Managing People and Organisations - Case Study Example

PEST analysis shows that ALSTOM political situation was feeble in 1999 and continued to remain till 2003 until they change their HRM policies to unite the new and old employees. Among the major concerns were lack of funds, updated technology and unskilled labour which they overcome in 2005 by revising their policies and considering social factors on a cultural basis which gained customers' trust and trained their unskilled managers and employees so that they could move with the 'new' labour department.

ALSTOM currently should consider economic conditions to be updated on a weekly basis as this would provide the managers with the latest updates to take financial decisions regarding investment and budgeting control. ALSTOM should also sought new ways to lower its' costs and increase its plant's efficiency. ALSTOM unintentionally became dual service business which consisted of a two-fold unit, the existing sector and the newly formed sector. This was the main reason why the industry started engaging in various conflicts.

The service sector that was considered 'useless' in ALSTOM was promoted on 'managerial' post while the 'production' unit that consisted of the people who were considered as the real pioneers of the Industry, were merged with the newly formed staff. Any proposal suggested by the new comers and qualified staff was immediately opposed by the existing sector. . This was the main reason why the industry started engaging in various conflicts. The service sector that was considered 'useless' in ALSTOM was promoted on 'managerial' post while the 'production' unit that consisted of the people who were considered as the real pioneers of the Industry, were merged with the newly formed staff.

Any proposal suggested by the new comers and qualified staff was immediately opposed by the existing sector. The conflicts were not limited to the people alone, managers were also involved. Industrial unity began to fragile in the face of multiple pressures; some of them were even brutal which gave rise to the political involvement of managers which widened the potential scope of internal conflict and therefore threatened the basic industrial unity. As a result there started a cold war in two sectors which resisted unity simply as a means of self-protection.

(Minkin, 1991, p. 8)The emergence of Uncertainty The existence of 'uncertainty' tended to further reinforce the sense of there being a political sphere distinct from the industrial world which is evident from the development of two distinct centres, the OEM and the newly emerged sector the one growing out of the other seemed to imply the acceptance of two orders and two sets of functions. All of this enhanced the possibility of political and employees' union role-playing in a way that accounts for much of the subtlety and flexibility of the organisational relationship.

Walter's management was aware of the fact that ALSTOM was lacking experienced employees; therefore with the formation of OEM, ALSTOM hired capable employees.Inflexibility The more united the organisation, the better is its' structure in terms of flexibility. Walter perceived the two