study sought to address the following specific objectives; To examine the effects of loan performance in financial sustainability of MFIs in the city of Kindu, Democratic Republic of Congo; To examine the extent that outreach affect the financial sustainability of MFIs in the city of Kindu, Democratic Republic of Congo; To examine the influence of financial structure on sustainability of MFIs in the city of Kindu, Democratic Republic of Congo.
The study employed descriptive research design to study microfinance institutions in Kindu. The population comprised of 3218 customers of MFIs in the city of Kindu at the time of the study. A simple random sampling technique was used to select a sample of three hundred and fifty-five (355) customers from the total population. The researcher used questionnaire as the data collecting instrument targeting customers and top senior management of the institutions. The questionnaire was necessary for collection of primary data, both open-ended and closed ended method were used. Descriptive survey was adopted in this research to collect quantitative and qualitative data for analysis. Data collected from research was analyzed using quantitative analysis techniques. The use of SPSS and excel was necessary to for data presentation and interpretation. The findings were presented using charts and tables, graphs.
Major findings revealed that, on loan performance, approximately 64 % of clients had taken loan from the MFIs, out of which up to 66% of the loan are for duration above 1 year. For the loan taken by clients, 35% have someone else to pay for the debt as guarantor and 31% have assets given as security. On outreach, most respondent, up to 79% are in agri-business and live on poverty level and only 21% use MFIs for consumption loan. Financial structure plays a major role in MFIs sustenance, mainly funded by members accounting for 60% while 40% were funded by individual owners who controls the management, it was found that all the MFIs have bad debts due to loan default. The member-based contribution approach was highly used for pooling together of resource.
The study concluded that financial sustainability of MFIs was highly depend on the loan performance, most of loans taken was used for agri-business which was repaid partly thus affecting the financial health of the MFIs. In outreach, the number of clients and the size of loan taken by those clients was very loan as compared to the potential of the region. Although most MFIs used the member based approached, the fund pulled was very low due to the level of poverty in the region from recent years.
From the study, it is recommended that MFIs should strengthen the loan processing process to avoid possible bad debts by introduction of system such as credit rating for their customer using the system to limit the possible loan amount that can be extended to the customer. The study recommended that microfinance institutions should take advantage of all source of funds including donor financing as this would enhance their financial sustainability. MFIs should work to strengthen internal systems to promote membership growth and enhance the outreach. MFIs should also increase number of borrowers (breadth of outreach) so that they could increase the volume of sell (loan). However, selling high volume of loan alone may not guarantee financial sustainability. The study also recommends enhancement of financial structure by increasing more ways of raising finances such as operating account where members can operate fixed accounts or current accounts as well as diversification of loan portfolio to include special categories such salary employees. Finally, further detailed research is recommended in order to cover a wider region and large number of MFIs in DRC to evaluate the sustainability of MFIs, the study may also evaluate other factors such as government policy, political stability among others
Strategic Responses by the Kenyan Commercial Banks to the External Environmental Turbulence: A Case of Sidian Bank Kenya Limited
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirements for the Degree of Masters in Business Administration (MBA)The general objective of this study was to investigate the strategic responses employed by Sidian bank to external environmental turbulence. The study was guided by specific objectives which sought to determine the external environmental turbulence factors that affect Sidian bank. To establish the strategic responses employed by Sidian bank, and to find out if the strategies employed by Sidian bank in coping with external environmental turbulence are successful.
This research adopted a descriptive research design as it sought to describe the relationship between the independent variable-external environmental turbulence and the dependent variables-the external environmental factors, the responses adopted, and the success of the responses. The target population for this research was 400 employees of Sidian Bank Limited. Using purposive stratified sampling technique 10% of the population was considered to represent the total population resulting into 40 respondents. The primary source of data collection method that was used in this study was questionnaires. The research data was analyzed using the Statistical Package for Social Sciences (SPSS) program. Both descriptive statistics (mean, frequency, standard deviation) and inferential statistics (correlation, regression) were used. The results are presented using tables to give a clear picture of the research findings at a glance.
