Organizational Supervisory Control - Case Study Example

Organizational Control Introduction Organizations require effective control systems that take appropriate actions over operations in order to manage complex tasks and make employer –manager and manager-subordinates relationships valuable. The natures of these control systems are different in every organization, but they play a vital role in directing performances, regulating and improving behaviours in an ethical manner. Control is exercised over employees and management by planning beforehand through established standards of performance and then monitoring and comparing the performances against the main target to generate the actual level of performance. Control function may seem critical at times when there is miscommunication between the employer and the management/ employees and no adequate actions are taken to overcome these barriers[Sit10]. In order to understand controls systems, the following cases from the organizations are critically studied in respect to the resisting response of the employees. Case Study 1 Siemens was indicted of taking bribery in the year 2006 because of mismanagement and negligence of workplace ethics. The company revamped their entire management system through effective control system. The scandal associated with the corruption charges completely battered the company’s reputation and as a result the company initiated a system that could manage the working of the employees. They used preventative scheme and methodologies that could detect unethical practices that were pertaining in the organizations[DIE12]. Even though, an organization like Siemens is well established, multinational organization but it is seen that sometimes organizations fail to get compliance from their employees and as a result, they exploit these resources for their own personal gain. For this purpose, it is necessary to instil effective control systems that promise serious revelations to the working processes taking place in the organization[Sit10]. Organizations can implement control through scrutiny and exploration within the operations to ensure compliance. Siemens carried out internal investigation to find out the resisting forces and this approach was further met with criticism by most of the employees. The exercise by Siemens led to the departures of many senior officials as CEO and the chairman. However, this control strategy can be claimed successful because Siemens were able to find out the reasons why employees were compelled into taking bribes. Most importantly, everyone was amazed that how Siemens had acted unfavourably before, having in effective control systems to catch such organized white-collar crime[DIE12]. Later the same year, the control strategy that was adopted by Siemens was focused on executing strict rules in the work place and compliance that was closely monitored. Moreover, there were many constraints put on the employees on certain operating procedures. They initiated “Global Compliance Program” with a system that had three main functions namely preventing, detecting and responding. In this regard, Siemens aggressively hired about 500 full times compliance employees led by an Interpol officer that had the responsibility of exercising control over the operations and other departments, carrying out investigations and finding out of there was any distrusting conduct present in the organization. Initially this action was met with resentment but employees were well aware of the fact that the company’s image was at stake. The company engaged the employees through communication and stressed on its significance to get a positive implication of the program[DIE12]. Organizations need to maintain good relationships with employees so that they cooperate with them. They also require boosting their confidence level so that they take responsibility of the actions. These aspects are an important part of control system and Siemens acted on the same ground to exercise control over the employees. However, there are times when employees may not always feel that the organizational objective or policy is important and sometimes the organizational objective may also contradict with the employee’s personal preferences. As a result, they may not follow a certain principle. Hence, while determining an effective control system, organizations need to be supportive to their employees. Siemens played a vital role in aligning employee and supplier’s connection and intervention strategies that had the aim of shaping organizational culture, improving their integrity, treating them with fairness and employee engagement. These methodologies used by the company helped them recoup their standing position in the market[Sin88]. Analysis After examining the case study of Siemens, it can be deduced that initially their control system was ineffective which led the management and the employees to take undue advantage of this fact. The unethical behaviour of the employees was very costly for the company’s reputation. The courses of action where investigations need to be carried out were the base of control system. Employees may show resentment towards these courses of action, but the implementations of such programs are essential to achieve compliance[Sin88]. Moreover, while such control is being executed, it is necessary that the senior management understand the true scale of such operation so that they support their subordinates and implement those programs in an effective manner. Cultural interventions with a focus of changing structure of the organizational can strengthen compliance. They are required to be backed by employee engagement and strict policies and regulations[Pfi09]. Case study 2 There was another case of Mattel, a toy manufacturer. The reputation of the company was damaged when they got to know that the products, which they manufactured, contained lead tainted paint, which was very hazardous