The World Trade Organization (WTO) is an intergovernmental origination that was built in the late 90s to regulate the international trade. WTO is structured in hierarchal order that influence the psychological constrain, behavior and motivation with reference to Industrial Organization classical theory. Ministerial Conference (MC) is the top structure in the organization and contains representatives from all member countries. Below MC is the General Council (GC) that acts as Trade policy review Body. WTO has two councils; Council for trade- related aspects of intellectual property and council for trade in services. Besides, there are three committees; Committee on Budget, Financial and Administration (CF A), Committee on Balance of Payment Restriction (CBOPR), and Committee on Trade and Development. These committees execute the functions by GC. Administration of WTO is directed by office of the Secretariat that is led by Director General (DC) which is selected by the MC for four-year tenure. DG is deputized by Deputy Director from various member countries (Blutstein, 2017). The offices of are located in Geneva, Switzerland. These are covered under the I-O psychology theories that give a classical model that perceive a behavior as a function to constrain opportunities, motivations and ability
The WTO is among the most significant trading platform that governs the trading sector in the world by providing services and intellectual property between participating parties based on the trading agreements and regulations. WTO also deals with dispute management in agreements by enforcing participant's devotion to the WTO agreements which were signed by the participating members. The organization is among the top notch organizations of trade regulation and monitory in the world that is built on agreements and confidentiality, therefore the structure design and development concepts should be the best according to organization policies. Similarly, WTO ensures reduction in the barriers to trade such as tariffs, remove biased treatment in the international trade relations. Two therefore act as a forum cooperation to increase trade liberation.
The Psychology of Design Systems in the Organization
The WTO was formed by the trade regulatory agency and therefore the main concepts that led to the growth and establishment of this organization revolves around trade. There are internal and external driving forces that contributed to the establishment of the organization. Among the driving forces that drove to the establishment are;
External Factors
The world trade organization was formed because the trade world needed a body that is independent and authoritative body that can enforce and observe all the trade agreements of parties are transacted in order. The cold war adversaries are among the members that foresaw the incorporation of relationships of members of WTO by bringing together countries that were in constant shifts of positions on trade. However, most of the factors that led to the growth of the WTO is the Uruguay round that was responsible for the implementation of 123 countries as "contracting parties" that aimed in expanding the trade rules in supposed difficult sectors to liberate such as agriculture and textile. Also positive and negative environmental factors that affected the agriculture sector are among the external factors that structured the growth of the trade organization in Canada. The economic activities that were affected by the war at time also facilitated on the development of the world trade organization since there was need to establish a safe marketing ground and dispute settlement.
Internal Factors
Trading policies and participation is among the internal factors that attributed to the development of WTO where they were to prevent distortion between domestic and international prices. Also the need of the members of the WTO to have a platform that could allow efficiency in trading rights in export markets and prevent export cancellation is an internal factor. (Burnes& Cooke 2012).Identifying and Clarifying the Organization Need
An organization need is the collection of organization data and identifying a problem and attempting to find solutions therefore organization needs need to be identified and clarified. Reviewing the record of the previous deals and the circumstances of the agreements that the WTO over saw makes them build a profile of current skill thus building the members confidence in them. Also by taking into account the external factors that affect directly or indirectly the organization enables the organization to diversify their customer services. Despite WTO being the largest trade regulatory agency in the world they also do benchmarking from other firms to counter competition and evaluate their skills and identify competition gaps. Also, consultation of the employees who deal mostly with the customers directly help to boost customer service is an organizational need.
WTOs Process Design
Design and control of an organization determines its work environment. A better working environment prevents fatigue caused by shift-working and will also consider stress relief. According to Burnes and Cooke (2012), increased interactions among customers and the external world makes them to understand the best product for them. The workplace safety also impacts on the productivity of the organization. From time to time trading environments can be hostile and since WTO deals with the regulation of trade and resolution of conflict in trading agreements, therefore in the field the customer can be exposed to violence and hostility. Therefore WTO has a program that covers the risk management factors like providing the necessary security for their customers and also allowing them to choose places they feel safe to purchase item from. As noted by Cameron and Green (2015) occupational psychologists point out that the mind is prone to react to a threat, and, therefore, when one works in an environment perceived to be unsafe, productivity is compromised.