A review of the individual turbulence factors showed that political discontinuity was mainly as a result of government regulation, process control and political stability. An analysis of the factors of economic disruptions was caused to a great extent by disposable income and interest rates. On the other hand, social cultural changes revealed that the changes were to a little extent caused by changes in consumer taste and attitude. A review of technology substitution was to a great extent caused by speed and technology adoption and innovation. While industry environment was to a great extent affected by aggressive competition and rising substitute.
It was also revealed that majority greed that among the most used strategic response was restructuring although it was also revealed that at the bank, there exist defined controls to mitigate risks. Majority also agreed that they have ventured into new market and used focus strategy. It was also revealed that the firm has improved existing products, diversified product offerings as well as identified strategic issues affecting its operations.
The study also revealed that the firm had an understanding of the environmental turbulence level that it operates in and has enabled them tackle environmental uncertainties proactively. It was also established that Sidian bank undertakes a continuous improvement of its processes and system upgrade has enabled it attain operational excellence.
The study concluded that external environmental turbulence factors have a very big impact on the banking sector. Government regulation, process control and political stability are among the political issues affecting the industry. It was also concluded that the banking sector is very volatile hence there is a need to have a strategy for response as such the findings show that at Sidian bank there exist defined controls to mitigate risks. The bank has also adapted to the environment and is continuously improving its processes and system upgrade to attain operational excellence.
The study recommended that there is a need to also adhere to the government regulation, and have in place mitigations to ensure the firm is not caught up in the political issues affecting the industry. It is also recommended that Sidian bank should affect measures to ensure their ability to mitigate risks; in addition, the strategies should be up to date. There is a dire need for the bank to better analyse its management system and thus achieve prompt organizational responsiveness to changes in the environment.
The study was aimed at establishing the challenges facing Sidian Bank in Kenya and the responses they employ to counter the threats. For further research on strategic responses employed by banks, the researcher recommends another study that will include banks and financial institutions to establish their mode of responding to environmental challenges and threats
Effects of Regular Dividend Policy on a Firm’s Financial Performance: A Case of Serena Group of Hotels in Kenya.
No full textA Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Master in Business Administration (MBA)The purpose of the study wаs to estаblish the effects of regulаr dividend policy on а firm’s finаnciаl performаnce: а cаse study of Serenа Group of hotels in Kenyа. The study wаs guided by the following reseаrch objectives: to determine the effects of regulаr dividend policy on а firm’s shаre price, to determine the effects of regulаr dividend policy on firm’s liquidity аnd to determine the effects of regulаr dividend policy on firm’s leverаge.
The study used descriptive reseаrch. The tаrget populаtion wаs 118 employees of Serenа Group of hotels. Strаtified rаndom sаmpling wаs used to select а sаmple size of 54. Structured questionnаires were аlso used to collect dаtа which wаs аnаlysed using descriptive reseаrch design. Peаrson correlаtion аnd regression аnаlysis wаs used to determine the influence of independent vаriаbles on the dependent vаriаble. Stаtisticаl Pаckаge for Sociаl Sciences (SPSS) softwаre wаs used to аnаlyse dаtа. Dаtа wаs coded аccording to different vаriаbles of the study. Results were presented аnd interpreted using frequencies, mode, meаn percentiles, vаriаnces аnd stаndаrd deviаtions.
The study found thаt respondents strongly аgreed thаt higher eаrnings per shаre аnd dividends per shаre rаtios result to а higher shаre price leаding to better finаnciаl performаnce, increаse in dividend pаyment increаses stock prices leаding to better finаnciаl performаnce, increаse in cаsh dividends leаds to increаse in shаre price resulting to better finаnciаl performаnce of your orgаnizаtion, fаvourаble dividend аnnouncements аttrаcts investors leаding to better finаnciаl performаnce аnd high shаre price leаds to increаse in dividend pаyment resulting to better finаnciаl performаnce increаse in cаsh dividends leаds to increаse in shаre price resulting to better finаnciаl performаnce of your orgаnizаtion.
