Organization

In today’s world, it is all too prevalent to see more and more people hungry to gain success at an ever-increasing rate. Modern culture can and indeed is labelled ‘greedy’ and ‘thoughtless’. Through my relatively short time spent in business, I have encountered many of these types of people. But who are they hungry for? Who benefits from their thoughtlessness, and why do they do what they do? More importantly, who is to blame when things don’t go according to plan? These are all questions asked constantly in the business domain, questions that often seem to include the word ‘ethics’ in their answer.

Whether we look to consequentialism and always consider the outcome of a particular action, or conform to a more deontological form of ethical thinking and focus on always acting in a manner that seems ‘right’, I believe that a person cannot always be ‘ethical’, all of the time. If it were that easy, ethics would be a very small area of study. So what does the word ‘ethical’ mean? To me, it is to take into account every aspect involved in any given situation, peoples’ feelings, thoughts and well-being, both now and in the future, and act as best one can to achieve the most satisfactory outcome for all concerned.

From my viewpoint, acting in an ethical manner comes from each and every individual, each having learned from the environment in which they have grown and developed. Should the judgement, therefore, always be left to the individual? This is certainly not the case, as more and more organisations in the business world develop codes of ethics that they expect each member to follow. This definition and management of ethics can be seen as a control-oriented position. This control paradigm for organisational ethics is largely concerned with extracting the best possible results for the organisation as a whole.

When acting within a certain environment, be it local, national or global, the organisation must be seen to be ‘socially acceptable’. I believe this idea of control of the organisation’s self-interest together with maintaining a good standing in the public eye to be the main factor for preparing these ethical codes. Both of these can only be achieved through clearly defined codes of ethics from which individuals’ roles can conform through a manner of standardisation. However, through the enforcement of ethical codes, people revoke to a basic level of thinking, judgement and acting as identified in Lawrence Kohlberg’s pre-conventional level.

When put simply, it allows little room for individual thought or expression, only rewarding good actions and punishing those that are bad. Can it be right to control tasks that involve ethical reasoning by individuals? This is certainly much different than, say, controlling how someone operates a particular machine. Conversely, the autonomy paradigm, present in some organisations’ ethical policies, is put in place to promote individual critique through their moral thought and judgement.

It emphasises a feeling of a ‘moral community’, seen before in Kant’s work, and from which Kohlberg developed his post-conventional level, that allows people to apply their own reasoning to daily situations. As Durkheim suggests and with which I agree, individuals submit to the environment in which they work and how others have previously cast out norms and values. This applies to general situations and therefore the majority. At other times, in more complex situations, an individual would then be left to choose their own actions.

McMahon identifies that the legitimacy of managerial authority lies within a contract or promise. An employee, therefore, willingly submits to the thoughts and ideals of the organisation when they sign the contract of employment. “That is, the exchange of labour for wages in which employment consists involves a promise on the part of employees to accept the directives of managers. To be sure, employees may be expected to use their own judgement in carrying out the tasks assigned to them. But if a managerial directive conflicts with an employee’s judgement, the directive must take precedence.

Otherwise the employee is attempting to renege on a morally binding agreement” (McMahon, 1989). Whilst this in law is true, I feel that it should be left wholly to the individual’s own moral judgement. What is to say that those who have prepared the code of ethics for a particular organisation are better ‘ethically equipped’ to make the decisions for others? That is to say, why is a senior manager more ethically right than a lower employee? I don’t believe that as a rule he/she is, more they and others responsible for making the decisions would like to think they are.

Yes they may have more experience in their particular industry or even technical and conceptual skills, but that does not make them better suited to exert their moral judgement over another individual’s. Once again, this control is clearly forcing employees back down to a Kohlbergian pre-conventional level. In such free-speaking times as we now live therefore, why do organisations attempt to dictate our thoughts and actions? As I earlier identified, the organisation does not want to be seen to be ‘socially unacceptable’ whilst simultaneously achieving the best possible results.

Therefore, from where do the key decisions originate? Should it be left to the managers to ensure that employees follow an ethical code or should it be left to the individual’s judgement? In my view, autonomy is the generally the best approach as I am a firm believer in individual expression. We have moved from such times as to rule with an iron fist, we should go on from here and not regress. Do many organisations simply issue a code of ethics because it is the ‘done thing’, a reactive gesture rather than a proactive exercise? Is it the case that they are only acting merely not to appear unethical?

This certainly is the case in many organisations in my opinion. What is left to examine is which organisation subscribes to which approach and for what reasons? I consider the major factor in this to be the issue of responsibility. The term responsible is “firstly, sometimes used to mean ‘trustworthy’ or ‘dependable’… second, the term is used to mean ‘obligation’. Third, responsibility is sometimes used to indicate that an action or its consequences are attributable to a certain agent” (Velasquez, 1983). It is this third explanation that I shall focus on. Can corporations have moral responsibility?

This is a question that certainly needs addressing here, and one that has been previously considered by Richard De George. He focused on collective responsibility as it related to organisations, and identified two views, the organisational view and the moralistic view. “The organisational view maintains that moral responsibility cannot properly be assigned either to a corporation, nor to the agents of a corporation when they act as corporate agents. As legal entities corporations can be legally restrained and can have legal responsibility. But they cannot logically be held morally responsible or have moral responsibility.

For they are not moral agents or entities” (De George, 1981). His moralistic view, as he claims, is extremely outrageous. In essence, it states that organisations have moral immunity, whereby an individual could be morally condemned for their actions, they could not if they were pursuing the goals of their organisation. De George lists the example of morally condemning a murderer for their actions, but how “Murders Inc. cannot be faulted from a moral point of view for pursuing its goal, nor can its agents for doing what is necessary to achieve the organisation’s ends.

