Business Management: Analysis of Alcan Case - Essay Example

of Alcan Case Study Analysis Business management is a skill that involves art and science combined. It is the artof making people more effective than they would have been without you. The science is in how you do that1. There are four basic pillars: plan, organize, direct, and monitor. Planning involves creating blueprints of concepts and ideas while organizing is driving that plan into action. As soon as these two are in motion, the next step would be to keep that implemented plan constantly on track by directing your resources, most especially the workforce, into the goals and aims of that plan while keeping a close monitoring of what is going on. In its entirety, business management is highly critical and constantly evolving especially in the aspect of resources, and this is the central idea where the Alcan case revolves around, managing the work force, because people is the most essential asset of any business that hopes to be successful for the long term2. In the Alcan case, the conflict created by lack of communication and the inability to effectively manage the work force created placed the smelting industry at risk of loosing enormously even to a point of closure. The succeeding paragraph will therefore attempt to dissect each of the issues contributing to the tension as well as the solutions that were implemented, ending the rift between management and labor union. The main issue involved in the Alcan Case is Industrial labor relations creating an impact in the productivity of the manufacturing plant. In an industry that utilizes human resource as the main key to productivity, human resource management plays an imperative role in the sustainability of that industry whereby excellent degree of skills are required to handle issues from recruitment requisites, skills training and performance ensuring personnel and management policies conforming to regulations. Managing the work force as well production is a very complicated task that requires a higher level of understanding of theories related to management and organization. There are many proponents to these theories, and almost all of them are relevant to the issues present in the Alcan Case. It is important to note that the core of the Alcan issue involves the increasing grievances of the workers owing to the tension within. Among the theory applicable to this case is the system theory whereby managers are to recognize the various parts of the organization when attempting to resolve issues There are several contemporary theory of management, among them includes contingency, system and chaos theory. Contingency theory asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand3. System theory on the other hand, helps managers view the organization from a broader perspective, since this theory brought a new perspective for the interpretation of patterns and events in the workplace. It recognizes various parts of the organization, specifically the interaction and coordination within central administration with its programs, engineering with manufacturing, supervisors with workers. Chaos theory recognizes that events indeed are rarely controlled. In his article, Mcnamara claimed that many chaos theorists refer to biological systems when explaining their theory and suggest that systems naturally go to more complexity, and as they do so, these systems become more volatile (or susceptible to cataclysmic events) and must expend more energy to maintain that complexity. As they expend more energy, they seek more structure to maintain stability. Mcnamara further said that this trend continues until the system splits, combines with another complex system or falls apart entirely. This trend is what many see as the trend in life, in organizations and the world in general4. The underlying root cause of the Alcan/Lynemouth smelting industry was a classic case of human resource mismanagement. There was an increasing need for management to hear employee's grievances but management failed to see this as a potential risk until labor union intervened until it created several disabling move of union strike owing to a more severe crisis. It was almost too late for management to have decided on implementing efforts to remedy the crisis. It must be noted that according to the grid theory of Cary L. Cooper, it is necessary to focus on both, people and production, not one or the other, if you want your business to sustain (p. 207). There were several options identified for the management to implement, in which a simple venue of airing grievances and communication would have proven useful in an earlier phase, but it lasted until the hiring of personnel manager in 1990 who implemented an effective means to solicit cooperation from the employees. Among the remedies that proved effective thereafter, was the restructuring of the work at Lynemouth, which includes job rotation, team briefing and degree of multiskilling, accordingly this elicited explicit cooperation of plant union. There was the creation of team leaders who were made responsible for team briefing and the coordination and scheduling of work, they received additional allowance of 18 which was quite a dramatic change in their earnings. There was also the creation of the accredited instructors who takes charge of ensuring the skills monitoring, scheduling, training and evaluation who receives an extra of 9 per week. Direct supervisors were abolished and every team became semi autonomous, especially with the presence of group leaders who were tasked with facilitating and problem solving, monitoring output, quality aspect and safety, even including budgeting in certain areas. The solution that Alcan Lynemouth applied is the system theory that implemented a programmed change that allowed management to view the entire organization as a whole system that can be managed through methodological approach. An approach that involves initiative such as business process re-engineering of Crowther, which specifically entails horizontal team working, multi-skilling and work empowerment. "The system's overall behavior depends on its entire structure" (Crowther & Green. 2004). Among their intentions in implementing this solution was to establish a more cooperative relations with trade union and win their consent by reforming strategies that will enhance communication and further promote employee involvement. Goal setting theory suggests tat specific and difficult goal accompanied by feedback on performance lead to higher output by focusing individual's attention and increasing the effort while strengthening persistence towards task accomplishments (Dawson. 1996). There is an easier task of defining pay and incentives by determining and assigning more specific goal as well as task oriented goals. It is also imperative to constantly solicit performance feedback from the personnel so that they themselves will know where they come short of the expectations that was initially identified and established before the task is began. In conclusion, among the many reason why a business fails is the lack of communication between the management and labor, this is consequential to the sudden decline of employee's lack of desire to cooperate or a growing sense of worker's dissatisfaction adversely affecting the quality of performance. When performance is poor, the quality of the output will also become poor, owing to an increasing number of rejection or poor product quality destroying profit. If this process goes on, eventually business will have to close, affecting not only the investors but the employee as well. It is important to recognize the issues earlier, so that strategies and solutions can be created realigning the move of both management and labor organization in order to cater to both needs. I am under the impression that this can simply be managed through communication. It is through this method whereby options be discussed and terms be agreed upon to further a more peaceful and harmonious relationship. The Alcan case study was a perfect example of a crisis that was managed by means of proper human resource management. Hearing what the grievances are and letting them know the goals and aims of the company that will somehow make them understand the direction of the company is headed, makes a reasonable agreement and more practical solution. Reference . Crowther. D and Green, M. (2004). Organizational Theory. UK:CIPD Reh, John. Management 101. About Business and Finance. Retrieved on 06 May, 06 from Mcnamara, Carter. Contemporary theories in management. Retrieved on 06, May, 06 from Read More