Research Articles Base: Sample MBA Essay

Compare and contrast forecasting methods in operations management and explain how an organization uses these.

Compare and contrast forecasting methods in operations management and explain how an organization uses these.               Forecasting is a prediction of what will occur in the future, but it is an uncertain process. The purpose of good forecasting, like the purpose of all commodity operations methods applied to service industry, is to control or reduce cost. Good forecasting, more often, identifies costs or cost-saving opportunities that might otherwise be overlooked. It permits anticipatory cost control. It must be competently practiced in all the qualitative and quantitative ways possible in service industries, and will be particularly important in managing commodity operations aspects of service ( 1992).             There are two basic categories for the methods of forecasting – qualitative methods and quantitative methods. Qualitative forecasting methods are mainly subjective, opinion-based and judgmental – they are none the less just as valid, and can often be combined with mathematical models (2002). Quantitative forecasting methods are objective methods that attempt to model the relationship between demand and other independent variables (2002). Qualitative methods are used for long-term strategic planning. In general, long-range forecasting is undertaken by the top levels of management with the objective of predicting long-range trends and important turning points in the life cycle of our products. These demand forecasts are necessarily rather inexact and look only at very general, highly aggregated demands (1998). The method makes use of many techniques. This includes management judgment; expertise and opinion; market research based on surveys, demographics and focus groups; management, marketing, purchasing, and engineering knowledge of trends in their disciplines. One of the most effective methods of qualitative forecasting is asking the people responsible for sales to estimate likely demand. Often, people such as sales staff, retail shop floor staff, service providers and the like are the first line of contact with the customer. They will have an excellent understanding of short-term demand (volumes, mix, type, etc.) and the likely future trends. Aggregated, such data is extremely valuable and is often overlooked in many organizations ( 2002). Research concerning the needs and purchasing plans of both customers and potential customers is also a valuable source of information for qualitative forecasting. Information as to product and service advantages and disadvantages as well as possible modifications should be constantly monitored. In addition, this approach can also be used to compare the firm’s offerings with that of their competitors ( 2002). The Delphi method is another method of qualitative forecasting: these are a group of methods that seek the contribution of a panel of experts ( 2002).A series of questionnaires is developed and sent to several anonymous experts. Questions are developed for experts to specifically to assess predictions of future events. The answers are compiled and sent to all the experts along with a new set of questions to refine their responses. The process goes through several rounds until some of level of agreement is reached about the likely events of the future. The results of the Delphi technique are generally mixed. The technique has the advantage of utilizing expertise and knowledge as to future trends and changes. They are frequently used by organizations attempting to construct futuristic scenarios that extrapolate the implications of major changes in society ( 2002). Quantitative forecasting methods include time series methods and causal methods. This involves short-run decisions where there is a need for even more accurate and detailed forecasts of demand in order to implement production scheduling on a daily basis. Here lower-level operations managers are involved, and their forecasts are often based on actual orders already received. These managers must be able to revise their forecasts quickly and cheaply in order to act quickly in scheduling production, ordering materials, and so on (1998).             Time series methods are statistical techniques that make use of historical data accumulated over a period of time. Time series methods assume that what has occurred in the past will continue to occur in the future. Time series methods include moving averages, exponential smoothing, and linear trend lines. They are among the most popular methods used for short-range forecasting. In the time series models, time is the independent variable and demand patterns are projected against this variable in an attempt to predict future trends. Time series involves the collection of historical data such as sales patterns. This data can be broken down into its main constituent components: trends, seasonal, cyclical and random ( 2002). For forecasting purposes, trend and seasonal demand data is the most frequently modeled and projected in order to predict demand (although there is always a large element of uncertainty when trying to accurately understand the future).             Causal models are another type of quantitative forecasting methods. These are also known as explanatory or associative models. The forecaster attempts to use another independent variable (apart from, or in addition to time) with which demand, the dependent variable, has shown a strong past relationship (2002). This model offers us leading indicators of future trends. For example, over time (independent variable) the levels of childbirth (independent variable) may be correlated or related to the demand for baby food (dependent variable).             In choosing a forecasting model a prime consideration is the accuracy of the model. However, other very important considerations are the cost of preparing the forecast and the ease of using the forecasting model ( 1998). Only for long-range forecasts that are made infrequently is a very costly forecasting justified. A general principle of using any quantitative technique is that the cost of using the technique must be less than the savings that can be expected to result from the presumably better decision made using that technique. Thus, as the time frame gets shorter and expected cost savings get smaller, only cheaper forecasting techniques make sense. Also, the frequent updating of shorter-range forecasts increases the necessity for quick, cost-efficient forecasting. Credit:ivythesis.typepad.com

Compare and contrast forecasting methods in operations management and explain how an organization uses these.

Compare and contrast forecasting methods in operations management and explain how an organization uses these. Forecastin...

Pricing Method, Market, and Marketing

Pricing Method, Market, and Marketing Introduction Every business is finding innovative ways on how to increase the demand on their products and how to fill the missing gaps of their consumer loyalty. Different strategies are being implemented but there are only few recognized benefits. However, the firms that did not cease to encourage their people and system to improve will soon realize the progress. On when or how is the remaining question. Customer-Based Pricing System and Comparison on Cost-Based Pricing Method Pricing methods are applied by the firms in a tactical way where they can easily matched their competitors and accommodate the profitability (Harmon, Raffo, and Faulk, 2005; AARD, 2009). The customer-based pricing is also called value-based pricing method is applied by most of the firms to estimate the market value of the products as much as its various developments. The commitment of a customer-based approach in pricing is mostly on the development of the long-term pricing capital and creating long-term value for the customer. From its word, the pricing method is entirely based on the customer’s perceptions and focusing on capturing the value from a market segment. Firms invest in strategic planning can make better product decisions and development of the process by understanding how customers value their products, the alternatives or substitutes, and their buying behaviors (Harmon, Raffo, and Faulk, 2005). Albeit the customer-based pricing delivers the benefits in the companies, there are noted advantages such as the production costs and the pressures from the competitors may affect the pricing strategy. To implement its effectiveness, the firm should decide how to deliver the products, have value on discounts and other strategies (AARD, 2009). In the comparison of the customer-based pricing to cost-based pricing method, there are obvious differences. Cost-based approaches place the interests of the sellers over the interest of the buyer. The use of the cost-based system slows the raise of prices even if the profit and volume goals are already met (Harmon, Raffo, and Faulk, 2005). Cost-based pricing particularly based on the ingredients and cost of operation. Also, this includes the raw materials, transportation, advertising, wages, rent, and cost of the suppliers. Firms that applied the cost-based pricing ensure the accuracy because of the involvement of cash. However, same as the customer-based approach, the cost-based approach also recognize the disadvantages. It does not consider the customer demands and how its affects the prices and the existence of the competition have a significant effect especially when there are close substitutes (AARD, 2009). Market Segmentation In the industry of construction and mining, the companies that involved in the nature of work have limitations in application of the segmentation criteria. Most of the business transactions in mining and construction industry are planned and with proper timing for operation. In contrast, the companies are not using too much marketing strategies and the outputs are not subjected in low prices. Because they value most of the resources, operational cost, labor, machineries, and other related works, companies are using the cost-based approach. This type of approach help the companies to evaluate the worth of their finish output, including the materials and other requirements to finish the project and profits from the interest, all are added and subjected as the total cost. Marketing and IT In the traditional marketing perspective, the goal to achieve the success starts in determining on what would be the applicable pricing strategy of the company. The company will recognize the success through the return of the investment and meeting the profits (Harmon, Raffo, and Faulk, 2005). To fulfill all of these traits, the aid of marketing is needed. In the introduction of the technology, different organization that acquired appropriate technology, experience it efficiency. Because of the influence of the technology, sometimes the companies are competing on the process on how they created a product. In its application in the marketing, information can provide aid in the strategic direction of the business’s market. Different approaches are finally introduced to fulfill the philosophy of marketing. In the market, the value of the flyers, brochures, poster, or catalogues are decreasing because of the interactive campaign of most of the marketers (ANA, 2008). The mind-setting of the business leaders is on how to accommodate the customers and the potential customers in an easy way. The massive influence of the marketing already ruled over the internet or websites, online ordering (if the company is offering the kind of customer service), information provider and so on.        Conclusion Organizations must learn to balance the different aspect of the creation of business. On the other hand, the business should close its doors for other opportunities that might lead them to success. Sometimes, too much anxiety kills and the leaders might miss their chances. References: AARD, 2009. Methods to Price Your Product, Agri-Facts. Alberta Agriculture and Rural Development. [Online] Available at: http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/agdex1133/$file/845-2.pdf?OpenElement. [Accessed 11 Feb 2010]. ANA, 2008. The Continuously Changing Role of Marketing, Association of National Advertisers. [Online] Available at: www.ana.net/committees/getfile/1486. [Accessed 11 Feb 2010]. Harmon, R., Raffo, D., & Faulk, S., 2005. Value-Based Pricing for New Software Products: Strategy Insights for Developers. [Online] Available at: http://cpd.ogi.edu/MST/CapstoneSPR2005/VBSP.pdf. [Accessed 11 Feb 2010].   Credit:ivythesis.typepad.com

Pricing Method, Market, and Marketing

Pricing Method, Market, and Marketing Introduction Every business is finding innovative ways on how to increase the demand on their pro...

