Managerial Practices in the Organization - Literature review Example

Office Tigers: Critique of the managerial practices in the Organization 1. Introduction Office Tigers is an outsourcing company operating in Chennai, India. Joe Sigelman, a former New York banker, who in the documentary explained his managerial approach, directly manages the Chennai operation. As an outsourcing company dealing with New York-based corporation’s documentation requirements such as presentation preparation, accounting, and analytics, Office Tigers is characterize by meritocratic management, long hours of work, internal competition, perfection and continuous improvement, friendly working environment, and seems endless challenges. From its humble beginning in 1999, Office Tigers managed to grow into a reputable professional services organization with long list of satisfied corporate clients. In order to determine and comment on the managerial practices in this organisation, the assignment analyses the different managerial approaches employed by Joe Sigelman, Lonnie (Chief Operations Officer), and others such as meritocracy, leading by example, communication, honesty, and commitment to client. These management approaches were selected based on their relevance to outsourcing type organizations and their impact on Office Tigers employees. 2. Meritocracy The principle of meritocracy is closely related to the notion of the “American Dream” (McNamee & Miller, 2004, p.2) which Joe, Office Tigers’ Chennai manager mentioned in the early part of the documentary, as something good about their business. It is a system where individual is being selected in relation to her or his expertise and given compensation commensurate to the overall value of their contribution to the organization (Tangwa 1996, p.63). However, although it sounds good to advance from your own merit, the idea that merit can be transmitted from generation to generation by parents, “liberating potential” for Joe and Randy, seems to suggest that privileged can pass on competitive success to their offspring through natural advantages or merit derived from some sort of inherited innate ability (Barry 2005, p.110). Note that liberating potential is different from developing potential in the sense that the former already exist. If meritocracy is understood from this perspective then the opportunity to achieve merit in Office Tigers is unequal as undervaluing the work of certain minority is bias, and discriminatory (Castilla, 2008, p.1520). Liberating potential should not be selective since it would be contradictory to the notion of equality of opportunity. For instance, although awards should be given to those with exceptional skill and effort, competition should begin in a neutral point so that all have the chance to acquire the need skills. Meritocracy in principle generally would prioritize those most likely to do well in a particular field (Barros & Ferreira, 2009, p.32) and for this reason, inequality of opportunity is possible. For instance, as a matter of equality of opportunity, universities generally would admit those who would give their best to pass the entrance examination even if they are from disadvantage groups who meritocracy recognized as a waste of money since they would not do well in this arena. In other words, meritocracy is more interested in produced social outcomes while equal opportunity focuses on fairness in regard to competition for social resources (ibid, p.32). In Office Tigers, the idea of liberating potential and traditional meritocratic principle of work is so prominent as evidenced by people who willingly work 18 to 20 hours a day just to be praised by the co-founder, who himself enjoys seeing people wasting their youth and neglecting their families, and rewarded trophies, cheap promotional T-shirts and coffee mugs. Office Tigers brand of meritocracy is manipulative and exploitive in the sense that although it never failed to recognize the effort of those who excel, the compensation is often not commensurate to the overall contribution. For instance, nowhere in the documentary particularly the members of the consistent team of the year awardees “Big Blue “is compensated with good life. In fact, two of those shown were almost living in the same condition before they entered the company. Moreover, since its generally outsourcing in nature, operating in a country with cheaper operating cost, it is not a surprise that its American management is so convinced that their people, earning a few cents per hour, will appreciate such simple rewards for their extraordinary effort. 3. Leading by example Leading by example should be the self-evident mode of management but according to Taylor (2006), it involves being more than a manager should be such consistency, willingness to do what you ask others to do, and unquestionable ethics (p.72). This is because ethics is associated with moral rules that enable individual to determine right from wrong (Fan 2005, p.342). In other words, act the way you want your employees to act since leading by example can influence the behaviour of others (Guth et al, 2006, p.2). Co-founder Joe, Senior managers Lonnie and others with the exception of Seth who in the documentary showed remorse when somebody mentioned “Hitler”, are leading by example at work. For instance, Joe wanted everyone to be follow the company’s dress code thus with his business outfit and tie on often remind everyone to wear their tie. Similarly, Lonnie who wanted a lively and motivated workforce is always encouraging, energetic, and spirited at work. Leading by example is useful in encouraging ethical behaviour as employees are greatly influenced by role models (Dubrin, 2008, p.103; Yancey et al, 2004, p.117). For instance, if an employee observes his manager consistently treat others fairly then most likely he would also treat others reasonably. However, leading by example may have some implications particularly when employees know the Senior Manager’s personal lives. According to Binder (2007), motivation problems may arise when employees feel that their work is damaging their personal and family lives (p.165). For instance, Joe is definitely living a disorganized life outside the office while Lonnie, although living in a nice house, his only friend is his dog. Moreover, the documentary