Most organization assumes bureaucracy as the most convenient structure of management. Therefore, WTO uses bureaucracy to facilitate the standardization of the inputs and outputs in resources and project manning. As stated by Weber a philosopher that the organizations functionality is based on the rational and hierarchical principles. Trade is therefore facilitated by the downside environment created by the one way form of governing. The system is thus structured that the customer answers to their seller through head of department, managers, and CEOs respectively. The effective management in the WTO is, as a result, to change in projects and also to increase customer confidentiality. The change of the Uruguay round to the current Doha round programme has allowed the employees morale to be hyped as they have become preoccupied with the move and its implications. Therefore the psychological consequence suggests that change in the ambiguity of their work environment have gone a notch higher thus making them have to change their working behaviors to adapt to the new system (Burnes& Cooke 2012). Occupation psychologists explain that the change such as this implicate the customers and plays a significant role in success. The best management of adjustments is determined more by human factors rather than fiscal problems. Therefore it is essential to provide education, managing adjustments in workshops job improvement and anxiety management for the customers to adapt to the new system.
Intervention in the WTO
Interventions are the main learning processes in the active stage of an organization and are structured to improve the social and task performance of the employees or individual customers. The WTO major target is social justice therefore with them pursuing to redesign or annul the WTO agreements. There are three psychological interventions that WTO applies; creating awareness, sticking to their plans and training to remove the inputs that are bias. Lack of awareness is a potential pitfall that alters the habits and the trading system, awareness can be created by avoiding vague information and getting unbiased facts to the members and customers. This help in prevention of worries that may be created arise due to vague information. Sticking to the plans helps in dealing with the worries mind and making a proper decision (Dhar, 2016). The continuous alteration of a plan may make the organization to use a different indicator. Sometimes perception may lie when the input is negative, this may make the people to be affected by their own phycology. This therefore calls for evading the opinions of others that may lead to negative input while sticking to the positive perspective.
Culture and Climate in an Organization Structure
Culture is the beliefs norms and the ideologies of the group of people. Therefore culture affects the way an organization works and the relation between a trader and the organization. Culture gives customers a sense of belonging and also influence the way they behave with each other. Culture affects the individual working with the organization in that the employee's attitude, mentalities, interests, and perception are driven by the way the culture of the workplace is structured. The intervention was mostly affected by culture since the opinions of people varied and the traditions in different locations were compromised. Gender equality is affected by culture and every organization strives to meet the gender rule therefore the invention was slightly influenced by gender since women were also to be enrolled in the new regimes (Furnham, 2012).
The climate of an organization is the subject of change in an organization, and it gets frequently molded by the upper management of an organization. Climate is, therefore, the mood in an organization and climate determines the way the organization functions. Therefore the GMO intervention was directly affected by the cultural diversity of countries that are members of the WTO.
Rational Choice Theory
Economy psychology is the way one perceives the way decision making processes of the individual and operations of an organization about financial issues. People are always making optimal choices that provide them with the most excellent benefits and satisfaction therefore in the world of trading and organization sector the structure of governance solely determines the decision. According to Simpson and Paternoster (2017)the rational choice theory states that "when people get presented with various options under the conditions of scarcity, they would choose the option that maximizes their satisfaction." The Rationale Choice theory suggests that humans given their fondness and limitations are able to make sound decisions by determining the advantages and limitations of each option. The organization, therefore, is affected by the same psychological phenomena that it relies on considering the better choice in the market. WTO uses the rational choice theory to assess the conditions of the treaties and also to resolve trade conflicts between the participating members (Burnes& Cooke 2012).
Organizational needs are the most fundamental aspects of business analysis. The organization is defined by the way it handles the customer and how inclined they are to fulfill their objectives. The WTO is among the world's largest trading sector that regulators trade, therefore, they have very esteemed services. WTO can manage the terms of an agreement between large countries such as China and the United States thus maintaining a high profile during these transactions are required since failure can result in catastrophic results like war. Also, WTO has to weigh on the problem when resolving a conflict in interested p...
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