ESSAY ON CREATIVE DECISIONS FOR EFFECTIVE CHANGE

CREATIVE DECISIONS FOR EFFECTIVE CHANGE   Introduction As stated by Beverage (2003), major change is happening n most of today’s corporations. The presence of this continuous as well as overlapping change has become an approach of life in the corporate environment. Transformation and transition continues to shrink today’s global boundaries as well as push businesses to their competitive limit.  Leaders of the industries who want to get ahead in today’s market environment must learn to respond to a growing number of transitions in how they structure enteprisess, conduct business, implement technology, and relate to customers and employees.   Organisational change can be considered as a primary approach in realising the goals and objectives of any firms and industries, even as implementation is the sensible or physical steps of employing changes. Employees and their relationships are regarded as the major aspects to its successful execution, and sustainable mechanisms and efficient decision making are needed to achieve the development and improvement in the process.     Organisational Change Behaviour Changes are part of and a result of struggles between contradictory forces, also organisational change decisions practice is related with endeavouring to manage their competing requirement. To be able to determine the reasons there is a need to change corporation, it is first necessary to understand organisational structures, management and behaviour. As stated by Burnes (1996) these mechanisms of ideas are crucial to organisational change decisions in two respects. They give and offer models of how corporation must be structured and handled. Then they give and offer guidelines for judging as well as prescribing the behaviour and efficiencies of individuals and groups in an corporation. Meanwhile, Hardy and Clegg (1996) perceives that modern corporations passed by the association structures and as corporations improved and development, skills become highly fragmented and specified and positions become more operationally differentiated. It can be said that institutional change is one of the crucial factors in institutional success and failure (Appelbaum et al 1998). In this light, it can be argued that the effective planning and management of organisational change require careful consideration of the effect of decision making and structure change on middle managerial work roles and work satisfaction levels – to sustain their resistance, and maximise their commitment to the containing and accelerating pace of change within the corporation. Nickols (2000) give and offers a very useful framework for thinking about the organisational change procedure, one which is anchored on problem solving. Managing organisational change is seen as a matter of functioning from one area to another, particularly, from the problem state to the solved state. Diagnosis or problem analysis is generally acknowledged as essential. Goals are set and achieved at various levels and in different areas or functions. Ends and means are discussed and related to one another. Careful planning is accompanied by efforts to obtain buy-in, support, and commitment. The net effect is a transition from one state to another, in a planned, orderly fashion. According to Drucker (2000) change leaders and decision makers should have the willingness and ability to change what is already being done just as much as the ability to do new and different things.  It has been suggested that a set of decision making policies and practices that make the present create the future. On the other hand, Swenson (1997) focused on the system type components of a human systems organisational change decisions model.  They review the human systems theory and the dynamic relationship between the change agent and the target system.  As such, leaders play a crucial role in change implementation. However, it is said that these strategies are not enough for quality integration. Values, skills and most importantly, involvement of the members of the entire corporation must be part of the quality organisational change framework. The committed, authoritative and adaptable role of the management is also significant in establishing quality customer relationship. All the members of the company can only realise continuous improvement within any business corporation if good working relationships between and among employees is experience. To be able to function effectively with clients and customers, manufacturers of goods and products as well as service give and offer companies must be aware that success is first elicited inside the corporation. Good working relationships must be observed first within the company so that the whole business operation can answer to the demands of the business transactions with clients and suppliers alike. Finally, the importance of quality in client relationship has been recognised by companies worldwide and as part of organisational change process, all stakeholders are should be considered.   Reference   Appelbaum, SH, St. Pierre, N & Glavas, W 1998, “Strategic Organisational Change: The Role of Leadership, Learning, Motivation and Productivity”, Management Decision, vol. 36, no.  5, pp. 289–301.   Beverage, MW 2003, Slow Change in a Fast Culture, Illustration, Kirfland Ohio, 2003. Burnes, B 1996, Managing change: A strategic approach to organisational dynamics (2nd ed), Division: London.   Hardy, C & Clegg S 1996, Handbook of organisation studies. Sage: London. Nickols, F. (2004).  Change Management 101: A Primer.   Slobodnik, AJ & Slobodnik, D 1998, Change Management in a Human Systems Model: Four System Types.  Swenson, DX 1997, Change Drivers. Available. Online. Accessed [11/12/2006].           Credit:ivythesis.typepad.com

ESSAY ON CREATIVE DECISIONS FOR EFFECTIVE CHANGE

CREATIVE DECISIONS FOR EFFECTIVE CHANGE Introduction As stated by Beverage (2003), major change is happening n most of today’s co...

Consider why an organization might wish to utilize the concepts of Corporate Social Responsibility in relation to it’s choice of leaders, and the process of managing change