Whilst this addresses the issue of whether organisations can be morally responsible, it does not answer the question. Therefore, we have to determine whether it is the organisation that acts, the management or the people. “Whenever organisations act, people act, and for every act of an organisation there are at least some acts of individuals such that if these individuals had not performed their acts, and no one else had, then the organisation would not have performed the act attributed to it” (Haworth, 1959).

This quote, in my opinion begins to attribute responsibility wholly to individuals, and thus removes any need for a control-oriented approach. Since the organisation as an entity cannot be held responsible, why then should any body of people seek to control the moral judgement and actions of others? If I am likely to be held accountable for my actions, then I know I want to exert my own moral judgement before acting. Therefore, as it appears to me, it is the actions of the people (be it a manager or a cleaner) that are accountable, and consequently the people who are responsible!

So why do some organisations take this control-oriented approach? I’m sure that with some it is simply to keep the power in their own hands; these people think they need to have power in order to be successful. However, I think a more pertinent reason as to why some organisations take this approach is to hide behind the organisation themselves. Many individuals within organisations are scared of the book stopping with them so they create a ‘code of ethics’ which, in terms of blame, is large enough to hide behind.

Surely then, with the control-oriented approach the organisation should be responsible? On the contrary, with an organisation that employs the autonomous approach, each individual must be responsible for their own actions since they are solely attributable for every part of every move they make. In listing these two types of approaches and the degree of control that they attempt to possess, can it be said of any one organisation that it has successfully adopted a control-oriented or autonomous approach, and that there is no middle ground?

I believe there to be a large scope for contention with any organisation that states outright it has employed one of the two approaches in its entirety. Perhaps the two approaches are simply styles of operating, maybe even ideal? Having looked into the two different styles, therefore, I think that to control someone’s moral and ethical thinking with the ultimate aim to enforce them to acting in a particular way is wrong. Each individual, unless impaired by disability, has the power to determine what is right for them in a certain situation and therefore should have the opportunity to act accordingly.

A person should not be told what to think simply for the corporate ‘good’. “If we are to deter corporate wrongdoing and be assured that corporate members will comply with our moral and legal norms, our blame and punishment must travel beyond the corporate veil to lodge with those who knowingly bring about the corporation’s acts” (Velasquez, 1983). In conclusion, if we as individuals want the power to think and judge for ourselves then we must accept the consequences of our own actions. Organisations should give us this choice.

INTRODUCTION

Planning enables organization to know how to direct their resources towards attaining set objectives. Marketing plan thus involves the setting of marketing objectives and targets and directing the organization’s resources towards the attainment of those set objectives. For Akzo Nobel it is an international company that has put up a marketing plan which tends to integrate its network of businesses into the different European countries where it operates.

Since marketing plan enables an organization to integrate its total marketing effort, for Akzo Nobel with diverse business units operating in different industries where its products are for different targeted customers, the organization need to put in place comprehensive marketing plans that would enable manage its marketing objectives.

AKZO NOBEL COATINGS AND PAINTS ORGANIZATION, BACKGROUND AND MARKETING PLAN

The Coatings division of Akzo Nobel organizations remains the biggest coatings company in the world. It operates in five businesses: Decorative Coatings, Industrial Activities, Car Refinishes, Marine and Protective Coatings, and Nobilas Claims and Fleet Solutions. Each of these five business areas operate separately with a General Manager attach to each and headquarter. The Coatings Group of Akzo Nobel organization commands leading market positions in almost all its businesses and has earned a global reputation for its high quality and reliable products. The Akzo Nobel has coating businesses operational bases in 60 countries, with an employee force of 30,000 people.

For the organization effectively satisfy its customer and achieve its marketing objectives, segmentation of its vast operational base is implemented, whereby different business units within the organization is set up to handle the production of varieties of products according to the taste of customers, in each of the location and distributive network of the organization. This method has enabled the organization to meet its marketing plans.

For Akzo Nobel its marketing plans are built around the company’s customers, where products are developed and created to meet those identified needs of specific customers. Thus, the need to adopt segmentation strategy in meeting the set marketing plans of the organization.

The Nobilas Company was set up in 2003, with its headquarters in Hoofddrorp, The Netherlands. This company is an international solution for vehicle accident management and feet identity solutions. The Nobilas Claims and Fleet Solutions operate as a business-to-business service provider. It mainly operates in Europe and North America, providing offering leading accident management skills with a full package services such as Incident services, Repair management, Fleet identity solutions, and Claims management. Among the company’s clients include motor insurers, leasing companies, car rental companies and corporate car fleet owners. The company has achieved an enviable corporate profile as the world’s first accident management provider to be present in more than ten countries, with customers benefiting from economies of scale and the opportunity to standardize accident management processes across the globe (Akzo Nobel, 2006).

The decorative Coatings Company has its international headquarters n Stockholm, Sweden. It also has a Decorative Coatings for Europe headquarters in Sassenheim, The Netherlands. The Decorative Coatings Company is a major force in the field of home decoration, improvement, the supplying of a host of leading decorative and protective products for the architectural and interior design sector. Among its extensive and highly respected products that are well-known brands, selected to satisfy customers’ needs as regard to painting and coats, include Sikkens, Astral, Sadolin, Crown and Levis. In addition, regional favorites manufacture products such as Herbol, Flexa, Trimetal, Nordsjo, and Marshall. The Decorative Coatings is also a supplier of construction adhesives and floor leveling compounds under the trade names Schonox, Cegegol and Casco. The company has engaged itself in reputable excellent decoration projects. Examples of these include the decorative coatings used at La Scala Opera House in Milan, Italy, and the State Historical Museum in Moscow’s Red Square.

