Problems and the Issues Faced by David Orton Plc - Assignment Example

Organizational Behaviour Table of Contents 0Introduction 3 2.0 Findings 4 2 Motivational 4 2.2 Perceptions 5 2.3. Main problems 6 2.3 Personalities 6 2.3.2 Communication 8 3.0 Conclusion 9 4.0 Recommendations 11 In order to mitigate the issue relating to employee morale, the organization i.e. Costwise needs to provide certain responsibilities to them, treating them as people, valuing their ideas as well as suggestions and build an effective communication with them. Most significantly, the organization needs to offer high and attractive incentives and perks in order to boost their morale by a significant level. With regard to the case study, it can be comprehended that bothOrton and Costwise should pay utmost attention towards the welfare of their respective organizations in order to raise profitability and competitive position at large. While mitigating the problem relating to lack of business strategies, Costwise should adopt and implement effective business policies such as delivering cost-effective products to the customers. Moreover, Costwise needs to resolve the problem connected with unstructured operational functions by utilizing certain effective strategies. The strategies might include incessantly analyzing operational performances and determining the long-term operational objectives among others. In addition, Costwise must develop effective teamwork as well as motivation within its organization because without teamwork and motivation, it is not possible for an organization to perform better that would ultimately enhance its profitability. So, it is required for the management of Costwise to provide better work structures and motivate the employees by analyzing their problems for achieving its desired organizational objectives (Rollinson, n.d.). 11 In accordance to the case study, it is required for the organizations like Orton and Costwise to provide its employees the facilities that could assist them to work efficiently. However, it is the prime duty of the management to assist the employees and help them to enhance organizational productivity and profitability by a greater extent. The business manager of a particular team needs to motivate the members and provide the necessities to them. By taking into concern the problems or the issues which faced by Costwise and Orton, it can be stated that there must lie effective communication between the employees and the management. Furthermore, there should be the formulation of strategic planning which will make by the management of the organizations to deal with any kind of severe issues or problems. It can be suggested that eeffective decisions needs to be taken in order to develop a better strategic plan for survival in this competitive business market. Thus, one the basis of the above discussion, it can be affirmed that the aforementioned suggestions would ultimately support David Orton PLC and the merged organizations such as Costwise and Orton to mitigate the identified issue or problems by a considerable level (Rollinson, n.d.). 12 5.0 References 13 6.0 Bibliography 16 1.0 Introduction Orton Group emerged as a chief British food retailer in the early period of 2004. The group instigated to acquire one of its major rivalries i.e. Costwise, another big supermarket group by placing public offers for its shares possessed by the group. Consequently, a significant number of counter-bids were placed by other major retailing groups that ultimately prompted the acquisition process. However, the acquisition process was restricted until the period of mid-2005 and subsequently both the companies i.e. Orton Group as well as Costwise merged under the brand name of David Orton PLC. By assessing the business performance of Orton and Costwise, it has been apparently observed that the management of Orton decided to extend its business by opening convenient stores in the initial period and intended to make effective plans to make large superstores. Conversely, Costwise strongly realized to make valuable transformations in its business operational processes for its survival in the competitive business market and mitigating the difficulties associated with retaining its staffs. The company also believed that the difficulties relating with the staffs can hamper their business performance by a considerable level (Rollinson, n.d.). The purpose of this report is to highlight the problems and the issues that faced by David Orton PLC while performing its operational functions. Moreover, the other aim of this report is to draw effective as well as valuable suggestions for the organization so that it can resolve the issues as well as the difficulties and can attain its expected business objectives by a considerable level. 