also shows other employees living conditions and they are surely not others would expect from well-dressed managers working 20 hours a day. The problem with Office Tigers management is the lack of consideration on work-life balance that would maintain the motivation level of employees working across time zones (ibid, p.165). What both Joe and Lonnie are trying to portray is a life of all work with no real benefits, tiring, and frustrating that only a few will enjoy. To keep employees motivation high, it may best to promote work-life balance through flexible work schemes rather than requiring employees to spend their whole life in the office. Office management may promote the use of home office or choose their working hours depending on the amount of time required to meet the deadline in different time zones. According to Mosley et al, (2010), employees may be intrinsically motivated and satisfied by doing their work but they also need to be satisfied by the consequences associated with it such as pay, benefits, job security, and working conditions (p.198). Therefore, Office Tigers’ working condition is detrimental to employees’ satisfaction and retention. 4. Communication Since leadership in an organization is a relationship between the managers and employees, two-way communication is necessary, as uncertainty exist when information is ambiguous and unavailable (Brashers 2001, p.478). Organizing requires constant exchange of messages that needs speakers and audience real-time participation (Mumby & Ashcraft 2006, p.75). According to Wood (2011), leadership exist when members of the organization communicate to establish a good working environment, organize, and discuss matters to complete the task at hand (p.254). Office Tigers senior management is definitely well in terms of communicating with the employees. In fact, communication between management and employees almost occur every day. However, the effectiveness of leadership communication depends on its content and the manner of delivery (Miller 2008, p.191; Araujo & Gomes 2010, p.30). In Office Tigers, management messages often has visionary content which is effective in motivating employees (ibid, p.193). Delivery of these messages is often done face-to-face as Joe and Lonnie demonstrated in the documentary, which experimental studies on leadership communication recognized as responsible for higher ratings of leadership effectiveness (ibid, p.193). Moreover, communication enables organization change and achievement of consensus (Jabri et al, 2008, p.668) thus must delivered in the most intimate way. Office Tigers management seems to use communication to persuade and influence their employees particularly in motivating them to work beyond normal hours. These include nonverbal communication such a body language, eye contact, facial expression, and proxemics, which according to experts in communication is 75 to 90 percent effective in sending information to others (Brophy 2010, p.43). Office Tigers management should be given due recognition on this leadership quality but they should practice what they preach. Communicate with openness and sincerity since people can easily detect a hoax a mile away. For instance, Lonnie is talking about directing “two thousand people all to march in the same direction” when he himself is not interested in making friends. Similarly, Joe most of time of time speaker what he care about rather than what his employee care about. According to Maxwell (2007), the most important thing a leader can do as communicator is “live your message” since this is where credibility comes from (p.6). 5. Honesty While good managers take charge personally and provide directions (Pyschogios & Priporas (2007, p.46), “Honesty is absolutely essential to leadership” (Daft & Lane, 2007, p.41) since being honest is essential to earn the trust and respect of employees (Ghuman 2010, p.166). Moreover, the honesty of a leader is judge from his behaviour rather than his ability to communicate as employees often expect managers to actually practice what they say (ibid, p.166). Office Tigers management did change the way world does business and they do practice what they say as evidenced by the very unusual working conditions. However, when Seth, the assistant vice president for training say that “Office Tigers is really thinking of innovative, much more efficient ways the best and brightest of India can work with best and brightest of people all over the globe”, management honesty is lost. For instance, working more than 8 hours a day is no innovative and efficient ways of working particularly for the best and brightest of India. These people deserve more than just visionary statements way beyond the depressing reality of Office Tigers working environment. In terms of honesty, Office Tigers management’s integrity is somewhat questionable as the content of whole documentary suggests some deceitful and exploitative management practices as what Raisch & Birkinshaw (2008) termed as strategic exploration and exploitation of new capabilities (p.398) . If one would notice from beginning to end, the management is trying to use the “best and brightest” of India to “create a great company” (according to Joe) that they would later sell for 250 million dollars. Joe made a lot of exaggeration particularly when he said that he rather spend the 2006 New Year celebration with his employees than his family in New York. Moreover, there is seems some sort of deceit embedded in their award and recognition system particularly when it is achieved through internal competition between teams who gets no financial benefits from their efforts. It is important to note that Office Tigers management gain a lot of money from their employees’ exceptional performance but nowhere in the documentary that a team or individual gets a raise from his or her performance. Joe and the rest of non-Indian senior managers seem so accustomed of manipulating India’s jobless but ambitions “best and brightest” need for employment, passion for competition, and curiosity to cover their true intent. Office Tigers management should be honest about the reality of outsourcing. They should not hide the fact that they are only using Indian’s young professionals because they are bright and cheap. It matters because honesty connects words and