Hatton Cross Housing Association - the Management Problems and Issues That Have Arisen from the Merger - Case Study Example

CASE STUDY - REPORT HCHA Summary: The Green Fields Housing Association (GFHA) and Hatton Fields Housing Association merged to form the new housing organisation the Hatton Cross Housing Association (HCHA). In this report we provide the management problems and issues that have arisen from the merger and suggest solutions. Case Scenario: Hatton Cross Housing Association (HCHA) was created following the merger between Green Fields Housing Association (GFHA) and Hatton Fields Housing Association (HFHA). Located in more affluent part of the borough, HFHA was the larger of the two and had adopted a more modern approach to management with structures to support. GFHA, on the other hand, appeared to have a more dictatorial style of management with a downward flow of communication. The newly created housing association would be based in new offices located in the centre of the borough. The management considered centralisation to be beneficial, as it would assist in "building bridges" amongst residents living across the borough using their services. It would also assist staff in the association, to work more closely. Hatton Cross has experienced all the problems associated with management of change - communications being the area most affected. As a result it was feared that communications between them and their client base has also been compromised. Therefore, in an attempt to resolve any issues and improve communications the management have approached our consultancy firm. In this report, we will highlight the following objectives: (a) Assist tenants in their negotiation with their landlords in Hatton Cross (b) Outline strategy to improve communications within Hatton Cross Housing Association BACKGROUND Reid and Hickman (2002) have emphasized the link between organisational development in social housing management systems and tenant participation. The paper shows that social housing organisations are increasingly taking up the role of learning organisations and highlights the importance of tenant participation arrangements in addition to providing opportunities for tenants to influence organisational decision making, Tenants and housing members thus not only change organisational management systems but helps in organisational learning, prompting and brings about organisational adaptation and change. The idea of a learning organisation has made a significant contribution in management consultancy and is not just a part of the management culture but also a part of the social system of housing management in government administrative agenda. The notion of a learning organisation in the context of housing organisation could be emphasised along with the fact that housing organisations are broadly focused on organisational commitment, responsiveness, flexibility and capacity to adapt to external demands and pressures. The role of learning organisation principles could be highlighted within the context of housing management in social housing organisations (see Organisational learning - Argyris, 1978). Learning organisation concepts could be used and social housing practice could be examined on the basis of interaction and communications between social housing organisations and their service users. The management of tenant participation in an operational context and the development of organisational learning and change are discussed as important to housing management consultancy. Social housing organisations are thus examined on the basis of interactional patterns between service users and organisations and the focus is on change of such organisations to make them learning organisations based on principles of change and development. Organisational change and development are thus triggered by principles of organisational learning and from this study and our case in consideration several points could be highlighted that involves: Organisational learning Tenant participation in decision making Organisational change and adaptation Organisational commitment, responsiveness and flexibility Ability to meet external pressures Williams et al (1999) highlights the importance of customer service quality for the public housing sector. The paper emphasises on the focus on external customers as a measurement of service quality and explores the grants for social housing and management of allocated programs. Quality is measured in relation to customer service relationships and the role of consultancy in housing management seems to focus on a partnership between the Housing Corporation, Local Authorities and Registered Social Landlords (Housing Associations) in ensuring quality for funding of social housing. The need for longer time scales for joint planning activity by these organisation and governing bodies has also been suggested. This study by Williams et al shows that there are several additional issues that have to be considered in housing consultancy and this include: The quality of customer service offered to members The grants and funding offered to the housing organisation Government or other organisational support obtained for implementing change Partnership of Housing Corporation, housing organisation and local authorities is important Considering these studies, we would move on to discuss the management perspctives of this case of Hatton Cross Housing Association (HCHA) in particular. Restating Problems -Management Perspectives The Hatton Cross Housing Association is a recent merger of two noted housing associations and there are advantages and disadvantages of this merger as could be seen from the case scenario. The Hatton Fields Housing association of HFHA was the larger of the two and has a very modern and advanced management approach. The management pattern for this association was interactional, networked and based on discussion and participation of members. The management style of the other association GFHA was more traditional and dictatorial with downward flow of instructions, communications and the pattern was based on following regulations rather than involving in participatory management approaches. The differences in the management styles of the two organisations seem to have reflected on the merger as differences have arisen despite the fact that centralisation of housing associations was considered beneficial to the borough. This new housing association has offices in the centre of the borough for quick access by both the previous groups and members of the two organisations. Centralisation brought about by merger of the two housing associations which overlooked Green Fields and Hatton Fields was done with the aim to build bridges among residents living across the borough to use the services of the centralised organisation. Thus following the merger, the residents of Green Fields and residents of Hatton Fields can easily interact as they now have a centralised housing association. The merger seems to have: Simplified the process of housing management Brought together members of two groups across the borough Provided platform for interaction to Green Fields and Hatton Fields members and associations Built bridges to ease management of the entire community by having a centralised housing association that can implement and highlight housing issues and policies for the entire community However Hatton Cross Housing association or the newly formed HCFA