Organisational Behavior - Assignment Example

Executive Summary Luxborough Chiltern is one of the largest planning consultancy's serving the architectural industry in the country. Prior to its amalgamation with several other planning consultancies in 2002, Luxborough Chiltern practised equal opportunities and prided itself in being an organisation that understood and respected the needs of working mothers and those with other commitments. This resulted in work-at-home contracts and part-time contracts. The organisation also did not have formal professional development and training programmes, as its previous size probably would have made this an informal arrangement. Motivation, communication and culture where at a high, as employees were recognised for their contribution, and communication within a small organisation was not problematic. However, all this changed after 2002, as Luxborough Chiltern increased in size and acquired more employees and projects. The lack of documentation suggests that no formal change management process was implemented and changes made were reactionary and not enacted with the participation of those undertaking tasks. The effects of the absence of a change management programme led to the gradual attrition of skilled labour for a variety of reasons. Certain policies were discontinued without prior consultation or regard to the employees it may affect. Actions such as these, had the effect of invalidating the organisational motto of "Transparency and Fairness for All" as the emphasis was placed on a certain category of employees. This pattern was followed in the reward system with bonuses which excluded a significant portion of the workforce. No consultation were held with regards to salary review, and as a result highly skilled employees have left the organisation as they believe their contribution and qualifications are not adequately recognised and rewarded. Immense pressure was being placed on meeting targets, and this pressure made it difficult for employees to be flexible and meet other commitments for fear of disappointing their respective teams. The list is endless; however the main underlying theme with the problems facing Luxborough Chiltern is that of a lack of communication between the managerial levels and the operational levels. Too many assumptions and judgements are being made which are having an adverse impact on the quantity and quality of the work produced. This lack of communication has been responsible for the resistance to change in this organisation, which has manifested as poor retention rates. If this is not addressed with urgency, Luxborough Chiltern will face a decline as it loses its value - which is its workforce. The recommendations for this situation have to start at the basic level, which is the 8 step change management model, which will form the basis for other additional programmes to rectify this situation. The onus is on the management of Luxborough Chiltern to acknowledge their contribution to this problem, and to recognise that the solutions lie in listening to and involving their workforce. Introduction Following Luxborough Chiltern's (LC) successful amalgamation of several organisations, the organisation has become one of the largest planning consultancies in the country. LC has grown from being a medium sized employer to being one that employs several hundred people. However, it as been an observation that this growth is having a negative effect on LCs retention rate, which is a cause for concern. If our retention rate continues on this downward spiral, this organisation could face serious threats to its reputation, as it would have lost its most valuable resource and the knowledge and expertise entwined within its employees. The problem with the retention rate has really been highlighted by the situation facing the Scarlett team which is now the smallest team in the organisation, and it is also the team that is experiencing a high rate of resignations. The manager for the Scarlett team is new to the organisation and has different qualifications to the rest of the team. As the manager does not understand or is not aware of his team's qualifications, it has led to several members being cautioned over their performance and quality of work. One full-time employee resigned after the manager's solution to her poor performance was that they become an office-based employee and forego their work-at-home contract. No efforts were made to understand this employee's problems, and it seems perceptions of personal circumstances may have been to blame. This team identifies more with its assistant team manager, who also happens to be a father and can therefore understand the constraints facing some members of the team. The recent introduction of new, higher targets for the teams has been the catalyst in exposing the issues facing the Scarlett team, and others. Employees were frustrated and angry that they had not been consulted prior to these decisions being made, and they only found out during their performance reviews. This has led to a great mistrust of management, which includes their team managers and assistant team managers as they would have been part of the decision making process to implement these targets. The general consensus has been that the targets are too unrealistic to meet and this would force some of them to resign, as they no longer feel they can cope with the pressure. Whilst it may be simpler to deduce that the main issue is that of unrealistic targets, the problems are more complicated and require a total rethink of the way the organisation's strategy. For instance, the organisation's motto of "Transparency and Fairness for All" no longer applies. This report has presented the analysis of LCs retention problem through the sections: individual differences and perceptions, individual learning styles, team working, motivation, organisational structure, communication, organisational culture, organisational conflict, and power and politics Individual Differences and Perceptions LC is