2.0 Findings 2.1 Motivational State Motivation is fundamentally described as the procedure of stimulating different people for the purpose of accomplishing desired organisational targets. In relation to the motivation study, it has been observed that several motivational suppositions have been introduced by various theorists. In this similar context, according to the theory of scientific management which developed by the theorist Frederick Winslow Taylor, employees belonging to any organisation generally motivates by payments. From the viewpoint of another theorist i.e. Frederick Herzberg, employees can be motivated by taking into concern certain hygienic factors which embrace money, status and security (Goldsmith International Business School, n.d.). According to the need based motivational theory which developed by the theorist Abraham Maslow, employees get motivated, if the management of an organisation comply with their several needs or desires relating to safety, psychological and communal among others (Shanks, n.d.). According to the motivational theory which presented by Taylor and Herzberg, it can be apparently stated that the employees of Costwise faced certain crucial problems regarding payments or salaries which ultimately led towards the discrepancies in the process of work. In relation to the case study, it has been observed that there fewer payments were made to the employees of the organisation as a result of which the motivation was quite low amid them to work effectively and efficiently. Conversely, the organisation had to face the problem about maintaining its productivity as well as profitability. By taking into concern the above discussion, it can be stated that the motivation of the employees of Costwise was quite low because of the low structure of payments which significantly impose unfavourable effect upon the productivity as well as the operational effectiveness of David Orton PLC by a significant level (Rollinson, n.d.). 2.2 Perceptions Perceptions play an imperative part within the context of organisational behaviour as it supports the different organisations to adopt effective decisions and implement strategic functions in order to raise their profitability as well as productivity at large. Moreover, the success of an organisation mainly depends upon the perceptions or the ideas of every individual member. The major differences in the perceptions of the members might lead towards the failure in attaining success as well as expected business objectives by a greater extent (Ucar & Otken, 2010). In the circumstance of cultural effectiveness within a business organisation, individual norms are less significant for which the business managers of the organizations try to influence the employees to increase the interest towards their respective job tasks (DeVoe & Iyengar, 2003). With the merger of two organizations, David Orton PLC faced crucial problems that are related to the attitudes as well as the behaviours especially of the employees belonging to Costwise. In this regard, the differences in the perceptions related to organizational context amid Costwise employees ultimately disrupted the entire work process of David Orton PLC. It has been observed that the business managers of Costwise take valuable decisions regarding stocking of items and variation in prices among others by their own. But, on the other hand, it has been viewed that Orton Group performed the aforementioned activities under the guidance of the higher authority. Precisely, it can be stated that Costwise focused upon the approach of decentralized control. As there lays a significant difference in the management processes between the two organisations i.e. Costwise and Orton, it ultimately affected upon the perceptions of their employees which in turn imposed adverse affect upon the operational performance of David Orton PLC (Rollinson, n.d.). 2.3. Main problems 2.3.1 Personalities The feature of personality within the background of organisational behaviour is fundamentally described as the comparatively consistent behavioural patterns as well as attitudes of the employees. Personality can be characterised into two distinct types which include Type A and Type B. In this similar context, it has been apparently observed that the individuals or the employees belonging to Type A personality are generally competitive, workaholic and perfectionist. Whereas, the individuals or the employees belonging to Type B personality are relaxed, enjoy leisure as well as vacations and uncompetitive (Raza, 2007). The theory of perception provides certain kinds of behaviour of the individuals that can be related within the organizational context. There are certain facets that are important for determining the personality of the individuals which include self –esteem and locus of control among others that broadly affects the business as well as operational performance of an organisation (Assumption University of Thailand, 2009). The major problems and the issues which faced by David Orton PLC include ineffective management, lack of strategic business policies, unfavorable pay structure and most importantly unstructured operational arrangements. After acquiring a brief idea about the feature of personality, it can be stated that the employees of Costwise can be related with Type A as they possessed strong loyalty sense towards each other. Though, the employees of Costwise bears effective loyalty sense, still David Orton PLC faces the issue of low employee morale due to the deliverance of unfavorable payments to them. With reference to the case, it can be comprehended that there were certain problems related to the structures of payments