The study found thаt better finаnciаl performаnce аnd increаse in finаnciаl leverаge leаds to better returns to existing shаreholders resulting to better finаnciаl performаnce in the orgаnizаtion. In аddition, respondents аlso аgreed thаt аgreed thаt use of no debt increаses dividend pаyment resulting to better finаnciаl performаnce аnd increаse in finаnciаl leverаge leаds to better returns to existing shаreholders resulting to better finаnciаl performаnce. However, there wаs а disаgreement on use of relаtively less debt in totаl cаpitаl creаtes room to pаy dividends leаding to better finаnciаl performаnce in the orgаnizаtion аnd leverаge increаses your compаny’s finаnces hence more funds to pаy dividends leаding to better finаnciаl performаnce of your orgаnizаtion.
The study found thаt regulаr dividend policy improves the liquidity of the orgаnizаtion leаding to better finаnciаl performаnce; good cаsh position meаns the compаny cаn distribute cаsh dividends leаding to better finаnciаl performаnce аnd high firm liquidity leаds to better finаnciаl performаnce. However, there wаs а disаgreement on pаying higher dividend in the orgаnizаtion leаds to better finаnciаl performаnce аnd distribution of stock dividends leаds to better finаnciаl performаnce.
The study concluded thаt shаre price is аffected by higher eаrnings per shаre, increаse in cаsh dividends аnd dividend per shаre rаtio. In аddition, increаse in dividend pаyment increаses stock prices, high shаre price leаds to increаse in dividend pаyment fаvourаble dividend аnnouncements аttrаcts investors аnd increаse in finаnciаl performаnce in аn orgаnizаtion, increаse in dividend policy in аn orgаnizаtion is influenced by high debt to equity rаtio, аnd orgаnizаtions cаn use dividend policy to increаse its liquidity. In аddition, the greаter the cаsh flow/funds аn orgаnizаtion hаs the better the аbility to pаy dividend аnd high firm liquidity leаds to better finаnciаl performаnce. However, pаying higher dividend аnd distribution of stock dividend will not influence аnd orgаnizаtions finаnciаl performаnce аnd orgаnizаtion will not be аble to pаy dividend if they hаve led debt in totаl cаpitаl. The study recommended thаt similаr study should be done in other orgаnizаtion to find out if fаctors thаt аre аffecting firms listed аt the Nаirobi securities exchаnge аre similаr to compаnies thаt аre not listed аt the Nаirobi securities exchаnge
Factors Affecting Micro Insurance Penetration in Kenya
No full textA Research Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)The general objective of this study was to determine the factors that affect Microinsurance penetration in Kenya. The study was guided by the following research questions: What factors contribute to low Microinsurance penetration in Kenya? What is the role of Microinsurance? Is there necessity for microinsurance regulatory framework? What strategies are being employed by microinsurance providers to increase penetration?
This study adopted the descriptive research design since it allows use of the study findings as a general reflection of the larger population. The population of the study was the 55 registered insurance companies in Kenya out of which a sample size of 32 insurance companies was drawn. From the population sample 45 respondents comprising senior and mid-level managers in charge Microinsurance or business development were targeted achieving a response rate of 76%. Survey questionnaires were used to collect the data, both qualitative as well as quantitative. The questionnaires were semi structured, with both open and closed ended questions to allow collection of both qualitative and quantitative data. The cross sectional data collected from the questionnaires was edited, coded, processed and analyzed using excel and statistical package for social science computer programs (SPSS). The study also reviewed secondary data mainly from the Association of Kenya Insurers and the Insurance Regulatory Authority to supplement the arguments drawn from the primary data. The findings are presented using tables and charts including the reports of the inferential statistics showing the regression and coefficient correlations analysis to test the association between the factors. A comparison was made with the existing literature in order to establish areas of agreement and disagreements.
The study established that the factors inhibiting the growth of Microinsurance include lack or inadequate research which lead to development of products that do not meet customer needs, uncompetitive pricing and inadequate distribution channels which limit the reach and low levels of publicity. Other causes external to insurance companies include low donor and government support in Microinsurance programs, lack of supportive Microinsurance legal framework, low income levels which relegate insurance to secondary needs, religious or cultural factors that are hostile towards insurance and low public trust of insurance companies.