The Akzo Nobel Coatings and Paint company have a well structured organization units segmented to give customer what they want and mechanism put in place to sup[ply them the way they choice to receive their purchase. The Industrial Activities operates under two businesses segments: Industrial Finishes and Powder Coatings. The Powder Coatings has its headquarters in Felling, UK, while the Industrial Finishes has its operational base at Louisville, Kentucky, USA. The Powder Coatings business has not only acquired the status as the largest global manufacturer of powder coatings, but it is also a world leader in powder coatings technology. The Powder Coatings business supplies it products to eight key market sectors, which include appliance, architectural, automotive, functional, general industry, general trade coaters and IT. Two major global brand of the powder coating business include Interpon and Resicoat. Its products also include Non-stick coatings; which are used supplied to customer in office and household furniture; coil coatings or domestic appliances and metal building products. Its specialty plastic coatings are utilized in cosmetic packaging, sporting goods, computers and audio equipment. The Industrial Activities Company has handled prestigious contracts, including the supplying of products for Sydney Opera House in Australia and the Petronas Twin Towers in Malaysia.

The car Refinishes Company has its headquarters in Sassenheim, The Netherlands. The Akzo Nobel’s Car Refinishes business is one of the world leading suppliers of paints and services for the car repair, commercial vehicles and automotive plastics markets. Sikkens, one of its top-of-the-range product brands is known famously for car repair. This product is synonymous with quality, innovation and the highest level of services to organization requiring the products for their operational functions. Other products supply by this segment business of Akzo Nobel Coatings business are Lesond and Dynacoat. The car Refinishes Company operates in more than 60 countries and has wide and reliable supplies worldwide due to its strategic partnership it forms with strong a reliable organization in the same industry.

The Marine and Protective Coatings business of Akzo Nobel Coatings businesses has its headquarters in London, UK. The company is not only the world lading marketers in marine paints and high performance coatings, but also is a major force in the aerospace coatings industry. Its marine, protective and yacht coatings are widely used for ship building, ship maintenance and repairs to yacht and other crafts. The marine and protective coatings business also produces fire retardant products for large plants and off-shore installations as well as providing protective coatings to structures, such as bridges, stadiums and famous landmarks. Examples of work done with this company’s product include supplies to familiar sights such as the London Eye in the UK, Sydney Harbor Bridge in Australia and the Olympic Stadium in Greece. The Aerospace Coatings activities are also part of the Marine and Protective Coatings business in Akzo Nobel. The company is recognized as one of the world’s major suppliers in this industry. It produces well-known brands such as Aviox, Aerodur, and Metaflex.

From the foregoing, it is seen that the Akzo Nobel Coatings businesses embrace a vast area of coverage when it comes to coatings and paints business. The organization is a world leader and a force to reckon with in this industry. It has leading positions in almost all its businesses. The Akzo Nobel Coatings organization has operational bases in 60 countries, and has a 30,000 employee’s workforce. Its slogan is “we deliver to our customers’ more than just paint” (ibid). Akzo Nobel is regarded as the biggest paint organization in the world having developed and supplied innovative coatings products for more than 200 years (ibid). The organization is one of four Dutch Multinational organizations dominating the world operation. “The international activities of Dutch manufacturing MNEs are very much dominated by four large firms—Unilever, Royal Dutch Shell, Philips and Akzo-Nobel.” (Narula & Hoesel, 1999:20). Thus, in the implementation of its segmentation strategy, the organization has utilize the breaking down of its business operations into segments and units to adequately produce varieties of products that would serve the different taste and buying behavior of its numerous clients. The distribution channels of the organization is very wide , therefore meeting the buying need of customers through different medium- be it through transshipment of product, internet sales options, wholesale sales etc.

STREAMLINING STRATEGY

As a way to effectively control the diverse spread of its organization’s business in the Coatings unit, and enforcing an effective grouping and servicing of customers need through segmentation strategy, Akzo Nobel has adopted the strategy of streamlining its business into a more manageable size. Streamlining the organization’s portfolio; i.e. its diverse business dealings, has helped the organization to remain focus in the attainment of its marketing plans that has to do with having the large market share in the industries its business operations ps in European continent, without loosing touch to customers satisfactions. This strategy of maintaining the organization’s marketing plans becomes expedient to align it to a manageable size that will expedite rapid growth. According to Akzo Nobel Report (2005), the Akzo Nobel successful implementation of a strategy to streamline its portfolio is to make the organization to realign competitively the business for sustainable growth, profitability, and leadership positions in selected markets. Currently, the Akzo Nobel organization is engaging on a general restructuring of its business. This is directed towards separating the organization into two independent entities; where Chemical and Coatings units of the organization would be collapse together as an independent organization from the pharmaceutical business that would comprise the Organon and Intervet business units, which would be renamed Organon Biosciences N. V. (OBS). The modus operandi of separating the organization is through a minority divestment of OBS through listing it in the Euronext stock market, Amsterdam. This is expected to take off early 2007, and would be followed by further divestment at a later stage (Akzo Nobel shareholders’ circular, 2005). The separation of the organization is aimed at making the Akzo Nobel organization achieve its long-term objectives in the most effective way and to best enhance shareholders value in the organization.

In this view, Bolton & Myers (2003) have it that “transaction that concerns global business to business marketing requires that managers develop effective global strategies concerning its pricing, products for customers characterized with different cultures and different utilities for product attributes”. Pricing mechanism has a strong contributory influence on the implementation of marketing segmentation, both at the local and global level. The difference in price for buyers and sellers in the different market segments resulting from perception stakeholders holds have a great influence on how segmentation is implemented on the global market level. “a focus on horizontal segmentation implies that particular attention should be devoted to price-based market segmentation for services” (ibid). Invariably, there is different segmentation for services, whether in domestic market or international, from the strategies on goods. According to Bolton & Myers (2003), “two reasons are adduced for these differences, firstly, services to clients are highly perishable in nature, and thus require human resource constraints to limit short-run capacity which makes demand-management issues and pricing strategies enable a smooth demand. Secondly, the intangible nature of services when compared to the tangibility in goods would lead to more emphasis on extrinsic cues rather than on the intrinsic attributes or quality of the service itself”.

