Managing Change at Coxs Container Company - Essay Example

MANAGING CHANGE AT COX CONTAINER COMPANY due: Problem identification In reference to Cox Container Company case study, the first problem facing it is the long-term leadership of one individual. It seems the organisation has a culture of managers as well as employees working in a department for too long. Secondly, the company embraces the system of promotion of shop floor employees to fill senior positions in the departments. In addition, the employees working for the company are from one ethnic group. The company matches with low-profit margins because of reduced margins as a result of stiff competition. Likewise, the managing director is faced with the challenge of making all the company decisions. It is also clear from the case study that the company faced change resistance from employees. In addition, the employees lacked the current skills and knowledge necessary to understand the budgeting system. This paper will analyse the challenges facing Cox Container Company and provide alternative solutions to the problems. In addition, the most suitable recommendations will also be proposed. Finally, the plan of action will be outlined on how the recommendations can be implemented. Analysis According to Huczynski & Buchanan (2013, p.6), organisational behaviour explains the conduct of individuals in a company. It is the social conduct of people that trigger them to act and live in groups. In order to maintain collaboration and attain goals, some form of structural associations has to be created. On the other hand, the organisation is a social system of co-ordination that is created to expand personal achievement that is aimed at goal attainment. The organisational behaviour is a reflection of actions and attitudes exhibited by employees in an organisation. From the case study, the organisational behaviour of Cox Container Company is developed by the fact that the employees are from the same ethnic background. From this perspective, the employees share same values and meanings held by the community, and this influences their actions. In addition, the culture is reflected in the attitudes and conduct of people or groups. A perfect example of how people share a common culture act is revealed in the operation department. In this case, the personnel working in the production department are seen to jealously to guard the independence they enjoy under their long-serving manager. The advantage of this form of organisational behaviour is that the company can attain its goals and objectives through staff loyalty. The individuals working in the company share a similar perception, therefore, minimising conflict. The disadvantage of this aspect of culture is that the company is at risk of organisational politics where the manager can use his power to manipulate the employees. The organisational politics refers to the use of influence and power that happens outside the formal organisational procedures (Huczynski & Buchanan 2013, ch 22). The politics mainly come from influential strategies employed to promote self-interest and its goal is to balance possible competing interests (Vigoda-Gadot & Drory 2006, p.331). Mr Abdul Aziz, the production manager, may influence the staff to resist the intended changes in the company. It is because the company has a culture where each department is independent and prepare their budgets for approval. The budget system is a threat to the managers who feel like their authority is being undermined. Mr Abdul Aziz exhibits his rejection of the system by failing to attend meetings and giving the managers in charge of the transformation a hard time by failing to co-operate. The system of employment through ‘promotion of shop floor employees’ may cause performance problems, hence should be reviewed. The Peter Principle is a concept of awarding the staffs based on their ability to specific job elements (Richards 2011, p.37). In this case, the employees are promoted to managerial positions. The repercussions of such actions could be deemed as a failure by the particular individuals to execute their roles as expected. It may be because the staff is no longer competent. In addition, the company can lack innovation and creativity which is important in the successful branding of its products. It is because the employees promoted are from within the company and are not exposed to other environments for a long time (Marchington & Wilkinson2012, pt 2). For instance, majority of the employees at Cox Container Company have worked for more than ten years. Therefore, if such an employee is promoted the company may lack contemporary skills in advancements such as technology. On the other hand, they systems work well for the company because the employees promoted are well acquainted with its operations and products. Depends margins as a result of competition can be as a result of the competitive market. In a competitive market, the theory states that the profit margins tend to be low and is seen in a normal rate of return. It is because the average cost is inclusive of the risk-adjusted normal rate on return investment (Hirschey 2009, p.435). On the other hand, the reduced profit margins can be as a result of suitable technology. The technology gives a business a competitive advantage in the modern world (Huczynski & Buchanan 2013, p.79). The type of leadership and decision making in the organisation is influenced by its culture. In Cox Container Company, the type of structure that exists is utilitarian. The company concentrates on completion of tasks and is structured in departments such as production and accounting. In regard to this, the company can be categorised as functional. From the case study, Mr Harold Cox is involved in making all the strategic decisions of the company for a long time. The style of decision-making reflected is ‘autocratic’. In this form of style, the decision maker depend on his/her judgement, knowledge, information and experience. In most cases, the leader solves the problem without consulting with other stakeholders or information. The autocratic style proposes that the leader has enough data to assess all the important options and come up with an efficient decision. (Huczynski & Buchanan 2013, Ch. 20). Alternatives Investing in staff and resourcing is significant for smooth running of the company. Staffing and resourcing refer to the selection and recruitment of employees. It will help the organisation to acquire new knowledge and skills that will boost its performance. In addition, this aspect resourcing and staffing is very helpful in amending organisational cultures. The resource and staffing will assist the organisation to achieve its objectives in performance, change management, staffing and performance (Marchington & Wilkinson2012, pt 2). In this case, the company can have new staff that has skills and knowledge that can boost the company’s performance. In addition, the company can get rid of incompetent staff