The study also established that the roles of Microinsurance such as alleviation financial burden on the poor in the event of disasters, protection of the wealth and health of the poor, poverty alleviation and increasing utilization of health facilities. Concerning law and regulations, the study findings showed that the existing legal framework is not conducive for Microinsurance growth and that new policy changes are needed to spur Microinsurance development. In terms of the strategies that are used the study established that unlike conventional insurance, Microinsurance is a mass market product that requires use of aggregators hence the need to enlist partners and strategic institutions like banks and microfinance in the sales strategy. Additional strategies to be deployed include product innovation, usage of efficient service delivery channels and simplification of the documentation, products and processes in order to build trust with the public.
In conclusion, the study identified that a number of factors both internal and external to the insurance companies contribute to low Microinsurance penetration. These include lack of adequate research to develop products that match customer needs, pricing, income levels, distribution channels, publicity and cultural factors. From the findings it was noted that Microinsurance plays vital role in the society and more so to the low income segment. With regards to regulations, it was observed that the current regulatory framework inhibits growth of Microinsurance while on strategies, most of the companies are deploying similar strategies for conventional insurance to Microinsurance hence the slow growth.
The study recommends that insurance companies should develop specific strategies for Microinsurance business outside conventional insurance due to difference in business models, that a new regulations be put in place to address the unique needs of Microinsurance and that the insurance companies, governments and donors should collaborate to deepen the growth and development of Microinsurance in Kenya.
Further studies should be done based on views from outsiders such as customers, insurance agents and brokers to get a wholesome picture on impediments to Microinsurance growth. Related to this is need for further research study on persistency problem where high lapse rate of policies contribute to stagnation
Factors Affecting Implementation of Strategic Plans in the Public Sector: A Case Study of the Ministry Of Lands and Physical Planning In Kenya
No full textA Research Project Report Submitted to the Chandaria School of Business in partial fulfillment of the Degree of Master of Business Administration (MBA)The study reviewed the literature on the factors influencing the implementation of strategic plans in organizations. The first research question looked at the how the company’s organizational structure affects strategic plans implementation. The second research question looked at how the company’s organizational culture affects strategic plans implementation. The third addressed how leadership has affected strategic plans implementation in organizations.
The respondents of the study were senior manager, top managers, heads of departments and heads of sections. This research study adopted a descriptive survey approach on a targets population of 365 management staff in the ministry of lands headquarters in Nairobi. The sample size consisted of 110 management staff in the ministry. This represents 30% of the population which according to Mugenda and Mugenda, (2013) is the ideal sample size. Primary data was gathered directly from respondents and for this study; a semi-structured questionnaire was utilized. Secondary data was also collected for this study. This data was useful for generating additional information for the study from already documented data or available reports especially from the organization’s websites. Quantitative data collected using questionnaires was analyzed by the use of descriptive statistics using SPSS (Statistical Package for Social Sciences) and presented through percentages, means and frequencies. The information also was presented by use of frequency tables and charts.
It was established that a unit increase in alignment of organizational structure with strategic plan implementation, while holding other factors (organizational culture and leadership) constant, will lead to an increase in efficient strategic plan implementation by 0.782 (p = 0.003). Further, unit increase in change of Organizational culture, while holding other factors (organizational structure and leadership) constant, will lead to an increase in efficient strategic plan implementation by 0.463 (p = 0.001). A unit increase in leadership, while holding other factors (organizational structure and organizational culture) constant, will lead to an increase in efficient strategic plan implementation by 0.473 (p =0.005).