Introduction The two statements below will give clear emphasis of Corporate Social Responsibility as discussed by Lance Moir in his article, “What is Corporate Social Responsibility?” presented in the year 2001. The statements will integrate points that help in the understanding of leadership, the leaders for CSR as well as the processes of managing change.   “Business only contributes fully to society if it is efficient, profitable and socially responsible” (Moir, 2001, p. 17).    “CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (Moir, 2001, p. 18).     The Corporate Social Responsibility assumes empowerment in every organization’s resources and diverse roles to make known of the business practices and principles. This assignment will be dealing to comprehensive discussions and analysis in certain perspectives relating to CSR ways in connection to leadership, how organization choose leaders and what choices are best fitted to CSR effectiveness. There will also be discussion on the CSR in lieu to integrating as well as recognizing several change management, the process deemed valuable as put within CSR stance and determining some related theories and proponents to gain additional knowledge of CSR, such conceptual utilization of some organizations with related points to leadership, formation and choice of leaders and knowing processes towards change management. There will be some case studies of CSR in organizational context and have comprehensive explanation of specific reasons why CSR is essential to the overall structure of the organization, mainly pointing on the business side.     Discussion     Indeed, the foundation of organization involved in such business functions and its CSR success domains and that success in business not just happen to be in operations influence over various products and services but, a business can’t fully exercise the overall stature of the business without the presence of CSR or what is known as the ‘Corporate Social Responsibility’, as defined by Waldman and Siegel. Waldman (2006. p. 533) indicated that, “firms must have visionary leaders who are able to “connect the dots” and understand how various stakeholders, and the satisfaction of their needs, represent interrelated challenges. For example, the strategic management of human resources is related to customer satisfaction, and it is essential for firms to attempt to understand and deal with this connection”. The importance of CSR will imply that corporate leaders can act more socially responsible without using large expenditures of corporate funds. The organizations adapting to the process of CSR are ideally committed to the production of safe, reliable and innovative services in from within changes that are strategically involved into the organization’s application of the CSR. The social responsibility amiably determine strategy in  management upon mapping business impact and leadership effects within the realm of certain economic as well as environment emergence. The presence of success into the CSR ways have to be well motivated from within some motivation factors such as for example, good leadership imposed by the executives and the organization receives motivation due to leadership being known, from within there outcomes into socially responsible decision patterns (Master and Heresniak, 2002). Thus, having effective corporate leaders for instance, managers as leaders have moral obligation to pursue profit and engage in social responsibility only when there is precise investment, leaders are driven by ample sales and profits and from having good CSR ways upon maximizing change and behavior modification. Organizational leaders are amiably engaged into the CSR from within strategic choice, also there astounds some ability to charge a premium price for a particular business product as well as selecting qualified workers does assume potentials for CSR, to be part of organization domains. There is known relationship of CSR, into choosing of leaders and change, the organization might utilize CSR because of the fact that CSR integrates business and the society in general. The need to have useful business areas into such people management, and manpower formation, avoiding negative situations towards change and leadership. Moreover, Milton Friedman contributed to the creation of such CSR theory by asking questions like, ‘should organizations take ample responsibility for certain social issues?’ (Kok et al., 2001, p. 286)/ There such argument as pointed that, the only CSR, social responsibility of the organization is to increase profits by legal means, so transformational as well visionary leaders can effective. Consequently, there is usage of change resources as the CSR strategy can have ample profitability or increase the product prices of business (Pinkston and Carroll, 1996). For instance, the CSR values at Siemens have demonstrated attention towards continuous improvement of employees, allowing human resource to embrace change in its management and the formation of various leadership styles, through CSR change and leadership success, organization utilizes more CSR ways upon completing spontaneously in the marketing stature, there is providing of social responsibility dominance from wherein such related points are utilized by the organization for their CSR processes. Another, conceptual point why organization utilizes CSR, is assumed from the process of globalization, the encouraging factors for the spreading of CSR practices, it is becoming increasingly clear that effective leaders have to be chosen so that whatever change there can be will allow deep success of the organizations CSR ways, there is ample need to understand leadership as well as change antecedents of the known CSR practices (Gunther, 2005). Thus, upon valuing of these antecedents, organizations are in the mode of creating better CSR pattern, understanding of leader attitudes and viewpoints, several change application as through which useful CSR of the business is being practiced. The CSR of the organization will imply to leadership formation and idealism of the values being known from the application of the CSR, changes towards decision-making is of tough commiseration (Finkelstein and Hambrick, 1996), have argue that change and or leadership stance into the CSR, is coming from leader’s decision of certain operation and some areas of concern and the discretion of change values in realizing valuable outcomes from within CSR formation. Thus, the CSR values emphasizes that managers utilize change as one channel to keep good and wise decisions, as the presence of better decision making are critical for having insights into CSR practices (Pant and Lachman, 1998; Agle et al., 1999). The need to be aware of several notions, such as from the work of Wood (1991), upon articulating the need to determine how the organization will perceive effective leader choices in order to push through with ample CSR change processes and its underlying approaches for example, those used in team building and work synergy. Thus, noting that leader choices are to vary in exact CSR ways adopted by the organization from within business paradigms and organization characteristics, like the ones related to various change drivers upon CSR perspectives as there help in to precisely assume ideal CSR conditions to fit into the leadership stance and change realization (Wood, 1991 p. 702).         CSR and Leadership The organization might base certain conceptualization of leadership into neo-charismatic paradigm, the paradigm stresses how an exceptionally effective leader articulates vision that is based on strongly assume CSR values and powerful thinking, there stimulate thinking that foster some of innovative solutions to organization change as there emphasis on CSR ways, adhering to such manpower performance as determined. Furthermore, transformation type of a leader for CSR can possibly generate good confidence of the workers, there id also intrinsic motivation as well as admiration encounter towards the CSR leader thus, following of some emotional appearance due to some known change agents and how it is done within the organization (Shamir et al., 1993; Conger and Kanungo, 1998). Some of the research information, entail some relationship on some leadership aspect for example, those linking to the top executives (CEO), into social responsibility performance of the organization structures (Waldman et al., 2006). Utilization with focus, from known aspects of the paradigm as relevant into forming in of the CSR domains on the part of leadership, the visionary leadership and integrity of the top management into such respective organizations. The visionary leadership involve relationship between the leader and his followers from basis on CSR ways and on the leader behaviors resulting into intense response as well as several attributions on the organization leadership and the process of change (House, 1996; House and Aditya, 1997). For the organization, having good substance of the CSR is a must and serves as core requirement for success in business operations, so leadership qualities are important to consider in choosing of ideal leader for the organization, as there includes the following points: -      Providing effective purpose based on CSR opportunities -      Articulating an change vision that challenges powerful CSR formation -      Showing leadership determination upon achieving change and decision pathways   In addition, there can be constructive process of change, the CSR application does have organization effect on the part of leaders chosen as the change can assume aspects towards confidence, knowledge being perceived, the optimistic inculcation of theories deemed for explaining CSR ways into the organization as well as enough respect and admiration on leadership competencies found in complete assimilating of CSR resources along with leadership dominance (Sankar, 2003). The organization utilizes leaders’ integrity as one better dimension of leadership relevant to the CSR values of senior leaders. The concept of integrity are somewhat overlooked into some of the CSR theories such as stakeholders theory as well as social contracts. Indeed, the absence of CSR positive assumptions will prompt some theorists to argue on some ideas towards leadership and change, as there suggests for consistency of the CSR, into charisma and integrity posits (Sankar, 2003). There has been recent conceptualizations of CSR leadership as there should be careful assessment of the CSR domains of the organization from within recognition of charismatic leadership (Avolio et al., 2004), as some of the leader behavior is often within critical knowledge and the serving of organizational interest as possible. Aside, CSR driven reactions on the part of change views, implies to specific style of leadership acted by the leaders thus, integrate perception of selflessness and trust into the leader of the organization (Gottlieb and Sanzgiri, 1996). There has been expected outcome of CSR leadership and change, organization utilizes concepts in building effective points for strong social responsibility values into the organization. Furthermore, some of the leadership influence should be found beyond offerings of the CSR values. For instance, proponents Shamir (1991), and Shamir et al. (1993), have designed theory of leadership as the research imposed that the organization leaders communicate various messages that contain change assumptions into CSR values and responsibility assurances. The presence of changed leaders brings a positive mark into organization CSR and from allowing change to partake such as those that have effective motivation touches into the management team, the presentation of leadership synergy as found through values that CSR ideas do represent in wider context. However, some of better application of leadership goals as well as change ideas might have ample linkage to the CSR values of the organization, with outcome posed on the follower internalization of the CSR process (Lord and Brown, 2004).   Indeed, organization utilizes concepts of CSR because of informed values which are to be endured in time and as always. Based from the work of Shamir et al. (1993), there proposes better leadership vision and change management into the integrity of the organization leader upon enhancing good points of social responsibility values of the team and the top executives for example, those that pertains to the stakeholder concepts as well as social contracts. The alignment processes whereby the effect of the CSR values serves to organize experience and guide actions, including change pathways and decision making for ideal leadership system as those linked into the CEOs of the organization, CSR values allowing immediate change as typical scenario known by the team and its top management (Lord and Brown, 2004; Avolio et al., 2004). .   