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Public Service Electric and Gas - Essay Example

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The essay will represent organisational change in one of the public companies of New Jersey named Public Service Electric and Gas (PSE&G). Organisational change is the implementation of new thoughts and activities by a company. …
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Download file to see previous pages Organisational change is the implementation of new thoughts and activities by a company. Organisational change is important in the sense that it can increase the efficiency of employees by achieving the goals. There are numerous challenges for change in organisation culture. To make the change successful, there is need to focus on developing association with stakeholders and unions. Organisations need to commence appropriate change program for successful change (Sengupta & Bhattacharya, 2006). The essay will describe the change in safety culture of PSE&G. PSE&G had faced several challenges in order to administer changes in safety culture. It was a long changing process which resulted in success. Reason for Change The change in safety measures of PSE&G had started in the year 1999 by virtue of cultural change. The reason for the change is to ensure safety of employees of PSE&G. It has almost 6500 employees and 32 factories. PSE&G had encountered recordable accident rates and loss of working days because of safety. In the year 2005, according to the Occupational Safety and Health Administration (OSHA), the loss of working days had become 0.33 by the year 2007 (Simon & Cistaro, 2009). The following table shows the employees injury rate of PSE&G from 2001–2007: Source: (Simon & Cistaro, 2009). Organisational Design Issue The major design problem an organisation often confronts is the selection of horizontal differentiation and vertical differentiation which let organisation to manage the actions of employees for accomplishing the objectives. The following are major design issues that can be faced by an organisation: Source: (Jones & Mathew, 2008). Vertical Differentiation: Vertical differentiation is the method of forming the hierarchy of power and develops reporting connection to connect organisational job with organizational units. It helps to manage the actions and enhance the capability to develop a value of any organization through establishing the allocation of power (Jones & Mathew, 2008) Horizontal Differentiation: Horizontal differentiation helps an individual to be specialised and be more dynamic. However, this type of delineation hinders the communication between divisions or units and averts people to learn from one another. As a consequence of horizontal differentiation, people of different units create a propensity to see one’s job strictly from the perception of the time structure, objective and interpersonal course of other’s unit. When different jobs are viewed differently, communication becomes unsuccessful and coordination fails between units (Jones & Mathew, 2008) In cultural change, PSE&G had faced problem of matching the ‘Standardization and Mutual Adjustment’ issue. In every organisation there are certain regulations, SOPs (Standard Operating Procedures), traditional values and standards which specify how an employee can carry out the organisational task. In PSE&G, the employees were engaged in performing job according to their own rule and they tended to take risks. Besides, there were also communication issues which had occurred from vertical differentiation. Thus, there was need for better interaction between management and the union to resolve the differentiation problem in cultural change process (Jones & Mathew, 2008) Cultural Factors The apt organisational culture can result in better employee performance. Organisational cult ...Download file to see next pagesRead More
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