Adopting a strategy to streamline an organization’s portfolio would make the organization to be prudent in its investment bids and only invest in that business that would be more lucrative in line with the organization’s vision, stated objectives and long term-goals.

Marketing Plan Strategy And Recommendations For Akzo Nobel Coatings Business

The strategies adopted by the Akzo Nobel Coatings business have greatly contributed to the organization’s successful operation in the attainment of its marketing plans. The company’s marketing strategy has assisted it to curve a niche and obtain competitive advantage through cost reduction and through TQM, these strategies tend to operate in the opposite direction. Porter (1985), argues that the use of both lower cost strategy and product differentiation would lead to the organization being caught in the middle and thus, loosing to its rivals that specializes in one. However, many scholars have criticized this view stating that it is possible for an organization to gain competitive advantage through the two strategies. But it is advisable that for Akzo Nobel Coatings , since it seek for total quality products as a way of gaining competitive advantage, it should put less emphasis on its cost reduction strategy that is aimed at  low cost of its raw materials. Thus, the organization should specialize on getting the best materials. This invariably means that getting the best raw materials would not provide the organization with getting the lowest cost. Customer satisfaction should be paramount, once they have being identified to a segment or type of product.

Another strategy option available to the organization, other than cost reduction, is the Switching Cost Strategy. Here, the Coatings business can enter into contracts with suppliers of its raw materials, in which they are restricted from changing and diverting their supplies to other competitors. This will enable the organization to get quality raw material and adequate supplies at regular bases. According to Stallman (2006), this switching cost strategy is a way to earn excess returns and lengthens a company’s life.

The streamlining portfolio policy adopted in the Akzo Nobel Coatings business should be directed towards giving the various units businesses the independence to operate in the most efficient manner. However, this should not constitute a hindrance to the seizing up of viable business opportunities and coming up with innovative business ideas and products. The adopted move to separate the Akzo Nobel into two independent organizations, this should a welcome idea for effective organization operation. However, this separation would hamper the financial flexibility strategy adopted by the organization. However, this segmentation of operational level would bring about adequate customer’s satisfaction. Thus, a total financial separation should not be instituted in this separation. Here, a provision should be put in place where financial flexibility should be made to cut across the two independent organizations. For projects that are very viable for the furtherance of the organization growth and enhancement of its effective operation.

CONCLUSION

The building up of a good marketing plan backed up with marketing strategies that enable Akzo Nobel to attain its marketing objectives have enable the company to thrive in its different business units. For Akzo Nobel Coating and Painting organization for the company to implement adequately its segmentation strategy, it takes into consideration the vast population of customers that patronizes its product and their different needs. Thus, the organization engages in the broking down of its business operation into units and segments. Furthermore, each segment put in place varieties of products that will be adequate with the quality and pricing need of customers. Distribution channels exist to further satisfy the pattern in which customer desires to receive their purchased product which a significant aspect of the company’s marketing objectives. Through adequate Segmentation and customers satisfaction Akzo Nobel Coating and Painting organization has being able to attain its marketing goal through plans that are jealously guided and focused upon for the expansion and growth of the company’s sales.

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In today’s learning-centered business environment, focus is gradually shifted from individual performance and competition to a more congenial relationship, towards being cooperative and building excellent performance through team effort and coordination. These seemingly group-oriented characteristics of the new business environment have become the thrust of MIT’s Organizational Learning Center, which specializes on the creation and development of organizations to becoming “learning organizations.

This program proposes a radical change using a simple approach: by shifting the members’ perspectives from being individualistic to being collectivist. This proposal is simple in that a learning organization should adapt the values of coordination and cooperation-generally, collectivism-in order to induce this radical change in perspective.

In Senge and Kofman’s article, “Communities of Commitment,” they explicated the roots of the creation of and necessary requirements for a learning organization. In it, they also introduced the analytical model called the Galilean Model, which effectively explains and illustrates the core principles that every learning organization should be and have.

This paper posits that the pursuit for a learning- centered organization, i. e. building ‘communities’ through organization-based commitments, require a deviation from the norm of today’s business organizations, which are primarily individualistic and competitive, to being collectivist and cooperative for the success, mainly, not of the individual, but of the organization or community. One of the important findings from Senge and Kofman’s analysis was the use of the systems perspective in explaining the importance of collectivism, cooperation, and principles of the Galilean model.

As explicated by the authors, the systems perspective allows organizations and its members to “… move from the primacy of pieces to the primacy of the whole, from absolute truths to coherent interpretations, from self to community, from problem solving to creating. ” This passage adequately described the differences between an individualist and collectivist character of organizations. In individualistic organizations, central in it is the individual, wherein the high-performing individual is determined through competition among other individuals/members.

It is also centered in conducting decision-making processes through a more general manner, rather than taking into consideration a problem and solution’s effects not only in the operations of the organization, but the members themselves. Since the individualist character of organization has prevailed for a long time since the introduction of modernism, this is a tradition that cannot be easily changed and replaced, especially with a contradicting character such as collectivism.

This is a challenge particularly difficult among highly-individualistic societies, wherein individuals have high self-reliance and independence. Thus, the authors invoke a “truth” that must be accepted by each member of the organization, in order to recognize the importance of learning and cooperation: “[t]o learn, we need to acknowledge that there is something we don’t know and to perform activities that we’re not good at. But in most corporations, ignorance is a sign of weakness temporary incompetence is a character flaw.