However, House et al. (1999) and Waldman and Yammarino (1999) have indicated that, leadership can be significant into the leaders’ function towards the shaping of CSR and its known values and well as their behavior towards change. Thus, Wood (1991), have considered some of useful principles into the formation of social responsibility, and that leadership pathways will show integrity by demonstrating that organization’s CSR policies and related expenditure of resources should not be defined by the whims or personal preferences of leaders. Instead, there stresses out how the organization’s social responsibilities have to be directed toward identifiable community groups as relevant to some of the specific strategic interests posed into CSR effective norms (McWilliams and Siegel, 2001). Moreover, several leaders may excite followers by engaging their self-concepts based on a vision stressing responsibility both to shareholders or owners, and to other relevant and identifiable stakeholder groups. On the other hand, visionary leadership may not be related to amorphous, welfare CSR values because of the position that leadership and change are company specific. The organization might believe that, leaders’ focus more on the operative success of the organization and does have fears of attaining risks and issues if change occurs in major areas of the business, for example Dell’s CSR are valuing supply chain ways into certain logistics assessment, and allowing change not to hit organization issues as a relevant factor for Dell CSR to be effective from within concepts along leader choices and change process, the integrity towards business nature are known and applied (McWilliams and Siegel, 2001). In short, leadership and change on the part of CSR into the organization will add solid output and thinking of predicting ways on some of stakeholder CSR values, beyond pressing impact towards national cultural values. The organizations are becoming more attached and at the same time are affected by CSR challenge that can be assumed into leadership development and resistance to change. Indeed, like Dell as one of global centered business will no have space to ignore social responsibility concerns, such as those points being noted by the stakeholders. From within the organization in CSR level, the idea of leadership and change is evident from within the integrated CSR matters in, strategic notion that allows CSR dimensions to take place into the organization and one of essential dimension points to CSR, the presence of social responsibility. The CSR integration will then balances business aspect into leadership patterns and its operational cycle from theories inclusion from the needs as well as concerns of the stakeholders and social contracts modification. The business aspects of the CSR are understood although put into great challenge, knowing that social dimensions of change leadership will seem to lack certain conceptual leader formation and the transparency of change goals from within. Truly, today’s organization CSR is pivotal to the center activities of the business and the management is being expected to be socially as well as ethically responsible in relations choice of leaders and the process of change linking to their customers, suppliers and to the employees and the overall business society, imposing real confrontations towards the innovative year. There have been demands for CSR, its solid phasing of social responsibility into adjustable phenomenon from within global culture manifestation with effective leaders and right amount of change, organization opportunities comes in full gear. Even companies other than Dell upon stating that, to be socially responsible some leaders might not have ample approaches in terms of managing CSR ways and social footprints behind the leaders, wherever CSR in motion operates. The organization uses concepts of CSR as there are known value for social responsibility that is being tightly connected to leadership practices and leaders’ attitude. Still, CSR system and leader approach does not work with several backing and progress of a responsible organization. There require organization leaders deeper awareness of behavior consequences and processes wherein personal leadership capabilities and business practices are for achieving CSR behaviors as developed. The CSR sense is based on core values as can be measured by the attitude of changed leaders. The everyday CSR action does seriously affect the organization’s representation as one effective socially responsible firm. The leaders’ skills can be grounded on actual operation of business. Then, crucial that CSR processes for choice of leaders and leadership handling encourages the team to embrace change if there is any, adding business dynamics, exploring CSR in terms of effective leadership and social responsibility directions. The organization utilizes CSR through committed leadership standing from within values, the organization needs upon meeting the CSR standard process, as there has to be values of  honesty, compassion, fairness, respect and responsibility into informed leadership success. The chosen leaders will have to pay less attention on the CSR concept but these leaders will need to put effective agenda on the organization approach for leadership. The need to lead from front, upon involving leaders into the business operation, the committed leadership is good way to take CSR action into positive forwarding of leaders’ composition (McWilliams and Siegel, 2006).   CSR and Process of Change Management In every organization part of the business, change and its management plays one good success factor, there assumes change guide helping CSR oriented leaders to act as well as to think in creative motion and that there can be ways of how change will known in specs and determining how the process of change will take place rigorously, the CSR utilization in positive note will help avoid change resistance, risks as well as organization pitfalls that Dell company have encountered, for example. There has been organization pressure for change, a force that links to the decision pathways there is into the CSR formation and the process for change will be identified by the chosen leaders of the organization, the change decision to proceed phasing of the CSR are to be taken account and that utilizing CSR for the process of change will need to be properly communicated into the organization domains. Even if, there is pressure for change from within the CSR management as well as commitment allowing onset leadership to be part of change, and with CSR, the change may come from the clients into the organization chain (House et al. 1999; Waldman and Yammarino, 1999). Thus, it is accepted that when the organization takes pride for adopting change, better CSR performance is seen and there is achievement of a more standard purpose and goals into the business nature. For organization success as it can be regardless of change pressure, the leaders’ commitment as well as change drivers are of essential value for CSR applications, and that change momentum have to be kept for effective CSR execution process. For organization change effectiveness, the organization CSR needs to be adopted in all areas as to be embedded in the overall nature of the organization for instance, several employees, will respond well to the CSR challenge and prevent some stress from coming into the picture, getting CSR cycle to be motivated are critical as recognizing points upon CSR utilization of the organizations in relation to change.     Two Theories Explaining CSR The stakeholder theory of the firm is used as a basis to analyze those groups to whom the firm should be responsible. As described by Freeman (1984), the firm can be described as series of connections of stakeholders that the managers of the firm attempt to manage Thus, in terms of the issue of CSR, the social responsibility, the central issue is whether stakeholder analysis is part of the motivation for business to be responsible and to which stakeholders. In practice, there might mean that firms with problems over employee retention would attend to employee issues and those in consumer markets would have regard to matters that affect reputation. There note from approaches to CSR that stakeholder analysis is important, but that the rationale remains largely instrumental (WBCSD, 1999; Business Impact, 2000), as for example, Business Impact begins by advocating that CSR should be based against set purposes and values nevertheless such purpose and values are also linked to contributing to reputation and success (Business Impact, 2000, p. 101). Meanwhile, there involves social contracts theory, and in context of CSR, there assumes alternative possibility, and it is not that organization might act into the responsible manner because of the social interest, and because it is part of how leadership and change implicitly expects CSR into the business to arrive at right operation. In addition, Donaldson and Dunfee (1999), have developed certain integrated social contracts theory as one way for the leaders to take decisions into the CSR process in between macro-social contracts and micro-social contracts. The showing of unfair leadership can be present as there arises CSR conflicts of interests and values among the employees and such unresolved issues from within the management and there is indication of discrimination from within the workers culture norms and such skills towards work. Another, it can be that CSR leadership is less shown as heavy shifting schedule is present in the organization, the leadership imposes sort of authoritarian notion and top executives can just decide on definite things to do and may consider that employees under the change, have no right to give such ideas and opinions. The CSR strategy may not be properly functioning, as there can be lots of issues concerning to CSR resource in full attention and comprehensive evaluation, strengthen CSR assumptions as crucial to employees growth and development that would generate a more stable and successful organization respectively. Aside, CSR ways being utilized may not be updated and it does not follow certain leadership guidelines and change regulations as deemed possible for the overall welfare of the organization.   Generalizations   There are some generalizations posed upon utilizing CSR concepts in relation to choice of leaders and process of change within the organization. First, it must be possible to associate unique CSR ways into leadership and change process, the organization must be able to make good CSR connection, perhaps by using unique CSR resource models and associate them with the components that made the process adaptable to the business. The need for understanding organization structure, having good relationship of CSR and the relations known enabling business leaders to possibly anticipate potential CSR problems and to be able to acquire useful CSR principles generating leadership as well as change models to adjust situations and implement change. Thus, the understanding and being aware of such actual leaders’ behavior posited by organization team, the CSR system undergoes vivid application and can be used as enough assumptions to regain effective corporate values and its related mechanism such as for example, leadership and change restarts as well as reduction of CSR assimilation being done. It can be that while CSR is being used for better organization operation, leadership as well as change situations can be applied to problems and issues into the workplace as well as the CSR resource creation and tuning and the refinement in the organization. Then, by tracing CSR effective paths from change servers, the organization utilizes CSR in leader choice and change process as there is integration of the CSR application and components, there can easily determine how the leadership process is shared across organization areas of the organization. Furthermore, CSR systems that emerged into both leadership and change, how the CSR ways will interact according to standards and conformity. Understanding the CSR relationships enables leaders and the organization team to resolve as well as anticipate potential leadership conflicts and change issues or problems. The current CSR function upon tracking effective leaders and adopt useful change drivers, in CSR relationship formation can rely on error indication of the known assimilation and outcome documentation, which are business feasible for rapidly changing CSR idealisms as possible and depending on the organization nature as well as culture recognition, CSR ways systems will then increase the competence posits of change to allow leadership foundation at its best. Therefore, the organizations utilizes their CSR in relation to leaders and change management in tough form as well as with positive valuation, as organizations have ample desire for certain ideal and automatic CSR integration of its underlying values and mechanism, for assuming good organization business domains, into constructive CSR structure for the application of strategic CSR ways into leadership and change processes respective of time realization.     REFERENCE   Agle, B.R., Mitchell, R.K. and Sonnenfeld, J.A. (1999) ‘Who matters to CEOs? An investigation of stakeholder attributes and salience, corporate performance, and CEO values’, Academy of Management Journal 42(1): 507–525.   Avolio, B.J., Gardner, W.L., Walumbwa, F.O., Luthans, F. and May, D.R. (2004) ‘Unlocking the mask: a look at the process by which authentic leaders impact follower attitudes and behaviors’, The Leadership Quarterly 15(6): 801–823.   Business Impact (2000), “Winning with integrity: a guide to social responsibility”, Business in the Community, London.   Conger, J.A. and Kanungo, R.N. (1998) Charismatic Leadership in Organizations, Sage: Thousand Oaks, CA.   Donaldson, T. and Dunfee, T.W. (1999), Ties That Bind, Harvard Business School Press, Boston, MA.   Finkelstein, S. and Hambrick, D.C. (1996) Strategic Leadership: Top Executives and their Effects on Organizations, West Publishing: Minneapolis/St Paul.   Gottlieb, J.Z. and Sanzgiri, J. (1996) ‘Towards an ethical dimension of decision making in organizations’, Journal of Business Ethics 15(12): 1275–1285.   Gunther, M. (2005) ‘Cops of the global village’, Fortune 151: 158–166.   House, R.J. and Aditya, R. (1997) ‘The social scientific study of leadership: quo vadis?’ Journal of Management 23(3): 409–474.   House, R.J., Hanges, P.J., Ruiz-Quintanilla, S.A., Dorfman, P.W., Javidan, M., Dickson, M.W. and Gupta, V. (1999) ‘Cultural Influences on Leadership and Organizations: Project GLOBE’, in W.H. Mobley, M.J. Gessner and V. Arnold (eds.) Advances in Global Leadership, Vol. 1. JAI Press: Greenwich, CT, pp: 171–233 Kok, P., T. V. D. Weile, R. McKenna and A. Brown: 2001, ‘A Corporate Social Responsibility Audit within a Quality Management Framework’, Journal of Business Ethics 31(4), 285–297.   Lord, R.G. and Brown, D.J. (2004) Leadership Processes and Follower Self-Identity, Lawrence Erlbaum Associates: Mahwah, NJ.   Master, M. and E. J. Heresniak: 2002, ‘Ethics at Work: The Disconnect in Ethics Training’, Across the Board 39(5), 51–52.   McWilliams, A. and Siegel, D. (2001) ‘Corporate social responsibility: a theory of the firm perspective’, Academy of Management Review 26(1): 117–227.   McWilliams, A., Siegel, D. and Wright, P.M. (2006) ‘Corporate social responsibility: strategic implications’, Journal of Management Studies 43(1): 1–18.   Moir, L. (2001), What do we mean by Corporate Social Responsibility?, Corporate Governance 1,2  MCB University Press pp. 16-22   Pant, P.N. and Lachman, R. (1998) ‘Value incongruity and strategic choice’, Journal of Management Studies 35(2): 195–212.   Pinkston, T. and A. Carroll: 1996, ‘A Retrospective Examination of CSR Orientations: Have They Changed?’ Journal of Business Ethics 15(2), 199–207.   Sankar, Y. (2003) ‘Character not charisma is the critical measure of leadership excellence’, The Journal of Leadership and Organizational Studies 9(4): 45–55.   Shamir, B. (1991) ‘The charismatic relationship: alternative explanations and predictions’, The Leadership Quarterly 2(2): 81–104.   Shamir, B., House, R.J. and Arthur, M.B. (1993) ‘The motivational effects of charismatic leadership: a self-concept based theory’, Organization Science 4(4): 577–594.   Waldman, D.A. and Yammarino, F.J. (1999) ‘CEO charismatic leadership: levels-of-management and levels-of-analysis effects’, Academy of Management Review 24(2): 266–285.   Waldman, D.A., Siegel, D. and Javidan, M. (2006) ‘Components of transformational leadership and corporate social responsibility’, Journal of Management Studies 43.   WBCSD (1999), Corporate Social Responsibility, World Business Council for Sustainable Development   Wood, D.J. (1991) ‘Corporate social performance revisited’, Academy of Management Review 16(4): 691–718.   Credit:ivythesis.typepad.com

