Managing Organisational Behaviour - Essay Example

Managing Organisational Behaviour 1 Part 1: Ransome Orwell 1.1 Introduction Managing any type of organisational behaviour becomes difficult when there are no real ideas of what an organisation should do. In the 1800s life was difficult for some people because of how jobs were situated and created. In looking at the factories it is important to note that during this time there were no standards in the factories to follow and many children were employed to work long hours in these places. This was the time of the Industrial Revolution and many factories were challenged to keep up with the demand of the buying public. By 1832, a bill was passed that would stop the long hours for children because it was thought that long hours were also detrimental to a child’s health. As an example, long hours of standing were seen to cause deformities in children (Spartacus Education, n.d.). Against this backdrop many factories began to flourish and Ransome’s Orwell Works was one of them. This was an agricultural machinery factory that produced products from 1841 to 1966 which gave them a rich history of manufacturing and growth. 1.2 Recruitment and Selection/Catchment Area In the beginning of Ransome Orwell several family members came together to work and finance the foundry and many of their workers were family friends or came from the nearby community. They always relied on people they knew to help them in their business rather than looking to strangers to help them. One thing to note is that the Ransomes were Quakers and had a large community to choose from. Because they were Quakers, they followed this way of life. This created a positive ability to recruit and select other people who were friends. Many of the people who worked for them stayed their entire lives. It could be assumed that Ransomes had a better opportunity for recruitment because they knew and understood the people they were working around. One reason this could be surmised is because the Ipswich Transportation Museum states that many of their workers stayed with them from the time they entered the business to the time the individual died. 1.3 Management Style The management style at Ransome Orwell would be very close to what the Quakers experience today. They would have a very religious idea of management and would consult each other before making decisions. Everything that is done during a business meeting begins with worship and continues as worship. People are very orderly and stand before they speak (Latham). Therefore, Ransome Orwell would have used prayer and worship as their way of making decisions in business and their management style would have reflected this attitude. They would have chosen workers who understood this way of management so they would not have to train someone in this management style. 1.4 Working Conditions During the 19th Century Britain became the “first industrial society and the first urban society” (Lambert). In general, working conditions in the 1800s were very different than they are today. The challenge was that during this time the Industrial Revolution began and steam powered machines were employed to do much of the work. This meant that factories had to be built to manufacture many things. This was also a time when immigrants were pouring into the country. It can also be assumed that factories were dirty and not very healthy because the cities were dirty and overcrowded. There was no sanitation during this time so the cities were also unsanitary and unhealthy for the people living in them (Tonge). The majority of people were working class and some of the upper class had female servants. Because Ransome Orwell was a business built by and run by Quakers, their working conditions would have been the best possible. The reason for this is because Quakers believe that they must do God’s will. They believe that they should have specific attitudes towards business. As an example, Quakers believe that the community is very important and they make sure that they take care of their community (Grace). They would have listened carefully to their employees and done the best to make sure they were happy and that their families were well taken care of in the process. They valued their products and they made sure that everything they did had a spiritual component. At Ransome Orwell, it seems that people had a large amount of job satisfaction because they never looked for other jobs. According to the direct research for Ransome Orwell, there were no skills needed because people were already doing some of the labour types of things on their farms and such. Of course, this is more speculation because they hired their friends and family to do the work. 1.5 Wages and Hours/Sick Pay In most situations, workers were paid a very small wage for what they did in the factories. They worked very long hours because there were no laws or labour unions that created specific hours of work. In most cases workers worked until the work was completed for the day. Generally speaking, the owner of the factory decided how much work was to be done each day (Lambert). People also lived in impoverished and overcrowded cities until the end of the 19th Century when their living conditions were better because of inventions and the availability of new goods. According to the Teachers Curriculum Institute men were paid 10 to 15 shillings per week and women were paid five shillings a week; children were only paid one shilling per week. Children had more of a problem in the factories because they were frail and were not as sturdy as adults. Many children could not be watched over by their families which crated problems for the children when being disciplined by the heads of the factories. Also, children were more apt to become sick because of the dust and the problems in the factory air. Nardinelli states that British income during the 1800s started at about $400 in 1760, went to about $500 in 1860 and rose to $800 in 1860 (cost in U.S. dollars from 1970). If the Quakers were able to pay this type of wage, they would have done so. There are no real equations for what the wages were during this time specifically for Ransome Orwell. There does not seem to be any idea of sick pay during this time because there were no laws to enforce this concept and there were no trade unions during the time. 1.6 Skills/Training At most people would have had to understand how to build the parts needed for the various agricultural products that Ransome Orwell produced. Many people probably had this information because they lived on the farms and had to tinker with their own type so machines. 