Organizational development - Assignment Example

Organizational development-Intervention proposal Introduction: background XYZ Company deals with textile design. It has 2,000 employees. The company designs and makes clothes for various customers in Europe, Asia and North America. The company supply its products to different countries specifically designed according to preferences and demand of the market. Last year, XYZ ventured into African market with various customers demanding various designs that fits African cultures. In light with this, the company saw the need for the establishment of new outlets in three African countries which have an interest in using XYZ products. The human resource department resolved that the company has to transfer some employees from the U.S offices to the newly established offices in Africa. However, the move to diversify market to the African market was as a result of the downward trend in sales from the already existing markets. When employees were notified about the intentions to be transferred to the new market, over 100 employees resigned their positions as employees of EYZ Company. However, the situation deteriorated with more resignation letters flowing into the human resource office daily. At first, the human resource manager thought that the employees were afraid of being transferred to work in the new market. As some investigations were conducted, it was noticed that the employees left the company because of bad working conditions. Amazingly, those that had left were hired by XYZ’s main competitor whose working conditions were more enticing than those of XYZ. Intentions to open new offices in the new market were temporarily suspended until some organizational development was realized in the existing market. Statement of the problem Since its establishment in 2000, XYZ has been leading in textile design. At first, XYZ operated in the U.S market only. Its marketing strategies and employee relations were perfect, something that led to the establishment of new outlets in the European market. However, since the retirement of its human resource manager in 2008, the company performance has been deteriorating year after year. It has been argued that employee wellness and reward system has been ignored by the new management since 2008. Employees have not been proactive as there before, thus poor performance of the company. It is argued that employees are one of the best capitals an organization can ever have (Jex 245). Therefore, their wellness is vital as it help retain and motivate them. Once employees are motivated, they tend to perform their duties effectively. Due to this fact, XYZ’s profit margins have gone down to the extent of failing to take care of its liabilities including payment of its employees. This is what prompted the management to think of opening up new markets in the African market. The presumption was that there was a decrease in demand and stiff competition of their products in the existing markets. However, it is believed that a company is able to have a competitive advantage in markets with stiff competition only after employing all necessary measures including employee wellness. It is apparent that if XYZ fails to intervene on the matter, it is highly unlikely to remain in the market. In the short term intervention, it would be essential for XYZ to find ways of retaining the current employees by addressing their grievances at hand. This way, it is highly likely that the company will be able to uphold its present performance without going on a downward trend. Nevertheless, it is equally important to employ long-term measures, which would enable the company improve and survive the highly completive market. Objectives of intervention The main objective of this intervention is to use a reward systems intervention to help XYZ improve its performance Specific objectives To propose appropriate re-structuring of the XYZ organization To propose reward systems to XYZ that would help retain and motivate its employees Scope of intervention Since XYZ company issues relate to employee’s motivation, it would be necessary to use human resource management intervention in order to curb the menace. Sustainable growth is a concept that every organization desires when entering the market, and probably the most challenging one. However, many organizations tend to focus on financial gains without considering factors that lead to such financial gains, which are mainly a reflection of efforts put by various departments of the organization. In general, in order for a firm to thrive and make it in a highly competitive market, it is necessary to be competitive in several areas such as physical resources, marketing capability, financial resources, and most importantly, human resource (Cummings and Worley 150). In this regard, organization development is essential not only to organizations that are stagnant or unable to grow, but also to those that are on an upward trend in order to maintain the pace. This is applicable to improving both external and internal environments in order to attain high performance and quality. In the case of XYZ, although the issue at hand relates to issues affecting the human resource department, it is apparent that this affects the whole organization in several aspects. This is arguably true because, for example, even though XYZ has the best marketing strategies, but fails to reward its employees accordingly, the manpower required to execute and implement these strategies lacks morale to do so. In this regard, it is imperative to addresses human resource department issues effectively in order to balance efficiency of other departments and abilities. For this intervention, to begin with, it is necessary to mention that today, what used to be called pay is termed as reward. This refers to monetary, non-monetary, and psychological rewards that an organization provides to its employees (Jex 243). In light with this, this intervention deem it right to recommend several reward systems to XYZ. Firstly, XYZ should ensure that its employees receive adequate extrinsic rewards to its employees. These should cover the basic needs of income that every employee deserves. It is obvious that employees look forward to having a job that would enable them comfortably pay their bills. This is what is termed as a feeling of stability and consistency or secure job (Jex 243). In fact, this makes employees have a feeling that their workplace values their skills. In addition, this form of reward should come first before other forms of reward. At the top, of the priority list of job seekers is the ability of the job they aspire to get to competitively reward their skills. XYZ seems to have exceptionally competent and prolific workforce since, during its initial years it performed well. Extrinsic rewards will motivate XYZ’s employees and create loyalty towards the company (Jex 243). XYZ also require using intrinsic rewards, which will act as job satisfaction to its employees. This will create a feeling of completing challenges competently and improve social interaction arising from the workplace. This form of reward makes employees feel appreciated for their dedication to uplift their company (Jex 250). Building intrinsic motivation is largely the responsibility of the management. Therefore, managers need to realize the importance of this form of reward by incorporating training on intrinsic motivation into management development programs. Such a reward is believed not only to attract employees but also to retain them. XYZ should also note that failure to offer such rewards or offering cheap rewards creates a negative picture to the existing and also potential employees and in most cases, nobody is likely to end up working in such an organization. It would be necessary for XYZ to initiate reward systems that strengthen the psychological contact of the employees. For example, a team bonus of some kind would make employees perceive that the company is fair in rewarding the work they do (Jex 252). On the same note, some wellness programs would work for XYZ. This involves rewards that come in indirect pay to the employees, such as health