The objective of this report is to describe the organizational changes in the context of strategy, structure and design as a result of the changes. The report also consists of recommendations on approaches to achieve organizational effectiveness for the organization identified.
With reference to a hypothetical organization example, the company which has been identified is ZingFresh Holdings Pte Ltd. As the subject organization of this report. The efficiency and effectiveness of their corporate structure will be the topic of discussion of the case study on how the organization uses its resources, controls coordination and motivation in order to achieve the organization's goals.
Introduction of the Organization:
ZingFresh Holdings Pte Ltd. is a producer of a variety of value brand and store brand foods like ready to eat meals, sauces and frozen pre-baked products. They are well-known for their 'ezymeal' 'ezyBBQ' and 'chef's choice' brand of healthy and tasty lasagne, chapatti bread and tomato sauce among many other products.
Established in 1990, they have emerged as the leading producer and supplier of fuss free, ready to cook food products all across Singapore, supplying to retail giants like NTUC, Cold Storage, Giant Hyper mart and 7-eleven stores. It currently operates from a central production factory at Pandan Industrial Park with staff strength of 60 personals.
The CEO of the organization, John Lee is also the founder of the company. The CEO and the director of Operations are Army buddies and they started the company from scratch. The annual turnover for ZingFresh for year 2010 was 3.7 million and the organization has ambitions to increase their annual turnover to 6 million by local marketing as well as franchising their brand and to get the company listed in 2012.
Being very process oriented, ZingFresh prides them in being the first local company to achieve the Hazard Analysis Critical Control Point (HACCP) for food safety, 5S and Six Sigma standardization in the local food industry.
Current Organizational Chart of the Company:
Current Management Style of the Organization:
The organization under study is currently practicing the scientific management style in order to manage the operations of the organization. The scientific management also referred to as the mechanistic mind set or mechanistic view of the organization was first defined by the Fredrick Winslow Taylor (Gronroos, 1994).
In scientific management the tasks and duties are defined clearly and are highly standardized. The employees have to perform the tasks assigned to them according to the pre-defined standards. The company has certain Standard of Procedures (SOP) which should be implemented and followed by each and every employee (Harris, 1997). This is believed to be mechanistic view of organization because the employees and workers are considered to be just like a part of machines which are there for some specific tasks and purpose which have to be performed by them (Martin, 2006). Under this view of organization and management the managers or CEO view their organization as an efficient machine and employees and every other thing are just the parts of it which can be replaced if needed. In this style of management the most dominant design aspects are the predictability and control. The organization has a proper hierarchical structure with clearly defined lines of authority.
The same is the case in the organization selected i.e. Zingfresh. As the CEO and the director of operations both are from Army they follow the organizational structure and management strategies which are inspired from the Army. The decisions are made by the top management which are imposed and are made obligatory for the each and every employee and worker. The employees are not included in the decision making process and no authority is delegated to the employees. The management of the Zingfresh is bureaucratic in nature. There is a formal authoritative structure with proper rules and orders. Apart from this the company is also fair and efficient.
Apart from this there is a centralized management and the work efforts are centrally coordinated. There are proper standards defined for each and every job and task. The information flow is limited and is only restricted to the top management. The employees have to perform same tasks again and again by the same method. There are several rules and procedures. The company has narrow span of control and each and every employee and worker is provided with a specialized task and they are required to perform only assigned task according to the pre-defined method and standards. Apart from this the organization is not into the practice of forming and constituting teams and tasks forces and employees and workers have to perform their assigned task individually. This results in the formal and impersonal coordination among the employees. Each and every employee is concerned about his own work and has formal relations and coordination with other in the organization.
Issues and Problems Faced by the Organization:
The management of Zingfresh Holdings Pte Ltd. is facing several issues and problems in managing the overall operations and effectiveness of the organization. The is lack of coordination among different employees and departments for this reason the marketing department is able to bring new sales and business for the company but the production department is not able to cope up with the production requirements. The flow of information is slow between different departments.
Apart from this the management of the organization is also facing problems and issues on account of retaining employees and workers. The organization is facing a high turnover rate mostly in the production department. This is also one of the reasons why production department is not being able to cope up with the sales and demand requirements.
Overall the organization is very much efficient in the defining and designing the processes and standard operating procedures but is not being able to deliver the outstanding results and is not effective in term of providing expected results and outcomes.
Reasons and Causes behind the Issues and Problems Faced by the Organization:
The main reason behind the high turnover rate is that the motivation level of employees is low and employees are least motivated to work effectively. The employees are being de-motivated because of the mechanistic and bureaucratic style of management of the organization. The employees are not involved in the decision making process so they are not able to relate to the process and are not willing to put effort and work effectively. Apart from this the employees are asked to perform same routine task according to the same method and procedure as defined by the company every day. This results in lack of attraction, involvement in the work, and motivation among employees.
The employees are not even empowered to take small routine decisions related to the day-to-day operations which further contribute in reducing their motivation level.
Recommendations to Overcome the Issues and Problems Faced by the Organization:
In order to ensure that the organization is not only efficient with the processes but is also effective the top management of the organization has to come up with some important structural changes in the company. First of all the employees should be treated as an active part of the organization and should be involved in the decisions to some extent so that they are motivated and can relate to the overall process of the job. The employees should be empowered with certain level of authority. In this regard it is important to consider the concept of delegation of authority. The delegation of authority or work is the process of entrusting and handing over the work to others (Colombo & Delmastro, 2004). There are three steps in the process of delegation which should be considered and properly implemented:
1. Assign responsibility: in this step the task and the activity is explained to the employees along with explaining and defining the expectations.
2. Grant authority: in this step the employees are allowed to take necessary decisions and act as required and needed to fulfill and accomplish the task and activity.
3. Create accountability: in this step the employees who are assigned with certain responsibility and is given authority is made accountable for the results and outcomes. The employees are required to complete the activity or task effectively and efficiently and have to report back to the senior managers.
By carefully and effectively using the method of delegation of authority the company can increase the level of motivation of employees by making them accountable for the final results and outcomes (Martin, 2006).
Apart from this another method which could be used in order to increase the motivation level of employees is of job design theory. Under job design theory the jobs are made more attractive by mixing different skills, task identity, and significance (Rousseau, 1977). In this case, the employees are losing motivation because of the same jobs and tasks which they have to perform according the standards defined by the top management every day. If the employees are provided with the tasks and jobs which require different skills and abilities…