1.7 Living Conditions/Life Expectancy At the beginning of the 1800s living conditions were very poor. It was the time of the Industrial Revolution and Queen Victoria came to reign during the first Industrial Revolution. The cities and towns were expanding quickly which brought with the expansion many infectious diseases and premature death (Evans). Many of the people who came to Britain during this time were “the most deprived” and had “deprived habits” which mean that the British had to do something about this (Evans). In the most deprived areas, most children did not live to be older than five years old. By the 1830s the life expectancy was in the high 30s and by 1901 people were living to be at least 48 years old. 2. Part 2: Kraft Foods Europe 2.1 Introduction Kraft foods is a confectionary business that makes a variety of snack foods by various names. Cadbury, Milka and Marabou chocolates are only part of the products they make. They make a variety of products in various categories that include: “biscuits, cheese and grocery, chocolate, coffee as well as gum and candy” (Kraft Foods). Currently, Kraft employees 24,000 employees in their Europe plant. They provide new products through their employees who develop products by talking to consumers and listening to what they say about their wants and needs in this area. They are also a “green” company because they are concerned about the planet. This means that they find creative ways to cut down on waste, they recycle and they reuse their existing resources. They take part in activities in their local areas to help people in need. 2.2 Recruitment and Selection/Catchment Area Kraft does not give specific ideas as to what their recruitment and selection entails but their catchment area is global. In this report, the concentration is on Europe and how they recruit and select across Europe. Their website explores the basic areas that they work and show that they need people to develop products as well as sell them and distribute them to their various sales outlets. With their acquisition of Cadbury, Kraft was able to grow their UK presence from 1,500 employees to 7,000 (Kraft Foods, “Update”). Kraft employs people from within the country where they are working. As an example, the people from Cadbury are from Ireland for the most part because that is where they have Cadbury. The people in France are recruited from French nationals. They do this because nationals are less expensive to hire than expatriates (Segalla 18). The country where they reside also has authority as to whom they hire when it is lower management and general staff. For upper management, Kraft Western Europe and/or Kraft International Commercial must be consulted, depending on the level of Senior manager (Segalla 18). 2.3 Management Style Kraft Foods reorganized so that they could manage as though they were one company. The Senior management pulled together everyone in sales and created a stronger team approach that would make the sales team responsible for the full portfolio within any given market (Busetti 1). Each section of their business has a team of experts who manage the area. As an example, the management team is responsible for day to day operations. This particular group has expensive experience around food and management. (Kraft Foods, “About Us”). 2.4 Working Conditions Much of the information on working conditions for Kraft Foods has to do with the cocoa growers and how they are used to create the best chocolate. They state that they support their cocoa growers holistically to help farmers become as sustainable as possible. They have also worked with government agencies and small grant funders to make sure that he farmers they work with to meet other needs they may have that include economic needs, housing and so forth (Kraft Foods “Our Commitment”). For the rest of their employees, they subscribe to a safe working environment. Inside their company, they provide training in safety for all employees, they provide information on first aid and keep first aid equipment available, they investigate all accidents thoroughly and they ask for employee input on all issues around safety (Kraft Foods, “Corporate”). 2.5 Wages and Hours Wages for employees in Kraft Foods is dependent on the level that they are hired within. Salaries range from $30,748 to $50,000 USD for Territorial Sales Representatives and $44,272 to $105,019 USD for Packaging Engineers (Payscale). A Senior Technologist II can earn £38k to £41k (“Kraft Foods Salaries”). In addition, full-time employees received a healthy amount of benefits, some of which include: Medical and dental insurance, health care flexible spending accounts, dependent care flexible spending accounts, educational assistance, group insurance for auto and home and long-term care insurance (Doyle 1). The hours were not mentioned. At one of the job forums, they stated that people could work 60 hours or more, but it was not certain whether this was just one ex-employee complaining or the truth. They also said that bonus started at one percent but did not say how someone would receive a bonus. 