Organization Structure of BAE Company and Corporate Responsibilities of People in the Company - Case Study Example

Running head: ANALYSIS OF PERFOMANCE MANAGEMENT SYSTEM AND CONFLICT RESOLUTION PROCESS IN BAE SYSTEM COMPANY Institution Name Table of Contents Abstract…………………………………………………………………………………………3 Introduction……………………………………………………………………………….........4 Organization Structure of BAE Company and Corporate Responsibilities of People in the Company…………………………………………………………………………………..5 Overview of responsibilities of Top Mangers and Line Managers in BAE System Company……………………………………………………………………………………….5 Responsibilities of line managers……………………………………………………6 The Roles and Responsibilities of Line Managers in Conflict Resolution and Challenges Experienced…………………………………………………………………………………….7 The Roles and Responsibilities of Line Managers/Supervisors in Performance Management and their Challenges…………………………………………………………..9 Performance Management System…………………………………………………………10 Is there any challenge that may hinder performance management system of the organization?.......................................................................................................10 How the company does ensure that the system (Performance Management) works effectively?.................................................................................................11 Does Performance Management System BAE Company Supports Company’s achievement of desired results?..........................................................................11 What is the purpose of SHRM performance system in the organization?...........12 Conclusion…………………………………………………………………………………….13 Reference………………………………………………………………………………………14 Abstract This paper analyzes two important Strategic Human Resource Management Functions with respect to BAE System Company; Conflict Resolution and Performance Management. BAE System Company is a supplier of safety equipments and military products not only in UK but also around the globe. The paper explains the five countries of the world that BAE System Company has build a corporate business culture with them (UK, United States, Australia and Saudi Arabia). Roles and responsibilities of the top leaders have been explained so as to give the right direction of the paper, i.e, as far as the top leaders oversee the supervisors, normally supervisors’ roles are subsets. The paper restrict itself to the roles played by line managers, challenges faced and gaps existing in the two areas Human Resource Functions (Performance Management and Conflict Resolution). An interview conducted perhaps guides all the writing in this paper in analyzing the two fields of Human Resource Functions. Introduction The overview of BAE Systems Company BAE System is a premier global company which operates entirely on the five continents of the world. The company is the worldwide provider of security and protection products in which it supplies them to the various customers of the world in order o meet their changing needs. The products supplied by the company include, classy cyber services and martial services, consultancy services, safety equipments as well as electronic systems of high technology. The company has about 100,000 employees who are trained to work in various parts of the continent. The countries in which the company operates include Australia, United States, Kingdom of Saudi Arabia, India and United Kingdom. Looking at this diverse ground of operation, the company is likely to have a diverse organizational culture which is present actually. Over the decade, the company has experienced new developments which have, however, made the future of the company look brilliant and lucrative in terms of advance technology. The business environment of BAE System Company has been gradually changing since the beginning of the new century. At the moment, BAE is a corporate company in which the British Government has looked down to its corporate friends worldwide in order to do business with them. As mentioned before, United States, Australia and Saud Arabia have given a prospect the company (BAE Systems) to have a global business environment in the diverse culture. The company values diversity in view of the fact that it has developed inclusive work place by coming up with maturity matrix that tracks good practices. Apart from the regulatory compliance of the company, this matrix has integrated measures of performance management as well as conflict resolution. Even so, Human resource department is proud of the unique system of handling its functions and this is the foundation of competitive advantage which has already been experienced in the global market. Organization Structure of BAE Company and Corporate Responsibilities of People in the Company The company has an exceptional structure which clearly segregates the responsibilities of each line manager in the organization. The following chart shows the hierarchy of power in the organization. Overview of responsibilities of Top Mangers in BAE System Company With regard to HRM department of the company, a manager in charge of Product Sector is responsible for communicating and implementing optimal drivers of business performance which consist of electronic systems and land weapons. She/he is also involved in overseeing research and development of technology so as to meet customers’ needs. As a responsible business leader, the person in charge of this sector also needs to demonstrate ability to lead complex problems in the organization in order4 to reach valuable solutions. This is actually a corporate responsibility of any other line manger in the organization. The manager in the Group General Counsel department is responsible for ensuring that the company has the right acquisitions at the right time. These acquisitions include pharmaceutical products and telecommunication services. The manager is also expected to undertake corporate transactions in United States, Australia, United Kingdom as well as in Saudi Arabia. Group Business Development Director is responsible for promoting the company globally by covering deals/contracts, managing projects as well as precise procurement and strategy to the origination. The manager is also responsible for international marking and sales for the organization. The manager in the Group MD international is responsible for company’s operations in various parts of the world. Some of these countries include Oman, Saudi Arabia and Air Astana which are the major interest of the company. Generally, the manager in this position oversees business functions through the performance on employees in the company. Human Resource Director in the company is responsible for the guidance and management of human resource functions of the company. These functions include performance appraisal, conflict