Avon Products - Transparency in the Organization - Case Study Example

? Avon products Question one Avon is a company that deals with perfume products. The company is 122 years old with the founder beingMcConnel. Since the company was formed, it registered a positive growth in its sales to become one of the leading companies in direct selling of cosmetics, fragrances and skin care products. By 2005, the company was worth above $8billion with cumulative annual growth rate of above 10 percent per year. The company operates in more than forty countries with much of the returns being accrued from outside United States (Effron, 2009). However in 2006, performance of the Company saw a tremendous decline. The company faced a challenge of flattening revenues and even declining operating income. There were many factors that led to this decline, one of the issues was that the company had grown at a faster proportion than the infrastructure and talent could hold. This called for an immediate intervention to save the company from collapsing. The current CEO who was known as Jung and the executive team launched a basic restructuring of the organization in starting of 2006 (Effron, 2009). Question two Leaning and transparency model was one that was targeted to bring change in the organization. For an organization to bring in change, one of the ways to ensure that change does not impact negatively to the organization is through training of employees. By doing so, employees are able to learn new tactics to use in order to integrate with the new change. In addition, employees are able to acquire skills to enable them to cope with the new requirements of the change. The company investment in executive talent is one way of implementing learning model. The company planned to refurnish new talents as a way of ensuring that the company keeps up with the latest growth of the company. The employee’s new knowledge was also to be used as a model of ensuring that they are able to sustain the current growth of the company. The talent search by the company is one of the components of learning. In order to initiate learning in an organization, the top management must identify the talents that exist in the organization in order to categorize them according to the company’s interest. This would help the company categorize their training according to different talents that its employees hold (Harris, & Hartman 2001). The company aim to transform the organization through establishing bodies that would oversee transparency process is another example that assisted me to identify the model. The company aim of changing the top management behavior through teaching them on how to maintain a good image of the company is an aspect that is in learning and transformation model. The company also went ahead to recognize every personnel behavior as critical to the overall success of the business. These transformations were supported by performance reviews that were aimed at keeping an eye on the individual performance (Harris, & Hartman 2001). Question three One of the evaluation information that was obtained is that there is a need to create an efficient communication channel which will ensure that organizations processes are carried out in an efficient manner (Zofi, (2011). Communication plays a great role in tackling problems that might affect the organization. Efficient communication also ensures that there is a good relationship between leaders and their subordinates. In addition, communication plays a great role in enabling the organization to solve any issue that might affect the organization performance. This evaluation problem was to ensure that poor communication was eradicated and leaders implement policies that would enable the top management and low ranked employees to communicate frequently an aspect that would positively impact on the performance of the employees. Lastly communication would enable leaders to assess the talent of their employees. This is an important move in ensuring that categorization of talents in the organization is done appropriately (Harris, & Hartman 2001). Second, evaluation collected information concerning the importance of team work in the organization. Team work plays a major role in creating harmony in the organization. The information that was collected persuaded leaders to uphold the spirit of teamwork. It proposed that leaders should be role models to their employees in encouraging them to work as a team. Team work plays an important role in helping the organization solve challenges that might face the organization as a whole rather than in individual level. This helps in coming up with a variety of ideas which make it easy to solve the problem efficiently (Davis, 2007). Third, information that was collected from the evaluation is that there is the need to manage performance in the organization. Poor management of the company performance is one of the main contributors that led to a decline to overall performance of the company. Company increased performance is to be accompanied by changes in policies in order to cater for the necessary changes. As a result, the information proposed frequent review of company’s policies in order to give room to any changes that would be necessary for the company at large. Performance management was also to be accompanied by frequent evaluation of individual employees. This is to determine employee performance and to understand any changes that might be required in order to maximize the returns accrued from an employee (Bacal, 2011). Lastly, the information also recognized the need for transparency in the organization. Transparency plays a great role in creating a positive image of the organization. The information agitated for descent behaviors by all stakeholders in the organization in order to retain a good reputation in the market (Zofi, (2011). One of the benefits of upholding this move is that it would create customer loyalty towards its products an aspect that increases the size of the target market. Question 4 The proposed changes are going to have an immediate effect to the sales of the company. When the company upholds transparency it will be able to attract more investors to invest in the company. This will play a great role in increasing the company’s capital an aspect that will improve its competitiveness in the local and global market. The company will also be able to diversify its operation to other parts of the world therefore, increasing its revenue. This is because financial superiority from increased investment will enable the company to penetrate the market, segment it and position the products in the minds of the customers (Zofi, (2011). Once the employees are evaluated, they are expected to work harder in order to retain a good reputation which is mainly used in rewarding the most hardworking employees. As a result, the company will record increased levels of production, which will impact positively in the rate of returns. The performance appraisal system will also enable human resource department to be transparent as it is carrying its motivational role. Some of these include rewarding and promoting of hardworking employees. Transparency will increase the motive of the employees to work harder an aspect that will increase the overall production of the company (Bacal, 2011). Changing working system from individual to teamwork will enable the company to face challenges that might face the company. This will be important as it will enable the business to operate in a competitive environment. In addition, more innovative ideas are to be given out by the company’s employees (Davis, 2007). In case, such a move does not succeed it will be important to use reward system as a method of attracting more employees to come up with new ideas that will keep the organization to be up-to-date. References Bacal, R. (2011). Performance Management 2/E. McGraw-Hill Professional. Davis, T. (2007). Talent Assessment: A New Strategy for Talent Management. Gower Publishing Ltd: Effron, M. (2009). Avon Products, Inc.. New York: John Wiley $ Sons. Harris, O. J., & Hartman, S. J. (2001). Organizational behavior. Routlege. Zofi, Y. (2011). A Manager's Guide to Virtual teams. AMACOM Div American Mgmt Assn. Read More