Gateway Engineering - People Management Problems - Assignment Example

A management report of Gateway Engineering Limited Management Report about the significant "People Management" problems. The functions of a manager include careful planning, designing an efficient organization structure, selecting people or staff who are competent enough to achieve the plans, and controlling their activities in order to measure and rectify deviations. Every organization differs from the other in its goals and objectives. Further, every organization comprises of individuals who have different needs and objectives. Through the function of leading, managers can help the members of the organization to utilize their potential to simultaneously fulfill their needs as well as contribute to the goals of the organization. To do so, managers are required to understand the role of each organizational member in the organization, their individual characteristics and personality differences. As part of their efforts to understand the behavior of people, managers must keep certain important aspects under consideration. Some such aspects that are to be kept in mind before trying to understand about the members of the organization are individual differences, the importance of personal dignity, multiplicity of roles and considering the person as a whole. Let us now look at these aspects at a slightly broader perspective. Individual Differences - Though several common traits can be noticed among human beings, each person is individually different from the other. Most people feel excited when they achieve something and are grieved by the loss of a loved one. However, within these broad similarities, each person differs from other in a million ways. Individual differences originate from differences in their psychology. Psychological differences and experiences in the past make each per respond differently to different situations. Thus, there is no average person. However in most enterprises, the assumptions that people are alike forms the basis on which rules and regulations, procedures, job descriptions, safety standards, job schedules and the like are developed. [1] (ICMR, 2003) It is the responsibility of the managers to understand the complexity and individuality of people before applying the principles of motivation, leadership, and communication. Though it is difficult to satisfy all the needs of an employee, managers should have considerable latitude to make individual arrangements to ensure that jobs are so assigned that they suit a particular person in a specific situation. To highlight the indifference certain managers can have, the manager of the Marketing Department would serve the classical purpose with a kind of 'know all' attitude when it comes to recruiting people. This can be clearly identified from the case study. Another issue to be highlighted with respect to the same department is that, it is contributing the maximum amount of attrition rate to the organization on a whole and specifically astonishingly high contribution to female employee attrition. As Dr. Suresh Arckatty in his famous book 'I CAN' says - "People join the company and leave the boss," does this point to work style issues with the marketing manager Female attrition, as mentioned above, is astonishingly high. This is clearly evident if the following figures are noticed. The data tables mentioned in the case study clearly depict that, female attrition is almost 21.42% in the marketing department which in turn is contributing to 18.64% of female attrition across the organization. Surprisingly, the female attrition of 18.64% clearly is an indicator of an organizational culture and behavior issue. [3] (ICMR, 2003) Going ahead, let us try and understand what these culture and behavior in an organization mean. In recent years, research has proved that culture has a tremendous impact on management practices. Some researchers examined the impact of the internal culture i.e., the corporate culture of the organizations, while others examined the impact of external culture i.e., the social culture on management practices. The organization's culture and climate will definitely have an impact on its efficiency and effectiveness and, therefore, analyzing them is also an important part of gaining a full understanding of the organization. With respect to our case, this is clearly evident. Meaning of Culture - Anthropologists, psychologists, sociologists, and historians define culture in various ways. According to Linda Smircich, organizational culture is a system of shared values, assumptions, beliefs, and norms that unite the members of an organization. According to Ralph Linton, culture refers to the set of values that help members understand what the organization stands for, how it does things, and what it considers important. It is clearly revealed from the above few definitions that culture is a set of values, beliefs, norms attitudes, and habits, which governs the behavior of a group of people. The organization's culture is made up of the deeply held beliefs about the way the organization should operate. It is the organization's value system and will influence the way in which work is carried out and how employees behave. People who may be very able and efficient in their own right, but who nevertheless do not fit into the culture, for example because of the way they dress, will be unlikely to achieve long-term success in the organization. The next issue that can be clearly noticed from the case is that Ethnic minority is not being attracted to the organization. This issue needs to be highlighted because, as an organization it is the corporate social responsibility to hire people without bias. Out of the total 1369 employees of Gateway Engineering Limited, only 23 are from Ethnic Minority. This fact strongly states that the organization is biased. With relevance to the above mentioned issue, there is a need to discuss about the Social Responsibilities of Business and Significance of Corporate Culture. Social Responsibility - "Social