Problems Faced by the Tech Division of CF&F - Essay Example

Organizational Change Organizational change includes changing knowledge and technology, new values, new markets, and changes in the global distribution of wealth. In many situations, environmental change is a main cause of organizational failure. As environments change, they pose new problems for managers of organizations. New knowledge, for instance, can invalidate the existing knowledge of an entire hotel industry. Organization support plays a crucial role because it is concerned with provision of services for the whole organization, including the operational core. Design of a team and effective leader can be seen only as tools for providing effective organizational support and management. Problem Identification Poor communication and lack of strategic vision are the main problems faced by the Tech Division of CF&F. Most employees become dissatisfied when opportunities for meaningful achievement are eliminated and they become sensitized to their environment and began to find fault. Also, in CF&F performance deficiencies result from motivational problem which is closely connected with lack of skills. The weakness of the division is low trained staff and authoritarian leadership, poor communication and decision making process. Most employees are frustrated with the lack of progress and effective management. The threat is absence of coordination and unity between executives, and differences as for perspectives of power of top management. Many managers suppose that they need to dominate subordinates. The focus of power is with the manager, and all interactions within the group move towards the manager. The manager alone exercises decision-making and authority for determining policy, procedures for achieving goals, work tasks and relationships, control of rewards or punishments (Durant, 1999). The success or failure of a current strategy depends not only on decisions made in the past but also on how those decisions are being implemented now by people employed by the organization. It is therefore important to questions about who, how and why people are doing what they are doing and what they should do in strategic implementation. This situation shows that the Tech Division of CF&F needs a strong leader to be ruled. Nepotism is one of the main negative features which reduce effective promotion and communication between employees. Without the direct participation and support of an institution's leadership, power cannot be pushed to its full potential. Leadership requires many of the characteristics common to all leaders, but also requires special abilities to manage any organization in today's rapidly changing environment (HRM Guide, 2006). Lack of training and promotion is another problem faced by employees. In this very case, lack of training decreases the level of individual and organizational competence. It prevents employees to reconcile the gap between what should happen, and desire-targets and standards of performance; and what is happening and levels of work performance. A significant and disturbing feature of the Tech Division of CF&F is the negative attitude towards the benefits of training shown by Frontline Supervisors. Too often training is seen as a necessary expense to achieve output targets. It is not seen as providing long-term benefits or improving organizational performance. A common view of training is an activity undertaken by large corporate bodies who can afford it. Lack of people-centered approach results in low motivation of employees and management staff (Frontline Supervisors). Too many managers appear to attempt to manage through the use of rules, systems, procedures and paperwork, rather than with and through people. Managers should have a highly developed sense of people perception, and understand the feelings of staff, and their needs and expectations. It is people who are being managed and people should be considered in human terms. A genuine concern for people and for their welfare goes a long way in encouraging them to perform well. For many hourly employees, grief associated with personal loss (HRM Guide, 2006). Lack of safety measures, environmental and quality control are the main concerns of employees. A series of slightly more precise duties follow, dealing with, for instance, plant and systems of work, handling and storage of materials. In all cases, however, the duty is not qualified by the phrase 'reasonably practicable'. Accordingly to the case study, it appears that the employer cannot balance risk of injury against the measures necessary for eliminating that risk and, if the risk is insignificant in relation to these measures, the employer may not be liable. Strategies for Change The Tech Division of CF&F should create a (1) new vision of culture and morale. This strategy will be based on the nature of the organization's 'business' and its primary function. Friendly and supportive atmosphere and organizational climate will be the core of the change. The division should change its patterns of communication and introduce informal communication patterns (Change Management, 2003). This is a complicated process which takes time, but it will bring benefits to both management and employees. Informal communication will help to provide satisfaction of hourly employees, and a sense of personal identity and belonging. This type of communication provides additional channels of communication and provides a means of motivation, for example, through status, social interaction, variety in routine jobs, and informal methods of work among team members. Informal type of communication provides a feeling of stability and security, and through informal 'norms' of behavior can exercise a form of control over members of each team (Eade 1996). With the help of this method of communication the Tech Division of CF&F will have an important influence on the morale, motivation, job satisfaction and performance of staff. It can provide members with greater opportunity to use their initiative and creativity in both personal and organizational development (Senior, 2001). (2) Elimination of nepotism and authoritarian leadership style is the second strategy. A more participative and supportive style of leadership and managerial behavior is likely to assist in change management; for example, showing an attitude of respect and trust; encouraging personal self-development; creating a work environment in which staff can work co-operatively together. A participative approach to leadership and management may also help to create greater employee commitment. (3) The third strategy will involve training and learning. Training needs analysis will be therefore a key element of improved team work. It increases the level of individual and organizational competence and helps to reconcile the gap between what should happen, and desired targets and standards of performance; and what is happening and