Application of Nadler-Tushman Congruence Model - Essay Example

Application of Nadler-Tushman Congruence Model in the Case of the United Parcel Service - Part 4 - Date Introduction Nadler-Tushman Congruence Model for Organization Analysis (1977) is considered a more comprehensive model since it also analyses factors such as organizational input, throughput or the process of converting all resources within the organizational system, and output (Falleta, pp. 11 – 12). Using Nadler-Tushman Congruence Model, analysis with regards to United Parcel Service’s individual, group, and organizational level outputs will be discussed. In the process of going through the discussion, reasons why each of the identified output is important in the analysis including how these outputs are relation with one another will be tackled. Prior to conclusion, possible problems or synergies that can be developed with regards to each identified outputs will be highlighted. United Parcel Service’s Outputs Individual Behavior and Affect There is a highly competitive working condition at the United Parcel Service. Over the years, the company continuously extend proper trainings to its newly hired employees aside from offering them competitive pay and work packages (Hill a) and a healthy balance between work-and-life (UPS Pressroom a). Since the company is extending work promotion to its employees based on their work performance and professional experiences (Hill; UPS Pressroom a), employees are often highly motivated to give their best performance as they work better for a higher business position. By ensuring that the working condition within the business organization remains attractive, the company has been very successful in terms of maximizing the use of its available human resources. In 2007, UPS manages to experience a fewer absenteeism, lateness and turnover rate aside from a lower cost of health care expenses given that the levels of work satisfaction among its employees are high. Even though the turnover rate of part-time employees is as high as 55.4% (UPS Centennial Edition), full time employees’ turnover rate at UPS is as low as 8% as of 2007 (Hill b; UPS Centennial Edition). In fact, UPS has been recognized as the best place to maintain a career especially in the case of IT professionals (UPS Centennial Edition). Group and Intergroup Behavior The company experience less intergroup conflicts since the organizational culture in UPS has been designed suitable not only with the work values of Generation Y employees but also employees who belong to generation X and baby boomers (Hill ; UPS Pressroom a). All employees regardless of their hierarchy position at work are being called on a first name basis. The fact that UPS’ organizational culture is known for its ability to effectively promote the importance of work diversity makes each employee appreciate the value of team work and intergroup communication (Hill). UPS has long time been practicing ‘promote-from-within’ philosophy. (UPS Centennial Edition; UPS Pressroom a) Back in 2007, as much as 8,163 part-time UPS employees has been promoted as full-time employees (UPS Centennial Edition). Since employees’ chances of being promoted at work highly depend on employees’ past performance and professional experiences, the possibility that the business organization encounters internal conflicts is strongly being monitored by UPS’ human resource management. For this reason, internal problems related to political aspects are lessened. System Functioning As a company, UPS has been performing well over the past few years. As of February 2008, UPS reported that the company’s adjusted diluted earnings per share as of 2007 was US$4.11 which is 6.5% higher as compared to the previous year (UPS Pressroom b). Basically, the success of UPS as a business organization is caused not only by its ability to maintain a large pool of loyal customers but also its strategic ways on how the company was able to maximize the use of its available human resources aside from keeping employees motivated with work. Aside from the significant increase in the company’s earnings per share, UPS also manages to increase its total charitable contribution from US$45.9 million in 2006 to US$46.4 million in 2007 (UPS Centennial Edition). This only means that the company also has an increase in sales and profitability. Ways in which the Identified Outputs Interact with Each Other Basically, the ability of UPS’ human resources department has a significant contribution with the overall success of the company in terms of being able to maintain its business relationship with its loyal customers aside from increasing the company’s profitability and earnings per share. The positive individual behavior and affect of UPS employees are the end result of how UPS human resources management motivate its existing employees. Since UPS employees are highly motivated at work, it became easier for them to develop a positive working environment, work culture and values which is necessary in minimizing possible organizational conflicts. Possible Problems or Synergies that can Develop with Regards to Each Identified Outputs Given that UPS human resource management failed to satisfy the specific needs and wants of its employees in terms of being able to develop a competitive work environment, the company would experience a much higher turnover rate. Given that employees are de-motivated at work, there is a higher tendency for the company to experience serious internal conflicts which will result to a significant decline on the company’s total sales and profitability. Conclusion Nadler-Tushman Congruence Model is useful when analyzing the individual, group, and organizational level outputs of the United Parcel Service. Since the turnover rate of UPS full-time employees is as low as 7% as of 2007, we may conclude that the company has been performing well in terms of satisfying the specific needs and wants of its existing employees. Although the turnover rate of part-time employees was as high as 55.4%, this can never be a basis of judging the ability of the company to retain its competitive employees since some of these part-time employees have been promoted as full-time employees with the company. Similar to the company’s success in managing its individual employees, UPS is also successful in terms of improving its group and organizational level outputs. Since UPS employees are able to work as a team without stressing themselves with unnecessary work-related stress caused by internal conflicts, the company as a whole manages to increase its sales and profitability aside from its earnings per share. *** End *** References: Falleta, Salvatore V. Organizational Diagnostic Models: A Review & Synthesis. White Paper. Sunnyvale, CA: Leadersphere, 2005. Hill, Allen E. "UPS." 2008a. The Responsibility Contract: Strategies for Managing the Next-Generation Workforce. 27 October 2008 . Hill, Allen. "UPS." 2008b. Transforming Health Care and Compensation at UPS. 27 October 2008 . "UPS Centennial Edition." 2007. Operating in Unison: 2007 UPS Corporate Sustainability Report. 27 October 2008 . UPS Pressroom." 2008a. The Responsibility Contract: Strategies for Managing the Next-Generation Workforce. 27 October 2008 . "UPS Pressroom." 2008b. 2008 Press Releases: UPS Reports Revised Results. 27 October 2008 . Read More