Responsibility contends that management is responsible to the organization itself and to all the interest groups with which it interacts. Other interest groups such as workers, customers, creditors, suppliers, government and society in general are placed essentially equal with shareholders." According to the above definitions, it is all the more obvious and necessary that managers should pay attention to the welfare of workers, consumers' needs and their safety, the interests and rights of creditors, government regulations and the obligations of the organization towards society as a whole. In our case, there are a lot of issues related to the above mentioned aspects. Some of them are attitude problem of the marketing manager and ethnic minority not being attracted towards the organization. The latter would definitely have a profound impact on the organization on a whole. Significance of Corporate Culture - Modern organizations have been trying to create a corporate culture with a distinct identity by molding the behavior of their members. Many think that only giant multinational organizations can afford to have a corporate culture, but this is not the case. A company's culture provides guidelines for its policies and practices. The dynamics of an organization can be understood better by studying the culture that prevails in the organization. Corporate culture acts as a basis on which companies establish rules that specify how people should behave in the organization. According to Moskowitz, the work environment in well managed companies has the following characteristics: It makes people feel they are part of a team It encourages open communication It stresses quality It lays emphasis on profit sharing It blurs distinction in ranks Organizations with such characteristics perform well and keep their employees happy. In our case, it is seen that there is a huge amount of employee attrition. In general, the main reason for attrition is employee dissatisfaction which may arise from various grounds. [2](ICMR, 2004) Characteristics of Organizational Culture The six common characteristics of corporate culture are as follows: 1) It is distinctive: Organizations are like fingerprints, which means they are unique. Each has its own management philosophy, style of communication, mission and objectives, policies and procedures. All these variables, in their totality, constitute its distinctive culture. 2) It is based on certain norms: Norms are the general standards of behavior. They provide guidelines on how much work should be done, the code of behavior to be followed etc. 3) It promotes dominant and stable values: Organizations expect all participants to share some major values, such as production of high quality products, low absenteeism, and high efficiency. The values of an organization are stable in nature and usually change very slowly over time. 4) It leads to common behavioral aspects: When members of an organization interact with one another, they use a common language, and use the same jargon and rituals. 5) It shapes philosophy and rules: An organization's culture shapes the philosophy that expresses its beliefs regarding the treatment of employees and/or customers. Culture also provides strict guidelines regarding how to get along with others in the organization. 6) Its strength varies: Organizational cultures may vary in their strength. Culture can be characterized as relatively "strong" or "weak" depending on the degree of impact of organization culture on employee behavior and depending on how widely this impact is visible in the organization. If necessary steps are taken in order to correct the above discussed issues, the maximum amount of problems in the company would definitely get resolved. [1](ICMR, 2003) References: 1. Introduction to Human Resource Management, published by ICFAI center for Management Research, 2004, Reference no.: IHRM 032K3 09. 2. Introduction to Management, published by ICFAI center for Management Research, 2003, Reference no.: IM 11 2K3 08. 3. Introduction to Organizational Behavior, published by ICFAI center for Management Research, 2003, Reference no.: IOB 11 2K3 04. 2. Proposal of changes Keeping in mind the various issues that were discussed in the previous pages, it is recommended that - a) the organization trains and develops its existing staff rather than recruiting new staff. Also the management of the organization is recommended that - b) it manages and rewards the performance of their staff. Another major attempt that could help the organization is 'Attrition Management.' Now let us go ahead and see how these changes can be brought in the organization and what benefits would the organization get by bringing in the recommended changes. Before trying to bring in the changes let us take a look at some important points which are to be taken care prior to making changes in the organization. Especially, in a dynamic organization like Gateway Engineering Limited where teams are formed on the basis of individual projects and dissolved akin to a consulting firm, is there enough identification and bonding with the organization When an employee joins an organization, he has to adapt to the new environment - a new work culture, different work activities, a new boss, a different group of co-workers and a different set of procedures and systems. This process of adaption is commonly termed orientation or induction. When orientation is taken up as a continuous process in the organization, for all employees, it is termed socialization. The process of socialization is mot limited to new employees entering the organization; it is also important for employees moving within the organization as a result of lateral transfers and promotions. However, it is the entry of a new employee into the organization, which demands greater attention, time and resources. The objectives of an induction/orientation program are: To make the individual feel welcome in the organization. It is the responsibility of the HR department to reinforce the excitement of a new addition