seems to have faced problems with the merger and management of change. As a result of the merger the several problems with change management seems to suggest the following: There has been a decrease in communications between the housing association and management There is a decrease in tenant participation and decrease in members available for decision making since the merger has been affected There is also a decrease in interaction between the members of the two groups from Green fields and Hatton fields Apart from issues of communication gap between the two groups, issues of flexibility could be highlighted Owing to the differences in management styles for the two organisations being interactive-participatory or hierarchical and instructional, a compromise management approach to suit both the organisations has been sought (see Burns and Stalker 1961) Tenants have also been increasingly falling apart an having problems with their new or different landlords since the merger Considering these issues an action plan could be given to meet our objectives of 1. Increasing tenant participation and communication with housing authorities (see Campbell, 2002) 2. Improving tenant relationships with landlords and housing association in general The action plan for meeting the aims set out by our consultancy firm is as follows: 1. Use elements of the hierarchical management model and the network /interactional management model to arrive at a compromise management style that can be flexible and participatory and advanced. This includes using management theories of hierarchy and instructional patterns and interactional -participatory patterns (Burns and Stalker 1961) to make the new organisation friendlier, flexible yet focused and disciplined 2. Apart from a compromise management style in between hierarchical authoritative style and participatory style to keep both sides satisfied, an organisational learning management style is suggested that should be based on greater communication between members between the two groups (see Argyris 1978). This can be affected by holding regular meetings and discussion between the previous group members of the Green fields and the Hatton fields association. 3. More tenant participation and communication between tenants of both the groups have been emphasised (Reid and Hickman, 2002; Richardson 1977). This can be done by having interactional meetings, social gatherings, parties or social events and occasion that would bring members of both these groups together. 4. Social gatherings, new year, and holidays gatherings, civil ceremonies, formal meetings and annual or yearly meetings of the association (HCHA) could be emphasised to include members of both the previous associations across the borough 5. All decisions should be taken in the presence of members or representatives selected from both the previous organisations and decisions should reflect flexibility and the need for management change and adaptation. 6. To improve communication with landlords special landlord and tenant associations have been proposed for set up which can bring landlords and tenants together in meetings which could occur on a monthly or quarterly basis. All tenant or landlord grievances, comments, complaints and suggestion could be made at these meetings along with suggestion book or suggestion box for privacy. 7. A monthly community publication or periodical has been suggested that would give news and information of the community to promote a community and fellow feeling across all members of the housing community and help in bringing the members of the two groups together as a unified housing society. The periodical would be funded by the housing association and would be priced minimally to provide accessibility to all families. 8. Transparency of funds of the housing association is important along with accountability of all members of the housing association. Along with this issues of flexible and friendly management style, greater emphasis on tenant and member participation for all meetings and events and appropriate maintenance of the housing construction needs are emphasized. 9. Employing maintenance engineers to check housing construction and maintenance sites regularly and attending to maintenance needs of tenant and members have been emphasised. Maintenance engineers are to appointed by the advice of councils and local authority members and housing association members should also seek suggestions on this from tenants and housing members from across the borough (see Ziersch and Arthurson, 2005; Sobottka et al, 1996). 10. The Hatton Cross Housing Association or HCHA should work in cooperation with local councils, the government, local authorities, housing development authorities and the construction companies and maintenance engineers on the one hand and tenant and housing members and representatives of the association on another to make the management process adaptive and successful. Conclusion: In conclusion, we have given here a plan for management style changes using theoretical perspectives and have also suggested the management approach that would be best suited for Hatton Cross Housing Association. In this context we have emphasized on the need for tenant participation, cooperation with local authorities, maintenance regulations and regular meetings and suggested transparency and flexibility as important aspects of management within the association. References Argyris, Chris. Organizational learning :a theory of action perspective /Chris Argyris, Donald A. Schon. Reading, Mass. ;London :Addison-Wesley,1978. Burns, Tom. The management of innovation /Tom Burns and G. M. Stalker. London :Tavistock Publications,1961. Campbell, Greg. The business of communication :a handbook for strategic communications /written by Greg Campbell. London :National Housing Federation,2002. REID B.;HICKMAN P. Are Housing Organisations becoming Learning Organisations Some Lessons from the Management of Tenant Participation Housing Studies, Volume 17,Number 6, 1 January 2002, pp. 895-918(24) Routledge, part of the Taylor & Francis Group Richardson, Ann. Getting tenants involved :a handbook on systems for tenant participation in housing management /[prepared by Ann Richardson with the assistance of Andrew Wiles]. London :Department of the Environment,1977 Sobottka A.;Thriene B. Sanitation programmes for living spaces and health risks involved Toxicology Letters, Volume 88,Number 1, November 1996, pp. 365-368(4) Elsevier Science TAUSON, R. Management and housing systems for layers - effects on welfare and production Proceedings of the Nutrition Society, Volume 61,Number 3, September 2005, pp. 477-490(14) CABI Publishing Williams C.S.;Saunders M.N.K.;Staughton R.V.W. Understanding service quality in the new public sector An exploration of relationships in the process of funding social housing International Journal of Public Sector Management, Volume 12,Number 4, August 1999, pp. 36-38(3) Emerald Group Publishing Limited Ziersch, Anna;Arthurson, Kathy Social Networks in Public and Community Housing: The Impact on Employment Outcomes Urban Policy and Research, Volume 23,Number 4, Number 4/December 2005, pp. 429-445(17) Routledge, part of the Taylor & Francis Group Housing associations :a personnel handbook /[written by members of NFHA staff under the direction of the Federation's Personnel and Organisation Committee]. London :National Federation of Housing Associations,1981. Read More