Thus, through learning, members learn to accept the reality that ignorance and temporary incompetence will always be present; it is the role of the learning organization to remedy this problem through the learning-centered management, or by adapting the systems perspective. Systems perspective is reflected in the Galilean model, which subsisted to the following principles and characterized as follows:

1. the primacy of the whole;
2. the community nature of the self; and
3. language as generative practice.

In the first characteristic of the learning organization, giving primacy to the role of all members of the organization, brought out the importance of members working together to achieve a goal or objective. It is through working as a team or group that decision-making processes become more efficient and effective, since the problem is regarded by not only the perception and opinion of an individual, but other individuals as well, who may have a different way of looking at the problem and creating a solution to it.

The second characteristic of the learning organization, according to the Galilean model, is that there should be a cultivation of an “us” rather than “me” attitude. That is, the individual should learn that a task, in order to be accomplished with the highest quality and time efficiency, cannot be accomplished by him/her alone; there must also be one or more individuals making sure that the task is completed with quality and efficiency.

It is through this process of coordination that work is performed efficiently, and individuals learn about their capacities and limitations as members/employees of the organization. Lastly, communication and interaction among members is an imperative endeavor that must be pursued in a learning organization. ‘Keeping communication lines open’ allows members to determine how tasks are accomplished, and should problems arise, they will be able to identify immediately at what point the problem occurred in the process of completing the task or activity at hand.

You will be able to enter this Exam only once. There is a 2-hour time limit for this type of Exam. Make sure to complete the exam by the end of Unit 6 on Tuesday evening. For each Item listed below, make sure you understand what the Item Is referring to, owe the textbook defines it and how it applies to business organizations.

Planning ? Chapter 5 Strategic Planning & Decision Making Strategic Planning -Strategic Goals Tactical Planning – Specific Goals & Plans Operational Planning – Specific Procedures & Processes Mission ? Organization’s Basic Purpose Strategic Vision – Future Perspective SOOT Analysis Organizing – Chapter 7 Organizing for Action Organizational Chart Differentiation & Integration Dillon of Labor & Specialization Vertical Structure Authority Span of Control Delegation – Responsibility, Accountability Centralization Horizontal Structure Line Departments

Staff Departments Differentiations Functional, Divisional, Matrix, Network Centralized vs.. Decentralized Organizations Leading ? Chapter 10 Leadership Vision Leading & Managing Supervisory Leadership & Strategic Leadership 5 Sources of Power: Legitimate, Reward, Coercive, Referent, Expert 3 Traditional Approaches to Leadership Approach – Task Performance Behaviors & Group Maintenance Behaviors, ELM Theory, Autocratic Leadership, Democratic Leadership, Laissez-fairer Situational Approach – Broom Model, Fielder’s Contingency Model, Task-motivated Leadership, Relationship-motivated Leadership, Hershey & Blanchard Situational Theory ( Job

Maturity, Psychological Maturity). Charismatic Leaders * Transformational Leaders * Transactional Leaders Controlling ? Chapter 14 Managerial Control Control – a process that directs the activities of individuals toward the achievement of organizational goals Bureaucratic Control Market Control Clan Control 4 Steps of Control Systems Setting Performance Standards Measuring Performance Comparing Performance Against Standards & Determining Deviations Taking Action to Correct Problems & Reinforce Successes 6 Sigma Six Sigma is a quality management concept that has the goal of eliminating defects room a company’s product or service.

It involves adjusting various aspects of and around the product or service until it is consistently what the customers want and need. The term “sigma” refers to how far a product or service is from being “perfect”, free of defects (relative to customers’ wants and needs). This state of “perfection” or being as free of defects as possible is believed to be achieved at Six Sigma. Internal Audits & External Audits For the Internal & External audit information, refer to your textbook definitions and make sure you understand the differences and specific purpose of each one.

What people actually do at work is critical to organisational success, and it is no accident that the field of the organisational behaviour, the study of the structure, functioning of performance of organizations and the behaviour of groups and individuals within them(Derek Pugh,1972,p9), has become an important area of organization management.(John Arnold,1998,p221) . A person’s performance in an organization is influenced by several individual factors(Personality, attitudes and beliefs, perception, motivation) but in particular, by Motivation.

The dictionary defines motivation as “the reason why somebody does something or behaves in a particular way”(Oxford Advanced Learner’s Dictionary of Current English, 2000, p1128). Essentially the word motivation as used in the business management means the natural desire to get the job done(www.teambuilding.co.uk). This essay will illustrate the importance of work motivation and analyse some motivators which can increase personal performance and organizational productivity or efficiency.

1.1 General theories of motivation Maslow (1943), McGregor (1960), Herzberg (1966), the three people indicated their own theory on motivation and how it could be achieved, respectively. Maslow’s Hierarchy of needs (Fig.1.1) – He proposed five classes of human need, physiological, safety, belongingness, esteem and self-actualisation(John Arnold,1998,p247) . In Fig.1.1, from bottom to up, when one need is realized in certain extent, the next one turns to the most important motivator to derive people’s behaviour. For example, hungry, cold people will seek food and shelter first. Once they are well fed and comfortable, they will turn their attention to higher needs, for example the pleasure of being with colleagues.

Maslow’s Hierarchy of Needs Sauce: Andrzej Huczynski ; David Buchanan, 2001,p242 Herzberg hygiene factors- He proposed two categories for the needs of workers, one hygiene and the other motivating factors. He thought if the hygiene factors were poor, the motivating factors would not work. The hygiene features contain mainly of good working conditions and a sufficient break. The motivating factors include responsibility and career advancement for those who deserved it.