resolution, human resource planning, training and development, motivation and job description and specialization. Financial Director of the company is responsible for financial control of BAE System Company. He/she drives business performance and normally plays a major role in business planning, financial risk management and endorsement of acquisitions and corporate operations of the company. And, Communication Director of the company plays a key role in ensuring that there is efficient communications worldwide both external and internal. These include ads for the company, brand portfolio, employee engagement and media relations. The above responsibilities regard the top management leaders. It is helpful to discuss them since it has a strong connection with those of line managers and supervisors. The Roles and Responsibilities of Line Managers in Conflict Resolution and Challenges Experienced According to Hyde et al (2006), conflict management especially in diverse organizations is normally not an easy thing. Perhaps, we can have an example that explains different roles played by line managers as well as supervisors when resolving conflict in the organization. Given a situation where one of the workers in the company has been having several difficulties and these has led to poor performance. The manager/supervisor in this case may be new in the job environment therefore he/she may decide to fire an employee since he does not want any compromise situations. The meeting of the supervisor with an employee is bound with bad news of job dismissal. One may think that the conflict is now over and the situation is okay. But, this is just but the beginning. Employees’ grievances against organization as well as the supervisor will be on the tongues of the employees. Therefore, what is the right strategy of conflict resolutions? What roles does the manager (supervisor) play in conflict resolutions? From the research, conflict can be positive and as well, it can give a chance to a manager to learn while strengthening his/her work unit (Flamholtz, 1995). Productive relationship (Garfinkel and Skaperdas, 2000) is enhanced by successful conflict resolution process with the apparent communications. Let us focus on the roles of a supervisor (line manager) and challenges faced during conflict resolution process at every step; First, when a conflict arises, the first person to be consulted is the supervisor. The supervisor has three roles in this step; 1) He/she ensures that the problem has not long stayed without being presented; 2) He/she leads the department through the conflict presented by the complainant. Thereafter, a generalist comes in perhaps to support the process at the initial stage. If at all the conflict has not been resolved in the first step, it is the responsibility of the supervisor to consult the top management about mediation process. Mediation has mentioned by Klein (1991) in his research is an appropriate protocol for conflict resolution at this stage. The mediator in this step is supposed to give a simple procedure for the involved parties in order to account for their perceptions and feelings. A certain role of the supervisor in this stage is also clear communication of the issue while presenting it in front of a mediator. Third step is advanced stage whereby the two parties are given an option of presenting other resources that regards their differences. This may not actually involve the supervisor, however at some point he/she may be called for clarification. Reflecting this on BAE System Company, the company has a special sound investigation system that promptly reviews the allegations presented (BAE Systems’ Business Conduct Program, 2011). The system has time based update in which all the supervisors at different levels of management receives new techniques and guidelines on how to manage conflict in the organization. The system also allows employees to present their allegations which will be passed to Helpline for professional resolutions. Also, the system a well placed mechanisms that review disciplinary actions annually regarding matters at line managers’ level. The Roles and Responsibilities of Line Managers/Supervisors in Performance Management and their Challenges Performance management system in strategic human resource management normally has two aspects of focus; performance appraisal and employee development. Ghorpade and Chen (1995) called it “Achilles heel” of human resources management since most organizations suffer compromised situations especially in their daily operations. From the interview, the managers agree that performance management system in the workplace enables them to set themselves feasible objectives that are probably attainable in a short term. According to Delaney and Huselid (1996) performance management normally compels employee behavior to merge with the required standards of performance in achieving goals and objectives of an organization. This alignment usually happens since; 1. The responsibilities as well as the expectations of an individual in the organization is clear therefore it increases both group and individual productivity as far as achievement of desired result is concerned. 2. A good performance system enhances better information management therefore it promotes effective decision making process. This is clearly seen from the interview conducted that the annual performance review gives satisfaction to the employees of BAE System Company. Though line managers in BAE System Company have been given a go ahead in performance review of employees in the organization, supervisors still follow the bureaucracy of the organization by passing the responsibility to the line managers for endorsement. Unfortunately, the mixed feelings in the senior management give an advantage to employees since they normally unwelcome performance management system in the organization. Sometimes managers are reluctant to give sincere feedback and make honest discussion with the workers in the organization (Boxall, 1994). This eventually leads to damaged relationship between the roles and an employee in the organization. With a review by Hostler (2011), CEO/President of Alyeska Pipeline Service Company, as a line manger, one should ask himself/herself about these four questions; a) What is the purpose of SHRM performance system in the organization? Performance management system serves two prime functions to the organization; 1. It helps in decision making process, and 2. It builds competence to an employee. The two primary functions of SHRM performance system are correlated in most cases. For instance, during decision making process as a manager, information obtained from appraisal forms are used perhaps for promotions, transfers or reduction of force. The top managers