Romero Ltd Management - Essay Example

? Occupational Psychology High Performance and the need for an ever increasing productivity rate has become the prime focus of many organizations like Romero Ltd, a multi-national firm contributing towards research and development in the field of medicine and pharmacological products. In this era of cut-throat competition, where demanding high profile clients like the ones Romero Ltd deals with, have a fair number of alternatives to choose from, indicators for performances below the expected levels can threaten the company’s standing. However performance and productivity are essentially dependent on the organizations members i.e. the employees. (Kakabadse, Bank, & Vinnicombe, 2004.) With the external pressures and the level of competition in the market, many companies strain their employees to work beyond their capacities or fail to address issues relevant to job satisfaction in their workers, which in turn has its consequences on the company’s performances and productivity. (Roberts, 2007) An investigation into the issues of concern the management at Romero Ltd is facing leads us to the realization that the company faces problems at two crucial dimensions of the organizations working setup. The first concern is regarding the business strategies adopted by the firm and their sustainability. There seems to be a lack of innovation and creativity and the original motto of the organization seems to be lost in the execution process. (CIPD, 2012)This directly influences the client and company’s relationship and becomes the prime focus for senior management aiming to maintain the company’s high profile market. And the second concern is regarding the performance of employees, which has been accounted for in terms of absenteeism, turnover and increasing costs of hiring and training new employees. Further investigation leads us to identify the absence of mutual trust between the management and employees and a serious lack of concern for the health and wellbeing of the workers, with long working hours and an inconsiderate attitude towards the employees personal life. (Haworth & Iso-Ahola, 1997) Although apparently belonging to two separate themes, the above stated issues have the same root cause; mismanagement of the organizational culture. However, the concerns faced by Romero Ltd have been frequently observed in many organizations, leading to research and investigation into the causes of such behavior in employees, remedies to ensure better cooperation among workers and employers and interventions to ensure achievement of the organizations goals with homogeneity of beliefs running throughout the ranks. (Brown, 1998) Thus an inquiry into the studies conducted on these issues will help identify the steps to take for the improvement of the organizational culture at Romero Ltd, for the reduction of absenteeism and turnover as well as the enhanced performance as a team. An organization in its essence is a team striving to achieve a set of goals. If the efforts of the team members are not in unison, or if some of the team members lack the motivation or understanding to achieve the goals, the performance of the entire team will be affected. Thus organizations are structured around leadership that motivates and keeps in check the employees assigned to them, minimizing the hindrances in the achievement of the desired results. However a factor that affects the working in an organization more than the framework of the organizational structure is the orientation of the organizational culture. (Iivari) “Organizational culture is the distinctive norms, beliefs, principles and ways of behaving that combine to give each organization its distinct character.” (Arnold, 2010) How the ‘character’ defined by an organizational culture influences the inter-relationships of the employees, the goals of the organization and the overall working environment can be explained with the help of four distinguished models of organizational culture namely Power Culture, Role Culture, Achievement Culture and Support Culture. (Iivari) Each of these has advantages and disadvantages, and is distinguished on the basis of the degree of formalization and centralization in it. 1. Power Culture Dimension: Mostly seen in large organizations, the power culture is strongly centralized around the most influential people. The authority for decision making required for the execution of the tasks is based on the proximity to the power source. (Brown 1998 p66) This creates an environment conducive to favoritism and fear, with a negative impact on the goals to be attained by minimizing the input differing from the leaders’ opinions. However in crisis situations such teams work in cohesion, even though their success is entirely based on the ability of the influential group. (Brown 1998 p67) 2. Role Culture Dimension: In the Role Culture the work carried out is based specifically on the job description. This is the most secure culture with strong formalization and centralization, a group of senior executives to overlook the accomplishments of tasks that lead towards the ultimate goals. However this leaves minimal space for creativity beyond an individual’s assigned role, or the defined procedures of attaining the desired goals. (Brown 1998) In such a culture the organization works like a machine and the employees like parts. 