For instant, at Ford Motor Company, workers are given a 15 minute break to play football or various other activities because the company provides these facilities( www.ford.com.cn ). This obviously motivates the workforce. It helps them to relax before they must continue their duty. This also occurs in the Japanese firms which have a high motivation rate. McGregor’s Theory X and Theory Y – We can look his theory as that two different managers motivate people in different ways. Manager X thought workers were motivated by money rewards and threats of punishment. While manager Y assumed people were motivated by needs. Both of them can be correct in adequate extent and certain ways.

All these theories describe an overview of motivation and provide us possible explanations for some human behaviour. 1.2 The importance of work motivation A key to a successful firm is a motivated workforce. Staff motivation should be a high priority to most business organizations, because low motivation can cause many problems. First of all, with low motivation nothing will improve without anything being done, therefore the situation will gradually deteriorate.

Secondly, low motivation could cause a poorer level of customer services. Problems regarding quality, high staff turnover causing recruitment problems and ultimately sales will drop. For a retail company, as more and more customers are affected, its brand reputation is damaged. ASDA’s statement regarding motivation is “Getting things done, with and through others, willingly and well.” ( www.ASDA.co.uk) To a travel agent, if they were not stimulated to communicate and explain to customers’, sales could fall. Customers would identify these firms as unreliable or inhospitable.

We know now work motivation is an essential aspect of organizational behaviour. However, how the work motivation influence employees’ performance and productivity in actual work? Through analysing the factors which impact motivation and job satisfaction, we will find out how to motivate our staff at work. 1.3 The factors impact work motivation and job satisfaction Long-term research has found that the single greatest predictor of longevity is job satisfaction. Work is one third to one half of a persons’ lifetime. If failed, the mental and physical effects are enormous.

Job characteristics including skill variety, task identity, and task significance, lead to psychological conditions in which leads to increased motivation, performance and then job satisfaction However, motivation at work stimulates the interest of a person in an activity. Goals motivate and guide workers’ behaviours. Specific goals are better than general goals and little difficult goal is better than easy ones (John Arnold,1998, p258).

The degree of expectancy determines how much effort is paid. People will work hard if they expect the effort will pay off. Increased job enrichment leads to high motivation. For example, in factories, it is important to have an enthusiastic staff because most job are generally very repetitive. On the contrary, stress on the job reduces motivation and productivity. The specific needs to achieve and accomplish motivate people. Recognition and responsibility also help in motivating people to perform at their maximum ability. Actually, motivation at works is very complex because there are multiple relevant elements operating at the same time. We will emphasize to analyse some motivators applied in practical organization management in chapter 2.

2.1 Explanation of managers’ task from aspect of motivation “Manager work involves a double essential task: managing others at the same time as managing themselves” (Watson.1994, p12). As a manager, managing others means serious administration work, such as holding the confidence of the people who you have authority over, showing your people how to do things in right way, keeping your team in high efficiency (www.isma.org.uk ). When you executive your management strategy, you are managing yourself as well. From the aspect of motivation, it also can be described as when they motivate their employees, they need have themselves motivated at the same time.

2.2 Motivators Many people believe that they are motivated simply by money, however this is not entirely true. There are many other factors like the workplace and the need to be appreciated for their work. For Malsow’s theory (Malsow 1943), pay is the motivator only when people stay at the lower levels of the hierarchy of needs. I believe that motivation is having a clear gap between getting employees to do something and getting them to want to something. So here I want to illustrate motivators in increasing staff motivation and result higher productivity or efficiency in two aspects of financial and non financial.

2.2.1 Financial Motivators Money, and the way it is paid, can affect motivation to work(see Figure 2.2.1) When people’s needs stay at the lower level ,such as food ,drink and house, money no adult is the best motivator to increasing their performance in work. . Performance-related pay (PRP) has been tried in many organisations( John Arnold, 1998, pp264). Paying extra money for jobs with difficult hours will usually encourage people to apply for the work.

A fair bonus can be used to persuade workers to stay in the organisation for a long period of time(see figure 2.2.1). Though employees may not want to work longer than their contracted hours, they can often do so by receiving a higher rate of overtime pay(see figure 2.2.1). A perk is a payment instead of giving money, the employer might provide: cars, health insurance ,discounted products ,first class travel. It is often cheaper for the employer to provide goods rather than the money to buy them with. A good perk will make an employee reluctant to leave the business. In some major companies, human resource department prefer to reward the staff by perks to meet their motivating target when they are informed there will be no wage increasing that year.

Hollinshead et all (1999) mentioned that the increasing size and complexity of work organizations shifts in the power of relations within politics and industry, changes in social values, rising aspiration, weakening of traditional attitudes towards officially constituted governance. These are among the factors which are sometimes said to require mangers to develop a new ideology and new sources of legislation if they are to maintain effective control.

Bennett(1995) adds that the best way to achieve consensus and long term stability in management / workers relations is for management to recognize conflicting interests , to negotiate compromises, and to balance the demands of various groups. Idea of pluralism basically recognises the different interests group working together for archiving their goals. While on the other hands Hollinshead et all (1999) further mentioned that pluralism assumes a roughly even balance of power between various interests groups. This fails to recognize that in many employee relations situation there is a dominant participant possessing the power to impose its will on the other side.

Radical(Marx): This approach condemns pluralism for incorporating labours into the capitalist system. It also examines the social structures and the causes of conflicts rather than measures for containing them. According to the Marx under capitalism the employee relation is founded upon inequality. Its does not believe in a consensus based upon shared interests. In employee relation this is represented by the opposing interests of labour and management. Conflict is there fore endemic in the workforce and is hidden only by active programmes of obscuring the realities of gross inequalities of power, control, and reward.