actual levels of work performance. Training has a major influence on the success of teams. In order to sustain economic and effective performance it is important to optimize the contribution of employees to the aims and goals of the organization. It should be mentioned that the purpose of training is to improve knowledge and skills, and to change attitudes. This can lead to many potential benefits for both individuals and the organization (Tosey, Robinson, 2002). The forth strategy is implementation of (4) safety measures and quality control. Total quality management is one of the possible solutions to this problem. It comprises a quality plan which offers a structured, disciplined approach to quality and incorporates a number of tools and techniques. Particular emphasis is given to the collection and analysis of information and to employee training. It is culturally based with involvement as a core philosophy. TQM statements abound with references to teamwork and creative thinking. By focusing on the costs of poor quality, it saves money. It encompasses the notion of continuous improvement and, as such, it is essentially long-term (Senior, 2001). The maintenance of (5) safe working conditions and the prevention of accidents are most important. Accident prevention is the responsibility of management and this responsibility is often delegated to the human resources manager. In other organizations, it may be the responsibility of the works engineer or works manager. The key to setting standards of health and safety, and thus one of the fundamental duties required of employers, is to carry out an adequate risk assessment. A risk assessment involves identifying hazards present in a workplace (arising out of the work activity or factors such as the layout of premises or equipment), together with an estimate of the risk involved. To ensure high standards of work safety, the division should employ a safety officer. He should have good experience of industry, and knowledge of engineering principles and the relevant law, and have a common sense approach to problems. Qualities required include efficiency, high morale, courage, so that he can be respected, and he should be able to mix well with other people The fifth strategy is (5) social corporate responsibility and ethical guidelines aimed to ensure environmental control and standards. The Tech Division of CF&F should adopt CSR because some moral justification comes from a value system that is independent of the business itself and where individual opinion can be sharply divided. An issue of particular concern is the effect of business activities on the environment, including global warming, pollution, wasting of natural resources, the destruction of forests, destruction of animal and plant species, etc. One way for the the Tech Division of CF&F to operationalize its concern for the environment is to develop an internal environmental management system (EMS) (Senior, 2001). (6) Vertical relations between staff and supervisors, team members and supervisors should be more flexible in order to ensure effective decision-making. Delegation of authority should be the core of improved conditions and decision process. The main purpose of delegation is to make organization possible. One person cannot exercise all authority in making decisions as a firm grows. There is a limit to the number of persons that a manager can personally supervise. After this limit, the manager must delegate authority to subordinates to make decisions. Delegation is the process whereby an individual or group transfers to some other individual or group the duty of carrying out some particular action and, at the same time, taking some particular decision. It means, in effect, entrusting some part of the work of management to subordinates. Responsibility is not, though, surrendered, as no manager avoids ultimate responsibility by delegating. The work is delegated and the superior holds the subordinate accountable. The subordinate is responsible for doing the job; it is the superior's responsibility to see the job is done (Saxby, 2004). The division can (7) joint a trade union in order to meet industry requirements and reduce employees concerns. The main function of a trade union is to advance and protect the interests of its members. Disputes may be settled by negotiation, conciliation, arbitration, investigation and formal enquiry. Human resources managers need to have a thorough knowledge of procedures of consultation and negotiation and the function of consultative bodies. Loss of output through industrial dispute can be costly to an organization and the proportion of strikes which occur without union support should be reduced. Strategic Plan The process of change implementation will be based on Lewin's model (2006) consisted of three stages: According to this model, stage I has occurred where employees and teams of the Tech Division sensed the need to do work in a different way. This stage is inevitable, because changing technology requires changing methods of reporting practices in order to meet high standards of healthcare. Problems encountered indicate the need for change. As a sub-stage, it is possible to distinguish discussion sections and strategies identification. Managers need to discuss change and possible solution to solve current problems. A charismatic leader will pursued employees to introduce a change in order to improve their communication and save time (all strategies are mentioned above). During this stage, the HR manager should communicate change to the employees. All employees must be persuaded to support the change program. Employees' commitments must be associated to the company's change outcomes. During the change process, employees often wonder about how change will be advantage or disadvantage to them. People require more information during the change process. They want to know how changes will affect them and how to prepare. By providing specific information to everyone at the same time, rumors can be minimized. Stage II - of the change process begins while changes are being made in the behavior of employees. During this stage, training will be the main goal. Training will include; (1) designed programs of development in accordance with the culture and specific requirements of the division, production line and team working. There should be a clear development policy together with regular reviews of individual performance and a program of career progression for new engineers and middle management persons. (2) Training will be based on a combination of on-the-job-training, through, for example, delegation, project work, coaching and guided self-analysis, trial periods and simulation; and off-the-job-learning. (3) To introduce safety measures and ensure high quality and standards, the third step will include training employees in order to familiarize them with innovations and new technologies. This may include training classes organized on the division and provided by experienced engineers in a particular field. This form of training does not need additional cost, but very effective. (4) A particular and increasingly popular approach to management development courses is through action learning. This training program will cover new employees and college graduates. Typically, this involves a small self-selecting team undertaking a practical, real-life and organizational-based project. The emphasis is on learning by doing with advice and support from tutors and other course members (The Importance of external supports for Teams. 