to the health. Mattel’s main problem in this regard was using dangerous methods and having flaws on designs that could lead to death of a child. At that time, Mattel had already delivered thousands of toys to distribution centres so they had to carry out inspections and recall all the deliveries. They initiated a program to prevent two-thirds of the toys to reach retailers and customers [DIE12]. Furthermore, in response to such disaster the company launched public information campaign, which had the aim to stop the children’s parents in buying those toys. Moreover, the organization took a control system within the departments to ensure that the employees took relevant steps to be focused on the quality of the toys[DIE12]. Supervisory control over employees is the responsibility of the employer. They need to make sure that the organizational objectives are achieved through ethical standards and company policies. There are many different tools taken by the organizations to evaluate performances, motivate and provide them incentives so that they carry out their work with honesty and integrity. The tools and methodologies of carrying out a particular task should also be accurate and any discrepancy in them should be reported so that they do not act as a barrier in carrying out the work practices. Supervisors need to be proactive and make sure to monitor all these attributes to achieve excellence[Tan00]. In order to control and monitor working of the employees, Mattel issued a new three point check system which had the purpose of testing all the procedures, batches, at suppliers as well at production runs. When the company initiated this control program there was resistance seen among the employees, especially the Chinese contractors who in response revoked the companies export licenses. These Chinese contractors were responsible for the negligence as the company investigated on the case. The work of these employees was not closely monitored and they were responsible for the crisis situation [DIE12]. Hence, it is necessary that the company’s control system such where audit and compliance procedures are not taken lightly. Mattel initiated the same; they started to perform audits at the subcontractor’s factory by means of Professor Sethi’s research team that had the purpose of arriving at the outlet without prior notice to inspect the working [DIE12]. It is seen that if the employees are not fully complying with the rules and not being transparent of their actions, they are violating their practice. In fact, the company had this strategy to identify problems that are faced by the employees so that the company could take necessary amendments. This is an important part of compliance. If employees are secretive about any working then this also comes under violation. In this regard, in order to have control over such behaviour they clearly stated that if any employee were caught hiding any problem they would be fired. Anything that is hidden implies that it needs to be addressed. Failure to remediate the problem may result in losing the quality or value of any product or service [Ste07]. Mattel’s control system became very effective and even though there were some resistant attitudes seen within the organization but they continued to conduct audits at all the factories on a regular basis with the International Council of Toy industries (ICTI) CARE [DIE12]. Most of resistance occurs when any new policy or methodology is opted by the management. However, organizations are able to understand the sources of the resistance and identify a means through which the employees and managers are engaged then these resisting forces may decline. Mattel initiated the same. They were actively involved in building confidence using the right communication channels to maintain control over the management and the employees. The control systems of Toys Industries extend to having certified testing laboratories that report on working conditions of the workers as well as product quality [DIE12]. Analysis: After examining this case it is deduced that organization’s control over employee’s behaviour and working can be carried out if the regulators keep a regular check on them at a personal level and these aspects are part of ethical principles pertaining in any organization. It is also interpreted that organizations need to have good working relationship with regulators as they are the ones that exercise effective control with a strong emphasis on corporate values. These corporate values that are embedded in the organization provide guidance to employers at the time of crises, to control the adverse affects of any failure[Ste07]. Sometimes, organization while having a certain amount of authoritarian rule over employees may face deviant behaviour so while exhibiting control, there should be a feeling of mutual trust so that employees are aware that the control would be better for them in the long run Investigation is an important part of control system as errors are explored, analysed and studied that help in generating recommendations to overcome them. Sometimes the initial investigation process is the hardest as employees may not be ready for their scrutiny but at this stage, most of the unwelcomed evidence of error or even delinquencies is uncovered. However, thorough examination of the problems may help the organization determine the gaps, the issues that may be harmful to the company. These intervention strategies are part of the control program that aims to reassert to the employees to carry out their work in integrity, benevolence taking care of workplace ethics. The case study of Mattel provides answers to all these questions as they the control system completely changed the company’s image for the better[Sit10]. Sometimes these strategies that focus on interventions may fail to mark their presence on the employees as they may feel that the employer does not trust him but if employees