to the corporate family. At the same time, the colleagues and the supervisor of the employee should exhibit enthusiasm in welcoming the new employee to the work group. To create a positive perception of the employer. The supervisor should personally be involved in the induction program of the new employee. He should welcome the employee on his first day at work and accompany him to lunch. He should remove the apprehensions of the employee and build a rapport with him by the end of the day. To reinforce the employee's confidence. The employee should finish the first day in his new job, with a feeling of satisfaction and happiness. He should feel that he has made the right choice by deciding to join the company. To reduce the time taken by the employee to adapt to the organization and the new job. If the employee is made to feel comfortable in his new environment and simple assistance in terms of signing up for benefits etc., is provided, it would speed up his induction. The whole day should not be spent in filling up forms etc. Things, which are not very urgent, can be spread over the next few days, with a little bit each day. To put the new employee at ease and make him feels at home. The experience of induction should make the new employee fell comfortable with the workplace and the job. It should also enable him to build a rapport with his colleagues. To benefit the organization. The earlier a new employee adapts to the job and the organization, the earlier he would start contributing to the organization. If a lot of time is spent in learning organizational basics and job rudiments, it would take a long time for the new employee to become productive. Hence, induction programs for new employees are considered as critical to success by organizations. This aspect of induction is strongly recommended for Gateway Engineering Limited as it is necessary for bonding rather than for forming of teams alone. The next issue that is to be given importance is that, does the organization has a formal exit process, where exit interview are conducted to identify the root cause of attrition. Along with the exit interview, an analysis of the typical employee longevity/association with the organization needs to be undertaken. Let us now have a look at how these exit interview and analysis would help the organization. An exit interview is a process of the company's HR department representative meets the outgoing employee. The purpose of such interviews is to obtain data or information regarding the aspects that are responsible for the employee to leave and in turn improve the working conditions in the organization which would obviously help in employee retention thereby decreasing attrition. Usually, exit interview are either asked verbally or carried out by way of a questionnaire. With the advent of Information Technology and Computers, these days exit interview have been transformed into electronic mode even. Given below are some sample questions that are asked in an exit interview. What is your primary reason for leaving Did anything trigger your decision to leave What was most satisfying about your job What was least satisfying about your job What would you change about your job Did your job duties turn out to be as you expected Did you receive enough training to do your job effectively Did you receive adequate support to do your job Did you receive sufficient feedback about your performance between merit reviews Were you satisfied with this company's merit review process Did this company help you to fulfill your career goals Do you have any tips to help us find your replacement What would you improve to make our workplace better Any other comments There is yet another hidden purpose of conducting an Exit Interview - avoid any future litigations or troubles from problematic employees. Another issue for consideration is that whether all supervisors need to be trained in Team management and People management. The focus here is on supervisors especially because, they are the people who interact with the subordinates and other employees and also they are the ones who act as representatives of the employees to the higher management. Let us now understand the role of a supervisor with respect to team management. In work groups or work teams, the supervisor decides who does what tasks. In other words, the supervisor makes decisions and controls the activities of the workers. But in teams, the members themselves identify the necessary tasks and the workers who possess the skills needed for a particular job. Therefore, the team itself decides who will do which jobs. The supervisor acts as a facilitator and coach, who helps team members make effective decisions. Essentials for Building Effective Teams Effective teams can be built by nurturing an environment that facilitates and supports the development of teams. All team building exercises must ensure that the team members are clear about their roles in the organization and that they possess the adequate skills to perform their roles. A reward system that recognizes and encourages team work over individual effort should also be developed. Providing supportive Environment - In order to build effective teams, managers should provide an environment that supports teamwork. By doing so, the management encourages the employees within the organization to initiate teamwork. Teamwork builds mutual trust and co-operation and makes the employees adaptable and flexible. In order to create these conditions, managers or supervisors need to develop an appropriate organizational culture. Focus on super-ordinate goals - The supervisors or managers of teams should keep the team members focused on accomplishing the overall task, not just on accomplishing their individual tasks. Effective teams emphasize the achievement of a super-ordinate goal, thus encouraging every member of the team to think beyond his individual interests. Therefore, supervisors should consider creating super-ordinate goals for a team. Super-ordinate goals are higher level goals which integrate