2003). Special programs will be introduces for management staff and Frontline Supervisors. These programs will be aimed to familiarize senior managers with new approach to management and human relations. If the personnel function is to be effective there has to be good teamwork, and co-operation and consultation between line managers and the personnel manager. In this case, "High-quality internal training programs not only give people the skills they need, but also send the clear message that you care about people's career development and are willing to invest in them as individuals" (HRM guide, n.d.) Changes in culture and communication will be based on new values and directions developed by the Division, its members and relations with upper management. Also, the role relationships with members of a team - peers, superiors, subordinates - the individual will have a number of role-related relationships with outsiders, for example members of other work groups, trade union officials, suppliers, consumers, and this patterns determine the nature of arrangements. This can be attained by the process of 'bundling' or 'configuration'. In this very case arrangements could be described the process of ensuring that strategies are integrated with or 'fit' business strategies. The concept of coherence could be defined as the development of a mutually reinforcing and interrelated set of policies and practices. Informal communication will be introduced in order to reduce fear and uncertainty of employees. Teams will be motivated to express their opinion openly and fairly which helps to create a clear vision of the problems and their causes (The Importance of external supports for Teams, 2003). A personnel policy will be introduced to promote consistent decisions on functional relations issues and cover upper management and supervisors. Also, effectiveness of team work will depend on granting authority to the personnel department to override the natural priorities of line managers. "Rather than increasing hierarchies, they support the minimizing of vertical structures and the flattening of hierarchies, creating lateral roles and relations. The decision making processes become decentralized and there is a decrease in formalization" (Senior, 2001: 56). Phase III - of the change process is called "re-freezing" (Lewin, 2006), and is when the changes are accepted as the new position by the persons most affected by the change. Participation will ensure the all employees involved in the change take part in the planning and designing of the change and shift reports. They will be more likely to feel a part of the change following new values and practices according to new environment and technology they are working with. Safety programs and social corporate responsibility will be introduced during the third stage. The standards of CSR can derive from voluntary agreement by employees and industry code of ethics. At the individual level the issues will concern the behavior and actions of individuals within the Division (Issues in Corporate Social Responsibility, 2006). Also, the Division should introduce a position of a safety officer whose duties will be: making routine, thorough inspections of plant and buildings, etc., preferably with the department manager concerned; seeing that all safeguards are in operation, that protective gear is being worn and fire escapes are clear; seeing newcomers are instructed in safety measures; keeping records of accidents and their causes and taking effective action where special trends appear; advising on safety implications of plant layout, working methods. A special attention will be paid to union policies and trade agreements. If all employees of the division agree to join a trade union, the company will develop a aimed to satisfy these demands. If the plan is successful, the following indicators will help to determine and analyze the new strategy: (a) increased morale and commitment to work, (2) improved relations among employees and positive working atmosphere, (3) cooperation and improved decision-making which increase input and reduce mistakes (and spoilage); (4) increased revenue and sales; (5) decreased level of accidents at work and improved skills. Also, it is important for HR manager to develop a reward strategy for employees motivating and inspiring to support the process of change and new directions. The main types of reward strategy will include team rewards and individual rewards (Senior, 2001). In sum, the implementation of change can be approached, therefore, in terms of a choice of strategies relating to modifications of the task. It will create a working environment in which formal authority is supplemented by authority based upon knowledge and skill, and increases the job satisfaction and enthusiasm of employees and encourages open communication. References 1. Change Management -- It Starts at the 2003 United States Small Business Administration Top (2003). SBA.gov. http://www.sba.gov/managing/leadership/ changemanagement.html (Accessed 21 Aug 2006) 2. Durant, M. (1999). Managing Organizational Change. Credit Research Foundation. 27. http://www.crfonline.org/orc/pdf/ref4.pdf#search='managing %20organizational%20change. (Accessed 21 Aug 2006) 3. Eade D. M. (1996). Motivational Management. Developing Leadership Skills. [www.adv-leadership-grp.com/articles/motivate.htm (Accessed 21 Aug 2006) 4. The Importance of external supports for Teams. (2003). http://www.ptk.org/display_article.phpaid=5005 (Accessed 21 Aug 2006) 5. Issues in Corporate Social Responsibility. (2006). http://www.bsr.org/AdvisoryServices/Issues.cfm (Accessed 21 Aug 2006) 6. HRM Guide: MAKE THEM FEEL VALUED. (2006) http://www.hrmguide.net/usa/guest/integrate_new_people2.htm (Accessed 21 Aug 2006) 7. Lewin, K. (2006) Change Model. http://changingminds.org/disciplines/change_management/lewin_change/lewin_change.htm (Accessed 21 Aug 2006) 8. Tosey, P., Robinson, G. (2002). Transformation - the new type of change . July. http://www.managementfirst.com/change_management/articles/transform.php (Accessed 21 Aug 2006) 9. Senior, B. (2001). Organisational Change, Capstone Publishing, 10. Saxby, D. (2004). Teamwork: A Simple Concept That's Crucial to Success At Utilities. http://www.measure-x.com/publication/pubs7-04.html (Accessed 21 Aug 2006). Read More