The study concludes that leaderships effects strategic plan implementation in Ministry of lands and physical planning in Kenya. The study also concludes that organizational culture has an effect on strategic plan implementation in the Ministry of lands and physical planning in Kenya. The study also concludes that organizational structure influences strategic plan implementation at Ministry of lands and physical planning in Kenya
The study recommends that the ministry administration should enhance relationships between top management and middle management in the context of strategic plans implementation so us to improve top management commitment on successful strategy implementation. The study also recommends that decision making for the Ministry of lands and physical planning in Kenya be based on a perception of itself and the environment so as to detect problems, gather information, and evaluating possible outcomes. The study recommends review of the strategic plans implementation by Ministry of lands and physical planning in Kenya through making a positive contribution commitment, creating awareness or understanding of the strategy, aligning organizational systems and resources and better coordination and sharing of responsibilitie
Mau Mau Reparations, Memorialization and Kenya’s Future
No full textA Thesis Submitted to the School of Humanities and Social Sciences in Partial Fulfillment of the Requirement for the Degree of Master of Arts in International RelationsThe Mau Mau uprising took place between 1952 and 1960 in Kenya. It was a revolt against the British colonial government by the Kenyan local communities. During the uprising, many Africans were tortured and others killed by the colonial government. In 2002, the victims of torture filed a civil case in the United Kingdom. It was opposed by the Foreign Affairs ministry of the United Kingdom on the grounds of lapse of time. The court overruled this objection in 2012 and allowed the case to proceed to full hearing. In June 2013 and before the main hearing of the case could start, the United Kingdom government offered an out of court settlement to the victims of torture to compensate them at the sum of £20 million and the victims agreed to the offer. The United Kingdom in addition to the compensation offered to build a memorial for the Mau Mau war veterans in Nairobi. Being a case that has had numerous developments in the recent past, little has been written on the effectiveness of the compensation in addressing the victims’ concerns. This study takes a deeper look at the effectiveness of the reparations, apology and memorial, in addressing the plight of the victims of torture, for those who died, their families and to the nation as a whole. The study further argues that in order to rectify the wrongs that were done during the colonial period and to mend relations with the victims that suffered the various atrocities, their families and the nation at large, there is need for Britain to continue to support the healing and reconciliation process with the victims in addition to the reparations, apology and memorial
Logic guards against abuse by data firms
No full textA Newspaper article by Scott Bellows, an Assistant Professor in the Chandaria School of Business at USIU-AfricaKenyans are watching with displeasure this week as the significant scandal unfolds in London, Silicon Valley, and Washington,D.C. The scandal brought a sharp drop in Facebook’s share price equating to a Sh360 billion decrease in its market value in only one day. American regulators are pouncing.
Facebook allowed a third party to exploit the personal data of millions of users to build psychographic profiles categorising targeted voters into neurotic introverts, religious extroverts, fair-minded liberals, or fans of the occult. Warnings from Kenya’s Daily Nation to America’s New York Times came forth this week to warn Facebook users on how to better protect their data shared with the social media behemoth.
Meanwhile, British regulators are circling in on the third party British firm Cambridge Analyitca. Cambridge Analyitca was formed in 2013 by rightwing activists and donors. It proclaims to utilise data mining, data brokerage, and data analysis to formulate targeted strategic communication for elections around the world.
Britain’s Channel 4 caught Cambridge Analyitca’s CEO Alexander Nix claiming on an undercover camera that their firm conducted substantial data gathering, analysis, and strategy for US President Donald Trump’s 2016 campaign to swing the election using unethical means
Building teams that are keen to win big
No full textA Newspaper article by Scott Bellows, an Assistant Professor in the Chandaria School of Business at USIU-AfricaWhy do some teams thrive while others flounder? Google famously empowers teams that in turn perform and exceed targets. The firm even allows employees to spend 20 per cent of their time working on their own initiatives and creating their own teams. Over the past ten years, Google is known for its work teams generating innovative new products used by billions of global citizens.
On the other hand, Yahoo for years tried and tried and tried again to attract top human talent, form innovative teams, then tried to achieve renewed success. However, year after year, Yahoo failed to achieve its former glory and marked very few successes. Commensurate with its decline, the company even suffered repeated embarrassing security breaches in its signature web-based email product. Upon the security failures, Yahoo found it even more difficult to get their teams to perform.
Unfortunately for Yahoo, teams consist of individuals. Individuals on teams have psychological needs, perceptions, attitudes, intentions, and behaviours. Employees find it difficult to get excited and solve organisational problems when teams have lackluster histories. Instead of working feverishly to achieve institutional targets, the staff start working on their own selfish goals to protect themselves. They start networking, updating their CVs, and scouring job websites intensely looking to find more stable predictable employment. Workers fear that teams with a history of underperformance might get disbanded or shrink its workforce. Also, employees feel embarrassed to be associated with an underperforming team and instead strive to bolster their personal reputations to counter the team status