are engaged, tasks are delegated, they feel valued. Employees who are appreciated may take this controlling behaviour has a positive implication on achieving organizational goals. In this regard, lobbying in an effective tool through which employees and the employers meet at the platform and they interact with each other progressively. The employer or the company can take advantage of this platform to be communicative about the important regulations, its significance to both, the employee and the employer. In return, employee’s internal optimism level and morale increases and they may also respond positively to their supervisors[Pfi09]. Case Study 3 There was another case at BAE systems where the company faced criminal allegations for making wrong accounting procedures and making negative statements. The corruption charges on the company completed ruined the organization’s reputation. The company accepted all the charges and had to give a huge amount of fine. In order to make the working of the company effective, the company approached a number of expert advocates and panel who were supposed to take actions relating to control systems that had the basis of ethical conduct. The organization’s aim was to be focused on monitoring performances but this was a challenge for them because the company’s profile and reputation were sabotaged [DIE12]. It is seen that while monitoring the performances, the inadequacies of the companies need to be addressed. The control systems need to reviewed and changed on an on-going basis so that they are more effective. This focus on agility and change is an essential part of control as sometimes the findings suggest that the change may reduce the poor working of the employees as well as all the other systems in the organization. In a crises system at BAE System, the management needed a drastic change so that they could recoup from their failures and be able to move forward with integrity. In organizations, where there are no crises or failures they also require changes in their control systems as sometimes employees may know the weaknesses of the employer and may take advantage of this fact by exploiting the areas where there is no or less monitoring operations. However, if any abrupt reviews are conducted then organizations can understand and evaluate the working of the employees. This process of changing the control system is highly regarded in Multi Nationals as they need to achieving competitive advantage over other companies and need to be accountable for their actions and their image and reputation is also at stake. Sometimes organizations neglect the criteria to base their control mechanism as their main focus is on product or service enhancement and achieving organizational objectives but if the emphasis is on controlling the management they could double the productivity[Pfi09]. Looking at this case study, it can be deduced that BAE Systems had to exert control through incorporating ethical practices, linking it with the appraisals for the management as well as for other employees of the staff. Moreover, the corporate governance reforms were means to identify new roles with monitoring and internal investigations [DIE12]. As mentioned before, these internal investigations were required to determine any unethical behaviour of the employees that could harm the country in the long run. Sometimes, the small issues that are neglected by the employer become big and may give a huge loss to the company’s profitability, market share as well as sales and reputation. Independent auditing functions are required on a yearly basis as well. In this regard, BAE systems formed a steering committee that was supposed to have a supervisory control over the Woolf Implementation Program to see if the controls were carried out effectively or not [DIE12]. The operational frame work with strict rules and defined responsibilities are also a means to exercise control over the management and the employees. Insights on Effective Control Systems Internal and external review system needs to be implemented through communication. Organizations can use bulletins, meetings as a means of communication focusing on critical points that have affected the organizational success. The supervisory control should be integrated into the organizational policies. The design of these controls needs to be such that employees accept them. Supervisory control should be able to project the employee’s performance in meeting deadlines and targets. Employer also requires seeing the control system is cost effective. Even though, sometimes large companies may not focus on regulatory control but this is an investment that promises more qualitative products and services[Sit10]. Sometimes employees may resist complying with the policies of the organization and they may also show ambivalent behaviours over supervisory control. The resisting roles can be in the form of propaganda in the organization, low productivity, forming an alliance and may also carry out unethical practice like using dishonest means to support their own interest. These roles of resisting forces need to be closely monitored because they can result in damaging the company’s vision and mission just like in the case of Siemens, Mattel and BAE Systems. If the organizational control over the working of the employees were effective from the beginning then there would have been minimum chances of failures. Organizations need to instil the training and use accurate measurement processes to monitor working. Motivation, incentives and employee engagement are a necessary part of the system to stimulate employees to work with compliance[Ste07]. List of References Sit10: , (Sitkin et al., 2010), DIE12: , (Dietz & Gillespie, 2012), Sin88: , (Singh, 1988), Pfi09: , (Pfister, 2009), Tan00: , (Tannenbaum, 2000), Ste07: , (Liff, 2007), Ste07: , (Liff, 2007), Sit10: , (Sitkin et al., 2010), Pfi09: , (Pfister, 2009), Read More