currently not taking individual differences and perceptions into account, and this is resulted in discontent and resentment. For instance, the corporate year is still structured around seasons, which has put employees with children at the lower end of the scale, as they cannot participate from any bonus incentives, as they have to take half of the year out for school holidays. Whilst there are provisions for additional leave to be taken at another time, this practice does not contribute to uniform and standard practices. Part-time employees are also feeling the brunt of the lack of attention to this factor, as bonuses for over-performance often require extra hours to be put in, which they cannot do and is the reason why they are on part-time contracts. This together with the cessation of new part-time contracts has meant employees in this predicament cannot perceive themselves as being part of the success of the organisation, and they often get left out of the communications loop. Another issue in this area is the issue of work-at-home contracts which were discontinued after 2002. These contracts relieved pressure on office space and allowed employees with difficulties to work from home, however, by stopping these contracts altogether and by discouraging such contracts, LC is excluding potential employees and driving out those that got established in the organisation on this principle. Individual Learning Styles Learning is significant in this organisation as it has recently undergone a period of change. Learning results in increased competence, understanding, self-esteem and morale (Cole 1998, Mullins 1999). Individuals who enjoy learning are more likely to be flexible in times of constant change and therefore more adaptable to the organisation's environment (Cole 1998). However, in LCs case, individuals do not see the purpose of the monthly newsletter with target outcomes, they are resisting the need to be flexible, and the morale is low. New recruits are the only individuals offered any sort of a training programme, but this is not followed through with continuing professional development. LC does not have a training programme and policy, and the only training available, which is IT training is only available of request. LC keeps demanding quality and quantity for its projects; however, there is no procedure and policy for tracking competence throughout the individual's time at the organisation. IT is a core part of the business, and individuals need to be kept up-to-date on developments, and they also need to be afforded the time to attend these training events. Team Working The size of the teams inhibits cohesiveness as they contain such a diverse range of talent (Bartol and Martin 1998). This generates conflict as some teams will have consistent over-performers, whilst some individuals never seem to reach that mark. Whilst individuals are grouped into teams, the onus is on individual recognition which leaves others feeling confused as to the purpose of the teams if team effort is not encouraged and recognised. The membership of the teams is varied and not necessarily the best fit, which leads to ability imbalances across the board. Individuals are also rotated as and when management see fit, however this practice does not contribute to knowledge sharing, as individuals often receive no feedback on their work, and do not understand their purpose within a team. Motivation Performance in any organisation is determined by ability, motivation and working conditions (Kotter and Schlesinger 1979, Belbin 1981). Ability is characterised by financial rewards and recognition in the way of salaries and wages. After 2002, the high salary jobs were moved to a separate department, which resulted in a ceiling of 25 000, which is not even the market rate for these positions. This policy therefore succeeded in removing one factor that is essential for performance, and a factor that compliments motivation. This has resulted in professionals leaving the organisations, as this level of remuneration does not reflect their ability. The working conditions are not flexible with the discontinuation of work-at-home contracts and negative attitudes towards sick leave. These have greatly affected the levels of individual motivation and have resulted in a brain drain of the organisation. Organisational Structure The current organisational is very tall, hierarchical and has too many managerial layers. This has resulted in a narrow span of control which is no longer appropriate for an organisation of this size. Whilst this can mean the possibility of redundancies, it is possible to increase the spans of control without laying off employees (Mullins 1999). By adopting a flatter structure, LC will make savings on administration overheads, communication will become faster, quicker decision making, responsibility will be easier to delegate and identify, and jobs will become more interesting and varied (Bartol and Martin 1998, Mullins 1999). This is currently not the case, as projects are allocated on the basis of complexity, which makes responsibility delegation an unfair process; knowledge is not shared and communicated to the entire team and the job titles and roles are very confusing when it comes to assessing career progression routes. Communication Communication in this organisation has largely been affected by the organisational structure. There seem to be no formal communication channels for strategic business in this organisation, and the only form of communication seems to be that of an individual and an employee at an appraisal meeting. The communication process is also a one-way process with no participation being solicited from individuals, on decisions that will affect their work. Management have also become unapproachable, which has resulted in the accumulation of problems and issues, as individuals do not have access to proper channels such as grievance procedures, suggestion boxes, to voice their concerns. Management is constantly pushing for individuals to meet their