Human Resource Management - Case Study Example

Organizational Diagnosis: Steinway Case Study Organizational Diagnosis: Steinway Case Study Introduction To improvean organization’s effectiveness, the management could carry out organizational diagnosis. Leadershipsphere (2008) defines organizational diagnosis as the process of assessing the organization’s present level of functioning in order to design suitable change interventions. In the organizational diagnosis of Steinway, an organization involved in the manufacture and supply of pianos, the business environment has been by carrying out a SWOT analysis.

Moreover, the diagnosis has assessed impacts of change of technology to ensure the effectiveness of the organization. After an organizational diagnosis; interventions are developed. The diagnosis has to come up with interventions that will not be met by resistance from employees and most be attainable given the resources available in the organization.Managing the Supply ChainIn addition to the intervention proposed in the case study; I propose that Steinway adopts a strategy to streamline its supply chain to increase its accessibility in the international market.

Although the organization operates on an international scale; the diagnosis only proposed that the organization must be inclined politically to meet different governmental and country requirements. Steinway is faced with many competitors in America and could extend its operations by taking advantage of the emerging markets in Asia. Furthermore, supply chain helps to offer better customer service and therefore the organization can position itself to compete effectively with its competitors. A well designed supply chain is critical for organizational effectiveness.

Supply chain would help the organization reach out to its suppliers of lumber and the customers.To streamline the supply chain, Steinway need to harmonize and standardize the operations in all its retail outlets in New York, New Jersey, London, Hamburg, Munich and Berlin. Further there should be coordination among these centers to ensure that the company’s products are accessed by the customers according to the demand. According to Richen and Steinhorst (2005), process standardization and harmonization can be achieved by setting a central institution to control business operations.

In addition, use of information system can be used to streamline the supply chain thereby ensuring organizational effectiveness. The Steinway can develop a single system where customers can make their orders and the central process coordinating the business will arrange for the delivery of the products. This intervention is based on the hypothesis that a more responsive supply chain is able to guarantee better customer service therefore ensuring the competitiveness of the organization.Staff RetentionThe other intervention recommended to Steinway from the diagnosis is implementation of strategies that will ensure retention of staff.

To retain workers, it is important to ensure employee satisfaction. Employee satisfaction is influenced by various factors including the reward they receive and the type of communication as explained by (Gregory, 2011). This intervention is informed by the fact that experienced employees are the greatest asset for any organization. In Steinway, the experienced employees are critical since they understand the process piano production.From the diagnosis, 330 employees in the New York plant work in the production department.

Seventy-five percent of the workers are paid on straight-time basis, while the artisans are paid on piece rates. However, keeping workers by Steinway is becoming difficult as well-trained craftspeople are being coveted by their competitors while others could set up their own businesses to repair old Steinway pianos. To ensure employee retention, Steinway should review its reward system to ensure that it appeals the employees to stick within the organization. In addition, Steinway should reconsider the pay system for the artisans since they are paid on piece rates; which may disadvantage them if one is not to work for a certain period.

These workers can therefore be paid at a fixed rate and providing termination benefits will ensure that remain in the organization. Employee satisfaction is also influenced by the type of communication with the organization and therefore the management must foster open communication. This will help employees voice any feelings that they have about the work environment. In conclusion, organizational diagnosis is critical in developing interventions that will enhance operational effectiveness. Steinway should streamline its supply chain and adopt strategies to ensure employee retention.

ReferenceGregory, K. (2011). The importance of employee satisfaction. Retrieved 17th February, 2012 from http://www.neumann.edu/academics/divisions/business/journal/Review2011/Gregory.pdf Leadershipsphere (2008). Organizational diagnostic models; A review & Synthesis. Retrieved 17th February, 2012 from < http://www.leadersphere.com/img/OrgmodelsR2009.pdf > Richen, A and Steinhorst, A (2005). Standardization or harmonization? You need them both. Retrieved 17th February, 2012 from < http://www.bptrends.com/publicationfiles/11-05-ART-StandardizationorHarmonizationv-RickenSteinhorst.pdf >