Last updated: August 15, 2019
Topic: ArtDesign
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Managing Organizational Behavior

 

Executive summary

Change is significant in a company if owners or stockholders are not satisfied with financial results. EKEM Furniture Company has been in business since 1976. Since then they have been competitive in the business of making low-cost furniture in Australia. Their plant in Brisbane has a total of 800 employees from Melbourne and Sydney operations.

A strategic plan for the company is needed by the Brisbane pant to improve their workforce and work load. There needs to be some change within for the Brisbane plant to be in synch with the current growth and developmental goal of the company.

The Brisbane plant operations, management and workforce have been in observation for three months to check its status and to analyze which aspect of the plant needed improvement.

After three months of careful observation, there are many factors within the pant that needs improvement and reinforcement. The equipment needs improvement, the workers needs reinforcement and a boost of morale, the management needs to realign some of their principles.

Each component contributes to the behavior of the system. No component has an independent effect on the system. The key to making it work will be interdependency.

Though the traditional furniture’s being made still have their edge, it will be wiser to incorporate new ideas in the furniture making business. New avenues should be explored regarding the design of the furniture being made.

Proper management of business and financial risk is needed in order to ensure that an industry like the furniture industry and any company associated with it is here to stay. It is easy to acquire a debt but maintaining its positive impact in one company needs a lot of effort and planning. Business risk should be managed well and risk should be realigned in a way to cut costs; Optimized firm’s operating and financing costs; Trade off fixed charge and variable charge costs; Risk management; and when to increase and decrease risk. (Brackers, 2004)

A power map of the management team is needed to make everyone realize who answer to whom and to analyze if the power that they are imposing is within their job description.

Changing the perspective of employees to fit for one that is aimed at sustainable development is a hard task. Seminars could help in this where there could be exchange of ideas afterwards and that would help in inputting how sustainable development could be achieved and on how societal expectations could be meet.

It must be understood that everyone has a life outside of the business or company. It would help if employees could be felt that superiors are aware of it and that are more than willing to do something about creating a balance between work and private life. Better productivity within one’s work would be achieved if one make has less stress

 

Introduction

It is a competitive market and company owners must do everything to have a positive net value profit, because having a positive one means that the company is able to gain from the investment that they have made. All other things being equal, the better investment is the one with the shorter payback period.

Change is significant in a company if owners or stockholders are not satisfied with financial results. They will try to find avenue for improvement in order to make sure that the reason they are in business are met.

EKEM Furniture Company has been in business since 1976. Since then they have been competitive in the business of making low-cost furniture in Australia. Their plant in Brisbane has a total of 800 employees from Melbourne and Sydney operations.

For the past thirty years, business has been good but it took a slow motion growth and this has been happening for three years. Part of the business plan would be to close one plant, which is the Brisbane plant, and find someplace where labor will be cheap. This will affect a number of employees and the board of directors is still contemplating on keeping the plant if there are significant reasons to do so.

A strategic plan for the company is needed by the Brisbane pant to improve their workforce and work load. There needs to be some change within for the Brisbane plant to be in synch with the current growth and developmental goal of the company.

 

Procedure

One person will not be able to talk for the group if he has not experience what they are going through, even if it is just a small part that one would experience. The Brisbane plant operations, management and workforce have been in observation for three months to check its status and to analyze which aspect of the plant needed improvement.

The equipments used by the workforce were check. The status of the equipments was verified if they are still in lieu with the work load.

The status of the workforce was also documented. The benefits, rewards and punishments given to them were also analyzed. Their working habits and status were also observed. The workforce’s opinions were also gathered to create their aspect regarding the company.

The management’s system was also noted of. Like the workforce, their working habits and conditions were also observed.

The over-all condition of the Brisbane plant was also documented.

Findings

Though the factory is in good condition, some of its machines are out to date and needs modification. There is also some equipment that has been defaced by some workers and this really needs to be change because it will cause accident, which will mean greater shell out of capital for the company.

Anyone who gets into business has only one thing in mind, success. Success for one business depends on a lot of factors. Apart from its product, the management and the team behind it matters most. To make sure that everything is in order, one needs to check if its employees are able to meet up the standards set by the company.