and insurance covers, subsidized entertainment, healthcare, retirement and pension plans among many others. For example, some jobs are very challenging and may create some psychological complications to the employees. In this regard, an employee working for a company that provides healthcare programs would find it worth continuing to work in that organization. Some of the reasons that would make the employee feel comfortable working in such an organization involve services such as counseling services and other forms of health benefits accrued form healthcare. In fact, according to motivation theory, even with challenging but achievable goals, employees will tend to perform better when motivated with a clear target and goal (Jex 246). In order to effectively ensure that XYZ realizes organizational development, it is the view of this intervention proposal that there is a need to restructure the management in order to facilitate the development. This is arguably true because in the initial stages of XYZ when the human resource department was headed by the former manager, the company performance was commendable until when a new human resource manager assumed office. However, apart from these changes, it would be necessary for the company to resort to organizational development training programs in order to keep the fire burning. Survey results Executive summary It is the view of this intervention proposal that XYZ needs to fully implement items proposed in this proposal in order to realize organizational development. Firstly according to survey results, XYZ doe not honor employee wellness and reward systems. A bigger percentage of participants were of this opinion. It is also evident that failure by XYZ to implement reward systems, many employees quitted job. However, as many participants indicated; if the company implements these rewards, a majority of the employees are willing to continue working for XYZ. Lastly, it is the view of this intervention proposal that apart from the company failure to implement reward systems, the issue of management need to be addressed as well. As 70% indicated that they needed implementation of the reward systems, 10 % were of the opinion that there is a need for change of management. Results presentation According to deliberation of many employees that participated in the survey, it is apparent that XYZ does not honor employee’s wellness and rewards systems. When the employees were asked about their perception of the company’s employee wellness and reward systems, a bigger percentage indicated that the company did not have adequate employee’s wellness or reward system. The graph below represents their responses. When the employees were asked about whether they would continue working for the company if these systems were implemented, 65% percent indicated that they would continue working for the company, while 35% failed to comment. The graph below represents their responses. Lastly, when the employees were asked what they would like to be done to motivate them, 70% said they would prefer implementation of reward systems, 20% said they needed the management changed, and 10% failed to comment. The graph below represents their responses. Change of scope It is in the best interest of both XYZ and consultant to note that no party is allowed to alter this cope in any way without the due process after it has been accepted. XYZ may deem it right to adjust some aspects of the scope to suit their goals and objectives. In this regard, it is always advisable that XYZ request for the revisit of the scope, which should be accompanied by any appropriate fee therein. However, the importance of formally addressing the issue of change of the scope is that it would help the consultant and the company to jointly look into issues of concern, and see if readdressing them would be suitable. In some instances, organizations may feel the change of scope would be favorable in some ways, but in the real sense, they end up worsening the condition. Nevertheless, some proposed items in the scope that may not have significant effects may be adjusted upon critical articulation of their level of contribution to organizational development. Therefore, any such intentions by XYZ need to be formally communicated to the consultant. It is also worth noting that the consultant will not be liable for any consequences arising as a result of alteration of the scope by XYZ. Evaluation/Deliverables/Follow-up Having critically accessed and analyzed the current situation in XYZ, it is in the best knowledge of this proposal that the proposed scope of intervention is accurate and effective. Deliberations raised by the employees symbolically guided the scope in coming up with the above mentioned intervention strategies. In the objectives of this intervention, the scope intended to help XYZ improve its performance through the use of reward systems. This being the main objective of the intervention, participants of the study, who in this case included employees of XYZ, and who in this case are the major subjects of contention, aired their views through which some conclusions were drawn. An evaluation of the management structure of the company was done in relation to survey carried out. Supportive deliberations were drawn from various management records. However, these and past vast knowledge and experience of the consultant was incorporated to come up with the above proposed items. Apart from the current information obtained form the survey, it would be necessary to note that the consultant will endeavor to make some follow-up activities in the future to take note of the progress of the intervention. Consultation between the consultant and XYZ management and its employees will be prioritized. This will not only provide an overview of how the company is progressing, but also help the consultant to propose new changes regarding previous proposed items that seem not to work as expected. Such actions also help the consultant encourage the company to continue implementing items proposed in the scope. In fact, it is apparent that companies may be failing in several areas, but has perception that maybe single or two aspects of operations could be the cause while in the real sense; several aspects of operations could be the reason for underperforming. In this regard, follow-ups will enable the consultant identify any other factors that could have led to underperformance of the company. Responsibilities XYZ responsibilities XYZ Company will be expected to cooperate with the consultant by providing access to managers in a timely manner as stipulated in the scope of this agreement. XYZ Company will provide the consultant access to documents necessary to facilitate the scope of intervention. This may include documents like last employee survey and any other document related to performance management. XYZ Company will provide a working space for the consultant. This may include phone, copy machines, fax, and printer. XYZ Company will implement intervention items proposed in the scope. Consultant responsibilities The consultant will avail a weekly report HR manager indication the progress of the above stated objectives. The consultant will provide all billing information weekly to enable the client track activities and expenses. The consultant will make follow-up after submission of the report to ensure effective implementation of the scope of intervention. Works cited: Cummings, Thomas and Worley, Christopher. Organization development & change. Australia; Mason, OH: South-Western/Cengage Learning, 2009. Print. Jex, Steve. Organizational psychology: a scientist-practitioner approach. New York [u.a.]: Wiley, 2002. Print. Appendix: Questionnaire to the XYZ employees 1. What is your opinion on XYZ employee wellness and reward systems? a. The company has adequate employee wellness and reward systems b. The company has inadequate employee wellness and reward systems c. No comment 2. Would you continue working for XYZ if these systems were implemented? a. Yes b. No c. Not sure 3. In what ways would you like to be motivated? a. Implementation of reward systems b. Change of management c. No comment Read More