2.6 Skills/Training Like with any other company, the skills and training that are needed will be dependent on the job that the individual is doing. They suggest that people need to be innovative thinkers because they are looking for people who can create new products, find great ways to get them on the shelves and people who can find ways to reduce their impact on the environment (Kraft Foods, “Join Us”). Their website shows a variety of jobs that they are currently recruiting for and each has a different level of skill or training needed. As an example, in Customer Service, they are looking for people who are cheerful, who understands how to talk to people well. For each job they have listed, they have “A Sneak Peak” to give people an idea of what they will be doing in each job. 2.7 Living Conditions/Life Expectancy Obviously the living conditions and life expectancy in Europe today are much better than they were in the 1800s. The quality of life is dependent on issues such as education and training opportunities, access to healthcare, transport facilities and more. According to Eures Iceland, this is one aspect that is very important and the European Union has watched these areas so the can help to improve them. Many people have access to healthcare which allows them to have a better life expectancy, and although many are unemployed, the European Union is attempting to create jobs for more people (Eures Iceland). 3 Part III: Compare and Contrast the Sources of Rewards for Workers When looking at both the intrinsic and extrinsic rewards, they seem to be similar in both centuries. Intrinsic rewards are identified as those things that motivate an individual to do the work. Many of the intrinsic rewards that people suggest when they are doing their work include things like healthcare, vacation time, and educational reimbursement. These things are areas that help motivate employees to stay employed. These things were apparent with Kraft Foods but they would not have been as important in the 1800s. The workers for Ransome would probably have seen things like having picnics, getting time off if sick and being treated well as incentives to continue working for this company. Babak Armanjani, the Chair for the Public Strategies Group, suggests that managers must first find out what their employees need and then see whether they can provide that need. This is one way to understand intrinsic motivations. In the case of Kraft Foods, they have found many things that their employees need and they have provided this information. In the 1800s, this may not have been true, but for those who worked for Ransome, the intrinsic motivation was there because they stayed for so long as customers. Ransome would have known what their employees wanted because of the way that Quakers do business. Extrinsic rewards usually are money, vacations and other things that are outside the organisation. As an example, some people are motivated by money while others are motivated by praise. For those in the 1800s praise probably went a long way to help someone feel that the company was respecting their contribution. Today, money in the way of raises and bonuses help some people understand their contribution to a company. In both centuries, people always want to know that they are needed and that they are being heard. Quakers are used to talking to their employees as well as the managers about what needs to be done in the company. This is a team approach. Kraft Foods also adopted a team approach and they say that their employees have input into the foods they make, how to get it to the shelves and so forth. Works Cited Armajani, Babak. “The Power of Intrinsic Rewards: The Strongest Motivators Come from Inside a Person”. Governing Magazine. 25 March 2009. Web. 12 August 2011. Busetti, Marc. “Kraft Foods: Now One Big Happy Family.” BNET. Feb. 1995. 12 August 2011. Doyle, Alice. “Kraft Foods Jobs - Kraft Foods Employment Information”. About.com Job Searching. 2011. 12 August 2011. Evans, Eric. “Overview: Victorian Britain, 1837 – 1901”. BBC History. 29 March 2011. Web. 11 August 2011. “Eures Iceland.” “Summary of Living Conditions in Europe.” Web. 2011. 12 August 2011. Grace, Eden. “An Introduction to Quaker Business Practice.” Subcommittee meeting of the Special Commission on Orthodox Participation in the World Council of Churches Damascus, Syria. Web. March 2000. 11 August 2011. Ipswich Transport Museum. “Ransomes, Sims & Jefferies and Ransomes & Rapier”. August 2011. Web. 8 August 2011. Kraft Foods. “About Us: Who We Are.” Web. n.d. 11 August 2011. Kraft Foods. “Join Us.” Web. n.d. 11 August 2011. Kraft Foods. “Our Commitment: Working Together Towards Progress.” Web. n.d. 11 August 2011. Kraft Foods. “Kraft Foods Corporate Responsibility Guidelines”. Web. n.d. 11 August 2011. “Kraft Foods Salaries in United Kingdom”. Glassdoor.com. 2011 Web. 12 August 2011. Kraft Foods. “Update On Progress Made Since Kraft Foods Acquired Cadbury.” Web. 31 January 2011. 11 August 2011. Lambert, Tim. “Life in the 19th Century.” Local Histories.com. Web. 9 August 2011. Latham, Joe. “Quaker Business Meetings: How Friends Make Decisions.” Web. August 2002. 11 August 2011. Nardinelli, C. “Industrial Revolution and the Standard of Living.” The Concise Encyclopaedia of Economics. 2nd Edition. Web. 11 August 2011. Payscale. “Salary for Kraft Foods, Inc. Employees.” 2011. Web. 12 August 2011. Segalla, Michael. “Kraft Foods Inc. in France”. Needocs.com. Web. 2004. 12 August 2011. Spartacus Education. (n.d.). “Factory labour and physical deformities”. n.d. Web. 8 August 2011. Teacher Curriculum Institute. “Working Conditions and Wages” [Industrial Revolution]. Web. n.d. 10 August 2011. Tonge, Stephen. “Reform in Britain 1870-1914”. The Peel Web. 6 January 2011. Web. 9 August 2011. Read More