The New Changes in the Structure and Administration of the Business - Research Paper Example

 Introduction The management of large organizations is quite challenging. Some large organizations have more than 5000 employees. Managing such large number of employees is not a simple task. Effective strategies have to be put in place to enhance a good relationship among the employees and to enhance smooth running of the various departments of an organization. For effective performance of large organizations, smooth cooperation among the various human resource organs must be enhanced. The UMGUK has expanded to reach over twenty countries in the world. The big size of the company has resulted in many challenges for the human resource department. Bringing together the new combined the business is a real struggle for the managers especially restructuring the human resources department. HR issues faced by managers at UMGUK The merging of the three businesses in the UK has strained the managers’ efforts towards establishing an effective workforce body. With the new structure, some of the employees have to be retrenched since tasks have been redistributed. In addition, the number of departments have been reduced significantly. Before the merge, each business had an established structure of various departments and offices. In addition, the three businesses had varied categories of employees in the various established departments. However, after the merger the operations of the three business were brought together under one management. Some departments were merged, and others eliminated in the new system. Due to the reduced number of departments, a huge number of employees have been retrenched, and others given lower positions than the ones they held in their previous respective business settings. In this regard, it can be observed that the new structure of the human resource has led to the loss of jobs and decline in earnings for some employees. The new structure of the UMGUK requires employees to work together with an aim to boost performance. Adjusting to the new system is a challenging HR issue that the company faces. The employees of UMGUK are not used to the new system and, therefore, the company cannot realize the benefits of the new structure fully in the first phase of implementation. In this regard, the HR department is tasked with the responsibility of ensuring that the employees get acquainted with the new system with the shortest time possible. In essence, the current structure of the company is likely to confuse employees for a while before they become used to it. The process of making the entire workforce adjust to the new system is a challenging HR issue. Addressing such a problem requires the commitment of all organs of the organization. In essence, unity within an organization facilitates effective adoption of changes and timely implementation of policies. In this regard, the company should establish strategies that promote unity among the various departments and employees. It is usually necessary to ensure that all organs of the company operate towards the same direction. Deviation from the main objective leads to misuse and misallocation of resources. The full implementation of the new structure will be very costly to UMGUK. The merger requires a different organizational structure and office partitioning. In essence, the company has to lay a completely new infrastructure to accommodate the new changes. Establishing a new infrastructure is an expensive undertaking that requires a massive commitment of resources and time. Due to the expensive nature of establishing the new infrastructure the HR might experience financial challenges. Actually, the company has to balance between employees’ welfare and the expansion strategy it is undertaking. In this regard, the HR department has a challenging task of sourcing funds to cater for employees’ salaries and other remunerations. Apparently, meeting the cost of labor and restructuring expenses is a challenging responsibility for UMGUK. The available number of employees cannot fill all the post available in the company. In this case, the employees are likely to face the challenge of being overworked. Overworking of employees affects the quality of output. Production of low-quality products or services to the customers might lead to loss of trust by customers and, therefore, affect the number of sales. Customers determine the company’s success of failure (Cant, 2006). When consumers are not certain with the products offered by a company, they may opt to stop buying the product or to start buying the product from the company’s competitors. Loss of customers means a loss to the company and affects the market value of a company’s products or services. By overworking employees, UMGUK risks losing customers to competitors due to poor product quality. As a result, the company’s profit margin is likely to shrink in the long run due to reduced sales and the diminished value of the products in the market. Ways of enhancing employees’ engagement in boosting UMGUK’s operations Employees are the most valuable components in any organization. The performance of employees is usually influenced by the motivation strategies employed by an organization. In this regard, UMGUK should establish attractive motivation opportunities to its employees. Research has shown that companies that perform exceptionally in the world have established attractive motivation avenues for their employees. Some of the motivation strategies that UMGUK should employ include; promoting employees, awarding employees, periodic salary increment, taking employees for trips, and offering considerate holiday packages. The UMGUK should establish policies that encourage the promotion of employees to high ranks. Promotion of employees has proven to be an effective motivation strategy. When the employees work with the feeling that they can get promoted in the near future, they tend to work more effectively then when there are no hopes. Actually, people will usually work hard to be promoted to high ranks of the company. High ranks are associated with many privileges and attractive salary. For this reason, employees will always work hard to be awarded a promotion. In this regard, UMGUK should utilize promotion as a benefits maximization strategy. The management body of UMGUK should institute a program that facilitates periodic salary increment for employees who perform well in the various departments. Increasing employees’ salaries based on their performance will induce intrinsic motivation and improve the total output. Every employee dreams of a better pay and most of them can do anything for a salary increment. Therefore, UMGUK should initiate a strategy that evaluates employee performance to facilitate salary increment for those who show outstanding performance. In essence, the company should consider developing an effective salary increment mechanism that encourages employees to work hand and have loyalty to the company. UMGUK should recognize the fact that employees require free time for leisure and refreshment. The employees should not be overworked or made to work in unconducive environment. In essence, employees should be allowed to spend sometimes outside the workplace environment for fun and socialization. When employees are allowed some time outside the company’s environment, they get a chance to discuss their personal issues and how they can improve performance in their respective places of work. In addition, out of work exposure gives employees an opportunity to refresh and break the workplace boredom. Essentially, allowing employees some free time rejuvenates their working capacity and motivates them to work harder in anticipation of having another free time. UMGUK should offer fully paid holiday tours for employees. Touring new places enlightens employees mind and promotes their critical thinking capacity (Human Kinetics, 2013). In addition, the employees get a chance to learn from the gifts of nature in other environments. Research has shown that trips aid in reducing job stress and motivating workers to work extra hard. Paid holidays give employees an opportunity to party and have fun. In this regard, the employees’ motivation for work is boosted thereby leading to better performance. Essentially, organizations that organize paid tours for their employees have affirmed that such undertakings are valuable to a company’s progress. The company should evaluate the available employee motivation opportunities and implement the most favorable ones. There exist a variety of employee motivation alternatives, but they are not applicable to all organizations. In this regard, UMGUK should evaluate the nature of its workforce to other motivation alternatives that fit its employees. Organizational culture varies from one company to another and, therefore, UMGUK should not duplicate employee motivation approaches used by other companies. Instead, UMGUK should device unique approaches that supersede those of competitors in order to avoid losing employees to them. Experienced employees are crucial assets to a company and losing them to competitors can be very costly. In this regard, UMGUK should motivate its employees in order to maintain and retain them for long. Conclusion Big business organizations are faced with numerous challenges, most of which have a financial link. Restructuring the business organization is an expensive undertaking that may drain a company’s resources. The UMGUK has established a new structure for its business with an aim of promoting efficiency. UMGUK faces numerous challenges for implementing the new changes in the structure and administration of the business. UMGUK should establish effective employee motivation strategies to promote quality of output. Some of the motivation approaches the company can employ include promotion of employees and salary increment. Organizations should always establish effective structures to avoid inconveniences and confusion of employees. Reference list: Cant, C. (2006). Marketing Management. Cape Town, South Africa: Juta. Human Kinetics. (2013). Introduction to recreation and leisure. Human Kinetics: Champaign, IL. Read More