deeds, and the foundation of the relationship between leader and followers (Kirkpatrick & Locke 1991, p.53). If one would carefully analysed the statements of Indian account managers, they seems so brainwashed by the prestige of working in American company regardless of physically and emotionally abusive working environment. They seems so amuse with the thought that they are spending less time with their family and they do not sleep much. Particularly, in the later part of the documentary, these account managers look so exhausted and some of them left Office Tigers to find another job as they probably realized the consequences of working with this inconsiderate and dishonest company who do not the difference between selfishly pursuing their own financial goals and being honest (Mazar & Ariely 2006, p.2). The fact that management pursue an irrational way of working, they do not have integrity as it is the manifestation of rationality and consistent with moral values (Becker 1998, p.159). Finally, the absence of concern and consideration for others is disrespect (McGhee & Grant 2008, p.64). An honest management according to Ghuman (2010) is one that is helpful, kind, and compassionate with their employees. A management respect the optimal balance and harmony between people and the objective of the organization. An honest manager is sensitive to the needs and feelings of others and aware of the consequences of his decision (p.166). Office Tigers management therefore should refrain from treating their employees like re-chargeable robots or mindless machines. They should be sensitive not only to their quest for excellence but also to the well-being of their employees who deserve a better life. More importantly, integrity has it moral definition where management has to adhere to certain values and high ethical standards (Garman et al, 2006, p. 291). 6. Commitment to clients and its consequences to Office Tigers employees There is nothing wrong with committing the entire company to clients but there is always a limit on everything. Commitment to clients requires putting them at the centre of every aspect of the business so they become passionate loyal customers. Moreover, the organization should create superior experiences for their clients otherwise; the relationship will not improve (Fasnacht, 2009, p.140). Office Tigers management is undoubtedly committed to their clients otherwise, there would not be any necessity for excellence and 20 hours work. The problem is however, this commitment tend to mislead the management into thinking that there is no better working arrangement than those that will serve the client in real-time. The reason that most employees are working long hours and always in “urgent mode” is because of differing time zones. Unlike call centres with shifting workers, Office Tigers utilized the same group until the work is completed and delivered. Consequently, as evidenced by several late submission and last minute corrections, these people are exhausted. Office Tigers’ management failed to recognize the physical and emotional limitations of their employees and if one would carefully examine the documentary, there is no such thing as rest in the company. What they have are gatherings designed by management to reinforced employees commitment to excellence and the usual long hours of work. Nowhere will you find any statement in the documentary including those with Seth discussing the importance of family life and relaxation in people’s performance. Repeatedly, management reiterate the need to strive more and their almost unimaginable expectations from employees. The myths and truths about employee productivity is presented by Durham-Taylor & Pinczuk (2006), and it is definitely wrong to think that employees are more productive if employees work more hours, faster, and paid more. The truth is employees can indeed work optimally for seven hours or a little more but they need to rest afterwards. Regardless of urgency, employees need balance as they have a life outside work. More importantly, employees are more productive when their employers pay them equitably (p.832). Apparently, employees deprived of rest, equal pay, and life after work is less productive compared to those with balanced life. The consequences of Office Tigers commitment to client resulted to imbalances in their employees’ life and as evidenced by the documentary, it went as far breaking the very foundation of society – the family. The commitment to client can be beneficial for both management and employees if they arranged the work in a manner conducive to employees. Shifting and flexible working hours may be considered if management is sensitive to the well-being of its employees. 7. Conclusion As entrepreneurs, Joe and Randy did change how business is being done and by establishing Office Tigers in Chennai, they too had shown the world how selfish some business management can be. Office Tigers is definitely not managed or led well. Primarily, meritocracy was given a very limited and ambiguous meaning as if merit for doing a great job is more important than employees’ economic needs. Joe Sigelman’s brand of management will never succeed in the Western world thus he brought to a country where landing a job is more important than good working condition and equitable salary. Leading by example is the most noticeable characteristics of Office Tigers management considering Joe’s attitude towards work, disorganized home, and disregard to his family. Similarly, Lonnie is consumed with his operation management responsibilities and appears comfortable with his uninteresting life. Their Indian subordinate managers are also influenced and greatly affected by their superiors’ mentality, to the extent that they similarly enjoy their miserable working conditions. Communication is open in Office Tigers but management should practice what they preach. The Chief Operations Officer should not talk about meritocracy with a baseball bat in his office. They should be honest about their operations and the consequences of their management style. Management and employees commitment to clients should not go beyond normal working conditions and senior managers should be sensitive to the humane aspects of employment and management. 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