Workplace Relationships - Case Study Example

Employee's attitudes and Job satisfaction 1. Introduction Employee satisfaction is a necessary element of the success of any business internationally. In this context, the workplace relationships have been considered to be of significant importance for the employees’ productivity. In fact, it has been found by Sias (2005, 375) that ‘workplace relationships are unique interpersonal relationships with important implications for the individuals in those relationships and the organizations in which the relationships exist and develop’. However, because in many cases problems tend to appear within the workplace, the intervention of the managers and the application of possible change plans (in order to bring the employees’ productivity again at a high level) become necessary. But the response of employees in these initiatives is not always the desired one. Indeed, the study of Huy (2002, 31) led to the conclusion that ‘fundamental change in personnel, strategy, organizational identity, or established work roles and interests often triggers intense emotions’. For this reason, managers in all firms globally need to apply appropriate HR policies trying to promote the fair behaviour towards the employees in all HR sectors (remuneration, promotions, benefits and so on). Moreover, it is stated by Blinder (1990, 117) that ‘employees usually feel that profit sharing and gain sharing are good for personal effort, company growth and productivity, and workplace atmosphere’. Current paper refers to the job satisfaction within the modern workplace as it can be observed in two particular firms: Siemens and Rover. The first of the firms is a well known multinational corporation while the second has been almost diminished after being sold (due to financial problems) to BMW (in 1994) which in its turn sold it to a Chinese corporation, the Nanjing Automobile Group in 2005. The HR strategies applied by these two firms in relation with their employees are going to be presented and compared in order to identify through the issues developed the importance of job satisfaction for the personal and professional development of employees but also for the increase of firm’s profitability. 2. Job Satisfaction in modern workplace – Siemens v Rover At a first level, it is stated by Frankel (2002, 150) that ‘workplace relations are both an expression of wider economic, political and social forces and a major influence on the life chances of most adults’. On the other hand, it is supported by Jackson et al. (1995, 248) that ‘employees do not respond to specific human resource policies and practices in isolation but they attend to and interpret the entire array of information available and from this they discern cultural values and behavioral norms’. The response of employees in the HR policies applied in modern corporations can be identified through the case of two well known firms, Siemens and Rover. Siemens was founded in 1847. Currently the firm operates in more than 190 countries globally having a significant number of employees (approximately 461,000 in accordance with the corporate website). The company operates in many industrial sectors including Communication, Power, Transportation, Medical and electrical appliances. The company applies a well structured HR policy promoting diversity and fair remuneration among its employees. More specifically, in accordance with the corporate website [1]: ‘It's a known fact - the employee who performs best is one who is motivated; Through ongoing, open dialogue and clear target agreements and in partnership with you, we define the environment you need to empower you to work independently’. On the other hand, Siemens is strongly depended on its employees as significant units within the organization. For this reason it is stated in an announcement related with the firm’s HR current strategy that: ‘your success is our success: make your strengths work for you by playing an active part in the process of agreeing targets. What you gain is clarity – you know what we expect of you, the yardstick by which we measure you and the career opportunities and development steps available to you’ [1]. In practice, the firm has introduced the ‘annual Staff Dialogue’ between HR managers and employees while it also tries to adopt a fairly designed payroll scheme which is considered to promote the job satisfaction within the firm. We could also refer indicatively to the US branch of the firm in which a ‘Diversity Strategic Initiative’ has been introduced in order to help towards the increase of the employees’ productivity. In accordance with the corporate website the sectors to which this effort refers primarily are the following ones: ‘recruitment, the filling of key jobs, mentoring and communication’ [1] In the case of Rover, no specific initiatives could be reported regarding the firm’s employees. The most characteristic example of the lack of appropriate HR strategy in the firm is the fact that after the firm stopped its operations (for a short period, before sold to BMW) no particular provisions existed for the payment of its employees who were found to be with no job while a significant amount of money was also due to be paid to them as their salary. Rover operates currently within Nanjing Automobile Group. Rover has been established as a state-owned firm, the British Leyland Motor Corporation (formed in 1968). Because the firm is not independent any more, no particular information on the possible HR strategies applied throughout its operation could be retrieved – apart from general information through other websites (e.g. [2]) and press reports published online. In a relevant article published by BBC News it is stated that ‘for a transitional period a rump workforce will continue to be employed by MG Rover Group and engine maker Powertrain’ [3]. The above comments refer to the work future of Rover’s employees after the company was sold from BMW to Nanjing Automobile Group. Actually, it was the second time that the firm’s employees faced a severe threat regarding their job. In 1994 when the firm was sold to BMW many employees were become redundant. The above facts prove that the firm had no appropriate plans for the future of its employees in case of a business failure. 