Consider why an organization might wish to utilize the concepts of Corporate Social Responsibility in relation to it’s choice of leaders, and the process of managing change

Introduction The two statements below will give clear emphasis of Corporate Social Responsibility as discussed by Lance Moir in his arti...

Atypical Employment: Employee Relations

Atypical Employment: Employee Relations   Introduction The issue about flexible workforce and its impact on labor markets is considered as a highly debated subject in many developed and modern countries. Thus, the rise for the flexibility of the labor markets had led to a growing proportion of workers in different atypical employment relationships which include temporary jobs. With accordance to this, Hong Kong stands out from the Asian regions as a place that experienced a fast and intense shift from one of the most rigid employment protection systems to a highly flexible labor market with an extraordinary high proportion of temporary employees.  The labor market of Hong Kong is highly segmented as typical permanent employees, atypical posts with variable work loads, and unemployed adult and youth.  The number of atypical posts has been steadily increased in the past decade.  This article has the particular focus on precarious employment relationships and individuals’ perception of job security.  We find some indications that the type of employment relationship and the perception of job security seem to matter in the studied transition processes.   In the globalize worldwide economy nowadays, employee relation becomes once again a newly developed topic of study.  Employers who offer flexible work practices for atypical workers are more likely to attract and retain skilled and valuable staff; this is because employees today place greater emphasis on finding a balance between work and life commitments.  It makes good business sense to introduce flexible work practices. There are benefits for both employer and employee, including greater job satisfaction and increased productivity and efficiency.   Giving this background, interest in the employment relationship and work for human resources professionals has been reinvigorated by: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	 management philosophies of engagement, 	commitment, high involvement and empowerment;</li> <li class="MsoNormal" style="line-height: 200%"> 	 evidence of continuing failings in this 	area and line management styles in practice;</li> <li class="MsoNormal" style="line-height: 200%"> the 	growth of alternative communications vehicles and forums.</li> </ul>   The work that human resources professionals carry out today in connection with employees and employment relationship includes: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	 managing the 	employment contract, e.g. its legal basis, pay and conditions, discipline, 	absence, health and safety;</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	 ensuring compliance with employment law, 	e.g. redundancies, unfair dismissal, minimum wage, working time, 	discrimination;</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	 direct communication through various 	means, e.g. team briefings and employee surveys;</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	 promoting 	retention, involvement and engagement through by different methods, e.g. 	‘partnership,’ team-working and work-life balance policies;</li> <li class="MsoNormal" style="color: black; text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	 the collective processes of negotiation 	and consultation.</li> </ul>   The underlying theme of this essay is that managing the employment relationship remains central to good human resources practice even more and more atypical employment appears in the labor market.  The employee relations skills and competencies are critical to the process of achieving performance benefits.  The focus now needs to be on gaining and retaining employee commitment and engagement.  We start by introducing the current regular employment and atypical employment models in the below session. Regular Employee, Atypical Worker and Their Forms Regular Employment Employee The Black Law’s Dictionary (1979) defined employee as “a person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed” (p. 471). In simple term, an employee is defined as a person who works under a contract of employment.  Hong Kong common law has evolved through case law which elaborates certain factors to be considered in the employment relationship to determine whether employee status exists.  They include: • the degree of control exercised by the employer; • the integration of the person into the business, including the issue of who bears the risk and, if appropriate, provides tools; • the extent to which the person is obliged to work; • whether the work is on a continuing basis; • whether the employer deducts income tax and National Insurance contributions. The finding of employee status and the existence of a contract of employment depend on balancing these factors.  None is sufficient in itself, but some are essential (e.g. control and payment of wages). The importance of employee status lies in its access to statutory employment rights.  Many (including those relating to unfair dismissal) are restricted to employees. Worker The Hong Kong common law also recognizes a further category: a worker.  This term embraces those who work under a contract of employment.  It also covers a person who works under any contract, whether express or implied and (if it is express) whether oral of in writing, whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not by virtue of the contract that of a client or customer of any profession or business undertaking carried on by the individual. Self-employed Generally, self-employed people are exempt from statutory employment protection.  However, they are covered by, for example, discrimination law and health safety legislation.  The genuinely self-employed (i.e. an independent contractor or those in business on their own account) would, for example, not be integrated into the employer’s business; and would not necessarily provide a service personally and would have no continuing mutuality of obligation.  In determining such issues, much would depend on the facts of the particular case.  Some individuals can have an ambiguous employment status. Atypical Employment Atypical or non-standard workers are those who are not full-time permanent employees.  They may have different forms of employment status – on part-time, on temporary, on a fixed-term contract and as a job sharer, as a casual worker, as an agency worker.  Whether they enjoy employment protection is dependent on a number of factors: • Establishment of employee status • Entitlements as a ‘worker’ under statute law • Accruing continuity of employment and so entitlement to service related benefits in the employment contract and to service related statutory rights • Coverage by specific anti-discrimination law Forms of Atypical Employment Flextime Flexible working hours allow employees to work an agreed number of hours spread over a set period of time.  Some awards and enterprise agreements allow employees, as part of their flexible work agreements to accrue hours, take time-off in lieu for overtime worked or accumulate rostered days off. Flexible working hours assist employees to manage their work and personal commitments without losing hours in the workplace as a whole. Examples of flexible working hours arrangements include: • flexi-time and banking time • staggering starting and finishing times • rostered days off or a nine-day fortnight • compressed work weeks, allowing employees to work longer hours per day and fewer days per week. Staggered Hours Staggered Hours work means the employees arrive and depart work at different times in shifts.  Shifts may be staggered anywhere from 15 minutes to two hours. Job Sharing Job-sharing is a form of employment that a specific task can be broken down into several sub-tasks so that to share a job designed for one person with someone else. Compressed Working Hours Compressed working hours is a form of working pattern that employees work more hours than typical but work fewer days per week or pay period. Self-Rostering Self-rostering allows teams of employees to propose the patters they want to work, within agreed parameters, while meeting the needs of the service.  In most organizations staff rosters are drawn up by managers, often in consultation with staff.  The philosophy underpinning self rostering involves agreeing the staffing levels and skill mix required at any time in the day, then giving staff the ability to schedule their working day collectively to meet those requirements. Annual Hours An “annual hours” contract is a system whereby the period of time within which full time employees must work is defined over a whole year. For example, an average 40-hour week becomes 1,880 annual hours, assuming five weeks of holiday entitlement (37 weeks x 40 hours per week).  This is the total hours an employee must work each year under the contract. Once the annual hours of work have been agreed these hours are usually distributed in a schedule. Some of the hours may be held in reserve to be used when the employer and employee agree, or they may all be used within the schedule.  It will also be necessary allow for public holidays and overtime. Annual hours can be applied to all employees, including day workers and white collar employees, but in practice the system is often restricted to shift workers. Working At or From Home Working at or from home provides a worker the flexibility of not necessarily going to office for work.  He/She can work at home through access the company’s email and telephone line.  Teleworking Telework or home based work (also known as telecommuting) can be defined as work taking place away from the traditional office facilitated by the use of information communication technology.  It is about rethinking the way we work, providing potential benefit to both employers and employees. It can involve staff working away from the workplace on a full-time, part-time or temporary basis.  Many organizations allow staff to telework for part of their working week, depending on the nature of the work. Telework can take different forms, such as: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	Full-time teleworkers who work at a remote 	location and do not have a traditional office to go to;</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	Day extenders who take work home after 	working in the office during standard work hours;</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	Occasional teleworkers who work at home or 	while their travel on an ad hoc basis; and</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	Self-employed or owner operators based in 	their homes.</li> </ul> There is evidence that it is gaining increasing acceptance in the world. Fixed Term Fixed-term employee is defined as a person with a contract of employment which is due to end when a specified date is reached, a specified event does or does not happen or a specified task has been completed. Examples of these include:        Employees doing so-called ‘seasonal’ or ‘casual’ work who have contracts for a short period or task that end when the period expires or the task is completed. (Examples include: employees at children’s summer camps; agricultural workers; and shop assistants working specifically for Christmas or another busy period.)        Employees on fixed-term contracts concluded specifically to cover for maternity, parental or paternity leave or sick leave        Employees hired to cover for peaks in demand and whose contracts expire when demand returns to normal levels.        