Over-all the workforce is in a conscientious condition. They have a work procedure and processes that has been set by the management team. Though this is the case, some workers are not satisfied with the working condition that they are having. Some of them have negative opinion about the team that is managing them and the procedures that are being implemented. It was also noted that the Brisbane plant has a high incident of absenteeism. Because of this problem with the attendance of the workers, the production and the quality of the works are suffering. There has been document of low productivity and low quality of the products being produced. Also due to the limited number of workers present in a day operation, some workers are obliged to take more responsibility than they should have. Thus the number of incidents within the workforce also increases.

The management of the Brisbane plant was also observed. The management team is strict about the rules they give their workers. They have a strict regulation regarding attendance, working time and working load. There is an imposed deduction for every ten minutes that an employee is late. However, they have a bonus scheme that is based on the performance of the workforce, depending on what team they are in. This bonus is paid weekly but there will still be deduction on it depending on the behavior of the employee for that week.

Decision within the Brisbane plant is highly centralized. The management is autocratic in implementing what they think is best for the company. Only those in higher positions have a say on what and what not to implement regarding their operations. There is a power struggle within the management team. The organizational chart of the company needs to de develop to see who actually have power over whom.

 

Discussion

Culture set the business behavior that surrounds a corporation’s code of conduct. Factors that are included are the way we comprehend the environment, how we use time and power, how we perceive space and structures. Also included is our perception of collective and individual task or relationships.

Vital part of corporate governance will include the way codes of conduct are integrated in their operations. To make sure that a global company is competing ethically and effectively, one needs to make sure that the company’s code of conduct are made known to their employees so that they could incorporate it in their way of working (Wozniak, 1997).

Each component contributes to the behavior of the system. No component has an independent effect on the system. The behavior of the system is changed if any component is removed or changed. The system has an outside – an environment – which provides inputs into the system and receives outputs from the system.

Communication is a two way process. A good operations manager or supervisor must be an active listener and should encourage feedback. He should be able to identify what are communication barriers and what is the common cause of misunderstanding within their system. He must also know when to use effectively oral or written communications. In writing memos and instruction forms, a supervisor should be able to employ clarity, accuracy of information and conciseness. He must also be conscious of his grammar, spelling and punctuations as he does his paper. In orally communicating, he must have effective skills in making himself heard, in making the receiver understand his point or instructions. He must demonstrate flexibility and open mindedness in handling those under him and the big bosses of the company as well. He must understand that one’s behavior has an effect in the outcome of the project or the company. Winnet gave four vital steps in effective communication, in order to create a harmonious relationship between the boss and the worker. The four steps that he discusses were Attention, Apprehension, Assimilation and Action. If we would like that our message would reach the receiver, we have to make sure that we have the other person’s full attention as possible as it could be. Distractions must be avoided and genuine respect should be shown so that each will understand the other. Winnet paralleled apprehension with understanding. He suggested that there must be a free flow of input from the receiver to ensure that the right level of understanding is achieved. Merely understanding the message is not enough, this is where Assimilation plays a crucial function. It must be ensured that the information was assimilated in the own being of the receiver. It was also stipulated that this could go a long way to be definite about active participation, and harmonious cooperation, in the workplace. (Winnet) The final step for an effective communication according to Winnet, is Action. It is not enough that he message was conveyed, supervisors has to make sure that something was done by the receiver as to what message was conveyed.

An employee must be reinforced in doing the right thing at the right time. A leader must determine on why there is that. He is the one responsible in making sure that this is being done since he is the member of the management team that has a direct contact with the workers of the company. He has to show genuine concern to his teammates as well as making sure that they are meeting the goals and objective set by the company.  His specific team and their role in the company must be made aware as for them to know how they would properly function. They must have passion for their job to make sure that they are performing at their best.

Punishments and discipline should be effective. One way of making sure that this is effective is being fair in giving punishments to those who have faults, no favoritism in the part of the supervisor. This would make them feel that they are working in as a team and that they are responsible for their action and their teammates as well.

