Objective Planning in the Recruitment and Establishment of Upward Mobility Mechanisms - Assignment Example

?REPORT ON ORGANIZATIONAL STRUCTURE AND MANAGEMENT Report on Management in Organizations: Case Study of Watson and H&M Consulting Companies University Date TABLE OF CONTENT 1. Introduction……………………………………………………………………………pg 3 2. External Environment………………………………………………………………… pg3 3. Organizational Culture: A focus of Corporate Social Responsibility and Corporate Culture of the Two Companies……………………………………………………….pg4 4. Management: Managerial Style /Structure in Relation to Watson and H&M Companies……………………………………………………………………………..pg5 5. Organizational Structure of the two Companies: Focus on System Theory and its Relevance……………………………………………………………………………. pg6 6. Motivation: A focus on Maslow’s Motivational Theory………………………………pg6 7. Group and Team: Belbin’s Team Roles Theory and its Application to Watson and H&M Consulting………………………………………………………………………………8 8. Human Resources Management: A focus on Rational Decision Making Theory in the Context of Watson and H&M Consulting Companies……………………………………………………………………………pg10 9. Leadership-Power and its Relevance in Management: A focus on Watson and H&M Consulting…………………………………………………………………………….pg11 10. Technology……………………………………………………………………………pg12 11. Summary: SWOT analysis of H& M Consulting…………………………………….pg13 12. Conclusion……………………………………………………………………………pg14 Introduction Price (2007) believes that managers who are strategic make decisions that enhance profit maximization for organizations. Management and Strategic Performance tracking and innovativeness are the pillars upon which successful organizations are built. While roles are outlined for managers, companies such as Watson have managerial practices which appear wanting when compared to H &M Consulting. Various models have been developed to conceptualize management, yet managers and business owners experience dilemma trying to cope with profit creation or motivation of employees, choosing predominantly the former (Golan 2005). Therefore, some are involved in bullying other employees in the lower ranks (Bernadi 2001) External Environment Business External Environment can be analyzed using PESTEL. Botton and Harris (2008) affirm that PESTEL encompasses Political, Economic, and Social, Technological as well as Environmental and Technological (PESTEL) situations about a company. Accordingly, PESTEL can be used to analyze a company’s external environment. The external environment of Watson seems to be in bad light, since even investors are not comfortable with investing in the company. The company is in a dilemma associated with external business environment (Economic variance of PESTEL). Car manufacturers (Watson’s customers) are facing bottlenecks due to globalization and competition, an issue which has a trickledown effect on the company. The contracts that the company has traditionally enjoyed are as s result reducing. Other effects are associated with reduced transport cost, and manufactures are taking advantage of this to look for cheap supply from far locations. On the other hand H & M Consulting seems to enjoy positive media and thus investing in the company is an issue which many investors would immediately jump into. The company hand is networked across the globe. It deals with both the private and public sector and thus has a good reputation externally which attracts tenders/contracts. For example in 2006, the company achieved a rating of 8.2 out of the 10 for responding to customers’ needs. Organizational Culture: A focus of Corporate Social Responsibility and Corporate Culture of the Two Companies While there many ways to examine a company’s organizational culture, both in terms of policies and factors that influences its operations, this paper zeroes down on Corporate Social Responsibility. For H&M Consultants, the company’s Corporate Social Responsibility seems to be anchored on people, relationship with its customers, service provision, creativity and empowerment. For the people, the company motto seems to be tailored around the belief that it is noble to exploit people’s potential and be acquainted with this as the epicenter of activities and its investments plans. It continues and has often purposed to invest in people, whether in its staff or in communities it engages with. Further, it believes in the culture of team work. Secondly is that most of the companies programs are tailored around clientele, that is satisfaction of customers’ needs. H &M Consulting seems to consider its customers to be the company’s partners and has therefore embarked on creating mutual benefit over the years and innovative solutions that meet the clients emerging needs. Also, unlike Watson where the owner seems to have indifferent and a care-free attitude (in the implied expressions such as ‘’if it is not a do or die affair, let it be’’ Management: Managerial Style /Structure in Relation to Watson and H&M Companies The leadership of H & M Consulting appears to be well grounded. The Chief Executive is depicted as a strong role model, and has earned respect among the company’s staff. He seems to be very motivational and everyone draws a lot of inspiration from him and empowers all his employees. As a result the company performance is on the right footing. H&M seems to be grounded