targets, however, no help or advice is given to help with achieving targets, so individuals actually find it difficult to tell where they are going wrong. Special measures for non-compliance with targets are readily implemented without trying to understand situations and circumstances, which gives the perception of the organisation not being interested in its individuals, but its targets. Team members have little contact with each other and no efforts are being made to aid the cohesiveness of the teams. There is little communication between teams as well, which is not good as common problems cannot be discussed and solved, and there is also the danger of duplicating work. Organisational culture There is a lack of a visible culture in this organisation, which results in the lack of a shared meaning and understanding (Cole 1998). The power culture is lacking in any strong leaders and role-models, there is no role culture as the focus of the organisation is on the number of projects completed, there is no task culture which depends on collaboration, and the lack of a personal culture inhibits the common goal of sharing knowledge for personal goals (Cole 1998). There are no set policies on what is to be expected and what individuals should be aiming for, and this driven individuals to become fiercely competitive for promotion and career progression. However, this competition is not beneficial to LC and is in fact eroding the little that is left. Organisational Conflict Conflict within this organisation is resulting in hostility when it comes to promotion, the withholding of information and interference with efforts. This conflict is arising from the sequential interdependence present within each team, limited resources in terms of training, promotion and office space, communication failure with management, individual differences and poorly designed reward systems (Belbin 1981, Hickson and Pugh 1995, Mullins 1999). Team managers and their assistant managers monitor consultant project quantity, turnaround and quality. This is creating conflict as the targets have not been done after full consultation, and there are doubts on whether these individuals should be assessing quality, as they could misinterpret this, and affect their appraisal. Power and Politics It seems that the middle management levels lack the power to make decisions and resolve conflicts, which was highlighted by the example with the Scarlett team, where the conflict was taken directly to the Human Resources directorate. This lack of power may also be fuelling managerial stress which will lead to a vicious circle of poor communication and leadership. Individuals are not empowered to make their own decisions, or to have control over the work, which further worsens morale and motivation. This is especially important in an organisation with professionals, as they perceive that their qualifications should afford them some degree of autonomy and consultation. Recommendations This brief analysis has highlighted the serious problems facing LC and the extent of the damage it will cause. Most of the problems stem from the period post-2002 when the organisation changed in its size and structure. The amalgamation resulted in the adoption of several cultures, perceptions and structure which were not addressed in the appropriate manner at that time. LC should have undergone a well-defined change management at that time, as most of these issues would have been identified and dealt with. The only way to get LC back on the path to success would be to recommend a total overhaul and redesign of the organisation, as these issues have infiltrated every aspect of the organisation. However, the best way to go about implementing these recommendations would be to implement the 8-step model for change management (Bartol and Martin 1998, Mullins 1999), as the real issue is that individuals are failing to cope with the sudden changes. The first step is for LC to recognise the problem facing its organisation, and these problems have been summarised in the main report. By recognising and accepting that these problems exist, and that they are not contributing the development of the organisation, management can focus on each individual problem with a view to devising a solution. The second step is to identify leaders and powerful figures within LC to spearhead the process. This step will enable individuals to recognise and identify responsible individuals who are knowledgeable on the process, and who will be able to respond and discuss any concerns arising. This step will also help to motivate individuals, as some strive to emulate these leaders. The nominated individuals will also serve as impartial members, to increase openness and encourage communication. The third step is to develop and communicate a vision. LC has now lost its vision and therefore there has been nothing to communicate. That aside, during a period of change, communication is vital to the participation and success of the change management programme. This can be achieved by organising one organisational conference on a date that is conducive to most of the workforce, and in a central location, that is external to the organisation. This will help to remove any inhibitions and fears of speaking up. This event will be used by management to explain why the amalgamation had to go ahead, why it was necessary and what the organisation was hoping to achieve. This event should also be used to acknowledge and recognise the current problems faced by its employees. In addition, this event will present as the perfect opportunity to obtain views, suggestions, and comments and to address concerns. This step is best implemented by the leaders identified in the second step. The fourth step is to empower others to act out the vision. This means involving LCs employees in enacting the vision and removing barriers. However, for this to be possible, the third step must be thorough, and the organisational structure and culture must be finalised, as the current form can not continue to