It must be understood that everyone has a life outside of the business or company. It would help if employees could be felt that superiors are aware of it and that are more than willing to do something about creating a balance between work and private life. Better productivity within one’s work would be achieved if one make has less stress and that one is rejuvenated from time to time to make sure that the workforce will still be able to give the company what is being ask for from them.

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Conclusion

Every company has their own strategy but the burden lies in properly executing this strategies. Chapman (2004) has concluded that almost ninety percent of companies fail in properly executing their strategies. Studies show that when CEO’s who have failed have been interviewed said that the thing that led them to downfall was the bad execution of strategies that they have formulated.

Any business needs an amount of risk and determination to succeed. The capital is one important factor that determines the future of one industry that is why it is important that the amount invested in any given company or business is carefully monitored if it is being use to the fullest and if it will augment to all the needs needed to make it. The capital of one company could be handled well if they have the right organizational strategies.

Proper management of business and financial risk is needed in order to ensure that an industry like the furniture industry and any company associated with it is here to stay. It is easy to acquire a debt but maintaining its positive impact in one company needs a lot of effort and planning. Business risk should be managed well and risk should be realigned in a way to cut costs; Optimized firm’s operating and financing costs; Trade off fixed charge and variable charge costs; Risk management; and when to increase and decrease risk. (Brackers, 2004)

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Recommendations.

Changing the perspective of employees to fit for one that is aimed at sustainable development is a hard task. Seminars could help in this where there could be exchange of ideas afterwards and that would help in inputting how sustainable development could be achieved and on how societal expectations could be meet. In order for there to have a change in the system, there still needs to be change in the behavior of the employees and stakeholders; this is what they need to remember if they would want something positive. Not all would readily accept this that is why implementers should have a broad mind and patience with everyone. This is about humans with emotions and thinking, they are not numbers and season that can be manipulated and predicted.

A power map of the management team is needed to make everyone realize who answer to whom and to analyze if the power that they are imposing is within their job description. It will be better to have abroad understanding of who is which to guide the company the way it should go, toward development. To make sure that one person does his job properly, the company needs to lay down job description for each employee that they have and check from time to time that this is being followed. Companies do this to make sure that there is no overlapping of jobs and that everything has been laid down for each worker. The level of asking by the company will depend on what is the position of the employee in one company

Though the traditional furniture’s being made still have their edge, it will be wiser to incorporate new ideas in the furniture making business. New avenues should be explored regarding the design of the furniture being made. It will do well for the Brisbane plant if they will hire someone who has a lot of innovative ideas that cold be incorporated.

These innovative designs will be advertise for advertisement will also play a crucial role in making these designs accepted by many. For the new innovations, a paying scheme for the customers could be  look on just to gather regular customers who will appreciate the products and at the same time tell its good points to people they know. This will be another way of advertising for the company and the plant as well.

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Reference

Brackers, Kevin. (2004). Chapter 13: Capital Restructure. Pittsburg State University. Retrieved

September 18, 2006  from http://www.pittstate.edu/econ/ch12326.html

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Chapman, Alan. (2004). Strategy Implementation and Realization. Farsight Leadership Ltd.

Businessball.com. Retrieved September 18, 2006  from

http://www.businessballs.com/businessstrategyimplementation.htm

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Corporate Accountability ; the Johannesburg Earth Summit. (2002) Friends of the Earth.

Retrieved September 18, 2006  from www.foe.org/WSSD/acctvsresp.html

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Howardell, Doug. 2004. Seven Skills of a Highly Productive Workforce. ACA Group. Retrieved

September 18, 2006  from http://www.theacagroup.com/improveproductivity.htm

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Winnet, Azriel. Communicating Effectively in the Workplace: Four Essential Steps. Retrieved

September 18, 2006  from http://hodu.com/business-communication.shtml

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Wozniak, Lynne. (1997) International Business Ethics: When a Corporate Code of Conduct is

Not  Enough.. Relocation Journal ; Real Estate News. Retrieved September 17, 2006

from http://www.relojournal.com/july97/ethics.htm

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