the efforts made by two or more people. The basic purpose of super-ordinate goals is to focus the attention of the members and unify their efforts. Another change that is recommended to the organization is to manage and reward the performance of its staff. This process can be technically termed as 'Performance Appraisal.' Performance Appraisal can be defined as the process of evaluating the performance of an employee and communicating the results of the evaluation to him for the purpose of rewarding or developing the employee. According to Michael Armstrong, "Performance Appraisal is a formal assessment and rating of individuals by their managers at -usually- an annual review meeting." Performance can be defined as the degree of accomplishment of tasks by an employee in his job. In some organizations, it is a measure of the results achieved and targets accomplished whereas in other, it is a measure of employee efforts and behavior. A performance appraisal system facilitates optimization of employee performance and also helps in identifying areas for development. It is also useful for taking administrative decisions relating to payment of incentives, promotions etc. The performance appraisal system should provide for recognition of employee performance in the face of adverse external influences, if any. For example, the performance appraisal of a sales person should take into account the effects of a slump in the market or high inflation rate. An effective system of team rewards encourages teamwork. The rewards could be either financial or non-financial. An organization's reward system is all the more effective if the rewards have the potential to motivate employees to perform better. Therefore, these rewards should be given to employees on the basis of their performance in the team. Apart from giving recognition to good performance, organizations should design innovative team rewards, such as giving team members the authority to select new members, asking their opinion about a new supervisor, or allowing them to develop rules and regulations for team members. [5] (ICMR, 2003) As the necessary changes which are felt to help the organization are recommended, the next question that needs to be answered is convincing the stakeholders about the implementation of these changes. This can be done through two ways. They are: I. By conducting an Organizational climate survey - The Organizational Climate Survey helps in examining the various opinions of the employees about different aspects like the quality of their work and many other similar aspects. Given below are certain dimensions of the Organizational climate that are a result of conducting the Organizational Climate Survey: Role-Clarity: Job duties and individual roles are clearly understood. Communication: Employees are free to express or communicate their opinions and all other communication within the organization is carried out in an effective manner. Relationships: The organization values the relationship between its employees and its customers. Teamwork: Teamwork is encouraged and supported in the organization. [2] II. By conducting an employee satisfaction survey - A variety of aspects like employees' attitudes, opinions, satisfaction and motivation can be measured through an Employee Satisfaction Survey. If accurate and results that are reliable are expected from the survey, then a little care is to be taken when designing the questions. Questions for the survey are to be designed in a professional manner so that the information obtained is unbiased. The organizations' culture is to be kept in mind and then the survey is to be administered with at most care and concern. The analysis of the survey needs to be done by people who actually understand what a survey research means. All the results of the survey should be communicated in an effective manner. This is to ensure and build integrity and trust among the employees of the organization. [3] (Susan M. Heath field, 2002) The above tasks may be implemented and the results should be monitored and then taken further. Prior to that, the stakeholders are to be convinced about the necessary changes and also the benefits of the proposed changes. The aspects that support the justification of these actions are mainly from People development and Performance management. To be specific, MBO (Management by Objectives), Balanced Score Card and 360 Degree Appraisal are some aspects which may be helpful with respect to our case. Management by Objectives - MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed towards the effective and efficient achievement of organization and individual objective. [6] (ICMR, 2003) Balance Score Card - The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. [1] (Paul Arveson, 1998) 360 Degree Appraisal - A 360 degree appraisal system aims at a comprehensive and objective appraisal of employee performance. In this process, the employee's performance is evaluated by his supervisor, his peers, his internal/external customers, his internal/external suppliers and his subordinates. [4] (ICMR, 2004) Conclusion Every organization though how successful will surely have certain issues which may turn out to be serious and may even effect the performance and survival of the organization in the long-run. If such issues are identified at an early stage and rectified, it is all the more sure that the organization would definitely go places. This is applicable to Gateway Engineering Limited too. References: 1. http://www.balancedscorecard.org/basics/bsc1.html 2. http://www.corporatesurvey.com/ClimateSurvey.aspx 3. http://humanresources.about.com/od/employeesatisfaction/a/surveys.htm 4. Introduction to Human Resource Management, published by ICFAI center for Management Research, 2004, Reference no.: IHRM 032K3 09. 5. Introduction to Management, published by ICFAI center for Management Research, 2003, Reference no.: IM 11 2K3 08. 6. Introduction to Organizational Behavior, published by ICFAI center for Management Research, 2003, Reference no.: IOB 11 2K3 04. Read More