Organizational Behavior Issues in Aussieco Essay Example for Free

Organizational Behavior Issues in Aussieco EssayAussieco, an Australian troupe ceremonious as a small realityufacturing and service operation bon ton in 1962 is now a richly expanded smart set with 600 employees. The association built its reputation on a single product dimension 90 per cent of the Australian market in the 1980. Over the years the market holding has departed down by 30 percent in spite of the product being unique and company facing little competition in the market (Jones,Gal, n. d) The downturn in Aussiecos consummation is in the main due to discerns with the companys management and presidential termal behavior. Organizational Behavior refers to the understanding, prediction and management of military personnel behavior in organizations (Luthans,2010). It is the study of individuals and their behavior in a work place. A companys performance and outcome largely depends on its organisational behavior as it is an interdisciplinary field that includes soci ology, psychology, discourse and management. Aussiecos organizational behavior issues can be explained through Henri Fayols 14 management principles.Henri Fayols theory of administration and organizational behavior focuses on the in the flesh(predicate) duties of management and tutorial effectiveness which aussieco lacked. (Fayol,1971). The company has inexperienced stave and no specialization as major elevated authority module is friends and family without masterful knowledge. The executive managing director is the owners nephew with no practical or industrial experience. The production supervisor is the production managers best friend who has little knowledge of the daily production tasks as he is a carpet fitter by qualification.Employees at the operative level are unsettled labor mostly lacking formal qualification. On diversification, management failed to understand the changing market needs. Aussieco fol natural depressions the antecedent culture where control is cen tralized. The major motivational or driving force is fear (Luthans,2011). Suggestions and personal preferences are not welcomed. The owner-chairman reacts in a strong negative way if any managers trust differentiates from his. This lack of consultation leads to staff feeling de motivated and undervalued.Though there has been division of labor and departmentalization in the company alone the managers lack authority and responsibility. On the instance of owner accepting order from a bad debt customer without consulting the general manager shows lack of authority for the manager. Owners dictatorial emplacement and ignorance of modern trends hold back up the dedicated managers to improve and bring changes in the companys working, as they are either fired from the job or become his instant enemies. The company lacks discipline and employee commitment. lack of loyalty, no willingness to put high levels of effort, no belief in the companys endings and vales and lack of assent in the management all together leads to all the issues of Aussieco. During lunch hours the higher-ranking management and sales staff pay off access to unlimited alcohol in the workplace. Assembly line workers underperform and hold back production with vague excuses. Subordination of individual interest over the companys interest and goal is one of the major problems of Aussieco Employees overtime to get paid extra and not for productive outcomes.Also the senior programmer in spite of completing his work order uses his work holiday for personal matters. at that place is lack of equity and justice among the employees. The rule being everyone must vacate office during lunch relent but exceptions for the senior management and sales staff that eat in the work place, operatives and other staff are allowed no food or drinks in the workplace. The migrant staff is treated well and fall apart than its own internal staff. at that place are less(prenominal) internal promotions. High employee tur nover, no perceptual constancy of raise of personnel is another major issue with Aussieco.To attain maximum productivity of personnel it is essential to nonplus a stable workforce, which Aussieco lacks. in that respect are frequent mass resignations in the company. No production manager lasts for more than 3 years in the company. The post of personnel manager is vacant since 2 months. Employees have no job security and frankincense are not fully committed to their work. This further increases the companys costs of recruitment,selection and training. There is lack of motivation and initiative by the management for the welfare of the employees.There is lack of rewards, appraisal and bonus. The workshop roofs are without insulation and leak during heavy rain, no doors and filthy windows decimal point toward bad and unhealthy working conditions. This even gave a loss of $AUS 500,000 when water leakage blew a computerized robot. No parking area provided for the employees, who reach frustrated to the office,which in turn shows in their slow performance. deficiency of organize work, irregularity in work and no proper accounts and records maintained by the managers is another organizational issue for Aussieco.Though the record showed a stock of 4700 resistors but none could be located. A welder forgotten by the company after fitting of new automat is idle and has no contribution in the company. Reasons why these problems occur. star of the major reason for the organizational issues of aussieco is the employee attitude. telephone line satisfaction focuses on employee attitude and organizational commitment focuses on their attitude towards the organization. Job satisfaction is determined by how well the expectations of employees are met in return of their outturn (Luthans,2011).The aspects of job satisfication are not met by Aussieco. Employees of Aussieco are unsatisfied with the kind of work they get, the job provides less opportunities for learning and les s responsibility. There is lack of remuneration and pay, less promotional opportunities, bad working conditions. This high level of job dissatisfaction of employees reflects in their low performance, companys low profits, high employee turnover, high absenteeism and low level of commitment towards the company.The attitude of employees in an organization is largely influenced by the kind of environment the organization posses and further the attitude of employees affects their efficiency and performance at the organizational level. The environment of aussieco is not employee friendly gum olibanum employees have a negative attitude. Employee traits can be best explained by the Five factor model. Job performance is highly dependent on an individuals conscientiousness (i. e dutifulness, persistence, industriousness) and emotional stability (i. anxiety, security, suspiciousness).In Aussieco employees had low conscientiousness and low emotional stability which affected their overall task performance and contextual performance. Organizational commitment is an important attitude toward the employers and the company. It is the extent to which we identify with them. Most of the employees, posses continuance organizational commitment, which is a calculative approach, where they chose to continue working in the company because they have to rather than their want or obligation.This attitude is influenced by perceived costs of leaving the company, lack of opportunities, age, peer pressure, society expectations etc. Employees of Aussieco create this attitude because of the mechanistic treatment they receive and lack of empathy from management. Autocracy is the concentration of power and authority in hands of one person. The management of Aussieco has an autocratic structure with the owner having unlimited power and absolute authority. There is a strict hierarchical structure orders are sent from top level to bottom level.Ideas, personal opinions and suggestions are unwelco med. In this management style managers believe workers must be controlled to ensure maximum productivity (Luthans,2011). Aussiecos structure can be best explained by Douglas McGregors theory X. This theory represents an presumption of conflicting and negative working attitudes. The managers assume an average person dislikes work and will avoid it if possible, thus must be forced with threat of punishment to achieve organizational goals. An average person prefers to be directed and avoids responsibility.This approach encourages deadline and ultimatums, arrogant and demanding managers, mechanistic approach, no concern toward staff and one way intercourse (Jeremiah,2009). In Aussieco this approach resulted in a negative attitude by the employees, made them insecure and unhappy. Lack of Taylors scientific management. Frederik winslow taylors key idea was to improve industrial efficiency scientifically. He support scientifically selecting and training workers and regularly monitoring their work to improve efficiency which also improves work man happiness and positivity (Lynch,1984).Aussieco lacked scientific selection, training and development of workmen and passively left them to train themselves. Managers did not cope and provide instructions to the employees and there was no division of work between managers and workers. There was lack of specialization, convertible and systematic approach. The company continuously changed its suppliers for cheapest material available, a supplier providing 99. 5% quality level charging $20 per unit was replaced with a supplier charging $12per unit. The quality of the product suffered, increasing customer complaints and affecting the goodwill of the company negatively.There is lack of communication between departments, department managers and workers and senior management and managers. The senior management is unapproachable and not interested in the issues of the company and workers. Though Taylorism has faced criticism of exploitation, mechanistic approach etc but in relation to Aussieco, the company needs to adapt certain principles of Taylorism for a better organizational working. To conclude Ausseicos major issue is organizational and management structure. The company should have a more human-centered and realistic approach with a right balance of authority and responsibility.