Executive Summary
Aegis Electronic Group Incorporated has been experiencing stable growth since 1989. However, industrial and economic shifts affecting its operations have led the company to evaluate its policies and practices to meet goals for expansion. Problem areas revolve around training, performance, management and systems analysis. Recommendations targeted areas of personnel motivation, job design and change management to prepare the company for expansion.
1. MACRO Problems (Cause) of Aegis Electronic Group
The MACRO problems of Aegis Electronic Group Incorporated cover the four general areas of organizational behaviour management, particularly management and employee training, organizational performance, organizational management including the improvement of output quantity and quality as well as customer satisfaction, and systems analysis.
First problem that becomes apparent from the study of the company for the past nine months is the lack of a directed and efficient personnel training in the different levels of the organizational structure of the company. Since, the company is seeking to expand its operations after a long time of stable operations, the organization needed to implement a plan for training and promoting employees to managerial position and seeking new employees to take the vacated positions or expand a working group. However, there was no solid plan or preparation for the change in the organization structure. It was apparent that the members of the organization were not previously apprised of the change to draw their cooperation in achieving the expansion goals of the company. Lynn, the general manager plan to promote an existing employee for managerial work, but a senior member of the sales team declined the position. This implies lack of sufficient motivation since the common practice is to accept an opportunity for career development both in terms of financial gain for the bigger bulk of work and greater responsibility and affirmation of value given to a personnel leading to a sense of loyalty and belongingness to the organization. This could also mean lack of preparation and grooming of personnel for career development.
Another problem related to training is the slow process of knowledge and skills transfer to new personnel. It takes at least a year of training before an employee can produce output at an optimum level implying the vulnerability of the company to sudden changes in the organizational structure. The company recognizes that the loss of experienced personnel would adversely affect the performance of the company but it would also take time before new members become fully integrated into the organizational structure. Since, the chosen existing member of the organization declined the promotion offer, the general manager had to hire externally. Bill, experienced in middle-level management work, took the job of sales manager, but it becomes apparent that it would take months before he is able to master his tasks. Hiring new employees is expected to be difficult without a sales manager experienced in the dynamics of the organization.
Second is the stagnated performance of the organization. Since its inception in 1989, the company has experienced continued profitable growth but without setting an impressive record. The company has not built a strong position to absorb the effects of any economic downturns in the market. In 2001, the company had trouble due to both industry and economic factors, leading its top management team to evaluate their existing practices. Although, the company survived, there was a need to reassess the organizational management policies and practices of the company to optimize the performance of the organization through resource maximization while expanding the company to another state.
Third is the lack of a problem-directed, flexible management practice, which should enable the organization to achieve improvement in performance in terms of quantity and quality of work together with customer satisfaction. While it is true that Lynn, holding various positions at different times was able to master the various aspects of operations, no other personnel has done the same thing. Company personnel are limited in knowledge and skill only to their particular tasks, either sales or operations without any expertise of the other aspects of the job so that the lack of a strong manager to tie the work of these two areas jeopardizes the entire operations.
Fourth is weak systems analysis, which should enhance work efficiency and personnel attitudes to their work as well as develop assessment measures and measurable goals applicable to the various units of the organization. During the determination of the goals of the organization, the company practice a strictly top-down communications management giving no concern over employee feedback and suggestions. Eliciting the participation of employees in organizational change is importance to affirm their role in the organization and determine details and problems, which top level management, may not be able to perceive. Implementing performance standards would identify the level of individual and aggregate performance of the members of the organization and problem areas.
2. MICRO Problems (Symptoms) of Aegis Electronic Group
Due to the MACRO problems arising from the existing organizational management of the business firm, specific problems manifest in various areas of the organization.
Due to the lack of directed and efficient personnel training and the slow process of knowledge and skill transference, there are a limited number of personnel, which cannot support the expansion program of the company. If it takes at least a year to complete the training program leading to people working at an optimum level, this means that in 10 years of operation the organization only expands its personnel by a handful of people. Based on company reports, the organization has twelve employees after 10 years of operation. This means that the company performance also remains at a uniform rate, unless the company has room for enhancing the performance of their existing employees to support further growth.
Stagnated performance of employees has not helped the company build a strong position in the market because it does not have enough resource-base to absorb any major business challenges. This caused the company to be in a vulnerable position due to internal and external factors so that any changes in the structure of the organization would negatively affect its performance while shifts in industry and economic factors would also adversely affect the company.
The bare and minimal management practice of the company of designating all aspects of decision-making and management initiatives to the general manager does not help the organization in the long term due to the dependence that developed towards the general manager for the organization to function. Decision-making and innovations depended upon the general manager. This level of dependence disabled the company after a new sales manager was hired. Communications between the sales and operations units came at a stand still while decision-making and innovation ceased.
Weak symptoms analysis caused the company to be unprepared for the effect to its operations of the changes that occurred in the organization. The company was not able to anticipate the difficulties that the new manager would experience in adjusting to specific operations of the company. It also failed to anticipate the problems resulting from the various levels of adjustments that managers and employees had to go through, from redirecting communications between the new sales manager and the operations manager to handling decision-making and innovative actions within the specific working units. The result is the resignation of the new sales manager and another member of the sales unit.
3. Recommendations
To address these problems, the company has to consider various aspects of organizational management. First focus should be on enhancing motivation (Randall 2004) for the personnel in terms of material and non-material rewards. Material rewards includes salary, bonuses and other monetary and material things while non-material rewards involves improving the working environment and the enhancing the close working relationship of the members of the team and between the sales and operations teams. This will enable the company to encourage optimized output from its personnel as well as provide incentive for highly skilled new employees.
Second focus is job design that encourages innovativeness and decisive action of both managers and team members (Goffee 1999; Miner 2002). These skills enable the sales and operations teams to handle problems occurring in their units and innovate on ways of improving their team while enhancing communications with the other unit. This program would draw the active involvement of personnel in achieving the goals of the organization while they also fulfil their personal objectives.
Third focus should be on change management, the analysis and administration of internal processes caused by organizational variables (Randall 2004; Sims 2002), especially since the company is expanding its operations. Change is both a cause and an effect. It is a cause because it creates a momentum for other changes to occur and it is an effect because it is caused by a certain stimulus. (Buchanan & Badham 1999) In implementing change, it is important that the organization be on top of the process anticipating possible problems and addressing these as they occur.
4. Timeframe
Plan/Action
Timeframe
Development of Personnel Motivations System
Immediate Action
Actualization of Personnel Motivation System
Immediate Application
Changing Policies on Job Design
Long Term Action
Implementing Change Management Principles
Long Term Action
Conclusion
Aegis Electronics Group Incorporated faces several challenges in relation to organizational behaviour management. However, tools are available to help the organization address its problems and redirect the organization towards its goals. These tools enable the organization to strengthen its capability and position internally and externally allowing it to look towards expansion
Credit:ivythesis.typepad.com
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