Government policies and HRM

Gennard and judge (2002) argued that the government’s economic and legal policies have major implications for the outcome of employee relations activities. If economic policies are directed towards the creation of full employment and the maximizing of economic growth , this weakness the bargaining power of the employer relative to that of the employees. In an expending economy the demand for labour services increases, causing the price of those labour services rise. On the other hand if macro economic policies are directed at restraining economic growth the demand for labour services falls resulting perhaps in redundancies and rising unemployment in such circumstances the balance of bargaining power of the employer strengthened relative to that of the employees .

If government introduces legislation favourable to employer’s interest for example by restricting the circumstances in which trade unions trade may instruct their members to undertake strike action with out employers being able to seek redress through the court. In this sense the bargaining power of employers relative to employees is also strengthened. Similarly if government introduces legislation favourable to the interest of individual employees and trade unions the bargaining power of employees relative to employers increased. The implementations of technologies also have impacts on the relative bargaining power of employees and employers.

Management styles

there are three major schools of thought about management styles, classical, human relation , and contingency each has got its own particular implication for the procedure of employees relations. The classical school has macro and micro dimensions. The leading writer on the latter micro dimensions of the classical approach was F.W. Taylor (1857-1917).According to Taylor managers should plan, standardise, direct, and closely supervise all the workers’ efforts, leaving little discretion for individual operatives to exercise discretion. Job specification should be clear, simple, precise, and logical. As the application of scientific management methods was expected to raise workers incomes to high levels, its advocates did not believe there could be any fundamental conflicts of interests between management and labour.

The workers it was assumed would willingly accept the system. Workers are given the opportunity to earn high wages which are assumed to constitute the employee motivator. Taylor believed that management and labour would have to recognize the existence of common interests in achieving higher productivity, and thus not engaged in quarrels and industrial disputes over relative returns to capital and labour. While on the other hand there are many problems in this approach.

Bennett (1995) mentioned that in fact organized labour and many individual workers did not share this view and many serious industrial disputes followed introduction of Taylorisam especially in Briton and USA. Traditional work organization practices where employees themselves determined how work should be completed were abandoned. Also Attention is focused on efficiency at the workforce rather than at higher levels within organization. Bennett (1995) mentioned that at macro dimension of classical approach there is Formal rules and procedure and a tall hierarchy crated by narrow ps of control.

Also a clear line of authority running from the top of the organization to its base, Unity of command and management decision based on the expert advice received. Employees of an organization of this classical approach are expected to adopt a passive attitude, to do as they are told and consciously to fit in with the system .management seeks to provide security of employment which is a paternalistic way can improve employee relation. Organization charts, precise job description and formal rules regulation moreover can encourage parochial attitude among employees and discourage flexibility. Ritualistic work routines may be accepted by employees’ representatives but the detailed minutiae of these routines can become ends in themselves and discourage workers from exercising initiatives and wanted to become fully involved in the work of the enterprise

Possibly the classic approach which is unitarist in perspective was suitable for the nineteenth and early twenty centuries but is not suitable for today complex and fast growing business world especially wherever interpersonal relation and possible conflicts of interest are involved. Human relations approach Bennett(1995) argued that by this approach organization should be constructed to accommodate the social and human needs of employees rather than expecting individuals to fit into a predetermined organization form. He further mentioned flexible organization structures with overlapping responsibilities, employee participation in decision making, and joint determination by manger and subordinate of the later target.

The implication of the HR approach for employees relations are obvious worker participation in management decision, sound employee communication within enterprise, team work and so on. While on the other hand Bennett(1995) mentioned that this approach have been attacked for failing to recognized the inevitability of conflicts of interests in business affair and also overestimates the motivation , the desire to participate in decision making and the occupational self awareness of many employees. Also this approach has little concerned about the influence of trade unions on employee attitudes and behaviour.

Contingency approach This asserts that any attempt to apply exactly the same approached to the solution of all employees’ relations problems regardless of the particular situation surrounding each issue is doomed to fail. Each set of circumstances is unique so that according to this approach need to be adjusted as situations change. Examples of factors that might underline specific employee’s relations situation include the nature of the work undertaken by employees whether it is repetitive or interesting, skilled or unskilled. Whether employees have similar backgrounds, attitudes and abilities. Also the degree of confidence of the work force in management competence and concern for employee’s welfare and technological environments. (Bennett1995)

While on the other hand Bennett (1995) also mentioned that a certain style is adopted in one situation but different styles in others management may appear inconsistent in this approach. Also he mentioned that Individual managers may dislike altering their approaches and modes of behaviour as circumstances changes. Also sometime a technology or set of working conditions make its impossible to use something other than a single approach.

Employment Law and HRM

From recruitment to departure , every act of employer is measured against a particular legislative standard. (Gennard and Judge 2002.P 91) employment law has evolved a lot in last 40 years and today it covers almost every aspect of employment. It is very important for a HR practioner to have knowledge about the existing employment law as well as the proposed changes in law which might become an act of parliament in near future. There are many recent changes in employment law. Employment law 2002 and employee relations act of 2004. HR practionar should also be aware of equal opportunity and race relation act of 2000 as many law suites in recent history suggest that perhaps management did not had the idea of the implications of its action neither they were aware of different issues and legislation about equal opportunity.

Legislation have included the right to request flexible working from parents with young children, extended maternity and paternity provision, new anti-discrimination laws, working time regulation, disability discrimination act, sex discrimination act, race relation act, age discrimination act, equality regulation, statutory union recognition etc. There are two source of law one is legislation made by governing party. And legislation that’s drive from EU directives. It is important to understand this that UK parliament is the source of the law with which employment relation person has to be concerned even though the actual legislation might be directed by, or influenced by EU. (garrand and Judge 2002).