that makes it lose much money in salaries Secondly, the organisational structure is very important for the company. The organisational structure gives the structure of groupings, responsibilities and outline how to coordinate the organisational aspects entirely. In addition, the organisational structure establishes associations among all the employees in a company. Furthermore, it defines the roles of employees to determine who are subordinates and the superiors. The organisational framework is created to give horizontal and vertical information channels. The communication makes it possible for information to flow from top management level to employees (Huczynski & Buchanan 2013, ch 16). In the case of Cox Container Company, the organisation structure would help to solve the conflict arising amongst the managers. The management process of the company is critical for its survival. An organisation is influenced by external factors and parties. Therefore, for a company to survive it relies on how it manages the external effects. The process of strategic management determines how the company copes with the external factors. The strategic management is the procedure of a cautious selection of suitable reaction to the environment. In addition, it is the process of continuation of development and standards of the skills necessary for inclusion of feasible transformation of a strategy. The management process is important because it will help Cox container Company to survive the competition in the market. In addition, the company can change its strategies in order to increase the profit margins. Recommendation The best alternative most suitable to the company is staffing and resourcing. The aim of staffing is to ensure that the company has enough numbers of employees to fulfil its objectives. The employees are employed to carry out various tasks and are expected to be capable of performing the tasks efficiently. There is a need to retain existing staff, sometimes to dismiss some and to recruit new employees to attain the objectives of a company (Marchington & Wilkinson 2012, pt 2). The aim of the performance is to make sure that the recruited employees report to work more days, willing to execute their roles and is well motivated. For this to be achieved there is a need to observe the group and individual performance and create ways by which they can be enhanced. In administration, the employment is formed and maintained according to natural justice, law and professional ethics. For this objective to be achieved there is a need to draw acceptable processes and other documents that pertain to employment of staff. These documents include disciplinary warnings, offer letters, job description and contracts. The change management ensures that suitable identification is provided to the importance of change in a company and that it is efficient management. The organisation operates in a vibrant milieu and hence the need for procedures by which it can evolve progressively in their culture and structure. With these elements in place, the company is capable of thriving in the market and generate optimum profits. The performance of the employees will improve since each will be allocated the tasks that they capable of performing. In addition, there will be no permanent culture that will dominate the organisation to act as an obstacle for change. The particular resourcing practices and policies will enable the organisation to achieve its objectives efficiently (Marchington & Wilkinson2012, pt 2). Plan of action The process that is used to develop, select and recruit employees in an organisation is known as human resource management. Therefore, the Human Resource Management department is in charge of the entire procedure. The first process would be to decide the kind of staff that is required. Secondly, is to select the most qualified personnel and finally to put them in the job and expand them. The most suitable practice model is ‘psychometric-objective’ that is a matching model. The model states that the ‘right’ people with the ‘right’ job, hence, attract job seekers who possess the necessary skills. The procedure examines applicants through interviews, tests or other ‘predictors’. It helps to determine how well they exhibit the significant necessities laid in person description that will allow the best match between person and job (Marchington & Wilkinson2012, pt 1). The process of recruitment involves the organisation and the applicants. The organisation makes the offer of employment, and the candidate decides to get into a relationship with the company. From the perspective of the organisation, the human resource professionals collaborate with line managers in the departments seeking to hire new staff. The line managers assist in designing the most suitable technique of selection and recruitment. In addition, the line managers know and comprehend the activities involved in a role. Likewise, it is important that the managers scrutinise if the new employee matches the rest of the team. The new recruits are investigated on the basis of experience and skills. The line managers also form part of the interview panel during the selection procedure. Their responsibility is to ask job-specific technical questions (Marchington & Wilkinson2012, pt 1). Different organisations take different time to plan and execute the process of recruitment. The length of time taken by the organisation is determined by need for the new employees. In addition, the availability of money to fund the process, the type of employer the company aims to be and the repercussions of the procedure. The entire company is affected by the recruitment process. The company benefits from the talent pool of employees who engage in managing and leading it in the future. The performance of staff is boosted as well as the attainment of organisational goals. On the other hand, the new recruits will take time to adjust to the company’s culture and values. In addition, the recruitment procedure requires much money and much time (Marchington & Wilkinson2012, pt 1). All in all, the best way to select employees to fill positions in an organisation is external recruitment. External recruitment means hiring personnel from outside the organisation. Although, it is time-consuming and expensive, the results will make the company stable and successful.  Bibliography HUCZYNSKI, A., & BUCHANAN, D. A. (2013). Organizational behaviour. Pearson. HIRSCHEY, M. (2009). Managerial economics. Mason, OH, South-Western Cengage Learning. MARCHINGTON, M., & WILKINSON, A. (2012). Human resource management at work. London, Chartered Institute of Personnel and Development. RICHARDS, G. (2011). Warehouse management: a complete guide to improving efficiency and minimizing costs in the modern warehouse. London, Kogan Page. VIGODA-GADOT, E., & DRORY, A. (2006). Handbook of Organizational Politics. Cheltenham, Edward Elgar Pub. http://public.eblib.com/choice/publicfullrecord.aspx?p=267577. Read More