The International Committee of the Red Cross - Case Study Example

Case Analysis Case Analysis The International Committee of the Red Cross Summary The case study demonstrates how the organization had to alter its management system, in order to improve the management system in the organization. ICRC originally utilized a poor system of management, which meant that the employees did not develop skills that would allow them to gain promotion or become managers in the organization. The case study demonstrates how the ICRC established a strategy that promoted employees into management and ensure that there is continuity of the values and tradition of the organization’s method of management (Forsythe, 2005). The restructuring provided a new dimension of management in ICRC, which would ensure that employees are encouraged to work for the company. The case study illustrates the importance of continuity in an organization and establishing a system of promotion as a method of motivating employees. Initial Problems in Management Prior to 2007, the International Committee of the Red Cross (ICRC) utilized a poor structure of management, which did not foster any form of development. The problem stemmed from the ideology of employees working in the same group for less than a year. From the on-set, it was evident that the company’s strategy was flawed, because employees were often re-assigned or placed in new teams on regular intervals, which limited their ability to develop important skills relevant to the ideologies of the organization (Deresky, 2008). With the employees constantly working under new managers, they (employees) have to adapt to the new management styles, which limited their learning ability. New management implies that they must change their method of operation, to suite their new managers, and this is not an easy task. (Favez, 1999) Even though the ideology indicates that the employees should increase their knowledge on management, it limits their ability to integrate their experiences to develop a solid managerial skill-set. The fact that the employees were not fixated on one location or with one group, it meant that they were unable to develop a long-term relationship with co-workers, which can limit individual development. As individuals, people are often limited to what they know, and are unable to notice problems without help of a co-worker. The latter can identify a problem of a person, give advice and the person can change their behavior. This illustrates development using a co-worker. However, constantly changing groups will limit the aspect of a person being able to receive tips or advice on how they can change certain elements of how they operate. This was the main problem that demonstrated the poor management strategy implemented by the ICRC prior to 2007. (Merson, 2006) Another problem stemmed from the aspect of bias in the organization. ICRC was originally considered a ‘Swiss Company’, hence their focus related to having Swiss individuals in high positions in the organization, regardless of qualification. This proved to be a hindrance for several employees, who were eager to move on if they found promotion close to impossible. The bias influenced the development of the organization, because on Swiss individuals had a chance of becoming managers in the company. Another problem was ICRC was gender bias. ICRC focused on promoting male individuals to higher positions in the organizations, the Swiss males were the only individuals that would last for a long time in the field before gaining promotion in the firm, and it limited the women’s ability to develop any adequate experience in the field. The main management strategy focused on Swiss males, and it pushed other employees to work short-term for the ICRC. (Forsythe, 2005) The Restructure of Management In 2007, ICRC developed a strategic plan, which was intended to last the following three years. The organization focused on improving the Human Resource Management (HRM) to employ quality managers. ICRC concentrated on three aspects: accountability, multidiscipline, and efficiency. The problem that arose from the three principles centered on creating standards to be utilized in assessing potential managers, as well as employee performance (Deresky, 2008). The solution arose from establishing the standards of performance with the priorities and requirements of the ICRC. HRM needed to consider the element of the growth in diversity in the organization as various individuals from different nationalities, as the ICRC began to deal with several countries. The conclusion centered on using the ICRC culture as the standard assessment tool, which would overlook the aspect of diversity. Therefore, getting employees to embrace the ICRC culture would narrow the factor of diversity in the company. The Principles that Influence ICRC In reference to the management of the ICRC, it is focused on applying seven important principals: Humanity, Neutrality, Impartiality, Independence, Voluntary Service, Unity, and Universality (Favez, 1999). The structure of the organization is based on these seven pillars, which influence the company’s mode of operation. In the element of Humanity, ICRC is intent on helping or aiding individuals, without any discrimination, as an ideology of alleviating human suffering. Its purpose in the firm is to ensure the safety of human life and health, and foster respect for human beings. ICRC focuses on promoting co-operation, friendship, and peace among communities. The principal of neutrality relates to the ICRC maintaining a neutral stance on any conflict or disagreement between two or more parties. Therefore, management in ICRC is designed to administer strategies and operate in accordance to demonstrating parity to any aid or assistance, to whoever will require a helping hand from the organization (Merson, 2006). The latter is considered as the party that will ‘sit on the fence’ in relation to a matter of conflict. It coincides with the ICRC’s principal of humanity. Impartiality emphasizes the element of