3. Issues for consideration The role of HR managers in the protection of the employees’ interests within any organization is crucial. In fact, in accordance with Luthans (1998, 17) ‘the traditional role of the HR/personnel department has essentially been functional in nature and has revolved around specialized tasks such as HR planning, recruiting, job analysis, performance review, compensation, training, and legislative compliance’. Many strategies could be developed by firms in the international market in order to improve the position of their employees. The creation of a specific department – HR or personnel department – could be a first step towards this direction. For this reason, Hamilton (1995, 399) mentioned that ‘establishing a personnel unit and designating a personnel officer is dependent upon a number of variables including number of employees, type of organization, size of budget, and expectations regarding the personnel unit’. From a different point of view, it is supported by Marchington et al. (2005, 72) that ‘having recruited ‘outstanding human talent’, employers need to ensure that these people remain at the forefront of their field, not only in terms of professional expertise and product knowledge but also through working in teams or in interpersonal relations’. However, the value of employees within a firm is not always appreciated. The change of conditions within workplaces around the world could be a reason for this phenomenon. As it has been found by Korman et al. (1999, 3) ‘the world of work in which human resource management (HRM) operates has changed dramatically in the last half century’. For this reason, HR department should deal primarily with the following issues: ‘1) leadership and employee motivation and 2) HR practices (recruitment and selection, training performance appraisal and compensation management)’ (Lajara et al., 2002, 34-36)’. Moreover, the rewarding of employees performance is significant, but it should be planned appropriately offering also motivation for the future. Indeed, Rudman (2003, 174) states that ‘instead of rewarding past performance the organisation should focus on future development, using a range of human resources practices to lead and support the achievement of individual and organisational goals over the long term’. The above assumption is also supported by Walker (1994, 59) who found that ‘managing performance aligns individuals and teams with the objectives of the business’. Of course, there are many chances the HR managers of a firm fail to appropriately administer the problems of employees within the specific organization. Regarding this issue it is noticed by Bunker et al. (2005, 12) that ‘much of that failure stems from not understanding how to manage the structural side of change and the human dynamic of transition’. There is also the issue of resistance within the workplace. In this context, it is noticed by Katzenbach (1996, 149) that ‘change efforts are often conceived as waves of initiatives that sweep through an organization from the top down, or the bottom up, or both, and flow across functions’. In other words, even if appropriate efforts have been made by the firm’s HR managers, the lack of willingness to employees regarding the support of the proposed HR plans can cause significant delays on the progress of the firm’s initiatives. However, it is noticed by Parks (1995, 21) that ‘the greater uncertainties associated with the labour, capital, and more fragmented product markets require more dynamic and flexible responses from firms’. In the firms examined in current paper, the HR strategies applied have been totally differentiated – in fact in the case of Rover no appropriate HR plan could be identified. The success of the HR policies applied in Siemens has led to the continuous and incremental development of the firm’s success within the international market. On the other hand, the weakness of Rover to appropriately support its employees has led to the limitation of the corporate activities and finally to the total elimination of the firm’s independence. Works Cited Frenkel, S. (2002). Workplace Relations: Past, Present and Future. Australian Journal of Management, 27(2): 149-158 Hamilton, D. (1995). The Personnel Function in Small Public Organizations. Public Personnel Management, 24(3): 399-407 Huy, O. (2002). Emotional Balancing of Organizational Continuity and Radical Change: The Contribution of Middle Managers. Administrative Science Quarterly, 47(1): 31-66 Jackson, S.E., Schuler, R.S. (1995) ‘Understanding human resource management in the context of organizations and their environments’, Annual Review of Psychology, 46, 237-258 Katzenbach, J. (1996). Real Change. The McKinsey Quarterly, 1: 148-153 Korman, A., Kraut, A., London, M. (1999). Evolving Practices in Human Resource Management: Responses to a Changing World of Work. San Francisco: Jossey-Bass Lajara, M., Garcia Lillo, B., Sempere, V. S. (2002). The Role of Human Resource Management in the Cooperative Strategy Process. Human Resource Planning, 25(2): 34-46 Luthans F., & Kreitner R. ( 1975). Organizational behavior modification. Glenview, IL: Scott, Foresman Parks, S. (1995) Improving Workplace Performance: Historical and Theoretical Contexts. Monthly Labor Review, 118(5): 18-32 Sias, P. (2005) Workplace Relationship Quality and Employee Information Experiences. Communication Studies, 56(4): 375-392 Walker, J. (1994). Integrating the Human Resource Function with the Business. Human Resource Planning, 17(2): 59-71 Websites http://www.siemens.com/index.jsp?sdc_p=cd1138598fi1133061lmn1133059o1133061ps6uz1 [1] http://en.wikipedia.org/wiki/Rover_Group [2] http://news.bbc.co.uk/1/hi/business/4708739.stm [3] Read More