Employees whose contracts will expire when a specific task is complete (i.e. setting up a new data base, painting a house or running a training course.)   Temporary and Casual Work Temporary and casual working means that the worker is not a long term contractual basis worker of a company and they will just work for a period of time which is not fixed. The Growth of Employment Flexibility Throughout advanced industrial economies: - Increased hours variability –part-time; on-call - Increased reward variability –pay at risk; PRP - Increased job content flexibility and demand: team-working; role flexibility; end of OCB; fuller utilization/less uncommitted time - Increased contract flexibility –growth of temporary and fixed-term contracts - Static job satisfaction and reducing work-related well-being Employment Relationship There are several business impacts of good employee relations.  Employee attitudes and commitment are strongly associated with business performance.  Managers generally found better employee contributions and productivity gains on better employee relations. The informal climate of involvement and confabbing appears to be more strongly associated with employee satisfaction and commitment than any other means of negotiation and consultation. Mechanisms in use for employee involvement include two-way communications, project teams and joint meeting, but there is growing interest in electronic media, attitude surveys and partnership schemes. The major constraints on employee involvement are lack of skills and enthusiasm by managers and employees. The psychological contract model, validated by successive employee attitude surveys, suggests that human resources practices strongly affect the way people feel about their work.  Employees’ trust in the organization, their sense of being fairly treated and the extent to which they believe their employer has delivered on the implicit deal between them, affects their attitudes towards job satisfaction, commitment, work–life balance and the state of employee relations. Face-to-face interviews were conducted with a small sample of human resources managers in finance, manufacturing, and local government. The result is a snapshot of current attitudes and practice.  Although no claim can be made that the findings are necessarily representative of the whole Hong Kong workplaces generally, some common themes emerge. The questions were straightforwardly designed to explore the following issues: • Why do employers need employee relations? • What do employee relations people need to know? • How is an employee relation changing? • How does an employee relation impact on performance? • Is employee relations in practice, more reactive or proactive? There appears to be a consensus that employee relations continues to be a critical area to manage.  Some respondents claimed that they need a structure in order to be able to communicate effectively with their employees.  Though not a universal belief, research and other evidence suggests that many larger employers in both the public and private sectors accept this and are concerned to maintain or, if necessary, establish an effective structure to communicate with employees.  Within the public sector, some respondents displayed a strong commitment to working in partnership with formal and informal contacts and with committee structures. The general view was that organizations needed to be capable of dealing with employees on both an individual and a representative basis. In terms of what actually needs to be managed, the emphasis was not so much on pay but on issues such as recruitment, retention, and pensions. Many respondents also underlined the need to be able to anticipate as well as respond to employment law. And finally, there was strong endorsement from several respondents of the belief that employee relations is about seeing the ‘big picture’ and helping the organization to take appropriate action. The most detailed and persuasive responses reflected a view that effective employee relations practitioners were strong at storytelling and making sense of situations: ensuring that organizations told a consistent and credible story. This could be seen as one interpretation of ‘strategic HR’.   What do people with employee relations responsibilities need to know? Given the wide scope of the term, it’s unsurprising that answers about the skill set required of employee relations practitioners ranged quite widely too. The skills included: • understanding collective labor law • knowing how representative structures work • awareness of general employment law • facilitation and communication skills • negotiation skills • understanding how to develop trust and respect • personal qualities: objectivity, robustness, confidence to tell senior people what they think • awareness of employee attitudes/feelings • business knowledge. Many of these relate to personal competencies and behaviors. Some respondents commented specifically on negotiation skills. In manufacturing, for example, not only senior managers but also line managers need training in how to conduct relationships with trade union stewards. Many managers who have no responsibility for conducting pay negotiations may still have to negotiate with unions on a range of issues. On the other hand, employee relation is now seen to be more about building relationships and developing trust. In this respect, the relationship with trade unions doesn’t necessarily differ in kind from relationships with management colleagues and/or with employees generally, and negotiation skills are equally relevant to a wide range of relationships. The underlying issue of employment relationship is debated for certain period of time since the atypical workers and other flexible forms of employment have been derived.  As favor factors to atypical workers, different flexibilities toward them would improve their work life balance. Has atypical workers undermined the employee relationship? Psychological Contract The Psychological contract is defined as: “The perceptions of both parties to the employment relationship, organization and individual, of the reciprocal promises and obligations implied in that relationship” The state of the psychological contract is concerned with whether the promises and obligations have been met, whether they are fair and their implications for trust. The Psychological Contract and the Breakdown of the ‘Deal’ –A career in return for loyalty –A fair day’s work for a fair day’s pay –The challenge to professional autonomy –Loss of job security (and safety net) The Real Cases of Employment Relationship After briefly described the definitions and characteristics of standard employee, atypical workers and the general employment relationship, we are going to discuss the influence of employee relationship due to the expansion of atypical workers in Hong Kong.  Lessons from research into employee voice and the psychological contract have been absorbed by employers and reflected in their employee relations policies and aspirations based on the real examples of some companies in Hong Kong. Regular employment Management of Employee Relationship Principally, there are two instruments available for regulating the employment relationship.  One – the contract of employment between the individual employee and his or her employer – was based on in law; the other was based on the voluntary action of employers and trade unions, i.e. collective agreements negotiated between trade unions and specific employers.  The model developed and used for interpreting the findings has been that of the psychological contract, which places at the centre of the relationship employee trust, a sense of fairness and belief that their employer has delivered on the implicit ‘deal’ between them. These three factors – trust, fairness and delivery – are strongly associated with behavioral and performance outcomes such as employee commitment and intention to leave. The employment relationship should be viewed as an imbalanced power relationship favoring the employer.  The contract of employment is the instrument for regulating this relationship and is said to provide protection for individual employees.  Kahn-Freund (1983) has referred to it as a command in the guise of an agreement. The achievement of business goals and financial returns is increasingly dependent on delivery by front-line employees. This emerges from the operation of a mix of HR/high-performance work practices in the context of a supportive management. It can’t be imposed from the top but depends on developing employee security, trust and buy-in to the goals and values of the organization.   Flexibility The flexibility of the employment relation can be reflected by the concept of Employee Participation and Involvement (EPI) which is introduced from Hyman and Mason (1995:21). Hyman and Mason classify participation as: The state initiatives which promote the collective tights of employees to be represented in organizational decision-making, or to the consequence of the efforts of employees themselves to establish collective representation in corporate decisions, possibly in the face of employer resistance. The meaning of Involvement relates to management-initiated policies and practice where empowerment is constrained to operational tasks, rather than organizational decision-making, targeting the individual. Under the regular employment contract, it is not easy for the employer to request the employees to perform overtime work or assign job task which may not be his/her original expected scope of work due to the employment legislation and the intervention of trade union.  The operation and financial performance may highly depend on the willingness of the employees to take up extra contributions to the organization/company or employer may need to allocate additional flexible resources in order to deliver their commitment to the customer. But the employee participation and engagement of the regular employees is found to be higher than atypical workers because it is more likely that regular employees will have higher sense of belonging, loyalty to the company than the atypical workers.  The reason behind of this phenomenon is that most of the atypical workers do not work within the employer office premises or they do not enjoy any benefits which regular employees would have.  Thus it is common for the regular workers to participate in the group discussion of the company strategy and giving opinions to senior management about their innovative ideas. Pay The pay of regular employees will be released at fixed time, normally in monthly basis.  In most of the companies, their regular employees can enjoy the year end performance bonus based on the net profit of the companies.  There is Occupational Retirement Schemes Ordinance (ORSO) scheme for the permanent employees, which is to establish a registration system for voluntarily established occupational retirement schemes, to ensure that such schemes are properly regulated, and to provide greater certainty that retirement scheme benefits promised to employees will be paid when they fall due. Discrimination For employees working in usual office premises, regular staffs enjoy the fair treatment normally.  In most of the US companies, there is an open door policy, which means the employees can directly talk with their senior managers without the intervention from his/her direct supervisor or manager.  This policy guarantees every employee can voice out their own opinions towards the work and company direction.  Legislation of sexual harassment protects the staff from being discriminated in the workplace.  