non-discrimination, regardless of religious beliefs, political opinion, class, nationality, or race. ICRC must strive to relieve any form of suffering of people, with the factor of need as the only guide in the level of assistance. Urgent cases must be given priority, regardless of the situation. The element of management must incorporate the principals in its mode of operation to meet one of the objectives of the organization. Independence refers to legal nature of the organization. It implies that the ICRC operates in autonomy to the laws that govern countries. ICRC must operate according to its own laws in order to administer its services based on the needs of individuals. Management must control the operations of the firm in relation to the laws of the organization, and not the laws of a particular region or nation. The element of autonomy allows the organization to tend to individuals who require assistance regardless of the situation (Bugnion, 2003). ICRC is a voluntary company, which focuses on giving aid without the focus on gaining any form of benefit or revenue. It is the reason why the organization labels its employees as volunteers, because they have offered their services to the ICRC, with the aim of benefiting individuals who require help or assistance. Although employees or volunteers may receive some form of payment for their devotion to the ICRC. Unity refers to ICRC recognized as a solitary company. There can only be a single society or community under the ICRC. It must carry out humanitarianism in relation to the territory and not discriminate on a section of the territory. The must community must coincide with the organization’s ideology or principal of impartiality. The final principal relates to equality of societies according to ICRC. Universality implies that the societies share equal duties and responsibilities in helping each other. The concept applies on a global scale, and there is inferior or superior complex in relation to the operation of the ICRC. The principal incorporates the aspects of Unity and Impartiality when dealing with global matters associated with providing aid. (Bugnion, 2003) The principals embraced by the ICRC illustrates the companys strive to ensure adherence the code of ethics and follow their social responsibilities. Their emphasis of impartiality and universality highlight their focus on developing a business model with an image that will become acceptable globally (Forsythe, 2005). The organization must follow their principals to the letter, because if they have a responsibility to abide by their principals, and they are not tied by the laws of a country. Funding In terms of operation, ICRC is funded by various groups, with majority of the finding from Governments. The latter forms 80% of the total funding that the organization receives, the European commission contributes 11%, and national societies provide 5% and private & public companies provide 4%. The European commission has increased its funding for the ICRC between 20005-08, increasing from 9% to 11% during the period. The same applies to the government funding, increasing from 72% to 80%. National societies have decreased in funding, dropping from 13% to 4%. The main contributor is the United States’ government, contributing over 237 million Swiss Francs in 2008. ICRC Structure As a measure of implementing parity in the organization, the ICRC implements a business structure that ensures that members from majority of the world’s countries are directly integrated as part of the individuals that influence the decisions in the ICRC. Eighty delegations from around the world are part of the organization, and deal directly with administering assistance and aid in relation to their specialized region. As a measure of autonomy, ICRC has a structure that mimics the structure utilized in governments. ICRC contains an assembly, president, and commissions, which are the main bodies of authority in the ICRC. The latter is subdivided into various bodies such as the HRM, Communication, Operations, Resource and Operational Support, and International Law within the organization department, which influence the functions of the ICRC. (Favez, 1999) Each department is subdivided into specialized components as a measure of increasing efficiency in the organization. The delegations fall under the Operations department. The latter is divided into regions in order to cater to more than one region at any given time in relation to the level of need. The ICRC structure is a model that promotes efficiency in the organization, as well as reduces the aspect of bureaucracy (slow decision-making) in administering aid. Conclusion In conclusion, the case study demonstrates the evolution and development of the ICRC. It reveals the problems that limited the operation of the organization, and how the firm managed to re-structure as a measure of improving its method of operation. The re-structuring has fostered growth and development, and provided an effective measure of management on each of the elements of the ICRC. The company’s principals have influenced and improved its social responsibility and code of ethics. They (principals) have provided a backbone that supports the organization, and it has increased the firm’s image in relation non-discrimination. The ICRC has evolved into the leading aid donor on a global scale. References: Deresky, H. (2008). International management: managing across borders and cultures : text and cases (6th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Forsythe, D. P. (2005). The Humanitarians: The International Committee of the Red Cross. Cambridge University Press, Cambridge. Favez, J. (1999). The Red Cross and the Holocaust. Cambridge, UK: Cambridge University Press, London. Merson, M. H, Black. R. E, & Mills. A. J. (2006). International Public Health: Diseases, Programs, Systems, and Policies (2nd Ed.). Boston: Jones and Barlett. Bugnion, F. (2003). The International Committee of the Red Cross and the protection of war victims. ICRC & Macmillan, Geneva. Read More