exist. The fifth step is to prepare to overcome resistance, which is inevitable. In this case, resistance is manifesting in resignations. The main issues to address in this case, is the reasons for the discontinuation of certain contracts, financial rewards and recognition. It is imperative that employees' views are analysed and discussed to eradicate a high degree of resistance. The sixth step is to plan for and reward visible progress for employees taking part in the restructuring of the organisation. If employees suggest ideas that are implemented, this should be recognised. Likewise, all work efforts should be recognised and not ignored for the sake of targets. This comes down to the fact that individuals are different ad they will therefore have different strengths and weaknesses. This will also include redesigning the teams, so that they are based on specialisms and competencies instead of random objectives. The seventh step is to consolidate improvements and facilitate further change. This involves cultivating a culture of continuous improvement which can only be achieved if employees are given the scope to participate and influence the direction of the organisation. This can be achieved by regular sessions to identify problems and/or opportunities. The final step is to monitor and institutionalise the changes by constantly identifying new behaviours and their connection with LCs strategy until they become a part of the organisational culture. It is essential that is model is followed, as it will create the opportunity and right environment to address other issues. Other recommendations include revisiting the organisational motto of "Transparency and Fairness for All" and decide whether this still fits. If it does then every aspect of the organisation has to support this statement and this will include work-at-home contracts, part-time contracts, over-performance bonus schemes and communication channels. LC should develop a standard policy for learning in the organisation and monitor its progression so as to ensure that all employees are appropriately qualified and competent to carry out their jobs. The teams need to be structured on competencies, so that LC can capitalise on the varying specialist knowledge areas, which will increase the quality of work. Whilst this may end rotation, it will certainly result in motivation and morale as employees will feel they are being allocated work that is appropriate to their expertise and circumstances. The names of the teams should be up for discussion within the business units, with name changes on the cards, as colours for names do not link up with the organisational objectives. Finally, a new organisational culture and structure must be consolidated to place more trust in management. Conclusion Luxborough Chiltern has the potential to be the leader in its industry, and this has been demonstrated by its successful amalgamation, which acknowledges its expertise. However, this amalgamation was not planned appropriately as there was no recognition of the impending changes. To begin with the organisational structure and culture was no longer appropriate for Luxborough Chiltern, as the communication lines became longer which resulted in poor communication and uncertainty in the organisation. The policies were not updated to accommodate extra staff, such training and professional development, and worst of all, the effects of change were not communicated to the original workforce. This led to high attrition rate amongst the workforce, as employees moved to other organisations that could fulfil their professional and working needs. There are also staff that are thinking of leaving Luxborough Chiltern, and one example is that of Qing Qing Lee, a part-time, at home worker. She is concerned that she is being allocated work that is she is not capable of doing given her situation. Despite being qualified and employed with Luxborough Chiltern since 1993, Qing Qing Lee is losing the motivation to work for the organisations as she feels she is no longer competent for the quality of work coming in and the lack of motivation has also been fuelled by the appraiser's failure to understand human behaviour. She also feels that her concerns will not be taken seriously which seriously undermines the concept of individual perceptions, as there is no trust in her superiors. This situation highlights the lack of cohesiveness and the lack of team spirit and participation within this organisation, which is important if there is to be a strong culture. The fact that Qing Qing Lee is still with the organisation, demonstrates her loyalty and commitment to Luxborough Chiltern which should not go unnoticed. The organisation needs to address her concerns by arranging for a session to understand her needs and to analyse the detail of work that is being assigned to her. This should also be applied to other staff, as there is a strong possibility that this situation is not unique to Qing Qing Lee, and she just happened to speak up, whereas others have already lost faith and trust in the organisation and have left. If Luxborough Chiltern is to retain its workforce, it needs to implement a change management programme that will address all the issues raised by employees, and it will enable participation and communication, which will benefit Luxborough Chiltern as a organisation and redefine its culture. References Bartol, K.M. & Martin, D.C. (1998). Management 3rd edition. Boston: Irwin McGraw-Hill. Belbin, R.M. (1981). Management Teams-why they Succeed or Fail Butterworth-Heinemann. Cole, G.A. (1998). Management: Theory and Practice 5th edition. Gosport: Ashford Colour Press. Hickson, D.J. & Pugh, D.S. (1995). Management Worldwide-The Impact of Societal Culture on Organisations around the Globe. Penguin. Kotter, J.P. & Schlesinger, L.A. (March-April 1979). "Choosing Strategies for Change" Harvard Business Review, 106-114. Mullins, L.J. (1999). Management and Organisational Behaviour 5th edition. London: Financial Times - Pitmans Publishing. Read More