According to CIPD and Lovells survey report (June 2005) that majority of organization see employment law as making a positive contribution to employee relationship and increasing employees sense of fairness and trust in their employer. While on the other hand some employers have some concerned about these legislation issues. Also this survey report shows that most of the employers believe that these employment regulations have a positive impact in supporting their strategic HR and business goals. Also helps to reduce the number of employment tribunal claims also contribute to a reduction in the number of formal disciplinary and grievances cases.

But the other hand some organization believes that these legislation are unnecessary red tape. n my personal view these employment laws has certainly helped employees and employers both to actually understand their duties and role in an appropriate manner and these laws has also helped a lot to give every person a fair chance to progress. if we take example of the introduction of the right to request flexible working that majority of groups shows that this helps in improvement in staff retention, improved morale, reduction in cost and reduced employee absence.

All these changes in Law makes employee relations even more essential, Different organizations has different approach towards employee relations according to their situation and needs. There can not be one universal model which describes good employee relations practices or strategy but there are certainly theams which can be incorporated with in a business strategy itself. As employee relations also has a strong business case good practices in employee relations can help organizations to work without conflict and they are also helpful in order to retention, job satisfaction, motivation and performance of employees. Good employee relation practices can also be used as a marketing idea, as it gives organization a better public image.

Employee relations is more sort of a philosophy rather than a management tool it is a matter of concern for any organization and if we are to manage people in a fair unbiased way we need to incorporate idea of employee relations into our management style. Organizations ultimately have the right of redundancies, dismissal and other procedures but all this should be done in a manner which is transparent and fair.

Employees perception of an organization has to be of a fair place to work where he/she gets the fair treatment. HRM becoming a employee advocate may not be a possibility in near future but by the advancement in technologies day to day HR work load is reduced, (though while using any technology we need to keep in mind the diversity issues as well. As most of the first generation HR Soft ware treated every one as same). Arguably HRM today can perform many tasks which was not possible few years ago and if HRM is to Evolve from traditional personal, to strategic business partner it has to be the effective voice for Human Resources in strategy making and governance, as well as on operational level HRM has to put the idea of employability into practice through training programs.

Bibliography.

1. Philip Lewis , Adrian Thornhill , Mark Saunders Employee Relations: Understanding the Employment Relationship. FT Prentice Hall.

2. J. Gennard, G.Judge,2002, Employee Relations,CIPD.

3. Hollinshead, G., Nicholls, P., Tailby, S. (1999), Employee Relations, Pitman, London

4. F.W taylor Principle of Scientific management 1967 New york. Norton

The human resource development focuses on the enhancement of skills and knowledge of employees which are both necessary in various work situations. Also, it maximizes the importance of the human factor in the organizational structure. In recent years, the effect of technology and organizational change in the labor force has increased tremendously. For example, the increase in the use of computers and internet have increased the demand for workers who have the skills and knowledge that match the technological and organizational changes within the organization (Stavrou-Costea 2002).

To achieve organizational success, one of the important issues in human resource department (HRD) that needs to be addressed is the implementation of new technologies. In line with this, dealing with other factors should also be looked at such as additional company training because the organization and the employees have to adopt with the changes entailed by the different work responsibilities in order to match the skills needed for specific jobs and career opportunities (Stone 2008). Organizational change is another issue in HRD that needs to meet the new demands in the industry.

A company should have efficient and productive workforce because organizations that are not prepared to face changes will be subjected to several tribulations that can challenge their survival and position in the global buisness environment (Garavan et al. 2001). HRD is accountable for the performance of its employees. HRD will be held responsible if productivity will decrease. This can result to stress and anxiety of employees who are doing their mandated tasks and duties in order to adjust to new organizational changes (Doorewaard & Benschop 2003).

According to Bellou, it is obvious that uncertainty from change, both favorable and unfavorable, produces stress and ultimately can affect opinion, interpersonal relationships, and the productivity of the employees (Bellou 2007). Therefore, HRD have to deal with these changes. They must be aware that changes are induce modifications, so it is necessary to make clear and direct communication on how these changes will benefit the employees in the organization. If this is not implemented and executed well, it can result in the acceleration of turnover and absenteeism (Schraeder & Self 2003).

Dealing with organizational change should be directed towards improving the performance of an organization and the people behind that organization. Therefore, the main focus of the HRD should be on the development of an efficient superior workforce in order for the organization and the individual employees as well to effectively accomplish together their work goals.

List of References

Bellou, V. (2007) ‘Psychological contract assessment after a major organizational change- The case of mergers and acquisitions. ‘Employee Relations [online] 29, (1).Available from http://www. emeraldinsight. com [20April 2008]. Doorewaard, H. & Benschop, Y. (2003) ‘HRM and organizational change: an emotional endeavor. ‘ Journal of Organizational Change Management [online] 16, (3). Available from http://www. emeraldinsight. com [20April 2008]. Garavan, T. , Morley M. , Gunnigle, P. , & Collins, E. (2001) ‘Human capital accumulation: the role of human resource development. ‘ Journal of European Industrial Training [online] 25/2, (3/4). Available from http://www. emeraldinsight. com [20April 2008] . Schraeder, M. & Self, D.

(2003). ‘Enhancing the success of mergers and acquisitions: an organizational culture perspective. ‘ Management decision [online] 41,(5). Available from http://www. emeraldinsight. com [20April 2008]. Stavrou-Costea, E. ( 2002) ‘The role of human resource management in today’s organizations: the case of Cyprus in comparison with the European Union. ‘ Journal of European Industrial Training [online] 26, (6). Available from  [20April 2008]. Stone, R. J. 2008, Managing Human Resource (2nd edition). Brisbane: John Wiley & Sons.