The law prohibits discrimination on the basis of: ·             Sex – because a person is male or female ·             Marital status – whether a person is single, married, married but separated, divorced or widowed and ·             Pregnancy There are more other forms of discriminations such as age, nationality and disability that are being protected by the laws in Hong Kong. How the employee relationship will be affected by the discrimination factor is that with the employees will have higher incentive to stay at a workplace without or lesser discrimination feeling.  The employer will be respected and trusted also if they can create a harmonious environment which allow all kind of staff to work together independent of the gender, marital status, color and age etc. Atypical Employment Management of Employee Relationship The growth of the non-standard or atypical forms of employment, which include part-time, casual work and others, represents one of the most dramatic changes in the structure of employment in the global labor force. Management employment strategies have been identified as a major causal factor in the expansion of non-standard employment. Employers are continuously using the said typical forms of employment in order to lower their direct labor costs. However, there are different arguments which focus on the different negative impact of this type of employment in employee relationship which include hidden costs and its impact towards work relations and motivation of employees (Allan 2000). The atypical workers are distinguished from the regular employees by the formal employment contract and the status.  Atypical employees are not formally beneficial by the employment ordinance since they get the reward by providing flexible forms of service to employers.   Atypical workers are easily managed by their employers because they are flexible resources that no overhead of idle of resource thus operation optimization can be achieved through the capability of coping with the flexible business model nowadays. Flexibility Broadly speaking, employment flexibility has been earned to a degree on the expense of employee commitment.  Nevertheless, in spite of all the massive changes in the workplace, some perceptions in the labor force are still vibrant.  The need to feel a relative level of stability is still quite strong in spite off all the discussions and examples of restructuring and redundancies (Guest & Conway, 2004).  An interpretation of this is that commitment towards employers is not yet extinct but because the workplace is in the process of the major changes, the turbulence that has been created as an effect altered the balance of the old type of employment relationship based on commitment in exchange for security.  Furthermore, the approach that employment flexibility can elicit commitment in the context of involving employees more in the decision making and by offering them more challenging work designs that could augment their skills, is debatable.  In theory, such a principles it operational but as literature suggests, internal and external inefficiencies often lead to overcapitalization of the human capital in organizations hence adversely affecting levels of commitment. Atypical employment relationships imply less job security for employees. Less discussed is the extreme challenge that flexible labor places I the HR function. Most of HR researchers as well as practitioners are believing that increasing labor flexibility not only decreases labor costs, but also reduces HR manager’s and the companies responsibilities and roles, because of the fact that temporary agencies appear to reduce the time that has to be invested in the process of recruitment and rewards. Thus, it is important to understand the fact that the commitment of the entire organization focuses on the analysis of HRM (Torka 2004). Therefore, the whole rationale for introducing HRM policies is to help increase the levels of commitment so that other positive outcomes can ensue (Guest 1998). Pay Money is the major inducement of people to have incentive to work hard for a company.  So that’s no doubt that for any kind of worker, no matter regular employees or flexible atypical workers, they would see the money return of the job as top priority criteria for work.  Thus the wages of atypical worker would depend on the supply and demand of the market.  Management will benchmark the market rate of the workers and decide their strategy to allocate the workforce. Discrimination As discussed at the earlier session of discrimination factor to the regular employee, the same point of view would give similar impact to the relationship between the employer and the atypical workers.  The major difference between the discrimination for atypical workers and that of regular workers is that external parties may not consider atypical workers as employees of the assigned working company so sometimes they are treated differently with the genuine staff of that company.  However, under the law of Hong Kong these treatments are not considered as discrimination for if age, nationality or marital status are not being pinpointed from the employers. Employee Commitment and Employee Relationship Human resource is considered as the most important resource of any company or organization because the employees or staffs are the one that are processing materials and information in order to create products or services to be sold to the customers. Thus, it is important to consider the aspect of commitment of the employees towards productivity and performance of the employees. According to Meyer (2001) commitment is considered as a binding force or a psychological state of attitude which can encourage direction to behavior. In addition, commitment as a whole does not only pertains on the work-related, this is because there are different studies and literatures which indicated that employees can have different work-related commitments which include commitment to work, the job, the career, the occupation, their colleagues, supervisors, teams and the entire department (Hartley 1993). Different studies about HRM focus on the idea that atypical employment relationships have a negative impact towards employee commitment which includes study of Atkinson/Meager (1986), Baruch (1998) and Rousseau (1995). This is somewhat typical or common because of the fact that employee commitment is about what comes around goes around attitude. Therefore, it is explainable that flexible workers will have reluctancy to build any commitment because the company is not willing to meet an important part of employment deal, particularly the aspect of job security. This is aside from the fact that some of researchers (Goudswaard and Andries 2002) found out that most of atypical employees have poorer working conditions compare with the typical workers. In support to this, the study of Jacobsen (2000) found out that atypical workers are less committed compare with the typical employees.   In that case, it can be said that the application or implementation of atypical employment can create different negative impact in entire process and aspects of human resource in the company, particularly the area which pertains on the employee relations of the company. Employee relations at Dell Dell is a US company that has grown rapidly since its formation 20 years ago and currently ranks number three on Fortune’s Global Most Admired Companies list. It seeks to deliver value to customers through its direct business model, by focusing on the customer experience and taking out cost from the production process. The company is data-driven. Managers report on the achievement of targets on a daily basis. Its employee relations climate is strongly influenced by its aspiration to be a ‘great company and a great place to work’ through the adoption of a ‘winning culture’. The focus is on the team and on individual contributions to the team. People/line managers are expected to interact with individuals, and their performance in this area is closely monitored. Both people managers and individual contributors are measured on the way in which they deal with people as well as on their technical proficiency. There’s a consistent emphasis on how people do their job, not just what they do, including, for example, support for colleagues and behaving ethically. The company makes a conscious effort to recruit people who will have a good ‘fit’ with its values – people who are open, direct and who focus on getting the job done rather than engaging in office politics. The company runs a leadership programme each year, which in 2005 is focusing on personal development planning. Employee engagement is driven by the relationship between individuals and their manager. The expectations of people managers are clearly defined: • Set a performance plan • Work in each team on individual development plans • Undertake mid-year review • Undertake end-year review • Undertake monthly review with each individual (30 minutes to 1 hour) • Give feedback to improve performance Dell measures people managers’ compliance with their performance management targets, tracking what has been done at each stage. In addition, senior managers are expected to take regular opportunities to engage with more junior staff, for example, at ‘brown bag’ lunches with different groups, or while visiting operations in other countries, to help embed a common culture. Other methods of encouraging dialogue include quarterly results meetings across the business at which senior managers take questions. ‘Tell Dell’ surveys every six months cover core areas suggested by statements such as ‘Management is doing a good job positioning the company to win in the marketplace,’ ‘My manager is effective at managing people,’ ’I receive ongoing feedback that helps me to improve my performance,’ ‘My manager sets a good example of ethical business behavior,’ ‘I would recommend Dell as a great place to work’ etc. The surveys provide a broad measure of employee engagement. The data is analyzed to identify trends. Managers are then tasked with sharing their results with their teams and developing team action plans to address issues and drive improvements. As a result, the company enables to monitor the behavior and the performance of their employees regardless of their status in the company as typical or atypical employees. Therefore, it encourages fairness and equality inside the organization which are considered as important motivational factors for the employees. This enables the employees, particularly the atypical employees to feel that the company is exerting effort in order to ensure that the working environment is comfortable for all the employees. Employee relations at HP The Hewlett-Packard HK SAR Limited (adhere note as HP) has around 500 employees of staff in Hong Kong.  Actually, adding the number of staff of atypical workers, which including outsourcing contract staff, part-time workers, flex-time workers etc., she has over 1000 staffs in Hong Kong. The regular employees would have the permanent employment contract to protect their salary, fringe benefits such as medical insurance, annual leaves entitlement and even company share options purchasing right.  While the atypical workers will be outsourced to secondment agencies or in other forms of employment, they have comparatively less benefits and sense of belonging towards HP. The regular permanent staff will not only get the sense of security of his/her job but also enjoy the long term retirement fund (ORSO).  But since 1997, the Hong Kong government had introduced the Mutual Pension Fund (MPF), almost all of the employees who were employed since 1997 would join the MPF scheme rather than the ORSO scheme.   