on the quality of service provision with a great pinch of excellence, often times uncompromised. Due to this, the company assesses its performance on regular basis, and so it is able to attract investment, unlike Watson which only realizes this too late. It also looks for new ways in which it can improve quality of its services. Further, the company’s norm is pegged on creativity and innovativeness. Because of this, it cares a lot for development and appreciation of entrepreneurship and creativity of its clientele. It does this by scrutinizing emerging bottlenecks and examining the opportunities that can accrue from them. In the end, it is able to develop a tradition of adopting the different dynamics within the local and global environment. The other issue which is one of its greatest Corporate Social Responsibility is that the company recognizes the role of its employees by empowering them in making decisions due to its decentralized organizational configuration. This is unlike Watson where management seems to be centralized Organizational Structure of the two Companies: Focus on System Theory and its Relevance System theory traces its origin in the ideas of a German philosopher, George Hegel (1770-1831). Hegel saw the world as operating within the push of different poles, and in the process creating a conflict which negates a ‘solution’ for the functioning of the whole system. Hegel imagined that the world was controlled by two opposing poles, each pulling towards opposite directions. He called one pole the ‘thesis’ and the opposing side the ‘antithesis’. According to him, these two poles (forces) struggle to create an agreed position which he called the ‘synthesis’, which interestingly also come to create the thesis, the antithesis and the cycle goes on and on (Merwe, Hugo and Sandole 1999) In organizational behavior, this theory is very applicative. The two organizations are made up of departments which work for the whole of the companies, besides being interrelated. However, as Bentalanffy would note, these sub-systems must meaningfully interrelate for the functioning of the whole system, and that when one subsystem is affected the whole system is affected. In this, the two companies seem to differ in their structure. H & M depicts the functional Structure model which according to Irani (2011) stipulates roles and responsibilities according an individual expertise so that there is for example an Engineering department consisting of Engineers among others. Motivation: A focus on Maslow’s Motivational Theory A number of theoretical frameworks relates to this. One is Motivational Theory by Abraham Maslow. According to Maslow, people tend to be motivated by what they do not have, and part on the back is just sometimes what employees need. (Goble 2004) In H&M Consulting, there seems to be a muster of and compliance to Safety needs at work, which according to Maslow, would include the need for love and belonging (e.g. working with colleague who supports you at work, teamwork, communication). Esteem needs and other social needs are also critical and is about being given recognition for a job well done. They reflect the fact that many people seek the esteem and respect of others. A promotion at work might achieve this (Goble 2004) and the inspirational figure that the Chief Executive. For this, Buchanan and Huczynski (2010) observe that, the mental and physical potential of a worker does not always give the much given result when the social self is impaired. In Watson, employees are stagnant and upward mobility is not a policy. Bill (2008) for example notes that, in a work place scenario, motivation would be important in areas such as introduction of financial incentives, structuring pay package, time-rate pay, job rotation, job enlargement, shares and shares option and performance related pay (Bill 2008). Motivational programs for H & M Company seem to be tailored to individual’s capability, targets, past performance, market conditions, among others. Taken as a whole, the impacts of wrong managerial decisions are many today. Psychologists reckon that the actions and wrong behavior of managers may lead to less productivity (Bernadi, 2001). Specifically, the effects include disengagement of workers. When employers and managers mismanage employees and do not motivate them there is likelihood of apathy such as that existing among some employees in Watson Company. According to Leat (2007) this may in the long run lead to resentment. Anger and bitterness may also set into employees and the thought of exiting becomes the norm (Balle 2011). Employees like the Watson’s Production Engineer become timid in taking initiatives and making sacrifices since they feel that whatever they do is not positively sanctioned. To the Manager, walling-up and shutting-down his/her effort becomes the order of the day since she/he will harbor the belief that no one listens (Balle, 2011). This could be as a result of the owner of Watson over stamping his authority. Price (2007) for instance notes that for the managers who over-stamp their authority and power, increased criticism from their juniors makes a number of them to be holed-up, timid, aggressive and indifferent (Price 2007). Group and Team: Belbin’s Team Roles Theory and its Application to Watson and H&M Consulting H & M consulting beliefs in team spirit and company ownership to the employees and thus believes in the interrelatedness of departments. In a direct way it fits into Belbin’s Team Roles Theory. In organizational behavior and management, this theory is very applicative since organizations like H& M Consulting are made up of departments, different structures and different individuals. According to Gunduz (2010) the sub-systems and people must meaningfully interrelate for the functioning of the whole system, and that when one subsystem is affected the whole system is affected. The key point worth noting here is that all sub-systems in an organizational organ-gram must be sufficiently attended for smooth running of an organization. Belbin’s theory is tailored on the team and role concept in organizations. Team concept has been widely defined as ‘’a small group of people who make contributions to the common goal, who perform in accordance with the goals, who depend on each other with the mutual feelings of responsibility and who have complementary skills’’ (Gunduz, 2010). Gunduz (2010) has however argued that the two terms ‘team’ and ‘groups’ have often been used instead of each other. This is because to differentiate the two remains an uphill battle with arguments posited that the two are actually the same. However, the term team on a group as employees with a target as espoused by this theory have some distinct features including having ‘’shared goals and objectives, exhibiting mutual confidence and loyalty, expressing their feelings explicitly, making decisions based on compromise, cooperation, coordination and compliance, and having common synergic effect’’ (Gunduz 2010) However, it appears that lack of team spirit presented with the type of management in Watson has resulted to poor performance and absenteeism. Human Resources Management: A focus on Rational Decision Making Theory in the Context of Watson and H&M Consulting Companies Citing Rollinson (2002), Bin Li observes that decision making is the process of producing a solution to a recognized problem. The process of decision making according to the Rational Model consists of a structured four step sequence which are one, identification of the problem; two, generation of alternative solutions and; three, selections of a solution and finally, implementation and evaluation of the solution (Bin Li, 2009). While some decisions are relatively simple to make, Watson, the owner of Watson company seem to be irrational and laidback in making obvious decisions. For instance Ahmed Khan who is more qualified than his manager in the hierarchy, John Smith is not given opportunity to display his skills and seems less motivated. This behavior reckons with Frankaro’s observation that some managers exhibit harassment to their subordinates (Frankaro 2007). Further, Gordon Watson does not take initiative and nothing demonstrates this more than his motto which reads ‘if it isn’t broke, don’t fix it’. Because of lack of proper organization and motivation, the company fails whenever it chooses to take orders which the staff cannot execute. In addition, unlike Theo, the owner of Watson comes across as closed-minded to fresh ideals and strategies at work. Frankaro (2007) imagines that such employee’s mindset is pegged on ‘this has been the tradition of this company’ and often times, employees are left out in decision-making process. Such managers are in the habit of directing juniors, and not empowering them, and are at the centre of everything. He comes too late to realize that things should be fixed. In comparison to H&M Consulting, the company is badly off. H& M decisions have a measured guideline in defining the problem (with input from the Chief Executive together with other employees. This has meant that they are able to hint the cause rather than jumping into conclusion, thereby addressing an issue rather than people, as well as helping in noting what issues are’ important’ and those that are ‘urgent’. It appears thus as Bin Li (2009) affirms that decision making based on rationality helps in defining complex problems and the process that should be followed like redefining the goal and objective as well as monitoring implementation of the plan to solve it. Leadership-Power and its Relevance in Management: A focus on Watson and H&M Consulting There seems to be a huge difference in the power expression for the two companies. While, Watson leadership appears hierarchical and is structured in top-bottom approach, H & M leadership and decision making is consultative and decentralized. While Gabriel (1997) reckons that leaders in organizations are faced with the challenge of diversity and relatedness of jobs, with this being viewed as potential cause of conflict, the role of the manager is still to influence policy decisions and behavioral patterns in trying to resolve the conflict. However, how the two companies carry this out is so different. Watson’s is pegged on a sense of power based on lording it over other employees and sometimes remaining decision-less. For H & M Consulting decision making relies heavily on consulting other employees to facilitate strategic decisions to deal with it but for Watson, employees such as Ahmed Khan view of technological advancement, is ignored. The understanding here is that leaders