in the organization of Costwise. While discussing the major problems or issues that faced by David Orton PLC, it has been identified that one of the imperative difficulties experienced by the organisation was related to ineffective management. Due to the lack of effective management practices, Costwise experienced a high level of staff turnover which in turn affected the profitability of David Orton PLC by a considerable level. Moreover, the management of Costwise tends to adopt certain valuable decisions relating to payments by their own without consulting with the employees. On the basis of this discussion, it can be stated that the organisation i.e. Costwise followed decentralised managerial procedure that ultimately affected the operational performance of David Orton PLC. As a result, the motivation as well as the morale of the employees was quite low due to lack of effective communication between the employees and management. Besides, it has also been observed that David Orton PLC also faced the major issue regarding lack of implementing effective business strategies. In this regard, it has been observed that Orton has struggled to get a strong hold upon its turnover due to the deliverance of its several services particularly at lower retail costs as compared to the competitors. As the organisation i.e. Orton offered low-structured prices, it can broadly be stated that the financial performance of David Orton PLC was hampered by a greater extent (Rollinson, n.d.). 2.3.2 Communication Effective communication is very much vital for the organisations in order to perform various management related functions effectively which include controlling, organising and planning, among others. Moreover, it is the communication which supports the business managers of an organisation to successfully perform their assigned job tasks as well as responsibilities. The business managers normally devotes considerable time in building effective communication with every individual member belonging to the organisation with the prime intention of raising their business as well as operational excellence by a considerable level. Communication can be of several types which include telephonic or face-to-face communication and written communication in the form of reports or letters (Manning, n.d.). Communication, within an organisational context, promotes the significant aspect of motivation by informing as well as clarifying the personnel about their respective job responsibilities and how to enhance their operational performances. In addition, it plays an imperative part in transforming the attitudes of an individual or the employees (Baker, 2002). In relation to the case study, it has been noted that David Orton PLC faced the significant issue regarding lack of effective communication between the employees and the management. The chief reasons for the emergence of the problem can be identified as due to ineffective management process and most importantly unfavourable pay structures. It has been already observed that the morale of the employees of Costwise were much low as their payment structures were not been high so that it can comply with the requirements of the employees by a greater extent (Rollinson, n.d.). 3.0 Conclusion After the merger of both organisations i.e. Orton Group and Costwise, David Orton PLC faced significant problems or issues while performing its operational functions. The problems or the issues were mainly related to several significant aspects which include ineffective managerial process, low level of payments, unstructured operational arrangements and lack of effective business strategies. Amongst the aforementioned problems, David Orton PLC faced the major issue which can be stated that it broadly hampered the business and operational performance was regarding employee morale. In relation to the case study, it has been observed that the morale of the employees of Costwise was much low as the company introduced as well as developed low level of salary structures for its employees. Moreover, Costwise experienced superior level of staff turnover due to decreased morale of the employees along with operational ineffectiveness. The organisation i.e. David Orton PLC realised that merging with Costwise had led towards rising significant problems that ultimately affected its business performance by a considerable level. Apart from the vulnerable situation of Costwise, the other organisation i.e. Orton also struggled to maintain its turnover. It was due to the reason that the organisation failed to implement effective business strategies for which it had to face immense loss. Additionally, the management of Orton was not so much effective and followed the element of decentralised control. By taking into concern the adverse impact of both the organisations, it can be affirmed that David Orton PLC faced significant problems while performing its operational functions. In order to mitigate the aforesaid issues or difficulties, certain valuable suggestions have been prescribed for David Orton PLC. 4.0 Recommendations In order to mitigate the issue relating to employee morale, the organization i.e. Costwise needs to provide certain responsibilities to them, treating them as