The employees of HP involve in many activities within organization and the company.  The HR of HP has initiated the HPeople program which is aimed at encouraging the employees to union together inside and outside the office.  The HPeople will organize different kinds of interest course and provide a mean for the staff to get acquainted with other colleagues who may not know before.  Besides, the HP HR director would regularly provide development programmes to three different levels of staff in order to maintain the talent resources in organization.  The three levels of staff are managers, independent contributors and the new joined university graduates. In addition, Hewlett Packard is implementing pay-for-performance plan. This focus on embracing an organizational culture which embrace pay for performance by emphasizing goals setting, ranking and ranking of performance and performance dialogue between the supervisors and the subordinates. In addition, the company also focuses on three basic requirements of the control process which are: <ul style="margin-top: 0in; margin-bottom: 0in" type="circle"> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	Establishing performance standards – 	Standards are used to set expected performance levels for machines, tasks, 	individuals, groups of individuals and the organization as a whole.</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	Monitoring performance and comparing it 	with those standards – The primary purpose of monitoring performance is to 	provide information on what is actually happening in the organization.</li> <li class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph; line-height: 200%"> 	Taking necessary corrective actions – 	Corrective action can be taken after the actual performance has been 	assessed and compared with performance standards (Sims 2002).</li> </ul>     Employee relations at South-West Trains The company has a well-established collective bargaining agreement with ASLEF, the RMT, TSSA and AMICUS, which operates through the South-West Trains Company Council. This agreement gives the unions negotiating rights on a range of issues, including pay and terms and conditions of employment. They are also consulted on issues relating to performance and attendance, changes in working practices, and redundancy. The Company Council is supported by a number of smaller groups. South-West Trains needs to ensure that it can involve and engage all staff, not just its union members. A number of employees are not represented by a union and have a limited formal voice in the company. In addition, the firm’s ‘Tell Us’ employee survey shows that a percentage of staff don’t feel they’re consulted about major decisions. These factors, combined with the approach of the new Employee Information and Consultation Regulations requiring that all staff are included in consultation arrangements, led the company to review its existing arrangements. The company would prefer the current collective-bargaining machinery to be adapted to allow non-union representatives to be informed and consulted alongside union representatives. However, other options may be possible, including establishing employee forums that would be open to all staff and would operate in parallel to the Company Council. Although it has a very good working relationship with all the unions, the company has moved away from relying solely on collective machinery to inform and consult employees. It takes responsibility for communicating with all employees and has improved its direct methods of communication. It holds ad hoc forums on specific issues to generate feedback from employees. Staff surveys have shown that employees want face-to-face communication, where possible through their line manager. ‘Time with your manager’ sessions have been introduced for operational staff to ensure that individuals have regular conversations with their line manager. HR seeks to get across the message to line managers that negotiating skills are basically communication skills, and that authentic conversations are needed to establish trust-based relationships with employees. ‘Partnership’ in the company is seen as being essentially between employer and employees, while the relationship with the trade unions is a professional one. In addition to regular team briefings by line managers, the company is increasingly using email and the company intranet to communicate with employees. Employee Relations at VitaSoy Vitasoy is considered as one of the global beverage and healthy nutritious food company that mainly developed soy-based products. The said success was achieved by investing money and effort towards customer relationships. Just like the said companies, Vitasoy also focuses on the different employee relations activities and strategies in order to ensure satisfaction and motivation from the employees. First, the company focuses on the aspect of security and safety of the employees. The company is continuing its improvement of safety and health in the workplace by the process of carrying out risk assessment of work sites in regular manner, at the same time, establishing policies and guidelines in order to improve and take correction action. Aside from that, the company also focuses on offering regular and intensive training regarding safety and health to the staffs regardless of their status inside the company. Conclusion In general, the emergence and application of atypical employment in the modern business environment has a big impact on the different aspects of human resource management, particularly the issue of employee relationship. Thus, it is important to consider the fact that this issue has a great impact on how the company will going to ensure motivation and good performance from the employees. As a result, it is important to complement the current changes in the human resource environment with the different strategies which will be applied in order to ensure good performance and better production, which will enable companies to maintain the improve their position and share in the market. Flexibility in the workplace is a key theme in almost every organization and it is often pursued by endeavors to introduce resilience in employment and the expectation of relevant benefits.   Nevertheless, it should not be disregarded that employees are individuals with emotions and perceptions and the climate of insecurity that has been building up is likely to shake the trust and most importantly the commitment towards their employers.  In spite of the externalization of the labor market and the ease to hire personnel, organizations require the skills of employees as well as their commitment in order to operate efficiently.  To a degree, flexibility has been won on the expense of commitment as theory suggests but there are also indications that the focus is turning. Attention now is on how to ensure that employment flexibility does not thwart commitment but it facilitates the transit from the older type of commitment of loyalty in exchange for security to a commitment based on employability, a challenging working environment and the enhancement of employees’ skills and talents. Any effort to infuse trust and commitment in the labor force needs to be coordinated and carefully implemented as it can produce long-term benefits for the organization.  Consequently, managers should not ignore long-term strategies by favoring more short-term agendas. Extending that, the organization requires an overall shift in its management polices towards employees, promoting a positive outlook and avoiding unnecessary declarations and examples that will give rise to any sort of negative climate.  Communication is essential from top to bottom in building a partnership with employees. This is important because communication can help companies to focus on the human resource aspect of the company. First open communication enables the company to focus on the feelings and reactions of the employees regarding the relationship of individual employees inside the organization. Furthermore, it can help companies to focus on the different factors that can help to maintain understanding of employees, consequently prevent any conflict from happening, which ensure good performance from all employees. Equally, the role of HR departments is important in gauging employee attitude and especially the perceptions as described by the PC. This could assist organizations in avoiding violations in the contract or at least minimizing the detrimental outcomes which could adversely affect employee commitment.  Through a positive environment of openness and co-operation, employment flexibility and commitment can co-exist. Thus, it can help those atypical employees to feel that the company is exerting effort in order to make them feel comfortable in the working environment at the same time, given them the sense of opportunity to become a full-time employee in the company.   In general, it can be said that it is vital for organization to focus on the human strategies that will handle both the needs of the typical and atypical employees. This is important because motivation and commitment is connected with the different benefits and appraisal, together with the overall working environment. Therefore, it is vital for organizations to have strong bond with the unions and the local and national laws or the government in the process of establishing policies, rules and regulations for the atypical employees. It is important to build a fair and equal regulations and policies for all the employees, regardless of their status inside the company.   References   ALLAN, C., 2000. The hidden organizational costs of using non-standard employment. Personnel Review [online], 29 (2), Available from: http://www.emeraldinsight.com/Insight/ViewContentServlet?contentType=Article&Filename=Published/EmeraldFullTextArticle/Articles/0140290204.html [Accessed 26 June 2009]   Australia Government. Available from: http://www.workplace.gov.au/workplace/Programmes/WorkFamily/TeleworkingorHomeBasedWork.htm [Accessed 26 June 2009]   Business Enterprise Regulatory Reform. Available from: http://www.berr.gov.uk/employment/employment-legislation/employment-guidance/page18475.html [Accessed 26 June 2009]   Commute Solution. Alternative Work Schedule. Available from: http://www.commutesolutions.com/letsride/altwork.html [Accessed 26 June 2009]   GOUDSWAARD, A. & Andries, F., 2002: Employment status and working conditions. European Foundation, Dublin   GUEST, D.E., 1998.  Beyond HRM: commitment and the contract culture. In: P. Sparrow/M. Marchington (Eds.): Human Resource Management: the new agenda,  37-51.   JACOBSEN, D.I. (2000): Managing increased part-time: does part-time work imply part-time commitment? In: Managing Service Quality, 10(3): 187-200.   MEYER, J.P./PAUNONEN, S.V./GELLATLY, I.R./GOFFIN, R.D./JACKSON, D.M., 1989. Organizational commitment and job performance: it’s the nature of the commitment that counts. Journal of Applied Psychology, 74(1): 152-156   Sims, R.. 2002, Organizational Success through Effective Human Resources Management. Westport, CT: Quorum Books   TORKA, N., 2004. Atypical Employment Relationships and Commitment: Wishful Thinking or HR Challenge? Management Revenue [online], 15(3). Available from: http://www.gruner-druck.de/hampp-verlag-services/get?file=/frei/mrev_3_2004_324 [Accessed 26 June 2009]   Toshiba Australia. Available from: http://www.isd.toshiba.com.au/sig/sigdownload.html [Accessed 26 June 2009]           Credit:ivythesis.typepad.com

Atypical Employment: Employee Relations

Atypical Employment: Employee Relations Introduction The issue about flexible workforce and its impact on labor markets i...