acquire power from individual initiatives. This is from both position and sources which are at a personal level. Personal power, which is used to facilitate authority over others to do what they are suppose to do, has a number of tenets including the leader having skills, data, strong personality, attractiveness and energy resulting into effort to execute projects. At large, these sets of abilities are important to reduce or eliminate employees resisting orders (Gabriel 1997). H & M Consulting seems to exhibit these qualities. In the exercise of power, it is important to dichotomize power into two, which are personal power and position power. Position power is exercised in four basic dimensions in organizations. These are centrality, criticality, relevance, and visibility (Knights et al 2007). Relevance refers involves the leader participating and shaping opinion and decisions made in the company or organization (Gabriel 1997). Technology The examination of the two companies can again be done through PESTEL lens. Bottom & Harris (2008) argues that technological framework of a company has a direct variance to the market place and employee’s performance/motivation. Watson’s technology compliance is wanting. The company has a small and arguably old fashioned plant. However, it has capital to upgrade the exiting technological system. It cannot acquire overheads due to inflation. Technological incapacity is affecting operations, because the floor is inflexible (Press machines). Even though Ahmed Khan (the long suffering production engineer) has made some suggestion-investment in the new computerized production technology, and suggested re-organization of shop-floor, he’ not taken seriously and there seems to be bureaucracy in approving suggestions including regard to technological advancement, because of the aloofness of the marketing department and lack of communication between the departments. This seems to be different to H&M which believes in technological innovation to meet customers’ needs and to improve quality of services it provides. Indeed a closer examination of Watson’s poor embrace of technology has meant that some people are underworked, while others over burdened. To demonstrate good management, this paper gives a positive SWOT analysis of H & M consulting Summary of SWOT analysis of H& M Consulting POSITIVE NEGATIVE INTERNAL Strengths 1. Structure Decentralized. 2. Services are customer based 3. Positive human resources practice 4. One of the Largest Engineering Consulting companies in the United Kingdom 5. Unique business model 6. Huge amount of profit accruing from agreeable corporate social responsibility endeavors 7. Good employee relation, coordination and team spirit 8. Acknowledged/acclaimed risk management strategies 9. Involved in corporate responsibility issues such as education and training of communities 10. Fewer delays and customer complaints: Higher customer turn-out 11. Internet presence, with a online magazine which outlines its corporate responsibility endeavors and culture 12. proper organizational Corporate Organizational structure Weaknesses 1. Has not fully maximized its corporate responsibility programs across the world 2. Has not fully maximized on technological use and embraces innovation EXTERNAL Opportunities 1. Presence in many parts across the world 2. Enjoys positive media 3. Internet presence, with an online magazine 4. Coordinates with outsourcing companies 5. Belief in innovation 6. Sound advertisement on Corporate Social responsibilities 7. Increased need for its services due to positive image 8. Consultative leadership structure Threats 1. Competition from other companies engaged in provision of equal services 2. Overregulation of consultancy services by government 3. Some of its implements are dilapidated and may invite negative sanctioning 4. New tax system 5. Depends on other companies to get contracts; it is not an individual entity in itself. Conclusion A business needs to factor in a number of issues to have smooth ride. Besides heavily investing to take advantage of the perceived emerging market, it has to be strategic in other areas. It must have policy interventions that would enable it penetrate the market sufficiently. Adoption of marketing strategies, service delivery and raising tools is one strategy that needs to be complied with. Objective planning in the recruitment and establishment of a upward mobility mechanisms are issues which a company like Watson must consider. In sum proper strategic entrepreneurship and human resource endeavors that factors in motivation, communications, and building of relationships are important to put a company on a competing edge – For motivation the manager should a lot more on others and seek to understand employee needs. Evidently, company policy makers, compounded with other scenario in the macro external landscape, must develop and seek to develop plans which are market oriented. Employee satisfaction is an important parameter to gauge the functioning of companies’ performance. The extent to which they are satisfied plays a vital and decisive role in determining the existence of pleasant relations and communication effectiveness in terms of flow of information between the management and employees. 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