people, valuing their ideas as well as suggestions and build an effective communication with them. Most significantly, the organization needs to offer high and attractive incentives and perks in order to boost their morale by a significant level. With regard to the case study, it can be comprehended that bothOrton and Costwise should pay utmost attention towards the welfare of their respective organizations in order to raise profitability and competitive position at large. While mitigating the problem relating to lack of business strategies, Costwise should adopt and implement effective business policies such as delivering cost-effective products to the customers. Moreover, Costwise needs to resolve the problem connected with unstructured operational functions by utilizing certain effective strategies. The strategies might include incessantly analyzing operational performances and determining the long-term operational objectives among others. In addition, Costwise must develop effective teamwork as well as motivation within its organization because without teamwork and motivation, it is not possible for an organization to perform better that would ultimately enhance its profitability. So, it is required for the management of Costwise to provide better work structures and motivate the employees by analyzing their problems for achieving its desired organizational objectives (Rollinson, n.d.). In accordance to the case study, it is required for the organizations like Orton and Costwise to provide its employees the facilities that could assist them to work efficiently. However, it is the prime duty of the management to assist the employees and help them to enhance organizational productivity and profitability by a greater extent. The business manager of a particular team needs to motivate the members and provide the necessities to them. By taking into concern the problems or the issues which faced by Costwise and Orton, it can be stated that there must lie effective communication between the employees and the management. Furthermore, there should be the formulation of strategic planning which will make by the management of the organizations to deal with any kind of severe issues or problems. It can be suggested that eeffective decisions needs to be taken in order to develop a better strategic plan for survival in this competitive business market. Thus, one the basis of the above discussion, it can be affirmed that the aforementioned suggestions would ultimately support David Orton PLC and the merged organizations such as Costwise and Orton to mitigate the identified issue or problems by a considerable level (Rollinson, n.d.). 5.0 References Assumption University of Thailand, 2009. Personality and Values. Personality. [Online] Available at: http://www.graduate.au.edu/download/content/file/school%20of%20business/MBA%20ProD&E%20Comprehensive/ProMBAEveB3/Robbins_CH03.pdf [Accessed November 19, 2012]. Baker, K.A. 2002. Organizational Communication. Introduction . [Online] Available at: http://www.au.af.mil/au/awc/awcgate/doe/benchmark/ch13.pdf [Accessed November 19, 2012]. DeVoe, S.E. & Iyengar, S.S., 2003. Managers Theories of Subordinates: A Cross-Cultural Examination Of Manager Perceptions Of Motivation And Appraisal Of Performance. Perceptions of motivation. [Online] Available at: http://www.columbia.edu/~ss957/articles/Managers_Theories.pdf [Accessed November 19, 2012]. Goldsmith international Business School, No Date. Motivation. Key Theories of Motivation. [Online] Available at: http://www.goldsmithibs.com/resources/free/motivation/notes/summary%20-%20motivation.pdf [Accessed November 19, 2012]. Joseph, E. Champoux. 2010. Organizational Behavior: Integrating Individuals, Groups, and Organizations. Taylor & Francis. Manning, P.K. n.d. Organizational Communication. Aldine. Raza, A. 2007. Personality at Work: A Study of Type A-B. Personality. [Online] Available at: http://www.pafkiet.edu.pk/LinkClick.aspx?fileticket=DY7RrmXctXc%3D&tabid=160&mid=1556 [Accessed November 19, 2012]. Rollinson, D. Organisational Behaviour and Analysis 4th Edition. Prentice Hall. Shanks, N.H. No Date. Management and Motivation. Theories of Motivation. [Online] Available at: http://www.jblearning.com/samples/076373473x/3473x_ch02_4759.pdf [Accessed November 19, 2012]. Ucar, D. & Otken, A.B. 2010. Perceived Organizational Support and Organizational Commitment: The Mediating Role of Organization Based Self-Esteem. Introduction. [Online] Available at: http://www.iibf.deu.edu.tr/dergi/6ucarotken.pdf [Accessed November 19, 2012]. 6.0 Bibliography Ahmed, S.F., Gilkar, N.A. & Darzi, J.A. 2008. Organisational Behaviour. Atlantic Publishers & Dist. Aquinas, P.G. 2009. Organizational Behaviour. Excel Books India. Banerjee, M. 1995. Organizational Behaviour. Allied Publishers. Bangkok University, 2007. Introduction to Organisational Behaviour. Organisational Behaviour: Theories and Concepts. [Online] Available at: http://bupress.bu.ac.th/ebook/mba/ba511_Suthinan.pdf [Accessed November 21, 2012]. New Age Publishers. Study of Organisational Behaviour. Introduction to Organizational Behaviour. [Online] Available at: http://www.newagepublishers.com/samplechapter/001395.pdf [Accessed November 21, 2012]. Read More