3. Achievement Culture Dimension: The Achievement culture favors working with the objectives well defined and the goal to be achieved in the form of targets. The efficiency of an employee is based on his success of this achievement, rather than the simple execution of an appointed task. This breathes energy and motivation into the work force as authority and influence are both based on success. Brown declares that such a system can be highly successful in competitive markets with a greater margin for creativity and innovation. Here the individual employee has a relative degree of freedom to go achieve the targets in a more personalized manner. (Iivari) 4. Support Culture Dimension: The Support Culture is both informal and decentralized, with the organization working as a team with its members mutually supporting each other to address the procedures necessary to achieve the desired performance levels. Such organizations are usually small, closely knit, with members mostly executing equal authority in their respective areas of expertise. The communication here is informal and it is easier for employees to make decisions, be innovative and express individual talents. (Iivari) For an organization like Romero Ltd, being a multinational company that deals with constant innovation and product development in a competitive market, it is essential that the organizational culture that characterizes it is efficient in its functions i.e. Reduction of Conflict, Coordination and Control, Reduction of Uncertainty, Motivation and competitive advantage (Iivari) as in the absence of a strong organizational culture employees tend to distrust the management and find it difficult to align themselves with the goals of the organization. With the evidence given, it is apparent that such an organization needs a lower degree of centralization and more of formalization to facilitate the communication between the employees and management, where the flow of ideas is two-way, and the management being aware can more effectively target the causes for reduced performances, turnover and absenteeism. With an environment more conducive to informal communication an achievement oriented organizational culture provides a more favorable setup for working as teams. The systematic division of an organization into teams responsible for the execution of a number of different tasks requiring focused attention as well as a range of expertise, all contributing to the greater goals of the organization as a whole, has been widely referred to as a milestone for increasing organizational effectiveness and performance. (Gunduz, 2008) For the effective working of these teams, however it is crucial to develop an understanding of the most relevant theories regarding the role of individuals in a team, as well as the role of the team within the organization. (Belbin, 1993) A team is essentially a group of people working together for the achievement of a well defined set of targets, and who are mutually dependent on each other for the performance of the tasks, based on their possession of complementary skills. The team has a role in the set-up of the organization i.e. it is either a monitoring team, an advisory or implementary team and is either formal or informal depending on the nature of the task. It may constitute of members of the same professional level across different areas of expertise, or individuals belonging to the same skills with hierarchical differences. (Gunduz, 2008) According to Belbin’s Team Roles Theory, an individual working in an organization is expected to behave in accordance with two role style; Functional Role and the Team Role. (Belbin, 1993)The Functional Role defines the functions the employee helps execute that contribute to the whole system, whereas the Team Role defines the role that the individual takes up as a member of the team. Belbin’s studies concluded the presence of three categories of roles that the members take-up depending on their personality types and expertise, for the execution of the tasks required of the team. These are namely Action Roles (shaper, implementer, completer finisher), Social Roles (coordinator, team worker, resource investigator) and Thinking Roles (Plant, monitor evaluator, specialist). (Gunduz, 2008) These categories of roles and their relation to personality types can help HR management determine the effectiveness of a team specified for a particular task. Furthermore it is imperative to design teams with no more than eight members with the necessary skill for the job, with freedom to make the decisions necessary for the execution of the task and the appointment of a task that requires team effort. Thus the performance of the team i.e. the output is dependent on the inputs i.e. the task assigned, the people appointed and the organization, and the process i.e. the communication and decision making ability of the team. (Gunduz, 2008) In relation to the placement of employees in designed groups with tasks they specialize in, the Human Resource Management of an organization has the responsibility for defining a system where the employee and the job assigned to him meet the requirements of the job and the capabilities and talents of the individual. This system ensures both the prevention of work related stress for the employee, and the achievement of the objective of the task. (Zin, et al., 2012,) Additionally the work load assigned to an individual, the nature of work, the hours given, the timings and support from the organization or employer in cases of ill health resulting from work related stress are critical considerations for addressing the issue of employee health and well being which has substantial consequences on job performance, productivity, absence levels and staff turnover. (Blaug, Lekhi, & Kenyon, February 2007) The job timings, intervals between long hours, the presence of break-out spaces and relaxation opportunities for the workers within their workspaces all count as measures to ensure a better environment to work in so the employees feel cared for. (Deery & Kinnie, 2004) Another major cause of work related stress is the difference between the effort needed and the rewards gained after the completion of work. (Blaug, Lekhi, & Kenyon, February 