normally take these decisions. But what is the case with the line managers? With regard to BAE Company, there are some situations that perhaps do not need involvement of the top management. Rather, as a department, they brainstorm ideas on how to fix the problem in order to reduce time and build confidence to employees in their bosses. The idea of customizing a performance management system by Gilliland and Langdon (1998) is purported to be line managers’ effort. However, the company (BAE System) manipulates line managers in some situations as reflected from the interview; “Mixed feelings. The senior management doesn’t look at things the same way. Managers give impression that you don’t know what you are doing and want to control too much instead of letting you have the control necessary.” This is the response I quote from one of the candidate. The company, in one way or another, does not utilize most of its line managers. Rather, a number of top managers in the organization act apprehensively on someone else responsibilities. Definitely, this will compromise the relationship of employees at some point. When performance management system is used during employee development, information from appraisal forms is usually used for conducting training, mentoring as well as giving a job experience to the worker (Gilliland and Langdon, 1998). Therefore, we are convinced that an organization may have a performance management system that integrates both development and decision making process. However, this can be quite difficult when the margins between line managers and top managers are not clearly set (Weatherly, 2004). b) Does Performance Management System BAE Company Supports Company’s achievement of desired results? Competency model, as regarded by the interviewee, articulates useful skills, knowledge and abilities in achieving company’s strategy. Huselid, Jackson and Schuler (1997) found that competency model has array of useful factors that is normally associated with success. These factors improve worker’s technical, leadership and interpersonal abilities. At some point we can say that the performance management system of BAE Systems is somehow successful since there is a continuous review (annual review) of the system. This allows proactive adjustment of responsibilities in order to reach the desired objectives as a group. However, top managers are ought to trust the line managers so that they feel utilized. c) How the company does ensure that the system (Performance Management) works effectively? Perhaps most of the line managers in the company have the ‘focal spot’ that defines the role and responsibilities of each employee in the department. As an example, one of the respondents gives philanthropic perspective of togetherness when it comes to military activities especially between (Royal Air-Force-RAF and RSAF). As a matter of fact, Guest (1997) points out a clarification from Competency Model that a performance management system is ought to have a subset of performance standards which are actually customized in order to fit each job family; in this case, it defines the limits of responsibility of each employee in the organization. One main prerequisite of success is normally a good bureaucracy that tolerates liberty in exercising roles and responsibilities (Gilliland and Langdon, 1998). Perhaps managers in the organization (BAE Systems) are devoted for capacity building; “Yes definitely. There is always room for improvement with cost or efficiency.” Therefore, to make the system successful, they should pilot important responsibilities in the lower level of management and as well gaining support from the top-level management. Linking of various aspect in the field of management is one of the roles of a manager therefore he/she is ought to. Communication also is very important in order to be successful. People especially in organizations regard change as inevitable. But what kind of change are we talking? Here also a manger must communicate effectively to employees about any change that may impact their responsibility either directly or indirectly. It is the role of the line manager in charge of communication to ensure that any alteration that recounts performance management in the organization is made understood by all the employees in the department. d) Is there any challenge that may hinder performance management system of the organization? Perhaps yes. Legal challenge, for instance, prior notification of employees about the commencement of the rating cycle and the specific standards they (assessment team) are going to evaluate during the procedure. This gives time employees to document their achievements under defined roles and responsibilities granted to them (Guest, 1997). Actually this is a legal procedure whereby employees may be reluctant to give whatever they are supposed to give if at all they are got surprise without any prior notification. Therefore, this is seen as a challenge to the managers since they are superposed to be regularly updating employees on the current issues of the organization that not only pertains performance management but also any imminent matter that needs their concern as far as desired result is concerned. Generally, a line manager may be seen as a minor player in performance management system. However, this may not be the case at all. He/she have a big role of buying in the system from the top management and implementing using the required standards. Well, HRM of the organization may be liable to any outcome that regards performance of employees, but still ‘why?’ is a word to the manager in charge at the lower level of management. In conclusion, BAE System Company is strongly committed to ethical business behaviors right from the senior leadership to employees at the lower level of management. Clear policies and standards that encourage good performance have been set to improve the productivity of the organization. The establishment of Mid-level management team that is employee based has substantially maintained and builds a good culture of high performance standards and effective conflict resolutions. However, as far as the company exists in a dynamic world, there are still gaps to be focused on. Strategic Human Resource Management field has not been embraced by majority of the global organizations. But with the case of BAE System Company, most developments have been made so far in this field. Good performance and few cases of conflicts reflects how strong Human Resource Management of the organization is. Few areas especially that deals with cultural diversity are still the main challenges. Reference Abrahamson, E. (1996). Management Fashion. The Academy of Management Review, 21(1), 254-285. Astor, H. (2005). 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