2007) This results from a lack of motivation and the inability of the management to encourage participation in decision making processes and achievement of their personal and collective goals. (Porter, 2003) “What the workers want most, as more than 100 studies in the past 20 years show, is to become masters of their immediate environments and to feel that their work and they themselves are important — the twin ingredients of self-esteem (Jahoda, 1982, p. 70) Thus the motivation of the individual to perform the task and the pleasure he derives from it, should be considered as factors for the design of jobs to help ensure job satisfaction and guarantee the sustenance of a “healthy organization”. (Blaug, Lekhi, & Kenyon, February 2007) This acknowledges the presence and reality of emotions in the workplace and the necessity to manage them to have a healthier and happier working environment. (Ashkanazy, 2000) Motivation is affected by organizational structure, culture and benefits. (Zin, et al., 2012,) The right balance between these and the workload, accompanied by counseling and minimization of communication gap with the employees can eliminate the causes for stress, and thus the lower performance of the organization. (STEERS, MOWDAY, & SHAPIRO, 2004,) The selection of the right individual for a job, which the second major task of the Human Resource Management leads us to the recruitment of new employees and the assessments needed to gauge the job performance capabilities of the individuals on the basis of various evaluation techniques. (Furnham, 2008) The selection of an employee has been defined as a Four- Phased process starting with Recruitment i.e. the process of attracting candidates for the job, Prescreening, Assessment and Induction i.e. trainings and assessments to help assign work role. (Chmiel, 2009) The Assessment phase is the most crucial in the selection process and special measures have to be taken to ensure validity of the evaluation techniques used. It consists of interviews, psychometric testing and assessment of work samples. Interviews: Interviews are an opportunity for direct communication between the organization and the prospective employee, clarifying many of the expectations and aspirations of both parties. Structured Interviews are a more valid approach to evaluation as the candidates rated on Behavior Anchored Rating Scales (BARS), the outcomes are mathematically computed, interviewers are trained, the questions asked are standardized and job relevant. (Chmiel, 2009) Psychometric Testing: Psychometric tests are used to analyze aspects of the personality and general intelligence that would ensure better job performance levels. Cognitive Ability Tests measure general mental ability which has been inarguably identified as the best single predictor of job performance i.e. efficiency, productivity, profit. (Furnham, 2008) Intelligence predicts the capability for performance, while personality analysis determines the personal factors required for tipping into those capabilities. Research studies adhering to the Five Factor Model of a personality concludes that, job performance can be predicted by the assessing the presence of conscientiousness, extroversion, openness to experience, agreeableness and neuroticism in a person. Personality Tests are thus conducted to measure the levels of these factors in the personality of the prospective employee. (Chmiel, 2009) Work Samples: Work sampling, involves either presentation of previous work examples or execution of tasks resembling the required job in order to assess the job performance skills of the individual. Work sampling cuts the prediction work out of the assessment and is a more valid form for simple tasks. Based on these evaluation techniques, future recruitment will guarantee the presence of a more capable work force which helps Romero Ltd fulfill the requirements of the competitive market without being stalled by unnecessary delays in acquiring new skills and techniques. More critical however is the generation and retention of a culture of mutual trust and motivation to address the common goals of the employees and management i.e. the maintenance of the productivity and performance levels of the organization with a competitive edge to the market. Effective planning and management on the part of the organizations leaders has the potential of radical changes within its organizational set-up, if the issues impeding success in any area are correctly targeted. Human Resource Management is the key to addressing most issues related to employee dissatisfaction and low performance ratings. The identification of an organizational culture that helps the workers engage more actively in the tasks required of them ensures better communication, innovation and creativity, flexible work hours, assistance to new members and distribution of the work-load to individuals with a greater motivation for the kind of work. Works Cited Arnold, J. (2010). Work Psychology: Understanding Human Behaviour in the Workplace. London: Prentice Hall. Ashkanazy, N. e. (2000). Emotions in the Workplace: Research, Theory and Practice. . USA: Quorum. Belbin, R. (1993). Team Roles at Work. Butterworth-Heinemann: Oxford . Blaug, R., Lekhi, R., & Kenyon, A. (February 2007). Stress at Work. London: The Work Foundation. Brannick, M. e. (2007). Job and Work Analysis: Methods, Research, and Applications for Human Resource Management. London: Sage. Brown, A. (1998). Organisational Culture. London: Prentice Hall. Chmiel, N. (2009). An introduction to work and organizational psychology : a European perspective. 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Motivation Model for Employee Retention: Applicability to HRM Practices in Malaysian SME Sector. Canadian Social Science Vol. 8, No. 5,, 8-12. Read More